Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions |
The Forbes Group enters into transactions with related parties in the normal course of conducting business. Accounts receivable-related parties and Accounts payable-related parties result from transactions with related parties which the Forbes Group believes are on terms consistent with those available to third party customers and from third party vendors. The following tables represent related party transactions. |
|
| | | | | | | | | | | | | | | | |
| | | | | | As of |
| | | | | | September 30, | | December 31, 2012 |
2013 |
| | | | | | (in thousands) |
Related parties cash and cash equivalents balances: | | | | | | | | |
Balance at Texas Champion Bank (1) | | | | | | $ | 807 | | | $ | 983 | |
|
Balance at Brush Country Bank (2) | | | | | | 557 | | | 209 | |
|
| | | | | | | | | | |
|
Related parties receivable: | | |
Dorsal Services, Inc. (3) | | | | | | $ | 60 | | | $ | 60 | |
|
| | | | | | | | |
Related parties payable: | | | | | | | | |
|
Alice Environmental Services, LP/Alice Environmental Holding LLC (4) | | | | | | $ | — | | | $ | 10 | |
|
Dorsal Services, Inc. (3) | | | | | | 23 | | | — | |
|
Tasco Tool Services, Inc. (5) | | | | | | 23 | | | — | |
|
Resonant Technology Partners (6) | | | | | | 34 | | | 19 | |
|
Wolverine Construction, Inc. (7) | | | | | | 28 | | | 39 | |
|
Texas Quality Gate Guard Services, LLC (8) | | | | | | 17 | | | — | |
|
Animas Holdings, LLC (9) | | | | | | 24 | | | — | |
|
Testco Well Services, LLC (10) | | | | | | 2 | | | |
|
| | | | | | $ | 151 | | | $ | 68 | |
|
| | | | | | | | |
|
| | | | | | | | | | | | | | | | |
| | Three months ended September 30, | | Nine months ended September 30, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| | (in thousands) |
Related parties capital expenditures: | | | | | | | | |
Alice Environmental Services, LP/Alice Environmental Holding LLC (4) | | $ | — | | | $ | — | | | $ | — | | | $ | 15,567 | |
|
Tasco Tool Services, Inc. (5) | | 64 | | | 155 | | | 64 | | | 155 | |
|
Resonant Technology Partners (6) | | 6 | | | 38 | | | 63 | | | 196 | |
|
Forbes Ranch (11) | | — | | | — | | | 25 | | | — | |
|
| | $ | 70 | | | $ | 193 | | | $ | 152 | | | $ | 15,918 | |
|
Related parties revenue activity: | | | | | | | | |
Alice Environmental Services, LP/Alice Environmental Holding LLC (4) | | $ | 3 | | | $ | — | | | $ | 3 | | | $ | — | |
|
CJ Petroleum Service LLC (12) | | — | | | — | | | — | | | 18 | |
|
Dorsal Services, Inc. (3) | | — | | | — | | | 17 | | | (1 | ) |
|
Tasco Tool Services, Inc. (5) | | — | | | — | | | 22 | | | — | |
|
Wolverine Construction, Inc. (7) | | — | | | 2 | | | — | | | 41 | |
|
Texas Quality Gate Guard Services, LLC (8) | | — | | | — | | | — | | | 4 | |
|
Testco Well Services, LLC (10) | | 18 | | | 9 | | | 36 | | | 8 | |
|
| | $ | 21 | | | $ | 11 | | | $ | 78 | | | $ | 70 | |
|
| | | | | | | | |
Related parties expense activity: | | | | | | | | |
Alice Environmental Services, LP/Alice Environmental Holding LLC (4) | | $ | 535 | | | $ | 673 | | | $ | 1,454 | | | $ | 3,205 | |
|
CJ Petroleum Service LLC (12) | | — | | | — | | | — | | | 294 | |
|
Dorsal Services, Inc. (3) | | 159 | | | 45 | | | 181 | | | 113 | |
|
Tasco Tool Services, Inc. (5) | | 22 | | | 85 | | | 48 | | | 134 | |
|
FCJ Management, LLC (13) | | 9 | | | 9 | | | 27 | | | 27 | |
|
C&F Partners, LLC (14) | | — | | | — | | | — | | | 199 | |
|
Resonant Technology Partners (6) | | 110 | | | 49 | | | 251 | | | 367 | |
|
Wolverine Construction, Inc. (7) | | — | | | 6 | | | — | | | 35 | |
|
JITSU Services, LLC (15) | | — | | | 101 | | | 203 | | | 304 | |
|
Texas Quality Gate Guard Services, LLC (8) | | 97 | | | 42 | | | 334 | | | 305 | |
|
Animas Holdings, LLC (9) | | 263 | | | — | | | 611 | | | 26 | |
|
Testco Well Services, LLC (10) | | 9 | | | — | | | 11 | | | 5 | |
|
| | $ | 1,204 | | | $ | 1,010 | | | $ | 3,120 | | | $ | 5,014 | |
|
(1)The Company has a deposit relationship with Texas Champion Bank. Travis Burris, one of the directors of FES Ltd., is also the President, Chief Executive Officer, and director of Texas Champion Bank. Mr. Crisp, our President and Chief Executive Officer, serves on the board of directors. |
(2)Messrs. Crisp and Forbes are directors and shareholders of Brush Country Bank, an institution with which the Company conducts business and has deposits. |
(3)Dorsal Services, Inc. provides trucking services to the Company. Mr. Crisp, an executive officer and director and Denyce Crisp, the ex-wife of John Crisp, are partial owners of Dorsal Services, Inc. |
(4)Messrs. John E. Crisp and Charles C. Forbes, Jr., executive officers and directors of FES Ltd., are also owners and managers of Alice Environmental Holdings, LLC or AEH, and indirect owners and managers of Alice Environmental Services, LP, or AES. The Company leases or rents land and buildings, disposal wells, aircraft, and other equipment from AES. |
(5)Tasco Tool Services, Inc. is a down-hole tool company that is partially owned and managed by a company that is owned by Mr. Forbes, both an executive officer and director of FES Ltd., along with Robert Jenkins a manager of one of the subsidiaries of FES Ltd. Tasco rents and sells tools to the Company from time to time. |
(6)Resonant Technology Partners is a computer networking group that provides services to the Company. Travis Burris, a director of the Company had a noncontrolling interest in the computer networking company, which was sold in July 2012. |
(7)Wolverine Construction, Inc. is an entity that is owned by two sons and a brother of Mr. Crisp, an executive officer and director of FES Ltd., and a son of Mr. Forbes, an executive officer and director of FES Ltd. Wolverine provided construction and site preparation services to certain customers of the Company. |
(8)Texas Quality Gate Guard Services, LLC, or Texas Quality Gate Guard Services, is an entity owned by Messrs. Crisp and Forbes and a son of Mr. Crisp, an executive officer and director of FES Ltd. Texas Quality Gate Guard Services has provided security services to the Company. |
(9)Animas Holdings, LLC or Animas, is a property and disposal company that is owned by the two sons of Mr. Crisp and three children of Mr. Forbes and Ms. Forbes. The Company pays Animas for waste water disposal and lease facilities. |
(10)Testco Well Services, LLC is a company that provides valve and gathering system testing services to the Company. Messrs. Crisp and Forbes, executive officers and directors of FES Ltd, along with a son of Mr. Crisp are partial owners of Testco. In August, Testco Well Services, LLC was sold to a third party. It is no longer a related party. |
(11)Forbes Ranch is owned by a brother of Mr. Forbes, an executive officer and director of FES Ltd. Forbes Ranch. The Company purchased a truck scale from Forbes Ranch during the second quarter. |
(12)CJ Petroleum Service LLC or CJ Petroleum, is a company that owns salt water disposal wells and is owned by Messrs. Crisp and Forbes, two sons of Mr. Crisp and Janet Forbes, a director of FES Ltd. The Company paid CJ Petroleum to purchase certain disposal wells which are no longer being rented. |
(13)FCJ Management, LLC or FCJ, is an entity that leases land and facilities to the Company and is owned by Messrs. Crisp, and Forbes and Robert Jenkins, a manager of one of the subsidiaries of FES Ltd. |
(14)C&F Partners, LLC is an entity that is owned by Messrs. Crisp and Forbes. The Company had expenses with regard to C&F Partners, LLC related to aircraft rental. |
(15)JITSU Services, LLC or JITSU, is a financial leasing company owned by Janet Forbes, a director of the Company and Mr. Crisp. The Company currently leases ten vacuum trucks from JITSU. |