Related Party Transactions |
12 Months Ended |
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Dec. 31, 2017 | |
| 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 Cementing provides well cementing services. Stingray Cementing was previously 50% owned by the Company until its contribution to Mammoth Energy in June 2017 as discussed above in Note 4. At the date of the contribution, the Company owed Stingray Cementing approximately $0.5 million. As of December 31, 2016, the Company owed Stingray Cementing approximately $0.5 million related to these services.
Stingray Energy 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. Stingray Energy was previously 50% owned by the Company until its contribution to Mammoth Energy in June 2017 as discussed above in Note 4. At the date of the contribution, the Company owed Stingray Energy approximately $1.6 million. As of December 31, 2016, the Company owed Stingray Energy approximately $3.6 million related to these services.
As of December 31, 2017, the Company held approximately 25.1% of Mammoth Energy's outstanding common stock as discussed above in Note 4. Approximately $2.1 million of services provided by Mammoth Energy are included in lease operating expenses in the consolidated statements of operations for the year ended December 31, 2017. Approximately $196.5 million and $110.5 million of services provided by Mammoth Energy are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2017 and 2016, respectively. At December 31, 2017 and 2016, the Company owed Mammoth Energy approximately $32.0 million and $23.5 million, respectively, related to these services.
Strike Force, which is 25% owned by the Company, develops natural gas gathering assets in dedicated areas as discussed above in Note 4. At December 31, 2017 and 2016 the Company owed approximately $8.4 million and $1.6 million, respectively, to Strike Force for these related services. Approximately $23.1 million and $1.8 million of services provided by Strike Force are included in midstream gathering and processing on the accompanying consolidated statement of operations for the years ended December 31, 2017 and 2016, respectively.
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