|
Related Party Transactions
|
12 Months Ended |
|---|---|
|
Dec. 31, 2013
|
|
| Related Party Transactions [Abstract] | |
| Related Party Transactions |
RELATED PARTY TRANSACTIONS
In the ordinary course of business, the Company conducts business activities with certain related parties.
Diamondback operates the Permian Basin wells included in the Contribution as discussed above in Note 4. At December 31, 2012, the Company owed Diamondback approximately $0.3 million related to reimbursement for services provided prior to the contribution. Approximately $7.1 million of services provided by Diamondback are included in lease operating expenses in the consolidated statements of operations for the year ended December 31, 2012. Approximately $40.4 million related to services performed by Diamondback are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2012.
As discussed in Note 3, Gulfport is the operator of its Niobrara Formation acreage under a development agreement with Windsor Niobrara. As operator, the Company is responsible for daily operations, monthly operation billings and monthly revenue disbursements for these properties. For the years ended December 31, 2013 and 2012, the Company billed Windsor Niobrara approximately $0.9 million and $7.5 million, respectively, for these services. At December 31, 2013, Windsor Niobrara owed the Company an immaterial amount for these services. At December 31, 2012, Windsor Niobrara owed the Company approximately $0.2 million for these services.
Windsor Ohio LLC ("Windsor Ohio") participated with the Company in the acquisition of certain leasehold interests in acreage located in the Utica Shale in Ohio. As operator of this acreage, the Company is responsible for daily operations, monthly operation billings and monthly revenue disbursements for these properties. For the years ended December 31, 2013 and 2012, the Company billed Windsor Ohio approximately $73.4 million and $163.7 million, respectively, for these services. At December 31, 2013 and 2012, Windsor Ohio owed the Company approximately $1.6 million and $6.5 million, respectively, for these services. During the years ended December 31, 2013 and 2012, the Company purchased certain oil and natural gas properties in the Utica Shale from Windsor Ohio. For information regarding these transactions, see Note 2.
Rhino Exploration LLC ("Rhino") participated with the Company in the acquisition of certain leasehold interest in acreage located in the Utica Shale in Ohio. As operator of this acreage, the Company is responsible for daily operations, monthly operation billings and monthly revenue disbursements for these properties. For the year ended December 31, 2012, the Company billed Rhino approximately $4.4 million for these services. At December 31, 2012, Rhino owed the Company approximately $4.3 million for these services.
Stingray Pressure, which is 50% owned by the Company, provides well completion services as discussed above in Note 5. At December 31, 2013 and 2012, the Company owed Stingray Pressure approximately $8.3 million and $5.3 million, respectively, related to these services. Approximately $58.3 million and $4.3 million of services provided by Stingray Pressure are included in oil and natural gas properties before elimination of intercompany profits on the accompanying consolidated balance sheets at December 31, 2013 and 2012, respectively.
Stingray Cementing, which is 50% owned by the Company, provides well cementing services as discussed above in Note 5. At December 31, 2013, the Company owed Stingray Cementing approximately $1.5 million related to these services. No amounts were owed to Stingray Cementing at December 31, 2012. Approximately $4.0 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, 2013.
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 5. At December 31, 2013, the Company owed Stingray Energy approximately $4.1 million related to these services. Approximately $5.1 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, 2013.
Athena Construction LLC (“Athena”) performs services for the Company at its WCBB and Hackberry fields. At December 31, 2013 and 2012, the Company owed Athena approximately $1.0 million and $1.5 million, respectively, related to these services. Approximately $0.6 million and $0.4 million of services provided by Athena are included in lease operating expenses in the consolidated statements of operations for the year ended December 31, 2013 and 2012, respectively. Approximately $4.1 million and $5.0 million related to services performed by Athena are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2013 and 2012, respectively.
Black Fin P&A, LLC (“Black Fin”) performs plugging and abandonment services for the Company at its WCBB field. No amounts were owed to Black Fin at December 31, 2013 and 2012. An immaterial amount of services performed by Black Fin are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2013. Approximately $0.7 million of services performed by Black Fin are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2012.
Panther Drilling Systems, LLC ("Panther") performs directional drilling services for the Company. At December 31, 2013 and 2012, the Company owed Panther approximately $1.8 million and an immaterial amount, respectively, related to these services. Approximately $12.6 million and an immaterial amount of services provided by Panther are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2013 and 2012, respectively.
Redback Directional Services, LLC ("Redback") provides coil tubing and flow back services for the Company. No amounts were owed to Redback at December 31, 2013. At 2012 the Company owed Redback $1.1 million related to these services. Approximately $0.1 million and $1.8 million related to services performed by Redback are included in oil and natural gas properties on the accompanying consolidated balance sheets at December 31, 2013 and 2012, respectively.
Caliber Development Company, LLC ("Caliber") provides building maintenance services for the Company's headquarters in Oklahoma City, Oklahoma. Caliber also leases office space to the Company. At December 31, 2013 and 2012, the Company owed Caliber an immaterial amount related to these services. Approximately $0.2 million and $0.1 million of services performed by Caliber and rent paid to Caliber are included in general and administrative expenses on the accompanying consolidated statements of operations for the year ended December 31, 2013 and 2012, respectively.
Each of Diamondback, Windsor Niobrara, Windsor Ohio, Rhino, Stingray Pressure, Stingray Cementing, Stingray Energy, Stingray Logistics, Athena, Black Fin, Panther, Redback and Caliber is affiliated with or controlled by Wexford. Prior to September 21, 2012, Wexford and/or its affiliates beneficially owned more than 10% of the Company's common stock and was deemed to be a related party. On or about September 28, 2012, Wexford’s and/or its affiliates’ ownership of Gulfport’s common stock dropped to below 1% and, as a result, was no longer deemed to be a related party. Subsequent to September 28, 2012, the Company continued to treat Windsor Niobrara, Windsor Ohio, Athena, Black Fin, Panther, Redback and Caliber as related parties because Mr. Mike Liddell, the Company's former Chairman of the Board and a named executive officer during 2013, is the operating member of each such entity and also holds a 10% participation interest in Windsor Ohio and a 10% contingent participation interest in Windsor Niobrara, Athena, Black Fin, Panther, Redback and Caliber. During December 2012, Mr. Liddell had transferred his participation in Windsor Ohio to an entity he controlled. For the year ended December 31, 2012, the Company billed this entity directly in respect of his 10% interest in the amount of approximately $2.0 million. For the year ended December 31, 2012, the Company paid this entity approximately $0.1 million in respect of its interest in Windsor Ohio.
|