Related Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions

Related Party Transactions

12.  Related Party Transactions

On November 22, 2016, Solaris LLC entered into an administrative services arrangement ("Services Agreement") with Solaris Energy Management LLC (“SEM”), a company partially-owned by William A. Zartler, the Chairman of Solaris' Board, for the provision of certain personnel and administrative services at cost. The services provided by SEM, include, but are not limited to, executive management functions, accounting and bookkeeping and treasury. In addition, SEM provides office space, equipment and supplies to the Company under the administrative service agreement. Contemporaneously with or prior to the completion of the IPO, certain employees of SEM became Solaris employees. Solaris may continue to utilize office space under the administrative service agreement or receive certain other administrative services from SEM. For the three months ended March 31, 2017, Solaris LLC paid $444 for these services of which $271 was included in salaries, benefits and payroll taxes, and $48 was included in selling, general and administrative expenses in the Consolidated Statement of Operations, and $125 was prepaid for such expenses. As of March 31, 2017, the Company reported a $39 balance of prepaid amounts under prepaid expenses and other current assets in the Consolidated Balance Sheets. There were no amounts paid or costs incurred during the three months ended March 31, 2016.

On May 17, 2017, in connection with the Offering, Solaris entered into an amendment to the Services Agreement (as amended, the “Amended Services Agreement”) with SEM and Solaris LLC. The Amended Services Agreement generally provides for the provision of the services described in the Services Agreement from SEM to Solaris and Solaris LLC.

The Company’s employees provided consulting and advisory services to Solaris Water Operations, LLC (“Solaris Water”), a company owned by William A. Zartler, the Chairman of Solaris' Board. The Company received $96 from Solaris Water for the provision of services provided during the three months ending March 31, 2016. The Company no longer provides services to Solaris Water. As of March 31, 2017, no amounts were due from Solaris Water.

For the three months ended March 31, 2017 and 2016, the Company incurred $38 and $8, respectively, of expenses related to travel services provided by Anejo Air Services, LLC (“Anejo”), an entity affiliated with Solaris Energy Capital, LLC (“Solaris Energy Capital”), a member of Solaris LLC”). These expenses were included in selling, general and administrative expenses in the Consolidated Statement of Operations. As of March 31, 2017, no amounts were due to Anejo from the Company.

The Company incurred $3of administrative expenses that were paid on behalf of the Company by Solaris Energy Capital for the three months ended March 31, 2017. The Company incurred $2 of administrative expenses that were paid on behalf of the Company by Solaris Energy Capital, net of amounts that were paid by the Company on behalf of Solaris Energy Capital for the three months ended March 31, 2016. As of March 31, 2017, Solaris Energy Capital was due $1 from the Company, and was recorded in prepaid expenses and other current assets in the Consolidated Balance Sheets.

All related party transactions are immaterial and have not been shown separately on the face of the consolidated financial statements.