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 | 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
OIL AND NATURAL GAS SALES (Notes 3 and 7) | $ | 175,118 | $ | 103,768 | $ | 476,792 | $ | 294,555 | |||||||
EXPENSES | |||||||||||||||
Operating | 29,511 | 21,931 | 78,019 | 60,547 | |||||||||||
Workover | 13,106 | 5,390 | 25,922 | 17,919 | |||||||||||
Transportation | 7,505 | 6,038 | 21,024 | 19,472 | |||||||||||
Depletion, depreciation and accretion (Note 3) | 51,630 | 35,279 | 137,698 | 93,968 | |||||||||||
General and administrative (Note 3) | 13,811 | 8,651 | 37,173 | 26,876 | |||||||||||
Severance | 1,004 | 1,164 | 2,015 | 1,164 | |||||||||||
Equity tax | — | — | — | 1,224 | |||||||||||
Foreign exchange (gain) loss | (888 | ) | (1,271 | ) | 94 | 779 | |||||||||
Financial instruments (gain) loss (Note 10) | (4,874 | ) | 1,675 | 6,840 | (5,211 | ) | |||||||||
Interest expense (Note 5) | 7,404 | 3,989 | 20,274 | 10,415 | |||||||||||
118,209 | 82,846 | 329,059 | 227,153 | ||||||||||||
LOSS ON SALE | — | — | (292 | ) | (9,076 | ) | |||||||||
INTEREST INCOME | 725 | 301 | 2,121 | 954 | |||||||||||
INCOME BEFORE INCOME TAXES (Note 3) | 57,634 | 21,223 | 149,562 | 59,280 | |||||||||||
INCOME TAX EXPENSE (RECOVERY) | |||||||||||||||
Current (Note 8) | 19,108 | 4,333 | 36,224 | 13,522 | |||||||||||
Deferred (Note 8) | (36,769 | ) | 13,760 | (118 | ) | 36,664 | |||||||||
(17,661 | ) | 18,093 | 36,106 | 50,186 | |||||||||||
NET AND COMPREHENSIVE INCOME | $ | 75,295 | $ | 3,130 | $ | 113,456 | $ | 9,094 | |||||||
NET INCOME PER SHARE | |||||||||||||||
- BASIC | $ | 0.19 | $ | 0.01 | $ | 0.29 | $ | 0.02 | |||||||
- DILUTED | $ | 0.18 | $ | 0.01 | $ | 0.28 | $ | 0.02 | |||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 6) | 391,209,589 | 394,771,194 | 391,185,636 | 397,439,007 | |||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 6) | 427,947,959 | 394,774,953 | 427,416,964 | 397,450,637 |
As at September 30, 2018 | As at December 31, 2017 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents (Note 11) | $ | 130,158 | $ | 12,326 | |||
Restricted cash and cash equivalents (Note 11) | 1,228 | 11,787 | |||||
Accounts receivable | 64,616 | 45,353 | |||||
Investment (Note 10) | 37,608 | 25,055 | |||||
Taxes receivable | 70,256 | 40,831 | |||||
Other current assets | 14,153 | 9,893 | |||||
Total Current Assets | 318,019 | 145,245 | |||||
Oil and Gas Properties (using the full cost method of accounting) | |||||||
Proved | 804,204 | 629,081 | |||||
Unproved | 441,275 | 464,948 | |||||
Total Oil and Gas Properties | 1,245,479 | 1,094,029 | |||||
Other capital assets | 2,901 | 5,195 | |||||
Total Property, Plant and Equipment (Note 3) | 1,248,380 | 1,099,224 | |||||
Other Long-Term Assets | |||||||
Deferred tax assets | 58,901 | 57,310 | |||||
Investment (Note 10) | 17,623 | 19,147 | |||||
Other long-term assets (Note 11) | 5,133 | 6,112 | |||||
Goodwill (Note 3) | 102,581 | 102,581 | |||||
Total Other Long-Term Assets | 184,238 | 185,150 | |||||
Total Assets (Note 3) | $ | 1,750,637 | $ | 1,429,619 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 164,885 | $ | 126,199 | |||
Derivatives (Note 10) | 17,688 | 21,151 | |||||
Taxes payable | 9,759 | 9,324 | |||||
Equity compensation award liability (Note 10) | 16,534 | 295 | |||||
Total Current Liabilities | 208,866 | 156,969 | |||||
Long-Term Liabilities | |||||||
Long-term debt (Notes 5 and 10) | 398,989 | 256,542 | |||||
Deferred tax liabilities | 28,470 | 28,417 | |||||
Asset retirement obligation | 38,877 | 31,241 | |||||
Equity compensation award liability (Note 10) | 14,648 | 11,135 | |||||
Other long-term liabilities | 9,257 | 8,980 | |||||
Total Long-Term Liabilities | 490,241 | 336,315 | |||||
Contingencies (Note 9) | |||||||
Shareholders’ Equity | |||||||
Common Stock (Note 6) (391,339,489 and 385,191,042 shares of Common Stock and nil and 6,111,665 exchangeable shares, par value $0.001 per share, issued and outstanding as at September 30, 2018, and December 31, 2017, respectively) | 10,295 | 10,295 | |||||
Additional paid in capital | 1,328,983 | 1,327,244 | |||||
Deficit | (287,748 | ) | (401,204 | ) | |||
Total Shareholders’ Equity | 1,051,530 | 936,335 | |||||
Total Liabilities and Shareholders’ Equity | $ | 1,750,637 | $ | 1,429,619 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating Activities | |||||||
Net income | $ | 113,456 | $ | 9,094 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depletion, depreciation and accretion (Note 3) | 137,698 | 93,968 | |||||
Deferred tax (recovery) expense | (118 | ) | 36,664 | ||||
Stock-based compensation (Note 6) | 20,477 | 4,935 | |||||
Amortization of debt issuance costs (Note 5) | 2,329 | 1,868 | |||||
Cash settlement of restricted share units | (360 | ) | (534 | ) | |||
Unrealized foreign exchange gain | (133 | ) | (304 | ) | |||
Financial instruments loss (gain) (Note 10) | 6,840 | (5,211 | ) | ||||
Cash settlement of financial instruments (Note 10) | (26,169 | ) | 1,518 | ||||
Cash settlement of asset retirement obligation | (456 | ) | (462 | ) | |||
Loss on sale | 292 | 9,076 | |||||
Net change in assets and liabilities from operating activities (Note 11) | (40,652 | ) | (28,105 | ) | |||
Net cash provided by operating activities | 213,204 | 122,507 | |||||
Investing Activities | |||||||
Additions to property, plant and equipment (Note 3) | (258,551 | ) | (175,719 | ) | |||
Property acquisitions (Note 4) | (20,100 | ) | (30,410 | ) | |||
Net proceeds from sale of Brazil business unit | — | 34,481 | |||||
Changes in non-cash investing working capital | 32,638 | 16,047 | |||||
Net cash used in investing activities | (246,013 | ) | (155,601 | ) | |||
Financing Activities | |||||||
Proceeds from bank debt, net of issuance costs (Note 5) | 4,988 | 115,264 | |||||
Repayment of bank debt (Note 5) | (153,000 | ) | (85,000 | ) | |||
Proceeds from exercise of stock options (Note 6) | 1,408 | — | |||||
Repurchase of shares of Common Stock (Note 6) | (1,314 | ) | (10,000 | ) | |||
Proceeds from issuance of Senior Notes, net of issuance costs (Note 5) | 288,087 | — | |||||
Net cash provided by financing activities | 140,169 | 20,264 | |||||
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents | (402 | ) | (1,060 | ) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 106,958 | (13,890 | ) | ||||
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) | $ | 133,636 | $ | 29,377 | |||
Supplemental cash flow disclosures (Note 11) |
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||
2018 | 2017 | ||||||
Share Capital | |||||||
Balance, beginning of period | $ | 10,295 | $ | 10,303 | |||
Issuance of Common Stock | 1 | — | |||||
Repurchase of Common Stock (Note 6) | (1 | ) | (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) | 1,407 | — | |||||
Stock-based compensation (Note 6) | 1,645 | 1,903 | |||||
Repurchase of Common Stock (Note 6) | (1,313 | ) | (9,996 | ) | |||
Balance, end of period | 1,328,983 | 1,334,563 | |||||
Deficit | |||||||
Balance, beginning of period | (401,204 | ) | (493,972 | ) | |||
Net income | 113,456 | 9,094 | |||||
Cumulative adjustment for accounting change related to tax reorganizations | — | 124,476 | |||||
Balance, end of period | (287,748 | ) | (360,402 | ) | |||
Total Shareholders’ Equity | $ | 1,051,530 | $ | 984,460 |
Three Months Ended September 30, 2018 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 175,118 | $ | — | $ | 175,118 | |||||
Depletion, depreciation and accretion | 51,416 | 214 | 51,630 | ||||||||
General and administrative expenses | 7,370 | 6,441 | 13,811 | ||||||||
Income (loss) before income taxes | 63,797 | (6,163 | ) | 57,634 | |||||||
Segment capital expenditures | 101,453 | 10 | 101,463 | ||||||||
Three Months Ended September 30, 2017 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 103,768 | $ | — | $ | 103,768 | |||||
Depletion, depreciation and accretion | 33,388 | 1,891 | 35,279 | ||||||||
General and administrative expenses | 5,500 | 3,151 | 8,651 | ||||||||
Income (loss) before income taxes | 31,276 | (10,053 | ) | 21,223 | |||||||
Segment capital expenditures | 70,606 | 1,088 | 71,694 | ||||||||
Nine Months Ended September 30, 2018 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 476,792 | $ | — | $ | 476,792 | |||||
Depletion, depreciation and accretion | 135,980 | 1,718 | 137,698 | ||||||||
General and administrative expenses | 20,876 | 16,297 | 37,173 | ||||||||
Income (loss) before income taxes | 175,977 | (26,415 | ) | 149,562 | |||||||
Segment capital expenditures | 257,771 | 780 | 258,551 | ||||||||
Nine Months Ended September 30, 2017 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Oil and natural gas sales | $ | 286,137 | $ | 8,418 | $ | 294,555 | |||||
Depletion, depreciation and accretion | 88,453 | 5,515 | 93,968 | ||||||||
General and administrative expenses | 15,561 | 11,315 | 26,876 | ||||||||
Income (loss) before income taxes | 90,018 | (30,738 | ) | 59,280 | |||||||
Segment capital expenditures | 168,881 | 6,838 | 175,719 |
As at September 30, 2018 | |||||||||||
(Thousands of U.S. Dollars) | Colombia | All Other | Total | ||||||||
Property, plant and equipment | $ | 1,246,979 | $ | 1,401 | $ | 1,248,380 | |||||
Goodwill | 102,581 | — | 102,581 | ||||||||
All other assets | 226,733 | 172,943 | 399,676 | ||||||||
Total Assets | $ | 1,576,293 | $ | 174,344 | $ | 1,750,637 | |||||
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 September 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 | (16,011 | ) | (6,458 | ) | |||
Long-term debt | $ | 398,989 | $ | 256,542 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Contractual interest and other financing expenses | $ | 6,588 | $ | 3,346 | $ | 17,945 | $ | 8,547 | |||||||
Amortization of debt issuance costs | 816 | 643 | 2,329 | 1,868 | |||||||||||
$ | 7,404 | $ | 3,989 | $ | 20,274 | $ | 10,415 |
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 | 541,394 | — | — | |||
Shares repurchased and canceled | (504,612 | ) | — | — | ||
Exchange of exchangeable shares | 6,111,665 | (4,422,776 | ) | (1,688,889 | ) | |
Balance, September 30, 2018 | 391,339,489 | — | — |
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 | 3,660,422 | 182,607 | — | 2,049,930 | 2.54 | ||||||
Exercised | — | — | (120,268 | ) | (541,394 | ) | 2.60 | ||||
Forfeited | (618,735 | ) | — | (1,822 | ) | (656,847 | ) | 4.69 | |||
Expired | — | — | — | (621,854 | ) | 6.55 | |||||
Balance, September 30, 2018 | 9,173,638 | 638,375 | — | 9,190,527 | 3.20 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Weighted average number of common and exchangeable shares outstanding | 391,209,589 | 394,771,194 | 391,185,636 | 397,439,007 | |||||||
Shares issuable pursuant to stock options | 6,509,385 | 61,325 | 4,295,964 | 187,150 | |||||||
Shares assumed to be purchased from proceeds of stock options | (5,585,408 | ) | (57,566 | ) | (3,879,029 | ) | (175,520 | ) | |||
Shares issuable pursuant to convertible notes | 35,814,393 | — | 35,814,393 | — | |||||||
Weighted average number of diluted common and exchangeable shares outstanding | 427,947,959 | 394,774,953 | 427,416,964 | 397,450,637 |
(Thousands of U.S. Dollars) | As at September 30, 2018 | As at December 31, 2017 | |||||
Investment in PetroTal shares - current and long-term | $ | 55,231 | $ | 44,202 | |||
Foreign currency derivative asset | 100 | 302 | |||||
$ | 55,331 | $ | 44,504 | ||||
Commodity price derivative liability | $ | 17,688 | $ | 21,151 | |||
Equity compensation award liability - current and long-term | 31,182 | 11,430 | |||||
$ | 48,870 | $ | 32,581 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Commodity price derivative loss (gain) | $ | 929 | $ | 2,489 | $ | 20,384 | $ | (3,759 | ) | ||||||
Foreign currency derivatives loss (gain) | 525 | (814 | ) | (1,499 | ) | (1,452 | ) | ||||||||
Investment gain | (6,328 | ) | — | (12,045 | ) | — | |||||||||
Financial instruments (gain) loss | $ | (4,874 | ) | $ | 1,675 | $ | 6,840 | $ | (5,211 | ) |
Nine Months Ended | Year Ended | ||||||
(Thousands of U.S. Dollars) | September 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 | 5,332 | 56 | |||||
Unrealized foreign exchange loss | (2,069 | ) | — | ||||
Closing balance, investment - long-term | $ | 17,623 | $ | 19,147 |
Period and type of instrument | Volume, bopd | Reference | Sold Swap ($/bbl, Weighted Average) | Purchased Call ($/bbl, Weighted Average) | |||||
Swaps: October 1, to December 31, 2018 | 5,000 | ICE Brent | $ | 55.90 | n/a | ||||
Participating Swaps: October 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: October 1, 2018 to December 31, 2018 | 43,500 | 14,636 | COP | 3,000 | 3,107 |
(Thousands of U.S. Dollars) | As at September 30, | As at December 31, | |||||||||||
2018 | 2017 | 2017 | 2016 | ||||||||||
Cash and cash equivalents | $ | 130,158 | $ | 15,125 | $ | 12,326 | $ | 25,175 | |||||
Restricted cash and cash equivalents - current | 1,228 | 3,920 | 11,787 | 8,322 | |||||||||
Restricted cash and cash equivalents - long-term (included in other long-term assets) | 2,250 | 10,332 | 2,565 | 9,770 | |||||||||
$ | 133,636 | $ | 29,377 | $ | 26,678 | $ | 43,267 |
Nine Months Ended September 30, | |||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | |||||
Accounts receivable and other long-term assets | $ | (35,934 | ) | $ | 8,356 | ||
Derivatives | 21,645 | — | |||||
Inventory | (3,375 | ) | (28 | ) | |||
Prepaids | 489 | 3,080 | |||||
Accounts payable and accrued and other long-term liabilities | 5,380 | 5,951 | |||||
Taxes receivable and payable | (28,857 | ) | (45,464 | ) | |||
Net changes in assets and liabilities from operating activities | $ | (40,652 | ) | $ | (28,105 | ) |
Nine Months Ended September 30, | |||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | |||||
Non-cash investing activities: | |||||||
Net liabilities related to property, plant and equipment, end of period | $ | 100,790 | $ | 68,018 |
• | Achieved a new company milestone: Colombia working interest production before royalties of 36,170 BOEPD, 11% higher compared with 32,570 BOEPD in the third quarter of 2017. Production increased largely because of production from development activities in the Acordionero Field. |
• | The quarter's Colombia production also increased 60% from second quarter 2015 when the strategy to refocus Gran Tierra on Colombia began, an annual growth rate of 20%. |
• | Since acquiring the Acordionero field in the Middle Magdalena Valley ("MMV") in August 2016, we have increased production 299% to a record high average rate during the quarter of 18,885 bopd (14,890 bopd NAR). From the acquisition date of August 23, 2016, until September 30, 2018, the MMV assets have generated $419.8 million in oil and natural gas sales, operating netback of $327.2 million while incurring capital expenditures of $229.8 million |
• | Production NAR was 28,599 BOEPD, 4% higher than the third quarter of 2017. |
• | Continued significant exposure to oil price strength with oil representing 100% of our production. |
• | Oil and natural gas sales volumes were 28,659 BOEPD, 4% higher than the third quarter of 2017. The quarter's increase in oil and gas sales volumes was driven by the production increase (3,600 bopd) and a change in inventory (128 bopd), partially offset by higher royalties (2,516 bopd) due to higher oil prices. |
• | Net income was $75.3 million compared with $3.1 million in the third quarter of 2017. |
• | Funds flow from operations(1) increased by 54% to $85.0 million compared with the third quarter of 2017, while the Brent price increased only 46% from the third quarter of 2017. |
• | Active quarter with capital expenditures of $101.5 million. |
• | Oil and gas sales per BOE were $66.42, 62% higher than the third quarter of 2017. |
• | Operating netback(2) per BOE was $47.41, 70% higher than the third quarter of 2017. |
• | Operating expenses per BOE were $11.19, 29% higher than the third quarter of 2017 as a result of higher power generation costs ($0.74 per bbl) and field operation maintenance activities (0.94 per bbl). |
• | Workover expenses increased by 133% to $4.97 per bbl compared to the third quarter of 2017. During the quarter, we replaced 9 electric submersible pumps which had an average run life of 243 days. |
• | Quality and transportation discount was $9.55 per BOE compared with $11.09 per BOE in the third quarter of 2017; this $1.54 per BOE reduction resulted from the optimization of transportation routes and narrowing of differentials. |
• | Transportation expenses per BOE were $2.85, 19% higher compared with the third quarter of 2017. The increase was due to the increased use of alternative transportation routes, which had higher costs per BOE. |
• | General and administrative ("G&A") expenses before stock-based compensation per BOE decreased by 49% to $1.40 per BOE compared with the third quarter of 2017. |
• | Exited the quarter with $130.2 million of cash and cash equivalents. |
• | In addition, subsequent to September 30, 2018, our Common Stock was admitted to list on the London Stock Exchange. |
• | Subsequent to the quarter there was an act of sabotage to one of our flow lines close to the Costayaco operations, Villagarzon, Putumayo. No one from Gran Tierra Energy or the local communities were injured however; three members of the Civil Defense authorities did sustain minor injuries. The damage to the flow line was repaired and back in operation within 24-hours. The appropriate authorities are investigating those responsible and the company is cooperating fully with the authorities in their investigation. |
(Thousands of U.S. Dollars, unless otherwise indicated) | Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | ||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2018 | 2017 | % Change | |||||||||||||||
Average Daily Volumes (BOEPD) | |||||||||||||||||||||
Consolidated | |||||||||||||||||||||
Working Interest Production Before Royalties | 36,170 | 32,570 | 11 | 35,400 | 35,553 | 31,305 | 14 | ||||||||||||||
Royalties | (7,571 | ) | (5,055 | ) | (50 | ) | (7,202 | ) | (7,222 | ) | (5,052 | ) | (43 | ) | |||||||
Production NAR | 28,599 | 27,515 | 4 | 28,198 | 28,331 | 26,253 | 8 | ||||||||||||||
Decrease (Increase) in Inventory | 60 | (68 | ) | 188 | (296 | ) | (403 | ) | (64 | ) | (530 | ) | |||||||||
Sales(1) | 28,659 | 27,447 | 4 | 27,902 | 27,928 | 26,189 | 7 | ||||||||||||||
Colombia | |||||||||||||||||||||
Working Interest Production Before Royalties | 36,170 | 32,570 | 11 | 35,400 | 35,553 | 30,398 | 17 | ||||||||||||||
Royalties | (7,571 | ) | (5,055 | ) | (50 | ) | (7,202 | ) | (7,222 | ) | (4,914 | ) | (47 | ) | |||||||
Production NAR | 28,599 | 27,515 | 4 | 28,198 | 28,331 | 25,484 | 11 | ||||||||||||||
Decrease (Increase) in Inventory | 60 | (68 | ) | 188 | (296 | ) | (403 | ) | (70 | ) | (476 | ) | |||||||||
Sales(1) | 28,659 | 27,447 | 4 | 27,902 | 27,928 | 25,414 | 10 | ||||||||||||||
Net Income | $ | 75,295 | $ | 3,130 | — | $ | 20,300 | $ | 113,456 | $ | 9,094 | — | |||||||||
Operating Netback | |||||||||||||||||||||
Oil and Natural Gas Sales | $ | 175,118 | $ | 103,768 | 69 | $ | 163,446 | $ | 476,792 | $ | 294,555 | 62 | |||||||||
Operating Expenses | (29,511 | ) | (21,931 | ) | 35 | (26,732 | ) | (78,019 | ) | (60,547 | ) | 29 | |||||||||
Workover Expenses | (13,106 | ) | (5,390 | ) | 143 | (8,327 | ) | (25,922 | ) | (17,919 | ) | 45 | |||||||||
Transportation Expenses | (7,505 | ) | (6,038 | ) | 24 | (6,522 | ) | (21,024 | ) | (19,472 | ) | 8 | |||||||||
Operating Netback(2) | $ | 124,996 | $ | 70,409 | 78 | $ | 121,865 | $ | 351,827 | $ | 196,617 | 79 | |||||||||
G&A Expenses Before Stock-Based Compensation | $ | 3,679 | $ | 6,965 | (47 | ) | $ | 5,593 | $ | 17,254 | $ | 22,138 | (22 | ) | |||||||
G&A Stock-Based Compensation | 10,132 | 1,686 | 501 | 6,609 | 19,919 | 4,738 | 320 | ||||||||||||||
G&A Expenses, Including Stock-Based Compensation | $ | 13,811 | $ | 8,651 | 60 | $ | 12,202 | $ | 37,173 | $ | 26,876 | 38 | |||||||||
EBITDA(2) | $ | 116,668 | $ | 60,491 | 93 | $ | 102,278 | $ | 307,534 | $ | 163,663 | 88 | |||||||||
Funds Flow From Operations(2) | $ | 85,015 | $ | 55,128 | 54 | $ | 94,549 | $ | 254,312 | $ | 151,074 | 68 | |||||||||
Capital Expenditures | $ | 101,463 | $ | 71,694 | 42 | $ | 84,394 | $ | 258,551 | $ | 175,719 | 47 |
As at | ||||||||
(Thousands of U.S. Dollars) | September 30, 2018 | December 31, 2017 | % Change | |||||
Cash and Cash Equivalents | $ | 130,158 | $ | 12,326 | 956 | |||
Revolving Credit Facility | $ | — | $ | 148,000 | (100 | ) | ||
Senior Notes | $ | 300,000 | $ | — | — | |||
Convertible Notes | $ | 115,000 | $ | 115,000 | — |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||
Net income | $ | 75,295 | $ | 3,130 | $ | 20,300 | $ | 113,456 | $ | 9,094 | |||||||
Adjustments to reconcile net income to EBITDA | |||||||||||||||||
DD&A expenses | 51,630 | 35,279 | 46,607 | 137,698 | 93,968 | ||||||||||||
Interest expense | 7,404 | 3,989 | 7,375 | 20,274 | 10,415 | ||||||||||||
Income tax (recovery) expense | (17,661 | ) | 18,093 | 27,996 | 36,106 | 50,186 | |||||||||||
EBITDA (non-GAAP) | 116,668 | 60,491 | 102,278 | 307,534 | 163,663 |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||
Net income | $ | 75,295 | $ | 3,130 | $ | 20,300 | 113,456 | $ | 9,094 | ||||||||
Adjustments to reconcile net income to funds flow from operations | |||||||||||||||||
DD&A expenses | 51,630 | 35,279 | 46,607 | 137,698 | 93,968 | ||||||||||||
Deferred tax (recovery) expense | (36,769 | ) | 13,760 | 23,169 | (118 | ) | 36,664 | ||||||||||
Stock-based compensation expense | 10,275 | 1,752 | 6,893 | 20,477 | 4,935 | ||||||||||||
Amortization of debt issuance costs | 816 | 643 | 843 | 2,329 | 1,868 | ||||||||||||
Cash settlement of RSUs | — | (33 | ) | (240 | ) | (360 | ) | (534 | ) | ||||||||
Unrealized foreign exchange (gain) loss | (672 | ) | (1,380 | ) | 1,583 | (133 | ) | (304 | ) | ||||||||
Financial instruments (gain) loss | (4,874 | ) | 1,675 | 4,768 | 6,840 | (5,211 | ) | ||||||||||
Cash settlement of financial instruments | (10,686 | ) | 302 | (9,666 | ) | (26,169 | ) | 1,518 | |||||||||
Loss on sale | — | — | 292 | 292 | 9,076 | ||||||||||||
Funds flow from operations (non-GAAP) | $ | 85,015 | $ | 55,128 | $ | 94,549 | $ | 254,312 | $ | 151,074 |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2018 | 2017 | % Change | |||||||||||||||
(Thousands of U.S. Dollars) | |||||||||||||||||||||
Oil and natural gas sales | $ | 175,118 | $ | 103,768 | 69 | $ | 163,446 | $ | 476,792 | $ | 294,555 | 62 | |||||||||
Operating expenses | 29,511 | 21,931 | 35 | 26,732 | 78,019 | 60,547 | 29 | ||||||||||||||
Workover expenses | 13,106 | 5,390 | 143 | 8,327 | 25,922 | 17,919 | 45 | ||||||||||||||
Transportation expenses | 7,505 | 6,038 | 24 | 6,522 | 21,024 | 19,472 | 8 | ||||||||||||||
Operating netback(1) | 124,996 | 70,409 | 78 | 121,865 | 351,827 | 196,617 | 79 | ||||||||||||||
DD&A expenses | 51,630 | 35,279 | 46 | 46,607 | 137,698 | 93,968 | 47 | ||||||||||||||
G&A expenses before stock-based compensation | 3,679 | 6,965 | (47 | ) | 5,593 | 17,254 | 22,138 | (22 | ) | ||||||||||||
G&A stock-based compensation expense | 10,132 | 1,686 | 501 | 6,609 | 19,919 | 4,738 | 320 | ||||||||||||||
Severance expenses | 1,004 | 1,164 | (14 | ) | 1,011 | 2,015 | 1,164 | 73 | |||||||||||||
Equity tax | — | — | — | — | — | 1,224 | (100 | ) | |||||||||||||
Foreign exchange (gain) loss | (888 | ) | (1,271 | ) | 30 | 1,924 | 94 | 779 | (88 | ) | |||||||||||
Financial instruments (gain) loss | (4,874 | ) | 1,675 | (391 | ) | 4,768 | 6,840 | (5,211 | ) | 231 | |||||||||||
Interest expense | 7,404 | 3,989 | 86 | 7,375 | 20,274 | 10,415 | 95 | ||||||||||||||
68,087 | 49,487 | 38 | 73,887 | 204,094 | 129,215 | 58 | |||||||||||||||
Loss on sale | — | — | — | (292 | ) | (292 | ) | (9,076 | ) | (97 | ) | ||||||||||
Interest income | 725 | 301 | 141 | 610 | 2,121 | 954 | 122 | ||||||||||||||
Income before income taxes | 57,634 | 21,223 | 172 | 48,296 | 149,562 | 59,280 | 152 | ||||||||||||||
Current income tax expense | 19,108 | 4,333 | 341 | 4,827 | 36,224 | 13,522 | 168 |
Deferred income tax (recovery) expense | (36,769 | ) | 13,760 | (367 | ) | 23,169 | (118 | ) | 36,664 | (100 | ) | ||||||||||
(17,661 | ) | 18,093 | (198 | ) | 27,996 | 36,106 | 50,186 | (28 | ) | ||||||||||||
Net income | $ | 75,295 | $ | 3,130 | — | $ | 20,300 | $ | 113,456 | $ | 9,094 | — | |||||||||
Sales Volumes (NAR) | |||||||||||||||||||||
Total sales volumes, BOEPD | 28,659 | 27,447 | 4 | 27,902 | 27,928 | 26,189 | 7 | ||||||||||||||
Brent Price per bbl | $ | 75.97 | $ | 52.18 | 46 | $ | 74.90 | $ | 72.68 | $ | 52.59 | 38 | |||||||||
Consolidated Results of Operations per BOE Sales Volumes NAR | |||||||||||||||||||||
Oil and natural gas sales | $ | 66.42 | $ | 41.09 | 62 | $ | 64.37 | $ | 62.54 | $ | 41.20 | 52 | |||||||||
Operating expenses | 11.19 | 8.69 | 29 | 10.53 | 10.23 | 8.46 | 21 | ||||||||||||||
Workover expenses | 4.97 | 2.13 | 133 | 3.28 | 3.40 | 2.51 | 35 | ||||||||||||||
Transportation expenses | 2.85 | 2.39 | 19 | 2.57 | 2.76 | 2.72 | 1 | ||||||||||||||
Operating netback(1) | 47.41 | 27.88 | 70 | 47.99 | 46.15 | 27.51 | 68 | ||||||||||||||
DD&A expenses | 19.58 | 13.97 | 40 | 18.36 | 18.06 | 13.14 | 37 | ||||||||||||||
G&A expenses before stock-based compensation | 1.40 | 2.76 | (49 | ) | 2.20 | 2.26 | 3.10 | (27 | ) | ||||||||||||
G&A stock-based compensation expense | 3.84 | 0.67 | 473 | 2.60 | 2.61 | 0.66 | 295 | ||||||||||||||
Severance expenses | 0.38 | 0.46 | (17 | ) | 0.40 | 0.26 | 0.16 | 63 | |||||||||||||
Equity tax | — | — | — | — | — | 0.17 | (100 | ) | |||||||||||||
Foreign exchange (gain) loss | (0.34 | ) | (0.50 | ) | 32 | 0.76 | 0.01 | 0.11 | (91 | ) | |||||||||||
Financial instruments (gain) loss | (1.85 | ) | 0.66 | (380 | ) | 1.88 | 0.90 | (0.73 | ) | 223 | |||||||||||
Interest expense | 2.81 | 1.58 | 78 | 2.90 | 2.66 | 1.46 | 82 | ||||||||||||||
25.82 | 19.60 | 32 | 29.10 | 26.76 | 18.07 | 48 | |||||||||||||||
Loss on sale | — | — | — | (0.12 | ) | (0.04 | ) | (1.27 | ) | (97 | ) | ||||||||||
Interest income | 0.27 | 0.12 | 125 | 0.24 | 0.28 | 0.13 | 115 | ||||||||||||||
Income before income taxes | 21.86 | 8.40 | 160 | 19.01 | 19.63 | 8.30 | 137 | ||||||||||||||
Current income tax expense | 7.25 | 1.72 | 322 | 1.90 | 4.75 | 1.89 | 151 | ||||||||||||||
Deferred income tax (recovery) expense | (13.95 | ) | 5.45 | (356 | ) | 9.12 | (0.02 | ) | 5.13 | (100 | ) | ||||||||||
(6.70 | ) | 7.17 | (193 | ) | 11.02 | 4.73 | 7.02 | (33 | ) | ||||||||||||
Net income | $ | 28.56 | $ | 1.23 | — | $ | 7.99 | $ | 14.90 | $ | 1.28 | — |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||||
Average Daily Volumes (BOEPD) | Colombia | Colombia | |||
Working Interest Production Before Royalties | 36,170 | 32,570 | |||
Royalties | (7,571 | ) | (5,055 | ) | |
Production NAR | 28,599 | 27,515 | |||
Decrease (Increase) in Inventory | 60 | (68 | ) | ||
Sales | 28,659 | 27,447 | |||
Royalties, % of Working Interest Production Before Royalties | 21 | % | 16 | % |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||
Average Daily Volumes (BOEPD) | Total | Colombia | Brazil | Total | |||||
Working Interest Production Before Royalties | 35,553 | 30,398 | 907 | 31,305 | |||||
Royalties | (7,222 | ) | (4,914 | ) | (138 | ) | (5,052 | ) | |
Production NAR | 28,331 | 25,484 | 769 | 26,253 | |||||
(Increase) Decrease in Inventory | (403 | ) | (70 | ) | 6 | (64 | ) | ||
Sales | 27,928 | 25,414 | 775 | 26,189 | |||||
Royalties, % of Working Interest Production Before Royalties | 20 | % | 16 | % | 15 | % | 16 | % |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||||||
(Thousands of U.S. Dollars) | Colombia | Colombia | |||||
Oil and Natural Gas Sales | $ | 175,118 | $ | 103,768 | |||
Transportation Expenses | (7,505 | ) | (6,038 | ) | |||
167,613 | 97,730 | ||||||
Operating Expenses | (29,511 | ) | (21,931 | ) | |||
Workover Expenses | (13,106 | ) | (5,390 | ) | |||
Operating Netback(1) | $ | 124,996 | $ | 70,409 | |||
U.S. Dollars Per BOE Sales Volumes NAR | |||||||
Brent | $ | 75.97 | $ | 52.18 | |||
Quality and Transportation Discounts | (9.55 | ) | (11.09 | ) | |||
Average Realized Price | 66.42 | 41.09 | |||||
Transportation Expenses | (2.85 | ) | (2.39 | ) | |||
Average Realized Price Net of Transportation Expenses | 63.57 | 38.70 | |||||
Operating Expenses | (11.19 | ) | (8.69 | ) | |||
Workover Expenses | (4.97 | ) | (2.13 | ) | |||
Operating Netback(1) | $ | 47.41 | $ | 27.88 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
(Thousands of U.S. Dollars) | Total | Colombia | Brazil | Total | |||||||||
Oil and Natural Gas Sales | $ | 476,792 | $ | 286,137 | $ | 8,418 | $ | 294,555 | |||||
Transportation Expenses | (21,024 | ) | (19,122 | ) | (350 | ) | (19,472 | ) | |||||
455,768 | 267,015 | 8,068 | 275,083 | ||||||||||
Operating Expenses | (78,019 | ) | (58,754 | ) | (1,793 | ) | (60,547 | ) | |||||
Workover Expenses | $ | (25,922 | ) | $ | (17,915 | ) | $ | (4 | ) | (17,919 | ) | ||
Operating Netback(1) | $ | 351,827 | $ | 190,346 | $ | 6,271 | $ | 196,617 | |||||
U.S. Dollars Per BOE Sales Volumes NAR | |||||||||||||
Brent | $ | 72.68 | $ | 52.59 | $ | 52.59 | $ | 52.59 | |||||
Quality and Transportation Discounts | (10.14 | ) | (11.35 | ) | (12.83 | ) | (11.39 | ) | |||||
Average Realized Price | 62.54 | 41.24 | 39.76 | 41.20 | |||||||||
Transportation Expenses | (2.76 | ) | (2.76 | ) | (1.65 | ) | (2.72 | ) | |||||
Average Realized Price Net of Transportation Expenses | 59.78 | 38.48 | 38.11 | 38.48 | |||||||||
Operating Expenses | (10.23 | ) | (8.47 | ) | (8.47 | ) | (8.46 | ) | |||||
Workover Expenses | (3.40 | ) | (2.58 | ) | (0.02 | ) | (2.51 | ) | |||||
Operating Netback(1) | $ | 46.15 | $ | 27.43 | $ | 29.62 | $ | 27.51 |
Third Quarter 2018 Compared with Second Quarter 2018 | Third Quarter 2018 Compared with Third Quarter 2017 | Nine Months Ended, September 30, 2018 Compared with Nine Months Ended September 30, 2017 | |||||||
Oil and natural gas sales for the comparative period | $ | 163,446 | $ | 103,768 | $ | 294,555 | |||
Realized sales price increase effect | 5,397 | 66,770 | 162,696 | ||||||
Sales volume increase effect | 6,275 | 4,580 | 19,541 | ||||||
Oil and natural gas sales for the period ended September 30, 2018 | $ | 175,118 | $ | 175,118 | $ | 476,792 |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | ||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||
Volume transported through pipeline | 9 | % | 10 | % | 9 | % | 9 | % | 18 | % |
Volume sold at wellhead | 37 | % | 57 | % | 41 | % | 39 | % | 54 | % |
Volume transported via truck | 54 | % | 33 | % | 50 | % | 52 | % | 28 | % |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
U.S. Dollars Per BOE Sales Volumes NAR | Third Quarter 2018 Compared with Second Quarter 2018 | Third Quarter 2018 Compared with Third Quarter 2017 | Nine Months Ended, September 30, 2018 Compared with Nine Months Ended September 30, 2017 | ||||||
Average realized price net of transportation expenses for the comparative period | $ | 61.80 | $ | 38.70 | $ | 38.48 | |||
Increase in benchmark prices | 1.07 | $ | 23.79 | 20.09 | |||||
Decrease in quality and transportation discounts | 0.98 | 1.54 | 1.21 | ||||||
Increase in transportation expenses | (0.28 | ) | (0.46 | ) | — | ||||
Average realized price net of transportation expenses for the period ended September 30, 2018 | $ | 63.57 | $ | 63.57 | $ | 59.78 |
Three Months Ended September 30, 2018 | Three Months Ended September 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 | $ | 51,416 | $ | 19.50 | $ | 33,388 | $ | 13.22 | |||||
Peru | — | — | 1,057 | — | |||||||||
Corporate | 214 | — | 834 | — | |||||||||
$ | 51,630 | $ | 19.58 | $ | 35,279 | $ | 13.97 | ||||||
Nine Months Ended September 30, 2018 | Nine Months Ended September 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 | $ | 135,980 | $ | 17.84 | $ | 88,453 | $ | 12.75 | |||||
Brazil | — | — | 2,263 | 10.69 | |||||||||
Peru | — | — | 1,978 | — | |||||||||
Corporate | 1,718 | — | 1,274 | — | |||||||||
$ | 137,698 | $ | 18.06 | $ | 93,968 | $ | 13.14 |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | % Change | 2018 | 2018 | 2017 | % Change | ||||||||||||||
G&A Expenses Before Stock-Based Compensation | $ | 3,679 | $ | 6,965 | (47 | ) | $ | 5,593 | $ | 17,254 | $ | 22,138 | (22 | ) | |||||||
G&A Stock-Based Compensation | 10,132 | 1,686 | 501 | 6,609 | 19,919 | 4,738 | 320 | ||||||||||||||
G&A Expenses, Including Stock-Based Compensation | $ | 13,811 | $ | 8,651 | 60 | $ | 12,202 | $ | 37,173 | $ | 26,876 | 38 | |||||||||
U.S. Dollars Per BOE Sales Volumes NAR | |||||||||||||||||||||
G&A Expenses Before Stock-Based Compensation | $ | 1.40 | $ | 2.76 | (49 | ) | $ | 2.20 | $ | 2.26 | $ | 3.10 | (27 | ) | |||||||
G&A Stock-Based Compensation | 3.84 | 0.67 | 473 | 2.60 | 2.61 | 0.66 | 295 | ||||||||||||||
G&A Expenses, Including Stock-Based Compensation | $ | 5.24 | $ | 3.43 | 53 | $ | 4.80 | $ | 4.87 | $ | 3.76 | 30 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||
2018 | 2017 | 2018 | 2017 | ||
Change in the U.S. dollar against the Colombian peso | strengthened by | weakened by | no change | weakened by | |
1% | 3% | —% | 2% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||
Commodity price derivative loss (gain) | $ | 929 | $ | 2,489 | $ | 20,384 | $ | (3,759 | ) | ||||
Foreign currency derivatives loss (gain) | 525 | (814 | ) | (1,499 | ) | (1,452 | ) | ||||||
Investment gain | (6,328 | ) | — | (12,045 | ) | — | |||||||
Financial instruments (gain) loss | $ | (4,874 | ) | $ | 1,675 | $ | 6,840 | $ | (5,211 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Thousands of U.S. Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Income before income tax | $ | 57,634 | $ | 21,223 | $ | 149,562 | $ | 59,280 | |||||||
Current income tax expense | $ | 19,108 | $ | 4,333 | $ | 36,224 | $ | 13,522 | |||||||
Deferred income tax (recovery) expense | (36,769 | ) | 13,760 | (118 | ) | 36,664 | |||||||||
Total income tax (recovery) expense | $ | (17,661 | ) | $ | 18,093 | $ | 36,106 | $ | 50,186 | ||||||
Effective tax rate | 24 | % | 85 | % |
(Thousands of U.S. Dollars) | Third Quarter 2018 Compared with Second Quarter 2018 | % change | Third Quarter 2018 Compared with Third Quarter 2017 | % change | Nine Months Ended, September 30, 2018 Compared with Nine Months Ended September 30, 2017 | % change | |||||||||
Net income for the comparative period | $ | 20,300 | $ | 3,130 | $ | 9,094 | |||||||||
Increase (decrease) due to: | |||||||||||||||
Prices | 5,397 | 66,770 | 162,696 | ||||||||||||
Sales volumes | 6,275 | 4,580 | 19,541 | ||||||||||||
Expenses: | |||||||||||||||
Operating | (2,779 | ) | (7,580 | ) | (17,472 | ) | |||||||||
Workover | (4,779 | ) | (7,716 | ) | (8,003 | ) | |||||||||
Transportation | (983 | ) | (1,467 | ) | (1,552 | ) | |||||||||
Cash G&A and RSU settlements, excluding stock-based compensation expense | 2,154 | 3,319 | 5,058 | ||||||||||||
Severance | 7 | 160 | (851 | ) | |||||||||||
Interest, net of amortization of debt issuance costs | (56 | ) | (3,242 | ) | (9,398 | ) | |||||||||
Realized foreign exchange | 557 | 325 | 856 | ||||||||||||
Settlement of financial instruments | (1,020 | ) | (10,988 | ) | (27,687 | ) | |||||||||
Current taxes | (14,281 | ) | (14,775 | ) | (22,702 | ) | |||||||||
Equity tax | — | — | 1,224 | ||||||||||||
Other | (26 | ) | 501 | 1,528 | |||||||||||
Net change in funds flow from operations(1) from comparative period | (9,534 | ) | 29,887 | 103,238 | |||||||||||
Expenses: | |||||||||||||||
Depletion, depreciation and accretion | (5,023 | ) | (16,351 | ) | (43,730 | ) | |||||||||
Deferred tax | 59,938 | 50,529 | 36,782 | ||||||||||||
Amortization of debt issuance costs | 27 | (173 | ) | (461 | ) | ||||||||||
Stock-based compensation, net of RSU settlement | (3,622 | ) | (8,556 | ) | (15,716 | ) | |||||||||
Financial instruments gain or loss, net of financial instruments settlements | 10,662 | 17,537 | 15,636 | ||||||||||||
Unrealized foreign exchange | 2,255 | (708 | ) | (171 | ) | ||||||||||
Loss on sale | 292 | — | 8,784 | ||||||||||||
Net change in net income | 54,995 | 72,165 | 104,362 | ||||||||||||
Net income for the current period | $ | 75,295 | 271 | % | $ | 75,295 | — | % | $ | 113,456 | — | % |
(Thousands of U.S. Dollars) | |||
Colombia: | |||
Exploration | $ | 8,630 | |
Development: | |||
Drilling and Completions | 57,223 | ||
Facilities | 32,170 | ||
Other | 3,430 | ||
101,453 | |||
Corporate | 10 | ||
$ | 101,463 |
Number of wells (Gross) | Number of wells (Net) | |||
Development | 8 | 8 | ||
Exploration | 1 | 1 | ||
Other | 1 | 1 | ||
Total Colombia | 10 | 10 |
As at | ||||||||||
(Thousands of U.S. Dollars) | September 30, 2018 | % Change | December 31, 2017 | |||||||
Cash and Cash Equivalents | $ | 130,158 | 956 | $ | 12,326 | |||||
Current Restricted Cash and Cash Equivalents | $ | 1,228 | (90 | ) | $ | 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: October 1, to December 31, 2018 | 5,000 | ICE Brent | $ | 55.90 | n/a | ||||
Participating Swaps: October 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: October 1, 2018 to December 31, 2018 | 43,500 | 14,636 | COP | 3,000 | 3,107 |
Nine Months Ended September 30, | ||||||
2018 | 2017 | |||||
Sources of cash and cash equivalents: | ||||||
Net income | $ | 113,456 | $ | 9,094 | ||
Adjustments to reconcile net income to EBITDA(1) and funds flow from operations(1) | ||||||
DD&A expenses | 137,698 | 93,968 | ||||
Interest expense | 20,274 | 10,415 | ||||
Income tax expense | 36,106 | 50,186 | ||||
EBITDA | 307,534 | 163,663 | ||||
Current income tax expense | (36,224 | ) | (13,522 | ) | ||
Stock-based compensation expense | 20,477 | 4,935 | ||||
Contractual interest and other financing expenses | (17,945 | ) | (8,547 | ) | ||
Cash settlement of RSUs | (360 | ) | (534 | ) | ||
Unrealized foreign exchange loss | (133 | ) | (304 | ) | ||
Financial instruments loss (gain) | 6,840 | (5,211 | ) | |||
Cash settlement of financial instruments | (26,169 | ) | 1,518 | |||
Loss on sale | 292 | 9,076 | ||||
Funds flow from operations | 254,312 | 151,074 | ||||
Proceeds from bank debt, net of issuance costs | 4,988 | 115,264 | ||||
Proceeds from issuance of Senior Notes, net of issuance costs | 288,087 | — | ||||
Proceeds from issuance of shares | 1,408 | — | ||||
Changes in non-cash investing working capital | 32,638 | 16,047 | ||||
Deposit received for sale of Brazil business unit | — | 34,481 | ||||
581,433 | 316,866 | |||||
Uses of cash and cash equivalents: | ||||||
Additions to property, plant and equipment | (258,551 | ) | (175,719 | ) | ||
Additions to property, plant and equipment - property acquisitions | (20,100 | ) | (30,410 | ) | ||
Repayment of bank debt | (153,000 | ) | (85,000 | ) | ||
Repurchase of shares of Common Stock | (1,314 | ) | (10,000 | ) | ||
Net changes in assets and liabilities from operating activities | (40,652 | ) | (28,105 | ) | ||
Settlement of asset retirement obligations | (456 | ) | (462 | ) | ||
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents | (402 | ) | (1,060 | ) | ||
(474,475 | ) | (330,756 | ) | |||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | $ | 106,958 | $ | (13,890 | ) |
(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) | |||||
July 1-31, 2018 | — | — | — | 18,800,320 | ||||
August 1-31, 2018 | 35,200 | 3.00 | 35,200 | 18,765,120 | ||||
September 1- 30, 2018 | — | — | — | 18,765,120 | ||||
35,200 | 3.00 | 35,200 | 18,765,120 |
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 | Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on July 23, 2018 (SEC File No. 001-34018). | ||
31.1 | Filed herewith. | ||
31.2 | Filed herewith. | ||
32.1 | Furnished herewith. |
Date: November 1, 2018 | /s/ Gary S. Guidry | |
By: Gary S. Guidry | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
Date: November 1, 2018 | /s/ Ryan Ellson | |
By: Ryan Ellson | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
Date: November 1, 2018 | /s/ Gary S. Guidry |
By: Gary S. Guidry | |
President and Chief Executive Officer | |
(Principal Executive Officer) |
Date: November 1, 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 |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 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 | 391,347,284 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Entity Emerging Growth | false | |
Entity Small Business | false |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
EXPENSES | ||||
Operating | $ 29,511 | $ 21,931 | $ 78,019 | $ 60,547 |
Workover | 13,106 | 5,390 | 25,922 | 17,919 |
Transportation | 7,505 | 6,038 | 21,024 | 19,472 |
Depletion, depreciation and accretion (Note 3) | 51,630 | 35,279 | 137,698 | 93,968 |
General and administrative (Note 3) | 13,811 | 8,651 | 37,173 | 26,876 |
Severance | 1,004 | 1,164 | 2,015 | 1,164 |
Equity tax | 0 | 0 | 0 | 1,224 |
Foreign exchange (gain) loss | (888) | (1,271) | 94 | 779 |
Financial instruments (gain) loss (Note 10) | (4,874) | 1,675 | 6,840 | (5,211) |
Interest expense (Note 5) | 7,404 | 3,989 | 20,274 | 10,415 |
EXPENSES | 118,209 | 82,846 | 329,059 | 227,153 |
LOSS ON SALE | 0 | 0 | (292) | (9,076) |
INTEREST INCOME | 725 | 301 | 2,121 | 954 |
INCOME BEFORE INCOME TAXES (Note 3) | 57,634 | 21,223 | 149,562 | 59,280 |
INCOME TAX EXPENSE (RECOVERY) | ||||
Current (Note 8) | 19,108 | 4,333 | 36,224 | 13,522 |
Deferred (Note 8) | (36,769) | 13,760 | (118) | 36,664 |
INCOME TAX EXPENSE (RECOVERY) | (17,661) | 18,093 | 36,106 | 50,186 |
NET AND COMPREHENSIVE INCOME | $ 75,295 | $ 3,130 | $ 113,456 | $ 9,094 |
NET INCOME (LOSS) PER SHARE - BASIC (in dollars per share) | $ 0.19 | $ 0.01 | $ 0.29 | $ 0.02 |
NET INCOME (LOSS) PER SHARE - DILUTED (in dollars per share) | $ 0.18 | $ 0.01 | $ 0.28 | $ 0.02 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 6) (in shares) | 391,209,589 | 394,771,194 | 391,185,636 | 397,439,007 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 6) (in shares) | 427,947,959 | 394,774,953 | 427,416,964 | 397,450,637 |
Oil and Gas Service | ||||
OIL AND NATURAL GAS SALES (Notes 3 and 7) | $ 175,118 | $ 103,768 | $ 476,792 | $ 294,555 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common Stock, shares issued (in shares) | 391,339,489 | 385,191,042 |
Common Stock, Shares, Outstanding | 391,339,489 | 385,191,042 |
Exchangeable shares, shares issued (in shares) | 6,111,665 | |
Exchangeable shares, shares outstanding (in shares) | 6,111,665 | |
Common Stock and exchangeable shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Description of Business |
9 Months Ended |
---|---|
Sep. 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 |
9 Months Ended |
---|---|
Sep. 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 are the same as the effective date and transition requirements in ASU 2016-02. The Company is planning to adopt ASU 2018-01 upon transition to ASU 2016-02 "Leases". The Company has completed an assessment of its contract inventory, identified contracts which meet the definition of a lease and is currently determining the value of right-of-use lease assets and lease liabilities and transition adjustments. The Company expects to use practical expedients available for land easements and short-term leases and will apply the guidance of ASU 2016-02 using a modified retrospective transition approach. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, "Changes to the Disclosure Requirements for Fair Value Measurement". ASU 2018-13 will modify certain fair value measurements disclosure requirements. ASU 2018-13 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The disclosure amendments on changes in unrealized gains and losses, and disclosure requirements for significant unobservable inputs used to develop Level 3 fair value measurements, should be applied prospectively. All other amendments in ASU 2018-13 should be applied retrospectively. Early adoption is permitted. The application of ASU 2018-13 will not impact the Company’s consolidated financial position, results of operations or cash flows. Intangibles - Goodwill and Other - Internal-use Software In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract". ASU 2018-15 clarifies requirements for capitalization of software development costs and requires that a hosting arrangement that is a service contract to be capitalized and expensed over the term of the hosting arrangement. ASU 2018-15 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The provisions of this amendment should be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently assessing the impact this update will have on its consolidated financial position, results of operations, cash flows, and disclosure. |
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 |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment On August 6, 2018, the Company acquired a working interest ("WI") in the VMM-2 block in the Middle Magdalena Valley Basin for cash consideration of $17.0 million, of which $6.2 million was allocated to proved properties. On June 20, 2018, the Company acquired the remaining WI in the Alea 1848-A and 1947-C Blocks in the Putumayo Basin for cash consideration of $3.1 million. Subsequent to September 30, 2018, the Company acquired the remaining 45% WI in the PUT-1 Block in the Putumayo Basin for cash consideration of $28.1 million. |
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 September 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 wholly-owned 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 for each exchangeable share, 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 nine months ended September 30, 2018:
Stock-based compensation expense for the three and nine months ended September 30, 2018, was $10.3 million and $20.5 million, respectively, and was primarily recorded in general and administrative ("G&A") expenses (three and nine months ended September 30, 2017 - $1.8 million and $4.9 million, respectively). At September 30, 2018, there was $24.2 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 1.7 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 and nine months ended September 30, 2018, 3,198,865 and 5,436,667 options, respectively, (three and nine months ended September 30, 2017 - 9,259,811 and 9,744,747 options, respectively), on a weighted average basis, 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 nine months ended September 30, 2018, the numerator used in the computation of diluted earnings per share included net income for the period adjusted for interest after tax on convertible debentures and amortization of debt issuance costs of $1.7 million and $5.2 million, respectively. |
Revenue |
9 Months Ended |
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Sep. 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 nine months ended September 30, 2018, 100% (three and nine months ended September 30, 2017 - 100%) of the Company's revenue resulted from oil sales. During the three and nine months ended September 30, 2018, quality and transportation discounts were 13% and 14% respectively, of the ICE Brent price (three and nine months ended September 30, 2017 - 21% and 22%, respectively). During the three and nine months ended September 30, 2018, the Company's production was sold primarily to two major customers in Colombia (three and nine months ended September 30, 2017 - three). As at September 30, 2018, accounts receivable included $8.9 million of accrued sales revenue related to September 2018 production (December 31, 2017 - $11.1 million related to December 31, 2017 production). |
Taxes |
9 Months Ended |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The Company's effective tax rate was 24% in the nine months ended September 30, 2018, compared with 85% in the comparative period in 2017. Current income tax expense was higher in the nine months ended September 30, 2018, compared with the corresponding period in 2017, primarily as a result of higher taxable income in Colombia. The deferred income tax recovery of $0.1 million for the nine months ended September 30, 2018 was primarily due to the impact of the release of a portion of the valuation allowance in Colombia, partially offset by the excess tax depreciation compared with accounting depreciation in Colombia. For the nine months ended September 30, 2018, the difference between the effective tax rate of 24% and the 21% U.S. statutory rate was primarily due to the impact of foreign taxes, which was partially offset by a decrease in the valuation allowance and other permanent differences. For the comparative period in 2017, the 85% effective tax rate differed from the U.S. statutory rate of 35% primarily due to the impact of foreign taxes and an increase in the valuation allowance, which were partially offset by other permanent differences. The Tax Cuts and Jobs Act (the "Act") was enacted in the US on December 22, 2017. The Act reduced the US federal corporate income tax rate to 21% from 35%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign-sourced earnings. In 2017, the Company recorded provisional amounts for the enactment-date effects of the Act that included adjusting deferred tax assets (before valuation allowance), by applying the guidance in SAB 118, because it had not yet completed its enactment-date accounting for these effects. In the period ended September 30, 2018, the Company filed its US Federal 2017 tax return, whereby the provisional amounts recorded in 2017 were finalized and closed. The changes to the 2017 enactment-date provisional amounts resulted in a $9.4 million increased Foreign Tax Credit carryover balance, which was fully offset by a corresponding increase in the related valuation allowance. |
Contingencies |
9 Months Ended |
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Sep. 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 $53.7 million as at September 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 September 30, 2018, the Company had provided letters of credit and other credit support totaling $78.3 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 September 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 from Canadian public markets, including the TSX Venture Exchange and alternative trading platforms, at September 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 September 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 nine months ended September 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 nine months ended September 30, 2018, this investment gain was unrealized. Financial instruments not recorded at fair value include the Senior Notes and the Convertible Notes. At September 30, 2018, the carrying amounts of the Senior Notes and the Convertible Notes were $288.9 million and $111.8 million, respectively, which represented the aggregate principal amount less unamortized debt issuance costs, and the fair values were $293.8 million and $153.3 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 September 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 September 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 September 30, 2018, the Company had outstanding foreign currency derivative positions as follows:
(1) At September 30, 2018 foreign exchange rate. |
Supplemental Cash Flow Information |
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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) |
9 Months Ended |
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Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements/Recently Issued but Not Yet 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 are the same as the effective date and transition requirements in ASU 2016-02. The Company is planning to adopt ASU 2018-01 upon transition to ASU 2016-02 "Leases". The Company has completed an assessment of its contract inventory, identified contracts which meet the definition of a lease and is currently determining the value of right-of-use lease assets and lease liabilities and transition adjustments. The Company expects to use practical expedients available for land easements and short-term leases and will apply the guidance of ASU 2016-02 using a modified retrospective transition approach. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, "Changes to the Disclosure Requirements for Fair Value Measurement". ASU 2018-13 will modify certain fair value measurements disclosure requirements. ASU 2018-13 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The disclosure amendments on changes in unrealized gains and losses, and disclosure requirements for significant unobservable inputs used to develop Level 3 fair value measurements, should be applied prospectively. All other amendments in ASU 2018-13 should be applied retrospectively. Early adoption is permitted. The application of ASU 2018-13 will not impact the Company’s consolidated financial position, results of operations or cash flows. Intangibles - Goodwill and Other - Internal-use Software In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract". ASU 2018-15 clarifies requirements for capitalization of software development costs and requires that a hosting arrangement that is a service contract to be capitalized and expensed over the term of the hosting arrangement. ASU 2018-15 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The provisions of this amendment should be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently assessing the impact this update will have on its consolidated financial position, results of operations, cash flows, and disclosure. |
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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Debt and Debt Issuance Costs (Tables) |
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Schedule of Debt | The Company's debt at September 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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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 nine months ended September 30, 2018:
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Schedule of Weighted Average Shares Outstanding | Weighted Average Shares Outstanding
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Financial Instruments and Fair Value Measurement (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 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 September 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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Schedule of Fair Value of Long-term Investments | 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 September 30, 2018, the Company had outstanding commodity price derivative positions as follows:
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Schedule of Outstanding Foreign Currency Derivative Positions | At September 30, 2018, the Company had outstanding foreign currency derivative positions as follows:
(1) At September 30, 2018 foreign exchange rate. |
Supplemental Cash Flow Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 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:
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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:
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Significant Accounting Policies (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
day
| |
Accounting Policies [Abstract] | |
Payment terms, number of days | 3 |
Segment and Geographic Reporting - Schedule of Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 1,248,380 | $ 1,099,224 |
Goodwill | 102,581 | 102,581 |
All other assets | 399,676 | 227,814 |
Total Assets | 1,750,637 | 1,429,619 |
Reportable Segments | Colombia | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,246,979 | 1,096,833 |
Goodwill | 102,581 | 102,581 |
All other assets | 226,733 | 176,980 |
Total Assets | 1,576,293 | 1,376,394 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,401 | 2,391 |
Goodwill | 0 | 0 |
All other assets | 172,943 | 50,834 |
Total Assets | $ 174,344 | $ 53,225 |
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions |
Nov. 01, 2018 |
Aug. 06, 2018 |
Jun. 20, 2018 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Payments to acquire oil and gas property | $ 3.1 | ||
Middle Magdalena Valley Basin | |||
Property, Plant and Equipment [Line Items] | |||
Payments to acquire oil and gas property | $ 17.0 | ||
PUT-1 Block In The Putumayo Basin | Subsequent Event | |||
Property, Plant and Equipment [Line Items] | |||
Payments to acquire oil and gas property | $ 28.1 | ||
Business acquisition, percentage of working interests acquired | 45.00% | ||
Proved Oil and Gas Properties | Middle Magdalena Valley Basin | |||
Property, Plant and Equipment [Line Items] | |||
Payments to acquire oil and gas property | $ 6.2 |
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) |
Sep. 30, 2018 |
Feb. 15, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (16,011,000) | $ (6,458,000) | |
Long-term debt | 398,989,000 | 256,542,000 | |
Convertible notes | |||
Debt Instrument [Line Items] | |||
Convertible senior notes and revolving credit facility | 115,000,000 | 115,000,000 | |
Revolving credit facility | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Convertible senior notes and revolving credit facility | 0 | 148,000,000 | |
Senior Notes Unsecured 6.25% | Senior notes | |||
Debt Instrument [Line Items] | |||
Convertible senior notes and revolving credit facility | $ 300,000,000 | $ 300,000,000 | $ 0 |
Debt and Debt Issuance Costs - Schedule of Interest Expense Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Debt Disclosure [Abstract] | ||||
Contractual interest and other financing expenses | $ 6,588 | $ 3,346 | $ 17,945 | $ 8,547 |
Amortization of debt issuance costs | 816 | 643 | 2,329 | 1,868 |
Total interest expense recognized | $ 7,404 | $ 3,989 | $ 20,274 | $ 10,415 |
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 24.2 | $ 24.2 | $ 13.7 | ||
Weighted average period for recognition | 1 year 8 months 12 days | ||||
General and administrative (G&A) expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 10.3 | $ 1.8 | $ 20.5 | $ 4.9 |
Share Capital - Schedule of Weighted Average Shares Outstanding (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Weighted average number of common and exchangeable shares outstanding (in shares) | 391,209,589 | 394,771,194 | 391,185,636 | 397,439,007 |
Shares issuable pursuant to stock options (in shares) | 6,509,385 | 61,325 | 4,295,964 | 187,150 |
Shares assumed to be purchased from proceeds of stock options (in shares) | (5,585,408) | (57,566) | (3,879,029) | (175,520) |
Shares issuable pursuant to convertible notes (in shares) | 35,814,393 | 0 | 35,814,393 | 0 |
Weighted average number of diluted common and exchangeable shares outstanding (in shares) | 427,947,959 | 394,774,953 | 427,416,964 | 397,450,637 |
Share Capital - Weighted Average Shares Outstanding (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Convertible debt interest and amortized debt issuance costs | $ 1.7 | $ 5.2 | ||
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) | 3,198,865 | 9,259,811 | 5,436,667 | 9,744,747 |
Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Concentration Risk [Line Items] | |||||
Variable adjustment for transportation, location, quality, and other elements, percentage | 13.00% | 21.00% | 14.00% | 22.00% | |
Accrued sales revenue | $ 8.9 | $ 8.9 | $ 11.1 | ||
Product Concentration Risk | Revenue from Contract with Customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 99.95432% | 99.68006% | 100.00% | 100.00% |
Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 24.00% | 85.00% | ||
Deferred tax (recovery) expense | $ (36,769) | $ 13,760 | $ (118) | $ 36,664 |
Tax cuts and jobs act of 2017, foreign tax credit carryforward, increase | $ 9,400 | $ 9,400 |
Contingencies (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Loss Contingencies [Line Items] | ||
Letters of credit and other credit support provided | $ 78,300,000 | $ 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 | 53,700,000 | |
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 |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Investment in PetroTal shares - current and long-term | $ 55,231 | $ 44,202 |
Assets, fair value disclosure | 55,331 | 44,504 |
PSU, DSU and RSU liability - current and long-term | 31,182 | 11,430 |
Liabilities, fair value disclosure | 48,870 | 32,581 |
Foreign currency derivative asset | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency derivative asset | 100 | 302 |
Commodity Hedge | ||
Derivatives, Fair Value [Line Items] | ||
Commodity price derivative liability | $ 17,688 | $ 21,151 |
Financial Instruments and Fair Value Measurement - Schedule of Gains or Losses on Financial Instruments Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Investment gain | $ (6,328) | $ 0 | $ (12,045) | $ 0 |
Financial instruments (gain) loss | (4,874) | 1,675 | 6,840 | (5,211) |
Commodity price derivative loss (gain) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative (loss) gain | 929 | 2,489 | 20,384 | (3,759) |
Foreign currency derivatives loss (gain) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative (loss) gain | $ 525 | $ (814) | $ (1,499) | $ (1,452) |
Financial Instruments and Fair Value Measurement - Narrative (Details) $ in Millions |
Sep. 30, 2018
USD ($)
|
---|---|
Carrying amount | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | $ 288.9 |
Value of the notes | 111.8 |
Fair value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | 293.8 |
Value of the notes | $ 153.3 |
Financial Instruments and Fair Value Measurement - Rollforward of Level 3 Financial Asset (Details) - Equity Securities - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance, investment - long-term | $ 19,147 | $ 0 |
Acquisition | 0 | 19,091 |
Transfer from long-term (Level 3) to current (Level 1) | (4,787) | 0 |
Unrealized valuation gain | 5,332 | 56 |
Unrealized foreign exchange loss | (2,069) | 0 |
Closing balance, investment - long-term | $ 17,623 | $ 19,147 |
Financial Instruments and Fair Value Measurement - Schedule of Outstanding Foreign Currency Derivative Positions (Details) - Collars: October 1, 2018 to December 31, 2018 $ in Thousands, $ in Millions |
Sep. 30, 2018
COP ($)
$ / collar
|
Sep. 30, 2018
USD ($)
$ / collar
|
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount hedged | $ 43,500 | $ 14,636 |
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 |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 130,158 | $ 12,326 | $ 15,125 | $ 25,175 |
Restricted cash and cash equivalents - current | 1,228 | 11,787 | 3,920 | 8,322 |
Restricted cash and cash equivalents - long-term (included in other long-term assets) | 2,250 | 2,565 | 10,332 | 9,770 |
Cash, cash equivalents and restricted cash and cash equivalents | $ 133,636 | $ 26,678 | $ 29,377 | $ 43,267 |
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable and other long-term assets | $ (35,934) | $ 8,356 |
Derivatives | 21,645 | 0 |
Inventory | (3,375) | (28) |
Prepaids | 489 | 3,080 |
Accounts payable and accrued and other long-term liabilities | 5,380 | 5,951 |
Taxes receivable and payable | (28,857) | (45,464) |
Net changes in assets and liabilities from operating activities | $ (40,652) | $ (28,105) |
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Supplemental Cash Flow Elements [Abstract] | ||
Net liabilities related to property, plant and equipment, end of period | $ 100,790 | $ 68,018 |
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