Receivables | RECEIVABLES Accounts Receivable (in thousands) June 30, 2019 December 31, 2018 Production sales $ 29,730 $ 31,532 Joint interest billings 20,836 18,147 Pooling interest (1) 11,506 18,786 Allowance for doubtful accounts (410 ) (95 ) Total accounts receivable, net $ 61,662 $ 68,370 _________________ (1) Pooling interest relates to Oklahoma’s forced pooling process which permits mineral interest owners the option to participate in the drilling of proposed wells. The pooling interest listed above represents unbilled costs for wells where the option remains pending. Depending upon the mineral owner’s decision, these costs will be billed to them or added to oil and gas properties. Related Party Receivables (in thousands) June 30, 2019 December 31, 2018 Related party receivables $ 23,037 $ 33,316 Allowance for doubtful accounts (9,888 ) (9,034 ) Related party receivables, net 13,149 24,282 Notes receivable from related parties 13,403 13,403 Allowance for doubtful accounts (13,403 ) (13,403 ) Notes receivable from related parties, net — — Total related party receivables, net $ 13,149 $ 24,282 KFM Receivables We have entered into contracts with KFM whereby they provide midstream services, including produced water disposal, to us. During the six months ended June 30, 2019 , the period February 9, 2018 through June 30, 2018, and the Predecessor Period, we incurred $30.8 million , $13.6 million , and $3.1 million , respectively, in midstream services, which we have recognized in transportation and marketing expense. Additionally, we had related party receivables from KFM which include its portion of allocated G&A, other expenditures attributable to KFM and proceeds due to us for KFM’s sale of our natural gas and NGLs reduced by the fees from midstream services that KFM provided to us totaling $4.6 million and $11.2 million at June 30, 2019 and December 31, 2018 , respectively. In addition, we sold a produced water disposal system to KFM during the fourth quarter of 2018. As of December 31, 2018 , related party receivables of $8.7 million were attributable to a purchase price adjustment due from KFM. We collected this receivable during June 2019. AMR Receivables We incur general and administrative costs that may be partially or fully allocable to AMR. These costs are either allocated monthly or charged directly to AMR but are cash settled in arrears. As of June 30, 2019 and December 31, 2018, respectively, we have receivables from AMR for such costs totaling $8.5 million and $3.3 million , respectively. Management Services Agreement with High Mesa (in thousands) June 30, 2019 High Mesa related party receivable at December 31, 2018 $ 10,066 Additions 894 Payments (1,072 ) High Mesa related party receivable at June 30, 2019 9,888 Allowance for uncollectibility (1) (9,888 ) Balance at June 30, 2019, net $ — _________________ (1) $9.0 million of the allowance was recognized during the 2018 Successor Period. Just prior to the Business Combination, we distributed the non-STACK oil and gas assets to High Mesa. High Mesa and certain of its subsidiaries agreed to indemnify and hold us harmless from any liabilities associated with those non-STACK oil and gas assets, regardless of when those liabilities arose. We also entered into a management services agreement (the “High Mesa Agreement”) with HMI with respect to the non-STACK assets. Under the High Mesa Agreement, during the 180 -day period following the Closing, we agreed to provide certain administrative, management and operational services necessary to manage the business of HMI and its subsidiaries (the “Services”). Thereafter, the High Mesa Agreement automatically renewed for additional consecutive 180 -day periods, unless terminated by either party upon at least 90 -days written notice prior to renewal. HMI agreed to pay us each month (i) a management fee of $ 10,000 and (ii) an amount equal to any and all costs and expenses incurred in connection with providing the Services. Although the automatic renewal of this agreement occurred in the third quarter of 2018, the parties subsequently agreed to terminate the High Mesa Agreement, effective January 31, 2019. Through April 1, 2019, we were obligated to take all actions that HMI reasonably requested to effect the transition of the Services to a successor service provider. During the transition period, HMI agreed to pay us (i) for all Services performed, (ii) an amount equal to our costs and expenses incurred in connection with providing the Services as provided for in the approved budget and (iii) an amount equal to our costs and expenses reimbursable pursuant to the High Mesa Agreement. As of June 30, 2019 , and December 31, 2018 , approximately $9.9 million and $10.1 million, respectively, were due from HMI for reimbursement of costs and expenses which are recorded as “Related party receivables, net” in the balance sheets. HMI has disputed certain of the amounts we billed. We are pursuing remedies under applicable law in connection with repayment of this receivable. There is no guarantee that HMI will pay the amounts it owes. In addition, our ability to collect these amounts or future amounts that may become due pursuant to indemnification obligations may be adversely impacted by liquidity and solvency issues at HMI. As a result of these circumstances, we have recognized an allowance for uncollectible accounts of $9.9 million and $9.0 million as of June 30, 2019 and December 31, 2018 , respectively, to fully provide for the unremitted balances. We may also be subject to future contingent liabilities for the non-STACK assets for which we should have been indemnified, including liabilities associated with litigation relating to the non-STACK assets. As of June 30, 2019 and December 31, 2018, we have established no liabilities for contingent obligations associated with non-STACK assets owned by High Mesa. Promissory notes receivable In September, 2017, we entered into a $ 1.5 million promissory note receivable with our affiliate, Northwest Gas Processing, LLC, whose obligation was subsequently transferred to High Mesa Services, LLC (“HMS”), a subsidiary of HMI. The promissory note bore interest, which could be paid-in-kind and added to the principal amount at a rate of 8% per annum. HMS defaulted under the terms of that promissory note when it was not paid at maturity on February 28, 2019, and HMS has failed to cure such default. We subsequently declared all amounts owed under the note immediately due and payable and we have fully reserved the promissory note balance, including interest paid-in-kind, totaling $1.7 million as of June 30, 2019 and December 31, 2018 . In addition, we have an $ 8.5 million note receivable from HMS which matures on December 31, 2019, and bears interest at 8% per annum, which may be paid-in-kind and added to the principal amount. HMI disputes its obligations under the $8.5 million note. As of June 30, 2019 , and December 31, 2018 , the note receivable balance, including interest paid-in-kind, amounted to $11.7 million, for each respective period. This balance was fully reserved at the end of both periods. We oppose HMI’s claims and believe HMI’s obligations under the notes to be valid assets and that the full amount is payable to us. We are pursuing remedies under applicable law in connection with repayment of the promissory notes. As a result of the potential conflict of interest from certain of AMR’s directors who are also controlling holders of HMI, AMR’s disinterested directors will address any potential conflicts of interest with respect to this matter. |