ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 98-0479924 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
900, 520 - 3 Avenue SW Calgary, Alberta Canada T2P 0R3 | ||
(Address of principal executive offices, including zip code) |
Large accelerated filer x | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Emerging growth company o |
Page | ||
PART I | Financial Information | |
Item 1. | Financial Statements | |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II | Other Information | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 6. | Exhibits | |
SIGNATURES |
bbl | barrel | BOE | barrels of oil equivalent |
bopd | barrels of oil per day | BOEPD | barrels of oil equivalent per day |
Mcf | thousand cubic feet | NAR | net after royalty |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
OIL AND NATURAL GAS SALES (Notes 3 and 7) | $ | 163,446 | $ | 96,128 | $ | 301,674 | $ | 190,787 | |||||||
EXPENSES | |||||||||||||||
Operating | 35,059 | 27,208 | 61,324 | 51,145 | |||||||||||
Transportation | 6,522 | 6,492 | 13,519 | 13,434 | |||||||||||
Depletion, depreciation and accretion (Note 3) | 46,607 | 31,813 | 86,068 | 58,689 | |||||||||||
General and administrative (Note 3) | 13,213 | 9,513 | 24,373 | 18,225 | |||||||||||
Equity tax | — | — | — | 1,224 | |||||||||||
Foreign exchange loss | 1,924 | 3,897 | 982 | 2,050 | |||||||||||
Financial instruments loss (gain) (Note 10) | 4,768 | (1,447 | ) | 11,714 | (6,886 | ) | |||||||||
Interest expense (Note 5) | 7,375 | 3,331 | 12,870 | 6,426 | |||||||||||
115,468 | 80,807 | 210,850 | 144,307 | ||||||||||||
LOSS ON SALE | (292 | ) | (9,076 | ) | (292 | ) | (9,076 | ) | |||||||
INTEREST INCOME | 610 | 245 | 1,396 | 653 | |||||||||||
INCOME BEFORE INCOME TAXES (Note 3) | 48,296 | 6,490 | 91,928 | 38,057 | |||||||||||
INCOME TAX EXPENSE | |||||||||||||||
Current (Note 8) | 4,827 | 1,772 | 17,116 | 9,189 | |||||||||||
Deferred (Note 8) | 23,169 | 11,525 | 36,651 | 22,904 | |||||||||||
27,996 | 13,297 | 53,767 | 32,093 | ||||||||||||
NET AND COMPREHENSIVE INCOME (LOSS) | $ | 20,300 | $ | (6,807 | ) | $ | 38,161 | $ | 5,964 | ||||||
NET INCOME (LOSS) PER SHARE | |||||||||||||||
- BASIC AND DILUTED | $ | 0.05 | $ | (0.02 | ) | $ | 0.10 | $ | 0.01 | ||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 6) | 391,054,204 | 398,585,290 | 391,173,460 | 398,795,023 | |||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 6) | 427,455,092 | 398,585,290 | 427,242,014 | 398,816,091 |
As at June 30, 2018 | As at December 31, 2017 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents (Note 11) | $ | 125,807 | $ | 12,326 | |||
Restricted cash and cash equivalents (Note 11) | 2,836 | 11,787 | |||||
Accounts receivable | 63,030 | 45,353 | |||||
Investment (Note 10) | 32,654 | 25,055 | |||||
Derivatives (Note 10) | 930 | 302 | |||||
Taxes receivable | 62,689 | 40,831 | |||||
Other current assets | 14,423 | 9,591 | |||||
Total Current Assets | 302,369 | 145,245 | |||||
Oil and Gas Properties (using the full cost method of accounting) | |||||||
Proved | 750,948 | 629,081 | |||||
Unproved | 423,808 | 464,948 | |||||
Total Oil and Gas Properties | 1,174,756 | 1,094,029 | |||||
Other capital assets | 3,440 | 5,195 | |||||
Total Property, Plant and Equipment (Notes 3 and 4) | 1,178,196 | 1,099,224 | |||||
Other Long-Term Assets | |||||||
Deferred tax assets | 18,248 | 57,310 | |||||
Investment (Note 10) | 15,302 | 19,147 | |||||
Other long-term assets (Note 11) | 5,389 | 6,112 | |||||
Goodwill (Note 3) | 102,581 | 102,581 | |||||
Total Other Long-Term Assets | 141,520 | 185,150 | |||||
Total Assets (Note 3) | $ | 1,622,085 | $ | 1,429,619 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 126,726 | $ | 125,876 | |||
Derivatives (Note 10) | 27,157 | 21,151 | |||||
Taxes payable | 3,848 | 9,324 | |||||
Asset retirement obligation | 110 | 323 | |||||
Equity compensation award liability (Note 10) | 11,597 | 295 | |||||
Total Current Liabilities | 169,438 | 156,969 | |||||
Long-Term Liabilities | |||||||
Long-term debt (Notes 5 and 10) | 398,130 | 256,542 | |||||
Deferred tax liabilities | 24,528 | 28,417 | |||||
Asset retirement obligation | 35,839 | 31,241 | |||||
Equity compensation award liability (Note 10) | 9,480 | 11,135 | |||||
Other long-term liabilities | 9,381 | 8,980 | |||||
Total Long-Term Liabilities | 477,358 | 336,315 | |||||
Contingencies (Note 9) | |||||||
Shareholders’ Equity | |||||||
Common Stock (Note 6) (390,017,518 and 385,191,042 shares of Common Stock and 1,135,239 and 6,111,665 exchangeable shares, par value $0.001 per share, issued and outstanding as at June 30, 2018, and December 31, 2017, respectively) | 10,295 | 10,295 | |||||
Additional paid in capital | 1,328,037 | 1,327,244 | |||||
Deficit | (363,043 | ) | (401,204 | ) | |||
Total Shareholders’ Equity | 975,289 | 936,335 | |||||
Total Liabilities and Shareholders’ Equity | $ | 1,622,085 | $ | 1,429,619 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Operating Activities | |||||||
Net income | $ | 38,161 | $ | 5,964 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depletion, depreciation and accretion (Note 3) | 86,068 | 58,689 | |||||
Deferred tax expense | 36,651 | 22,904 | |||||
Stock-based compensation (Note 6) | 10,202 | 3,183 | |||||
Amortization of debt issuance costs (Note 5) | 1,513 | 1,225 | |||||
Cash settlement of restricted share units | (360 | ) | (501 | ) | |||
Unrealized foreign exchange loss | 539 | 1,076 | |||||
Financial instruments loss (gain) (Note 10) | 11,714 | (6,886 | ) | ||||
Cash settlement of financial instruments (Note 10) | (15,483 | ) | 1,216 | ||||
Cash settlement of asset retirement obligation | (369 | ) | (298 | ) | |||
Loss on sale | 292 | 9,076 | |||||
Net change in assets and liabilities from operating activities (Note 11) | (37,994 | ) | (28,112 | ) | |||
Net cash provided by operating activities | 130,934 | 67,536 | |||||
Investing Activities | |||||||
Additions to property, plant and equipment (Note 3) | (157,088 | ) | (104,025 | ) | |||
Property acquisitions | (3,100 | ) | (30,410 | ) | |||
Net proceeds from sale of Brazil business unit | — | 34,481 | |||||
Cash deposit received for letter of credit arrangements upon sale of Brazil business unit | — | 4,700 | |||||
Changes in non-cash investing working capital | (6,142 | ) | (627 | ) | |||
Net cash used in investing activities | (166,330 | ) | (95,881 | ) | |||
Financing Activities | |||||||
Proceeds from bank debt, net of issuance costs (Note 5) | 4,988 | 98,304 | |||||
Repayment of bank debt (Note 5) | (153,000 | ) | (33,000 | ) | |||
Proceeds from exercise of stock options (Note 6) | 845 | — | |||||
Repurchase of shares of Common Stock (Note 6) | (1,208 | ) | (10,000 | ) | |||
Proceeds from issuance of Senior Notes, net of issuance costs (Note 5) | 288,087 | — | |||||
Net cash provided by financing activities | 139,712 | 55,304 | |||||
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents | (69 | ) | (1,175 | ) | |||
Net increase in cash, cash equivalents and restricted cash and cash equivalents | 104,247 | 25,784 | |||||
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period (Note 11) | 26,678 | 43,267 | |||||
Cash, cash equivalents and restricted cash and cash equivalents, end of period (Note 11) | $ | 130,925 | $ | 69,051 | |||
Supplemental cash flow disclosures (Note 11) |
Six Months Ended June 30, | Six Months Ended June 30, | ||||||
2018 | 2017 | ||||||
Share Capital | |||||||
Balance, beginning of period | $ | 10,295 | $ | 10,303 | |||
Repurchase of Common Stock (Note 6) | — | (4 | ) | ||||
Balance, end of period | 10,295 | 10,299 | |||||
Additional Paid in Capital | |||||||
Balance, beginning of period | 1,327,244 | 1,342,656 | |||||
Exercise of stock options (Note 6) | 845 | — | |||||
Stock-based compensation (Note 6) | 1,156 | 1,354 | |||||
Repurchase of Common Stock (Note 6) | (1,208 | ) | (9,996 | ) | |||
Balance, end of period | 1,328,037 | 1,334,014 | |||||
Deficit | |||||||
Balance, beginning of period | (401,204 | ) | (493,972 | ) | |||
Net income | 38,161 | 5,964 | |||||
Cumulative adjustment for accounting change related to tax reorganizations | — | 124,476 | |||||
Balance, end of period | (363,043 | ) | (363,532 | ) | |||
Total Shareholders’ Equity | $ | 975,289 | $ | 980,781 |
Three Months Ended June 30, 2018 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 163,446 | $ | — | $ | 163,446 | |||||
Depletion, depreciation and accretion | 46,065 | 542 | 46,607 | ||||||||
General and administrative expenses | 7,213 | 6,000 | 13,213 | ||||||||
Income (loss) before income taxes | 51,029 | (2,733 | ) | 48,296 | |||||||
Segment capital expenditures | 83,757 | 637 | 84,394 | ||||||||
Three Months Ended June 30, 2017 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 91,905 | $ | 4,223 | $ | 96,128 | |||||
Depletion, depreciation and accretion | 30,130 | 1,683 | 31,813 | ||||||||
General and administrative expenses | 5,229 | 4,284 | 9,513 | ||||||||
Income (loss) before income taxes | 21,598 | (15,108 | ) | 6,490 | |||||||
Segment capital expenditures | 55,436 | 2,429 | 57,865 | ||||||||
Six Months Ended June 30, 2018 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 301,674 | $ | — | $ | 301,674 | |||||
Depletion, depreciation and accretion | 84,564 | 1,504 | 86,068 | ||||||||
General and administrative expenses | 14,022 | 10,351 | 24,373 | ||||||||
Income (loss) before income taxes | 112,180 | (20,252 | ) | 91,928 | |||||||
Segment capital expenditures | 156,318 | 770 | 157,088 | ||||||||
Six Months Ended June 30, 2017 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 182,369 | $ | 8,418 | $ | 190,787 | |||||
Depletion, depreciation and accretion | 55,065 | 3,624 | 58,689 | ||||||||
General and administrative expenses | 10,061 | 8,164 | 18,225 | ||||||||
Income (loss) before income taxes | 58,742 | (20,685 | ) | 38,057 | |||||||
Segment capital expenditures | 98,276 | 5,749 | 104,025 |
As at June 30, 2018 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Property, plant and equipment | $ | 1,176,540 | $ | 1,656 | $ | 1,178,196 | |||||
Goodwill | 102,581 | — | 102,581 | ||||||||
All other assets | 175,563 | 165,745 | 341,308 | ||||||||
Total Assets | $ | 1,454,684 | $ | 167,401 | $ | 1,622,085 | |||||
As at December 31, 2017 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Property, plant and equipment | $ | 1,096,833 | $ | 2,391 | $ | 1,099,224 | |||||
Goodwill | 102,581 | — | 102,581 | ||||||||
All other assets | 176,980 | 50,834 | 227,814 | ||||||||
Total Assets | $ | 1,376,394 | $ | 53,225 | $ | 1,429,619 |
(Thousands of U.S. Dollars) | As at June 30, 2018 | As at December 31, 2017 | |||||
Oil and natural gas properties | |||||||
Proved | $ | 3,014,725 | $ | 2,810,796 | |||
Unproved | 423,808 | 464,948 | |||||
3,438,533 | 3,275,744 | ||||||
Other | 19,086 | 26,401 | |||||
3,457,619 | 3,302,145 | ||||||
Accumulated depletion, depreciation and impairment | (2,279,423 | ) | (2,202,921 | ) | |||
$ | 1,178,196 | $ | 1,099,224 |
(Thousands of U.S. Dollars) | As at June 30, 2018 | As at December 31, 2017 | |||||
Senior notes | $ | 300,000 | $ | — | |||
Convertible notes | 115,000 | 115,000 | |||||
Revolving credit facility | — | 148,000 | |||||
Unamortized debt issuance costs | (16,870 | ) | (6,458 | ) | |||
Long-term debt | $ | 398,130 | $ | 256,542 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Contractual interest and other financing expenses | $ | 6,532 | $ | 2,711 | $ | 11,357 | $ | 5,201 | |||||||
Amortization of debt issuance costs | 843 | 620 | 1,513 | 1,225 | |||||||||||
$ | 7,375 | $ | 3,331 | $ | 12,870 | $ | 6,426 |
Shares of Common Stock | Exchangeable Shares of Gran Tierra Exchangeco Inc. | Exchangeable Shares of Gran Tierra Goldstrike Inc. | ||||
Balance, December 31, 2017 | 385,191,042 | 4,422,776 | 1,688,889 | |||
Options exercised | 319,462 | — | — | |||
Shares repurchased and canceled | (469,412 | ) | — | — | ||
Exchange of exchangeable shares | 4,976,426 | (3,287,537 | ) | (1,688,889 | ) | |
Balance, June 30, 2018 | 390,017,518 | 1,135,239 | — |
PSUs | DSUs | RSUs | Stock Options | ||||||||
Number of Outstanding Share Units | Number of Outstanding Share Units | Number of Outstanding Share Units | Number of Outstanding Stock Options | Weighted Average Exercise Price/Stock Option ($) | |||||||
Balance, December 31, 2017 | 6,131,951 | 455,768 | 122,090 | 8,960,692 | 3.65 | ||||||
Granted | 3,544,001 | 131,888 | — | 1,996,526 | 2.51 | ||||||
Exercised | — | — | (120,268 | ) | (319,462 | ) | 2.65 | ||||
Forfeited | (213,160 | ) | — | (1,822 | ) | (491,475 | ) | 5.42 | |||
Expired | — | — | — | (171,854 | ) | 6.15 | |||||
Balance, June 30, 2018 | 9,462,792 | 587,656 | — | 9,974,427 | 3.33 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Weighted average number of common and exchangeable shares outstanding | 391,054,204 | 398,585,290 | 391,173,460 | 398,795,023 | |||||||
Shares issuable pursuant to stock options | 4,894,633 | — | 2,420,509 | 625,631 | |||||||
Shares assumed to be purchased from proceeds of stock options | (4,308,138 | ) | — | (2,166,348 | ) | (604,563 | ) | ||||
Shares issuable pursuant to convertible notes | 35,814,393 | — | 35,814,393 | — | |||||||
Weighted average number of diluted common and exchangeable shares outstanding | 427,455,092 | 398,585,290 | 427,242,014 | 398,816,091 |
(Thousands of U.S. Dollars) | As at June 30, 2018 | As at December 31, 2017 | |||||
Investment in PetroTal shares - current and long-term | $ | 47,956 | $ | 44,202 | |||
Foreign currency derivative asset | 930 | 302 | |||||
$ | 48,886 | $ | 44,504 | ||||
Commodity price derivative liability | $ | 27,157 | $ | 21,151 | |||
Equity compensation award liability - current and long-term | 21,077 | 11,430 | |||||
$ | 48,234 | $ | 32,581 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Commodity price derivative loss (gain) | $ | 14,461 | $ | (1,545 | ) | $ | 19,455 | $ | (6,247 | ) | |||||
Foreign currency derivatives loss (gain) | 1,945 | 98 | (2,024 | ) | (639 | ) | |||||||||
Investment gain | (11,638 | ) | — | (5,717 | ) | — | |||||||||
Financial instruments loss (gain) | $ | 4,768 | $ | (1,447 | ) | $ | 11,714 | $ | (6,886 | ) |
Six Months Ended | Year Ended | ||||||
(Thousands of U.S. Dollars) | June 30, 2018 | December 31, 2017 | |||||
Opening balance, investment - long-term | $ | 19,147 | $ | — | |||
Acquisition | — | 19,091 | |||||
Transfer from long-term (Level 3) to current (Level 1) | (4,787 | ) | — | ||||
Unrealized valuation gain | 2,528 | 56 | |||||
Unrealized foreign exchange loss | (1,586 | ) | — | ||||
Closing balance, investment - long-term | $ | 15,302 | $ | 19,147 |
Period and type of instrument | Volume, bopd | Reference | Sold Swap ($/bbl, Weighted Average) | Purchased Call ($/bbl, Weighted Average) | |||||
Swaps: July 1, to December 31, 2018 | 5,000 | ICE Brent | $ | 55.90 | n/a | ||||
Participating Swaps: July 1, to December 31, 2018 | 5,000 | ICE Brent | $ | 52.50 | $ | 56.11 |
Period and type of instrument | Amount Hedged (Millions COP) | U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars)(1) | Reference | Purchased Call (COP) | Sold Put (COP, Weighted Average) | ||||
Collars: July 1, 2018 to December 31, 2018 | 87,000 | 29,685 | COP | 3,000 | 3,107 |
(Thousands of U.S. Dollars) | As at June 30, | As at December 31, | |||||||||||
2018 | 2017 | 2017 | 2016 | ||||||||||
Cash and cash equivalents | $ | 125,807 | $ | 53,310 | $ | 12,326 | $ | 25,175 | |||||
Restricted cash and cash equivalents - current | 2,836 | 5,844 | 11,787 | 8,322 | |||||||||
Restricted cash and cash equivalents - long-term (included in other long-term assets) | 2,282 | 9,897 | 2,565 | 9,770 | |||||||||
$ | 130,925 | $ | 69,051 | $ | 26,678 | $ | 43,267 |
Six Months Ended June 30, | |||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | |||||
Accounts receivable and other long-term assets | $ | (11,723 | ) | $ | 11,024 | ||
Derivatives | 3,431 | — | |||||
Inventory | (3,054 | ) | (47 | ) | |||
Prepaids | (301 | ) | 2,190 | ||||
Accounts payable and accrued and other long-term liabilities | 971 | (6,179 | ) | ||||
Taxes receivable and payable | (27,318 | ) | (35,100 | ) | |||
Net changes in assets and liabilities from operating activities | $ | (37,994 | ) | $ | (28,112 | ) |
Six Months Ended June 30, | |||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | |||||
Non-cash investing activities: | |||||||
Net liabilities related to property, plant and equipment, end of period | $ | 62,009 | $ | 56,044 |
• | Achieved a new company milestone: record Colombia working interest production before royalties of 35,400 BOEPD, 18% higher compared with 30,098 BOEPD in the second quarter of 2017. Production increased largely because of production from development activities in the Acordionero Field. |
• | The quarter's Colombia production was also up 57% from second quarter 2015 when the strategy to refocus Gran Tierra on Colombia began, an annual growth rate of 16% |
• | Since acquiring the Acordionero field in the Middle Magdalena Valley ("MMV") in August 2016, we have increased production 274% to a record high average rate during the quarter of 17,710 bopd (14,076 bopd NAR). From the acquisition date of August 23, 2016, until June 30, 2018, the MMV assets have generated $327 million in oil and natural gas sales |
• | Production NAR was 28,198 BOEPD, 12% higher than the second quarter of 2017. |
• | Continued significant exposure to oil price strength with oil representing 100% of our production |
• | Oil and natural gas sales volumes were 27,902 BOEPD, 11% higher than the second quarter of 2017. The quarter's increase in oil and gas sales volumes was driven by the production increase (5,302 bopd) , partially offset by higher royalties (2,383 bopd) due to higher oil prices and a change in inventories (149 bopd). |
• | Net income was $20.3 million compared with net loss of $6.8 million in the second quarter of 2017. Net loss in the comparative period included the loss on sale of Brazil business unit. |
• | Funds flow from operations(2) increased by 86% to $94.5 million compared with the second quarter of 2017, while the Brent price increased only 47% from the second quarter of 2017. |
• | Active quarter with capital expenditures of $84.4 million. Funds flow from operations exceeded capital expenditures by $10.2 million. |
• | Oil and gas sales per BOE were $64.37, 60% higher than the second quarter of 2017. |
• | Operating netback(2) per BOE was $47.99, 85% higher compared with the second quarter of 2017. |
• | Operating expenses per BOE were $13.81, 21% higher compared with the second quarter of 2017 as a result of payments triggered by renegotiating our field operating agreements, power generation costs, equipment rental and accelerated maintenance costs, mainly in the Acordionero field, in the quarter. |
• | Quality and transportation discount was $10.53 per BOE compared with $10.74 per BOE in the second quarter of 2017; this $0.21 per BOE reduction resulted from optimization of transportation routes and narrowing of differentials |
• | Transportation expenses per BOE were $2.57, 7% lower compared with the second quarter of 2017. The decrease was due to the increased use of alternative transportation routes, which had lower costs per BOE. |
• | General and administrative ("G&A") expenses before stock-based compensation per BOE decreased by 18% to $2.60 per BOE compared with the second quarter of 2017. |
• | Exited the quarter with $125.8 million of cash and cash equivalents. |
(Thousands of U.S. Dollars, unless otherwise indicated) | Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | ||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2018 | 2017 | % Change | |||||||||||||||
Average Daily Volumes (BOEPD) | |||||||||||||||||||||
Consolidated | |||||||||||||||||||||
Working Interest Production Before Royalties | 35,400 | 31,437 | 13 | 35,075 | 35,239 | 30,663 | 15 | ||||||||||||||
Royalties | (7,202 | ) | (5,014 | ) | 44 | (6,886 | ) | (7,045 | ) | (5,051 | ) | 39 | |||||||||
Production NAR | 28,198 | 26,423 | 7 | 28,189 | 28,194 | 25,612 | 10 | ||||||||||||||
Increase in Inventory | (296 | ) | (140 | ) | 111 | (986 | ) | (639 | ) | (61 | ) | 948 | |||||||||
Sales(1) | 27,902 | 26,283 | 6 | 27,203 | 27,555 | 25,551 | 8 | ||||||||||||||
Colombia | |||||||||||||||||||||
Working Interest Production Before Royalties | 35,400 | 30,098 | 18 | 35,075 | 35,239 | 29,294 | 20 | ||||||||||||||
Royalties | (7,202 | ) | (4,819 | ) | 49 | (6,886 | ) | (7,045 | ) | (4,843 | ) | 45 | |||||||||
Production NAR | 28,198 | 25,279 | 12 | 28,189 | 28,194 | 24,451 | 15 | ||||||||||||||
Increase in Inventory | (296 | ) | (147 | ) | 101 | (986 | ) | (639 | ) | (70 | ) | 813 | |||||||||
Sales(1) | 27,902 | 25,132 | 11 | 27,203 | 27,555 | 24,381 | 13 | ||||||||||||||
Net Income (Loss) | $ | 20,300 | $ | (6,807 | ) | 398 | $ | 17,861 | $ | 38,161 | $ | 5,964 | 540 | ||||||||
Operating Netback | |||||||||||||||||||||
Oil and Natural Gas Sales | $ | 163,446 | $ | 96,128 | 70 | $ | 138,228 | $ | 301,674 | $ | 190,787 | 58 | |||||||||
Operating Expenses | (35,059 | ) | (27,208 | ) | 29 | (26,265 | ) | (61,324 | ) | (51,145 | ) | 20 | |||||||||
Transportation Expenses | (6,522 | ) | (6,492 | ) | — | (6,997 | ) | (13,519 | ) | (13,434 | ) | 1 | |||||||||
Operating Netback(2) | $ | 121,865 | $ | 62,428 | 95 | $ | 104,966 | $ | 226,831 | $ | 126,208 | 80 | |||||||||
G&A Expenses Before Stock-Based Compensation | $ | 6,604 | $ | 7,610 | (13 | ) | $ | 7,982 | $ | 14,586 | $ | 15,173 | (4 | ) | |||||||
G&A Stock-Based Compensation | 6,609 | 1,903 | 247 | 3,178 | 9,787 | 3,052 | 221 | ||||||||||||||
General and Administrative ("G&A") Expenses, Including Stock-Based Compensation | $ | 13,213 | $ | 9,513 | 39 | $ | 11,160 | $ | 24,373 | $ | 18,225 | 34 | |||||||||
EBITDA(2) | $ | 102,278 | $ | 41,634 | 146 | $ | 88,588 | $ | 190,866 | $ | 103,172 | 85 | |||||||||
Funds Flow From Operations(2) | $ | 94,549 | $ | 50,920 | 86 | $ | 74,748 | $ | 169,297 | $ | 95,946 | 76 | |||||||||
Capital Expenditures | $ | 84,394 | $ | 57,865 | 46 | $ | 72,694 | $ | 157,088 | $ | 104,025 | 51 |
As at | ||||||||
(Thousands of U.S. Dollars) | June 30, 2018 | December 31, 2017 | % Change | |||||
Cash and Cash Equivalents | $ | 125,807 | $ | 12,326 | 921 | |||
Revolving Credit Facility | $ | — | $ | 148,000 | (100 | ) | ||
Senior Notes | $ | 300,000 | $ | — | — | |||
Convertible Notes | $ | 115,000 | $ | 115,000 | — |
Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 20,300 | $ | (6,807 | ) | $ | 17,861 | $ | 38,161 | $ | 5,964 | ||||||
Adjustments to reconcile net income (loss) to EBITDA | |||||||||||||||||
DD&A expenses | 46,607 | 31,813 | 39,461 | 86,068 | 58,689 | ||||||||||||
Interest expense | 7,375 | 3,331 | 5,495 | 12,870 | 6,426 | ||||||||||||
Income tax expense | 27,996 | 13,297 | 25,771 | 53,767 | 32,093 | ||||||||||||
EBITDA (non-GAAP) | 102,278 | 41,634 | 88,588 | 190,866 | 103,172 |
Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 20,300 | $ | (6,807 | ) | $ | 17,861 | 38,161 | $ | 5,964 | |||||||
Adjustments to reconcile net income (loss) to funds flow from operations | |||||||||||||||||
DD&A expenses | 46,607 | 31,813 | 39,461 | 86,068 | 58,689 | ||||||||||||
Deferred tax expense | 23,169 | 11,525 | 13,482 | 36,651 | 22,904 | ||||||||||||
Stock-based compensation expense | 6,893 | 1,980 | 3,309 | 10,202 | 3,183 | ||||||||||||
Amortization of debt issuance costs | 843 | 620 | 670 | 1,513 | 1,225 | ||||||||||||
Cash settlement of RSUs | (240 | ) | (183 | ) | (120 | ) | (360 | ) | (501 | ) | |||||||
Unrealized foreign exchange loss (gain) | 1,583 | 3,895 | (1,044 | ) | 539 | 1,076 | |||||||||||
Financial instruments loss (gain) | 4,768 | (1,447 | ) | 6,946 | 11,714 | (6,886 | ) | ||||||||||
Cash settlement of financial instruments | (9,666 | ) | 448 | (5,817 | ) | (15,483 | ) | 1,216 | |||||||||
Loss on sale | 292 | 9,076 | — | 292 | 9,076 | ||||||||||||
Funds flow from operations (non-GAAP) | $ | 94,549 | $ | 50,920 | $ | 74,748 | $ | 169,297 | $ | 95,946 |
Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2018 | 2017 | % Change | |||||||||||||||
(Thousands of U.S. Dollars) | |||||||||||||||||||||
Oil and natural gas sales | $ | 163,446 | $ | 96,128 | 70 | $ | 138,228 | $ | 301,674 | $ | 190,787 | 58 | |||||||||
Operating expenses | 35,059 | 27,208 | 29 | 26,265 | 61,324 | 51,145 | 20 | ||||||||||||||
Transportation expenses | 6,522 | 6,492 | — | 6,997 | 13,519 | 13,434 | 1 | ||||||||||||||
Operating netback(1) | 121,865 | 62,428 | 95 | 104,966 | 226,831 | 126,208 | 80 | ||||||||||||||
DD&A expenses | 46,607 | 31,813 | 47 | 39,461 | 86,068 | 58,689 | 47 | ||||||||||||||
G&A expenses before stock-based compensation | 6,604 | 7,610 | (13 | ) | 7,982 | 14,586 | 15,173 | (4 | ) | ||||||||||||
G&A stock-based compensation expense | 6,609 | 1,903 | 247 | 3,178 | 9,787 | 3,052 | 221 | ||||||||||||||
Equity tax | — | — | — | — | — | 1,224 | (100 | ) | |||||||||||||
Foreign exchange loss (gain) | 1,924 | 3,897 | (51 | ) | (942 | ) | 982 | 2,050 | (52 | ) | |||||||||||
Financial instruments loss (gain) | 4,768 | (1,447 | ) | 430 | 6,946 | 11,714 | (6,886 | ) | 270 | ||||||||||||
Interest expense | 7,375 | 3,331 | 121 | 5,495 | 12,870 | 6,426 | 100 | ||||||||||||||
73,887 | 47,107 | 57 | 62,120 | 136,007 | 79,728 | 71 | |||||||||||||||
Loss on sale | (292 | ) | (9,076 | ) | (97 | ) | — | (292 | ) | (9,076 | ) | (97 | ) | ||||||||
Interest income | 610 | 245 | 149 | 786 | 1,396 | 653 | 114 | ||||||||||||||
Income before income taxes | 48,296 | 6,490 | 644 | 43,632 | 91,928 | 38,057 | 142 | ||||||||||||||
Current income tax expense | 4,827 | 1,772 | 172 | 12,289 | 17,116 | 9,189 | 86 | ||||||||||||||
Deferred income tax expense | 23,169 | 11,525 | 101 | 13,482 | 36,651 | 22,904 | 60 | ||||||||||||||
27,996 | 13,297 | 111 | 25,771 | 53,767 | 32,093 | 68 | |||||||||||||||
Net income (loss) | $ | 20,300 | $ | (6,807 | ) | 398 | $ | 17,861 | $ | 38,161 | $ | 5,964 | 540 |
Sales Volumes (NAR) | |||||||||||||||||||||
Total sales volumes, BOEPD | 27,902 | 26,283 | 6 | 27,203 | 27,555 | 25,551 | 8 | ||||||||||||||
Average Prices | |||||||||||||||||||||
Oil and NGL's per bbl | $ | 64.50 | $ | 40.44 | 59 | $ | 56.63 | $ | 60.64 | $ | 41.65 | 46 | |||||||||
Natural gas per Mcf | $ | 2.26 | $ | 2.52 | (10 | ) | $ | 2.91 | $ | 2.67 | $ | 1.91 | 40 | ||||||||
Brent Price per bbl | $ | 74.90 | $ | 50.92 | 47 | $ | 67.18 | $ | 71.04 | $ | 52.79 | 35 | |||||||||
Consolidated Results of Operations per BOE Sales Volumes NAR | |||||||||||||||||||||
Oil and natural gas sales | $ | 64.37 | $ | 40.19 | 60 | $ | 56.46 | $ | 60.49 | $ | 41.25 | 47 | |||||||||
Operating expenses | 13.81 | 11.38 | 21 | 10.73 | 12.30 | 11.06 | 11 | ||||||||||||||
Transportation expenses | 2.57 | 2.71 | (5 | ) | 2.86 | 2.71 | 2.90 | (7 | ) | ||||||||||||
Operating netback(1) | 47.99 | 26.10 | 84 | 42.87 | 45.48 | 27.29 | 67 | ||||||||||||||
DD&A expenses | 18.36 | 13.30 | 38 | 16.12 | 17.26 | 12.69 | 36 | ||||||||||||||
G&A expenses before stock-based compensation | 2.60 | 3.18 | (18 | ) | 3.26 | 2.92 | 3.28 | (11 | ) | ||||||||||||
G&A stock-based compensation expense | 2.60 | 0.80 | 225 | 1.30 | 1.96 | 0.66 | 197 | ||||||||||||||
Equity tax | — | — | — | — | — | 0.26 | (100 | ) | |||||||||||||
Foreign exchange loss (gain) | 0.76 | 1.63 | (53 | ) | (0.38 | ) | 0.20 | 0.44 | (55 | ) | |||||||||||
Financial instruments loss (gain) | 1.88 | (0.60 | ) | 413 | 2.84 | 2.35 | (1.49 | ) | 258 | ||||||||||||
Interest expense | 2.90 | 1.39 | 109 | 2.24 | 2.58 | 1.39 | 86 | ||||||||||||||
29.10 | 19.70 | 48 | 25.38 | 27.27 | 17.23 | 58 | |||||||||||||||
Loss on sale | (0.12 | ) | (3.79 | ) | (97 | ) | — | (0.06 | ) | (1.96 | ) | (97 | ) | ||||||||
Interest income | 0.24 | 0.10 | 140 | 0.32 | 0.28 | 0.14 | 100 | ||||||||||||||
Income before income taxes | 19.01 | 2.71 | 601 | 17.81 | 18.43 | 8.24 | 124 | ||||||||||||||
Current income tax expense | 1.90 | 0.74 | 157 | 5.02 | 3.43 | 1.99 | 72 | ||||||||||||||
Deferred income tax expense | 9.12 | 4.82 | 89 | 5.51 | 7.35 | 4.95 | 48 | ||||||||||||||
11.02 | 5.56 | 98 | 10.53 | 10.78 | 6.94 | 55 | |||||||||||||||
Net income (loss) | $ | 7.99 | $ | (2.85 | ) | 380 | $ | 7.28 | $ | 7.65 | $ | 1.30 | 488 |
Three Months Ended June 30, 2018 | Three Months Ended June 30, 2017 | ||||||||
Average Daily Volumes (BOEPD) | Total | Colombia | Brazil | Total | |||||
Working Interest Production Before Royalties | 35,400 | 30,098 | 1,339 | 31,437 | |||||
Royalties | (7,202 | ) | (4,819 | ) | (195 | ) | (5,014 | ) | |
Production NAR | 28,198 | 25,279 | 1,144 | 26,423 | |||||
(Increase) Decrease in Inventory | (296 | ) | (147 | ) | 7 | (140 | ) | ||
Sales | 27,902 | 25,132 | 1,151 | 26,283 | |||||
Royalties, % of Working Interest Production Before Royalties | 20 | % | 16 | % | 15 | % | 16 | % | |
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | ||||||||
Average Daily Volumes (BOEPD) | Total | Colombia | Brazil | Total | |||||
Working Interest Production Before Royalties | 35,239 | 29,294 | 1,369 | 30,663 | |||||
Royalties | (7,045 | ) | (4,843 | ) | (208 | ) | (5,051 | ) | |
Production NAR | 28,194 | 24,451 | 1,161 | 25,612 | |||||
(Increase) Decrease in Inventory | (639 | ) | (70 | ) | 9 | (61 | ) | ||
Sales | 27,555 | 24,381 | 1,170 | 25,551 | |||||
Royalties, % of Working Interest Production Before Royalties | 20 | % | 17 | % | 15 | % | 16 | % |
Three Months Ended June 30, 2018 | Three Months Ended June 30, 2017 | ||||||||||||
(Thousands of U.S. Dollars) | Total | Colombia | Brazil | Total | |||||||||
Oil and Natural Gas Sales | $ | 163,446 | $ | 91,905 | $ | 4,223 | $ | 96,128 | |||||
Transportation Expenses | (6,522 | ) | (6,319 | ) | (173 | ) | (6,492 | ) | |||||
156,924 | 85,586 | 4,050 | 89,636 | ||||||||||
Operating Expenses | (35,059 | ) | (26,192 | ) | (1,016 | ) | (27,208 | ) | |||||
Operating Netback(1) | $ | 121,865 | $ | 59,394 | $ | 3,034 | $ | 62,428 | |||||
U.S. Dollars Per BOE Sales Volumes NAR | |||||||||||||
Brent | $ | 74.90 | $ | 50.92 | $ | 50.92 | $ | 50.92 | |||||
Vasconia, Quality and Transportation Discounts | (10.53 | ) | (10.74 | ) | (10.62 | ) | (10.73 | ) | |||||
Average Realized Price | 64.37 | 40.18 | 40.30 | 40.19 | |||||||||
Transportation Expenses | (2.57 | ) | (2.76 | ) | (1.65 | ) | (2.71 | ) | |||||
Average Realized Price Net of Transportation Expenses | 61.80 | 37.42 | 38.65 | 37.48 | |||||||||
Operating Expenses | (13.81 | ) | (11.45 | ) | (9.69 | ) | (11.38 | ) | |||||
Operating Netback(1) | $ | 47.99 | $ | 25.97 | $ | 28.96 | $ | 26.10 | |||||
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | ||||||||||||
(Thousands of U.S. Dollars) | Total | Colombia | Brazil | Total | |||||||||
Oil and Natural Gas Sales | $ | 301,674 | $ | 182,369 | $ | 8,418 | $ | 190,787 | |||||
Transportation Expenses | (13,519 | ) | (13,084 | ) | (350 | ) | (13,434 | ) | |||||
288,155 | 169,285 | 8,068 | 177,353 | ||||||||||
Operating Expenses | (61,324 | ) | (49,348 | ) | (1,797 | ) | (51,145 | ) | |||||
Operating Netback(1) | $ | 226,831 | $ | 119,937 | $ | 6,271 | $ | 126,208 | |||||
U.S. Dollars Per BOE Sales Volumes NAR | |||||||||||||
Brent | $ | 71.04 | $ | 52.79 | $ | 52.79 | $ | 52.79 | |||||
Vasconia, Quality and Transportation Discounts | (10.55 | ) | (11.46 | ) | (13.03 | ) | (11.54 | ) | |||||
Average Realized Price | 60.49 | 41.33 | 39.76 | 41.25 | |||||||||
Transportation Expenses | (2.71 | ) | (2.96 | ) | (1.65 | ) | (2.90 | ) | |||||
Average Realized Price Net of Transportation Expenses | 57.78 | 38.37 | 38.11 | 38.35 | |||||||||
Operating Expenses | (12.30 | ) | (11.18 | ) | (8.49 | ) | (11.06 | ) | |||||
Operating Netback(1) | $ | 45.48 | $ | 27.19 | $ | 29.62 | $ | 27.29 |
Second Quarter 2018 Compared with First Quarter 2018 | Second Quarter 2018 Compared with Second Quarter 2017 | Six Months Ended, June 30, 2018 Compared with Six Months Ended June 30, 2017 | |||||||
Oil and natural gas sales for the comparative period | $ | 138,228 | $ | 96,128 | $ | 190,787 | |||
Realized sales price increase effect | 20,096 | 61,401 | 95,920 | ||||||
Sales volume increase effect | 5,122 | 5,917 | 14,967 | ||||||
Oil and natural gas sales for period ended June 30, 2018 | $ | 163,446 | $ | 163,446 | $ | 301,674 |
Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | ||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||
Volume transported through pipeline | 9 | % | 20 | % | 9 | % | 9 | % | 22 | % |
Volume sold at wellhead | 41 | % | 52 | % | 52 | % | 42 | % | 52 | % |
Volume not sold at wellhead, trucking | 50 | % | 28 | % | 39 | % | 49 | % | 26 | % |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
U.S. Dollars Per BOE Sales Volumes NAR | Second Quarter 2018 Compared with First Quarter 2018 | Second Quarter 2018 Compared with Second Quarter 2017 | Six Months Ended, June 30, 2018 Compared with Six Months Ended June 30, 2017 | ||||||
Average realized price net of transportation expenses for the comparative period | $ | 53.60 | $ | 37.42 | $ | 38.37 | |||
Increase in benchmark prices | 7.72 | $ | 23.98 | 18.25 | |||||
Decrease in quality and transportation discounts | 0.19 | 0.21 | 0.91 | ||||||
Decrease in transportation expenses | 0.29 | 0.19 | 0.25 | ||||||
Average realized price net of transportation expenses for the period ended June 30, 2018 | $ | 61.80 | $ | 61.80 | $ | 57.78 |
Three Months Ended June 30, 2018 | Three Months Ended June 30, 2017 | ||||||||||||
DD&A expenses, thousands of U.S. Dollars | DD&A expenses, U.S. Dollars Per BOE | DD&A expenses, thousands of U.S. Dollars | DD&A expenses, U.S. Dollars Per BOE | ||||||||||
Colombia | $ | 46,065 | $ | 18.14 | $ | 30,130 | $ | 13.17 | |||||
Brazil | — | — | 1,050 | 10.02 | |||||||||
Peru | — | — | 412 | — | |||||||||
Corporate | 542 | — | 221 | — | |||||||||
$ | 46,607 | $ | 18.36 | $ | 31,813 | $ | 13.30 | ||||||
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | ||||||||||||
DD&A expenses, thousands of U.S. Dollars | DD&A expenses, U.S. Dollars Per BOE | DD&A expenses, thousands of U.S. Dollars | DD&A expenses, U.S. Dollars Per BOE | ||||||||||
Colombia | $ | 84,564 | $ | 16.96 | $ | 55,065 | $ | 12.48 | |||||
Brazil | — | — | 2,263 | 10.69 | |||||||||
Peru | — | — | 921 | — | |||||||||
Corporate | 1,504 | — | 440 | — | |||||||||
$ | 86,068 | $ | 17.26 | $ | 58,689 | $ | 12.69 |
Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | % Change | 2018 | 2018 | 2017 | % Change | ||||||||||||||
G&A Expenses Before Stock-Based Compensation | $ | 6,604 | $ | 7,610 | (13 | ) | $ | 7,982 | $ | 14,586 | $ | 15,173 | (4 | ) | |||||||
G&A Stock-Based Compensation | 6,609 | 1,903 | 247 | 3,178 | 9,787 | 3,052 | 221 | ||||||||||||||
G&A Expenses, Including Stock-Based Compensation | $ | 13,213 | $ | 9,513 | 39 | $ | 11,160 | $ | 24,373 | $ | 18,225 | 34 | |||||||||
U.S. Dollars Per BOE Sales Volumes NAR | |||||||||||||||||||||
G&A Expenses Before Stock-Based Compensation | $ | 2.60 | $ | 3.18 | (18 | ) | $ | 3.26 | $ | 2.92 | $ | 3.28 | (11 | ) | |||||||
G&A Stock-Based Compensation | 2.60 | 0.80 | 225 | 1.30 | 1.96 | 0.66 | 197 | ||||||||||||||
G&A Expenses, Including Stock-Based Compensation | $ | 5.20 | $ | 3.98 | 31 | $ | 4.56 | $ | 4.88 | $ | 3.94 | 24 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||
2018 | 2017 | 2018 | 2017 | ||
Change in the U.S. dollar against the Colombian peso | strengthened by | strengthened by | weakened by | strengthened by | |
5% | 6% | 2% | 1% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||
Commodity price derivative loss (gain) | $ | 14,461 | $ | (1,545 | ) | $ | 19,455 | $ | (6,247 | ) | |||
Foreign currency derivatives loss (gain) | 1,945 | 98 | (2,024 | ) | (639 | ) | |||||||
Investment gain | (11,638 | ) | — | (5,717 | ) | — | |||||||
$ | 4,768 | $ | (1,447 | ) | $ | 11,714 | $ | (6,886 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Income before income tax | $ | 48,296 | $ | 6,490 | $ | 91,928 | $ | 38,057 | |||||||
Current income tax expense | $ | 4,827 | $ | 1,772 | $ | 17,116 | $ | 9,189 | |||||||
Deferred income tax expense | 23,169 | 11,525 | 36,651 | 22,904 | |||||||||||
Total income tax expense | $ | 27,996 | $ | 13,297 | $ | 53,767 | $ | 32,093 | |||||||
Effective tax rate | 58 | % | 84 | % |
(Thousands of U.S. Dollars) | Second Quarter 2018 Compared with First Quarter 2018 | % change | Second Quarter 2018 Compared with Second Quarter 2017 | % change | Six Months Ended, June 30, 2018 Compared with Six Months Ended June 30, 2017 | % change | |||||||||
Net income (loss) for the comparative period | $ | 17,861 | $ | (6,807 | ) | $ | 5,964 | ||||||||
Increase (decrease) due to: | |||||||||||||||
Prices | 20,096 | 61,401 | 95,920 | ||||||||||||
Sales volumes | 5,122 | 5,917 | 14,967 | ||||||||||||
Expenses: | |||||||||||||||
Operating | (8,794 | ) | (7,851 | ) | (10,179 | ) | |||||||||
Transportation | 475 | (30 | ) | (85 | ) | ||||||||||
Cash G&A and RSU settlements, excluding stock-based compensation expense | 1,411 | 1,156 | 1,012 | ||||||||||||
Interest, net of amortization of debt issuance costs | (1,707 | ) | (3,821 | ) | (6,156 | ) | |||||||||
Realized foreign exchange | (240 | ) | (338 | ) | 531 | ||||||||||
Settlement of financial instruments | (3,849 | ) | (10,114 | ) | (16,699 | ) | |||||||||
Current taxes | 7,462 | (3,055 | ) | (7,927 | ) | ||||||||||
Equity tax | — | — | 1,224 | ||||||||||||
Other | (175 | ) | 364 | 743 | |||||||||||
Net change in funds flow from operations(1) from comparative period | 19,801 | 43,629 | 73,351 | ||||||||||||
Expenses: | |||||||||||||||
Depletion, depreciation and accretion | (7,146 | ) | (14,794 | ) | (27,379 | ) | |||||||||
Deferred tax | (9,687 | ) | (11,644 | ) | (13,747 | ) | |||||||||
Amortization of debt issuance costs | (173 | ) | (223 | ) | (288 | ) | |||||||||
Stock-based compensation, net of RSU settlement | (3,464 | ) | (4,856 | ) | (7,160 | ) | |||||||||
Financial instruments gain or loss, net of financial instruments settlements | 6,027 | 3,899 | (1,901 | ) | |||||||||||
Unrealized foreign exchange | (2,627 | ) | 2,312 | 537 | |||||||||||
Loss on sale | (292 | ) | 8,784 | 8,784 | |||||||||||
Net change in net income or loss | 2,439 | 27,107 | 32,197 | ||||||||||||
Net income for the current period | $ | 20,300 | 14 | % | $ | 20,300 | 398 | % | $ | 38,161 | 540 | % |
• | Ayombero appraisal drilling of 3 wells based on the success of the Ayombero-1 well; |
• | Costayaco development drilling in legacy reservoirs and 1 additional water injection well; and |
• | 2 Acordionero development wells accelerated from 2019 into fourth quarter 2018. |
Number of Wells (Gross) | Number of Wells (Net) | 2018 Capital Budget ($ million) | ||||||
Colombia | ||||||||
Development | 22-24 | 21-22 | $130-135 | |||||
Exploration | 8-11 | 7-10 | 80-90 | |||||
Facilities | — | — | 75-80 | |||||
Seismic and Studies | — | — | 20 | |||||
30-35 | 28-32 | $305-325 |
(Thousands of U.S. Dollars) | |||
Colombia: | |||
Exploration | $ | 18,301 | |
Development: | |||
Facilities | 16,957 | ||
Drilling and Completions | 41,696 | ||
Other | 6,803 | ||
83,757 | |||
Corporate | 637 | ||
$ | 84,394 |
Number of wells (Gross) | Number of wells (Net) | |||
Development | 5 | 5.0 | ||
Exploration | 1 | 0.5 | ||
Total Colombia | 6 | 5.5 |
As at | ||||||||||
(Thousands of U.S. Dollars) | June 30, 2018 | % Change | December 31, 2017 | |||||||
Cash and Cash Equivalents | $ | 125,807 | 921 | $ | 12,326 | |||||
Current Restricted Cash and Cash Equivalents | $ | 2,836 | (76 | ) | $ | 11,787 | ||||
Revolving Credit Facility | $ | — | (100 | ) | $ | 148,000 | ||||
Senior Notes | $ | 300,000 | — | $ | — | |||||
Convertible Notes | $ | 115,000 | — | $ | 115,000 |
Period and type of instrument | Volume, bopd | Reference | Sold Swap ($/bbl, Weighted Average) | Purchased Call ($/bbl, Weighted Average) | |||||
Swaps: July 1, to December 31, 2018 | 5,000 | ICE Brent | $ | 55.90 | n/a | ||||
Participating Swaps: July 1, to December 31, 2018 | 5,000 | ICE Brent | $ | 52.50 | $ | 56.11 |
Period and type of instrument | Amount Hedged (Millions COP) | U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars)(1) | Reference | Purchased Call (COP) | Sold Put (COP, Weighted Average) | ||||
Collars: July 1, 2018 to December 31, 2018 | 87,000 | 29,685 | COP | 3,000 | 3,107 |
Six Months Ended June 30, | ||||||
2018 | 2017 | |||||
Sources of cash and cash equivalents: | ||||||
Net income | $ | 38,161 | $ | 5,964 | ||
Adjustments to reconcile net income to EBITDA(1) and funds flow from operations(1) | ||||||
DD&A expenses | 86,068 | 58,689 | ||||
Interest expense | 12,870 | 6,426 | ||||
Income tax expense | 53,767 | 32,093 | ||||
EBITDA | 190,866 | 103,172 | ||||
Current income tax expense | (17,116 | ) | (9,189 | ) | ||
Stock-based compensation expense | 10,202 | 3,183 | ||||
Contractual interest and other financing expenses | (11,357 | ) | (5,201 | ) | ||
Cash settlement of RSUs | (360 | ) | (501 | ) | ||
Unrealized foreign exchange loss | 539 | 1,076 | ||||
Financial instruments loss (gain) | 11,714 | (6,886 | ) | |||
Cash settlement of financial instruments | (15,483 | ) | 1,216 | |||
Loss on sale | 292 | 9,076 | ||||
Funds flow from operations | 169,297 | 95,946 | ||||
Proceeds from bank debt, net of issuance costs | 4,988 | 98,304 | ||||
Proceeds from issuance of Senior Notes, net of issuance costs | 288,087 | — | ||||
Proceeds from issuance of shares | 845 | — | ||||
Cash deposit received for letter of credit arrangements upon sale of Brazil business unit | — | 4,700 | ||||
Deposit received for sale of Brazil business unit | — | 34,481 | ||||
463,217 | 233,431 | |||||
Uses of cash and cash equivalents: | ||||||
Additions to property, plant and equipment | (157,088 | ) | (104,025 | ) | ||
Additions to property, plant and equipment - property acquisitions | (3,100 | ) | (30,410 | ) | ||
Repayment of bank debt | (153,000 | ) | (33,000 | ) | ||
Repurchase of shares of Common Stock | (1,208 | ) | (10,000 | ) | ||
Net changes in assets and liabilities from operating activities | (37,994 | ) | (28,112 | ) | ||
Changes in non-cash investing working capital | (6,142 | ) | (627 | ) | ||
Settlement of asset retirement obligations | (369 | ) | (298 | ) | ||
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents | (69 | ) | (1,175 | ) | ||
(358,970 | ) | (207,647 | ) | |||
Net increase in cash and cash equivalents and restricted cash and cash equivalents | $ | 104,247 | $ | 25,784 |
(a) Total Number of Shares Purchased(1) | (b) Average Price Paid per Share (2) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (3) | |||||
April 1-30, 2018 | — | — | — | 18,804,820 | ||||
May 1-31, 2018 | 4,500 | 2.98 | 4,500 | 18,800,320 | ||||
June 1- 30, 2018 | — | — | — | 18,800,320 | ||||
4,500 | 2.98 | 4,500 | 18,800,320 |
Exhibit No. | Description | Reference | |
2.1 | Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018). | ||
3.1 | Incorporated by reference to Exhibit 3.3 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018). | ||
3.2 | Incorporated by reference to Exhibit 3.4 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018). | ||
3.3 | Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on July 9, 2018 (SEC File No. 001-34018). | ||
4.1 | Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on April 6, 2016 (SEC File No. 001-34018). | ||
4.2 | Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on April 6, 2016 (SEC File No. 001-34018). | ||
4.3 | Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on July 14, 2016 (SEC File No. 001-34018). | ||
4.4 | Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed with the SEC on July 14, 2016 (SEC File No. 001-34018). | ||
4.5 | Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on February 9, 2018 (SEC File No. 001-34018). | ||
4.6 | Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on February 16, 2018 (SEC File No. 001-34018). | ||
4.7 | Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on February 16, 2018 (SEC File No. 001-34018). | ||
10.1 | Filed herewith. | ||
31.1 | Filed herewith. | ||
31.2 | Filed herewith. | ||
32.1 | Furnished herewith. |
Date: August 2, 2018 | /s/ Gary S. Guidry | |
By: Gary S. Guidry | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
Date: August 2, 2018 | /s/ Ryan Ellson | |
By: Ryan Ellson | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
BORROWER: | GRAN TIERRA ENERGY INTERNATIONAL HOLDINGS LTD. |
PARENT: | GRAN TIERRA ENERGY INC. |
ROYAL BANK OF CANADA, |
Date: August 2, 2018 | /s/ Gary S. Guidry |
By: Gary S. Guidry | |
President and Chief Executive Officer | |
(Principal Executive Officer) |
Date: August 2, 2018 | /s/ Ryan Ellson |
By: Ryan Ellson | |
Chief Financial Officer | |
(Principal Financial and Accounting Officer) |
/s/ Gary S. Guidry | /s/ Ryan Ellson | |
By: Gary S. Guidry | By: Ryan Ellson | |
President and Chief Executive Officer | Chief Financial Officer |
Document And Entity Information - shares |
6 Months Ended | |
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Jun. 30, 2018 |
Jul. 30, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GRAN TIERRA ENERGY INC. | |
Entity Central Index Key | 0001273441 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 391,175,023 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Statement [Abstract] | ||||
OIL AND NATURAL GAS SALES (Notes 3 and 7) | $ 163,446 | $ 96,128 | $ 301,674 | $ 190,787 |
EXPENSES | ||||
Operating | 35,059 | 27,208 | 61,324 | 51,145 |
Transportation | 6,522 | 6,492 | 13,519 | 13,434 |
Depletion, depreciation and accretion (Note 3) | 46,607 | 31,813 | 86,068 | 58,689 |
General and administrative (Note 3) | 13,213 | 9,513 | 24,373 | 18,225 |
Equity tax | 0 | 0 | 0 | 1,224 |
Foreign exchange loss | 1,924 | 3,897 | 982 | 2,050 |
Financial instruments loss (gain) (Note 10) | 4,768 | (1,447) | 11,714 | (6,886) |
Interest expense (Note 5) | 7,375 | 3,331 | 12,870 | 6,426 |
EXPENSES | 115,468 | 80,807 | 210,850 | 144,307 |
LOSS ON SALE | (292) | (9,076) | (292) | (9,076) |
INTEREST INCOME | 610 | 245 | 1,396 | 653 |
INCOME BEFORE INCOME TAXES (Note 3) | 48,296 | 6,490 | 91,928 | 38,057 |
INCOME TAX EXPENSE | ||||
Current (Note 8) | 4,827 | 1,772 | 17,116 | 9,189 |
Deferred (Note 8) | 23,169 | 11,525 | 36,651 | 22,904 |
INCOME TAX EXPENSE | 27,996 | 13,297 | 53,767 | 32,093 |
NET AND COMPREHENSIVE INCOME (LOSS) | $ 20,300 | $ (6,807) | $ 38,161 | $ 5,964 |
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED (in dollars per share) | $ 0.05 | $ (0.02) | $ 0.10 | $ 0.01 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 6) (in shares) | 391,054,204 | 398,585,290 | 391,173,460 | 398,795,023 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 6) (in shares) | 427,455,092 | 398,585,290 | 427,242,014 | 398,816,091 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common Stock, shares issued (in shares) | 390,017,518 | 385,191,042 |
Common Stock, shares outstanding (in shares) | 390,017,518 | 385,191,042 |
Exchangeable shares, shares issued (in shares) | 1,135,239 | 6,111,665 |
Exchangeable shares, shares outstanding (in shares) | 1,135,239 | 6,111,665 |
Common Stock and exchangeable shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Description of Business |
6 Months Ended |
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Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Gran Tierra Energy Inc., a Delaware corporation (the “Company” or “Gran Tierra”), is a publicly traded company focused on oil and natural gas exploration and production in Colombia. |
Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies These interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The information furnished herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of results for the interim periods. The note disclosure requirements of annual consolidated financial statements provide additional disclosures to that required for interim unaudited condensed consolidated financial statements. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended December 31, 2017, included in the Company’s 2017 Annual Report on Form 10-K, filed with the SEC on February 27, 2018. The Company’s significant accounting policies are described in Note 2 of the consolidated financial statements which are included in the Company’s 2017 Annual Report on Form 10-K and are the same policies followed in these interim unaudited condensed consolidated financial statements, except as noted below. The Company has evaluated all subsequent events through to the date these interim unaudited condensed consolidated financial statements were issued. Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers The Company adopted Accounting Standard Codification ("ASC") 606 Revenue from Contracts with Customers with a date of initial application of January 1, 2018 in accordance with the modified retrospective approach without using the practical expedients. Except for providing enhanced disclosures about the Company's revenue transactions, the application of ASC 606 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. a) Significant Accounting Policy The Company's revenue relates to oil and natural gas sales in Colombia. The Company recognizes revenue when it transfers control of the product to a customer. This generally occurs at the time the customer obtains legal title to the product and when it is physically transferred to the delivery point agreed with the customer. Payment terms are generally within three business days following delivery of an invoice to the customer. Revenue is recognized based on the consideration specified in contracts with customers. Revenue represents the Company's share and is recorded net of royalty payments to governments and other mineral interest owners. The Company evaluates its arrangement with third parties and partners to determine if the Company acts as a principal or an agent. In making this evaluation, management considers if the Company obtains control of the product delivered, which is indicated by the Company having the primary responsibility for the delivery of the product, having ability to establish prices or having inventory risk. If the Company acts in the capacity of an agent rather than as a principal in transaction, then the revenue is recognized on a net-basis, only reflecting the fee realized by the Company from the transaction. Tariffs, tolls and fees charged to other entities for use of pipelines owned by the Company are evaluated by management to determine if these originate from contracts with customers or from incidental arrangements. In the comparative period, revenue from the production of oil and natural gas was recognized when the customer took title and assumed the risks and rewards of ownership, prices were fixed or determinable, the sale was evidenced by a contract and collection of the revenue was reasonably assured. b) Significant Judgments When determining if the Company acted as a principal or as an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considers detailed criteria for revenue recognition set out in ASC 606. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2016-01 addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 was effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. The implementation of this update did not impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. In February 2018, the FASB issued ASU 2018-03, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2018-03 clarified certain aspects of the guidance in ASU 2016-01. ASU 2018-03 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those annual reporting periods beginning after June 15, 2018. Early adoption is permitted upon adoption of ASU 2016-01.The amendments should be applied retrospectively with a cumulative-effect adjustment to the effective date of ASU 2016-01. The Company early adopted this update on January 1, 2018. The implementation of this update did not impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. Recently Issued but Not Yet Adopted Accounting Pronouncements Leases In January 2018, the FASB issued ASU 2018-01, "Land Easement Practical Expedient for Transition to Topic 842". ASU 2018-01 provides an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing or expired land easements that were not previously accounted for as leases under Topic 840. The effective date and transition requirements for the amendment is the same as the effective date and transition requirements in Update 2016-02. The Company is planning to adopt ASU 2018-01 upon transition to ASU 2016-01 "Leases". The Company is finalizing an assessment of its contract inventory using certain practical expedients to determine which contracts meet the definition of a lease. The next steps will include classifying leases as either financing or operating, establishing interest rates and determining the value of right-of-use lease assets and lease liabilities. The Company expects to apply the guidance of ASU 2016-02 using a modified retrospective transition approach. |
Segment and Geographic Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Reporting | Segment and Geographic Reporting The Company is primarily engaged in the exploration and production of oil and natural gas. Commencing 2018, the Company has one reportable segment based on geographic organization, Colombia. Prior to the sale of the Company's Brazil business unit effective June 30, 2017 and Peru business unit effective December 18, 2017, Brazil and Peru were reportable segments. The "All Other" category represents the Company’s corporate activities, Mexico activities and Brazil and Peru activities until the date of sale. The following tables present information on the Company’s reportable segments and other activities:
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Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment
The Company used an average Brent price of $62.58 per bbl for the purposes of the June 30, 2018 ceiling test calculations (March 31, 2018 - $56.92, December 31, 2017 - $54.19). |
Debt and Debt Issuance Costs |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company's debt at June 30, 2018 and December 31, 2017 was as follows:
Senior Notes On February 15, 2018, Gran Tierra Energy International Holdings Ltd. ("GTEIH"), an indirect, wholly owned subsidiary of the Company, issued $300 million of 6.25% Senior Notes due 2025 (the "Senior Notes"). The Senior Notes are fully and unconditionally guaranteed by the Company and certain subsidiaries of the Company that guarantee its revolving credit facility. Net proceeds from the sale of the Senior Notes were $288.1 million, after deducting the initial purchasers' discounts and commission and the offering expenses payable by the Company. The Senior Notes bear interest at a rate of 6.25% per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2018. The Senior Notes will mature on February 15, 2025, unless earlier redeemed or repurchased. Before February 15, 2022, GTEIH may, at its option, redeem all or a portion of the Senior Notes at 100% of the principal amount plus accrued and unpaid interest and a make-whole premium. Thereafter, the Company may redeem all or a portion of the Senior Notes plus accrued and unpaid interest applicable to the date of the redemption at the following redemption prices: 2022 - 103.125%; 2023 - 101.563%; 2024 and thereafter - 100%. Interest Expense The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations:
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Share Capital |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital | Share Capital On May 1, 2018, Gran Tierra Exchangeco Inc., a subsidiary of the Company, announced that it had established a redemption date of July 5, 2018 in respect of all of its outstanding exchangeable shares. Effective July 5, 2018, all remaining outstanding exchangeable shares of record on July 4, 2018 were acquired for purchase consideration of one share of Gran Tierra common stock, and on July 9, 2018, the Company retired and canceled one share of Special A Voting Stock and one share of Special B Voting Stock, which held voting rights in connection with those exchangeable shares. As a result, no shares of Special A Voting Stock and Special B Voting Stock remain outstanding.
On March 7, 2018, the Company announced that it intended to implement a share repurchase program (the “2018 Program”) through the facilities of the Toronto Stock Exchange ("TSX") and eligible alternative trading platforms in Canada. Under the 2018 Program, the Company is able to purchase at prevailing market prices up to 19,269,732 shares of Common Stock, representing approximately 5.00% of the issued and outstanding shares of Common Stock as of March 8, 2018. Shares purchased pursuant to 2018 Program will be canceled. The 2018 Program will expire on March 11, 2019, or earlier if the 5.00% share maximum is reached. Equity Compensation Awards The following table provides information about performance stock units (“PSUs”), deferred share units (“DSUs”), restricted stock units (“RSUs”) and stock option activity for the six months ended June 30, 2018:
Stock-based compensation expense for the three and six months ended June 30, 2018, was $6.9 million and $10.2 million, respectively, and was primarily recorded in general and administrative ("G&A") expenses (three and six months ended June 30, 2017 - $2.0 million and $3.2 million, respectively). At June 30, 2018, there was $23.0 million (December 31, 2017 - $13.7 million) of unrecognized compensation cost related to unvested PSUs and stock options which is expected to be recognized over a weighted average period of 1.8 years. Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of Common Stock and exchangeable shares issued and outstanding during each period. Diluted net income per share is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock awards were vested at the end of the applicable period plus potentially issuable shares on conversion of the convertible notes. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. Weighted Average Shares Outstanding
For the three months ended June 30, 2018, 5,240,018 options, on a weighted average basis, (three months ended June 30, 2017 - 10,634,157 options) were excluded from the diluted income (loss) per share calculation as the options were anti-dilutive. For the six months ended June 30, 2018, 7,385,714 options, on a weighted average basis, (six months ended June 30, 2017 - 9,616,800 options) were excluded from the diluted income per share calculation as the options were anti-dilutive. Shares issuable upon conversion of the 5.00% Convertible Notes due 2021 ("Convertible Notes") were dilutive and included in the diluted income per share calculation. For the three and six months ended June 30, 2018, the numerator used in the computation of diluted earnings per share included net income for the period adjusted for interest on convertible debentures and amortization of debt issuance costs of $1.7 million and $3.4 million, respectively. |
Revenue |
6 Months Ended |
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Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Most of the Company's revenues are from oil sales at prices which reflect the blended prices received upon shipment by the purchaser at defined sales points or are defined by contract relative to ICE Brent and adjusted for Vasconia crude, quality and transportation discounts each month. For the three and six months ended June 30, 2018, 100% (three and six months ended June 30, 2017 - 100%) of the Company's revenue resulted from oil sales. During the three and six months ended June 30, 2018, quality and transportation discounts were 14% and 15%, respectively, of the ICE Brent price (three and six months ended June 30, 2017 - 21% and 22%, respectively). During the three and six months ended June 30, 2018, the Company's production was sold primarily to three major customers in Colombia (three and six months ended June 30, 2017 - four). As at June 30, 2018, accounts receivable included $4.8 million of accrued sales revenue which related to June 2018 production (December 31, 2017 - $11.1 million which related to December 31, 2017 production). |
Taxes |
6 Months Ended |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The Company's effective tax rate was 58% in the six months ended June 30, 2018, compared with 84% in the comparative period in 2017. Current income tax expense was higher in the six months ended June 30, 2018, compared with the corresponding period in 2017, primarily as a result of higher taxable income in Colombia. The deferred income tax expense of $36.7 million for the six months ended June 30, 2018, was primarily due to excess tax depreciation compared with accounting depreciation in Colombia. For the six months ended June 30, 2018, the difference between the effective tax rate of 58% and the 21% U.S. statutory rate was primarily due to an increase to the impact of foreign taxes, valuation allowance, stock-based compensation, foreign currency translation and non-deductible third party royalty in Colombia. For the comparative period in 2017, the effective tax rate differed from the U.S. statutory rate of 35% primarily due to an increase in the valuation allowance, which was largely attributable to losses incurred in the United States, Brazil and Colombia, as well as the impact of a non-deductible third-party royalty in Colombia, foreign and local taxes, and stock-based compensation. These items were partially offset by foreign currency translation adjustments and other permanent differences. |
Contingencies |
6 Months Ended |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) (“ANH") and Gran Tierra are engaged in ongoing discussions regarding the interpretation of whether certain transportation and related costs are eligible to be deducted in the calculation of an additional royalty (the "HPR royalty"). Based on the Company's understanding of the ANH's position, the estimated compensation which would be payable if the ANH’s interpretation is correct could be up to $52.8 million as at June 30, 2018. At this time no amount has been accrued in the interim unaudited condensed consolidated financial statements as Gran Tierra does not consider it probable that a loss will be incurred. In addition to the above, the Company has a number of other lawsuits and claims pending. Although the outcome of these other lawsuits and disputes cannot be predicted with certainty, the Company believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs associated with these lawsuits and claims as they are incurred or become probable and determinable. Letters of credit and other credit support At June 30, 2018, the Company had provided letters of credit and other credit support totaling $69.8 million (December 31, 2017 - $76.0 million) as security relating to work commitment guarantees contained in exploration contracts and other capital or operating requirements. |
Financial Instruments and Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Financial Instruments At June 30, 2018, the Company’s financial instruments recognized in the balance sheet consisted of: cash and cash equivalents; restricted cash and cash equivalents; accounts receivable; investments; derivatives, accounts payable and accrued liabilities, long-term debt and equity compensation award liability. Fair Value Measurement The fair value of certain investments, derivatives and equity compensation awards (PSU and DSU) liabilities are remeasured at the estimated fair value at the end of each reporting period. The fair value of the short-term portion of the Company's investment in PetroTal Corp. ("PetroTal") (formerly Sterling Resources Ltd.) was estimated using quoted prices at June 30, 2018 and the foreign exchange rate at that time. The fair value of the long-term portion of the investment restricted by escrow conditions was estimated using observable and unobservable inputs; factors that were evaluated included quoted market prices, precedent comparable transactions, risk-free rate, measures of market risk volatility, estimates of the Company's and PetroTal's costs of capital and quotes from third parties. The fair value of commodity price and foreign currency derivatives is estimated based on various factors, including quoted market prices in active markets and quotes from third parties. The Company also performs an internal valuation to ensure the reasonableness of third party quotes. In consideration of counterparty credit risk, the Company assessed the possibility of whether the counterparty to the derivative would default by failing to make any contractually required payments. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. The fair value of the PSU liability was estimated based on option pricing model using inputs such as quoted market prices in an active market, and PSU performance factors. The fair value of the DSU liabilities was estimated based on quoted market prices in an active market. The fair value of the Company's investment in PetroTal, derivatives and PSU and DSU liabilities at June 30, 2018, and December 31, 2017, was as follows:
The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations:
Investment gain for the three and six months ended June 30, 2018, related to the fair value gain on the PetroTal shares Gran Tierra received or subscribed for in connection with the sale of its Peru business unit in December 2017. For the three and six months ended June 30, 2018, this investment gain was unrealized. Financial instruments not recorded at fair value include the Senior Notes and the Convertible Notes. At June 30, 2018, the carrying amounts of the Senior Notes and the Convertible Notes were $288.6 million and $111.5 million, respectively, which represented the aggregate principal amount less unamortized debt issuance costs, and the fair values were $282.0 million and $143.8 million, respectively. The fair value of long-term restricted cash and cash equivalents and the revolving credit facility approximated their carrying value because interest rates are variable and reflective of market rates. The fair values of other financial instruments approximate their carrying amounts due to the short-term maturity of these instruments. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets and liabilities and have the highest priority. Level 2 and 3 inputs are based on significant other observable inputs and significant unobservable inputs, respectively, and have lower priorities. The Company uses appropriate valuation techniques based on the available inputs to measure the fair values of assets and liabilities. At June 30, 2018, the fair value of the current portion of the investment and DSU liability was determined using Level 1 inputs, the fair value of derivatives and PSUs was determined using Level 2 inputs and the fair value of the long-term portion of the investment restricted by escrow conditions was determined using Level 3 inputs. The table below presents the fair value of the long-term portion of the investment:
The Company uses available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s Senior Notes, Convertible Notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The disclosure above regarding the fair value of the Convertible Notes was determined using Level 2 inputs based on the indicative pricing published by certain third-party services or trading levels of the Convertible Notes, which are not listed on any securities exchange or quoted on an inter-dealer automated quotation system. The disclosure in the paragraph above regarding the fair value of cash and restricted cash and cash equivalents, revolving credit facility and Senior Notes was based on Level 1 inputs. The Company’s non-recurring fair value measurements include asset retirement obligations. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. The significant level 3 inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit-adjusted risk-free interest rate, inflation rates and estimated dates of abandonment. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. Commodity Price Derivatives The Company utilizes commodity price derivatives to manage the variability in cash flows associated with the forecasted sale of its oil production, reduce commodity price risk and provide a base level of cash flow in order to assure it can execute at least a portion of its capital spending. At June 30, 2018, the Company had outstanding commodity price derivative positions as follows:
The Company does not have any outstanding commodity price derivative positions relating to 2019. Foreign Currency Derivatives The Company utilizes foreign currency derivatives to manage the variability in cash flows associated with the Company's forecasted Colombian peso ("COP") denominated expenses. At June 30, 2018, the Company had outstanding foreign currency derivative positions as follows:
(1) At June 30, 2018 foreign exchange rate. |
Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows:
Net changes in assets and liabilities from operating activities were as follows:
The following table provides additional supplemental cash flow disclosures:
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Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers The Company adopted Accounting Standard Codification ("ASC") 606 Revenue from Contracts with Customers with a date of initial application of January 1, 2018 in accordance with the modified retrospective approach without using the practical expedients. Except for providing enhanced disclosures about the Company's revenue transactions, the application of ASC 606 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. a) Significant Accounting Policy The Company's revenue relates to oil and natural gas sales in Colombia. The Company recognizes revenue when it transfers control of the product to a customer. This generally occurs at the time the customer obtains legal title to the product and when it is physically transferred to the delivery point agreed with the customer. Payment terms are generally within three business days following delivery of an invoice to the customer. Revenue is recognized based on the consideration specified in contracts with customers. Revenue represents the Company's share and is recorded net of royalty payments to governments and other mineral interest owners. The Company evaluates its arrangement with third parties and partners to determine if the Company acts as a principal or an agent. In making this evaluation, management considers if the Company obtains control of the product delivered, which is indicated by the Company having the primary responsibility for the delivery of the product, having ability to establish prices or having inventory risk. If the Company acts in the capacity of an agent rather than as a principal in transaction, then the revenue is recognized on a net-basis, only reflecting the fee realized by the Company from the transaction. Tariffs, tolls and fees charged to other entities for use of pipelines owned by the Company are evaluated by management to determine if these originate from contracts with customers or from incidental arrangements. In the comparative period, revenue from the production of oil and natural gas was recognized when the customer took title and assumed the risks and rewards of ownership, prices were fixed or determinable, the sale was evidenced by a contract and collection of the revenue was reasonably assured. b) Significant Judgments When determining if the Company acted as a principal or as an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considers detailed criteria for revenue recognition set out in ASC 606. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2016-01 addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 was effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. The implementation of this update did not impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. In February 2018, the FASB issued ASU 2018-03, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2018-03 clarified certain aspects of the guidance in ASU 2016-01. ASU 2018-03 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those annual reporting periods beginning after June 15, 2018. Early adoption is permitted upon adoption of ASU 2016-01.The amendments should be applied retrospectively with a cumulative-effect adjustment to the effective date of ASU 2016-01. The Company early adopted this update on January 1, 2018. The implementation of this update did not impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. Recently Issued but Not Yet Adopted Accounting Pronouncements Leases In January 2018, the FASB issued ASU 2018-01, "Land Easement Practical Expedient for Transition to Topic 842". ASU 2018-01 provides an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing or expired land easements that were not previously accounted for as leases under Topic 840. The effective date and transition requirements for the amendment is the same as the effective date and transition requirements in Update 2016-02. The Company is planning to adopt ASU 2018-01 upon transition to ASU 2016-01 "Leases". The Company is finalizing an assessment of its contract inventory using certain practical expedients to determine which contracts meet the definition of a lease. The next steps will include classifying leases as either financing or operating, establishing interest rates and determining the value of right-of-use lease assets and lease liabilities. The Company expects to apply the guidance of ASU 2016-02 using a modified retrospective transition approach. |
Segment and Geographic Reporting (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information on Reportable Segments and Other Activities | The following tables present information on the Company’s reportable segments and other activities:
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Schedule of Long-lived Assets by Geographical Area |
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment |
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Debt and Debt Issuance Costs (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The Company's debt at June 30, 2018 and December 31, 2017 was as follows:
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Schedule of Interest Expense Recognized | The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations:
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Share Capital (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Common Stock |
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Schedule of PSU, DSU, RSU and Stock Option Activity | The following table provides information about performance stock units (“PSUs”), deferred share units (“DSUs”), restricted stock units (“RSUs”) and stock option activity for the six months ended June 30, 2018:
|
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Schedule of Weighted Average Shares Outstanding | Weighted Average Shares Outstanding
|
Financial Instruments and Fair Value Measurement (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities | The fair value of the Company's investment in PetroTal, derivatives and PSU and DSU liabilities at June 30, 2018, and December 31, 2017, was as follows:
|
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Schedule of Gains or Losses on Financial Instruments Recognized | The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations:
|
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below presents the fair value of the long-term portion of the investment:
|
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Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts | At June 30, 2018, the Company had outstanding commodity price derivative positions as follows:
|
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Schedule of Outstanding Foreign Currency Derivative Positions | At June 30, 2018, the Company had outstanding foreign currency derivative positions as follows:
(1) At June 30, 2018 foreign exchange rate. |
Supplemental Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Changes in Assets and Liabilities | Net changes in assets and liabilities from operating activities were as follows:
|
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Schedule of Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures:
|
Significant Accounting Policies (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018
day
| |
Accounting Policies [Abstract] | |
Payment terms, number of days | 3 |
Segment and Geographic Reporting - Schedule of Information on Reportable Segments and Other Activities (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
segment
|
Jun. 30, 2017
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Oil and natural gas sales | $ 163,446 | $ 96,128 | $ 301,674 | $ 190,787 |
Depletion, depreciation and accretion | 46,607 | 31,813 | 86,068 | 58,689 |
General and administrative expenses | 13,213 | 9,513 | 24,373 | 18,225 |
Income (loss) before income taxes | 48,296 | 6,490 | 91,928 | 38,057 |
Segment capital expenditures | 84,394 | 57,865 | 157,088 | 104,025 |
Reportable Segments | Colombia | ||||
Segment Reporting Information [Line Items] | ||||
Oil and natural gas sales | 163,446 | 91,905 | 301,674 | 182,369 |
Depletion, depreciation and accretion | 46,065 | 30,130 | 84,564 | 55,065 |
General and administrative expenses | 7,213 | 5,229 | 14,022 | 10,061 |
Income (loss) before income taxes | 51,029 | 21,598 | 112,180 | 58,742 |
Segment capital expenditures | 83,757 | 55,436 | 156,318 | 98,276 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Oil and natural gas sales | 0 | 4,223 | 0 | 8,418 |
Depletion, depreciation and accretion | 542 | 1,683 | 1,504 | 3,624 |
General and administrative expenses | 6,000 | 4,284 | 10,351 | 8,164 |
Income (loss) before income taxes | (2,733) | (15,108) | (20,252) | (20,685) |
Segment capital expenditures | $ 637 | $ 2,429 | $ 770 | $ 5,749 |
Segment and Geographic Reporting - Schedule of Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 1,178,196 | $ 1,099,224 |
Goodwill | 102,581 | 102,581 |
All other assets | 341,308 | 227,814 |
Total Assets | 1,622,085 | 1,429,619 |
Reportable Segments | Colombia | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,176,540 | 1,096,833 |
Goodwill | 102,581 | 102,581 |
All other assets | 175,563 | 176,980 |
Total Assets | 1,454,684 | 1,376,394 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,656 | 2,391 |
Goodwill | 0 | 0 |
All other assets | 165,745 | 50,834 |
Total Assets | $ 167,401 | $ 53,225 |
Property, Plant and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | $ 3,457,619 | $ 3,302,145 |
Accumulated depletion, depreciation and impairment | (2,279,423) | (2,202,921) |
Total Property, Plant and Equipment (Notes 3 and 4) | 1,178,196 | 1,099,224 |
Oil and natural gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 3,438,533 | 3,275,744 |
Proved | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 3,014,725 | 2,810,796 |
Unproved | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 423,808 | 464,948 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | $ 19,086 | $ 26,401 |
Property, Plant and Equipment - Property, Plant and Equipment (Narrative) (Details) - $ / bbl |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2018 |
|
Crude Oil and NGL | |||
Property, Plant and Equipment [Line Items] | |||
Average Brent price per bbl (in dollars per barrel) | 56.92 | 54.19 | 62.58 |
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Feb. 15, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (16,870) | $ (6,458) | |
Long-term debt | 398,130 | 256,542 | |
Convertible notes | |||
Debt Instrument [Line Items] | |||
Convertible senior notes and revolving credit facility | 115,000 | 115,000 | |
Revolving credit facility | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Convertible senior notes and revolving credit facility | 0 | 148,000 | |
Senior Notes Unsecured 6.25% | Senior notes | |||
Debt Instrument [Line Items] | |||
Convertible senior notes and revolving credit facility | $ 300,000 | $ 300,000 | $ 0 |
Debt and Debt Issuance Costs - Schedule of Interest Expense Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Debt Disclosure [Abstract] | ||||
Contractual interest and other financing expenses | $ 6,532 | $ 2,711 | $ 11,357 | $ 5,201 |
Amortization of debt issuance costs | 843 | 620 | 1,513 | 1,225 |
Total interest expense recognized | $ 7,375 | $ 3,331 | $ 12,870 | $ 6,426 |
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 23.0 | $ 23.0 | $ 13.7 | ||
Weighted average period for recognition | 1 year 10 months 5 days | ||||
General and administrative (G&A) expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 6.9 | $ 2.0 | $ 10.2 | $ 3.2 |
Share Capital - Schedule of Weighted Average Shares Outstanding (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Weighted average number of common and exchangeable shares outstanding (in shares) | 391,054,204 | 398,585,290 | 391,173,460 | 398,795,023 |
Shares issuable pursuant to stock options (in shares) | 4,894,633 | 0 | 2,420,509 | 625,631 |
Shares assumed to be purchased from proceeds of stock options (in shares) | (4,308,138) | 0 | (2,166,348) | (604,563) |
Shares issuable pursuant to convertible notes due 2021 | 35,814,393 | 0 | ||
Weighted average number of diluted common and exchangeable shares outstanding (in shares) | 427,455,092 | 398,585,290 | 427,242,014 | 398,816,091 |
Share Capital - Weighted Average Shares Outstanding (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Convertible debt | $ 1.7 | $ 1.7 | ||
Accumulated amortization of debt issuance costs, line of credit arrangements | $ 3.4 | $ 3.4 | ||
Convertible notes | Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stated interest rate | 5.00% | 5.00% | ||
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options excluded from diluted income (loss) per share calculation (in shares) | 5,240,018 | 10,634,157 | 7,385,714 | 9,616,800 |
Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Concentration Risk [Line Items] | |||||
Variable adjustment for transportation, location, quality, and other elements, percentage | (14.00%) | (21.00%) | (15.00%) | (22.00%) | |
Accrued sales revenue | $ 4.8 | $ 4.8 | $ 11.1 | ||
Product Concentration Risk | Revenue from Contract with Customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% |
Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 58.00% | 84.00% | ||
Deferred income tax expense | $ 23,169 | $ 11,525 | $ 36,651 | $ 22,904 |
Contingencies (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Loss Contingencies [Line Items] | ||
Letters of credit and other credit support provided | $ 69,800,000 | $ 76,000,000 |
Pending Litigation Royalty, Transportation and Related Costs | ||
Loss Contingencies [Line Items] | ||
Estimated compensation which would be payable if the ANH's interpretation is correct | 52,800,000 | |
Amount accrued | $ 0 |
Financial Instruments and Fair Value Measurement - Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Investment in PetroTal shares - current and long-term | $ 47,956 | $ 44,202 |
Foreign currency derivative asset | 930 | 302 |
Assets, fair value disclosure | 48,886 | 44,504 |
PSU, DSU and RSU liability - current and long-term | 21,077 | 11,430 |
Liabilities, fair value disclosure | 48,234 | 32,581 |
Foreign currency derivative asset | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency derivative asset | 930 | 302 |
Commodity Hedge | ||
Derivatives, Fair Value [Line Items] | ||
Commodity price derivative liability | $ 27,157 | $ 21,151 |
Financial Instruments and Fair Value Measurement - Schedule of Gains or Losses on Financial Instruments Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Investment gain | $ (11,638) | $ 0 | $ (5,717) | $ 0 |
Financial instruments loss (gain) | 4,768 | (1,447) | 11,714 | (6,886) |
Commodity price derivative loss (gain) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative (loss) gain | 14,461 | (1,545) | 19,455 | (6,247) |
Foreign currency derivatives loss (gain) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative (loss) gain | $ 1,945 | $ 98 | $ (2,024) | $ (639) |
Financial Instruments and Fair Value Measurement - Narrative (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Carrying amount | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | $ 288.6 |
Value of the notes | 111.5 |
Fair value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | 282.0 |
Value of the notes | $ 143.8 |
Financial Instruments and Fair Value Measurement - Rollforward of Level 3 Financial Asset (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Transfer from long-term (Level 3) to current (Level 1) | $ (4,787) | $ 0 | |
Equity Securities | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Opening balance, investment - long-term | 15,302 | 19,147 | $ 0 |
Acquisition | 0 | 19,091 | |
Unrealized valuation gain | 2,528 | 56 | |
Unrealized foreign exchange loss | (1,586) | 0 | |
Closing balance, investment - long-term | $ 15,302 | $ 19,147 |
Financial Instruments and Fair Value Measurement - Schedule of Outstanding Foreign Currency Derivative Positions (Details) - Collars: July 1, 2018 to December 31, 2018 $ in Thousands, $ in Millions |
Jun. 30, 2018
COP ($)
$ / collar
|
Jun. 30, 2018
USD ($)
$ / collar
|
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount hedged | $ 87,000 | $ 29,685 |
Purchased | Call | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Purchased call (in COP per collar) | 3,000.000 | 3,000.000 |
Sold | Put | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Sold put (in COP per collar) | 3,107 | 3,107 |
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 125,807 | $ 12,326 | $ 53,310 | $ 25,175 |
Restricted cash and cash equivalents - current | 2,836 | 11,787 | 5,844 | 8,322 |
Restricted cash and cash equivalents - long-term (included in other long-term assets) | 2,282 | 2,565 | 9,897 | 9,770 |
Cash, cash equivalents and restricted cash and cash equivalents | $ 130,925 | $ 26,678 | $ 69,051 | $ 43,267 |
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable and other long-term assets | $ (11,723) | $ 11,024 |
Derivatives | 3,431 | 0 |
Inventory | (3,054) | (47) |
Prepaids | (301) | 2,190 |
Accounts payable and accrued and other long-term liabilities | 971 | (6,179) |
Taxes receivable and payable | (27,318) | (35,100) |
Net changes in assets and liabilities from operating activities | $ (37,994) | $ (28,112) |
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Supplemental Cash Flow Elements [Abstract] | ||
Net liabilities related to property, plant and equipment, end of period | $ 62,009 | $ 56,044 |
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