Related-Party Transactions |
9 Months Ended |
|---|---|
Sep. 30, 2020 | |
| Related Party Transactions [Abstract] | |
| Related-Party Transactions | Related-Party Transactions Corporate Office Building
The Company rented 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. In April 2020, the Company acquired the corporate office building and the associated real property for approximately $1.5 million.
Operations and Maintenance Yards
The Company also leases five yards from an entity, in which certain former executive officers, an executive officer and a director of the Company have equity interests and the 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, in which a certain executive officer of the Company has an equity interest, and with annual lease expense of approximately $0.1 million.
Transportation, Equipment Rental and Other Services
For the nine months ended September 30, 2019, the Company incurred costs for transportation services with an entity, in which a former executive officer of the Company has an equity interest, of approximately $0.2 million. No transportation services were provided by the related party during the nine months ended September 30, 2020.
The Company also rented equipment in Elk City, Oklahoma, for our flowback operations from an entity, in which a former executive officer of the Company has an equity interest. During the nine months ended September 30, 2019, the Company incurred equipment rental costs of approximately $0.1 million. This rental arrangement was terminated in January 2020.
The Company obtains equipment maintenance services from an entity that has a family relationship with an executive officer of the Company. During the nine months ended September 30, 2020, the Company incurred approximately $1.2 million for equipment maintenance services associated with this related party.
At September 30, 2020 and December 31, 2019, the Company had approximately $0.6 million and $0, respectively, as outstanding payables in connection with transactions to all of the above related parties. There were no receivables at September 30, 2020 and December 31, 2019 from the above related party transactions.
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 Pumping Services (the "Pioneer Pressure Pumping Acquisition"). In connection with the Pioneer Pressure Pumping Acquisition, Pioneer received 16.6 million shares of our common stock and approximately $110.0 million in cash. In July 2019, we terminated our crew camp facility lease entered into with Pioneer in connection with the Pioneer Pressure Pumping Acquisition, and the total crew camp facility lease payments to Pioneer in 2019 were approximately $0.1 million.
Revenue from services provided to Pioneer (including idle fees) accounted for approximately $68.3 million and $120.7 million of our total revenue during the three months ended September 30, 2020 and 2019, respectively. Revenue from services provided to Pioneer (including idle fees) accounted for approximately $259.9 million and $407.8 million of our total revenue during the nine months ended September 30, 2020 and 2019, respectively.
In connection with the Pioneer Pressure Pumping Acquisition, the Company agreed to reimburse Pioneer for our portion of the retention bonuses paid to former Pioneer employees that were subsequently employed by the Company. During the nine months ended September 30, 2020 and 2019, the Company fully reimbursed Pioneer approximately $2.7 million and $2.9 million, respectively. During the nine months ended September 30, 2019, Pioneer fully reimbursed the Company approximately $2.5 million for severance payments made on their behalf, in connection with the Pioneer Pressure Pumping Acquisition. As of September 30, 2020, the total accounts receivable due from Pioneer, including estimated unbilled receivable for services (including idle fees) we provided, amounted to approximately $46.0 million and the amount due to Pioneer was $0. As of December 31, 2019, the balance due from Pioneer for services (including idle fees) we provided amounted to approximately $61.7 million and the amount due to Pioneer was $0.
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