Related Party Transactions

6 Months Ended

Jun. 30, 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 cash that was received during the first quarter of 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 for additional information.

Transactions and balances with ProPetro are as follows:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(in millions)
Pressure pumping and related services expense	$	120	$	267



	As of June 30, 2019		As of December 31, 2018
	(in millions)
Accounts receivable - due from affiliate (a)	$	6	$	119
Accounts payable - due to affiliate (b)	$	98	$	37

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(a)	Represents employee-related charges to be reimbursed by ProPetro. The balance as of December 31, 2018 also includes $110 million of cash consideration that was received during the first quarter of 2019.

(b)

Represents pressure pumping and related services provided by ProPetro as part of a long-term agreement. The balance as of December 31, 2018 represents invoices associated with pressure pumping and related services performed by ProPetro in the normal course of business prior to the Company's sale of is pressure pumping assets to ProPetro.