Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
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 | ' | 272,948,937 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Retained Earnings (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUE AND OTHER INCOME | ' | ' |
Oil and natural gas sales | $168,525 | $204,780 |
Interest income | 1,154 | 591 |
Total revenue and other income | 169,679 | 205,371 |
EXPENSES | ' | ' |
Operating | 28,293 | 41,015 |
Depletion, depreciation, accretion and impairment | 53,157 | 58,412 |
General and administrative | 15,204 | 11,421 |
Foreign exchange loss (gain) | 126 | -5,229 |
Financial instruments gain (Note 9) | -2,409 | 0 |
Other loss (Notes 8 and 9) | 0 | 4,400 |
Total expenses | 94,371 | 110,019 |
INCOME BEFORE INCOME TAXES | 75,308 | 95,352 |
Income tax expense (Note 7) | -30,179 | -37,439 |
NET INCOME AND COMPREHENSIVE INCOME | 45,129 | 57,913 |
RETAINED EARNINGS, BEGINNING OF PERIOD | 410,961 | 284,673 |
RETAINED EARNINGS, END OF PERIOD | $456,090 | $342,586 |
NET INCOME PER SHARE — BASIC (in dollars per share) | $0.16 | $0.21 |
NET INCOME PER SHARE — DILUTED (in dollars per share) | $0.16 | $0.20 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 5) | 283,235,202 | 282,138,525 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 5) | 288,636,904 | 285,026,183 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $390,953 | $428,800 |
Restricted cash | 394 | 1,478 |
Accounts receivable | 106,517 | 49,703 |
Other financial instruments (Note 9) | 2,409 | 0 |
Inventory (Note 4) | 14,407 | 13,725 |
Taxes receivable | 13,921 | 9,980 |
Prepaids | 7,025 | 6,450 |
Deferred tax assets (Note 7) | 770 | 2,256 |
Total Current Assets | 536,396 | 512,392 |
Oil and Gas Properties (using the full cost method of accounting) | ' | ' |
Proved | 795,830 | 794,069 |
Unproved | 489,817 | 456,001 |
Total Oil and Gas Properties | 1,285,647 | 1,250,070 |
Other capital assets | 10,059 | 10,102 |
Total Property, Plant and Equipment (Note 4) | 1,295,706 | 1,260,172 |
Other Long-Term Assets | ' | ' |
Restricted cash | 2,876 | 2,300 |
Deferred tax assets (Note 7) | 1,375 | 1,407 |
Taxes receivable | 14,246 | 18,535 |
Other long-term assets | 6,815 | 7,163 |
Goodwill | 102,581 | 102,581 |
Total Other Long-Term Assets | 127,893 | 131,986 |
Total Assets | 1,959,995 | 1,904,550 |
Current Liabilities | ' | ' |
Accounts payable | 51,734 | 72,400 |
Accrued liabilities | 103,692 | 89,567 |
Taxes payable | 121,877 | 102,887 |
Deferred tax liabilities (Note 7) | 1,265 | 1,193 |
Asset retirement obligation (Note 6) | 518 | 518 |
Total Current Liabilities | 279,086 | 266,565 |
Long-Term Liabilities | ' | ' |
Deferred tax liabilities (Note 7) | 169,798 | 177,082 |
Asset retirement obligation (Note 6) | 22,654 | 21,455 |
Other long-term liabilities | 10,776 | 9,540 |
Total Long-Term Liabilities | 203,228 | 208,077 |
Contingencies (Note 8) | ' | ' |
Shareholders’ Equity | ' | ' |
Common Stock (Note 5) (272,792,843 and 272,327,810 shares of Common Stock and 10,528,740 and 10,882,440 exchangeable shares, par value $0.001 per share, issued and outstanding as at March 31, 2014, and December 31, 2013, respectively) | 10,187 | 10,187 |
Additional paid in capital | 1,011,404 | 1,008,760 |
Retained earnings | 456,090 | 410,961 |
Total Shareholders’ Equity | 1,477,681 | 1,429,908 |
Total Liabilities and Shareholders’ Equity | $1,959,995 | $1,904,550 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common shares, par value (in dollars per share) | $0.00 | $0.00 |
Common shares, issued | 272,792,843 | 272,327,810 |
Common shares, outstanding | 272,792,843 | 272,327,810 |
Exchangeable shares, issued | 10,528,740 | 10,528,740 |
Exchangeable shares, outstanding | 10,528,740 | 10,528,740 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income | $45,129 | $57,913 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depletion, depreciation, accretion and impairment | 53,157 | 58,412 |
Deferred tax recovery (Note 7) | -2,260 | -7,450 |
Stock-based compensation | 1,591 | 2,067 |
Unrealized foreign exchange gain | -4,178 | -6,744 |
Unrealized financial instrument gain (Note 9) | -2,409 | 0 |
Other loss (Notes 8 and 9) | 0 | 4,400 |
Net change in assets and liabilities from operating activities | ' | ' |
Accounts receivable and other long-term assets | -54,728 | -29,387 |
Inventory | -318 | 11,643 |
Prepaids | -575 | -258 |
Accounts payable and accrued and other liabilities | -19,259 | -14,731 |
Taxes receivable and payable | 20,014 | 33,926 |
Net cash provided by operating activities | 36,164 | 109,791 |
Investing Activities | ' | ' |
Decrease (increase) in restricted cash | 507 | -738 |
Additions to property, plant and equipment | -75,146 | -87,378 |
Net cash used in investing activities | -74,639 | -88,116 |
Financing Activities | ' | ' |
Proceeds from issuance of shares of Common Stock (Note 5) | 628 | 1,611 |
Net cash provided by financing activities | 628 | 1,611 |
Net (decrease) increase in cash and cash equivalents | -37,847 | 23,286 |
Cash and cash equivalents, beginning of period | 428,800 | 212,624 |
Cash and cash equivalents, end of period | 390,953 | 235,910 |
Cash | 368,142 | 230,767 |
Term deposits | 22,811 | 5,143 |
Supplemental cash flow disclosures: | ' | ' |
Cash paid for income taxes | 7,453 | 13,103 |
Non-cash investing activities: | ' | ' |
Net liabilities related to property, plant and equipment, end of period | $87,859 | $66,536 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Total | Share Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
In Thousands, unless otherwise specified | ||||
Balance, beginning of period at Dec. 31, 2011 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Issue of shares of Common Stock (Note 5) | ' | $2,201 | ' | ' |
Exercise of stock options (Note 5) | ' | ' | 1,570 | ' |
Stock-based compensation (Note 5) | ' | ' | 8,418 | ' |
Net income | ' | ' | ' | 126,288 |
Balance, end of period at Dec. 31, 2012 | ' | 7,986 | 998,772 | 284,673 |
Balance, beginning of period at Dec. 31, 2013 | 1,429,908 | 10,187 | 1,008,760 | 410,961 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Issue of shares of Common Stock (Note 5) | ' | 0 | ' | ' |
Exercise of stock options (Note 5) | ' | ' | 628 | ' |
Stock-based compensation (Note 5) | ' | ' | 2,016 | ' |
Net income | 45,129 | ' | ' | 45,129 |
Balance, end of period at Mar. 31, 2014 | $1,477,681 | $10,187 | $1,011,404 | $456,090 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Gran Tierra Energy Inc., a Nevada corporation (the “Company” or “Gran Tierra”), is a publicly traded oil and gas company engaged in the acquisition, exploration, development and production of oil and natural gas properties. The Company’s principal business activities are in Colombia, Argentina, Peru and Brazil. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
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, 2013, included in the Company’s 2013 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2014. | |
The Company’s significant accounting policies are described in Note 2 of the consolidated financial statements which are included in the Company’s 2013 Annual Report on Form 10-K and are the same policies followed in these interim unaudited condensed consolidated financial statements, except as disclosed below. The Company has evaluated all subsequent events through to the date these interim unaudited condensed consolidated financial statements were issued. | |
Foreign Currency Derivatives | |
In February 2014, the Company purchased Colombian peso non-deliverable forward contracts for purposes of fixing the exchange rate at which it will purchase Colombian pesos to settle its income tax installment payments due in April and June 2014 (Note 9). The Company does not intend to issue or hold derivative financial instruments for speculative trading purposes. | |
The Company records derivative instruments on the balance sheet as either an asset or liability measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation, which is established at the inception of a derivative. Generally because of the short-term nature of the contracts and their limited use, the Company does not apply hedge accounting, and changes in the fair value of those contracts are reflected in net income as financial instrument gains or losses in the condensed consolidated statement of operations. Cash settlements of the Company's derivative arrangements are classified as operating cash flows. | |
The fair value of foreign currency derivatives is based on the maturity value of the foreign exchange non-deliverable forward contracts, using applicable forward exchange rates. The most significant variable to the cash flow calculations is the estimation of forward foreign exchange rates. The resulting net future cash inflows or outflows at maturity of the contracts are the net value of the contract. | |
Recently Adopted Accounting Pronouncements | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013- 04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date”. The ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows or disclosure. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". The ASU provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows, or disclosure. |
Segment_and_Geographic_Reporti
Segment and Geographic Reporting | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
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. The Company’s reportable segments are Colombia, Argentina, Peru and Brazil based on geographic organization. The level of activity in Brazil was not significant at March 31, 2014, or December 31, 2013; however, the Company has separately disclosed its results of operations in Brazil as a reportable segment. The All Other category represents the Company’s corporate activities. The Company evaluates reportable segment performance based on income or loss before income taxes. | ||||||||||||||||||||||||
The following tables present information on the Company’s reportable segments and other activities: | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 144,935 | $ | 17,420 | $ | — | $ | 6,170 | $ | — | $ | 168,525 | ||||||||||||
Interest income | 137 | 404 | — | 425 | 188 | 1,154 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 41,250 | 8,893 | 208 | 2,579 | 227 | 53,157 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 25.44 | 32.23 | — | 38.89 | — | 27.07 | ||||||||||||||||||
Income (loss) before income taxes | 86,011 | (4,152 | ) | (2,058 | ) | 1,950 | (6,443 | ) | 75,308 | |||||||||||||||
Segment capital expenditures | 50,543 | 6,536 | 20,893 | 10,366 | 299 | 88,637 | ||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 180,003 | $ | 18,540 | $ | — | $ | 6,237 | $ | — | $ | 204,780 | ||||||||||||
Interest income | 161 | 243 | 14 | 9 | 164 | 591 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 45,956 | 7,950 | 62 | 4,171 | 273 | 58,412 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 26.32 | 26.68 | — | 65.34 | — | 27.71 | ||||||||||||||||||
Income (loss) before income taxes | 101,668 | (1,636 | ) | (1,227 | ) | (439 | ) | (3,014 | ) | 95,352 | ||||||||||||||
Segment capital expenditures | 30,407 | 4,805 | 29,247 | 14,539 | 11 | 79,009 | ||||||||||||||||||
The Company’s revenues are derived principally from uncollateralized sales to customers in the oil and natural gas industry. The concentration of credit risk in a single industry affects the Company’s overall exposure to credit risk because customers may be similarly affected by changes in economic and other conditions. | ||||||||||||||||||||||||
In the three months ended March 31, 2014, the Company had two significant customers in Colombia: Ecopetrol S.A. ("Ecopetrol") and one other customer, which accounted for 43% and 37%, respectively, of the Company's consolidated oil and natural gas sales. In the three months ended March 31, 2013, the Company had three significant customers in Colombia, Ecopetrol and two other customers, which accounted for 54%, 21% and 11%, respectively, of the Company's consolidated oil and natural gas sales. | ||||||||||||||||||||||||
As at March 31, 2014 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 859,500 | $ | 92,103 | $ | 199,216 | $ | 141,773 | $ | 3,114 | $ | 1,295,706 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
All other assets | 262,269 | 35,646 | 27,850 | 24,336 | 211,607 | 561,708 | ||||||||||||||||||
Total Assets | $ | 1,224,350 | $ | 127,749 | $ | 227,066 | $ | 166,109 | $ | 214,721 | $ | 1,959,995 | ||||||||||||
As at December 31, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 850,359 | $ | 94,366 | $ | 178,531 | $ | 133,874 | $ | 3,042 | $ | 1,260,172 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
All other assets | 233,336 | 39,209 | 24,240 | 24,477 | 220,535 | 541,797 | ||||||||||||||||||
Total Assets | $ | 1,186,276 | $ | 133,575 | $ | 202,771 | $ | 158,351 | $ | 223,577 | $ | 1,904,550 | ||||||||||||
Property_Plant_and_Equipment_a
Property, Plant and Equipment and Inventory | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||||||||||
Property, Plant and Equipment and Inventory | ' | |||||||||||||||||||||||
Property, Plant and Equipment and Inventory | ||||||||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||||
As at March 31, 2014 | As at December 31, 2013 | |||||||||||||||||||||||
(Thousands of U.S. Dollars) | Cost | Accumulated | Net book value | Cost | Accumulated | Net book value | ||||||||||||||||||
depletion, | depletion, | |||||||||||||||||||||||
depreciation | depreciation | |||||||||||||||||||||||
and | and | |||||||||||||||||||||||
impairment | impairment | |||||||||||||||||||||||
Oil and natural gas properties | ||||||||||||||||||||||||
Proved | $ | 1,853,547 | $ | (1,057,717 | ) | $ | 795,830 | $ | 1,799,544 | $ | (1,005,475 | ) | $ | 794,069 | ||||||||||
Unproved | 489,817 | — | 489,817 | 456,001 | — | 456,001 | ||||||||||||||||||
2,343,364 | (1,057,717 | ) | 1,285,647 | 2,255,545 | (1,005,475 | ) | 1,250,070 | |||||||||||||||||
Furniture and fixtures and leasehold improvements | 9,182 | (6,989 | ) | 2,193 | 8,919 | (6,568 | ) | 2,351 | ||||||||||||||||
Computer equipment | 15,297 | (8,019 | ) | 7,278 | 14,786 | (7,605 | ) | 7,181 | ||||||||||||||||
Automobiles | 1,425 | (837 | ) | 588 | 1,381 | (811 | ) | 570 | ||||||||||||||||
Total Property, Plant and Equipment | $ | 2,369,268 | $ | (1,073,562 | ) | $ | 1,295,706 | $ | 2,280,631 | $ | (1,020,459 | ) | $ | 1,260,172 | ||||||||||
Depletion and depreciation expense on property, plant and equipment for the three months ended March 31, 2014, was $53.1 million (three months ended March 31, 2013 - $54.6 million). A portion of depletion and depreciation expense was recorded as inventory in each period and adjusted for inventory changes. | ||||||||||||||||||||||||
In Brazil, the exploration phase of the concession agreements on Blocks REC-T-129, REC-T-142 and REC-T-155 were each due to expire on November 24, 2013, and the exploration phase of the concession agreement on Block REC-T-224 was due to expire on December 11, 2013; however, under the concession agreements the Company was able and did submit applications to the Agência Nacional de Petróleo, Gás Natural e Biocombustíveis ("ANP") for extensions or suspensions of the exploration phases of these blocks. The Company has not yet received a decision from the ANP regarding these extension or suspension applications. At March 31, 2014, unproved properties included $71.9 million relating to exploration expenditures on these four blocks. Management assessed these blocks for impairment at March 31, 2014, and concluded no impairment had occurred. | ||||||||||||||||||||||||
In Argentina, Rio Negro Province has enacted legislation that changes the royalty regime associated with concession agreement extensions. The Company is negotiating concession agreement extensions and royalty rates for its Puesto Morales, Puesto Morales Este, Rinconada Norte and Rinconada Sur Blocks and expects that royalty rates in Rio Negro Province will likely increase and a bonus payment, not determinable at this time, may be payable for the concession agreement extensions. | ||||||||||||||||||||||||
Unproved oil and natural gas properties consist of exploration lands held in Colombia, Argentina, Peru and Brazil. As at March 31, 2014, the Company had $184.0 million (December 31, 2013 - $176.1 million) of unproved assets in Colombia, $17.7 million (December 31, 2013 - $18.2 million) of unproved assets in Argentina, $198.1 million (December 31, 2013 - $177.5 million) of unproved assets in Peru, and $90.0 million (December 31, 2013 - $84.2 million) of unproved assets in Brazil for a total of $489.8 million (December 31, 2013 - $456.0 million). These properties are being held for their exploration value and are not being depleted pending determination of the existence of proved reserves. Gran Tierra will continue to assess the unproved properties over the next several years as proved reserves are established and as exploration warrants whether or not future areas will be developed. | ||||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||
At March 31, 2014, oil and supplies inventories were $12.1 million and $2.3 million, respectively (December 31, 2013 - $11.7 million and $2.0 million, respectively). |
Share_Capital
Share Capital | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Share Capital | ' | ||||||||
Share Capital | |||||||||
The Company’s authorized share capital consists of 595,000,002 shares of capital stock, of which 570 million are designated as Common Stock, par value $0.001 per share, 25 million are designated as Preferred Stock, par value $0.001 per share, and two shares are designated as special voting stock, par value $0.001 per share. | |||||||||
As at March 31, 2014, outstanding share capital consists of 272,792,843 shares of Common Stock of the Company, 5,994,613 exchangeable shares of Gran Tierra Exchangeco Inc., (the "Exchangeco exchangeable shares") and 4,534,127 exchangeable shares of Gran Tierra Goldstrike Inc. (the "Goldstrike exchangeable shares"). The redemption date for the Exchangeco exchangeable shares and the Goldstrike exchangeable shares is a date to be established by the applicable Board of Directors. During the three months ended March 31, 2014, 111,333 shares of Common Stock were issued upon the exercise of stock options and 353,700 shares of Common Stock were issued upon the exchange of the Exchangeco exchangeable shares. | |||||||||
The holders of shares of Common Stock are entitled to one vote for each share on all matters submitted to a stockholder vote and are entitled to share in all dividends that the Company’s Board of Directors, in its discretion, declares from legally available funds. The holders of Common Stock have no pre-emptive rights, no conversion rights, and there are no redemption provisions applicable to the shares. Holders of exchangeable shares have substantially the same rights as holders of shares of Common Stock. Each exchangeable share is exchangeable into one share of Common Stock of the Company. | |||||||||
Restricted Stock Units and Stock Options | |||||||||
The Company grants time-vested restricted stock units ("RSUs") to certain officers, employees and consultants. Additionally, the Company grants options to purchase shares of Common Stock to certain directors, officers, employees and consultants. The following table provides information about RSU and stock option activity for the three months ended March 31, 2014: | |||||||||
RSUs | Options | ||||||||
Number of Outstanding Share Units | Number of Outstanding Options | Weighted Average Exercise Price $/Option | |||||||
Balance, December 31, 2013 | 922,045 | 15,668,458 | 5.41 | ||||||
Granted | 835,490 | 2,237,630 | 7.09 | ||||||
Exercised | (292,608 | ) | (111,333 | ) | (5.64 | ) | |||
Forfeited | (17,984 | ) | (84,156 | ) | (6.57 | ) | |||
Expired | — | (67,668 | ) | (6.81 | ) | ||||
Balance, March 31, 2014 | 1,446,943 | 17,642,931 | 5.61 | ||||||
For the three months ended March 31, 2014, 111,333 shares of Common Stock were issued for cash proceeds of $0.6 million upon the exercise of 111,333 stock options (three months ended March 31, 2013 - $1.6 million). | |||||||||
The weighted average grant date fair value for options granted in the three months ended March 31, 2014, was $2.52 (three months ended March 31, 2013 - $3.33). | |||||||||
The amounts recognized for stock-based compensation were as follows: | |||||||||
(Thousands of U.S. Dollars) | Three Months Ended March 31, | ||||||||
2014 | 2013 | ||||||||
Compensation costs for stock options | $ | 2,016 | $ | 2,231 | |||||
Compensation costs for RSUs | 1,244 | — | |||||||
3,260 | 2,231 | ||||||||
Less: stock-based compensation costs capitalized | (783 | ) | (182 | ) | |||||
Stock-based compensation costs expensed | $ | 2,477 | $ | 2,049 | |||||
Of the total compensation expense for the three months ended March 31, 2014, $2.2 million (three months ended March 31, 2013 – $1.8 million) was recorded in general and administrative expenses and $0.3 million (three months ended March 31, 2013 – $0.2 million) was recorded in operating expenses. | |||||||||
At March 31, 2014, there was $16.1 million (December 31, 2013 - $8.1 million) of unrecognized compensation cost related to unvested stock options and RSUs which is expected to be recognized over a weighted average period of 2.2 years. | |||||||||
Net income per share | |||||||||
Basic net income per share is calculated by dividing net income attributable to common shareholders 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 calculated by adjusting the weighted average number of shares of Common Stock and exchangeable shares outstanding for the dilutive effect, if any, of share equivalents. The Company uses the treasury stock method to determine the dilutive effect. This method assumes that all Common Stock equivalents have been exercised at the beginning of the period (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase shares of Common Stock of the Company at the volume weighted average trading price of shares of Common Stock during the period. | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average number of common and exchangeable shares outstanding | 283,235,202 | 282,138,525 | |||||||
Shares issuable pursuant to stock options | 14,553,754 | 5,482,456 | |||||||
Shares assumed to be purchased from proceeds of stock options | (9,152,052 | ) | (2,594,798 | ) | |||||
Weighted average number of diluted common and exchangeable shares outstanding | 288,636,904 | 285,026,183 | |||||||
For the three months ended March 31, 2014, 3,175,152 options (three months ended March 31, 2013 - 9,392,605 options) were excluded from the diluted income per share calculation as the options were anti-dilutive. |
Asset_Retirement_Obligation
Asset Retirement Obligation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Asset Retirement Obligation [Abstract] | ' | |||||||
Asset Retirement Obligation | ' | |||||||
Asset Retirement Obligation | ||||||||
Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: | ||||||||
Three Months Ended | Year Ended | |||||||
(Thousands of U.S. Dollars) | March 31, 2014 | December 31, 2013 | ||||||
Balance, beginning of year | $ | 21,973 | $ | 18,292 | ||||
Settlements | — | (2,068 | ) | |||||
Liability incurred | 786 | 2,623 | ||||||
Foreign exchange | (5 | ) | (25 | ) | ||||
Accretion | 418 | 1,279 | ||||||
Revisions in estimated liability | — | 1,872 | ||||||
Balance, end of period | $ | 23,172 | $ | 21,973 | ||||
Asset retirement obligation - current | $ | 518 | $ | 518 | ||||
Asset retirement obligation - long-term | 22,654 | 21,455 | ||||||
Balance, end of period | $ | 23,172 | $ | 21,973 | ||||
Revisions to estimated liabilities relate primarily to changes in estimates of asset retirement costs and include, but are not limited to, revisions of estimated inflation rates, changes in property lives and the expected timing of settling the asset retirement obligation. At March 31, 2014, the fair value of assets that are legally restricted for purposes of settling the asset retirement obligation was $2.0 million (December 31, 2013 - $1.9 million). These assets are included in restricted cash on the Company's balance sheet. |
Taxes
Taxes | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Taxes | ' | |||||||
Taxes | ||||||||
The income tax expense reported differs from the amount computed by applying the U.S. statutory rate to income before income taxes for the following reasons: | ||||||||
Three Months Ended March 31, | ||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||
Income (loss) before income taxes | ||||||||
United States | $ | (5,078 | ) | $ | (2,091 | ) | ||
Foreign | 80,386 | 97,443 | ||||||
75,308 | 95,352 | |||||||
35 | % | 35 | % | |||||
Income tax expense expected | 26,358 | 33,373 | ||||||
Foreign currency translation adjustments | 4,160 | (1,878 | ) | |||||
Impact of foreign taxes | (1,093 | ) | (224 | ) | ||||
Stock-based compensation | 760 | 686 | ||||||
(Decrease) increase in valuation allowance | (2,439 | ) | 1,844 | |||||
Branch and other foreign loss pick-up | 254 | (827 | ) | |||||
Non-deductible third party royalty in Colombia | 2,223 | 3,547 | ||||||
Other permanent differences | (44 | ) | 918 | |||||
Total income tax expense | $ | 30,179 | $ | 37,439 | ||||
Current income tax expense | ||||||||
United States | $ | 357 | $ | 306 | ||||
Foreign | 32,082 | 44,583 | ||||||
32,439 | 44,889 | |||||||
Deferred income tax recovery | ||||||||
United States | — | — | ||||||
Foreign | (2,260 | ) | (7,450 | ) | ||||
(2,260 | ) | (7,450 | ) | |||||
Total income tax expense | $ | 30,179 | $ | 37,439 | ||||
As at | ||||||||
(Thousands of U.S. Dollars) | March 31, 2014 | 31-Dec-13 | ||||||
Deferred Tax Assets | ||||||||
Tax benefit of operating loss carryforwards | $ | 45,630 | $ | 47,154 | ||||
Tax basis in excess of book basis | 57,340 | 59,168 | ||||||
Foreign tax credits and other accruals | 35,619 | 34,894 | ||||||
Tax benefit of capital loss carryforwards | 4,838 | 4,769 | ||||||
Deferred tax assets before valuation allowance | 143,427 | 145,985 | ||||||
Valuation allowance | (141,282 | ) | (142,322 | ) | ||||
$ | 2,145 | $ | 3,663 | |||||
Deferred tax assets - current | $ | 770 | $ | 2,256 | ||||
Deferred tax assets - long-term | 1,375 | 1,407 | ||||||
2,145 | 3,663 | |||||||
Deferred tax liabilities - current | (1,265 | ) | (1,193 | ) | ||||
Deferred tax liabilities - long-term | (169,798 | ) | (177,082 | ) | ||||
(171,063 | ) | (178,275 | ) | |||||
Net Deferred Tax Liabilities | $ | (168,918 | ) | $ | (174,612 | ) | ||
As at March 31, 2014, the Company had operating loss carryforwards of $206.8 million (December 31, 2013 - $215.4 million) and capital loss carryforwards of $32.8 million (December 31, 2013 – $32.6 million) before valuation allowance. Of these operating loss carryforwards and capital loss carryforwards, $203.5 million (December 31, 2013 - $213.8 million) were losses generated by the foreign subsidiaries of the Company. In certain jurisdictions, the operating loss carryforwards expire between 2014 and 2033 and the capital loss carryforwards expire between 2016 and 2017, while certain other jurisdictions allow operating losses to be carried forward indefinitely. | ||||||||
As at March 31, 2014, the total amount of Gran Tierra’s unrecognized tax benefit was $22.5 million (December 31, 2013 - $22.1 million), approximately $12.8 million of which, if recognized, would affect the Company’s effective tax rate. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified as a component of income taxes in the consolidated statement of operations. | ||||||||
Changes in the Company's unrecognized tax benefit are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(Thousands of U.S. Dollars) | ||||||||
Unrecognized tax benefit at beginning of period | $ | 22,100 | $ | 21,800 | ||||
Decreases for positions relating to prior year | (1,100 | ) | — | |||||
Additions to tax position related to the current year | 1,500 | — | ||||||
Unrecognized tax benefit at end of period | $ | 22,500 | $ | 21,800 | ||||
The Company and its subsidiaries file income tax returns in U.S. federal and state jurisdictions and certain other foreign jurisdictions. The Company is potentially subject to income tax examinations for the tax years 2006 through 2013 in certain jurisdictions. The Company does not anticipate any material changes to the unrecognized tax benefit disclosed above within the next twelve months. | ||||||||
At March 31, 2014, and December 31, 2013, accounts payable included the remaining unpaid balance of equity tax liability, | ||||||||
a Colombian tax of 6% on a legislated measure calculated based on the Company’s Colombian segment’s balance sheet equity for tax purposes at January 1, 2011. The tax is payable in eight semi-annual installments over four years, but was expensed in the first quarter of 2011 at the commencement of the four-year period. The equity tax liability also partially related to an equity tax liability assumed upon an acquisition in 2011. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Gran Tierra Energy Colombia, Ltd. and Petrolifera Petroleum (Colombia) Ltd (collectively “GTEC”) and Ecopetrol, the contracting parties of the Guayuyaco Association Contract, are engaged in a dispute regarding the interpretation of the procedure for allocation of oil produced and sold during the long-term test of the Guayuyaco-1 and Guayuyaco-2 wells, prior to GTEC's purchase of the companies originally involved in the dispute. There has been no agreement between the parties, and Ecopetrol filed a lawsuit in the Contravention Administrative Tribunal in the District of Cauca (the "Tribunal") regarding this matter. During the first quarter of 2013, the Tribunal ruled in favor of Ecopetrol and awarded Ecopetrol 44,025 bbl of oil. GTEC has filed an appeal of the ruling to the Supreme Administrative Court (Consejo de Estado) in a second instance procedure. During the three months ended March 31, 2013, based on market oil prices in Colombia, Gran Tierra accrued $4.4 million in the condensed consolidated financial statements in relation to this dispute (Note 9). | |
Gran Tierra’s production from the Costayaco Exploitation Area is subject to an additional royalty (the "HPR royalty"), which applies when cumulative gross production from an Exploitation Area is greater than five MMbbl. The HPR royalty is calculated on the difference between a trigger price defined in the Chaza Block exploration and production contract (the "Chaza Contract") and the sales price. The Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) (“ANH”) has interpreted the Chaza Contract as requiring that the HPR royalty must be paid with respect to all production from the Moqueta Exploitation Area and initiated a noncompliance procedure under the Chaza Contract, which was contested by Gran Tierra because the Moqueta Exploitation Area and the Costayaco Exploitation Area are separate Exploitation Areas. ANH did not proceed with that noncompliance procedure. Gran Tierra also believes that the evidence shows that the Costayaco and Moqueta fields are two clearly separate and independent hydrocarbon accumulations. Therefore, it is Gran Tierra’s view that, pursuant to the terms of the Chaza Contract, the HPR royalty is only to be paid with respect to production from the Moqueta Exploitation Area when the accumulated oil production from that Exploitation Area exceeds five MMbbl. Discussions with the ANH have not resolved this issue and Gran Tierra has initiated the dispute resolution process under the Chaza Contract and filed an arbitration claim seeking a decision that the HPR royalty is not payable until production from the Moqueta Exploitation Area exceeds five MMbbl. The ANH filed a response to the claim seeking a declaration that its interpretation is correct and a counterclaim seeking, amongst other remedies, declarations that Gran Tierra breached the Chaza Contract by not paying the disputed HPR royalty, that the amount of the alleged HPR royalty that is payable, and that the Chaza Contract be terminated. Gran Tierra filed a response to the ANH's counterclaim and filed its comments on the ANH's responses to Gran Tierra's claim. The ANH filed an amended counterclaim and Gran Tierra filed a response to the ANH's amended counterclaim. As at March 31, 2014, total cumulative production from the Moqueta Exploitation Area was 2.7 MMbbl. The estimated compensation which would be payable on cumulative production to that date if the ANH is successful in the arbitration is $44.9 million. At this time no amount has been accrued in the condensed consolidated financial statements nor deducted from the Company's reserves for the disputed HPR royalty as Gran Tierra does not consider it probable that a loss will be incurred. | |
Additionally, the ANH and Gran Tierra are engaged in discussions regarding the interpretation of whether certain transportation and related costs are eligible to be deducted in the calculation of the HPR royalty. Discussions with the ANH are ongoing. 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 $31.7 million as at March 31, 2014. At this time no amount has been accrued in the financial statements as Gran Tierra does not consider it probable that a loss will be incurred. | |
In addition to the above, Gran Tierra has several other lawsuits and claims pending. Although the outcome of these other lawsuits and disputes cannot be predicted with certainty, Gran Tierra 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 as they are incurred or become probable and determinable. | |
Letters of credit | |
At March 31, 2014, the Company had provided promissory notes totaling $52.5 million (December 31, 2013 - $52.5 million) as security for letters of credit relating to work commitment guarantees contained in exploration contracts and other capital or operating requirements. |
Financial_Instruments_Fair_Val
Financial Instruments, Fair Value Measurements and Credit Risk | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Financial Instruments, Fair Value Measurements and Credit Risk | ' | ||||||||
Financial Instruments, Fair Value Measurements and Credit Risk | |||||||||
At March 31, 2014, the Company’s financial instruments recognized in the balance sheet consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, foreign currency derivatives included in current assets and contingent consideration and contingent liability included in other long-term liabilities. | |||||||||
The fair value of long-term restricted cash approximates its carrying value because interest rates are variable and reflective of market rates. | |||||||||
The fair value of foreign currency derivatives is based on the maturity value of foreign exchange non-deliverable forward contracts using applicable forward exchange rates. The most significant variable to the cash flow calculations is the estimation of forward foreign exchange rates. The resulting future cash inflows or outflows at maturity of the contracts are the net value of the contract. | |||||||||
Contingent consideration, which relates to the acquisition of the remaining 30% working interest in certain properties in Brazil, was recorded on the balance sheet at the acquisition date fair value based on the consideration expected to be transferred and discounted back to present value by applying an appropriate discount rate that reflected the risk factors associated with the payment streams. The discount rate used was determined at the time of measurement in accordance with accepted valuation methods. | |||||||||
The fair value of the contingent liability which relates to a dispute with Ecopetrol (Note 8) was estimated based on the fair value of the amount awarded using market oil prices in Colombia. | |||||||||
The fair value of the foreign currency derivatives, contingent consideration and contingent liability are being remeasured at the estimated fair value at each reporting period with the change in fair value recognized as financial instruments gains or losses in net income. The fair value of the foreign currency derivatives, contingent consideration and the contingent liability at March 31, 2014, and December 31, 2013, were as follows: | |||||||||
As at | |||||||||
(Thousands of U.S. Dollars) | 31-Mar-14 | 31-Dec-13 | |||||||
Foreign currency derivative asset | $ | 2,409 | $ | — | |||||
Contingent consideration | $ | 1,061 | $ | 1,061 | |||||
Contingent liability (Note 8) | $ | 4,400 | $ | 4,400 | |||||
The following table presents gains or losses on financial instruments recognized in the accompanying condensed consolidated statements of operations: | |||||||||
(Thousands of U.S. Dollars) | Three Months Ended March 31, | ||||||||
2014 | 2013 | ||||||||
Foreign currency derivative gains | $ | 2,409 | $ | — | |||||
These gains are presented as financial instrument gain in the condensed consolidated statements of operations and cash flows. | |||||||||
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 March 31, 2014, and December 31, 2013, the fair value of the contingent liability which relates to a dispute with Ecopetrol (Note 8) was determined using Level 1 inputs and the fair value of the contingent consideration payable in connection with the Brazil acquisition was determined using Level 3 inputs. At March 31, 2014, the fair value of the foreign currency derivatives was determined using Level 2 inputs. The disclosure in the paragraph above regarding the fair value of cash and restricted cash is based on Level 1 inputs. | |||||||||
The Company’s non-recurring fair value measurements include asset retirement obligation. 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. | |||||||||
Credit risk arises from the potential that the Company may incur a loss if a counterparty to a financial instrument fails to meet its obligation in accordance with agreed terms. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash, accounts receivables and foreign currency derivatives. The carrying value of cash, accounts receivable and foreign currency derivatives reflects management’s assessment of credit risk. | |||||||||
At March 31, 2014, cash and cash equivalents and restricted cash included balances in savings and checking accounts, as well as term deposits and certificates of deposit, placed primarily with financial institutions with strong investment grade ratings or governments, or the equivalent in the Company’s operating areas. In February 2014, the Company purchased non-deliverable forward contracts for purposes of fixing the exchange rate at which it will purchase Colombian pesos to settle its income tax installment payments due in April and June 2014.With the exception of these foreign currency derivatives, any foreign currency transactions are conducted on a spot basis with major financial institutions in the Company’s operating areas. | |||||||||
At March 31, 2014, the Company had the following open foreign currency derivative position: | |||||||||
Forward contracts | |||||||||
Currency | Contract Type | Notional (Billions of Colombian Pesos) | Weighted Average Fixed Rate Received (Colombian Pesos - U.S. Dollars) | Expiration | |||||
Colombian pesos | Buy | 109.3 | 2,037 | Apr-14 | |||||
Colombian pesos | Buy | 40.5 | 2,045 | Jun-14 | |||||
149.8 | |||||||||
Most of the Company’s accounts receivable relate to uncollateralized sales to customers in the oil and natural gas industry and are exposed to typical industry credit risks. The concentration of revenues in a single industry affects the Company’s overall exposure to credit risk because customers may be similarly affected by changes in economic and other conditions. The Company manages this credit risk by entering into sales contracts with only credit worthy entities and reviewing its exposure to individual entities on a regular basis. For the three months ended March 31, 2014, the Company had two customers which were significant to the Colombian segment, three customers which were significant to the Argentina segment and one customer which was significant to the Brazilian segment. | |||||||||
To reduce the concentration of exposure to any individual counterparty, the Company utilizes a group of investment-grade rated counterparties, primarily financial institutions, for its derivative transactions. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its foreign currency derivative instruments. | |||||||||
For the three months ended March 31, 2014, 85% (three months ended March 31, 2013 - 88%) of the Company's revenue and other income was generated in Colombia. | |||||||||
The Argentina government has imposed a number of monetary and currency exchange control measures that include restrictions on the free disposition of funds deposited with banks and tight restrictions on transferring funds abroad, with certain exceptions for transfers related to foreign trade and other authorized transactions approved by the Argentina Central Bank. The Argentina Central Bank may require prior authorization and may or may not grant such authorization for Gran Tierra's Argentina subsidiaries to make dividends or loan payments to the Company. At March 31, 2014, $15.1 million, or 4%, of the Company's cash and cash equivalents was deposited with banks in Argentina in Argentina pesos. The Company expects to use these funds for the Argentina work program and operations in 2014 and is exposed to foreign exchange gains and losses on its net monetary position. | |||||||||
Additionally, unrealized foreign exchange gains and losses result from fluctuation of the U.S. dollar to the Colombian peso due to Gran Tierra’s current and deferred tax liabilities, which are monetary liabilities mainly denominated in the local currency of the Colombian operations. As a result, foreign exchange gains and losses must be calculated on conversion to the U.S. dollar functional currency. A strengthening in the Colombian peso against the U.S. dollar results in foreign exchange losses, estimated at $87,000 for each one peso decrease in the exchange rate of the Colombian peso to one U.S. dollar. | |||||||||
In Colombia, the company receives 100% of its revenues in U.S. dollars and the majority of its capital expenditures are in U.S. dollars or are based on U.S. dollar prices. In Argentina and Brazil, prices for oil are in U.S. dollars, but revenues are received in local currency translated according to current exchange rates. The majority of the Company's capital expenditures within Argentina and Brazil are based on U.S. dollar prices, but are paid in local currency translated according to current exchange rates. In Peru, capital expenditures are based on U.S. dollar prices and may be paid in local currency or U.S. dollars. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Foreign Currency Derivatives | ' |
Foreign Currency Derivatives | |
In February 2014, the Company purchased Colombian peso non-deliverable forward contracts for purposes of fixing the exchange rate at which it will purchase Colombian pesos to settle its income tax installment payments due in April and June 2014 (Note 9). The Company does not intend to issue or hold derivative financial instruments for speculative trading purposes. | |
The Company records derivative instruments on the balance sheet as either an asset or liability measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation, which is established at the inception of a derivative. Generally because of the short-term nature of the contracts and their limited use, the Company does not apply hedge accounting, and changes in the fair value of those contracts are reflected in net income as financial instrument gains or losses in the condensed consolidated statement of operations. Cash settlements of the Company's derivative arrangements are classified as operating cash flows. | |
The fair value of foreign currency derivatives is based on the maturity value of the foreign exchange non-deliverable forward contracts, using applicable forward exchange rates. The most significant variable to the cash flow calculations is the estimation of forward foreign exchange rates. The resulting net future cash inflows or outflows at maturity of the contracts are the net value of the contract. | |
Recently Issued Accounting Pronouncements | ' |
Recently Adopted Accounting Pronouncements | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013- 04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date”. The ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows or disclosure. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". The ASU provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows, or disclosure. |
Segment_and_Geographic_Reporti1
Segment and Geographic Reporting (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Reportable Geographic Segments | ' | |||||||||||||||||||||||
The following tables present information on the Company’s reportable segments and other activities: | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 144,935 | $ | 17,420 | $ | — | $ | 6,170 | $ | — | $ | 168,525 | ||||||||||||
Interest income | 137 | 404 | — | 425 | 188 | 1,154 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 41,250 | 8,893 | 208 | 2,579 | 227 | 53,157 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 25.44 | 32.23 | — | 38.89 | — | 27.07 | ||||||||||||||||||
Income (loss) before income taxes | 86,011 | (4,152 | ) | (2,058 | ) | 1,950 | (6,443 | ) | 75,308 | |||||||||||||||
Segment capital expenditures | 50,543 | 6,536 | 20,893 | 10,366 | 299 | 88,637 | ||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 180,003 | $ | 18,540 | $ | — | $ | 6,237 | $ | — | $ | 204,780 | ||||||||||||
Interest income | 161 | 243 | 14 | 9 | 164 | 591 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 45,956 | 7,950 | 62 | 4,171 | 273 | 58,412 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 26.32 | 26.68 | — | 65.34 | — | 27.71 | ||||||||||||||||||
Income (loss) before income taxes | 101,668 | (1,636 | ) | (1,227 | ) | (439 | ) | (3,014 | ) | 95,352 | ||||||||||||||
Segment capital expenditures | 30,407 | 4,805 | 29,247 | 14,539 | 11 | 79,009 | ||||||||||||||||||
Long-lived Assets by Geographical Area | ' | |||||||||||||||||||||||
As at March 31, 2014 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 859,500 | $ | 92,103 | $ | 199,216 | $ | 141,773 | $ | 3,114 | $ | 1,295,706 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
All other assets | 262,269 | 35,646 | 27,850 | 24,336 | 211,607 | 561,708 | ||||||||||||||||||
Total Assets | $ | 1,224,350 | $ | 127,749 | $ | 227,066 | $ | 166,109 | $ | 214,721 | $ | 1,959,995 | ||||||||||||
As at December 31, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 850,359 | $ | 94,366 | $ | 178,531 | $ | 133,874 | $ | 3,042 | $ | 1,260,172 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
All other assets | 233,336 | 39,209 | 24,240 | 24,477 | 220,535 | 541,797 | ||||||||||||||||||
Total Assets | $ | 1,186,276 | $ | 133,575 | $ | 202,771 | $ | 158,351 | $ | 223,577 | $ | 1,904,550 | ||||||||||||
Property_Plant_and_Equipment_a1
Property, Plant and Equipment and Inventory (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||||
As at March 31, 2014 | As at December 31, 2013 | |||||||||||||||||||||||
(Thousands of U.S. Dollars) | Cost | Accumulated | Net book value | Cost | Accumulated | Net book value | ||||||||||||||||||
depletion, | depletion, | |||||||||||||||||||||||
depreciation | depreciation | |||||||||||||||||||||||
and | and | |||||||||||||||||||||||
impairment | impairment | |||||||||||||||||||||||
Oil and natural gas properties | ||||||||||||||||||||||||
Proved | $ | 1,853,547 | $ | (1,057,717 | ) | $ | 795,830 | $ | 1,799,544 | $ | (1,005,475 | ) | $ | 794,069 | ||||||||||
Unproved | 489,817 | — | 489,817 | 456,001 | — | 456,001 | ||||||||||||||||||
2,343,364 | (1,057,717 | ) | 1,285,647 | 2,255,545 | (1,005,475 | ) | 1,250,070 | |||||||||||||||||
Furniture and fixtures and leasehold improvements | 9,182 | (6,989 | ) | 2,193 | 8,919 | (6,568 | ) | 2,351 | ||||||||||||||||
Computer equipment | 15,297 | (8,019 | ) | 7,278 | 14,786 | (7,605 | ) | 7,181 | ||||||||||||||||
Automobiles | 1,425 | (837 | ) | 588 | 1,381 | (811 | ) | 570 | ||||||||||||||||
Total Property, Plant and Equipment | $ | 2,369,268 | $ | (1,073,562 | ) | $ | 1,295,706 | $ | 2,280,631 | $ | (1,020,459 | ) | $ | 1,260,172 | ||||||||||
Share_Capital_Tables
Share Capital (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
RSU's and Stock options outstanding | ' | ||||||||
The following table provides information about RSU and stock option activity for the three months ended March 31, 2014: | |||||||||
RSUs | Options | ||||||||
Number of Outstanding Share Units | Number of Outstanding Options | Weighted Average Exercise Price $/Option | |||||||
Balance, December 31, 2013 | 922,045 | 15,668,458 | 5.41 | ||||||
Granted | 835,490 | 2,237,630 | 7.09 | ||||||
Exercised | (292,608 | ) | (111,333 | ) | (5.64 | ) | |||
Forfeited | (17,984 | ) | (84,156 | ) | (6.57 | ) | |||
Expired | — | (67,668 | ) | (6.81 | ) | ||||
Balance, March 31, 2014 | 1,446,943 | 17,642,931 | 5.61 | ||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | ||||||||
The amounts recognized for stock-based compensation were as follows: | |||||||||
(Thousands of U.S. Dollars) | Three Months Ended March 31, | ||||||||
2014 | 2013 | ||||||||
Compensation costs for stock options | $ | 2,016 | $ | 2,231 | |||||
Compensation costs for RSUs | 1,244 | — | |||||||
3,260 | 2,231 | ||||||||
Less: stock-based compensation costs capitalized | (783 | ) | (182 | ) | |||||
Stock-based compensation costs expensed | $ | 2,477 | $ | 2,049 | |||||
Weighted average shares outstanding | ' | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average number of common and exchangeable shares outstanding | 283,235,202 | 282,138,525 | |||||||
Shares issuable pursuant to stock options | 14,553,754 | 5,482,456 | |||||||
Shares assumed to be purchased from proceeds of stock options | (9,152,052 | ) | (2,594,798 | ) | |||||
Weighted average number of diluted common and exchangeable shares outstanding | 288,636,904 | 285,026,183 | |||||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Asset Retirement Obligation [Abstract] | ' | |||||||
Changes in Asset Retirement Obligations | ' | |||||||
Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: | ||||||||
Three Months Ended | Year Ended | |||||||
(Thousands of U.S. Dollars) | March 31, 2014 | December 31, 2013 | ||||||
Balance, beginning of year | $ | 21,973 | $ | 18,292 | ||||
Settlements | — | (2,068 | ) | |||||
Liability incurred | 786 | 2,623 | ||||||
Foreign exchange | (5 | ) | (25 | ) | ||||
Accretion | 418 | 1,279 | ||||||
Revisions in estimated liability | — | 1,872 | ||||||
Balance, end of period | $ | 23,172 | $ | 21,973 | ||||
Asset retirement obligation - current | $ | 518 | $ | 518 | ||||
Asset retirement obligation - long-term | 22,654 | 21,455 | ||||||
Balance, end of period | $ | 23,172 | $ | 21,973 | ||||
Taxes_Tables
Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income tax expense reported reconciliation to computed statutory rate | ' | |||||||
The income tax expense reported differs from the amount computed by applying the U.S. statutory rate to income before income taxes for the following reasons: | ||||||||
Three Months Ended March 31, | ||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||
Income (loss) before income taxes | ||||||||
United States | $ | (5,078 | ) | $ | (2,091 | ) | ||
Foreign | 80,386 | 97,443 | ||||||
75,308 | 95,352 | |||||||
35 | % | 35 | % | |||||
Income tax expense expected | 26,358 | 33,373 | ||||||
Foreign currency translation adjustments | 4,160 | (1,878 | ) | |||||
Impact of foreign taxes | (1,093 | ) | (224 | ) | ||||
Stock-based compensation | 760 | 686 | ||||||
(Decrease) increase in valuation allowance | (2,439 | ) | 1,844 | |||||
Branch and other foreign loss pick-up | 254 | (827 | ) | |||||
Non-deductible third party royalty in Colombia | 2,223 | 3,547 | ||||||
Other permanent differences | (44 | ) | 918 | |||||
Total income tax expense | $ | 30,179 | $ | 37,439 | ||||
Current income tax expense | ||||||||
United States | $ | 357 | $ | 306 | ||||
Foreign | 32,082 | 44,583 | ||||||
32,439 | 44,889 | |||||||
Deferred income tax recovery | ||||||||
United States | — | — | ||||||
Foreign | (2,260 | ) | (7,450 | ) | ||||
(2,260 | ) | (7,450 | ) | |||||
Total income tax expense | $ | 30,179 | $ | 37,439 | ||||
Deferred tax assets and liabilities | ' | |||||||
As at | ||||||||
(Thousands of U.S. Dollars) | March 31, 2014 | 31-Dec-13 | ||||||
Deferred Tax Assets | ||||||||
Tax benefit of operating loss carryforwards | $ | 45,630 | $ | 47,154 | ||||
Tax basis in excess of book basis | 57,340 | 59,168 | ||||||
Foreign tax credits and other accruals | 35,619 | 34,894 | ||||||
Tax benefit of capital loss carryforwards | 4,838 | 4,769 | ||||||
Deferred tax assets before valuation allowance | 143,427 | 145,985 | ||||||
Valuation allowance | (141,282 | ) | (142,322 | ) | ||||
$ | 2,145 | $ | 3,663 | |||||
Deferred tax assets - current | $ | 770 | $ | 2,256 | ||||
Deferred tax assets - long-term | 1,375 | 1,407 | ||||||
2,145 | 3,663 | |||||||
Deferred tax liabilities - current | (1,265 | ) | (1,193 | ) | ||||
Deferred tax liabilities - long-term | (169,798 | ) | (177,082 | ) | ||||
(171,063 | ) | (178,275 | ) | |||||
Net Deferred Tax Liabilities | $ | (168,918 | ) | $ | (174,612 | ) | ||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||
Changes in the Company's unrecognized tax benefit are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(Thousands of U.S. Dollars) | ||||||||
Unrecognized tax benefit at beginning of period | $ | 22,100 | $ | 21,800 | ||||
Decreases for positions relating to prior year | (1,100 | ) | — | |||||
Additions to tax position related to the current year | 1,500 | — | ||||||
Unrecognized tax benefit at end of period | $ | 22,500 | $ | 21,800 | ||||
Financial_Instruments_Fair_Val1
Financial Instruments, Fair Value Measurements and Credit Risk (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value of Foreign Currency Derivatives, Contingent Consideration and Contingent Liability | ' | ||||||||
The fair value of the foreign currency derivatives, contingent consideration and the contingent liability at March 31, 2014, and December 31, 2013, were as follows: | |||||||||
As at | |||||||||
(Thousands of U.S. Dollars) | 31-Mar-14 | 31-Dec-13 | |||||||
Foreign currency derivative asset | $ | 2,409 | $ | — | |||||
Contingent consideration | $ | 1,061 | $ | 1,061 | |||||
Contingent liability (Note 8) | $ | 4,400 | $ | 4,400 | |||||
Gains Associated with Foreign Currency Derivatives | ' | ||||||||
The following table presents gains or losses on financial instruments recognized in the accompanying condensed consolidated statements of operations: | |||||||||
(Thousands of U.S. Dollars) | Three Months Ended March 31, | ||||||||
2014 | 2013 | ||||||||
Foreign currency derivative gains | $ | 2,409 | $ | — | |||||
Open Foreign Currency Derivative Positions | ' | ||||||||
At March 31, 2014, the Company had the following open foreign currency derivative position: | |||||||||
Forward contracts | |||||||||
Currency | Contract Type | Notional (Billions of Colombian Pesos) | Weighted Average Fixed Rate Received (Colombian Pesos - U.S. Dollars) | Expiration | |||||
Colombian pesos | Buy | 109.3 | 2,037 | Apr-14 | |||||
Colombian pesos | Buy | 40.5 | 2,045 | Jun-14 | |||||
149.8 | |||||||||
Segment_and_Geographic_Reporti2
Segment and Geographic Reporting - Reportable Segments (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Oil and natural gas sales | $168,525 | $204,780 |
Interest income | 1,154 | 591 |
Depletion, depreciation, accretion and impairment | 53,157 | 58,412 |
Depletion, depreciation, accretion and impairment - per unit of production | 27.07 | 27.71 |
Income (loss) before income taxes | 75,308 | 95,352 |
Segment capital expenditures | 88,637 | 79,009 |
Colombia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Oil and natural gas sales | 144,935 | 180,003 |
Interest income | 137 | 161 |
Depletion, depreciation, accretion and impairment | 41,250 | 45,956 |
Depletion, depreciation, accretion and impairment - per unit of production | 25.44 | 26.32 |
Income (loss) before income taxes | 86,011 | 101,668 |
Segment capital expenditures | 50,543 | 30,407 |
Argentina [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Oil and natural gas sales | 17,420 | 18,540 |
Interest income | 404 | 243 |
Depletion, depreciation, accretion and impairment | 8,893 | 7,950 |
Depletion, depreciation, accretion and impairment - per unit of production | 32.23 | 26.68 |
Income (loss) before income taxes | -4,152 | -1,636 |
Segment capital expenditures | 6,536 | 4,805 |
Peru [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Oil and natural gas sales | 0 | 0 |
Interest income | 0 | 14 |
Depletion, depreciation, accretion and impairment | 208 | 62 |
Depletion, depreciation, accretion and impairment - per unit of production | 0 | 0 |
Income (loss) before income taxes | -2,058 | -1,227 |
Segment capital expenditures | 20,893 | 29,247 |
Brazil [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Oil and natural gas sales | 6,170 | 6,237 |
Interest income | 425 | 9 |
Depletion, depreciation, accretion and impairment | 2,579 | 4,171 |
Depletion, depreciation, accretion and impairment - per unit of production | 38.89 | 65.34 |
Income (loss) before income taxes | 1,950 | -439 |
Segment capital expenditures | 10,366 | 14,539 |
All Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Oil and natural gas sales | 0 | 0 |
Interest income | 188 | 164 |
Depletion, depreciation, accretion and impairment | 227 | 273 |
Depletion, depreciation, accretion and impairment - per unit of production | 0 | 0 |
Income (loss) before income taxes | -6,443 | -3,014 |
Segment capital expenditures | $299 | $11 |
Segment_and_Geographic_Reporti3
Segment and Geographic Reporting - Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | $1,295,706 | $1,260,172 |
Goodwill | 102,581 | 102,581 |
All other assets | 561,708 | 541,797 |
Total Assets | 1,959,995 | 1,904,550 |
Colombia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 859,500 | 850,359 |
Goodwill | 102,581 | 102,581 |
All other assets | 262,269 | 233,336 |
Total Assets | 1,224,350 | 1,186,276 |
Argentina [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 92,103 | 94,366 |
Goodwill | 0 | 0 |
All other assets | 35,646 | 39,209 |
Total Assets | 127,749 | 133,575 |
Peru [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 199,216 | 178,531 |
Goodwill | 0 | 0 |
All other assets | 27,850 | 24,240 |
Total Assets | 227,066 | 202,771 |
Brazil [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 141,773 | 133,874 |
Goodwill | 0 | 0 |
All other assets | 24,336 | 24,477 |
Total Assets | 166,109 | 158,351 |
All Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 3,114 | 3,042 |
Goodwill | 0 | 0 |
All other assets | 211,607 | 220,535 |
Total Assets | $214,721 | $223,577 |
Segment_and_Geographic_Reporti4
Segment and Geographic Reporting - Narrative (Details) (Colombia [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
customer | customer | |
Concentration Risk [Line Items] | ' | ' |
Number of significant customers | 2 | 3 |
Number of other significant customers | 1 | 2 |
Ecopetrol [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | 43.00% | 54.00% |
Other Customer Number One [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | 37.00% | 21.00% |
Other Customer Number Two [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | ' | 11.00% |
Property_Plant_and_Equipment_a2
Property, Plant and Equipment and Inventory (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $2,369,268 | $2,280,631 |
Accumulated depletion, depreciation and impairment | -1,073,562 | -1,020,459 |
Total Property, Plant and Equipment (Note 4) | 1,295,706 | 1,260,172 |
Unproved oil and gas property full cost accounting | 489,817 | 456,001 |
Proved [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 1,853,547 | 1,799,544 |
Accumulated depletion, depreciation and impairment | -1,057,717 | -1,005,475 |
Total Property, Plant and Equipment (Note 4) | 795,830 | 794,069 |
Unproved [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated depletion, depreciation and impairment | 0 | 0 |
Total Property, Plant and Equipment (Note 4) | 489,817 | 456,001 |
Unproved oil and gas property full cost accounting | 489,817 | 456,001 |
Oil and natural gas properties depletable base under full cost accounting [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 2,343,364 | 2,255,545 |
Accumulated depletion, depreciation and impairment | -1,057,717 | -1,005,475 |
Total Property, Plant and Equipment (Note 4) | 1,285,647 | 1,250,070 |
Furniture and fixtures and leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 9,182 | 8,919 |
Accumulated depletion, depreciation and impairment | -6,989 | -6,568 |
Total Property, Plant and Equipment (Note 4) | 2,193 | 2,351 |
Computer equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 15,297 | 14,786 |
Accumulated depletion, depreciation and impairment | -8,019 | -7,605 |
Total Property, Plant and Equipment (Note 4) | 7,278 | 7,181 |
Automobiles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 1,425 | 1,381 |
Accumulated depletion, depreciation and impairment | -837 | -811 |
Total Property, Plant and Equipment (Note 4) | $588 | $570 |
Property_Plant_and_Equipment_a3
Property, Plant and Equipment and Inventory - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and depletion | $53,100,000 | $54,600,000 | ' |
Unproven properties relating to four blocks | 1,295,706,000 | ' | 1,260,172,000 |
Unproved assets by cost center | 489,800,000 | ' | 456,000,000 |
Crude oil inventories | 12,100,000 | ' | 11,700,000 |
Supplies | 2,300,000 | ' | 2,000,000 |
Colombia [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Unproved assets by cost center | 184,000,000 | ' | 176,100,000 |
Argentina [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Unproved assets by cost center | 17,700,000 | ' | 18,200,000 |
Peru [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Unproved assets by cost center | 198,100,000 | ' | 177,500,000 |
Brazil [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Unproved assets by cost center | 90,000,000 | ' | 84,200,000 |
Brazil [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Number of unproved reserves blocks | 4 | ' | ' |
Four out of Seven Blocks Unproved Oil and Gas Properties [Member] | Brazil [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Unproven properties relating to four blocks | $71,900,000 | ' | ' |
Share_Capital_Details
Share Capital (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Number of Outstanding Options | ' |
Balance, December 31, 2012 (in shares) | 15,668,458 |
Granted (in shares) | 2,237,630 |
Exercised (in shares) | -111,333 |
Forfeited (in shares) | -84,156 |
Expired (in shares) | -67,668 |
Balance, June 30, 2013 (in shares) | 17,642,931 |
Weighted Average Exercise Price $/Option | ' |
Weighted Average Exercise Price $/Option, beginning balance (in dollars per share) | $5.41 |
Weighted Average Exercise Price $/Option, Granted (in dollars per share) | $7.09 |
Weighted Average Exercise Price $/Options Exercised (in dollars per share) | ($5.64) |
Weighted Average Exercise Price $/Options, Forfeited (in dollars per share) | ($6.57) |
Weighted Average Exercise Price $/Options, Expired (in dollars per share) | ($6.81) |
Weighted Average Exercise Price $/Option, ending balance (in dollars per share) | $5.61 |
RSUs [Member] | ' |
Number of Outstanding Share Units | ' |
Balance, December 31, 2012 (in shares) | 922,045 |
Granted (in shares) | 835,490 |
Exercised (in shares) | -292,608 |
Forfeited (in shares) | -17,984 |
Expired (in shares) | 0 |
Balance, June 30, 2013 (in shares) | 1,446,943 |
Share_Capital_Allocation_of_Sh
Share Capital - Allocation of Share Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Compensation cost | $3,260 | $2,231 |
Less: stock-based compensation costs capitalized | -783 | -182 |
Stock-based compensation costs expensed | 2,477 | 2,049 |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Compensation cost | 2,016 | 2,231 |
RSUs [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Compensation cost | $1,244 | $0 |
Share_Capital_Weighted_Average
Share Capital - Weighted Average Shares (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Weighted average number of common and exchangeable shares outstanding | 283,235,202 | 282,138,525 |
Shares issuable pursuant to stock options | 14,553,754 | 5,482,456 |
Shares assumed to be purchased from proceeds of stock options | -9,152,052 | -2,594,798 |
Weighted average number of diluted common and exchangeable shares outstanding | 288,636,904 | 285,026,183 |
Share_Capital_Narrative_Detail
Share Capital - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
vote | |||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Authorized share capital | 595,000,002 | ' | ' |
Common stock, authorized | 570,000,000 | ' | ' |
Common shares, par value (in dollars per share) | $0.00 | ' | $0.00 |
Preferred stock, authorized | 25,000,000 | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | ' | ' |
Special voting stock-authorized (in shares) | 2 | ' | ' |
Special voting stock-par value (in dollars per share) | $0.00 | ' | ' |
Common shares, outstanding | 272,792,843 | ' | 272,327,810 |
Stock issued during period upon exercise of stock options (in shares) | 111,333 | ' | ' |
Votes per common stock | 1 | ' | ' |
Common voting shares per exchangeable share (in shares) | 1 | ' | ' |
Cash received from exercise of stock options | $600,000 | $1,600,000 | ' |
Stock option exercises in period (in shares) | -111,333 | ' | ' |
Stock Options [Abstract] | ' | ' | ' |
Stock-based compensation expense | 2,477,000 | 2,049,000 | ' |
Unvested stock options recognition period | '2 years 2 months 12 days | ' | ' |
General and Administrative Expense [Member] | ' | ' | ' |
Stock Options [Abstract] | ' | ' | ' |
Stock-based compensation expense | 2,200,000 | 1,800,000 | ' |
Stock Options [Member] | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Weighted Average Grant Date Fair Value $/Option, Granted in Period | $2.52 | $3.33 | ' |
Stock Options [Abstract] | ' | ' | ' |
Unrecognized compensation cost related to unvested stock options | 16,100,000 | ' | 8,100,000 |
Earnings Per Share [Abstract] | ' | ' | ' |
Options excluded from the diluted income per share calculation | 3,175,152 | 9,392,605 | ' |
Stock Options [Member] | Operating Expense [Member] | ' | ' | ' |
Stock Options [Abstract] | ' | ' | ' |
Stock-based compensation expense | $300,000 | $200,000 | ' |
Gran Tierra Exchangeco Inc [Member] | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Exchangeable shares outstanding (in shares) | 5,994,613 | ' | ' |
Exchange shares issued during period | 353,700 | ' | ' |
Gran Tierra Goldstrike Inc [Member] | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Exchangeable shares outstanding (in shares) | 4,534,127 | ' | ' |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $21,973,000 | ' | ' |
Settlements | 0 | -2,068,000 | ' |
Liability incurred | 786,000 | 2,623,000 | ' |
Foreign exchange | -5,000 | -25,000 | ' |
Accretion | 418,000 | 1,279,000 | ' |
Revisions in estimated liability | 0 | 1,872,000 | ' |
Balance, end of period | 23,172,000 | 18,292,000 | ' |
Asset retirement obligation - current | 518,000 | ' | 518,000 |
Asset retirement obligation - long-term | 22,654,000 | ' | 21,455,000 |
Balance, end of period | 23,172,000 | 18,292,000 | ' |
Fair value of legally restricted assets | $2,000,000 | ' | $1,900,000 |
Taxes_Income_Tax_Reconciliatio
Taxes - Income Tax Reconciliation (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income (loss) before income taxes | ' | ' |
United States | ($5,078) | ($2,091) |
Foreign | 80,386 | 97,443 |
INCOME BEFORE INCOME TAXES | 75,308 | 95,352 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' |
Effective income tax rate | 35.00% | 35.00% |
Income tax expense expected | 26,358 | 33,373 |
Foreign currency translation adjustments | 4,160 | -1,878 |
Impact of foreign taxes | -1,093 | -224 |
Stock-based compensation | 760 | 686 |
(Decrease) increase in valuation allowance | -2,439 | 1,844 |
Branch and other foreign loss pick-up | 254 | -827 |
Non-deductible third party royalty in Colombia | 2,223 | 3,547 |
Other permanent differences | -44 | 918 |
Total income tax expense | 30,179 | 37,439 |
Current income tax expense | ' | ' |
United States | 357 | 306 |
Foreign | 32,082 | 44,583 |
Total Current income tax expense | 32,439 | 44,889 |
Deferred income tax recovery | ' | ' |
United States | 0 | 0 |
Foreign | -2,260 | -7,450 |
Total Deferred income tax expense (recovery) | ($2,260) | ($7,450) |
Taxes_Permanent_Differences_Re
Taxes - Permanent Differences Reconciliation (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Tax benefit of operating loss carryforwards | $45,630 | $47,154 |
Tax basis in excess of book basis | 57,340 | 59,168 |
Foreign tax credits and other accruals | 35,619 | 34,894 |
Tax benefit of capital loss carryforwards | 4,838 | 4,769 |
Deferred tax assets before valuation allowance | 143,427 | 145,985 |
Valuation allowance | -141,282 | -142,322 |
Deferred tax assets, net | 2,145 | 3,663 |
Deferred tax assets - current | 770 | 2,256 |
Deferred tax assets - long-term | 1,375 | 1,407 |
Deferred tax liabilities - current | -1,265 | -1,193 |
Deferred tax liabilities - long-term | -169,798 | -177,082 |
Deferred tax liabilities, net | -171,063 | -178,275 |
Net Deferred Tax Liabilities | ($168,918) | ($174,612) |
Taxes_Unrecognized_Tax_Benefit
Taxes - Unrecognized Tax Benefits Rollforward (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Unrecognized tax benefit at beginning of period | $22,100 | $21,800 |
Changes for positions relating to prior year | -1,100 | 0 |
Additions to tax position related to the current year | 1,500 | 0 |
Unrecognized tax benefit at end of period | $22,500 | $21,800 |
Taxes_Narrative_Details
Taxes - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | |
installment | |||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Operating loss carryforwards | $206,800,000 | ' | ' | $215,400,000 | ' |
Capital losses before valuation allowance | 32,800,000 | ' | ' | 32,600,000 | ' |
Net operating loss and capital loss carryforward from foreign subsidiaries | 203,500,000 | ' | ' | 213,800,000 | ' |
Unrecognized tax benefits | 22,500,000 | ' | 21,800,000 | 22,100,000 | 21,800,000 |
Unrecognized tax benefits that would impact effective tax rate | $12,800,000 | ' | ' | ' | ' |
Equity tax rate (in hundredths) | 6.00% | ' | 6.00% | ' | ' |
Equity tax for foreign operations - Columbia, number of semi-annual installments | ' | 8 | ' | ' | ' |
Equity tax for foreign operations - Columbia, assessment term (in years) | ' | '4 years | ' | ' | ' |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Pending Litigation Escopetrol [Member] | Pending Litigation Escopetrol [Member] | Pending Litigation Moqueta Discovery [Member] | Pending Litigation Royalty, Transportation and Related Costs [Member] | |||
bbl | bbl | |||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Loss Contingency, Loss in Period, Barrels of Oil | ' | ' | ' | 44,025 | ' | ' |
Contingent liability (Note 8) | $4,400,000 | $4,400,000 | $4,400,000 | ' | $44,900,000 | $31,700,000 |
Threshold by which additional royalty due (barrels) | ' | ' | ' | ' | 5,000,000 | ' |
Total cumulative production of oil field (barrels) | ' | ' | ' | ' | 2,700,000 | ' |
Promissory notes provided as collateral for letters of credit | $52,500,000 | $52,500,000 | ' | ' | ' | ' |
Financial_Instruments_Fair_Val2
Financial Instruments, Fair Value Measurements and Credit Risk - Narrative (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Oct. 08, 2012 | |
Colombia [Member] | Colombia [Member] | Colombia [Member] | Colombia [Member] | Argentina [Member] | Brazil [Member] | Block-Brazil [Member] | ||
customer | customer | Sales Revenue, Segment [Member] | Sales Revenue, Segment [Member] | customer | customer | |||
Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Participating interest percentage oil and gas property, remaining percentage | ' | ' | ' | ' | ' | ' | ' | 30.00% |
Number of significant customers | ' | 2 | 3 | ' | ' | 3 | 1 | ' |
Concentration risk, percentage | ' | ' | ' | 85.00% | 88.00% | ' | ' | ' |
Cash and cash equivalents on deposit with local Argentinian banks | ' | ' | ' | ' | ' | $15,100,000 | ' | ' |
Cash and cash equivalents on deposit with local Argentinian bank, percent | ' | ' | ' | ' | ' | 4.00% | ' | ' |
Foreign exchange losses, Colombian peso to U.S. dollar | $87,000 | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Fair_Val3
Financial Instruments, Fair Value Measurements and Credit Risk - Fair Value of the Foreign Currency Derivatives, Contingent Consideration and the Contingent Liability (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Foreign currency derivative asset | $2,409 | $0 |
Contingent consideration | 1,061 | 1,061 |
Contingent liability (Note 8) | $4,400 | $4,400 |
Financial_Instruments_Fair_Val4
Financial Instruments, Fair Value Measurements and Credit Risk - Gains Recognized in the Statement of Operations (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Foreign currency derivative gains | $2,409 | $0 |
Financial_Instruments_Fair_Val5
Financial Instruments, Fair Value Measurements and Credit Risk - Open Foreign Currency Derivative Position (Details) (Foreign Exchange Forward [Member]) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Billions, unless otherwise specified | USD ($) | Forward Contract Expiring April 2014 [Member] | Forward Contract Expiring June 2014 [Member] |
Long [Member] | Long [Member] | ||
COP | COP | ||
Derivative [Line Items] | ' | ' | ' |
Notional amount | $149.80 | 109.3 | 40.5 |
Weighted Average Fixed Rate Received | ' | 2,037 | 2,045 |