Quarterly report pursuant to Section 13 or 15(d)

EQUITY INVESTMENTS

v3.20.1
EQUITY INVESTMENTS
3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY INVESTMENTS
EQUITY INVESTMENTS
Investments accounted for by the equity method consist of the following as of March 31, 2020 and December 31, 2019:
 
 
 
Carrying value
 
(Loss) income from equity method investments
 
Approximate ownership %
 
March 31, 2020
 
December 31, 2019
 
Three months ended March 31,
 
 
 
 
2020
 
2019
 
 
 
(In thousands)
Investment in Grizzly Oil Sands ULC
24.9
%
 
$
6,186

 
$
21,000

 
$
(143
)
 
$
(393
)
Investment in Mammoth Energy Services, Inc.
21.5
%
 

 
11,005

 
(10,646
)
 
4,526

Investment in Windsor Midstream LLC
22.5
%
 
39

 
39

 

 

Investment in Tatex Thailand II, LLC
23.5
%
 

 

 

 
140

 
 
 
$
6,225


$
32,044


$
(10,789
)
 
$
4,273


The tables below summarize financial information for the Company’s equity investments as of March 31, 2020 and December 31, 2019.
Summarized balance sheet information:
 
March 31, 2020
 
December 31, 2019
 
 
 
(In thousands)
Current assets
$
440,801

 
$
421,326

Noncurrent assets
$
1,104,297

 
$
1,260,075

Current liabilities
$
131,175

 
$
132,569

Noncurrent liabilities
$
171,132

 
$
163,241


Summarized results of operations:    
 
Three months ended March 31,
 
2020
 
2019
 
(In thousands)
Gross revenue
$
97,383

 
$
264,844

Net (loss) income
$
(85,031
)
 
$
24,756


Grizzly Oil Sands ULC
The Company, through its wholly owned subsidiary Grizzly Holdings Inc. (“Grizzly Holdings”), owns an approximate 24.9% interest in Grizzly Oil Sands ULC (“Grizzly”), a Canadian unlimited liability company. The remaining interest in Grizzly is owned by Grizzly Oil Sands Inc. As of March 31, 2020, Grizzly had approximately 830,000 acres under lease in the Athabasca, Peace River and Cold Lake oil sands regions of Alberta, Canada. The Company reviewed its investment in Grizzly for impairment at March 31, 2020 and 2019 and determined no impairment was required. The Company paid $0.4 million in cash calls during the three months ended March 31, 2019 prior to its election to cease funding further capital calls. Grizzly’s functional currency is the Canadian dollar. The Company’s investment in Grizzly was decreased by a $14.7 million foreign currency translation loss and increased by a $3.7 million foreign currency translation gain for the three months ended March 31, 2020 and 2019, respectively.
Mammoth Energy Services, Inc.
At March 31, 2020, the Company owned 9,829,548 shares, or approximately 21.5%, of the outstanding common stock of Mammoth Energy Services, Inc. ("Mammoth Energy"). The Company’s investment in Mammoth Energy was decreased by a $0.4 million foreign currency loss and increased by a $0.1 million foreign currency gain resulting from Mammoth Energy's foreign subsidiary for the three months ended March 31, 2020 and 2019, respectively. The Company received no distributions from Mammoth Energy during the three months ended March 31, 2020 and distributions of $1.2 million during the three months ended March 31, 2019 as a result of $0.125 per share dividends in February 2019. The approximate fair value of the Company's investment in Mammoth Energy at March 31, 2020 was $7.4 million based on the quoted market price of Mammoth Energy's common stock. The Company's share of net loss of Mammoth for three months ended March 31, 2020 was in excess of the carrying value of its investment. As such, the Company's investment value was reduced to zero at March 31, 2020. The loss (income) from equity method investments presented in the table above reflects any intercompany profit eliminations.
Windsor Midstream LLC
At March 31, 2020, the Company held a 22.5% interest in Windsor Midstream LLC (“Midstream”), an entity controlled and managed by an unrelated third party. The Company received no distributions from Midstream during the three months ended March 31, 2020.
Tatex Thailand II, LLC
The Company has an indirect ownership interest in Tatex Thailand II, LLC ("Tatex") and received no distributions and $0.1 million in distributions from Tatex during the three months ended March 31, 2020 and 2019, respectively. Tatex previously held an 8.5% interest in APICO, LLC (“APICO”), an international oil and gas exploration company, before selling its interest in June 2019. APICO has a reserve base located in Southeast Asia through its ownership of concessions covering approximately 108,000 acres which includes the Phu Horm Field.