Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.23.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Transactions between the subsidiaries of the Company, including Panther Drilling Systems LLC (“Panther Drilling”), Cobra Aviation, ARS and Leopard and the following companies are included in Related Party Transactions: Wexford, El Toro Resources LLC (“El Toro”), Elk City Yard LLC (“Elk City Yard”), Double Barrel Downhole Technologies LLC (“DBDHT”), Caliber Investment Group LLC (“Caliber”) and Brim Equipment.

Following is a summary of related party transactions (in thousands):
Three Months Ended September 30, Nine Months Ended September 30, At September 30, At December 31,
2023 2022 2023 2022 2023 2022
REVENUES ACCOUNTS RECEIVABLE
Cobra Aviation/ARS/Leopard and Brim Equipment (a) $ 93  $ 81  391  234  $ 101  $ 217 
Panther and El Toro (b) 159  274  450  790  159  — 
Other Relationships —  —  —  —  6  6 
$ 252  $ 355  $ 841  $ 1,024  $ 266  $ 223 
a.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements.
b.Panther provides directional drilling services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement.
Three Months Ended September 30, Nine Months Ended September 30, At September 30, At December 31,
2023 2022 2023 2022 2023 2022
COST OF REVENUE ACCOUNTS PAYABLE
Cobra Aviation/ARS/Leopard and Brim Equipment (a) $ —  $ 17  $ 7  $ 57  $ —  $ 3 
The Company and Caliber (b) 93  89  273  268  —  — 
Other Relationships 27  36  80  80  —  — 
$ 120  $ 142  $ 360  $ 405  $ —  $ 3 

a.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements.
b.Caliber, an entity controlled by Wexford, leases office space to the Company.

On December 21, 2018, Cobra Aviation acquired all outstanding equity interest in ARS and purchased two commercial helicopters, spare parts, support equipment and aircraft documents from Brim Equipment. Following these transactions, and also on December 21, 2018, Cobra Aviation formed a joint venture with Wexford Investments named Brim Acquisitions to acquire all outstanding equity interests in Brim Equipment. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $2.0 million. Wexford Investments is an entity controlled by Wexford, which owns approximately 47% of the Company’s outstanding common stock. Leopard leases a helicopter to Brim Equipment and Cobra Aviation leases the two helicopters purchased as part of these transactions to Brim Equipment under the terms of aircraft lease and management agreements. ARS was subsequently sold to a third party in July 2023. See Note 4 for further discussion.