Related parties

3 Months Ended

Mar. 31, 2020

a. Helmerich & Payne, Inc.

The Chairman of the Company's board of directors is on the board of directors of Helmerich & Payne, Inc. ("H&P"). The Company has drilling rig contracts with H&P that are operating leases. During each of the three months ended March 31, 2020 and 2019, the Company has one drilling rig contract that is accounted for as a long-term operating lease under the scope of ASC 842 due to its initial term of greater than 12 months, which is capitalized and included in "Operating lease right-of-use-assets" on the unaudited consolidated balance sheets. The present value of the future commitment is included in current and noncurrent operating lease liabilities on the unaudited consolidated balance sheets. Capital expenditures for oil and natural gas properties are capitalized and are included in "Evaluated oil and natural gas properties" on the unaudited consolidated balance sheets. See Note 5 for additional discussion of the Company's significant accounting policies on leases. See Note 12.b for additional discussion of the Company's drilling rig contracts.

The following table presents the capital expenditures for oil and natural gas properties paid to H&P included in the unaudited consolidated statements of cash flows for the periods presented:



	Three months ended March 31,
(in thousands)	2020		2019
Capital expenditures for oil and natural gas properties	$	9,151	$	2,982

b. Halliburton

Beginning in 2020, a member of the Company's board of directors is on the board of directors of Halliburton Company ("Halliburton"). Halliburton provides fracing services to the Company.

The following table presents the capital expenditures for oil and natural gas properties paid to Halliburton included in the unaudited consolidated statement of cash flows for the period presented:



	Three months ended
(in thousands)	March 31, 2020
Capital expenditures for oil and natural gas properties	$	27,225