Related Parties

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Related Parties

Note 14: Related Parties

The Company has transactions with related parties as summarized below.

Rentals and Sales — The Company rents and sells equipment and provides services to R&M Equipment Rental, a business partially owned by members of the Company’s management. The Company also rents equipment and purchases inventory from R&M Equipment Rental.

Prior to August 1, 2022, Energy Capital Partners (“ECP”), a stockholder of the Company, and its affiliates had ownership interests in PLH Group, Inc., which was a customer of the Company.

Facilities Leases and Other — The Company has leased certain facilities, as well as purchased aircraft charter services, from entities owned by members of the Company’s management and their immediate families. Lease and charter services payments related to these transactions are immaterial. Rent and air travel expenses are recorded in selling, general, and administrative expenses. In December 2022, the Company terminated the lease agreements and purchased the facilities and land from these related parties for a purchase price of approximately $15.4 million.

Management Fees — The Company entered into the Corporate Advisory Services Agreement with Platinum effective in April 2021, under which management fees are payable to Platinum quarterly. The management fees are recorded in transaction expenses and other in the Company’s Consolidated Statements of Income and Comprehensive Income.

A summary of the transactions with the foregoing related parties included in the Condensed Consolidated Statements of Income and Comprehensive Income is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in $000s)	2023		2022		2023		2022
Total revenues from transactions with related parties	$	10,048	$	10,892	$	18,503	$	18,743
Expenses incurred from transactions with related parties included in cost of revenue	$	494	$	515	$	852	$	1,812
Expenses incurred from transactions with related parties included in operating expenses	$	1,368	$	1,606	$	2,763	$	3,237

Amounts receivable from/payable to related parties included in the Condensed Consolidated Balance Sheets are as follows:

(in $000s)	June 30, 2023		December 31, 2022
Accounts receivable from related parties	$	3,733	$	7,813
Accounts payable to related parties	$	1	$	1,475