Related Party Transactions

3 Months Ended

Mar. 31, 2019

In December 2018, the Company completed the sale of its pressure pumping assets to ProPetro in exchange for 16.6 million shares of ProPetro common stock and $110 million of short-term receivables that were collected during the three months ended March 31, 2019. ProPetro is considered a related party since the shares received represent approximately 16 percent of ProPetro's outstanding common stock. In addition to the sale of equipment and related facilities, the Company entered into a long-term agreement with ProPetro for it to provide pressure pumping and related services. The costs of these services are capitalized in oil and gas properties as incurred. See Note 3 and Note 14 for additional information.

Transactions and balances with ProPetro are as follows:



	Three Months Ended March 31, 2019
	(in millions)
Pressure pumping services	$	147



	As of March 31, 2019		As of December 31, 2018
	(in millions)
Accounts receivable - due from affiliate (a)	$	7	$	119
Accounts payable - due to affiliate (b)	$	104	$	37

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(a)	Includes employee-related charges to be reimbursed by ProPetro and $110 million of short-term receivables as of December 31, 2018 that were collected during the three months ended March 31, 2019.


(b)	Prior to the Company's sale of its pressure pumping assets to ProPetro, the Company utilized the services of ProPetro in the normal course of business. The balance as of December 31, 2018 represents invoices associated with those services that were in the process of being paid.