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Transactions With Related Parties
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Transactions with Related Parties
Note 12—Transactions with Related Parties
Customer and Supplier Relationships
Riverstone Affiliated Companies. From time to time, the Company obtains services related to its drilling and completion activities from affiliates of Riverstone. In particular, the Company has paid the following amounts to the following affiliates of Riverstone for such services: (i) approximately $27.7 million and $40.2 million during the three and six months ended June 30, 2017 (Successor), respectively, to Liberty Oilfield Services, LLC (“Liberty”); and (ii) approximately $1.3 million and $2.4 million during the three and six months ended June 30, 2017 (Successor), respectively, to Permian Tank and Manufacturing, Inc. (“Permian”). At June 30, 2017, included in Accounts payable and accrued expenses was $10.1 million and $0.4 million due to Liberty and Permian, respectively.
Other Affiliated Companies. Mark G. Papa, our President, Chief Executive Officer and Chairman of the Board, serves as a director and Chairman of the Board of Oil States International, Inc., an energy services company publicly traded on the New York Stock Exchange (“Oil States”). From time to time, the Company obtains services related to drilling and completion activities from Oil States. During the three and six months ended June 30, 2017 (Successor), the Company paid approximately $3.2 million and $3.9 million, respectively, to Oil States. At June 30, 2017, included in Accounts payable and accrued expenses was $0.9 million due to Oil States.
NGP Affiliated Companies. Beginning December 28, 2016, NGP and entities affiliated with NGP were no longer considered related parties of the Company and any expenses incurred on or after December 28, 2016 with NGP and entities affiliated with NGP are no longer classified as related party expenses. However, expenses incurred before December 28, 2016 with NGP and entities affiliated with NGP were classified as related party expenses and are detailed below.
In May 2016, the Company acquired acreage in close proximity to its operating area in Reeves County, Texas and wellbore only rights in an uncompleted horizontal wellbore for approximately $9.8 million from Caird DB, LLC, an affiliate of NGP. In addition, the Company has paid approximately $2.1 million and $3.3 million during the three and six months ended June 30, 2016 (Predecessor), respectively, to RockPile Energy Services, LLC (“Rockpile”). On July 3, 2017, Rockpile was acquired by an unrelated third party and is no longer an affiliate of NGP.
The Company is party to a 15-year natural gas gathering agreement with PennTex Permian, LLC (“PennTex”), an NGP-affiliated company, which terminates on April 1, 2029 and is subject to one-year extensions at either party’s election. Under the agreement, PennTex gathers and processes the Company’s natural gas. PennTex purchases the extracted natural gas liquids from the Company, net of gathering fees and an agreed percentage of the actual proceeds from the sale of the residue natural gas and natural gas liquids. Net payments received from PennTex for the three and six months ended June 30, 2016 (Predecessor) were$0.4 million and $0.5 million, respectively. In the third quarter of 2016, PennTex sold its assets related to this agreement to an unrelated third party.