Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies

Commitments and Contingencies

Note 11 — Commitments and Contingencies

Legal Proceedings

From time to time the Company may be subject to various claims and legal actions that arise in the ordinary course of business. As of June 30, 2019, management is not aware of any claims or legal actions that, separately or in the aggregate, are likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows, although the Company cannot guarantee that a material adverse effect will not occur.

Enterprise Resource Planning system

During the first and second quarters of 2019, we entered into agreements with a third-party to design and implement the first phase of a new enterprise resource planning system.  In connection with these agreements, we are committed to spend approximately $2.7 million, all of which is expected to be incurred in 2019.

Engineering, Procurement and Construction Contract

During the second quarter of 2019, we issued a limited notice to proceed (“LNTP”) to Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) under our engineering, procurement and construction contract with Bechtel.  In connection with the issuance of the LNTP, we are committed to spend approximately $30.3 million in 2019, of which $15.0 million may be settled in Company common stock.