Quarterly report pursuant to Section 13 or 15(d)

Related-Party Transactions

v3.20.1
Related-Party Transactions
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party Transactions
Corporate Office Building
          The Company rents its corporate office building and the associated real property from an entity, in which a former executive officer of the Company has an equity interest. The rent expense incurred on our corporate office building is approximately $0.1 million per year. During the six months ended June 30, 2019, the total improvements on our corporate office building that we rent from the related party was $0.9 million. In April 2020, the Company acquired the corporate office building and associated real property for approximately $1.5 million.

Operations and Maintenance Yards
          The Company also leases five yards from an entity, which certain former executive officers, an executive officer and a director of the Company have equity interests and total annual rent expense for each of the five yards was approximately $0.03 million, $0.03 million, $0.1 million, $0.1 million, and $0.2 million, respectively. The Company also leased a yard from another entity, which a certain executive officer of the Company has an equity interest, and with annual lease expense of $0.1 million.

          Subsequent to the issuance of the consolidated financial statements for the year ended December 31, 2018 we identified the following related party transaction. In 2018, the Company entered into a construction and purchase agreement for a maintenance facility for our pressure pumping operations with a developer. The developer for the maintenance facility was an equal partner with a former executive officer of the Company in a separate legal entity. The entity the former executive officer was associated with provided funding to the developer related to the construction of the maintenance facility. The construction and purchase cost of $2.3 million was paid to the developer during the year ended December 31, 2018.
Transportation and Equipment Rental
          For the six months ended June 30, 2019 and 2018, the Company incurred costs and paid for transportation services with an entity, in which a former executive officer of the Company had an equity interest, of approximately $0.2 million and $0.1 million, respectively.

          The Company also rented equipment in Elk City, Oklahoma for our flowback operations from an entity, which a former executive officer of the Company has an equity interest. During the six months ended June 30, 2019 and 2018, the Company incurred and paid $0.1 million and $0.1 million, respectively. This rental arrangement was terminated in January 2020.

          At June 30, 2019 and December 31, 2018, the Company had $0 and $0.01 million in payables to the above related parties, respectively.

PT Petroleum, LLC
          Subsequent to the issuance of the consolidated financial statements for the year ended December 31, 2018 we identified the following related party transaction. During the six months ended June 30, 2018, the Company provided services to PT Petroleum, LLC, an entity in which a director was an officer, of approximately $16.7 million.
Pioneer
          On December 31, 2018, we consummated the purchase of certain pressure pumping assets and real property from Pioneer Natural Resources USA, Inc. ("Pioneer") and Pioneer Pressure Pumping Services, LLC (the Pioneer Pressure Pumping Acquisition). The acquisition cost of the assets was comprised of approximately $110.0 million of cash and 16.6 million shares of our common stock. In addition, we entered into a real estate lease for a crew camp facility with Pioneer, as disclosed in Note 9. The real estate lease for the crew camp was terminated in July 2019. In connection with the consummation of the transaction, we became a long-term service provider to Pioneer, providing pressure pumping and related services for a term of up to ten years. Revenue from services provided to Pioneer accounted for $127.0 million and $19.7 million of our total revenue during the three months ended June 30, 2019 and 2018, respectively. Revenue from services provided to Pioneer accounted for $287.1 million and $38.2 million of our total revenue during the six months ended June 30, 2019 and 2018, respectively. During the six months ended June 30, 2019, the Company reimbursed Pioneer approximately $1.3 million for our portion of the retention bonuses paid to former Pioneer employees that were subsequently employed by the Company in connection with the Pioneer Pressure Pumping Acquisition. As of June 30, 2019, the amount due from Pioneer including estimated unbilled receivable for services we provided during the period amounted to $85.6 million and the amount due to Pioneer was $0.01 million. As of December 31, 2018, the balance due from Pioneer for services provided and billed during the period amounted to $15.7 million and the amount due to Pioneer was $109.8 million.