XML 21 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
Transactions with Affiliates
 9 Months Ended
Sep. 30, 2016
Transactions with Affiliates [Abstract]  
Transactions with Affiliates
Note 4 - Transactions with Affiliates

The late Mr. K. S. Adams, Jr., former Chairman of the Board of the Company, and certain of his family partnerships and affiliates have participated as working interest owners with the Company’s subsidiary, Adams Resources Exploration Corporation (‟AREC”)  Mr. Adams and the affiliates participated on terms similar to those afforded other non-affiliated working interest owners.  While the affiliates have generally maintained their existing property interest, they have not participated in any such transactions originating after the death of Mr. Adams in October 2013.  In connection with the operation of certain oil and gas properties, the Company also charges such related parties for administrative overhead primarily as prescribed by the Council of Petroleum Accountants Society Bulletin 5. The Company also enters into certain transactions in the normal course of business with other affiliated entities including direct cost reimbursement for shared phone and administrative services.  In addition, the Company leases office space from an affiliated entity based on a lease rental rate determined by an independent appraisal.

The Company utilizes its affiliate, Bencap, to administer certain of its employee medical benefit programs including a detail audit of individual medical claims.  See Note (1) to the accompanying financials under the caption “Investments” for further discussion.  Bencap earns a fee from the Company for providing such services at a discounted amount from its standard charge to non-affiliates.

The Company’s former Chief Financial Officer, upon retiring from the Company in September 2016, elected to invest in Bencap LLC acquiring a six percent member interest in Bencap in exchange for a $440,000 cash contribution.

Activities with affiliates were as follows (in thousands):

  
Nine Months Ended
  
Three Months Ended
 
  
September 30,
  
September 30,
 
  
2016
  
2015
  
2016
  
2015
 
Overhead recoveries
 
$
31
  
$
74
  
$
2
  
$
24
 
                 
Affiliate billings to company
 
$
51
  
$
57
  
$
13
  
$
10
 
                 
Company billings to affiliates
 
$
4
  
$
29
  
$
1
  
$
7
 
                 
Rentals paid to affiliate
 
$
473
  
$
427
  
$
155
  
$
143
 
                 
Fees paid to Bencap
 
$
439
  
$
-
  
$
309
  
$
-