Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 22, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GRAN TIERRA ENERGY INC. | ||
Entity Central Index Key | 1,273,441 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 0.9 | ||
Entity Common Stock, Shares Outstanding | 385,394,642 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
OIL AND NATURAL GAS SALES (NOTE 3) | $ 421,734 | $ 289,269 | $ 276,011 |
EXPENSES | |||
Operating | 109,869 | 86,925 | 75,565 |
Transportation | 25,107 | 31,776 | 40,204 |
Depletion, depreciation and accretion (Note 3) | 131,335 | 139,535 | 176,386 |
Asset impairment (Notes 3 and 5) | 1,514 | 616,649 | 323,918 |
General and administrative (Note 3) | 39,014 | 33,218 | 32,353 |
Severance | 1,287 | 1,319 | 8,990 |
Transaction | 0 | 7,325 | 0 |
Equity tax (Note 9) | 1,224 | 3,098 | 3,769 |
Foreign exchange loss (gain) | 2,067 | (1,469) | (17,242) |
Financial instruments loss (Note 12) | 15,929 | 10,279 | 2,027 |
Other gain | 0 | 0 | (502) |
Interest expense (Notes 3 and 6) | 13,882 | 14,145 | 0 |
Total expenses | 341,228 | 942,800 | 645,468 |
(LOSS) ON SALE OF BUSINESS UNITS (NOTE 3 and 5) AND GAIN ON ACQUISITION | (44,385) | ||
(LOSS) ON SALE OF BUSINESS UNITS (NOTE 3 and 5) AND GAIN ON ACQUISITION | 929 | 0 | |
INTEREST INCOME | 1,209 | 2,368 | 1,369 |
INCOME (LOSS) BEFORE INCOME TAXES (NOTE 3) | 37,330 | (650,234) | (368,088) |
INCOME TAX EXPENSE (RECOVERY) | |||
Current (Note 9) | (24,322) | (20,122) | (15,383) |
Deferred (Note 9) | (44,716) | 204,791 | 115,442 |
INCOME TAX EXPENSE (RECOVERY) | 69,038 | (184,669) | (100,059) |
NET LOSS AND COMPREHENSIVE LOSS | $ (31,708) | $ (465,565) | $ (268,029) |
NET LOSS PER SHARE - BASIC AND DILUTED (in dollars per share) | $ (0.08) | $ (1.45) | $ (0.94) |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED (in shares) | 396,683,593 | 320,851,538 | 285,333,869 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents (Note 13) | $ 12,326 | $ 25,175 |
Restricted cash and cash equivalents (Notes 8 and 13) | 11,787 | 8,322 |
Accounts receivable (Note 4) | 45,353 | 45,698 |
Investment (Note 12) | 25,055 | 0 |
Derivatives (Note 12) | 302 | 578 |
Inventory | 7,075 | 7,766 |
Taxes receivable | 40,831 | 26,393 |
Prepaid taxes (Notes 2 and 9) | 0 | 12,271 |
Other prepaids | 2,516 | 5,482 |
Total Current Assets | 145,245 | 131,685 |
Oil and Gas Properties (using the full cost method of accounting) | ||
Proved | 629,081 | 412,319 |
Unproved | 464,948 | 647,774 |
Total Oil and Gas Properties | 1,094,029 | 1,060,093 |
Other capital assets | 5,195 | 6,516 |
Total Property, Plant and Equipment (Notes 3 and 5) | 1,099,224 | 1,066,609 |
Other Long-Term Assets | ||
Deferred tax assets (Note 2 and 9) | 57,310 | 1,611 |
Prepaid taxes (Notes 2 and 9) | 0 | 41,784 |
Investment (Note 12) | 19,147 | 0 |
Other long-term assets (Note 13) | 6,112 | 23,626 |
Goodwill (Note 3) | 102,581 | 102,581 |
Total Other Long-Term Assets | 185,150 | 169,602 |
Total Assets (Note 3) | 1,429,619 | 1,367,896 |
Current Liabilities | ||
Accounts payable and accrued liabilities (Note 10) | 126,171 | 107,051 |
Derivatives (Note 12) | 21,151 | 3,824 |
Taxes payable (Note 9) | 9,324 | 38,939 |
Asset retirement obligation (Note 8) | 323 | 5,215 |
Total Current Liabilities | 156,969 | 155,029 |
Long-Term Liabilities | ||
Long-term debt (Notes 6 and 12) | 256,542 | 197,083 |
Deferred tax liabilities (Note 2 and 9) | 28,417 | 107,230 |
Asset retirement obligation (Note 8) | 31,241 | 38,142 |
Other long-term liabilities | 20,115 | 11,425 |
Total Long-Term Liabilities | 336,315 | 353,880 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ Equity | ||
Common Stock (Note 7) (385,191,042 and 390,807,194 shares of Common Stock and 6,111,665 and 8,199,894 exchangeable shares, par value $0.001 per share, issued and outstanding as at December 31, 2017 and December 31, 2016, respectively) | 10,295 | 10,303 |
Additional paid in capital | 1,327,244 | 1,342,656 |
Deficit | (401,204) | (493,972) |
Total Shareholders’ Equity | 936,335 | 858,987 |
Total Liabilities and Shareholders’ Equity | $ 1,429,619 | $ 1,367,896 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common shares, issued (in shares) | 385,191,042 | 390,807,194 |
Common shares, outstanding (in shares) | 385,191,042 | 390,807,194 |
Exchangeable shares, issued (in shares) | 6,111,665 | 8,199,894 |
Exchangeable shares, outstanding (in shares) | 6,111,665 | 8,199,894 |
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net loss | $ (31,708) | $ (465,565) | $ (268,029) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depletion, depreciation and accretion (Note 3) | 131,335 | 139,535 | 176,386 |
Asset impairment | 1,514 | 616,649 | 323,918 |
Deferred tax expense (recovery) (Note 9) | 44,716 | (204,791) | (115,442) |
Stock-based compensation (Note 7) | 9,775 | 6,339 | 2,733 |
Amortization of debt issuance costs (Note 6) | 2,415 | 5,691 | 0 |
Cash settlement of restricted share units | (564) | (1,234) | (1,392) |
Unrealized foreign exchange loss (gain) | 837 | (1,428) | (8,380) |
Financial instruments loss (Note 12) | 15,929 | 10,279 | 2,027 |
Cash settlement of financial instruments | 1,563 | 438 | (3,749) |
Cash settlement of asset retirement obligation (Note 8) | (1,336) | (605) | (6,217) |
Loss on sale of business units (Note 3 and 5) and (gain) on acquisition | 44,385 | ||
Loss on sale of business units (Note 3 and 5) and (gain) on acquisition | (929) | 0 | |
Other gain | 0 | 0 | (502) |
Net change in assets and liabilities from operating activities (Note 13) | (29,217) | (11,337) | (39,048) |
Net cash provided by operating activities | 189,644 | 93,042 | 62,305 |
Investing Activities | |||
Additions to property, plant and equipment (Note 3) | (251,041) | (127,789) | (156,639) |
Property acquisitions (Note 5) | (34,410) | (19,388) | 0 |
Net proceeds from sale of business units (Note 5) | 32,968 | 0 | 0 |
Cash paid for investments (Note 5) | (11,000) | 0 | 0 |
Cash paid for business combinations, net of cash acquired | 0 | (488,196) | 0 |
Proceeds from the sale of oil and gas properties (Note 5) | 0 | 6,000 | 0 |
Proceeds from sale of marketable securities (Note 12) | 0 | 2,325 | 0 |
Changes in non-cash investing working capital | 19,680 | 21,116 | (76,844) |
Net cash used in investing activities | (243,803) | (605,932) | (233,483) |
Financing Activities | |||
Proceeds from bank debt, net of issuance costs | 167,043 | 256,065 | 0 |
Repayment of bank debt | (110,000) | (252,181) | 0 |
Repurchase of shares of Common Stock (Note 7) | (17,916) | 0 | (9,999) |
Proceeds from issuance of shares of Common Stock, net of issuance costs | 0 | 128,273 | 722 |
Proceeds from issuance of subscription receipts, net of issuance costs | 0 | 165,805 | 0 |
Proceeds from issuance of Convertible Notes, net of issuance costs | 0 | 109,090 | 0 |
Net cash provided by (used in) financing activities | 39,127 | 407,052 | (9,277) |
Foreign exchange (loss) gain on cash, cash equivalents and restricted cash and cash equivalents | (1,557) | 354 | (6,516) |
Net decrease in cash, cash equivalents and restricted cash and cash equivalents | (16,589) | (105,484) | (186,971) |
Cash, cash equivalents and restricted cash and cash equivalents, beginning of year (Note 13) | 43,267 | 148,751 | 335,722 |
Cash, cash equivalents and restricted cash and cash equivalents, end of year (Note 13) | $ 26,678 | $ 43,267 | $ 148,751 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Total | Share Capital | Additional Paid in Capital | (Deficit) Retained Earnings |
Balance, beginning of year at Dec. 31, 2014 | $ 10,190,000 | $ 1,026,873,000 | $ 239,622,000 | |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of Common Stock, net of share issuance costs (Note 7) | 0 | 0 | ||
Repurchase of Common Stock (Note 7) | (4,000) | (9,995,000) | ||
Exercise of stock options (Note 7) | 722,000 | |||
Stock-based compensation (Note 7) | 2,263,000 | |||
Net loss | $ (268,029,000) | (268,029,000) | ||
Balance, end of year at Dec. 31, 2015 | 1,001,642,000 | 10,186,000 | 1,019,863,000 | (28,407,000) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of Common Stock, net of share issuance costs (Note 7) | 117,000 | 314,425,000 | ||
Repurchase of Common Stock (Note 7) | 0 | 0 | ||
Exercise of stock options (Note 7) | 5,347,000 | |||
Stock-based compensation (Note 7) | 3,021,000 | |||
Net loss | (465,565,000) | (465,565,000) | ||
Balance, end of year at Dec. 31, 2016 | 858,987,000 | 10,303,000 | 1,342,656,000 | (493,972,000) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting changes related to tax reorganizations (Note 2) | 124,476,000 | |||
Issuance of Common Stock, net of share issuance costs (Note 7) | 0 | 0 | ||
Repurchase of Common Stock (Note 7) | (8,000) | (17,908,000) | ||
Exercise of stock options (Note 7) | 0 | |||
Stock-based compensation (Note 7) | 2,496,000 | |||
Net loss | (31,708,000) | (31,708,000) | ||
Balance, end of year at Dec. 31, 2017 | $ 936,335,000 | $ 10,295,000 | $ 1,327,244,000 | $ (401,204,000) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
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. The Company also had business activities in Brazil until June 30, 2017 , and in Peru until December 18, 2017 . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Significant accounting policies are: Basis of consolidation These consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All intercompany accounts and transactions have been eliminated. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include: oil and natural gas reserves and related present value of future cash flows; depreciation, depletion, amortization and impairment (“DD&A”); impairment assessments of goodwill; timing of transfers from oil and gas properties not subject to depletion to the depletable base; asset retirement obligations; determining the value of the consideration transferred and the net identifiable assets acquired and liabilities assumed in connection with business combinations and determining goodwill; assessments of the likely outcome of legal and other contingencies; income taxes; stock-based compensation; and determining the fair value of derivatives and investment. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates and actual results may differ from these estimates. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash and cash equivalents Restricted cash and cash equivalents comprises cash and cash equivalents pledged to secure letters of credit and to settle asset retirement obligations. Letters of credit currently secured by cash relate to work commitment guarantees contained in exploration contracts. Restrictions will lapse when work obligations are satisfied pursuant to the exploration contract or an asset retirement obligation is settled. Cash and claims to cash that are restricted as to withdrawal or use for other than current operations or are designated for expenditure in the acquisition or construction of long-term assets are excluded from the current asset classification. The long term portion of restricted cash and cash equivalents is included in other long-term assets on the Company's balance sheet. Allowance for doubtful accounts The Company estimates losses on receivables based on known uncollectible accounts, if any, and historical experience of losses incurred and accrues a reserve on a receivable when, based on the judgment of management, it is probable that a receivable will not be collected and the amount of the reserve may be reasonably estimated. The allowance for doubtful receivables was nil at December 31, 2017 and 2016 . Equity method investment During December 2017, the Company acquired an investment in common shares of Sterling in connection with the sale of its Peru business unit (Note 5). At December 31, 2017, this investment represented approximately 46% of Sterling's issued and outstanding common shares. The Company determined that it did not have a controlling financial interest in Sterling, but could exert significant influence over Sterling's operating and financial policies as a result of its ownership interest in Sterling and the right to nominate two directors to Sterling's board of directors. Accordingly, Gran Tierra accounted for its investment in the common shares of Sterling as an equity method investment, but elected the fair value option for this investment to reflect the value that market participants would use to value the investment. The fair value of the investment in Sterling's common shares is recorded in 'Investments' in the consolidated balance sheet, and the change in fair value is recorded in the consolidated statement of operations as financial instruments gains or losses. Derivatives The Company records derivative instruments on its balance sheet at fair value as either an asset or liability with changes in fair value recognized in the consolidated statements of operations as financial instruments gains or losses. While the Company utilizes derivative instruments to manage the price risk attributable to its expected oil production and foreign exchange risk, it has elected not to designate its derivative instruments as accounting hedges under the accounting guidance. Inventory Inventory consists of oil in tanks and third party pipelines and supplies and is valued at the lower of cost and net realizable value. The cost of inventory is determined using the weighted average method. Oil inventories include expenditures incurred to produce, upgrade and transport the product to the storage facilities and include operating, depletion and depreciation expenses and cash royalties. Income taxes Income taxes are recognized using the liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax base, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are provided if, after considering available evidence, it is not more likely than not that some or all of the deferred tax assets will be realized. The tax benefit from an uncertain tax position is recognized when it is more likely than not, based on the technical merits of the position, that the position will be sustained on examination by the taxing authorities. Additionally, the amount of the tax benefit recognized is the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The Company recognizes potential penalties and interest related to unrecognized tax benefits as a component of income tax expense. Oil and gas properties The Company uses the full cost method of accounting for its investment in oil and natural gas properties as defined by the Securities and Exchange Commission (“SEC”). Under this method, the Company capitalizes all acquisition, exploration and development costs incurred for the purpose of finding oil and natural gas reserves, including salaries, benefits and other internal costs directly attributable to these activities. Costs associated with production and general corporate activities; however, are expensed as incurred. Separate cost centers are maintained for each country in which the Company incurs costs. The Company computes depletion of oil and natural gas properties on a quarterly basis using the unit-of-production method based upon production and estimates of proved reserve quantities. Future development costs related to properties with proved reserves are also included in the amortization base for computation of depletion. The costs of unproved properties are excluded from the amortization base until the properties are evaluated. The cost of exploratory dry wells is transferred to proved properties, and thus is subject to amortization, immediately upon determination that a well is dry in those countries where proved reserves exist. The Company performs a ceiling test calculation each quarter in accordance with SEC Regulation S-X Rule 4-10. In performing its quarterly ceiling test, the Company limits, on a country-by-country basis, the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes, to the estimated future net cash flows from proved oil and natural gas reserves discounted at 10% , net of related tax effects, plus the lower of cost or fair value of unproved properties included in the costs being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to net income or loss. Any such write-down will reduce earnings in the period of occurrence and results in a lower DD&A rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company calculates future net cash flows by applying the unweighted average of prices in effect on the first day of the month for the preceding 12-month period, adjusted for location and quality differentials. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. Unproved properties are not depleted pending the determination of the existence of proved reserves. Costs are transferred into the depletable base on an ongoing basis as the properties are evaluated and proved reserves are established or impairment is determined. Unproved properties are evaluated quarterly to ascertain whether impairment has occurred. This evaluation considers, among other factors, seismic data, requirements to relinquish acreage, drilling results and activity, remaining time in the commitment period, remaining capital plans, and political, economic, and market conditions. During any period in which factors indicate an impairment, the cumulative costs incurred to date for such property are transferred to the full cost pool and are then subject to depletion. For countries where a reserve base has not yet been established, the impairment is charged to earnings. In exploration areas, related seismic costs are capitalized in unproved property and evaluated as part of the total capitalized costs associated with a property. Seismic costs related to development projects are recorded in proved properties and therefore subject to depletion as incurred. Gains and losses on the sale or other disposition of oil and natural gas properties are not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. Asset retirement obligation The Company records an estimated liability for future costs associated with the abandonment of its oil and gas properties including the costs of reclamation of drilling sites. The Company records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred with an offsetting increase to the related oil and gas properties. 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. 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. The accretion of the asset retirement obligation and amortization of the asset retirement cost are included in DD&A. If estimated future costs of an asset retirement obligation change, an adjustment is recorded to both the asset retirement obligation and oil and gas properties. Revisions to the estimated asset retirement obligation can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. Other capital assets Other capital assets, including additions and replacements, are recorded at cost upon acquisition and include furniture, fixtures and leasehold improvement, computer equipment and automobiles. Depreciation is provided using the declining-balance method at a 30% annual rate for furniture and fixtures, computer equipment and automobiles. Leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful life and the term of the related lease. The cost of repairs and maintenance is charged to expense as incurred. Goodwill Goodwill represents the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. The Company assesses qualitative factors annually, or more frequently if necessary, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and whether it is necessary to perform the goodwill impairment test. The impairment test requires allocating goodwill and certain other assets and liabilities to assigned reporting units. The fair value of each reporting unit is estimated and compared with its net book value. An impairment loss is recognized if the estimated fair value of the reporting unit is less than its carrying amount, not exceeding the carrying amount of goodwill allocated to that reporting unit. Because quoted market prices are not available for the Company’s reporting unit, the fair value of the reporting unit is estimated based upon estimated future cash flows of the reporting unit. The goodwill relates entirely to the Colombia reportable segment. The Company performed a qualitative assessment of goodwill at December 31, 2017 , and based on this assessment, no impairment of goodwill was identified. Convertible Notes The Company accounts for its 5.00% Convertible Senior Notes due 2021 (the "Convertible Notes") as a liability in their entirety. The embedded features of the Convertible Notes were assessed for bifurcation from the Convertible Notes under the applicable provisions, including the basic conversion feature, the fundamental change make-whole provision and the put and call options. Based on an assessment, the Company concluded that these embedded features did not meet the criteria to be accounted for separately. The Company incurred debt issuance costs in connection with the issuance of the Convertible Notes which have been presented as a direct deduction against the carrying amount of the Convertible Notes and are being amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes. Revenue recognition Revenue from the production of oil and natural gas is recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable, the sale is evidenced by a contract and collection of the revenue is reasonably assured. Revenue represents the Company’s share and is recorded net of royalty payments to governments and other mineral interest owners. Stock-based compensation The Company records stock-based compensation expense in its consolidated financial statements measured at the fair value of the awards that are ultimately expected to vest. Fair values are determined using pricing models such as the Black-Scholes-Merton or Monte Carlo simulation stock option-pricing models and/or observable share prices. For equity-settled stock-based compensation awards, fair values are determined at the grant date and the expense, net of estimated forfeitures, is recognized using the accelerated method over the requisite service period. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures. For cash-settled stock-based compensation awards, fair values are determined at each reporting date and periodic changes are recognized as compensation costs, with a corresponding change to liabilities. The Company uses historical data to estimate the expected term used in the Black-Scholes option pricing model, option exercises and employee departure behavior. Expected volatilities used in the fair value estimate are based on the historical volatility of the Company’s shares. The risk-free rate for periods within the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. Stock-based compensation expense is capitalized as part of oil and natural gas properties or expensed as part of general and administrative (“G&A”) or operating expenses, as appropriate. Foreign currency translation The functional currency of the Company, including its subsidiaries, is the United States dollar. Monetary items are translated into the reporting currency at the exchange rate in effect at the balance sheet date and non-monetary items are translated at historical exchange rates. Revenue and expense items are translated in a manner that produces substantially the same reporting currency amounts that would have resulted had the underlying transactions been translated on the dates they occurred. DD&A expense on assets is translated at the historical exchange rates similar to the assets to which they relate. Gains and losses resulting from foreign currency transactions, which are transactions denominated in a currency other than the entity’s functional currency, are recognized in net income or loss. Loss per share Basic loss per share is calculated by dividing loss 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 or loss 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. Recently Adopted Accounting Pronouncements Simplifying the Measurement of Inventory In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-11, “Simplifying the Measurement of Inventory". The ASU provides guidance for the subsequent measurement of inventory and requires that inventory that is measured using average cost be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The implementation of this update did not have an impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting ". This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for forfeitures, income taxes, and statutory tax withholding requirements. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company elected to continue to estimate the total number of awards for which the requisite service period will not be rendered. The implementation of this update did not impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. Income Taxes - Intra-Entity Transfers of Assets Other than Inventory At December 31, 2016, GAAP prohibited the recognition of current and deferred income taxes for intra-entity transfers until an asset leaves the consolidated group, therefore, the current income tax effect of tax reorganizations completed in 2016 was deferred and recognized as prepaid income taxes. At December 31, 2016, the Company's balance sheet included $54.1 million of prepaid income taxes, $12.3 million in current prepaid taxes and $41.8 million in long-term prepaid taxes, and $37.5 million of current income taxes payable relating to tax reorganizations completed in 2016. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other than Inventory." This ASU requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense or benefit in the period the sale or transfer occurs. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption was permitted as of the beginning of an annual reporting period. The ASU is required to be applied on a modified retrospective basis with a cumulative-effect adjustment directly to retained earnings in the period of adoption. The Company early adopted this ASU on January 1, 2017, and in the three months ending March 31, 2017, wrote off the income tax effects that had been deferred from past intercompany transactions to opening deficit. A total of $124.5 million , representing deferred tax assets of $178.6 million , net of $54.1 million of prepaid tax, was recorded directly to opening deficit at January 1, 2017. Deferred tax assets recorded upon adoption were assessed for realizability under Accounting Standards Codification ("ASC") 740 "Income Taxes", and, valuation allowances were recognized on those deferred tax assets as necessary on the date of adoption. The adoption of ASU 2016-16 did not have any effect on the Company’s cash flows. Restricted Cash and Cash Equivalents In November 2016, the FASB issued ASU 2016-18, "Restricted Cash". ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. Early adoption was permitted. The Company early adopted this ASU on January 1, 2017, on a retrospective basis to each period presented. The implementation of this ASU did not impact the Company's consolidated financial position or results of operations. For the year ended December 31, 2016 , the net decrease in cash, cash equivalents and restricted cash and cash equivalents currently disclosed was $105.5 million , compared with the net decrease in cash and cash equivalents of $120.2 million as previously disclosed in the consolidated statement of cash flows prior to the adoption of ASU 2016-18. For the year ended December 31, 2015 , the net decrease in cash, cash equivalents and restricted cash and cash equivalents currently disclosed was $187.0 million , compared with the net decrease in cash and cash equivalents of $186.5 million as previously disclosed in the consolidated statement of cash flows prior to the adoption of ASU 2016-18. Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business". ASU 2017-01 narrows the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction involves an asset or a business. ASU 2017-01 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. Early adoption was permitted and the Company adopted this ASU on January 1, 2017. The Company now applies an initial screen for determining whether a transaction involves an asset or a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identified asset, or group of similar identifiable assets, the set will not be a business and no goodwill or gain on acquisition will be recognized. If the screen is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create an output. The Company’s acquisition of the Santana and Nancy Burdine-Maxine oil and gas properties during the year ended December 31, 2017 was not considered a business under this ASU and therefore not allocated goodwill or gain on acquisition (Note 5). Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment". ASU 2017-04 eliminates step 2 of the goodwill impairment test. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2019. Early adoption is permitted. At December 31, 2017, the Company performed a qualitative assessment of goodwill and, based on this assessment, no impairment of goodwill was identified. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued guidance regarding the accounting for revenue from contracts with customers. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date”. The ASU deferred the effective date of the new revenue recognition model by one year. As a result, the guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies implementation guidance on principal versus agent considerations. In April, May and December 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing”, ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients” and ASU 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”, respectively, which addressed implementation issues and provided technical corrections. The guidance may be applied retrospectively or using a modified retrospective approach to adjust retained earnings. The Company has completed its evaluation of the impact of the ASU and has reviewed its various revenue streams and underlying contracts. The Company adopted the new standard using the modified retrospective method at the date of adoption, January 1, 2018. Adoption of the ASU did not have a material impact on the Company’s consolidated financial statements, other than enhanced disclosure related to revenues from contracts with customers as prescribed by ASU. 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 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. This ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows or disclosure. Leases In February 2016, the FASB issued ASU 2016-02, “Leases". This ASU will require most lease assets and lease liabilities to be recognized on the balance sheet and the disclosure of key information about lease arrangements. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact the new lease standard will have on its consolidated financial position, results of operations, cash flows, and disclosure. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses". This ASU replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires a broader range of reasonable and supportable information to support credit loss estimates. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. 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 Reportin
Segment and Geographic Reporting | 12 Months Ended |
Dec. 31, 2017 | |
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 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 its Peru business unit effective December 18, 2017 , Brazil and Peru were reportable segments. The "All Other" category represents the Company’s corporate, Brazil and Peru activities until the date of sale. The Company evaluates reportable segment performance based on income or loss before income taxes. The following tables present information on the Company’s reportable segment and other activities: Year Ended December 31, 2017 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 413,316 $ 8,418 $ 421,734 DD&A expenses 126,453 4,882 131,335 Asset impairment — 1,514 1,514 General and administrative expenses 23,500 15,514 39,014 Interest expense 486 13,396 13,882 Loss on sale — (44,385 ) (44,385 ) Income (loss) before income taxes 111,829 (74,499 ) 37,330 Segment capital expenditures 242,636 8,405 251,041 Year Ended December 31, 2016 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 280,872 $ 8,397 $ 289,269 DD&A expenses 132,569 6,966 139,535 Asset impairment 514,314 102,335 616,649 General and administrative expenses 17,187 16,031 33,218 Interest expense — 14,145 14,145 Gain on acquisition — 929 929 Loss before income taxes (505,447 ) (144,787 ) (650,234 ) Segment capital expenditures 105,963 21,826 127,789 Year Ended December 31, 2015 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 269,035 $ 6,976 $ 276,011 DD&A expenses 167,701 8,685 176,386 Asset impairment 235,069 88,849 323,918 General and administrative expenses 9,805 22,548 32,353 Loss before income taxes (238,463 ) (129,625 ) (368,088 ) Segment capital expenditures 85,326 71,313 156,639 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 As at December 31, 2016 (Thousands of U.S. Dollars) Colombia All Other Total Property, plant and equipment $ 939,947 $ 126,662 $ 1,066,609 Goodwill 102,581 — $ 102,581 All other assets 177,393 21,313 $ 198,706 Total Assets $ 1,219,921 $ 147,975 $ 1,367,896 The following table presents the number of customers from whom the Company derived 10% or more of its consolidated oil and gas sales and sales as a percentage of the Company's consolidated oil and gas sales to each customer. All of these customers were in the Company's Colombian reportable segment: Year Ended December 31, 2017 2016 2015 Number of significant customers 3 3 4 Sales to each significant customer as % of oil and gas sales 44 % 31 % 17 % 40 % 34 % 13 % 43 % 15 % 13 % 12 % |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable As at December 31, (Thousands of U.S. Dollars) 2017 2016 Trade $ 37,794 $ 39,203 Other 7,559 6,495 $ 45,353 $ 45,698 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As at December 31, (Thousands of U.S. Dollars) 2017 2016 Oil and natural gas properties Proved $ 2,810,796 $ 2,652,171 Unproved 464,948 647,774 3,275,744 3,299,945 Other 26,401 29,445 3,302,145 3,329,390 Accumulated depletion, depreciation and impairment (2,202,921 ) (2,262,781 ) $ 1,099,224 $ 1,066,609 Depletion and depreciation expense on property, plant and equipment for the year ended December 31, 2017 , was $126.8 million ( year ended December 31, 2016 - $130.2 million ; year ended December 31, 2015 - $177.9 million ). A portion of depletion and depreciation expense was recorded as inventory in each year and adjusted for inventory changes. Asset impairment for the three years ended December 31, 2017 , was as follows: (Thousands of U.S. Dollars) Year Ended December 31, 2017 2016 2015 Impairment of oil and gas properties $ 1,514 $ 615,985 $ 321,285 Impairment of inventory — 664 2,633 $ 1,514 $ 616,649 $ 323,918 In the year ended December 31, 2016 , the Company recorded ceiling test impairment losses of $513.7 million in its Colombia cost center, and $71.1 million in its Brazil cost center. The Colombia ceiling test impairment loss related to lower oil prices and the fact that the acquisitions of PetroLatina and PetroAmerica were initially added into the cost base at estimated fair value. However, these acquired assets were subjected to a prescribed U.S. GAAP ceiling test, which is not a fair value test, and which, as noted below, uses constant commodity pricing that averages prices during the preceding 12 months. The Brazil ceiling test impairment loss related to continued low oil prices and increased costs in the depletable base as a result of a $45.0 million impairment of unproved properties. In the year ended December 31, 2015 , the Company recorded ceiling test impairment losses of $232.4 million in its Colombia cost center, and $46.9 million in its Brazil cost center as a result of lower realized prices. The Company follows the full cost method of accounting for its oil and gas properties. Under this method, the net book value of properties on a country-by-country basis, less related deferred income taxes, may not exceed a calculated “ceiling”. The ceiling is the estimated after tax future net revenues from proved oil and gas properties, discounted at 10% per year. In calculating discounted future net revenues, oil and natural gas prices are determined using the average price during the 12 months period prior to the ending date of the period covered by the balance sheet, calculated as an unweighted arithmetic average of the first-day-of-the month price for each month within such period for that oil and natural gas. That average price is then held constant, except for changes which are fixed and determinable by existing contracts. Therefore, ceiling test estimates are based on historical prices discounted at 10% per year and it should not be assumed that estimates of future net revenues represent the fair market value of the Company's reserves. In accordance with GAAP, Gran Tierra used an average Brent price of $54.19 per bbl for the purposes of the December 31, 2017 ceiling test calculations (September 30, 2017 - 52.70 , June 30, 2017 - $51.35 , March 31, 2017 - $49.33 ; December 31, 2016 - $42.92 ; September 30, 2016 - $42.23 ; June 30, 2016 - $44.48 , March 31, 2016 - $48.79 ; December 31, 2015 - $54.08 ). In the years ended December 31, 2016 and 2015 , the Company recorded impairment losses of $31.2 million and $41.9 million , respectively, related to costs incurred on Block 95 and other blocks in Peru. On February 19, 2015, the Company made the decision to cease all further development expenditures on the Bretaña Field on Block 95 other than what is necessary to maintain tangible asset integrity and security. Acquisition of Santana and Nancy Burdine-Maxine Blocks On April 27, 2017 , the Company acquired the Santana and Nancy-Burdine-Maxine Blocks in the Putumayo Basin for cash consideration of $30.4 million . The acquisition was accounted for as an asset acquisition with the consideration paid allocated on a relative fair value basis to the net assets acquired. The following table shows the allocation of the cost of the acquisition based on the relative fair values of the assets and liabilities acquired: (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 30,410 Allocation of Consideration Paid: Oil and gas properties Proved $ 24,405 Unproved 8,649 33,054 Inventory 869 Asset retirement obligation - long-term (3,513 ) $ 30,410 Acquisition of PGC On January 25, 2016, the Company acquired all of the issued and outstanding common shares of PGC, pursuant to the terms and conditions of an acquisition agreement dated January 14, 2016. Upon completion of the transaction, PGC became an indirect wholly-owned subsidiary of Gran Tierra. The net purchase price of PGC was $19.4 million , after giving consideration to net working capital of $18.3 million . The acquisition was accounted for as an asset acquisition with the excess consideration paid over the fair value of the net assets acquired allocated on a relative fair value basis to the net assets acquired. (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 37,727 Allocation of Consideration Paid: Oil and gas properties Proved $ 12,228 Unproved 15,563 27,791 Net working capital (including cash acquired of $0.2 million and restricted cash of $18.6 million) 18,339 Asset retirement obligation - long-term (8,403 ) $ 37,727 Property acquisitions in the year ended December 31, 2017 included $4.0 million of contingent consideration related to the 2016 acquisition of PGC. The contingent consideration was subject to Gran Tierra reaching a certain level of production plus gross proved plus probable reserves in the Putumayo-7 Block and was payable at December 31, 2017. The Company recognized contingent consideration in accounts payable and accrued liabilities on its balance sheet as at December 31, 2017 . Disposition of Peru Business Unit On December 18, 2017, Gran Tierra completed the sale of its Peru business unit. Pursuant to the divestiture, Sterling acquired all of the issued and outstanding shares in Gran Tierra's indirect, wholly owned subsidiary that indirectly held all of its Peruvian assets for aggregate consideration of $33.5 million , comprised of approximately 187.3 million common shares of Sterling and an estimated cash-settled working capital adjustment of $0.4 million . Escrow conditions are applicable to 90% of the share consideration, which will be released from escrow at 15% every 6 months for 36 months following December 18, 2017. Additionally, in connection with the divestiture, Gran Tierra purchased $11.0 million of subscription receipts which were exchangeable for common shares of PetroTal Ltd. and subsequently exchanged them for approximately 58.9 million common shares of Sterling. After giving effect to the divestiture, Gran Tierra directly and indirectly holds approximately 246.2 million common shares representing approximately 46% of Sterling's issued and outstanding common shares. Sterling is a junior oil and gas company focused on development of oil and gas assets in Peru. In connection with the divestiture, Gran Tierra, through two of its indirect, wholly owned subsidiaries, entered into an investor rights agreement with Sterling, pursuant to which, Gran Tierra has the right to nominate two directors to the board of Sterling, as well as certain demand and piggy-back registration rights and certain pre-emptive rights, subject to the terms and conditions set forth in the investor rights agreement. Gran Tierra is prohibited from exercising voting rights over more than 30% of the issued and outstanding Sterling Common Shares. In addition, Gran Tierra, through its indirect, wholly-owned subsidiary, entered into a carried interest and option agreement with Sterling and a Peruvian subsidiary, pursuant to which Gran Tierra has a 20% carried working interest in Block 107, located in the Ucayali basin in Peru, which interest may, at the option of Gran Tierra, either be converted to a non-carried working interest or be forfeited following the drilling of an exploration well in Block 107. At December 18, 2017, the net book value of the Peru business unit was greater than proceeds received resulting in a $34.1 million loss on sale. At December 31, 2016, assets and liabilities of the Peru business unit were as follows: (Thousands of U.S. Dollars) As at December 31, 2016 Current assets $ 1,051 Property, plant and equipment 68,428 Other long-term assets 9,799 $ 79,278 Current liabilities $ (940 ) Long-term liabilities (13,370 ) $ (14,310 ) Disposition of Brazil Business Unit On June 30, 2017, the Company, through two of its indirect subsidiaries (the “Selling Subsidiaries”), completed the previously announced disposition of its assets in Brazil. Gran Tierra completed the disposition of its Brazil business unit for a purchase price of $35.0 million , which, after certain final closing adjustments, resulted in cash consideration paid to the Selling Subsidiaries of approximately $36.8 million . At June 30, 2017, the net book value of the Brazil business unit was greater than proceeds received resulting in a $10.2 million loss on sale. At December 31, 2016, assets and liabilities of the Brazil business unit were as follows: (Thousands of U.S. Dollars) As at December 31, 2016 Current assets $ 1,634 Property, plant and equipment 55,376 $ 57,010 Current liabilities $ (11,590 ) Long-term liabilities (2,297 ) $ (13,887 ) Other During the year ended December 31, 2016 , Gran Tierra sold non-operated and non-core assets in Colombia to a third party for cash consideration of $6.0 million . Unproved oil and natural gas properties At December 31, 2017, unproved oil and natural gas properties consist of exploration lands held in Colombia. Unproved oil and natural gas 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. The Company expects that approximately 76% of costs not subject to depletion at December 31, 2017 , will be transferred to the depletable base within the next five years and the remainder in the next five to 10 years. The following is a summary of Gran Tierra’s oil and natural gas properties not subject to depletion as at December 31, 2017 : Costs Incurred in (Thousands of U.S. Dollars) 2017 2016 2015 Prior to 2015 Total Acquisition costs - Colombia $ 8,076 $ 319,025 $ — $ 33,080 $ 360,181 Exploration costs - Colombia 52,769 10,124 8,795 33,079 104,767 $ 60,845 $ 329,149 $ 8,795 $ 66,159 $ 464,948 |
Debt and Debt Issuance Costs
Debt and Debt Issuance Costs | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company's debt at December 31, 2017 and 2016 , was as follows: As at December 31, (Thousands of U.S. Dollars) 2017 2016 Convertible Notes (a) $ 115,000 $ 115,000 Revolving credit facility (b) 148,000 90,000 Unamortized debt issuance costs (6,458 ) (7,917 ) Long-term debt $ 256,542 $ 197,083 a) Convertible Notes At December 31, 2017 , the Company had $115 million of Convertible Notes outstanding. The Convertible Notes bear interest at a rate of 5.00% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2016. The Convertible Notes will mature on April 1, 2021, unless earlier redeemed, repurchased or converted. The Convertible Notes are unsecured and are subordinated to secured debt to the extent of the value of the assets securing such indebtedness. The Convertible Notes are convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding the maturity date. The conversion rate is initially 311.4295 shares of Common Stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $3.21 per share of Common Stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such a corporate event in certain circumstances. The Company may not redeem the Convertible Notes prior to April 5, 2019, except in certain circumstances following a fundamental change (as defined in the indenture governing the Convertible Notes). The Company may redeem for all cash or any portion of the Convertible Notes, at its option, on or after April 5, 2019, if (terms below are as defined in the indenture governing the Convertible Notes): (i) the last reported sale price of the Company's Common Stock has been at least 150% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption; and (ii) the Company has filed all reports that it is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (other than current reports on Form 8-K), during the twelve months preceding the date on which the Company provides such notice. The redemption price will be equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. No sinking fund is provided for the Convertible Notes. If the Company undergoes a fundamental change, holders may require the Company to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Net proceeds from the sale of the Convertible Notes were $109.1 million , after deducting the initial purchasers' discount and the offering expenses payable by the Company. b) Credit Facility At December 31, 2017 , the Company had a revolving credit facility with a syndicate of lenders with a borrowing base of $300 million . Availability under the revolving credit facility is determined by the reserves-based borrowing base determined by the lenders. On November 10, 2017, as a result of the Ninth Amendment to the credit agreement, the borrowing base of $300 million was reaffirmed and, among other things, the maturity date of the borrowing under the revolving credit facility was extended from October 1, 2018 to November 10, 2020. T he next re-determination of the borrowing base is due to occur no later than May 2018. Amounts drawn down under the revolving credit facility bear interest, at the Company's option, at the USD LIBOR rate plus a margin ranging from 2.15% to 3.65% ( December 31, 2016 - 2.00% to 3.00% ), or an alternate base rate plus a margin ranging from 1.15% to 2.65% , in each case based on the borrowing base utilization percentage. The alternate base rate is currently the U.S. prime rate. At December 31, 2017 the weighted-average interest rate on the balance outstanding on the Company's revolving credit facility was approximately 3.64% . Undrawn amounts under the revolving credit facility bear interest from 0.54% to 0.91% ( December 31, 2016 - 0.75% ) per annum, based on the average daily amount of unused commitments. A letter of credit participation fee of 0.25% per annum will accrue on the average daily amount of letter of credit exposure. The Company’s revolving credit facility is guaranteed by and secured against the assets of certain of the Company’s subsidiaries (the "Credit Facility Group"). Under the terms of the credit facility, the Company is subject on certain restrictions on its ability to distribute funds to entities outside of the Credit Facility Group, including restrictions on the ability to pay dividends to shareholders of the Company. c) Interest expense The following table presents total interest expense recognized in the accompanying consolidated statements of operations: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 2015 Contractual interest and other financing expenses $ 11,467 $ 8,454 $ — Amortization of debt issuance costs 2,415 5,691 — $ 13,882 $ 14,145 $ — The Company incurred debt issuance costs in connection with the issuance of the Convertible Notes and its revolving credit facility. As at December 31, 2017 , the balance of unamortized debt issuance costs has been presented as a direct deduction against the carrying amount of debt and is being amortized to interest expense using the effective interest method over the term of the debt. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2017 | |
Equity [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 December 31, 2017 , outstanding share capital consists of 385,191,042 shares of Common Stock of the Company, 4,422,776 exchangeable shares of Gran Tierra Exchangeco Inc., (the "Exchangeco exchangeable shares") and 1,688,889 exchangeable shares of Gran Tierra Goldstrike Inc. (the "Goldstrike exchangeable shares"). The Exchangeco exchangeable shares were issued upon the acquisition of Solana. The Goldstrike exchangeable shares were issued upon the business combination between Gran Tierra Energy Inc., an Alberta corporation, and Goldstrike, Inc., which is now the Company. 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. 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. Shares of Common Stock Exchangeable Shares of Gran Tierra Exchangeco Inc. Exchangeable Shares of Gran Tierra Goldstrike Inc. Balance, December 31, 2016 390,807,194 4,812,592 3,387,302 Exchange of exchangeable shares 2,088,229 (389,816 ) (1,698,413 ) Shares repurchased and canceled (7,704,381 ) — — Balance, December 31, 2017 385,191,042 4,422,776 1,688,889 Share Repurchase Program On February 6, 2017, the Company announced that it had implemented a share repurchase program (the “2017 Program”) through the facilities of the Toronto Stock Exchange (“TSX”), the NYSE American and eligible alternative trading platforms in Canada and the United States. Under the 2017 Program, the Company is able to purchase at prevailing market prices up to 19,540,359 shares of Common Stock, representing 5.0% of the issued and outstanding shares of Common Stock as of January 27, 2017. Shares purchased pursuant to the 2017 Program will be canceled. The 2017 Program expired on February 7, 2018. Equity Compensation Awards The Company has an equity compensation program in place for its executives and employees. Equity compensation grants vest either based solely on recipient's continued employment or achievement of certain key measures of performance. Equity awards consist 80% of Performance Stock Units (“PSUs”) and 20% of stock options. The Company’s equity compensation awards outstanding as at December 31, 2017 , include PSUs, deferred share units (“DSUs”), restricted stock units (“RSUs”) and stock options. In accordance with the 2007 Equity Incentive Plan, the Company’s Board of Directors is authorized to issue options or other rights to acquire shares of the Company’s Common Stock. On June 27, 2012, the shareholders of Gran Tierra approved an amendment to the Company’s 2007 Equity Incentive Plan, which increased the Common Stock available for issuance thereunder from 23,306,100 shares to 39,806,100 shares. The following table provides information about PSU, DSU, RSU and stock option activity for the year ended December 31, 2017 : 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, 2016 3,362,717 208,698 359,145 9,239,478 $ 4.16 Granted 3,422,170 247,070 — 2,029,035 2.54 Exercised — — (224,548 ) — — Forfeited (652,936 ) — (12,507 ) (911,154 ) (4.79 ) Expired — — — (1,396,667 ) (4.65 ) Balance, December 31, 2017 6,131,951 455,768 122,090 8,960,692 $ 3.65 Exercisable, at December 31, 2017 5,044,267 $ 4.33 Vested, or expected to vest, at December 31, 2017, through the life of the options 8,792,816 $ 3.67 Stock-based compensation expense for the year ended December 31, 2017 , was $9.8 million ( December 31, 2016 - $6.3 million ; December 31, 2015 - $2.7 million ) and was primarily recorded in G&A expenses. At December 31, 2017 , there was $13.7 million ( December 31, 2016 - $10.0 million ) of unrecognized compensation cost related to unvested PSUs, RSUs and stock options which is expected to be recognized over a weighted average period of 1.6 years. The weighted-average remaining contractual term of options vested, or expected to vest, at December 31, 2017 was 2.9 years. PSUs PSUs entitle the holder to receive, at the option of the Company, either the underlying number of shares of the Company's Common Stock upon vesting of such units or a cash payment equal to the value of the underlying shares. PSUs will cliff vest after three years, subject to the continued employment of the grantee. The number of PSUs that vest may range from zero to 200% of the target number granted based on the Company’s performance with respect to the applicable performance targets. The performance targets for the PSUs outstanding as at December 31, 2017 , were as follows: (i) 50% of the award is subject to targets relating to the total shareholder return (“TSR”) of the Company against a group of peer companies (ii) 25% of the award is subject to targets relating to net asset value ("NAV") of the Company per share and NAV is based on before tax net present value discounted at 10% of proved plus probable reserves; and (iii) 25% of the award is subject to targets relating to the execution of corporate strategy. The compensation cost of PSUs is subject to adjustment based upon the attainability of these performance targets. No settlement will occur with respect to the portion of the PSU award subject to each performance target for results below the applicable minimum threshold for that target. PSUs in excess of the target number granted will vest and be settled if performance exceeds the targeted performance goals. The Company currently intends to settle the PSUs in cash. DSUs and RSUs DSUs and RSUs entitle the holder to receive, either the underlying number of shares of the Company's Common Stock upon vesting of such units or, at the option of the Company, a cash payment equal to the value of the underlying shares. The Company's historic practice has been to settle RSUs in cash and the Company currently intends to settle the RSUs and DSUs outstanding as at December 31, 2017 in cash, and, therefore, DSUs and RSUs are accounted for as liability instruments. Once a DSU or RSU is vested, it is immediately settled. During the year ended December 31, 2017 , DSUs were granted to directors and will vest 100% at such time the grantee ceases to be a member of the Board of Directors. For the year ended December 31, 2017 , the Company paid $0.6 million to cash settle RSUs ( 2016 - $1.2 million and 2015 - $ 1.4 million ). Stock Options Each stock option permits the holder to purchase one share of Common Stock at the stated exercise price. The exercise price equals the market price of a share of Common Stock at the time of grant. Stock options generally vest over three years. The term of stock options granted starting in May of 2013 is five years or three months after the grantee’s end of service to the Company, whichever occurs first. Stock options granted prior to May of 2013 continue to have a term of ten years or three months after the end of the grantee’s service to the Company, whichever occurs first. For the year ended December 31, 2017 , no stock options were exercised and no cash proceeds were received ( 2016 – 2,165,370 options exercised and shares issued; 2015 – 390,000 options exercised and shares issued). At December 31, 2017 , the weighted average remaining contractual term of outstanding stock options was 2.9 years and of exercisable stock options was 2.5 years. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model based on assumptions noted in the following table: Year Ended December 31, 2017 2016 2015 Dividend yield (per share) Nil Nil Nil Volatility 51% to 53% 50% to 54% 46% to 50% Weighted average volatility 52 % 52 % 48 % Risk-free interest rate 1.75% to 2.10% 0.94% to 1.78% 1.20% to 1.68% Expected term 4-5 years 4-5 years 4-5 years The weighted average grant date fair value for options granted in the year ended December 31, 2017 , was $1.11 ( 2016 - $1.14 ; 2015 - $1.24 ). The weighted average grant date fair value for options vested in the year ended December 31, 2017 , was $1.31 ( 2016 - $1.52 ; 2015 - $2.38 ). The total fair value of stock options vested during year ended December 31, 2017 , was $2.5 million ( 2016 - $2.8 million ; 2015 - $6.8 million ). Weighted Average Shares Outstanding For the year ended December 31, 2017 , 9,681,304 options, on a weighted average basis, ( 2016 - 10,662,034 options; 2015 - 13,432,287 options) were excluded from the diluted loss per share calculation as the options were anti-dilutive. |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [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: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 Balance, beginning of year $ 43,357 $ 33,224 Liability incurred 3,403 2,606 Settlements (1,507 ) (872 ) Accretion 3,825 2,789 Revisions in estimated liability (4,095 ) (6,856 ) Liabilities associated with assets sold (16,932 ) (3,257 ) Liabilities assumed in acquisitions 3,513 15,723 Balance, end of year $ 31,564 $ 43,357 Asset retirement obligation - current $ 323 $ 5,215 Asset retirement obligation - long-term 31,241 38,142 Balance, end of year $ 31,564 $ 43,357 For the year ended December 31, 2017 , settlements included cash payments of $1.3 million with the balance in accounts payable and accrued liabilities at December 31, 2017 ( December 31, 2016 - $0.6 million ). Revisions in 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 asset retirement obligations. At December 31, 2017 , the fair value of assets that were legally restricted for purposes of settling asset retirement obligations was $12.7 million ( December 31, 2016 - $12.0 million ). These assets were accounted for as restricted cash and cash equivalents on the Company's balance sheet. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The income tax expense reported differs from the amount computed by applying the U.S. statutory rate to loss before income taxes for the following reasons: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 2015 Income (Loss) before income taxes United States $ (51,215 ) $ (23,986 ) $ (14,061 ) Foreign 88,545 (626,248 ) (354,027 ) 37,330 (650,234 ) (368,088 ) 35 % 35 % 35 % Income tax expense (recovery) expected 13,066 (227,582 ) (128,831 ) Impact of foreign taxes (1) 12,310 (9,799 ) (13,087 ) Other local taxes 1,056 1,998 2,354 Stock-based compensation 2,001 1,955 919 Increase in valuation allowance 52,269 47,675 37,691 Sale of Peru and Brazil business units (12,527 ) — — Non-deductible third party royalty in Colombia 3,194 2,550 3,416 Other permanent differences (2,331 ) (1,466 ) (2,521 ) Total income tax expense (recovery) $ 69,038 $ (184,669 ) $ (100,059 ) Current income tax expense United States $ 3,457 $ 1,818 $ 1,070 Foreign 20,865 18,304 14,313 24,322 20,122 15,383 Deferred income tax expense (recovery) Foreign (2) 44,716 (204,791 ) (115,442 ) Total income tax expense (recovery) $ 69,038 $ (184,669 ) $ (100,059 ) (1) Impact of foreign taxes in the rate reconciliation are tax effected at the 35% statutory rate and were primarily due to higher income tax rates in Colombia. Impact of foreign taxes for the years ended December 31, 2017 , 2016 and 2015 , included $8.0 million (expense), $23.3 million (recovery) and $11.8 million (recovery), respectively, in Colombia. (2) The deferred tax recovery for the year ended December 31, 2016 , included $201.3 million associated with the ceiling test impairment loss in Colombia. Undistributed earnings of foreign subsidiaries as of December 31, 2017 , were considered to be permanently reinvested. A determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. In the fourth quarter of 2016, the Colombian government approved tax legislation consolidating the corporate Income and CREE taxes into a single income tax at 40% for 2017 (including a surtax of 6%), 37% for 2018 (including a surtax of 4%) and 33% for 2019 and onwards. The tax rates applied to the calculation of deferred income taxes, before valuation allowances, have been adjusted to reflect these changes. In the same legislation, the Colombian government also instituted a 5% dividend tax on distributions of previously taxed earnings from 2017 and onwards. The Law also increased the corporate minimum presumptive income tax from 3% to 3.5%. The tax is imposed on a taxpayer’s net equity at the prior year-end when the presumptive income exceeds actual taxable profits. The US government enacted the Tax Cuts and Jobs Act of 2017 (“TCJA”) on December 22, 2017. As of December 31, 2017, the Company is still evaluating the complete tax effects of the enactment of the TCJA. However, the Company has determined a reasonable estimate of the impact of the TCJA on its existing deferred tax balances and the one-time transition tax. Based on this estimate, the Company has determined that the there is no current tax expense impact to its financial statements as a result of the TCJA. The Company has also calculated an estimated deferred tax asset impact of $59 million , which is subject to a full valuation allowance because its recognition does not meet the “more-likely-than-not” threshold. Of the estimated amount, $1.1 million relates to the remeasurement of certain deferred tax assets and liabilities based on the rate at which they are expected to reverse in the future. As noted above, the Company is still evaluating the complete tax effects of the enactment of the TCJA and there are a number of uncertainties and ambiguities as to the interpretation and application of many of the provisions in the TCJA. In the absence of guidance on these matters and until the 2017 tax returns are finalized, which the Company expects to occur in October 2018, the Company expects to use what it believes are reasonable interpretations and assumptions in applying the TCJA for purposes of determining its cash tax liabilities and results of operations, which may change as it receives additional clarification and implementation guidance. Despite the fact that the Company has not prepared its tax returns for 2017, and therefore cannot provide a final estimate of 2017 foreign earning and profits, but considering the consistency of the Company’s 2017 foreign operations with prior years, the Company’s overall analysis of the one-time transition tax has not identified, nor does it expect to identify, any overall material adverse effect on its tax liability and financial condition. As at December 31, (Thousands of U.S. Dollars) 2017 2016 Deferred Tax Assets Tax benefit of operating loss carryforwards $ 60,460 $ 74,604 Tax basis in excess of book basis 62,768 187,651 Foreign tax credits and other accruals 70,157 48,341 Tax benefit of capital loss carryforwards 52,575 32,278 Deferred tax assets before valuation allowance 245,960 342,874 Valuation allowance (188,650 ) (341,263 ) 57,310 1,611 Deferred Tax Liabilities 28,417 107,230 Net Deferred Tax Assets (Liabilities) (1) $ 28,893 $ (105,619 ) (1) Effective November 1, 2016, several of Gran Tierra's subsidiaries executed intercompany sale agreements whereby certain depreciable assets were transferred within the consolidated Gran Tierra group. The purpose of the transaction was to improve the efficiency of Gran Tierra's operating and tax structures. The restructuring resulted in a consolidation of certain assets into a single entity in Colombia, an increase in the depreciable tax basis of the assets transferred, and current income taxes payable as at December 31, 2016, as a result of the capital gains taxes incurred. GAAP prohibited the recognition of current and deferred income taxes for intra-entity transfers until an asset leaves the consolidated group, therefore, the current and deferred income tax effect of the restructuring was deferred and recognized as prepaid income taxes at December 31, 2016. At January 1, 2017, the impact of the November 1, 2016, intercompany asset transfers was recognized pursuant to adoption of ASU 2016-16 (Note 2), which resulted in a material increase in the tax basis of certain Colombian assets. Accordingly, for 2017, this resulted in the Company realizing a change in its net deferred balance from a deferred tax liability at December 31, 2016 , to a deferred tax asset at December 31, 2017 . As at December 31, (Thousands of U.S. Dollars) 2017 2016 Operating loss carryforwards $ 199,138 $ 257,023 Capital loss carryforwards $ 288,322 $ 239,095 Of the operating loss and capital loss carryforwards, losses generated by the foreign subsidiaries of the Company. $ 392,053 $ 496,118 In certain jurisdictions, operating loss carryforwards expire between 2018 and 2037, while certain other jurisdictions allow operating losses to be carried forward indefinitely. Capital losses can be carried forward indefinitely. The valuation allowance decreased by $152.6 million during the year ended December 31, 2017 . The change in the valuation allowance was primarily due to $212.1 million decrease as a result of the sale of Peru and Brazil business units.This is partially offset by $86.7 million increase in capital losses generated in Luxembourg as a result of the sale of Brazil, $20.9 million increase in foreign tax credits in the U.S. arising from the U.S. legislated one-time deemed repatriation of foreign earning, $7.1 million increase in tax basis as a result of the 2016 intercompany asset transfers recognized on January 1, 2017, pursuant to adoption of ASU 2016-16 and $10.2 million of losses incurred in the U.S., Colombia and Canada as well as other credits. These future tax benefits are fully off-set by valuation allowances, as their recognition does not meet the “more-likely-than-not” threshold. 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 open tax years 2009 through 2016 in certain jurisdictions. 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. On December 23, 2014, the Colombian Congress passed legislation which imposed an equity tax levied on Colombian operations for 2015, 2016 and 2017. The equity tax was calculated based on a legislated measure, which was based on the Company’s Colombian legal entities' balance sheet equity for tax purposes at January 1, 2015. This measure was subject to adjustment for inflation in future years. The equity tax rates for January 1, 2015, 2016 and 2017, were 1.15% , 1% and 0.4% , respectively. The legal obligation for each year's equity tax liability arose on January 1 of each year; therefore, the Company recognized the annual amount of $1.2 million , $3.1 million and $3.8 million for the equity tax expense in the consolidated statement of operations for the years ended December 31, 2017 , 2016 and 2015 . These amounts were paid in May and September of each year and at December 31, 2017 , accounts payable included nil ( December 31, 2016 - nil ). |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities As at December 31, (Thousands of U.S. Dollars) 2017 2016 Trade $ 99,146 $ 80,072 Royalties 6,867 4,542 Employee compensation 8,767 8,152 Other 11,391 14,285 $ 126,171 $ 107,051 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations, Firm Agreements and Leases As at December 31, 2017 , future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: Year ending December 31 Total 2018 2019 2020 2021 2022 Thereafter (Thousands of U.S. Dollars) Oil transportation services $ 10,895 $ 3,842 $ 3,842 $ 3,211 $ — $ — $ — Facility construction 27,006 5,446 5,446 5,461 5,446 5,207 — Operating leases 4,554 1,840 1,267 1,240 207 — — Software and telecommunication 961 339 320 302 — — — $ 43,416 $ 11,467 $ 10,875 $ 10,214 $ 5,653 $ 5,207 $ — Gran Tierra leases certain office space, compressors, vehicles, equipment and housing. Total rent expense for the year ended December 31, 2017 , was $3.2 million ( year ended December 31, 2016 – $3.2 million ; year ended December 31, 2015 - $4.0 million ). Indemnities Corporate indemnities have been provided by the Company to directors and officers for various items including, but not limited to, all costs to settle suits or actions due to their association with the Company and its subsidiaries and/or affiliates, subject to certain restrictions. The Company has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions. The maximum amount of any potential future payment cannot be reasonably estimated. The Company may provide indemnifications in the normal course of business that are often standard contractual terms to counterparties in certain transactions such as purchase and sale agreements. The terms of these indemnifications will vary based upon the contract, the nature of which prevents the Company from making a reasonable estimate of the maximum potential amounts that may be required to be paid. Letters of credit At December 31, 2017 , the Company had provided promissory notes totaling $76.0 million ( December 31, 2016 - $96.8 million ) as security for letters of credit relating to work commitment guarantees contained in exploration contracts and other capital or operating requirements. Contingencies The 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 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 $50.8 million as at December 31, 2017 . At this time, no amount has been accrued in the consolidated financial statements as Gran Tierra does not consider it probable that a loss will be incurred. In addition to the above, Gran Tierra has a number of 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. |
Financial Instruments, Fair Val
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk | Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk Financial Instruments At December 31, 2017 , the Company’s financial instruments recognized in the balance sheet consist of; cash and cash equivalents; restricted cash and cash equivalents; accounts receivable; investments; derivatives; accounts payable and accrued liabilities; long-term debt; PSU liability included in other long-term liabilities; and RSU liability included in accounts payable and accrued liabilities and other long-term liabilities. Fair Value Measurement The fair value of investment, derivatives and RSU and PSU liabilities are being remeasured at the estimated fair value at the end of each reporting period. The fair value of the short-term portion of the investment which was received as consideration on the sale of the Company's Peru business unit was estimated using quoted prices at December 31, 2017 and the market 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 Sterling’s cost 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 RSU liability was estimated based on quoted market prices in an active market. The fair value of the PSU liability was estimated based on option pricing model using the inputs, such as quoted market prices in an active market, and PSU performance factor. The fair value of investments, derivatives, RSU, PSU and DSU liabilities at December 31, 2017 , and December 31, 2016 were as follows: As at December 31, (Thousands of U.S. Dollars) 2017 2016 Investment - current and long-term assets $ 44,202 $ — Foreign currency derivative asset 302 578 $ 44,504 $ 578 Commodity price derivative liability $ 21,151 $ 3,824 RSU, PSU and DSU liability 11,430 3,907 $ 32,581 $ 7,731 The following table presents losses or gains on financial instruments recognized in the accompanying consolidated statements of operations: (Thousands of U.S. Dollars) Year Ended December 31, 2017 2016 2015 Commodity price derivative loss $ 17,327 $ 7,370 $ — Foreign currency derivative (gain) loss (1,287 ) (1,016 ) 692 Investment gain (111 ) — — Trading securities loss — 3,925 1,335 $ 15,929 $ 10,279 $ 2,027 These gains or losses are presented as financial instruments loss in the consolidated statements of operations and cash flows. Investment gain related to fair value gains on the Sterling shares Gran Tierra received in connection with the sale of its Peru business unit in December 2017 (Note 5). For the year ended December 31, 2017 these investment gains were unrealized. All trading securities were sold during the year ended December 31, 2016, and the trading securities loss represented a realized loss. The cash proceeds were included in cash flows from investing activities in the Company's consolidated statements of cash flows because these securities were received in connection with the sale of the Company's Argentina business unit in 2014. For the year ended December 31, 2015, the trading securities loss represented an unrealized loss. Financial instruments not recorded at fair value include the Convertible Notes (Note 6). At December 31, 2017 , the carrying amount of the Convertible Notes was $111.0 million , which represents the aggregate principal amount less unamortized debt issuance costs, and the fair value was $129.1 million . 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 December 31, 2017 , the fair value of current portion of the investment, RSU 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 a roll-forward of the long-term portion of the investment: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 Opening balance $ — $ — Acquisition 19,091 — Unrealized gain on valuation 56 — Closing balance $ 19,147 $ — 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 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 in the paragraph above regarding the fair value of the Company’s revolving credit facility was determined using an income approach using Level 3 inputs. The disclosure in the paragraph above regarding the fair value of the Convertible Notes was determined using Level 2 inputs based on the indicative pricing published by certain investment banks 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 cash equivalents and restricted cash and cash equivalents 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 December 31, 2017 , the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Sold Swap ($/bbl, Weighted Average) Purchased Call ($/bbl, Weighted Average) Swaps: January 1, to December 31, 2018 5,000 ICE Brent $ 55.90 n/a Participating Swaps: January 1, to December 31, 2018 5,000 ICE Brent $ 52.50 $ 56.11 Foreign Exchange Risk and 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, predominantly operating costs, general and administrative costs and transportation costs. At December 31, 2017 , the Company had outstanding foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) Reference Purchased Call Sold Put (COP, Weighted Average) Collars: January 1, 2018 to December 31, 2018 174,000 58,311 COP 3,000 3,107 The Company's cash flow is only impacted when the actual settlements under the derivative contracts result in making or receiving a payment to or from the counterparty. These cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. These cash settlements were included in cash flows from operating activities in the Company's consolidated statements of cash flows. While the use of these derivative instruments may limit or partially reduce the downside risk of adverse commodity price and foreign exchange movements, their use also may limit future income and gains from favorable commodity price and foreign exchange movements. Unrealized foreign exchange gains and losses primarily 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 $10,000 for each one peso decrease in the exchange rate of the Colombian peso to one U.S. dollar . This effect was calculated based on the Company's December 31, 2017 , deferred tax balances. For the year ended December 31, 2017 , 98% ( year ended December 31, 2016 - 97% , year ended December 31, 2015 - 97% ) of the Company's oil and natural gas sales were generated in Colombia. 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. Credit Risk 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 and cash equivalents, restricted cash and accounts receivable. The carrying value of cash and cash equivalents, restricted cash and accounts receivable reflects management’s assessment of credit risk . At December 31, 2017 , cash and cash equivalents and restricted cash included balances in bank accounts, term deposits and certificates of deposit, placed with financial institutions with investment grade credit ratings. 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 year ended December 31, 2017 , the Company had three customers which were significant to the Colombian segment. To reduce the concentration of exposure to any individual counterparty, the Company utilizes a group of investment-grade rated 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 derivative instruments. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's consolidated balance sheet that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (Thousands of U.S. Dollars) As at December 31, 2017 2016 2015 Cash and cash equivalents $ 12,326 $ 25,175 $ 145,342 Restricted cash and cash equivalents - current 11,787 8,322 92 Restricted cash and cash equivalents - long-term (1) 2,565 9,770 3,317 $ 26,678 $ 43,267 $ 148,751 (1) The long-term portion of restricted cash is included in other long-term assets on the Company's balance sheet. Net changes in assets and liabilities from operating activities were as follows: Year Ended December 31, 2017 2016 2015 Accounts receivable and other long-term assets $ (2,494 ) $ (29 ) $ 44,365 Derivatives — (3,546 ) — Inventory (78 ) 5,510 (1,571 ) Other prepaids 2,674 (615 ) 152 Accounts payable and accrued and other long-term liabilities 15,617 (9,691 ) (33,743 ) Prepaid tax and taxes receivable and payable (44,936 ) (2,966 ) (48,251 ) Net changes in assets and liabilities from operating activities $ (29,217 ) $ (11,337 ) $ (39,048 ) The following table provides additional supplemental cash flow disclosures: Year Ended December 31, 2017 2016 2015 Cash paid for income taxes $ 54,505 $ 64,067 $ 39,422 Cash paid for interest $ 9,684 $ 5,624 $ — Non-cash investing activities: Net liabilities related to property, plant and equipment, end of year $ 76,352 $ 55,181 $ 33,923 See Note 5 in these consolidated financial statements for disclosure regarding non-cash share consideration received in connection with the Company's disposition of its Peru Business unit. In the year ended December 31, 2016, the purchase price paid for acquisition of Petroamerica Oil Corp. included $25.8 million of Gran Tierra's Common Stock. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 15 , 2018, Gran Tierra Energy International Holdings Ltd., an indirect, wholly owned subsidiary of the Company, issued $300 million aggregate principal amount of its 6.25% Senior Notes due 2025 (the "2025 Notes") in a private placement transaction. The 2025 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 2025 Notes will mature on February 15, 2025 , unless earlier redeemed or repurchased. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of consolidation | Basis of consolidation These consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include: oil and natural gas reserves and related present value of future cash flows; depreciation, depletion, amortization and impairment (“DD&A”); impairment assessments of goodwill; timing of transfers from oil and gas properties not subject to depletion to the depletable base; asset retirement obligations; determining the value of the consideration transferred and the net identifiable assets acquired and liabilities assumed in connection with business combinations and determining goodwill; assessments of the likely outcome of legal and other contingencies; income taxes; stock-based compensation; and determining the fair value of derivatives and investment. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates and actual results may differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Restricted cash and cash equivalents | Restricted cash and cash equivalents Restricted cash and cash equivalents comprises cash and cash equivalents pledged to secure letters of credit and to settle asset retirement obligations. Letters of credit currently secured by cash relate to work commitment guarantees contained in exploration contracts. Restrictions will lapse when work obligations are satisfied pursuant to the exploration contract or an asset retirement obligation is settled. Cash and claims to cash that are restricted as to withdrawal or use for other than current operations or are designated for expenditure in the acquisition or construction of long-term assets are excluded from the current asset classification. The long term portion of restricted cash and cash equivalents is included in other long-term assets on the Company's balance sheet. |
Allowance for doubtful accounts | Allowance for doubtful accounts The Company estimates losses on receivables based on known uncollectible accounts, if any, and historical experience of losses incurred and accrues a reserve on a receivable when, based on the judgment of management, it is probable that a receivable will not be collected and the amount of the reserve may be reasonably estimated. |
Equity method investment | Equity method investment During December 2017, the Company acquired an investment in common shares of Sterling in connection with the sale of its Peru business unit (Note 5). At December 31, 2017, this investment represented approximately 46% of Sterling's issued and outstanding common shares. The Company determined that it did not have a controlling financial interest in Sterling, but could exert significant influence over Sterling's operating and financial policies as a result of its ownership interest in Sterling and the right to nominate two directors to Sterling's board of directors. Accordingly, Gran Tierra accounted for its investment in the common shares of Sterling as an equity method investment, but elected the fair value option for this investment to reflect the value that market participants would use to value the investment. The fair value of the investment in Sterling's common shares is recorded in 'Investments' in the consolidated balance sheet, and the change in fair value is recorded in the consolidated statement of operations as financial instruments gains or losses. |
Derivatives | Derivatives The Company records derivative instruments on its balance sheet at fair value as either an asset or liability with changes in fair value recognized in the consolidated statements of operations as financial instruments gains or losses. While the Company utilizes derivative instruments to manage the price risk attributable to its expected oil production and foreign exchange risk, it has elected not to designate its derivative instruments as accounting hedges under the accounting guidance. |
Inventory | Inventory Inventory consists of oil in tanks and third party pipelines and supplies and is valued at the lower of cost and net realizable value. The cost of inventory is determined using the weighted average method. Oil inventories include expenditures incurred to produce, upgrade and transport the product to the storage facilities and include operating, depletion and depreciation expenses and cash royalties. |
Income taxes | Income taxes Income taxes are recognized using the liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax base, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are provided if, after considering available evidence, it is not more likely than not that some or all of the deferred tax assets will be realized. The tax benefit from an uncertain tax position is recognized when it is more likely than not, based on the technical merits of the position, that the position will be sustained on examination by the taxing authorities. Additionally, the amount of the tax benefit recognized is the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The Company recognizes potential penalties and interest related to unrecognized tax benefits as a component of income tax expense. |
Oil and gas properties | Oil and gas properties The Company uses the full cost method of accounting for its investment in oil and natural gas properties as defined by the Securities and Exchange Commission (“SEC”). Under this method, the Company capitalizes all acquisition, exploration and development costs incurred for the purpose of finding oil and natural gas reserves, including salaries, benefits and other internal costs directly attributable to these activities. Costs associated with production and general corporate activities; however, are expensed as incurred. Separate cost centers are maintained for each country in which the Company incurs costs. The Company computes depletion of oil and natural gas properties on a quarterly basis using the unit-of-production method based upon production and estimates of proved reserve quantities. Future development costs related to properties with proved reserves are also included in the amortization base for computation of depletion. The costs of unproved properties are excluded from the amortization base until the properties are evaluated. The cost of exploratory dry wells is transferred to proved properties, and thus is subject to amortization, immediately upon determination that a well is dry in those countries where proved reserves exist. The Company performs a ceiling test calculation each quarter in accordance with SEC Regulation S-X Rule 4-10. In performing its quarterly ceiling test, the Company limits, on a country-by-country basis, the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes, to the estimated future net cash flows from proved oil and natural gas reserves discounted at 10% , net of related tax effects, plus the lower of cost or fair value of unproved properties included in the costs being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to net income or loss. Any such write-down will reduce earnings in the period of occurrence and results in a lower DD&A rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company calculates future net cash flows by applying the unweighted average of prices in effect on the first day of the month for the preceding 12-month period, adjusted for location and quality differentials. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. Unproved properties are not depleted pending the determination of the existence of proved reserves. Costs are transferred into the depletable base on an ongoing basis as the properties are evaluated and proved reserves are established or impairment is determined. Unproved properties are evaluated quarterly to ascertain whether impairment has occurred. This evaluation considers, among other factors, seismic data, requirements to relinquish acreage, drilling results and activity, remaining time in the commitment period, remaining capital plans, and political, economic, and market conditions. During any period in which factors indicate an impairment, the cumulative costs incurred to date for such property are transferred to the full cost pool and are then subject to depletion. For countries where a reserve base has not yet been established, the impairment is charged to earnings. In exploration areas, related seismic costs are capitalized in unproved property and evaluated as part of the total capitalized costs associated with a property. Seismic costs related to development projects are recorded in proved properties and therefore subject to depletion as incurred. Gains and losses on the sale or other disposition of oil and natural gas properties are not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. |
Asset retirement obligation | Asset retirement obligation The Company records an estimated liability for future costs associated with the abandonment of its oil and gas properties including the costs of reclamation of drilling sites. The Company records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred with an offsetting increase to the related oil and gas properties. 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. 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. The accretion of the asset retirement obligation and amortization of the asset retirement cost are included in DD&A. If estimated future costs of an asset retirement obligation change, an adjustment is recorded to both the asset retirement obligation and oil and gas properties. Revisions to the estimated asset retirement obligation can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. |
Other capital assets | Other capital assets Other capital assets, including additions and replacements, are recorded at cost upon acquisition and include furniture, fixtures and leasehold improvement, computer equipment and automobiles. Depreciation is provided using the declining-balance method at a 30% annual rate for furniture and fixtures, computer equipment and automobiles. Leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful life and the term of the related lease. The cost of repairs and maintenance is charged to expense as incurred. |
Goodwill | Goodwill Goodwill represents the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. The Company assesses qualitative factors annually, or more frequently if necessary, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and whether it is necessary to perform the goodwill impairment test. The impairment test requires allocating goodwill and certain other assets and liabilities to assigned reporting units. The fair value of each reporting unit is estimated and compared with its net book value. An impairment loss is recognized if the estimated fair value of the reporting unit is less than its carrying amount, not exceeding the carrying amount of goodwill allocated to that reporting unit. Because quoted market prices are not available for the Company’s reporting unit, the fair value of the reporting unit is estimated based upon estimated future cash flows of the reporting unit. |
Convertible Notes | Convertible Notes The Company accounts for its 5.00% Convertible Senior Notes due 2021 (the "Convertible Notes") as a liability in their entirety. The embedded features of the Convertible Notes were assessed for bifurcation from the Convertible Notes under the applicable provisions, including the basic conversion feature, the fundamental change make-whole provision and the put and call options. Based on an assessment, the Company concluded that these embedded features did not meet the criteria to be accounted for separately. The Company incurred debt issuance costs in connection with the issuance of the Convertible Notes which have been presented as a direct deduction against the carrying amount of the Convertible Notes and are being amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes. |
Revenue recognition | Revenue recognition Revenue from the production of oil and natural gas is recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable, the sale is evidenced by a contract and collection of the revenue is reasonably assured. Revenue represents the Company’s share and is recorded net of royalty payments to governments and other mineral interest owners. |
Stock-based compensation | Stock-based compensation The Company records stock-based compensation expense in its consolidated financial statements measured at the fair value of the awards that are ultimately expected to vest. Fair values are determined using pricing models such as the Black-Scholes-Merton or Monte Carlo simulation stock option-pricing models and/or observable share prices. For equity-settled stock-based compensation awards, fair values are determined at the grant date and the expense, net of estimated forfeitures, is recognized using the accelerated method over the requisite service period. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures. For cash-settled stock-based compensation awards, fair values are determined at each reporting date and periodic changes are recognized as compensation costs, with a corresponding change to liabilities. The Company uses historical data to estimate the expected term used in the Black-Scholes option pricing model, option exercises and employee departure behavior. Expected volatilities used in the fair value estimate are based on the historical volatility of the Company’s shares. The risk-free rate for periods within the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. Stock-based compensation expense is capitalized as part of oil and natural gas properties or expensed as part of general and administrative (“G&A”) or operating expenses, as appropriate. |
Foreign currency translation | Foreign currency translation The functional currency of the Company, including its subsidiaries, is the United States dollar. Monetary items are translated into the reporting currency at the exchange rate in effect at the balance sheet date and non-monetary items are translated at historical exchange rates. Revenue and expense items are translated in a manner that produces substantially the same reporting currency amounts that would have resulted had the underlying transactions been translated on the dates they occurred. DD&A expense on assets is translated at the historical exchange rates similar to the assets to which they relate. Gains and losses resulting from foreign currency transactions, which are transactions denominated in a currency other than the entity’s functional currency, are recognized in net income or loss. |
Loss per share | Loss per share Basic loss per share is calculated by dividing loss 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 or loss 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. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Simplifying the Measurement of Inventory In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-11, “Simplifying the Measurement of Inventory". The ASU provides guidance for the subsequent measurement of inventory and requires that inventory that is measured using average cost be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The implementation of this update did not have an impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting ". This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for forfeitures, income taxes, and statutory tax withholding requirements. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company elected to continue to estimate the total number of awards for which the requisite service period will not be rendered. The implementation of this update did not impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. Income Taxes - Intra-Entity Transfers of Assets Other than Inventory At December 31, 2016, GAAP prohibited the recognition of current and deferred income taxes for intra-entity transfers until an asset leaves the consolidated group, therefore, the current income tax effect of tax reorganizations completed in 2016 was deferred and recognized as prepaid income taxes. At December 31, 2016, the Company's balance sheet included $54.1 million of prepaid income taxes, $12.3 million in current prepaid taxes and $41.8 million in long-term prepaid taxes, and $37.5 million of current income taxes payable relating to tax reorganizations completed in 2016. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other than Inventory." This ASU requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense or benefit in the period the sale or transfer occurs. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption was permitted as of the beginning of an annual reporting period. The ASU is required to be applied on a modified retrospective basis with a cumulative-effect adjustment directly to retained earnings in the period of adoption. The Company early adopted this ASU on January 1, 2017, and in the three months ending March 31, 2017, wrote off the income tax effects that had been deferred from past intercompany transactions to opening deficit. A total of $124.5 million , representing deferred tax assets of $178.6 million , net of $54.1 million of prepaid tax, was recorded directly to opening deficit at January 1, 2017. Deferred tax assets recorded upon adoption were assessed for realizability under Accounting Standards Codification ("ASC") 740 "Income Taxes", and, valuation allowances were recognized on those deferred tax assets as necessary on the date of adoption. The adoption of ASU 2016-16 did not have any effect on the Company’s cash flows. Restricted Cash and Cash Equivalents In November 2016, the FASB issued ASU 2016-18, "Restricted Cash". ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. Early adoption was permitted. The Company early adopted this ASU on January 1, 2017, on a retrospective basis to each period presented. The implementation of this ASU did not impact the Company's consolidated financial position or results of operations. For the year ended December 31, 2016 , the net decrease in cash, cash equivalents and restricted cash and cash equivalents currently disclosed was $105.5 million , compared with the net decrease in cash and cash equivalents of $120.2 million as previously disclosed in the consolidated statement of cash flows prior to the adoption of ASU 2016-18. For the year ended December 31, 2015 , the net decrease in cash, cash equivalents and restricted cash and cash equivalents currently disclosed was $187.0 million , compared with the net decrease in cash and cash equivalents of $186.5 million as previously disclosed in the consolidated statement of cash flows prior to the adoption of ASU 2016-18. Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business". ASU 2017-01 narrows the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction involves an asset or a business. ASU 2017-01 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. Early adoption was permitted and the Company adopted this ASU on January 1, 2017. The Company now applies an initial screen for determining whether a transaction involves an asset or a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identified asset, or group of similar identifiable assets, the set will not be a business and no goodwill or gain on acquisition will be recognized. If the screen is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create an output. The Company’s acquisition of the Santana and Nancy Burdine-Maxine oil and gas properties during the year ended December 31, 2017 was not considered a business under this ASU and therefore not allocated goodwill or gain on acquisition (Note 5). Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment". ASU 2017-04 eliminates step 2 of the goodwill impairment test. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2019. Early adoption is permitted. At December 31, 2017, the Company performed a qualitative assessment of goodwill and, based on this assessment, no impairment of goodwill was identified. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued guidance regarding the accounting for revenue from contracts with customers. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date”. The ASU deferred the effective date of the new revenue recognition model by one year. As a result, the guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies implementation guidance on principal versus agent considerations. In April, May and December 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing”, ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients” and ASU 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”, respectively, which addressed implementation issues and provided technical corrections. The guidance may be applied retrospectively or using a modified retrospective approach to adjust retained earnings. The Company has completed its evaluation of the impact of the ASU and has reviewed its various revenue streams and underlying contracts. The Company adopted the new standard using the modified retrospective method at the date of adoption, January 1, 2018. Adoption of the ASU did not have a material impact on the Company’s consolidated financial statements, other than enhanced disclosure related to revenues from contracts with customers as prescribed by ASU. 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 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. This ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows or disclosure. Leases In February 2016, the FASB issued ASU 2016-02, “Leases". This ASU will require most lease assets and lease liabilities to be recognized on the balance sheet and the disclosure of key information about lease arrangements. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact the new lease standard will have on its consolidated financial position, results of operations, cash flows, and disclosure. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses". This ASU replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires a broader range of reasonable and supportable information to support credit loss estimates. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. 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 Report22
Segment and Geographic Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Geographic Segments | The following tables present information on the Company’s reportable segment and other activities: Year Ended December 31, 2017 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 413,316 $ 8,418 $ 421,734 DD&A expenses 126,453 4,882 131,335 Asset impairment — 1,514 1,514 General and administrative expenses 23,500 15,514 39,014 Interest expense 486 13,396 13,882 Loss on sale — (44,385 ) (44,385 ) Income (loss) before income taxes 111,829 (74,499 ) 37,330 Segment capital expenditures 242,636 8,405 251,041 Year Ended December 31, 2016 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 280,872 $ 8,397 $ 289,269 DD&A expenses 132,569 6,966 139,535 Asset impairment 514,314 102,335 616,649 General and administrative expenses 17,187 16,031 33,218 Interest expense — 14,145 14,145 Gain on acquisition — 929 929 Loss before income taxes (505,447 ) (144,787 ) (650,234 ) Segment capital expenditures 105,963 21,826 127,789 Year Ended December 31, 2015 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 269,035 $ 6,976 $ 276,011 DD&A expenses 167,701 8,685 176,386 Asset impairment 235,069 88,849 323,918 General and administrative expenses 9,805 22,548 32,353 Loss before income taxes (238,463 ) (129,625 ) (368,088 ) Segment capital expenditures 85,326 71,313 156,639 |
Long-lived Assets by Geographical Area | 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 As at December 31, 2016 (Thousands of U.S. Dollars) Colombia All Other Total Property, plant and equipment $ 939,947 $ 126,662 $ 1,066,609 Goodwill 102,581 — $ 102,581 All other assets 177,393 21,313 $ 198,706 Total Assets $ 1,219,921 $ 147,975 $ 1,367,896 |
Schedules of Consolidated Oil and Gas Sales | The following table presents the number of customers from whom the Company derived 10% or more of its consolidated oil and gas sales and sales as a percentage of the Company's consolidated oil and gas sales to each customer. All of these customers were in the Company's Colombian reportable segment: Year Ended December 31, 2017 2016 2015 Number of significant customers 3 3 4 Sales to each significant customer as % of oil and gas sales 44 % 31 % 17 % 40 % 34 % 13 % 43 % 15 % 13 % 12 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As at December 31, (Thousands of U.S. Dollars) 2017 2016 Trade $ 37,794 $ 39,203 Other 7,559 6,495 $ 45,353 $ 45,698 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As at December 31, (Thousands of U.S. Dollars) 2017 2016 Oil and natural gas properties Proved $ 2,810,796 $ 2,652,171 Unproved 464,948 647,774 3,275,744 3,299,945 Other 26,401 29,445 3,302,145 3,329,390 Accumulated depletion, depreciation and impairment (2,202,921 ) (2,262,781 ) $ 1,099,224 $ 1,066,609 |
Schedule of Asset Impairment | Asset impairment for the three years ended December 31, 2017 , was as follows: (Thousands of U.S. Dollars) Year Ended December 31, 2017 2016 2015 Impairment of oil and gas properties $ 1,514 $ 615,985 $ 321,285 Impairment of inventory — 664 2,633 $ 1,514 $ 616,649 $ 323,918 |
Schedule of Allocation of Cost of Acquisition | The acquisition was accounted for as an asset acquisition with the excess consideration paid over the fair value of the net assets acquired allocated on a relative fair value basis to the net assets acquired. (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 37,727 Allocation of Consideration Paid: Oil and gas properties Proved $ 12,228 Unproved 15,563 27,791 Net working capital (including cash acquired of $0.2 million and restricted cash of $18.6 million) 18,339 Asset retirement obligation - long-term (8,403 ) $ 37,727 The following table shows the allocation of the cost of the acquisition based on the relative fair values of the assets and liabilities acquired: (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 30,410 Allocation of Consideration Paid: Oil and gas properties Proved $ 24,405 Unproved 8,649 33,054 Inventory 869 Asset retirement obligation - long-term (3,513 ) $ 30,410 |
Summary of Assets and Liabilities of Disposal Groups | At December 31, 2016, assets and liabilities of the Brazil business unit were as follows: (Thousands of U.S. Dollars) As at December 31, 2016 Current assets $ 1,634 Property, plant and equipment 55,376 $ 57,010 Current liabilities $ (11,590 ) Long-term liabilities (2,297 ) $ (13,887 ) At December 31, 2016, assets and liabilities of the Peru business unit were as follows: (Thousands of U.S. Dollars) As at December 31, 2016 Current assets $ 1,051 Property, plant and equipment 68,428 Other long-term assets 9,799 $ 79,278 Current liabilities $ (940 ) Long-term liabilities (13,370 ) $ (14,310 ) |
Summary of Oil and Natural Gas Properties | The following is a summary of Gran Tierra’s oil and natural gas properties not subject to depletion as at December 31, 2017 : Costs Incurred in (Thousands of U.S. Dollars) 2017 2016 2015 Prior to 2015 Total Acquisition costs - Colombia $ 8,076 $ 319,025 $ — $ 33,080 $ 360,181 Exploration costs - Colombia 52,769 10,124 8,795 33,079 104,767 $ 60,845 $ 329,149 $ 8,795 $ 66,159 $ 464,948 |
Debt and Debt Issuance Costs (T
Debt and Debt Issuance Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt at December 31, 2017 and 2016 , was as follows: As at December 31, (Thousands of U.S. Dollars) 2017 2016 Convertible Notes (a) $ 115,000 $ 115,000 Revolving credit facility (b) 148,000 90,000 Unamortized debt issuance costs (6,458 ) (7,917 ) Long-term debt $ 256,542 $ 197,083 |
Schedule of Total Interest Expense Recognized | The following table presents total interest expense recognized in the accompanying consolidated statements of operations: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 2015 Contractual interest and other financing expenses $ 11,467 $ 8,454 $ — Amortization of debt issuance costs 2,415 5,691 — $ 13,882 $ 14,145 $ — |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Common Stock | Shares of Common Stock Exchangeable Shares of Gran Tierra Exchangeco Inc. Exchangeable Shares of Gran Tierra Goldstrike Inc. Balance, December 31, 2016 390,807,194 4,812,592 3,387,302 Exchange of exchangeable shares 2,088,229 (389,816 ) (1,698,413 ) Shares repurchased and canceled (7,704,381 ) — — Balance, December 31, 2017 385,191,042 4,422,776 1,688,889 |
Schedule of Information About PSU, DSU, RSU and Stock Option Activity | The following table provides information about PSU, DSU, RSU and stock option activity for the year ended December 31, 2017 : 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, 2016 3,362,717 208,698 359,145 9,239,478 $ 4.16 Granted 3,422,170 247,070 — 2,029,035 2.54 Exercised — — (224,548 ) — — Forfeited (652,936 ) — (12,507 ) (911,154 ) (4.79 ) Expired — — — (1,396,667 ) (4.65 ) Balance, December 31, 2017 6,131,951 455,768 122,090 8,960,692 $ 3.65 Exercisable, at December 31, 2017 5,044,267 $ 4.33 Vested, or expected to vest, at December 31, 2017, through the life of the options 8,792,816 $ 3.67 |
Schedule of Assumptions Using the Black-Scholes Option Pricing Model | The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model based on assumptions noted in the following table: Year Ended December 31, 2017 2016 2015 Dividend yield (per share) Nil Nil Nil Volatility 51% to 53% 50% to 54% 46% to 50% Weighted average volatility 52 % 52 % 48 % Risk-free interest rate 1.75% to 2.10% 0.94% to 1.78% 1.20% to 1.68% Expected term 4-5 years 4-5 years 4-5 years |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of 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: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 Balance, beginning of year $ 43,357 $ 33,224 Liability incurred 3,403 2,606 Settlements (1,507 ) (872 ) Accretion 3,825 2,789 Revisions in estimated liability (4,095 ) (6,856 ) Liabilities associated with assets sold (16,932 ) (3,257 ) Liabilities assumed in acquisitions 3,513 15,723 Balance, end of year $ 31,564 $ 43,357 Asset retirement obligation - current $ 323 $ 5,215 Asset retirement obligation - long-term 31,241 38,142 Balance, end of year $ 31,564 $ 43,357 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense Reported | The income tax expense reported differs from the amount computed by applying the U.S. statutory rate to loss before income taxes for the following reasons: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 2015 Income (Loss) before income taxes United States $ (51,215 ) $ (23,986 ) $ (14,061 ) Foreign 88,545 (626,248 ) (354,027 ) 37,330 (650,234 ) (368,088 ) 35 % 35 % 35 % Income tax expense (recovery) expected 13,066 (227,582 ) (128,831 ) Impact of foreign taxes (1) 12,310 (9,799 ) (13,087 ) Other local taxes 1,056 1,998 2,354 Stock-based compensation 2,001 1,955 919 Increase in valuation allowance 52,269 47,675 37,691 Sale of Peru and Brazil business units (12,527 ) — — Non-deductible third party royalty in Colombia 3,194 2,550 3,416 Other permanent differences (2,331 ) (1,466 ) (2,521 ) Total income tax expense (recovery) $ 69,038 $ (184,669 ) $ (100,059 ) Current income tax expense United States $ 3,457 $ 1,818 $ 1,070 Foreign 20,865 18,304 14,313 24,322 20,122 15,383 Deferred income tax expense (recovery) Foreign (2) 44,716 (204,791 ) (115,442 ) Total income tax expense (recovery) $ 69,038 $ (184,669 ) $ (100,059 ) (1) Impact of foreign taxes in the rate reconciliation are tax effected at the 35% statutory rate and were primarily due to higher income tax rates in Colombia. Impact of foreign taxes for the years ended December 31, 2017 , 2016 and 2015 , included $8.0 million (expense), $23.3 million (recovery) and $11.8 million (recovery), respectively, in Colombia. (2) The deferred tax recovery for the year ended December 31, 2016 , included $201.3 million associated with the ceiling test impairment loss in Colombia. |
Schedule of Deferred Tax Assets and Liabilities | As at December 31, (Thousands of U.S. Dollars) 2017 2016 Deferred Tax Assets Tax benefit of operating loss carryforwards $ 60,460 $ 74,604 Tax basis in excess of book basis 62,768 187,651 Foreign tax credits and other accruals 70,157 48,341 Tax benefit of capital loss carryforwards 52,575 32,278 Deferred tax assets before valuation allowance 245,960 342,874 Valuation allowance (188,650 ) (341,263 ) 57,310 1,611 Deferred Tax Liabilities 28,417 107,230 Net Deferred Tax Assets (Liabilities) (1) $ 28,893 $ (105,619 ) (1) Effective November 1, 2016, several of Gran Tierra's subsidiaries executed intercompany sale agreements whereby certain depreciable assets were transferred within the consolidated Gran Tierra group. The purpose of the transaction was to improve the efficiency of Gran Tierra's operating and tax structures. The restructuring resulted in a consolidation of certain assets into a single entity in Colombia, an increase in the depreciable tax basis of the assets transferred, and current income taxes payable as at December 31, 2016, as a result of the capital gains taxes incurred. GAAP prohibited the recognition of current and deferred income taxes for intra-entity transfers until an asset leaves the consolidated group, therefore, the current and deferred income tax effect of the restructuring was deferred and recognized as prepaid income taxes at December 31, 2016. At January 1, 2017, the impact of the November 1, 2016, intercompany asset transfers was recognized pursuant to adoption of ASU 2016-16 (Note 2), which resulted in a material increase in the tax basis of certain Colombian assets. Accordingly, for 2017, this resulted in the Company realizing a change in its net deferred balance from a deferred tax liability at December 31, 2016 , to a deferred tax asset at December 31, 2017 . |
Summary of Operating Loss and Capital Loss Carryforwards | As at December 31, (Thousands of U.S. Dollars) 2017 2016 Operating loss carryforwards $ 199,138 $ 257,023 Capital loss carryforwards $ 288,322 $ 239,095 Of the operating loss and capital loss carryforwards, losses generated by the foreign subsidiaries of the Company. $ 392,053 $ 496,118 |
Accounts Payable and Accrued 29
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As at December 31, (Thousands of U.S. Dollars) 2017 2016 Trade $ 99,146 $ 80,072 Royalties 6,867 4,542 Employee compensation 8,767 8,152 Other 11,391 14,285 $ 126,171 $ 107,051 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Agreements | As at December 31, 2017 , future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: Year ending December 31 Total 2018 2019 2020 2021 2022 Thereafter (Thousands of U.S. Dollars) Oil transportation services $ 10,895 $ 3,842 $ 3,842 $ 3,211 $ — $ — $ — Facility construction 27,006 5,446 5,446 5,461 5,446 5,207 — Operating leases 4,554 1,840 1,267 1,240 207 — — Software and telecommunication 961 339 320 302 — — — $ 43,416 $ 11,467 $ 10,875 $ 10,214 $ 5,653 $ 5,207 $ — |
Financial Instruments, Fair V31
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Trading Securities, Derivative Assets, and RSU and PSU Liabilities | The fair value of investments, derivatives, RSU, PSU and DSU liabilities at December 31, 2017 , and December 31, 2016 were as follows: As at December 31, (Thousands of U.S. Dollars) 2017 2016 Investment - current and long-term assets $ 44,202 $ — Foreign currency derivative asset 302 578 $ 44,504 $ 578 Commodity price derivative liability $ 21,151 $ 3,824 RSU, PSU and DSU liability 11,430 3,907 $ 32,581 $ 7,731 |
Schedule of Losses or Gains on Financial Instruments Recognized | The following table presents losses or gains on financial instruments recognized in the accompanying consolidated statements of operations: (Thousands of U.S. Dollars) Year Ended December 31, 2017 2016 2015 Commodity price derivative loss $ 17,327 $ 7,370 $ — Foreign currency derivative (gain) loss (1,287 ) (1,016 ) 692 Investment gain (111 ) — — Trading securities loss — 3,925 1,335 $ 15,929 $ 10,279 $ 2,027 |
Schedule of the Rollforward of Level 3 Financial Assets and Liabilities: | The table below presents a roll-forward of the long-term portion of the investment: Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 Opening balance $ — $ — Acquisition 19,091 — Unrealized gain on valuation 56 — Closing balance $ 19,147 $ — |
Schedule of Outstanding Commodity Price Derivative Positions | At December 31, 2017 , the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Sold Swap ($/bbl, Weighted Average) Purchased Call ($/bbl, Weighted Average) Swaps: January 1, to December 31, 2018 5,000 ICE Brent $ 55.90 n/a Participating Swaps: January 1, to December 31, 2018 5,000 ICE Brent $ 52.50 $ 56.11 |
Schedule of Outstanding Foreign Currency Derivative Positions | At December 31, 2017 , the Company had outstanding foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) Reference Purchased Call Sold Put (COP, Weighted Average) Collars: January 1, 2018 to December 31, 2018 174,000 58,311 COP 3,000 3,107 |
Supplemental Cash Flow Inform32
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's consolidated balance sheet that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (Thousands of U.S. Dollars) As at December 31, 2017 2016 2015 Cash and cash equivalents $ 12,326 $ 25,175 $ 145,342 Restricted cash and cash equivalents - current 11,787 8,322 92 Restricted cash and cash equivalents - long-term (1) 2,565 9,770 3,317 $ 26,678 $ 43,267 $ 148,751 (1) The long-term portion of restricted cash is included in other long-term assets on the Company's balance sheet. |
Schedule of Net Changes in Assets and Liabilities | Net changes in assets and liabilities from operating activities were as follows: Year Ended December 31, 2017 2016 2015 Accounts receivable and other long-term assets $ (2,494 ) $ (29 ) $ 44,365 Derivatives — (3,546 ) — Inventory (78 ) 5,510 (1,571 ) Other prepaids 2,674 (615 ) 152 Accounts payable and accrued and other long-term liabilities 15,617 (9,691 ) (33,743 ) Prepaid tax and taxes receivable and payable (44,936 ) (2,966 ) (48,251 ) Net changes in assets and liabilities from operating activities $ (29,217 ) $ (11,337 ) $ (39,048 ) |
Schedule of Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures: Year Ended December 31, 2017 2016 2015 Cash paid for income taxes $ 54,505 $ 64,067 $ 39,422 Cash paid for interest $ 9,684 $ 5,624 $ — Non-cash investing activities: Net liabilities related to property, plant and equipment, end of year $ 76,352 $ 55,181 $ 33,923 |
Significant Accounting Polici33
Significant Accounting Policies - Allowance for doubtful accounts (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Allowance for doubtful receivables | $ 0 | $ 0 |
Significant Accounting Polici34
Significant Accounting Policies - Equity Method Investment (Details) | 12 Months Ended |
Dec. 31, 2017director | |
Schedule of Equity Method Investments [Line Items] | |
Number of directors eligible to be nominated by the company | 2 |
Sterling | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest divested (as a percent) | 46.00% |
Significant Accounting Polici35
Significant Accounting Policies - Other capital assets (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Annual rate for furniture and fixtures, computer equipment and automobiles | 30.00% |
Significant Accounting Polici36
Significant Accounting Policies - Goodwill (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Goodwill, impairment loss | $ 0 |
Significant Accounting Polici37
Significant Accounting Policies - Convertible Senior Notes (Narrative) (Details) | Dec. 31, 2017 |
Convertible Senior Notes | 5.00% Convertible Senior Notes due 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate | 5.00% |
Significant Accounting Polici38
Significant Accounting Policies - Income Taxes - Intra-Entity Transfers of Assets Other than Inventory (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Prepaid income taxes | $ 54,100 | |||
Current prepaid taxes | $ 0 | 12,271 | ||
Long-term prepaid taxes | 0 | 41,784 | ||
Current income taxes payable | 37,500 | |||
Income Tax Expense (Benefit) | 69,038 | $ (184,669) | $ (100,059) | |
Deferred tax asset | 28,893 | |||
(Deficit) Retained Earnings | ASU 2016-16 | New Accounting Pronouncement, Early Adoption, Effect | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Prepaid income taxes | $ 54,100 | |||
Income Tax Expense (Benefit) | $ 124,500 | |||
Deferred tax asset | $ 178,600 |
Significant Accounting Polici39
Significant Accounting Policies - Restricted Cash (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net decrease in cash, cash equivalents and restricted cash and cash equivalents | $ 16,589 | $ 105,484 | $ 186,971 |
Scenario, Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net decrease in cash, cash equivalents and restricted cash and cash equivalents | $ 120,200 | $ 186,500 |
Segment and Geographic Report40
Segment and Geographic Reporting - Reportable Geographic Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Oil and natural gas sales | $ 421,734 | $ 289,269 | $ 276,011 |
DD&A expenses | 131,335 | 139,535 | 176,386 |
Asset impairment | 1,514 | 616,649 | 323,918 |
General and administrative expenses | 39,014 | 33,218 | 32,353 |
Interest expense | 13,882 | 14,145 | 0 |
Loss on sale | (44,385) | ||
Gain on acquisition | 929 | 0 | |
Loss before income taxes | 37,330 | (650,234) | (368,088) |
Segment capital expenditures | 251,041 | 127,789 | 156,639 |
Colombia | |||
Segment Reporting Information [Line Items] | |||
Asset impairment | 513,700 | 232,400 | |
Operating Segments | Colombia | |||
Segment Reporting Information [Line Items] | |||
Oil and natural gas sales | 413,316 | 280,872 | 269,035 |
DD&A expenses | 126,453 | 132,569 | 167,701 |
Asset impairment | 0 | 514,314 | 235,069 |
General and administrative expenses | 23,500 | 17,187 | 9,805 |
Interest expense | 486 | 0 | |
Loss on sale | 0 | ||
Gain on acquisition | 0 | ||
Loss before income taxes | 111,829 | (505,447) | (238,463) |
Segment capital expenditures | 242,636 | 105,963 | 85,326 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Oil and natural gas sales | 8,418 | 8,397 | 6,976 |
DD&A expenses | 4,882 | 6,966 | 8,685 |
Asset impairment | 1,514 | 102,335 | 88,849 |
General and administrative expenses | 15,514 | 16,031 | 22,548 |
Interest expense | 13,396 | 14,145 | |
Loss on sale | (44,385) | ||
Gain on acquisition | 929 | ||
Loss before income taxes | (74,499) | (144,787) | (129,625) |
Segment capital expenditures | $ 8,405 | $ 21,826 | $ 71,313 |
Segment and Geographic Report41
Segment and Geographic Reporting - Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 1,099,224 | $ 1,066,609 |
Goodwill | 102,581 | 102,581 |
All other assets | 227,814 | 198,706 |
Total Assets (Note 3) | 1,429,619 | 1,367,896 |
Operating Segments | Colombia | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,096,833 | 939,947 |
Goodwill | 102,581 | 102,581 |
All other assets | 176,980 | 177,393 |
Total Assets (Note 3) | 1,376,394 | 1,219,921 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 2,391 | 126,662 |
Goodwill | 0 | 0 |
All other assets | 50,834 | 21,313 |
Total Assets (Note 3) | $ 53,225 | $ 147,975 |
Segment and Geographic Report42
Segment and Geographic Reporting - Schedules of Consolidated Oil and Gas Sales (Details) - Customer Concentration Risk - Sales | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Customer One | |||
Concentration Risk [Line Items] | |||
Sales to each significant customer as % of oil and gas sales | 44.00% | 40.00% | 43.00% |
Customer Two | |||
Concentration Risk [Line Items] | |||
Sales to each significant customer as % of oil and gas sales | 31.00% | 34.00% | 15.00% |
Customer Three | |||
Concentration Risk [Line Items] | |||
Sales to each significant customer as % of oil and gas sales | 17.00% | 13.00% | 13.00% |
Customer Four | |||
Concentration Risk [Line Items] | |||
Sales to each significant customer as % of oil and gas sales | 12.00% |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 45,353 | $ 45,698 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 37,794 | 39,203 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 7,559 | $ 6,495 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,302,145 | $ 3,329,390 |
Accumulated depletion, depreciation and impairment | (2,202,921) | (2,262,781) |
Total Property, Plant and Equipment (Notes 3 and 5) | 1,099,224 | 1,066,609 |
Oil and natural gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,275,744 | 3,299,945 |
Proved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,810,796 | 2,652,171 |
Unproved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 464,948 | 647,774 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 26,401 | $ 29,445 |
Property, Plant and Equipment45
Property, Plant and Equipment - Additional Information (Narrative) (Details) $ in Thousands | Dec. 18, 2017USD ($)shares | Jun. 30, 2017USD ($)subsidiary | Apr. 27, 2017USD ($) | Jan. 25, 2016USD ($) | Dec. 31, 2017USD ($)$ / bblshares | Sep. 30, 2017$ / bbl | Jun. 30, 2017USD ($)$ / bbl | Mar. 31, 2017$ / bbl | Dec. 31, 2016$ / bblshares | Sep. 30, 2016$ / bbl | Jun. 30, 2016$ / bbl | Mar. 31, 2016$ / bbl | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)$ / bbl |
Property, Plant and Equipment [Line Items] | |||||||||||||||
Depletion and depreciation expense | $ 126,800 | $ 130,200 | $ 177,900 | ||||||||||||
Impairment losses | 1,514 | 616,649 | 323,918 | ||||||||||||
Payments to acquire assets | $ 30,410 | ||||||||||||||
Property acquisitions | 34,410 | $ 19,388 | 0 | ||||||||||||
Contingent consideration, liability | $ 4,000 | $ 4,000 | |||||||||||||
Number of shares of common stock owned by the company (in shares) | shares | 385,191,042 | 390,807,194 | 385,191,042 | 390,807,194 | |||||||||||
Loss on sale of business unit | $ 44,385 | ||||||||||||||
Number of indirect subsidiaries involved in disposition of assets | subsidiary | 2 | ||||||||||||||
Proceeds from the sale of oil and gas properties | $ 0 | $ 6,000 | 0 | ||||||||||||
Costs not expected to be subject to depletion (as a percent) | 76.00% | 76.00% | |||||||||||||
Colombia | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Impairment losses | 513,700 | 232,400 | |||||||||||||
Brazil Segment | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Impairment losses | 71,100 | $ 46,900 | |||||||||||||
Impairment of unproved properties | 45,000 | ||||||||||||||
Income Approach Valuation Technique | Assets | Oil and natural gas properties | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Discount rate | 10.00% | ||||||||||||||
Crude Oil and NGL | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Average Brent price per barrel (in dollars per barrel) | $ / bbl | 54.19 | 52.70 | 51.35 | 49.33 | 42.92 | 42.23 | 44.48 | 48.79 | 54.08 | ||||||
Gran Tierra Energy International Peru Holdings B.V. | Sold | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Consideration on sale of business unit | $ 33,500 | ||||||||||||||
Shares acquired in disposal of business unit (in shares) | shares | 187,300,000 | ||||||||||||||
Sale of business unit, working capital adjustment | $ 400 | ||||||||||||||
Percent of share consideration subject to escrow conditions from sale of business unit | 90.00% | ||||||||||||||
Consideration subject to escrow conditions, percent released per period from sale of business unit | 15.00% | ||||||||||||||
Consideration subject to escrow conditions, release duration | 6 months | ||||||||||||||
Consideration subject to escrow conditions, total release duration | 36 months | ||||||||||||||
Loss on sale of business unit | $ 34,100 | ||||||||||||||
Brazil Divestiture | Sold | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Consideration on sale of business unit | $ 35,000 | $ 35,000 | |||||||||||||
Loss on sale of business unit | 10,200 | ||||||||||||||
Selling Subsidiaries | Brazil Divestiture | Sold | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Proceeds from sale of business unit | $ 36,800 | ||||||||||||||
Sterling | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Number of shares of common stock owned by the company (in shares) | shares | 246,200,000 | ||||||||||||||
Ownership interest divested (as a percent) | 46.00% | 46.00% | |||||||||||||
Sterling | Gran Tierra Energy International Peru Holdings B.V. | Sold | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Number of shares called by warrants (in shares) | shares | 58,900,000 | ||||||||||||||
Minimum | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Period until transferred to depletable base | 5 years | ||||||||||||||
Maximum | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Period until transferred to depletable base | 10 years | ||||||||||||||
Block 95 | Peru Segment | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Impairment losses | $ 31,200 | $ 41,900 | |||||||||||||
Block 107 [Member] | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Working interest percent | 20.00% | 20.00% | |||||||||||||
PGC | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Payments to acquire assets | $ 37,727 | ||||||||||||||
Property acquisitions | 19,400 | ||||||||||||||
New working capital | $ 18,339 | ||||||||||||||
Subscription Receipts | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Warrants and rights, purchased | $ 11,000 |
Property, Plant and Equipment46
Property, Plant and Equipment - Schedule of Asset Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Impairment of oil and gas properties | $ 1,514 | $ 615,985 | $ 321,285 |
Impairment of inventory | 0 | 664 | 2,633 |
Asset impairment | $ 1,514 | $ 616,649 | $ 323,918 |
Property, Plant and Equipment47
Property, Plant and Equipment - Schedule of Allocation of Cost of Acquisition (Details) - USD ($) $ in Thousands | Apr. 27, 2017 | Jan. 25, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Cash | $ 30,410 | |||
Oil and gas properties | ||||
Proved | 24,405 | |||
Unproved | 8,649 | |||
Oil and gas properties | 33,054 | $ 27,791 | ||
Inventory | 869 | |||
Asset retirement obligation - long-term | 3,513 | |||
Assets acquired and liabilities assumed | $ 30,410 | $ 37,727 | ||
Cash Acquired from acquisition | $ 200 | |||
Restricted cash acquired from acquisition | 18,600 | |||
PGC | ||||
Business Acquisition [Line Items] | ||||
Cash | 37,727 | |||
Oil and gas properties | ||||
Proved | 12,228 | |||
Unproved | 15,563 | |||
Asset retirement obligation - long-term | 8,403 | |||
Net working capital (including cash acquired of $0.2 million and restricted cash of $18.6 million) | $ 18,339 |
Property, Plant and Equipment48
Property, Plant and Equipment - Disposition of Business Units (Details) - Sold $ in Thousands | Dec. 31, 2016USD ($) |
Gran Tierra Energy International Peru Holdings B.V. | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Current assets | $ 1,051 |
Property, plant and equipment | 68,428 |
Other long-term assets | 9,799 |
Total assets | 79,278 |
Current liabilities | (940) |
Long-term liabilities | (13,370) |
Total liabilities | (14,310) |
Brazil Divestiture | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Current assets | 1,634 |
Property, plant and equipment | 55,376 |
Total assets | 57,010 |
Current liabilities | (11,590) |
Long-term liabilities | (2,297) |
Total liabilities | $ (13,887) |
Property, Plant and Equipment49
Property, Plant and Equipment - Summary of Oil and Natural Gas Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | 139 Months Ended | 175 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Total oil and natural gas properties not subject to depletion | $ 60,845 | $ 329,149 | $ 8,795 | $ 66,159 | $ 464,948 |
Colombia | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Acquisition costs | 8,076 | 319,025 | 0 | 33,080 | 360,181 |
Exploration costs | $ 52,769 | $ 10,124 | $ 8,795 | $ 33,079 | $ 104,767 |
Debt and Debt Issuance Costs -
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (6,458) | $ (7,917) |
Long-term debt | 256,542 | 197,083 |
Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 115,000 | 115,000 |
Revolving Credit Facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 148,000 | $ 90,000 |
Debt and Debt Issuance Costs 51
Debt and Debt Issuance Costs - Convertible Notes (Narrative) (Details) $ / shares in Units, $ in Thousands | Apr. 06, 2016day$ / shares | Apr. 22, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Net proceeds from sale of the Notes | $ 167,043 | $ 256,065 | $ 0 | ||
Convertible senior notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 115,000 | $ 115,000 | |||
5.00% Convertible Senior Notes due 2021 | Convertible senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.00% | ||||
Conversion rate | 0.3114 | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 3.21 | ||||
Percentage of conversion price when Company may redeem for all cash or any portion of the Notes | 150.00% | ||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Redemption price (as a percent) | 100.00% | ||||
Repurchase price (as a percent) | 100.00% | ||||
Net proceeds from sale of the Notes | $ 109,100 |
Debt and Debt Issuance Costs 52
Debt and Debt Issuance Costs - Credit Facility (Narrative) (Details) - Credit Agreement - USD ($) | Nov. 16, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Weighted-average interest rate | 3.64% | ||
Interest rate on undrawn amounts | 0.75% | ||
Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Interest rate on undrawn amounts | 0.54% | ||
Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Interest rate on undrawn amounts | 0.91% | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.15% | 2.00% | |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 3.65% | 3.00% | |
Revolving Credit Facility | Base Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.15% | ||
Revolving Credit Facility | Base Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.65% | ||
Revolving Credit Facility | Readily available | |||
Line of Credit Facility [Line Items] | |||
Readily available | $ 300,000,000 | ||
Letter of credit | |||
Line of Credit Facility [Line Items] | |||
Participation fee (as a percent) | 0.25% |
Debt and Debt Issuance Costs 53
Debt and Debt Issuance Costs - Schedule of Total Interest Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 2,415 | $ 5,691 | $ 0 |
Interest expense | 13,882 | 14,145 | 0 |
Convertible senior notes | |||
Debt Instrument [Line Items] | |||
Contractual interest and other financing expenses | 11,467 | 8,454 | 0 |
Amortization of debt issuance costs | 2,415 | 5,691 | 0 |
Interest expense | $ 13,882 | $ 14,145 | $ 0 |
Share Capital - Additional Info
Share Capital - Additional Information (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2017vote$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized share capital (in shares) | 595,000,002 | |
Common stock, shares authorized | 570,000,000 | |
Common shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Common shares, outstanding (in shares) | 385,191,042 | 390,807,194 |
Number of votes per common stock | vote | 1 | |
Common voting shares per exchangeable share (in shares) | 1 | |
Exchangeable Shares of Gran Tierra Exchangeco Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exchangeable shares outstanding (in shares) | 4,422,776 | |
Exchangeable Shares of Gran Tierra Goldstrike Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exchangeable shares outstanding (in shares) | 1,688,889 | |
Preferred Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred Stock, shares authorized | 25,000,000 | |
Preferred Stock, par value (in dollars per share) | $ / shares | $ 0.001 | |
Special voting stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred Stock, shares authorized | 2 | |
Preferred Stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) | 12 Months Ended |
Dec. 31, 2017shares | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2016 (in shares) | 390,807,194 |
Balance, December 31, 2017 (in shares) | 385,191,042 |
Common Stock | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2016 (in shares) | 390,807,194 |
Exchange of exchangeable shares (in shares) | 2,088,229 |
Shares repurchased and canceled (in shares) | (7,704,381) |
Balance, December 31, 2017 (in shares) | 385,191,042 |
Common Stock | Exchangeable Shares of Gran Tierra Exchangeco Inc. | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2016 (in shares) | 4,812,592 |
Exchange of exchangeable shares (in shares) | (389,816) |
Shares repurchased and canceled (in shares) | 0 |
Balance, December 31, 2017 (in shares) | 4,422,776 |
Common Stock | Exchangeable Shares of Gran Tierra Goldstrike Inc. | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2016 (in shares) | 3,387,302 |
Exchange of exchangeable shares (in shares) | (1,698,413) |
Shares repurchased and canceled (in shares) | 0 |
Balance, December 31, 2017 (in shares) | 1,688,889 |
Share Capital - Share Repurchas
Share Capital - Share Repurchase Program (Details) - 2017 Program - shares | Jan. 27, 2017 | Feb. 06, 2017 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 19,540,359 | |
Percent of stock issued and outstanding stock, authorized for repurchase | 5.00% |
Share Capital - Equity Compensa
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2012 | Jun. 26, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for issuance (in shares) | 39,806,100 | 23,306,100 | |||
Unrecognized compensation cost | $ 13.7 | $ 10 | |||
Weighted average period of recognition | 1 year 7 months 7 days | ||||
Weighted average remaining contractual term | 2 years 10 months 24 days | ||||
G&A expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 9.8 | $ 6.3 | $ 2.7 | ||
Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity awards granted (as a percent) | 80.00% | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity awards granted (as a percent) | 20.00% |
Share Capital - Schedule of Inf
Share Capital - Schedule of Information About PSU, DSU, RSU and Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Outstanding Stock Options | |
Balance, Beginning of period (in shares) | 9,239,478 |
Granted (in shares) | 2,029,035 |
Exercised (in shares) | 0 |
Forfeited (in shares) | (911,154) |
Expired (in shares) | (1,396,667) |
Balance, End of period (in shares) | 8,960,692 |
Exercisable, at end of period (in shares) | 5,044,267 |
Vested, or expected to vest, at end of period through the life of the options (in shares) | 8,792,816 |
Weighted Average Exercise Price /Stock Option ($) | |
Balance, Beginning of period (in dollars per share) | $ / shares | $ 4.16 |
Granted (in dollars per share) | $ / shares | 2.54 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | (4.79) |
Expired (in dollars per share) | $ / shares | (4.65) |
Balance, End of period (in dollars per share) | $ / shares | 3.65 |
Exercisable, at end of period (in dollars per share) | $ / shares | 4.33 |
Vested, or expected to vest, at end of period through the life of the options (in dollars per share) | $ / shares | $ 3.67 |
PSUs | |
Number of Outstanding Share Units | |
Balance, Beginning of period (in shares) | 3,362,717 |
Granted (in shares) | 3,422,170 |
Exercised (in shares) | 0 |
Forfeited (in shares) | (652,936) |
Expired (in shares) | 0 |
Balance, End of period (in shares) | 6,131,951 |
DSUs | |
Number of Outstanding Share Units | |
Balance, Beginning of period (in shares) | 208,698 |
Granted (in shares) | 247,070 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Balance, End of period (in shares) | 455,768 |
RSUs | |
Number of Outstanding Share Units | |
Balance, Beginning of period (in shares) | 359,145 |
Granted (in shares) | 0 |
Exercised (in shares) | (224,548) |
Forfeited (in shares) | (12,507) |
Expired (in shares) | 0 |
Balance, End of period (in shares) | 122,090 |
Share Capital - PSUs (Narrative
Share Capital - PSUs (Narrative) (Details) - PSUs | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Award subject to targets relating to total shareholder return (as a percent) | 50.00% |
Award subject to targets relating to net asset value (as a percent) | 25.00% |
Net present value discount rate | 10.00% |
Award subject to targets relating to execution of corporate strategy (as a percent) | 25.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of PSUs that vest (as a percent) | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of PSUs that vest (as a percent) | 200.00% |
Share Capital - DSUs and RSUs (
Share Capital - DSUs and RSUs (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
DSUs that will vest at such time the grantee ceases to be a member (as a percent) | 100.00% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash used to settle awards | $ 0.6 | $ 1.2 | $ 1.4 |
Share Capital - Stock Options (
Share Capital - Stock Options (Narrative) (Details) - USD ($) | Apr. 30, 2013 | May 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued, exercise of stock options (in shares) | 0 | 2,165,370 | 390,000 | ||
Weighted average remaining contractual term of outstanding stock options | 2 years 10 months 24 days | ||||
Weighted average remaining contractual term of exercisable stock options | 2 years 6 months | ||||
Weighted average grant date fair value for options granted (in dollars per share) | $ 1.11 | $ 1.14 | $ 1.24 | ||
Weighted average grant date fair value for options vested (in dollars per share) | $ 1.31 | $ 1.52 | $ 2.38 | ||
Total fair value of stock options vested | $ 2,500,000 | $ 2,800,000 | $ 6,800,000 | ||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Expected term during grantee's service | 5 years | ||||
Expected term after end of grantee's service | 3 months | ||||
Term for stock options granted prior to May of 2013 | 10 years | ||||
Additional Paid in Capital | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise of stock options | $ 0 | $ 5,347,000 | $ 722,000 |
Share Capital - Schedule of Ass
Share Capital - Schedule of Assumptions Using the Black-Scholes Option Pricing Model (Details) - Stock Options | 1 Months Ended | 12 Months Ended | ||
May 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield (per share) (as a percent) | 0.00% | 0.00% | 0.00% | |
Volatility (minimum) (as a percent) | 51.00% | 50.00% | 46.00% | |
Volatility (maximum) (as a percent) | 53.00% | 54.00% | 50.00% | |
Weighted average volatility (as a percent) | 52.00% | 52.00% | 48.00% | |
Risk-free interest rate (minimum) (as a percent) | 1.75% | 0.94% | 1.20% | |
Risk-free interest rate (maximum) (as a percent) | 2.10% | 1.78% | 1.68% | |
Expected term | 5 years | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 4 years | 4 years | 4 years | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 5 years | 5 years | 5 years |
Share Capital - Weighted Averag
Share Capital - Weighted Average Shares Outstanding (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average options excluded from diluted loss per share calculation (in shares) | 9,681,304 | 10,662,034 | 13,432,287 |
Asset Retirement Obligation - S
Asset Retirement Obligation - Schedule of Changes in Carrying Amount of Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis | ||||
Balance, beginning of year | $ 43,357 | $ 33,224 | ||
Liability incurred | 3,403 | 2,606 | ||
Settlements | (1,507) | (872) | ||
Accretion | 3,825 | 2,789 | ||
Revisions in estimated liability | (4,095) | (6,856) | ||
Liabilities associated with assets sold | (16,932) | (3,257) | ||
Liabilities assumed in acquisitions | 3,513 | 15,723 | ||
Balance, end of year | 31,564 | 43,357 | ||
Asset retirement obligation - current | $ 323 | $ 5,215 | ||
Asset retirement obligation - long-term | 31,241 | 38,142 | ||
Balance, end of year | $ 43,357 | $ 33,224 | $ 31,564 | $ 43,357 |
Asset Retirement Obligation - N
Asset Retirement Obligation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Cash payments included in settlements | $ (1,336) | $ (605) | $ (6,217) |
Fair value of assets legally restricted for purposes of settling asset retirement obligations | $ 12,700 | $ 12,000 |
Taxes - Schedule of Income Tax
Taxes - Schedule of Income Tax Expense Reported (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (Loss) before income taxes | |||
United States | $ (51,215) | $ (23,986) | $ (14,061) |
Foreign | 88,545 | (626,248) | (354,027) |
INCOME (LOSS) BEFORE INCOME TAXES (NOTE 3) | $ 37,330 | $ (650,234) | $ (368,088) |
Statutory rate | 35.00% | 35.00% | 35.00% |
Income tax expense (recovery) expected | $ 13,066 | $ (227,582) | $ (128,831) |
Impact of foreign taxes | 12,310 | (9,799) | (13,087) |
Other local taxes | 1,056 | 1,998 | 2,354 |
Stock-based compensation | 2,001 | 1,955 | 919 |
Increase in valuation allowance | 52,269 | 47,675 | 37,691 |
Sale of Peru and Brazil business units | (12,527) | 0 | 0 |
Non-deductible third party royalty in Colombia | 3,194 | 2,550 | 3,416 |
Other permanent differences | (2,331) | (1,466) | (2,521) |
Current income tax expense | |||
United States | 3,457 | 1,818 | 1,070 |
Foreign | 20,865 | 18,304 | 14,313 |
Current income tax expense | 24,322 | 20,122 | 15,383 |
Deferred income tax expense (recovery) | |||
Foreign | 44,716 | (204,791) | (115,442) |
INCOME TAX EXPENSE (RECOVERY) | 69,038 | (184,669) | (100,059) |
Deferred tax recovery associated with ceiling test impairment loss | 201,300 | ||
National Taxes and Customs Direction (DIAN) | Foreign Tax Authority | |||
Income (Loss) before income taxes | |||
Impact of foreign taxes | $ 8,000 | $ (23,300) | $ (11,800) |
Taxes - Narrative (Details)
Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation Allowance [Line Items] | |||
Tax Cuts and Jobs Act of 2017, provisional income tax expense | $ 59,000,000 | ||
Tax and Jobs Act of 2017, decrease in deferred tax benefit | 1,100,000 | ||
Decrease in valuation allowance | (152,600,000) | ||
Decrease in valuation allowance due to sale of business units | 212,100,000 | ||
Increase in foreign tax credits | 20,900,000 | ||
Foreign Earnings Repatriated | 7,100,000 | ||
Annual amount of equity tax expense | 1,224,000 | $ 3,098,000 | $ 3,769,000 |
LUXEMBOURG | |||
Valuation Allowance [Line Items] | |||
Tax benefit of capital loss carryforwards | 86,700,000 | ||
United States, Colombia, And Canada | |||
Valuation Allowance [Line Items] | |||
Foreign losses incurred and other credits | 10,200,000 | ||
COLOMBIA | |||
Valuation Allowance [Line Items] | |||
Included in accounts payable | $ 0 | $ 0 | |
2015 | COLOMBIA | |||
Valuation Allowance [Line Items] | |||
Equity tax rates | 1.15% | ||
2016 | COLOMBIA | |||
Valuation Allowance [Line Items] | |||
Equity tax rates | 1.00% | ||
2017 | COLOMBIA | |||
Valuation Allowance [Line Items] | |||
Equity tax rates | 0.40% |
Taxes - Schedule of Deferred Ta
Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Tax benefit of operating loss carryforwards | $ 60,460 | $ 74,604 |
Tax basis in excess of book basis | 62,768 | 187,651 |
Foreign tax credits and other accruals | 70,157 | 48,341 |
Tax benefit of capital loss carryforwards | 52,575 | 32,278 |
Deferred tax assets before valuation allowance | 245,960 | 342,874 |
Valuation allowance | (188,650) | (341,263) |
Deferred tax assets, net | 57,310 | 1,611 |
Deferred Tax Liabilities | 28,417 | 107,230 |
Net Deferred Tax Assets (Liabilities)(1) | $ (105,619) | |
Deferred Tax Assets, Net | $ 28,893 |
Taxes - Summary of Operating Lo
Taxes - Summary of Operating Loss and Capital Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | $ 199,138 | $ 257,023 |
Of the operating loss and capital loss carryforwards, losses generated by the foreign subsidiaries of the Company. | 392,053 | 496,118 |
Capital loss carryforwards | ||
Tax Credit Carryforward [Line Items] | ||
Capital loss carryforwards | $ 288,322 | $ 239,095 |
Accounts Payable and Accrued 70
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Trade | $ 99,146 | $ 80,072 |
Royalties | 6,867 | 4,542 |
Employee compensation | 8,767 | 8,152 |
Other | 11,391 | 14,285 |
Total | $ 126,171 | $ 107,051 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Agreements (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $ 43,416 |
2,018 | 11,467 |
2,019 | 10,875 |
2,020 | 10,214 |
2,021 | 5,653 |
2,022 | 5,207 |
Thereafter | 0 |
Oil transportation services | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 10,895 |
2,018 | 3,842 |
2,019 | 3,842 |
2,020 | 3,211 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Facility construction | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 27,006 |
2,018 | 5,446 |
2,019 | 5,446 |
2,020 | 5,461 |
2,021 | 5,446 |
2,022 | 5,207 |
Thereafter | 0 |
Operating leases | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 4,554 |
2,018 | 1,840 |
2,019 | 1,267 |
2,020 | 1,240 |
2,021 | 207 |
2,022 | 0 |
Thereafter | 0 |
Software and telecommunication | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 961 |
2,018 | 339 |
2,019 | 320 |
2,020 | 302 |
2,021 | 0 |
2,022 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies72
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Total rent expense | $ 3,200,000 | $ 3,200,000 | $ 4,000,000 |
Promissory notes as security for letters of credit | 76,000,000 | $ 96,800,000 | |
Pending Litigation Royalty, Transportation and Related Costs | |||
Loss Contingencies [Line Items] | |||
Estimated compensation which would be payable if interpretation is correct | 50,800,000 | ||
Amount accrued for improbable loss | $ 0 |
Financial Instruments, Fair V73
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Schedule of Fair Value of Trading Securities, Derivative Assets, and RSU and PSU Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Investment - current and long-term assets | $ 44,202 | $ 0 |
Foreign currency derivative asset | 302 | 578 |
Fair value of assets | 44,504 | 578 |
Commodity price derivative liability | 21,151 | 3,824 |
RSU, PSU and DSU liability | 11,430 | 3,907 |
Fair value of liabilities | $ 32,581 | $ 7,731 |
Financial Instruments, Fair V74
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Schedule of Losses or Gains on Financial Instruments Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment gain | $ (111) | $ 0 | $ 0 |
Trading securities loss | 0 | 3,925 | 1,335 |
Financial instruments loss | 15,929 | 10,279 | 2,027 |
Commodity price derivative loss | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative loss (gain) | 17,327 | 7,370 | 0 |
Foreign currency derivative (gain) loss | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative loss (gain) | $ (1,287) | $ (1,016) | $ 692 |
Financial Instruments, Fair V75
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Foreign exchange losses for each one peso decrease in exchange rate of Colombian peso to one U.S. dollar | $ 10 | ||
Colombia | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revenues received in U.S. dollars (as a percent) | 100.00% | ||
Colombia | Geographic Concentration Risk | Oil and natural gas sales | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Sales to each significant customer as % of oil and gas sales | 98.00% | 97.00% | 97.00% |
Reported Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Value of the Notes | $ 111,000 | ||
Estimate of Fair Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Value of the Notes | $ 129,100 |
Financial Instruments, Fair V76
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Rollforward of Level 3 Financial Asset (Details) - Equity Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | $ 0 | $ 0 |
Acquisition | 19,091 | 0 |
Unrealized gain on valuation | 56 | 0 |
Closing balance | $ 19,147 | $ 0 |
Financial Instruments, Fair V77
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Schedule of Outstanding Commodity Price Derivative Positions (Details) - Commodity Hedge bbl in Thousands | 12 Months Ended |
Dec. 31, 2017$ / bblbbl | |
Swap: January 1, to December 31, 2018 | |
Derivative [Line Items] | |
Volume (in barrels) | bbl | 5 |
Participating Swap: January 1, to December 31, 2018 | |
Derivative [Line Items] | |
Volume (in barrels) | bbl | 5 |
Purchased Put ($/bbl) | Sold Call ($/bbl) | Participating Swap: January 1, to December 31, 2018 | |
Derivative [Line Items] | |
Put price (in dollars per barrel) | 56.11 |
Swap | Purchased Put ($/bbl) | Swap: January 1, to December 31, 2018 | |
Derivative [Line Items] | |
Put price (in dollars per barrel) | 55.9 |
Swap | Purchased Put ($/bbl) | Participating Swap: January 1, to December 31, 2018 | |
Derivative [Line Items] | |
Put price (in dollars per barrel) | 52.5 |
Financial Instruments, Fair V78
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Schedule of Outstanding Foreign Currency Derivative Positions (Details) - Collar: January 1, 2018 to December 31, 2018 $ in Thousands, COP in Millions | Dec. 31, 2017USD ($)COP / collar | Dec. 31, 2017COPCOP / collar |
Derivative [Line Items] | ||
Amount Hedged (Millions COP) | $ 58,311 | COP 174,000 |
Purchased Call | ||
Derivative [Line Items] | ||
Call price (in COP per collar) | 3,000,000 | 3,000,000 |
Bank 1 | Put Option | Sold | ||
Derivative [Line Items] | ||
Put price (in COP per collar) | 3,107,000 | 3,107,000 |
Supplemental Cash Flow Inform79
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 12,326 | $ 25,175 | $ 145,342 | |
Restricted cash and cash equivalents - current | 11,787 | 8,322 | 92 | |
Restricted cash and cash equivalents - long-term | 2,565 | 9,770 | 3,317 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents | $ 26,678 | $ 43,267 | $ 148,751 | $ 335,722 |
Supplemental Cash Flow Inform80
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable and other long-term assets | $ (2,494) | $ (29) | $ 44,365 |
Derivatives | 0 | (3,546) | 0 |
Inventory | (78) | 5,510 | (1,571) |
Other prepaids | 2,674 | (615) | 152 |
Accounts payable and accrued and other long-term liabilities | 15,617 | (9,691) | (33,743) |
Prepaid tax and taxes receivable and payable | (44,936) | (2,966) | (48,251) |
Net changes in assets and liabilities from operating activities | $ (29,217) | $ (11,337) | $ (39,048) |
Supplemental Cash Flow Inform81
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash paid for income taxes | $ 54,505 | $ 64,067 | $ 39,422 | |
Cash paid for interest | 9,684 | 5,624 | $ 0 | |
Non-cash investing activities: | ||||
Net liabilities related to property, plant and equipment, end of year | $ 76,352 | $ 55,181 | $ 33,923 |
Supplemental Cash Flow Inform82
Supplemental Cash Flow Information - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Supplemental Cash Flow Elements [Abstract] | |
Business combination, equity interests transferred | $ 25.8 |
Subsequent Event (Details)
Subsequent Event (Details) - 2025 Notes - Senior Notes - Gran Tierra Energy International Holdings Ltd. - Subsequent Event | Feb. 15, 2018USD ($) |
Subsequent Event [Line Items] | |
Aggregate principal amount of debt issued | $ 300,000,000 |
Stated interest rate | 6.25% |