Related Party Transactions

9 Months Ended

Sep. 30, 2019

As a result of Quantum’s significant ownership interest in the Company, the Company identified Oryx Midstream Services, LLC (together with Oryx Southern Delaware Holdings, LLC, “Oryx”) and Phoenix Lease Services, LLC (“Phoenix”) as related parties. These entities are considered related parties as Quantum owns an interest, either directly or indirectly, in each entity.

During the second quarter of 2019, Quantum sold its interest in Oryx, at which point Oryx ceased to be a related party. As a result, transactions with Oryx that occurred subsequent to the date of sale are no longer considered related party transactions and are not included in the below disclosures.

The following table summarizes fees paid to Oryx and Phoenix for the periods indicated:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Oryx via 3rd party shipper ⁽¹⁾	$	—	$	6,435	$	14,041	$	16,719
Oryx ⁽²⁾	$	32	$	140	$	548	$	440
Phoenix ⁽³⁾	$	17	$	98	$	68	$	319


(1)	Fees paid by the Company’s third-party shipper to Oryx pursuant to the crude oil transportation and gathering agreement are netted against revenue as they are included in the net price paid by the third-party shipper.


(2)	Fees paid to Oryx for the purchase and installation of metering equipment are capitalized to proved properties on the consolidated balance sheets. The Company also received $45 thousand from Oryx during the nine months ended September 30, 2019 related to pipeline easements and right of way agreements.


(3)	Fees paid to Phoenix are capitalized to proved properties on the consolidated balance sheets.

At September 30, 2019 the Company had no outstanding payables to these related parties. At December 31, 2018, the Company had outstanding payables of $2.6 million to these related parties. See Note 11, Related Party Transactions, in the 2018 Form 10-K for more information.

Jagged Peak Energy Inc. 10-Q