Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 385,258,378 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
OIL AND NATURAL GAS SALES (NOTES 3 and 7) | $ 138,228 | $ 94,659 |
EXPENSES | ||
Operating | 26,265 | 23,937 |
Transportation | 6,997 | 6,942 |
Depletion, depreciation and accretion (Note 3) | 39,461 | 26,593 |
Asset impairment | 0 | 283 |
General and administrative (Note 3) | 11,160 | 8,712 |
Equity tax | 0 | 1,224 |
Foreign exchange gain | (942) | (1,847) |
Financial instruments loss (gain) (Note 10) | 6,946 | (5,439) |
Interest expense (Note 5) | 5,495 | 3,095 |
EXPENSES | 95,382 | 63,500 |
INTEREST INCOME | 786 | 408 |
INCOME BEFORE INCOME TAXES (NOTE 3) | 43,632 | 31,567 |
INCOME TAX EXPENSE | ||
Current (Note 8) | 12,289 | 7,417 |
Deferred (Note 8) | 13,482 | 11,379 |
INCOME TAX EXPENSE | 25,771 | 18,796 |
NET INCOME AND COMPREHENSIVE INCOME | $ 17,861 | $ 12,771 |
NET INCOME PER SHARE - BASIC AND DILUTED (in dollars per share) | $ 0.05 | $ 0.03 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares) | 391,294,042 | 399,007,086 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares) | 391,379,013 | 399,046,114 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents (Note 11) | $ 160,474 | $ 12,326 |
Restricted cash and cash equivalents (Note 11) | 3,294 | 11,787 |
Accounts receivable | 49,239 | 45,353 |
Investment (Note 10) | 21,265 | 25,055 |
Derivatives (Note 10) | 3,769 | 302 |
Taxes receivable | 55,024 | 40,831 |
Other current assets | 10,952 | 9,591 |
Total Current Assets | 304,017 | 145,245 |
Oil and Gas Properties (using the full cost method of accounting) | ||
Proved | 676,520 | 629,081 |
Unproved | 452,865 | 464,948 |
Total Oil and Gas Properties | 1,129,385 | 1,094,029 |
Other capital assets | 4,802 | 5,195 |
Total Property, Plant and Equipment (Notes 3 and 4) | 1,134,187 | 1,099,224 |
Other Long-Term Assets | ||
Deferred tax assets | 43,547 | 57,310 |
Investment (Note 10) | 15,964 | 19,147 |
Other long-term assets (Note 11) | 6,492 | 6,112 |
Goodwill (Note 3) | 102,581 | 102,581 |
Total Other Long-Term Assets | 168,584 | 185,150 |
Total Assets | 1,606,788 | 1,429,619 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 126,756 | 125,876 |
Derivatives (Note 10) | 21,672 | 21,151 |
Taxes payable | 23,203 | 9,324 |
Asset retirement obligation | 111 | 323 |
Equity compensation award liability (Note 10) | 8,633 | 295 |
Total Current Liabilities | 180,375 | 156,969 |
Long-Term Liabilities | ||
Long-term debt (Notes 5 and 10) | 397,568 | 256,542 |
Deferred tax liabilities | 26,467 | 28,417 |
Asset retirement obligation | 33,405 | 31,241 |
Share-based Compensation Arrangement, Recorded Liability, Fair Value Disclosure, Noncurrent | 5,724 | 11,135 |
Other long-term liabilities | 9,610 | 8,980 |
Total Long-Term Liabilities | 472,774 | 336,315 |
Contingencies (Note 9) | ||
Shareholders’ Equity | ||
Common Stock (Note 6) (384,959,730 and 385,191,042 shares of Common Stock and 5,908,065 and 6,111,665 exchangeable shares, par value $0.001 per share, issued and outstanding as at March 31, 2018, and December 31, 2017, respectively) | 10,295 | 10,295 |
Additional paid in capital | 1,326,687 | 1,327,244 |
Deficit | (383,343) | (401,204) |
Total Shareholders’ Equity | 953,639 | 936,335 |
Total Liabilities and Shareholders’ Equity | $ 1,606,788 | $ 1,429,619 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, shares issued (in shares) | 384,959,730 | 385,191,042 |
Common Stock, shares outstanding (in shares) | 384,959,730 | 385,191,042 |
Exchangeable shares, shares issued (in shares) | 5,908,065 | 6,111,665 |
Exchangeable shares, shares outstanding (in shares) | 5,908,065 | 6,111,665 |
Common Stock and exchangeable shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | ||
Net income | $ 17,861 | $ 12,771 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion, depreciation and accretion (Note 3) | 39,461 | 26,593 |
Asset impairment | 0 | 283 |
Deferred tax expense | 13,482 | 11,379 |
Stock-based compensation (Note 6) | 3,309 | 1,203 |
Amortization of debt issuance costs (Note 5) | 670 | 605 |
Cash settlement of restricted share units | (120) | (318) |
Unrealized foreign exchange gain | (1,044) | (2,819) |
Financial instruments loss (gain) (Note 10) | 6,946 | (5,439) |
Cash settlement of financial instruments (Note 10) | (5,817) | 768 |
Cash settlement of asset retirement obligation | (192) | (13) |
Net change in assets and liabilities from operating activities (Note 11) | (3,464) | 4,930 |
Net cash provided by operating activities | 71,092 | 49,943 |
Investing Activities | ||
Additions to property, plant and equipment (Note 3) | (72,694) | (46,160) |
Deposit received for sale of Brazil business unit | 0 | 3,500 |
Changes in non-cash investing working capital | 1,957 | (1,797) |
Net cash used in investing activities | (70,737) | (44,457) |
Financing Activities | ||
Proceeds from bank debt, net of issuance costs (Note 5) | 4,988 | 18,471 |
Repayment of bank debt (Note 5) | (153,000) | (23,000) |
Proceeds exercise of stock options (Note 6) | 74 | 0 |
Repurchase of shares of Common Stock (Note 6) | (1,194) | 0 |
Proceeds from issuance of Senior Notes, net of issuance costs (Note 5) | 288,368 | 0 |
Net cash provided by (used in) financing activities | 139,236 | (4,529) |
Foreign exchange gain on cash, cash equivalents and restricted cash and cash equivalents | 663 | 474 |
Net increase in cash, cash equivalents and restricted cash and cash equivalents | 140,254 | 1,431 |
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period (Note 11) | 26,678 | 43,267 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period (Note 11) | $ 166,932 | $ 44,698 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Share Capital | Additional Paid in Capital | Deficit |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to tax reorganizations | $ 124,476 | |||
Balance, beginning of period at Dec. 31, 2016 | $ 10,303 | $ 1,342,656 | (493,972) | |
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (Note 6) | 0 | |||
Stock-based compensation (Note 6) | 709 | |||
Repurchase of Common Stock (Note 6) | 0 | |||
Net income (loss) | $ 12,771 | 12,771 | ||
Balance, end of period at Mar. 31, 2017 | 996,943 | 10,303 | 1,343,365 | (356,725) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to tax reorganizations | 0 | |||
Balance, beginning of period at Dec. 31, 2017 | 10,295 | 1,327,244 | (401,204) | |
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (Note 6) | 74 | |||
Stock-based compensation (Note 6) | 563 | |||
Repurchase of Common Stock (Note 6) | (1,194) | |||
Net income (loss) | 17,861 | 17,861 | ||
Balance, end of period at Mar. 31, 2018 | $ 953,639 | $ 10,295 | $ 1,326,687 | $ (383,343) |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Gran Tierra Energy Inc., a Delaware corporation (the “Company” or “Gran Tierra”), is a publicly traded company focused on oil and natural gas exploration and production in Colombia. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies These interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The information furnished herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of results for the interim periods. The note disclosure requirements of annual consolidated financial statements provide additional disclosures to that required for interim unaudited condensed consolidated financial statements. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended December 31, 2017 , included in the Company’s 2017 Annual Report on Form 10-K, filed with the SEC on February 27, 2018 . The Company’s significant accounting policies are described in Note 2 of the consolidated financial statements which are included in the Company’s 2017 Annual Report on Form 10-K and are the same policies followed in these interim unaudited condensed consolidated financial statements, except as noted below. The Company has evaluated all subsequent events through to the date these interim unaudited condensed consolidated financial statements were issued. Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers The Company adopted Accounting Standard Codification ("ASC") 606 Revenue from Contracts with Customers with a date of initial application of January 1, 2018 in accordance with the modified retrospective approach without using the practical expedients. Except for providing enhanced disclosures about the Company's revenue transactions, the application of ASC 606 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. a) Significant Accounting Policy The Company's revenue relates to oil and natural gas sales in Colombia. The Company recognizes revenue when it transfers control of the product to a customer. This generally occurs at the time the customer obtains legal title to the product and when it is physically transferred to the delivery point agreed with the customer. Payment terms are generally within three business days following delivery of an invoice to the customer. Revenue is recognized based on the consideration specified in contracts with customers. Revenue represents the Company's share and is recorded net of royalty payments to governments and other mineral interest owners. The Company evaluates its arrangement with third parties and partners to determine if the Company acts as a principal or an agent. In making this evaluation, management considers if the Company obtains control of the product delivered, which is indicated by the Company having the primary responsibility for the delivery of the product, having ability to establish prices or having inventory risk. If the Company acts in the capacity of an agent rather than as a principal in transaction, then the revenue is recognized on a net-basis, only reflecting the fee realized by the Company from the transaction. Tariffs, tolls and fees charged to other entities for use of pipelines owned by the Company are evaluated by management to determine if these originate from contracts with customers or from incidental arrangements. In the comparative period, revenue from the production of oil and natural gas was recognized when the customer took title and assumed the risks and rewards of ownership, prices were fixed or determinable, the sale was evidenced by a contract and collection of the revenue was reasonably assured. b) Significant Judgments When determining if the Company acted as a principal or as an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considered detailed criteria for revenue recognition set out in ASC 606. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2016-01 addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 was effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. The implementation of this update did not impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. In February 2018, the FASB issued ASU 2018-03, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2018-03 clarifies certain aspects of the guidance in ASU 2016-01. ASU 2018-03 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those annual reporting periods beginning after June 15, 2018. Early adoption is permitted upon adoption of ASU 2016-01.The amendments should be applied retrospectively with a cumulative-effect adjustment to the effective date of ASU 2016-01. The Company early adopted this update on January 1, 2018. The implementation of this update did not impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. |
Segment and Geographic Reportin
Segment and Geographic Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | Segment and Geographic Reporting The Company is primarily engaged in the exploration and production of oil and natural gas. Commencing in 2018, the Company has one reportable segment based on geographic organization, Colombia. Prior to the sale of the Company's Brazil business unit effective June 30, 2017 and 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 following tables present information on the Company’s reportable segments and other activities: Three Months Ended March 31, 2018 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 138,228 $ — $ 138,228 Depletion, depreciation and accretion 38,499 962 39,461 General and administrative expenses 6,809 4,351 11,160 Income (loss) before income taxes 61,151 (17,519 ) 43,632 Segment capital expenditures 72,561 133 72,694 Three Months Ended March 31, 2017 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 90,464 $ 4,195 $ 94,659 Depletion, depreciation and accretion 24,935 1,658 26,593 General and administrative expenses 4,832 3,880 8,712 Income (loss) before income taxes 37,144 (5,577 ) 31,567 Segment capital expenditures 42,840 3,320 46,160 As at March 31, 2018 (Thousands of U.S. Dollars) Colombia All Other Total Property, plant and equipment $ 1,132,626 $ 1,561 $ 1,134,187 Goodwill 102,581 — 102,581 All other assets 182,440 187,580 370,020 Total Assets $ 1,417,647 $ 189,141 $ 1,606,788 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 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (Thousands of U.S. Dollars) As at March 31, 2018 As at December 31, 2017 Oil and natural gas properties Proved $ 2,896,700 $ 2,810,796 Unproved 452,865 464,948 3,349,565 3,275,744 Other 23,633 26,401 3,373,198 3,302,145 Accumulated depletion, depreciation and impairment (2,239,011 ) (2,202,921 ) $ 1,134,187 $ 1,099,224 The Company used an average Brent price of $56.92 per bbl for the purposes of the March 31, 2018 ceiling test calculations ( December 31, 2017 - $54.19 ). |
Debt and Debt Issuance Costs
Debt and Debt Issuance Costs | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company's debt at March 31, 2018 and December 31, 2017 was as follows: (Thousands of U.S. Dollars) As at March 31, 2018 As at December 31, 2017 Senior notes $ 300,000 $ — Convertible notes 115,000 115,000 Revolving credit facility — 148,000 Unamortized debt issuance costs (17,432 ) (6,458 ) Long-term debt $ 397,568 $ 256,542 Senior Notes On February 15, 2018 , Gran Tierra Energy International Holdings Ltd. ("GTEIH"), an indirect, wholly owned subsidiary of the Company, issued $300 million of 6.25% Senior Notes due 2025 (the "Senior Notes"). The Senior Notes are fully and unconditionally guaranteed by the Company and certain subsidiaries of the Company that guarantee its revolving credit facility. Net proceeds from the sale of the Senior Notes were $288.4 million , after deducting the initial purchasers' discounts and commission and the offering expenses payable by the Company. The Senior Notes bear interest at a rate of 6.25% per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2018 . The Senior Notes will mature on February 15, 2025 , unless earlier redeemed or repurchased. Before February 15, 2022 , GTEIH may, at its option, redeem all or a portion of the Senior Notes at 100% of the principal amount plus accrued and unpaid interest and a make-whole premium. Thereafter, the Company may redeem all or a portion of the Senior Notes plus accrued and unpaid interest applicable to the date of the redemption at the following redemption prices: 2022 - 103.125% ; 2023 - 101.563% ; 2024 and thereafter - 100% . Interest Expense The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Contractual interest and other financing expenses $ 4,825 $ 2,490 Amortization of debt issuance costs 670 605 $ 5,495 $ 3,095 |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Capital | Share Capital The Company’s authorized share capital consists of 595,000,002 shares of capital stock, of which 570 million are designated as Common Stock, par value $0.001 per share, 25 million are designated as Preferred Stock, par value $0.001 per share, one share is designated as Special A Voting Stock, par value $0.001 per share, and one share is designated as Special B Voting Stock, par value $0.001 per share. Shares of Common Stock Exchangeable Shares of Gran Tierra Exchangeco Inc. Exchangeable Shares of Gran Tierra Goldstrike Inc. Balance, December 31, 2017 385,191,042 4,422,776 1,688,889 Options exercised 30,000 — — Shares repurchased and canceled (464,912 ) — — Exchange of exchangeable shares 203,600 (203,600 ) — Balance, March 31, 2018 384,959,730 4,219,176 1,688,889 On March 7, 2018 , the Company announced that it intended to implement a share repurchase program (the “2018 Program”) through the facilities of the Toronto Stock Exchange ("TSX") and eligible alternative trading platforms in Canada. Under the 2018 Program, the Company is able to purchase at prevailing market prices up to 19,269,732 shares of Common Stock, representing approximately 5.00% of the issued and outstanding shares of Common Stock as of March 8, 2018 . Shares purchased pursuant to 2018 Program will be canceled. The 2018 Program will expire on March 11, 2019 , or earlier if the 5.00% share maximum is reached. Equity Compensation Awards The following table provides information about p erformance stock units (“PSUs”), deferred share units (“DSUs”), restricted stock units (“RSUs”) and stock option activity for the three months ended March 31, 2018 : PSUs DSUs RSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2017 6,131,951 455,768 122,090 8,960,692 3.65 Granted 3,305,486 67,926 — 1,890,413 2.47 Exercised — — (48,600 ) (30,000 ) (2.46 ) Forfeited (108,195 ) — (1,822 ) (349,878 ) (5.17 ) Expired — — — (8,334 ) (3.50 ) Balance, March 31, 2018 9,329,242 523,694 71,668 10,462,893 3.39 Stock-based compensation expense for the three months ended March 31, 2018 , was $3.3 million and was primarily recorded in general and administrative ("G&A") expenses ( three months ended March 31, 2017 - $1.2 million ). At March 31, 2018 , there was $22.0 million ( December 31, 2017 - $13.7 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 2.0 years. Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of Common Stock and exchangeable shares issued and outstanding during each period. Diluted net income per share is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock awards were vested at the end of the applicable period plus potentially issuable shares on conversion of the convertible notes. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. Weighted Average Shares Outstanding Three Months Ended March 31, 2018 2017 Weighted average number of common and exchangeable shares outstanding 391,294,042 399,007,086 Shares issuable pursuant to stock options 867,427 635,484 Shares assumed to be purchased from proceeds of stock options (782,456 ) (596,456 ) Weighted average number of diluted common and exchangeable shares outstanding 391,379,013 399,046,114 For the three months ended March 31, 2018 , 8,599,422 options, on a weighted average basis, ( three months ended March 31, 2017 - 9,210,869 options) were excluded from the diluted income per share calculation as the options were anti-dilutive. Shares issuable upon conversion of the 5.00% Convertible Notes due 2021 ("Convertible Notes") were anti-dilutive and excluded from the diluted income per share calculation. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Most of the Company's revenues are from oil sales at prices which reflect the blended prices received upon shipment by the purchaser at defined sales points or are defined by contract relative to ICE Brent and adjusted for quality each month. For the three months ended March 31, 2018 , 100% (three months ended March 31, 2017 - 100% ) of the Company's revenue resulted from oil sales. In the three months ended March 31, 2018 , quality and transportation discounts were 16% of the ICE Brent price (three months ended March 31, 2017 - 22% ). During the three months ended March 31, 2018 , the Company's production was sold primarily to four major customers in Colombia (three months ended March 31, 2017 - three ). As at March 31, 2018 , accounts receivable included $7.1 million of accrued sales revenue which related to March 2018 production ( December 31, 2017 - $11.1 million which related to December 31, 2017 production). December 31, 2017 accrued sales revenue was collected during the three months ended March 31, 2018 without significant adjustment to revenue for that period. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The Company's effective tax rate was 59% in the three months ended March 31, 2018 , compared with 60% in the comparable period in 2017 . Current income tax expense was higher in the three months ended March 31, 2018 , compared with the corresponding period in 2017 , primarily as a result of higher taxable income in Colombia. The deferred income tax expense of $13.5 million for the three months ended March 31, 2018 , was primarily due to excess tax depreciation compared with accounting depreciation in Colombia. For the three months ended March 31, 2018 , the difference between the effective tax rate of 59% and the 21% U.S. statutory rate was primarily due to an increase to the impact of foreign taxes, valuation allowance, other permanent differences, non-deductible third party royalty in Colombia, stock based compensation, other local taxes and foreign currency translation. For the comparable period in 2017 , the effective rate differed from the U.S. statutory rate of 35% primarily due to an increase to the valuation allowance, which was largely attributable to losses incurred in the United States, Brazil and Colombia, as well as the impact of a non-deductible third-party royalty in Colombia, foreign taxes, local taxes, and stock-based compensation. These items were partially offset by foreign currency translation adjustments and other permanent differences. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) (“ANH") and Gran Tierra are engaged in ongoing discussions regarding the interpretation of whether certain transportation and related costs are eligible to be deducted in the calculation of an additional royalty (the "HPR royalty"). Based on the Company's understanding of the ANH's position, the estimated compensation which would be payable if the ANH’s interpretation is correct could be up to $51.8 million as at March 31, 2018 . At this time no amount has been accrued in the interim unaudited condensed consolidated financial statements as Gran Tierra does not consider it probable that a loss will be incurred. In addition to the above, the Company has a number of other lawsuits and claims pending. Although the outcome of these other lawsuits and disputes cannot be predicted with certainty, the Company believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs associated with these lawsuits and claims as they are incurred or become probable and determinable. Letters of credit and other credit support At March 31, 2018 , the Company had provided letters of credit and other credit support totaling $76.5 million ( December 31, 2017 - $76.0 million ) as security relating to work commitment guarantees contained in exploration contracts and other capital or operating requirements. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Financial Instruments At March 31, 2018 , the Company’s financial instruments recognized in the balance sheet consisted of: cash and cash equivalents; restricted cash and cash equivalents; accounts receivable; investments; derivatives, accounts payable and accrued liabilities, long-term debt and equity compensation award liability. Fair Value Measurement The fair value of certain investments, derivatives and equity compensation award (PSU, DSU and RSU) liabilities are remeasured at the estimated fair value at the end of each reporting period. The fair value of the short-term portion of the Company's investment in Sterling Resources Ltd. ("Sterling") was estimated using quoted prices at March 31, 2018 and the foreign exchange rate at that time. The fair value of the long-term portion of the investment restricted by escrow conditions was estimated using observable and unobservable inputs; factors that were evaluated included quoted market prices, precedent comparable transactions, risk-free rate, measures of market risk volatility, estimates of the Company's and Sterling's costs of capital and quotes from third parties. The fair value of commodity price and foreign currency derivatives is estimated based on various factors, including quoted market prices in active markets and quotes from third parties. The Company also performs an internal valuation to ensure the reasonableness of third party quotes. In consideration of counterparty credit risk, the Company assessed the possibility of whether the counterparty to the derivative would default by failing to make any contractually required payments. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. The fair value of the PSU liability was estimated based on option pricing model using inputs such as quoted market prices in an active market, and PSU performance factors. The fair value of the DSU and RSU liabilities were estimated based on quoted market prices in an active market. The fair value of derivatives and RSU, PSU and DSU liabilities at March 31, 2018 , and December 31, 2017 , were as follows: (Thousands of U.S. Dollars) As at March 31, 2018 As at December 31, 2017 Investment - current and long-term assets $ 37,229 $ 44,202 Foreign currency derivative asset 3,769 302 $ 40,998 $ 44,504 Commodity price derivative liability $ 21,672 $ 21,151 Equity compensation award liability - current and long-term 14,357 11,430 $ 36,029 $ 32,581 The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Commodity price derivative loss (gain) $ 4,995 $ (4,703 ) Foreign currency derivatives gain (3,970 ) (736 ) Investment loss 5,921 — Financial instruments loss (gain) $ 6,946 $ (5,439 ) These gains and losses are presented as financial instrument gains and losses in the interim unaudited condensed consolidated statements of operations and cash flows. Investment loss for the three months ended March 31, 2018 related to the fair value loss on the Sterling shares Gran Tierra received or subscribed for in connection with the sale of its Peru business unit in December 2017. For the three months ended March 31, 2018 , this investment loss was unrealized. Financial instruments not recorded at fair value include the Senior Notes and the Convertible Notes. At March 31, 2018 , the carrying amounts of the Senior Notes and the Convertible Notes were $288.5 million and $111.2 million , respectively, which represented the aggregate principal amount less unamortized debt issuance costs, and the fair values were $292.5 million and $130.0 million , respectively. The fair value of long-term restricted cash and cash equivalents and the revolving credit facility approximated their carrying value because interest rates are variable and reflective of market rates. The fair values of other financial instruments approximate their carrying amounts due to the short-term maturity of these instruments. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets and liabilities and have the highest priority. Level 2 and 3 inputs are based on significant other observable inputs and significant unobservable inputs, respectively, and have lower priorities. The Company uses appropriate valuation techniques based on the available inputs to measure the fair values of assets and liabilities. At March 31, 2018 , the fair value of the current portion of the investment, DSU and RSU liability was determined using Level 1 inputs, the fair value of derivatives and PSUs was determined using Level 2 inputs and the fair value of the long-term portion of the investment restricted by escrow conditions was determined using Level 3 inputs. The table below presents the fair value of the long-term portion of the investment: Three Months Ended Year Ended March 31, 2018 December 31, 2017 (Thousands of U.S. Dollars) Opening balance $ 19,147 $ — Acquisition — 19,091 Unrealized valuation (loss) gain (2,703 ) 56 Unrealized foreign exchange loss (480 ) — Closing balance $ 15,964 $ 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 Senior Notes, Convertible Notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The disclosure above regarding the fair value of the Convertible Notes was determined using Level 2 inputs based on the indicative pricing published by certain third-party services or trading levels of the Convertible Notes, which are not listed on any securities exchange or quoted on an inter-dealer automated quotation system. The disclosure in the paragraph above regarding the fair value of cash and restricted cash and cash equivalents, revolving credit facility and Senior Notes was based on Level 1 inputs. The Company’s non-recurring fair value measurements include asset retirement obligations. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. The significant level 3 inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit-adjusted risk-free interest rate, inflation rates and estimated dates of abandonment. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. Commodity Price Derivatives The Company utilizes commodity price derivatives to manage the variability in cash flows associated with the forecasted sale of its oil production, reduce commodity price risk and provide a base level of cash flow in order to assure it can execute at least a portion of its capital spending. At March 31, 2018 , 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: April 1, to December 31, 2018 5,000 ICE Brent $ 55.90 n/a Participating Swaps: April 1, to December 31, 2018 5,000 ICE Brent $ 52.50 $ 56.11 Foreign Currency Derivatives The Company utilizes foreign currency derivatives to manage the variability in cash flows associated with the Company's forecasted Colombian peso ("COP") denominated expenses. At March 31, 2018 , 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) (1) Reference Purchased Call Sold Put (COP, Weighted Average) Collars: April 1, 2018 to December 31, 2018 130,500 46,935 COP 3,000 3,107 (1) At March 31, 2018 foreign exchange rate. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at March 31, As at December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 160,474 $ 26,716 $ 12,326 $ 25,175 Restricted cash and cash equivalents - current 3,294 7,663 11,787 8,322 Restricted cash and cash equivalents - long-term (included in other long-term assets) 3,164 10,319 2,565 9,770 $ 166,932 $ 44,698 $ 26,678 $ 43,267 Net changes in assets and liabilities from operating activities were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Accounts receivable and other long-term assets $ (1,982 ) $ (2,428 ) Derivatives 1,847 — Inventory (1,785 ) 207 Prepaids 1,498 1,078 Accounts payable and accrued and other long-term liabilities (2,495 ) 4,310 Taxes receivable and payable (547 ) 1,763 Net changes in assets and liabilities from operating activities $ (3,464 ) $ 4,930 The following table provides additional supplemental cash flow disclosures: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 70,108 $ 54,875 |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers The Company adopted Accounting Standard Codification ("ASC") 606 Revenue from Contracts with Customers with a date of initial application of January 1, 2018 in accordance with the modified retrospective approach without using the practical expedients. Except for providing enhanced disclosures about the Company's revenue transactions, the application of ASC 606 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. a) Significant Accounting Policy The Company's revenue relates to oil and natural gas sales in Colombia. The Company recognizes revenue when it transfers control of the product to a customer. This generally occurs at the time the customer obtains legal title to the product and when it is physically transferred to the delivery point agreed with the customer. Payment terms are generally within three business days following delivery of an invoice to the customer. Revenue is recognized based on the consideration specified in contracts with customers. Revenue represents the Company's share and is recorded net of royalty payments to governments and other mineral interest owners. The Company evaluates its arrangement with third parties and partners to determine if the Company acts as a principal or an agent. In making this evaluation, management considers if the Company obtains control of the product delivered, which is indicated by the Company having the primary responsibility for the delivery of the product, having ability to establish prices or having inventory risk. If the Company acts in the capacity of an agent rather than as a principal in transaction, then the revenue is recognized on a net-basis, only reflecting the fee realized by the Company from the transaction. Tariffs, tolls and fees charged to other entities for use of pipelines owned by the Company are evaluated by management to determine if these originate from contracts with customers or from incidental arrangements. In the comparative period, revenue from the production of oil and natural gas was recognized when the customer took title and assumed the risks and rewards of ownership, prices were fixed or determinable, the sale was evidenced by a contract and collection of the revenue was reasonably assured. b) Significant Judgments When determining if the Company acted as a principal or as an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considered detailed criteria for revenue recognition set out in ASC 606. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2016-01 addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 was effective for annual reporting periods and interim reporting periods within those annual reporting periods, beginning after December 15, 2017. The implementation of this update did not impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. In February 2018, the FASB issued ASU 2018-03, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2018-03 clarifies certain aspects of the guidance in ASU 2016-01. ASU 2018-03 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those annual reporting periods beginning after June 15, 2018. Early adoption is permitted upon adoption of ASU 2016-01.The amendments should be applied retrospectively with a cumulative-effect adjustment to the effective date of ASU 2016-01. The Company early adopted this update on January 1, 2018. The implementation of this update did not impact on the Company’s consolidated financial position, results of operations or cash flows or disclosure. |
Segment and Geographic Report19
Segment and Geographic Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Information on Reportable Segments and Other Activities | The following tables present information on the Company’s reportable segments and other activities: Three Months Ended March 31, 2018 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 138,228 $ — $ 138,228 Depletion, depreciation and accretion 38,499 962 39,461 General and administrative expenses 6,809 4,351 11,160 Income (loss) before income taxes 61,151 (17,519 ) 43,632 Segment capital expenditures 72,561 133 72,694 Three Months Ended March 31, 2017 (Thousands of U.S. Dollars) Colombia All Other Total Oil and natural gas sales $ 90,464 $ 4,195 $ 94,659 Depletion, depreciation and accretion 24,935 1,658 26,593 General and administrative expenses 4,832 3,880 8,712 Income (loss) before income taxes 37,144 (5,577 ) 31,567 Segment capital expenditures 42,840 3,320 46,160 |
Schedule of Long-lived Assets by Geographical Area | As at March 31, 2018 (Thousands of U.S. Dollars) Colombia All Other Total Property, plant and equipment $ 1,132,626 $ 1,561 $ 1,134,187 Goodwill 102,581 — 102,581 All other assets 182,440 187,580 370,020 Total Assets $ 1,417,647 $ 189,141 $ 1,606,788 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 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (Thousands of U.S. Dollars) As at March 31, 2018 As at December 31, 2017 Oil and natural gas properties Proved $ 2,896,700 $ 2,810,796 Unproved 452,865 464,948 3,349,565 3,275,744 Other 23,633 26,401 3,373,198 3,302,145 Accumulated depletion, depreciation and impairment (2,239,011 ) (2,202,921 ) $ 1,134,187 $ 1,099,224 |
Debt and Debt Issuance Costs (T
Debt and Debt Issuance Costs (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt at March 31, 2018 and December 31, 2017 was as follows: (Thousands of U.S. Dollars) As at March 31, 2018 As at December 31, 2017 Senior notes $ 300,000 $ — Convertible notes 115,000 115,000 Revolving credit facility — 148,000 Unamortized debt issuance costs (17,432 ) (6,458 ) Long-term debt $ 397,568 $ 256,542 |
Schedule of Interest Expense Recognized | The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Contractual interest and other financing expenses $ 4,825 $ 2,490 Amortization of debt issuance costs 670 605 $ 5,495 $ 3,095 |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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, 2017 385,191,042 4,422,776 1,688,889 Options exercised 30,000 — — Shares repurchased and canceled (464,912 ) — — Exchange of exchangeable shares 203,600 (203,600 ) — Balance, March 31, 2018 384,959,730 4,219,176 1,688,889 |
Schedule of PSU, DSU, RSU and Stock Option Activity | The following table provides information about p erformance stock units (“PSUs”), deferred share units (“DSUs”), restricted stock units (“RSUs”) and stock option activity for the three months ended March 31, 2018 : PSUs DSUs RSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2017 6,131,951 455,768 122,090 8,960,692 3.65 Granted 3,305,486 67,926 — 1,890,413 2.47 Exercised — — (48,600 ) (30,000 ) (2.46 ) Forfeited (108,195 ) — (1,822 ) (349,878 ) (5.17 ) Expired — — — (8,334 ) (3.50 ) Balance, March 31, 2018 9,329,242 523,694 71,668 10,462,893 3.39 |
Schedule of Weighted Average Shares Outstanding | Weighted Average Shares Outstanding Three Months Ended March 31, 2018 2017 Weighted average number of common and exchangeable shares outstanding 391,294,042 399,007,086 Shares issuable pursuant to stock options 867,427 635,484 Shares assumed to be purchased from proceeds of stock options (782,456 ) (596,456 ) Weighted average number of diluted common and exchangeable shares outstanding 391,379,013 399,046,114 |
Financial Instruments and Fai23
Financial Instruments and Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities | The fair value of derivatives and RSU, PSU and DSU liabilities at March 31, 2018 , and December 31, 2017 , were as follows: (Thousands of U.S. Dollars) As at March 31, 2018 As at December 31, 2017 Investment - current and long-term assets $ 37,229 $ 44,202 Foreign currency derivative asset 3,769 302 $ 40,998 $ 44,504 Commodity price derivative liability $ 21,672 $ 21,151 Equity compensation award liability - current and long-term 14,357 11,430 $ 36,029 $ 32,581 |
Schedule of Gains or Losses on Financial Instruments Recognized | The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Commodity price derivative loss (gain) $ 4,995 $ (4,703 ) Foreign currency derivatives gain (3,970 ) (736 ) Investment loss 5,921 — Financial instruments loss (gain) $ 6,946 $ (5,439 ) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below presents the fair value of the long-term portion of the investment: Three Months Ended Year Ended March 31, 2018 December 31, 2017 (Thousands of U.S. Dollars) Opening balance $ 19,147 $ — Acquisition — 19,091 Unrealized valuation (loss) gain (2,703 ) 56 Unrealized foreign exchange loss (480 ) — Closing balance $ 15,964 $ 19,147 |
Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts | At March 31, 2018 , 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: April 1, to December 31, 2018 5,000 ICE Brent $ 55.90 n/a Participating Swaps: April 1, to December 31, 2018 5,000 ICE Brent $ 52.50 $ 56.11 |
Schedule of Outstanding Foreign Currency Derivative Positions | At March 31, 2018 , 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) (1) Reference Purchased Call Sold Put (COP, Weighted Average) Collars: April 1, 2018 to December 31, 2018 130,500 46,935 COP 3,000 3,107 (1) At March 31, 2018 foreign exchange rate. |
Supplemental Cash Flow Inform24
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at March 31, As at December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 160,474 $ 26,716 $ 12,326 $ 25,175 Restricted cash and cash equivalents - current 3,294 7,663 11,787 8,322 Restricted cash and cash equivalents - long-term (included in other long-term assets) 3,164 10,319 2,565 9,770 $ 166,932 $ 44,698 $ 26,678 $ 43,267 |
Schedule of Net Changes in Assets and Liabilities | Net changes in assets and liabilities from operating activities were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Accounts receivable and other long-term assets $ (1,982 ) $ (2,428 ) Derivatives 1,847 — Inventory (1,785 ) 207 Prepaids 1,498 1,078 Accounts payable and accrued and other long-term liabilities (2,495 ) 4,310 Taxes receivable and payable (547 ) 1,763 Net changes in assets and liabilities from operating activities $ (3,464 ) $ 4,930 |
Schedule of Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures: Three Months Ended March 31, (Thousands of U.S. Dollars) 2018 2017 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 70,108 $ 54,875 |
Significant Accounting Polici25
Significant Accounting Policies Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2018day | |
Accounting Policies [Abstract] | |
Payment terms, number of days | 3 |
Segment and Geographic Report26
Segment and Geographic Reporting - Schedule of Information on Reportable Segments and Other Activities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 1 | |
Oil and natural gas sales | $ 138,228 | $ 94,659 |
Depletion, depreciation and accretion | 39,461 | 26,593 |
General and administrative expenses | 11,160 | 8,712 |
Income (loss) before income taxes | 43,632 | 31,567 |
Segment capital expenditures | 72,694 | 46,160 |
Reportable Segments | Colombia | ||
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | 138,228 | 90,464 |
Depletion, depreciation and accretion | 38,499 | 24,935 |
General and administrative expenses | 6,809 | 4,832 |
Income (loss) before income taxes | 61,151 | 37,144 |
Segment capital expenditures | 72,561 | 42,840 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | 0 | 4,195 |
Depletion, depreciation and accretion | 962 | 1,658 |
General and administrative expenses | 4,351 | 3,880 |
Income (loss) before income taxes | (17,519) | (5,577) |
Segment capital expenditures | $ 133 | $ 3,320 |
Segment and Geographic Report27
Segment and Geographic Reporting - Schedule of Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 1,134,187 | $ 1,099,224 |
Goodwill | 102,581 | 102,581 |
All other assets | 370,020 | 227,814 |
Total Assets | 1,606,788 | 1,429,619 |
Reportable Segments | Colombia | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,132,626 | 1,096,833 |
Goodwill | 102,581 | 102,581 |
All other assets | 182,440 | 176,980 |
Total Assets | 1,417,647 | 1,376,394 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,561 | 2,391 |
Goodwill | 0 | 0 |
All other assets | 187,580 | 50,834 |
Total Assets | $ 189,141 | $ 53,225 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | $ 3,373,198 | $ 3,302,145 |
Accumulated depletion, depreciation and impairment | (2,239,011) | (2,202,921) |
Total Property, Plant and Equipment (Notes 3 and 4) | 1,134,187 | 1,099,224 |
Oil and natural gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 3,349,565 | 3,275,744 |
Proved | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 2,896,700 | 2,810,796 |
Unproved | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 452,865 | 464,948 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | $ 23,633 | $ 26,401 |
Property, Plant and Equipment29
Property, Plant and Equipment - Property, Plant and Equipment (Narrative) (Details) - $ / bbl | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Crude Oil and NGL | ||
Property, Plant and Equipment [Line Items] | ||
Average Brent price per bbl (in dollars per barrel) | 56.92 | 54.19 |
Debt and Debt Issuance Costs -
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (17,432) | $ (6,458) |
Long-term debt | 397,568 | 256,542 |
Convertible notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes and revolving credit facility | 115,000 | 115,000 |
Revolving credit facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Convertible senior notes and revolving credit facility | 0 | 148,000 |
Senior Notes Unsecured 6.25% | Senior notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes and revolving credit facility | $ 300,000 | $ 0 |
Debt and Debt Issuance Costs 31
Debt and Debt Issuance Costs - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |||
Proceeds from issuance of Senior Notes, net of issuance costs (Note 5) | $ 288,368 | $ 0 | |
Senior Notes Unsecured 6.25% | Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 300,000 | $ 0 | |
Debt instrument, interest rate, stated percentage | 6.25% | ||
Proceeds from issuance of Senior Notes, net of issuance costs (Note 5) | $ 288,400 | ||
Prior to February 15th, 2022 | Senior Notes Unsecured 6.25% | Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, redemption price, percentage | 100.00% | ||
2022 | Senior Notes Unsecured 6.25% | Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, redemption price, percentage | 103.125% | ||
2023 | Senior Notes Unsecured 6.25% | Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, redemption price, percentage | 101.563% | ||
2024 and thereafter | Senior Notes Unsecured 6.25% | Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, redemption price, percentage | 100.00% |
Debt and Debt Issuance Costs 32
Debt and Debt Issuance Costs - Schedule of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Contractual interest and other financing expenses | $ 4,825 | $ 2,490 |
Amortization of debt issuance costs | 670 | 605 |
Total interest expense recognized | $ 5,495 | $ 3,095 |
Share Capital - Additional Info
Share Capital - Additional Information (Details) - $ / shares | Mar. 08, 2018 | Mar. 31, 2018 | Mar. 07, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized share capital (in shares) | 595,000,002 | |||
Authorized share capital, Common Stock (in shares) | 570,000,000 | |||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Preferred Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized share capital, Preferred Stock (in shares) | 25,000,000 | |||
Preferred Stock, par value (in dollars per share) | $ 0.001 | |||
Special A Voting Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized share capital, Preferred Stock (in shares) | 1 | |||
Preferred Stock, par value (in dollars per share) | $ 0.001 | |||
Special B Voting Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized share capital, Preferred Stock (in shares) | 1 | |||
Preferred Stock, par value (in dollars per share) | $ 0.001 | |||
The 2018 Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized under the 2018 Program (up to) (in shares) | 19,269,732 | |||
Shares authorized representing issued and outstanding shares of Common Stock (as a percent) | 5.00% |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Increase (Decrease) in Common Stock | |
Beginning balance (in shares) | 385,191,042 |
Exercised (in shares) | 30,000 |
Ending balance (in shares) | 384,959,730 |
Shares of Common Stock | |
Increase (Decrease) in Common Stock | |
Beginning balance (in shares) | 385,191,042 |
Exercised (in shares) | 30,000 |
Shares repurchased and canceled (in shares) | (464,912) |
Exchange of exchangeable shares (in shares) | 203,600 |
Ending balance (in shares) | 384,959,730 |
Shares of Common Stock | Exchangeable Shares of Gran Tierra Exchangeco Inc. | |
Increase (Decrease) in Common Stock | |
Beginning balance (in shares) | 4,422,776 |
Exercised (in shares) | 0 |
Shares repurchased and canceled (in shares) | 0 |
Exchange of exchangeable shares (in shares) | (203,600) |
Ending balance (in shares) | 4,219,176 |
Shares of Common Stock | Exchangeable Shares of Gran Tierra Goldstrike Inc. | |
Increase (Decrease) in Common Stock | |
Beginning balance (in shares) | 1,688,889 |
Exercised (in shares) | 0 |
Shares repurchased and canceled (in shares) | 0 |
Exchange of exchangeable shares (in shares) | 0 |
Ending balance (in shares) | 1,688,889 |
Share Capital - Schedule of PSU
Share Capital - Schedule of PSU, DSU, RSU and Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Outstanding Stock Options | |
Beginning Balance (in shares) | 8,960,692 |
Granted (in shares) | 1,890,413 |
Exercised (in shares) | (30,000) |
Forfeited (in shares) | (349,878) |
Expired (in shares) | (8,334) |
Ending Balance (in shares) | 10,462,893 |
Weighted Average Exercise Price/Stock Option ($) | |
Beginning balance (in dollars per share) | $ / shares | $ 3.65 |
Granted (in dollars per share) | $ / shares | 2.47 |
Exercised (in dollars per share) | $ / shares | (2.46) |
Forfeited (in dollars per share) | $ / shares | (5.17) |
Expired (in dollars per share) | $ / shares | (3.50) |
Ending balance (in dollars per share) | $ / shares | $ 3.39 |
PSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 6,131,951 |
Granted (in shares) | 3,305,486 |
Exercised (in shares) | 0 |
Forfeited (in shares) | (108,195) |
Expired (in shares) | 0 |
Ending Balance (in shares) | 9,329,242 |
DSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 455,768 |
Granted (in shares) | 67,926 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Ending Balance (in shares) | 523,694 |
RSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 122,090 |
Granted (in shares) | 0 |
Exercised (in shares) | (48,600) |
Forfeited (in shares) | (1,822) |
Expired (in shares) | 0 |
Ending Balance (in shares) | 71,668 |
Share Capital - Equity Compensa
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 22 | $ 13.7 | |
Weighted average period for recognition | 2 years | ||
General and administrative (G&A) expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3.3 | $ 1.2 |
Share Capital - Schedule of Wei
Share Capital - Schedule of Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted average number of common and exchangeable shares outstanding (in shares) | 391,294,042 | 399,007,086 |
Shares issuable pursuant to stock options (in shares) | 867,427 | 635,484 |
Shares assumed to be purchased from proceeds of stock options (in shares) | (782,456) | (596,456) |
Weighted average number of diluted common and exchangeable shares outstanding (in shares) | 391,379,013 | 399,046,114 |
Share Capital - Weighted Averag
Share Capital - Weighted Average Shares Outstanding (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Convertible notes | Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stated interest rate | 5.00% | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options excluded from diluted income (loss) per share calculation (in shares) | 8,599,422 | 9,210,869 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Variable adjustment for transportation, location, quality, and other elements, percentage | (15.95713%) | (22.42956%) | |
Accrued sales revenue | $ 7.1 | $ 11.1 | |
Product Concentration Risk | Revenue from Contract with Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 99.86399% | 99.63765% |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 59.00% | 60.00% |
Deferred (Note 8) | $ 13,482 | $ 11,379 |
Contingencies (Details)
Contingencies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Letters of credit and other credit support provided | $ 76,500,000 | $ 76,000,000 |
Pending Litigation Royalty, Transportation and Related Costs | ||
Loss Contingencies [Line Items] | ||
Estimated compensation which would be payable if the ANH's interpretation is correct | 51,800,000 | |
Amount accrued | $ 0 |
Financial Instruments and Fai42
Financial Instruments and Fair Value Measurement - Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Investment - current and long-term assets | $ 37,229 | $ 44,202 |
Foreign currency derivative asset | 3,769 | 302 |
Assets, fair value disclosure | 40,998 | 44,504 |
PSU, DSU and RSU liability - current and long-term | 14,357 | 11,430 |
Liabilities, fair value disclosure | 36,029 | 32,581 |
Foreign currency derivative asset | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency derivative asset | 3,769 | 302 |
Commodity Hedge | ||
Derivatives, Fair Value [Line Items] | ||
Commodity price derivative liability | $ 21,672 | $ 21,151 |
Financial Instruments and Fai43
Financial Instruments and Fair Value Measurement - Schedule of Gains or Losses on Financial Instruments Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Investment loss | $ (5,921) | $ 0 |
Financial instruments loss (gain) | 6,946 | (5,439) |
Commodity price derivative loss (gain) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative (loss) gain | 4,995 | (4,703) |
Foreign currency derivatives gain | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative (loss) gain | $ (3,970) | $ (736) |
Financial Instruments and Fai44
Financial Instruments and Fair Value Measurement - Narrative (Details) $ in Millions | Mar. 31, 2018USD ($) |
Carrying amount | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | $ 288.5 |
Value of the notes | 111.2 |
Fair value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value disclosure | 292.5 |
Value of the notes | $ 130 |
Financial Instruments and Fai45
Financial Instruments and Fair Value Measurement - Rollforward of Level 3 Financial Asset (Details) - Equity Securities - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Opening balance | $ 15,964 | $ 19,147 | $ 0 |
Acquisition | 0 | 19,091 | |
Unrealized valuation (loss) gain | (2,703) | 56 | |
Unrealized foreign exchange loss | (480) | 0 | |
Closing balance | $ 15,964 | $ 19,147 |
Financial Instruments and Fai46
Financial Instruments and Fair Value Measurement - Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts (Details) - Commodity Hedge bbl in Thousands | 3 Months Ended |
Mar. 31, 2018$ / bblbbl | |
Commodity Foreign Currency Contract, Swap April 1 To December 31, 2018 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Volume (in barrels of oil per day) | bbl | 5 |
Commodity Foreign Currency Contract, Swap April 1 To December 31, 2018 [Member] | Purchased | Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Floor price (in dollars per barrel) | 55.9 |
Participating Swaps: April 1, to December 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Volume (in barrels of oil per day) | bbl | 5 |
Participating Swaps: April 1, to December 31, 2018 | Purchased | Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Floor price (in dollars per barrel) | 52.5 |
Participating Swaps: April 1, to December 31, 2018 | Purchased | Call | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Floor price (in dollars per barrel) | 56.11 |
Financial Instruments and Fai47
Financial Instruments and Fair Value Measurement - Schedule of Outstanding Foreign Currency Derivative Positions (Details) - Collars: April 1, 2018 to December 31, 2018 $ in Thousands, $ in Millions | Mar. 31, 2018COP ($)$ / collar | Mar. 31, 2018USD ($)$ / collar |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount Hedged | $ 130,500 | $ 46,935 |
Purchased | Call | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Purchased Call (in COP per collar) | 3,000 | 3,000 |
Sold | Put | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Sold Put (in COP per collar) | 3,107 | 3,107 |
Supplemental Cash Flow Inform48
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 160,474 | $ 12,326 | $ 26,716 | $ 25,175 |
Restricted cash and cash equivalents - current | 3,294 | 11,787 | 7,663 | 8,322 |
Restricted cash and cash equivalents - long-term (included in other long-term assets) | 3,164 | 2,565 | 10,319 | 9,770 |
Cash, cash equivalents and restricted cash and cash equivalents | $ 166,932 | $ 26,678 | $ 44,698 | $ 43,267 |
Supplemental Cash Flow Inform49
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable and other long-term assets | $ (1,982) | $ (2,428) |
Derivatives | 1,847 | 0 |
Inventory | (1,785) | 207 |
Prepaids | 1,498 | 1,078 |
Accounts payable and accrued and other long-term liabilities | (2,495) | 4,310 |
Taxes receivable and payable | (547) | 1,763 |
Net changes in assets and liabilities from operating activities | $ (3,464) | $ 4,930 |
Supplemental Cash Flow Inform50
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||
Net liabilities related to property, plant and equipment, end of period | $ 70,108 | $ 54,875 |