|3 Months Ended|
Mar. 31, 2019
|Equity Method Investments and Joint Ventures [Abstract]|
Investments accounted for by the equity method consist of the following as of March 31, 2019 and December 31, 2018:
The tables below summarize financial information for the Company’s equity investments as of March 31, 2019 and December 31, 2018.
Summarized balance sheet information:
Summarized results of operations:
Tatex Thailand II, LLC
The Company has an indirect ownership interest in Tatex Thailand II, LLC (“Tatex II”). Tatex II holds an 8.5% interest in APICO, LLC (“APICO”), an international oil and gas exploration company. APICO has a reserve base located in Southeast Asia through its ownership of concessions covering approximately 108,000 acres which includes the Phu Horm Field. The Company received $0.1 million and an immaterial amount in distributions from Tatex II during the three months ended March 31, 2019 and 2018, respectively.
Grizzly Oil Sands ULC
The Company, through its wholly-owned subsidiary Grizzly Holdings Inc. (“Grizzly Holdings”), owns an interest in Grizzly Oil Sands ULC (“Grizzly”), a Canadian unlimited liability company. The remaining interest in Grizzly is owned by Grizzly Oil Sands Inc. (“Oil Sands”). As of March 31, 2019, Grizzly had approximately 830,000 acres under lease in the Athabasca, Peace River and Cold Lake oil sands regions of Alberta, Canada. The Company reviewed its investment in Grizzly for impairment at March 31, 2019 and 2018 and determined no impairment was required. If commodity prices decline in the future however, impairment of the investment in Grizzly may be necessary. During the three months ended March 31, 2019, Gulfport paid $0.4 million in cash calls. Grizzly’s functional currency is the Canadian dollar. The Company’s investment in Grizzly was increased by a $3.7 million foreign currency translation gain and decreased by a $5.3 million foreign currency translation loss for the three months ended March 31, 2019 and 2018, respectively.
Timber Wolf Terminals LLC
During 2012, the Company invested in Timber Wolf. Timber Wolf was formed to operate a crude/condensate terminal and a sand transloading facility in Ohio. During the three months ended March 31, 2018, the Company paid no cash calls to Timber Wolf. Timber Wolf was dissolved in 2018.
Windsor Midstream LLC
At March 31, 2019, the Company held a 22.5% interest in Windsor Midstream LLC (“Midstream”), an entity controlled and managed by an unrelated third party. The Company received no distributions from Midstream during the three months ended March 31, 2019 and 2018.
Mammoth Energy Services, Inc.
At March 31, 2019, the Company owned 9,831,770 shares, or approximately 21.9%, of the outstanding common stock of Mammoth Energy Services, Inc. ("Mammoth Energy"). The Company’s investment in Mammoth Energy was increased by a $0.1 million foreign currency translation gain and decreased by a $0.2 million foreign currency translation loss resulting from Mammoth Energy’s foreign subsidiary for the three months ended March 31, 2019 and 2018, respectively. During the three months ended March 31, 2019, Gulfport received distributions of $1.2 million from Mammoth Energy as a result of a $0.125 per share dividend in February 2019. The approximate fair value of the Company's investment in Mammoth Energy's common stock at March 31, 2019 was $163.7 million based on the quoted market price of Mammoth Energy's common stock. The (income) loss from equity method investments presented in the table above reflects any intercompany profit eliminations.
Strike Force Midstream LLC
In February 2016, the Company, through its wholly-owned subsidiary Gulfport Midstream Holdings, LLC (“Midstream Holdings”), entered into an agreement with Rice Midstream Holdings LLC (“Rice”), then a subsidiary of Rice Energy Inc., to develop natural gas gathering assets in eastern Belmont County and Monroe County, Ohio through Strike Force. In 2017, Rice was acquired by EQT Corporation ("EQT"). The Company owned a 25% interest in Strike Force, which was sold to EQT Midstream Partners, LP in May 2018. The (income) loss from equity method investments presented in the table above reflects any intercompany profit eliminations. During the three months ended March 31, 2018, Gulfport received distributions of $0.8 million from Strike Force.
The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef