Other |
12 Months Ended |
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Dec. 31, 2017 | |
| Other [Abstract] | |
| Other |
Other
Commitments and contingencies
The Company is involved in various claims and lawsuits incidental to its business. In the opinion of management, the ultimate liability hereunder, if any, will not have a material adverse effect on the financial position or results of operations of the Company.
The Company’s activities are subject to federal, state and local laws and regulations governing environmental quality and pollution control. Although no assurances can be made, the Company believes that, absent the occurrence of an extraordinary event, compliance with existing federal, state and local laws, rules and regulations governing the release of materials into the environment or otherwise relating to the protection of the environment are not expected to have a material effect upon the capital expenditures, earnings or the competitive position of the Company with respect to its existing assets and operations. The Company cannot predict what effect additional regulation or legislation, enforcement policies hereunder, and claims for damages to property, employees, other persons and the environment resulting from the Company’s operations could have on its activities.
Operating leases
As of December 31, 2017, the Company had contracts for five horizontal drilling rigs (the “Cactus Rig 1”, “Cactus Rig 2” “Cactus Rig 3”, “Cactus Rig 4” and “Independence Rig”). The contract terms, as amended through December 31, 2017, of the Cactus Rig 1 and Cactus Rig 2 will end in January 2020 and February 2021, respectively. The contract terms, as amended in July 2017, of the Cactus Rig 3 that commenced drilling in mid-January 2017, will end in July 2018. Effective April 2017, the Company entered into a contract for the Independence Rig, which commenced drilling in July 2017. The contract terms of the Independence Rig will end in July 2019. Effective November 2017, the Company entered into a contract for the Cactus Rig 4, which commenced drilling in mid-February 2018. The contract terms of the Cactus 4 Rig will end in February 2020.
In March 2015, the Company decided to terminate its one-year contract for a vertical drilling rig (effective April 2015). The Company paid approximately $3,075 in reduced rental payments over the remainder of the lease term, which ended November 2015. The amount was recognized as rig termination fee on the consolidated statements of operations for the year ended December 31, 2015.
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