Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

In the ordinary course of business, the Company has conducted business activities with certain related parties.

Stingray Cementing, which is 50% owned by the Company, provides well cementing services as discussed above in Note 4. At December 31, 2016 and 2015, the Company owed Stingray Cementing approximately $0.5 million and $2.1 million, respectively, related to these services. Approximately $6.3 million and $7.0 million of services provided by Stingray Cementing are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2016 and 2015, respectively.

Stingray Energy, which is 50% owned by the Company, provides rental tools for land-based oil and natural gas drilling, completion and workover activities as well as the transfer of fresh water to wellsites as discussed above in Note 4. At December 31, 2016 and 2015, the Company owed Stingray Energy approximately $3.6 million and $2.2 million, respectively, related to these services. Approximately $1.1 million and $2.2 million of services provided by Stingray Energy are included in lease operating expenses in the consolidated statements of operations for the years ended December 31, 2016 and 2015, respectively. Approximately $11.0 million and $16.0 million of services provided by Stingray Energy are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2016 and 2015, respectively.

After completing the contributions to Mammoth and Mammoth Energy and Mammoth Energy's IPO, all as discussed above in Note 4, the Company owned an approximate 24.2% equity investment in Mammoth Energy. Approximately $110.5 million and $141.2 million of services provided by Mammoth Energy are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, the Company owed Mammoth Energy approximately $23.5 million and $24.7 million, respectively, related to these services.

Strike Force, which is 25% owned by the Company, develops natural gas gathering assets in dedicated areas as discussed above in Note 4. At December 31, 2016 the Company owed approximately $1.6 million to Strike Force for these related services. Approximately $1.8 million of services provided by Strike Force are included in midstream gathering and processing on the accompanying consolidated statement of operations for the year ended December 31, 2016.