Related Party Transactions |
12 Months Ended |
|---|---|
Dec. 31, 2015 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS |
RELATED PARTY TRANSACTIONS
In the ordinary course of business, the Company has conducted business activities with certain related parties.
Stingray Pressure provides well completion services. Stingray Pressure was previously 50% owned by the Company until its contribution to Mammoth in November 2014 as discussed above in Note 4. As of the contribution date, the Company acquired a 30.5% limited partner interest in Mammoth. No amounts were owed to Stingray Pressure at the date of the contribution. Approximately $78.3 million of services provided by Stingray Pressure are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2014.
Stingray Cementing, which is 50% owned by the Company, provides well cementing services as discussed above in Note 4. At December 31, 2015 and 2014, the Company owed Stingray Cementing approximately $2.1 million and $0.8 million, respectively, related to these services. Approximately $7.0 million and $6.0 million of services provided by Stingray Cementing are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2015 and 2014, respectively.
Stingray Energy, which is 50% owned by the Company, provides rental tools for land-based oil and natural gas drilling, completion and workover activities as well as the transfer of fresh water to wellsites as discussed above in Note 4. At December 31, 2015 and 2014, the Company owed Stingray Energy approximately $2.2 million and $6.0 million, respectively, related to these services. Approximately $2.2 million and $1.3 million of services provided by Stingray Energy are included in lease operating expenses in the consolidated statements of operations for the year ended December 31, 2015 and 2014, respectively. Approximately $16.0 million and $24.8 million of services provided by Stingray Energy are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2015 and 2014, respectively.
Panther Drilling Systems, LLC ("Panther") performs directional drilling services for the Company. In November 2014, Panther became a wholly-owned subsidiary of Mammoth. The Company owns a 30.5% limited partner interest in Mammoth as discussed above in Note 4. Approximately $7.6 million of services provided by Panther are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2014.
Muskie processes and sells sand for use in hydraulic fracturing by the oil and natural gas industry and holds certain rights in a lease covering land in Wisconsin for mining and oil and natural gas fracture grade sand. Muskie was previously owned 25% by the Company until its contribution to Mammoth in November 2014, as discussed above in Note 4. As of the contribution date, the Company acquired a 30.5% limited partner interest in Mammoth. No amounts were owed to Muskie as of the date of the contribution. No services provided by Muskie are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2014.
Redback Directional Services, LLC ("Redback") provides coil tubing and flow back services for the Company. In November 2014, Redback became a wholly-owned subsidiary of Mammoth. The Company owns a 30.5% limited partner interest in Mammoth as discussed above in Note 4. Approximately $1.0 million related to services performed by Redback are included in oil and natural gas properties on the accompanying consolidated balance sheets at 2014.
In November 2014, the Company contributed its investment in Muskie, Stingray Pressure, Stingray Logistics and Bison to Mammoth in exchange for a 30.5% limited partner interest in Mammoth. Approximately $141.2 million and $11.1 million of services provided by Mammoth are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, the Company owed Mammoth approximately $24.7 million and $28.4 million, respectively, related to these services.
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