Related Party Transactions

12 Months Ended

Dec. 31, 2020

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 as the shares received represent 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, under which it provides 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.

In October 2019, Phillip A. Gobe, a nonemployee member of the Company's board of directors, was appointed by the board of directors of ProPetro to serve as its Executive Chairman, and in March 2020 he was appointed as Chief Executive Officer and Chairman of the Board of Directors. Mark S. Berg, the Company's Executive Vice President, Corporate Operations, serves as a member of the ProPetro board of directors under the Company's right acquired upon the sale of its pressure pumping assets to designate a director to the board of directors of ProPetro so long as the Company owns five percent or more of ProPetro's outstanding common stock.

Based on the Company's ownership in ProPetro and representation on the ProPetro board of directors, ProPetro is considered an affiliate and deemed to be a related party.

Transactions and balances with ProPetro are as follows:


	Year Ended December 31,
	2020		2019
	(in millions)
Pressure pumping related services charges (a)	$	238	$	461

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(a)Includes $41 million and $16 million of idle frac fleet fees for the years ended December 31, 2020 and December 31, 2019, respectively. See Note 16 for additional information.


	As of December 31,
	2020		2019
	(in millions)
Accounts receivable - due from affiliate (a)	$	—	$	3
Accounts payable - due to affiliate (b)	$	45	$	88

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(a)Represents employee-related charges that were reimbursed by ProPetro.

(b)Represents pressure pumping and related services provided by ProPetro as part of a long-term agreement.