Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 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 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 | 387,079,027 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Entity Shell Company | false | ||
Entity Emerging Growth | false | ||
Entity Small Business | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
EXPENSES | |||
Operating | $ 111,272 | $ 87,855 | $ 64,173 |
Workover | 34,437 | 22,014 | 22,752 |
Transportation | 28,993 | 25,107 | 31,776 |
Depletion, depreciation and accretion (Note 5) | 197,867 | 131,335 | 139,535 |
Asset impairment (Notes 5) | 0 | 1,514 | 616,649 |
General and administrative | 39,483 | 39,014 | 33,218 |
Severance | 2,361 | 1,287 | 1,319 |
Transaction | 0 | 0 | 7,325 |
Equity tax | 0 | 1,224 | 3,098 |
Foreign exchange loss (gain) | 9,957 | 2,067 | (1,469) |
Financial instruments loss (Note 13) | 12,296 | 15,929 | 10,279 |
Interest expense (Note 6) | 27,364 | 13,882 | 14,145 |
Total expenses | 464,030 | 341,228 | 942,800 |
(LOSS) ON SALE AND GAIN ON ACQUISITION (NOTE 5) | 0 | (44,385) | 929 |
INTEREST INCOME | 2,086 | 1,209 | 2,368 |
INCOME (LOSS) BEFORE INCOME TAXES | 151,487 | 37,330 | (650,234) |
INCOME TAX EXPENSE (RECOVERY) | |||
Current (Note 10) | 43,903 | 24,322 | 20,122 |
Deferred tax expense (recovery) (Note 10) | 4,968 | 44,716 | (204,791) |
INCOME TAX EXPENSE (RECOVERY) | 48,871 | 69,038 | (184,669) |
NET AND COMPREHENSIVE INCOME (LOSS) | $ 102,616 | $ (31,708) | $ (465,565) |
NET INCOME (LOSS) PER SHARE - BASIC (in USD per share) | $ 0.26 | $ (0.08) | $ (1.45) |
NET INCOME (LOSS) PER SHARE - DILUTED (in USD per share) | $ 0.26 | $ (0.08) | $ (1.45) |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares) | 390,930,453 | 396,683,593 | 320,851,538 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares) | 427,119,872 | 396,683,593 | 320,851,538 |
Oil and Gas Service | |||
OIL AND NATURAL GAS SALES (NOTE 9) | $ 613,431 | $ 421,734 | $ 289,269 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents (Note 14) | $ 51,040 | $ 12,326 |
Restricted cash and cash equivalents (Notes 8 and 14) | 1,269 | 11,787 |
Accounts receivable (Note 4) | 26,177 | 45,353 |
Investment (Note 13) | 32,724 | 25,055 |
Taxes receivable | 78,259 | 40,831 |
Other current assets | 13,056 | 9,893 |
Total Current Assets | 202,525 | 145,245 |
Oil and Gas Properties (using the full cost method of accounting) | ||
Proved | 853,428 | 629,081 |
Unproved | 456,598 | 464,948 |
Total Oil and Gas Properties | 1,310,026 | 1,094,029 |
Other capital assets | 2,751 | 5,195 |
Total Property, Plant and Equipment (Notes 5) | 1,312,777 | 1,099,224 |
Other Long-Term Assets | ||
Deferred tax assets (Note 10) | 45,437 | 57,310 |
Investment (Note 13) | 8,711 | 19,147 |
Other long-term assets (Note 14) | 4,553 | 6,112 |
Goodwill | 102,581 | 102,581 |
Total Other Long-Term Assets | 161,282 | 185,150 |
Total Assets | 1,676,584 | 1,429,619 |
Current Liabilities | ||
Accounts payable and accrued liabilities (Note 11) | 154,670 | 126,199 |
Derivatives (Note 13) | 1,017 | 21,151 |
Taxes payable (Note 10) | 4,149 | 9,324 |
Equity compensation award liability (Note 7) | 9,544 | 295 |
Total Current Liabilities | 169,380 | 156,969 |
Long-Term Liabilities | ||
Long-term debt (Notes 6 and 13) | 399,415 | 256,542 |
Deferred tax liabilities (Note 10) | 23,419 | 28,417 |
Asset retirement obligation (Note 8) | 43,676 | 31,241 |
Equity compensation award liability (Note 7) | 8,139 | 11,135 |
Other long-term liabilities | 2,805 | 8,980 |
Total Long-Term Liabilities | 477,454 | 336,315 |
Commitments and Contingencies (Note 12) | ||
Shareholders’ Equity | ||
Common Stock (Note 7) (387,079,027 and 385,191,042 shares of Common Stock and nil and 6,111,665 exchangeable shares, par value $0.001 per share, issued and outstanding as at December 31, 2018 and December 31, 2017, respectively) | 10,290 | 10,295 |
Additional paid in capital | 1,318,048 | 1,327,244 |
Deficit | (298,588) | (401,204) |
Total Shareholders’ Equity | 1,029,750 | 936,335 |
Total Liabilities and Shareholders’ Equity | $ 1,676,584 | $ 1,429,619 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common shares, issued (in shares) | 387,079,027 | 385,191,042 |
Common shares, outstanding (in shares) | 387,079,027 | 385,191,042 |
Exchangeable shares, issued (in shares) | 0 | 6,111,665 |
Exchangeable shares, outstanding (in shares) | 0 | 6,111,665 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net income (loss) | $ 102,616 | $ (31,708) | $ (465,565) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depletion, depreciation and accretion (Note 5) | 197,867 | 131,335 | 139,535 |
Asset impairment (Notes 5) | 0 | 1,514 | 616,649 |
Deferred tax expense (recovery) (Note 10) | 4,968 | 44,716 | (204,791) |
Stock-based compensation (Note 7) | 8,299 | 9,775 | 6,339 |
Amortization of debt issuance costs (Note 6) | 3,183 | 2,415 | 5,691 |
Cash settlement of restricted share units | (360) | (564) | (1,234) |
Unrealized foreign exchange loss (gain) | 11,511 | 837 | (1,428) |
Financial instruments loss (Note 13) | 12,296 | 15,929 | 10,279 |
Cash settlement of financial instruments | (33,931) | 1,563 | 438 |
Cash settlement of asset retirement obligation (Note 8) | (519) | (1,336) | (605) |
Loss on sale and (gain) on acquisition (Note 5) | 0 | 44,385 | (929) |
Net change in assets and liabilities from operating activities (Note 14) | (21,421) | (29,217) | (11,337) |
Net cash provided by operating activities | 284,509 | 189,644 | 93,042 |
Investing Activities | |||
Additions to property, plant and equipment (Note 5) | (347,093) | (251,041) | (127,789) |
Property acquisitions (Note 5) | (53,200) | (34,410) | (19,388) |
Net proceeds from sale of business units (Note 5) | 0 | 32,968 | 0 |
Cash paid for investments (Note 5) | 0 | (11,000) | 0 |
Cash paid for business combinations, net of cash acquired | 0 | 0 | (488,196) |
Proceeds from the sale of oil and gas properties | 0 | 0 | 6,000 |
Proceeds from sale of marketable securities (Note 13) | 0 | 0 | 2,325 |
Changes in non-cash investing working capital | 17,704 | 19,680 | 21,116 |
Net cash used in investing activities | (382,589) | (243,803) | (605,932) |
Financing Activities | |||
Proceeds from issuance of Senior Notes, net of issuance costs (Note 6) | 288,131 | 0 | 0 |
Proceeds from bank debt, net of issuance costs | 4,560 | 167,043 | 256,065 |
Repayment of bank debt | (153,000) | (110,000) | (252,181) |
Proceeds from exercise of stock options | 1,429 | 0 | 0 |
Repurchase of shares of Common Stock (Note 7) | (12,742) | (17,916) | 0 |
Proceeds from issuance of shares of Common Stock, net of issuance costs | 0 | 0 | 128,273 |
Proceeds from issuance of subscription receipts, net of issuance costs | 0 | 0 | 165,805 |
Proceeds from issuance of Convertible Notes, net of issuance costs | 0 | 0 | 109,090 |
Net cash provided by financing activities | 128,378 | 39,127 | 407,052 |
Foreign exchange (loss) gain on cash, cash equivalents and restricted cash and cash equivalents | (2,668) | (1,557) | 354 |
Net decrease in cash, cash equivalents and restricted cash and cash equivalents | 27,630 | (16,589) | (105,484) |
Cash and cash equivalents and restricted cash and cash equivalents, beginning of year (Note 14) | 26,678 | 43,267 | 148,751 |
Cash and cash equivalents and restricted cash and cash equivalents, end of year (Note 14) | $ 54,308 | $ 26,678 | $ 43,267 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Share Capital | Additional Paid in Capital | Deficit |
Balance, beginning of year at Dec. 31, 2015 | $ 10,186 | $ 1,019,863 | $ (28,407) | |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of Common Stock, net of share issuance costs (Note 7) | 117 | 314,425 | ||
Exercise of stock options (Note 7) | 5,347 | |||
Stock-based compensation (Note 7) | 3,021 | |||
Net income (loss) | $ (465,565) | (465,565) | ||
Balance, end of year at Dec. 31, 2016 | 858,987 | 10,303 | 1,342,656 | (493,972) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting changes related to tax reorganizations | 124,476 | |||
Repurchase of Common Stock (Note 7) | (8) | (17,908) | ||
Stock-based compensation (Note 7) | 2,496 | |||
Net income (loss) | (31,708) | (31,708) | ||
Balance, end of year at Dec. 31, 2017 | 936,335 | 10,295 | 1,327,244 | (401,204) |
Increase (Decrease) in Stockholders' Equity | ||||
Repurchase of Common Stock (Note 7) | (5) | (12,737) | ||
Exercise of stock options (Note 7) | 1,429 | |||
Stock-based compensation (Note 7) | 2,112 | |||
Net income (loss) | 102,616 | 102,616 | ||
Balance, end of year at Dec. 31, 2018 | $ 1,029,750 | $ 10,290 | $ 1,318,048 | $ (298,588) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 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 | 12 Months Ended |
Dec. 31, 2018 | |
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. Investment in PetroTal Corp. During December 2017, the Company acquired an investment in common shares of PetroTal Corp. ("PetroTal" formerly Sterling Resources Ltd.) in connection with the sale of its Peru business unit. At December 31, 2018 , this investment represented approximately 46% of PetroTal's issued and outstanding common shares. The Company determined that it did not have a controlling financial interest in PetroTal, but could exert significant influence over PetroTal's operating and financial policies as a result of its ownership interest in PetroTal and the right to nominate two directors to PetroTal's board of directors. Accordingly, Gran Tierra accounted for its investment in the common shares of PetroTal 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 PetroTal's common shares is recorded in 'Investments' in the consolidated balance sheet, and the change in fair value is recorded in the consolidated statements 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 statements 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. 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. 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 for furniture and fixtures, computer equipment and automobiles is provided using the straight-line method over the useful life of the asset. 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 Colombia. The Company performed a qualitative assessment of goodwill at December 31, 2018 , 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 from Contracts with Customers 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. When determining if the Company acted as a principal or as an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considers detailed criteria for revenue recognition set out in ASC 606. 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. 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. Earnings (loss) per share Basic earnings (loss) per share is calculated by dividing net income or 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 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. Recognition and Measurement of Financial Assets and Financial Liabilities In February 2018, the FASB issued ASU 2018-03, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2018-03 clarified certain aspects of the guidance in ASU 2016-01. ASU 2018-03 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those annual reporting periods beginning after June 15, 2018. Early adoption is permitted upon adoption of ASU 2016-01.The amendments should be applied retrospectively with a cumulative-effect adjustment to the effective date of ASU 2016-01. The Company early adopted this update on January 1, 2018. The implementation of this update did not impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. 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. 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, 2018 , the Company performed a qualitative assessment of goodwill and, based on this assessment, no impairment of goodwill was identified. Recently Issued Accounting Pronouncements 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. In January 2018, the FASB issued ASU 2018-01, "Land Easement Practical Expedient for Transition to Topic 842". ASU 2018-01 provides an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing or expired land easements that were not previously accounted for as leases under Topic 840. The effective date and transition requirements for the amendment are the same as the effective date and transition requirements in ASU 2016-02. The Company is planning to adopt ASU 2018-01 upon transition to ASU 2016-02 "Leases". The Company has completed an assessment of its contract inventory, identified contracts which meet the definition of a lease and is currently finalizing the value of right-of-use lease assets and lease liabilities and transition adjustments. The Company expects to use practical expedients available for land easements and short-term leases and will apply the guidance of ASU 2016-02 using a modified retrospective transition approach. The Company's preliminarily estimates of a right of use asset is between $5 to $10 million with the main assets being attributed to office space leases. Actual amounts recorded will depend on the Company's final conclusions with respect to the appropriate discount rates and lease terms to be applied on the date of transition. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, "Changes to the Disclosure Requirements for Fair Value Measurement". ASU 2018-13 will modify certain fair value measurements disclosure requirements. ASU 2018-13 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The disclosure amendments on changes in unrealized gains and losses, and disclosure requirements for significant unobservable inputs used to develop Level 3 fair value measurements, should be applied prospectively. All other amendments in ASU 2018-13 should be applied retrospectively. Early adoption is permitted. The Company is currently assessing this impact of this update on its consolidated financial position, results of operations or cash flows. 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 this impact of this update on it’s consolidated financial position, results of operations or cash flows. |
Segment and Geographic Reportin
Segment and Geographic Reporting | 12 Months Ended |
Dec. 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. 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 comparative information on the Company’s reportable segment and other activities for the years ended December 31, 2017 and 2016 : 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, 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 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable As at December 31, (Thousands of U.S. Dollars) 2018 2017 Trade $ 16,332 $ 37,794 Other 9,845 7,559 $ 26,177 $ 45,353 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As at December 31, (Thousands of U.S. Dollars) 2018 2017 Oil and natural gas properties Proved $ 3,226,811 $ 2,810,796 Unproved 456,598 464,948 3,683,409 3,275,744 Other 19,549 26,401 3,702,958 3,302,145 Accumulated depletion and depreciation (2,390,181 ) (2,202,921 ) $ 1,312,777 $ 1,099,224 Depletion and depreciation expense on property, plant and equipment for the year ended December 31, 2018 , was $197.0 million ( year ended December 31, 2017 - $126.8 million ; year ended December 31, 2016 - $130.2 million ). A portion of depletion and depreciation expense was recorded as inventory in each year. Asset impairment for the three years ended December 31, 2018 , was as follows: (Thousands of U.S. Dollars) Year Ended December 31, 2018 2017 2016 Impairment of oil and gas properties $ — $ 1,514 $ 615,985 Impairment of inventory — — 664 $ — $ 1,514 $ 616,649 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 $72.08 per bbl for the purposes of the December 31, 2018 ceiling test calculations ( December 31, 2017 - $54.19 ; December 31, 2016 - $42.92 ). In the year ended December 31, 2016 , the Company recorded ceiling test impairment losses of $513.65 million in its Colombia cost center, $71.14 million in its Brazil cost center and $31.2 million in its Peru 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 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. 2018 Acquisitions On October 1, 2018, the Company acquired the remaining 45% working interest ("WI") in the PUT-1 Block in the Putumayo Basin for cash consideration of $28.1 million , of which $15.2 million was allocated to proved properties. On August 6, 2018, the Company acquired a WI in the VMM-2 Block in the Middle Magdalena Valley Basin for cash consideration of $17.0 million , of which $ 6.2 million was allocated to proved properties. On December 1, 2018, the Company acquired a further WI in the VMM-2 Block for cash consideration of $5.0 million , of which $1.6 million was allocated to proved properties. In total, the Company has acquired an 80% WI in the VMM-2 Block. On June 20, 2018, the Company acquired the remaining WI in the Alea 1848-A and 1947-C Blocks in the Putumayo Basin for cash consideration of $3.1 million and was entirely recorded to unproved properties. 2017 Acquisition 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 , of which $24.4 million was allocated to proved properties. 2017 Dispositions On December 18, 2017, Gran Tierra completed the sale of its Peru business unit. Pursuant to the divestiture, PetroTal 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 PetroTal 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 and subsequently exchanged them for approximately 58.9 million common shares of PetroTal. After giving effect to the divestiture, Gran Tierra directly and indirectly holds approximately 246.2 million common shares representing approximately 46% of PetroTal's issued and outstanding common shares. PetroTal 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 PetroTal, pursuant to which, Gran Tierra has the right to nominate two directors to the board of PetroTal, 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 PetroTal Common Shares. In addition, Gran Tierra, through its indirect, wholly-owned subsidiary, entered into a carried interest and option agreement with PetroTal 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. On June 30, 2017, the Company completed the 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 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. Unproved Oil and Natural Gas Properties At December 31, 2018 , 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 80% of costs not subject to depletion at December 31, 2018 , will be transferred to the depletable base within the next five years and the remainder in the next five to ten years. The following is a summary of Gran Tierra’s oil and natural gas properties not subject to depletion as at December 31, 2018 : Costs Incurred in (Thousands of U.S. Dollars) 2018 2017 2016 Prior to 2016 Total Acquisition costs - Colombia $ 29,444 $ 11,040 $ 287,565 $ 26,236 $ 354,285 Exploration costs - Colombia 36,729 26,058 6,670 32,856 102,313 $ 66,173 $ 37,098 $ 294,235 $ 59,092 $ 456,598 |
Debt and Debt Issuance Costs
Debt and Debt Issuance Costs | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company's debt at December 31, 2018 and 2017 , was as follows: As at December 31, (Thousands of U.S. Dollars) 2018 2017 Senior notes (a) $ 300,000 $ — Convertible notes (b) $ 115,000 $ 115,000 Revolving credit facility (c) — 148,000 Unamortized debt issuance costs (15,585 ) (6,458 ) Long-term debt $ 399,415 $ 256,542 a) Senior Notes On February 15, 2018 , Gran Tierra Energy International Holdings Ltd. ("GTEIH"), an indirect, wholly owned subsidiary of the Company, issued $300.0 million of 6.25% Senior Notes due 2025 (the "Senior Notes"). The Senior Notes are fully and unconditionally guaranteed by the Company and certain subsidiaries of the Company that guarantee its revolving credit facility. Net proceeds from the sale of the Senior Notes were $288.1 million , after deducting the initial purchasers' discounts and commission and the offering expenses payable by the Company. The Senior Notes bear interest at a rate of 6.25% per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2018 . The Senior Notes will mature on February 15, 2025 , unless earlier redeemed or repurchased. Before February 15, 2022 , GTEIH may, at its option, redeem all or a portion of the Senior Notes at 100% of the principal amount plus accrued and unpaid interest and a make-whole premium. Thereafter, the Company may redeem all or a portion of the Senior Notes plus accrued and unpaid interest applicable to the date of the redemption at the following redemption prices: 2022 - 103.125% ; 2023 - 101.563% ; 2024 and thereafter - 100% . b) Convertible Notes At December 31, 2018 , 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. c) Credit Facility At December 31, 2018 , 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, 2018, 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 November 10, 2020 to November 10, 2021. T he next re-determination of the borrowing base is due to occur no later than May 2019. As a result of the Eleventh Amendment to the credit agreement, 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 1.65% to 3.65% ( December 31, 2017 - 2.15% to 3.65% ), or an alternate base rate plus a margin ranging from 0.65% to 2.65% ( December 31, 2017 - 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. Undrawn amounts under the revolving credit facility bear interest from 0.41% to 0.91% ( December 31, 2017 - 0.54% to 0.91% ) per annum, based on the average daily amount of unused commitments. 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. d) 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) 2018 2017 2016 Contractual interest and other financing expenses $ 24,181 $ 11,467 $ 8,454 Amortization of debt issuance costs 3,183 2,415 5,691 $ 27,364 $ 13,882 $ 14,145 The Company incurred debt issuance costs in connection with the issuance of the Senior Notes, Convertible Notes and its revolving credit facility. As at December 31, 2018 , 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, 2018 | |
Equity [Abstract] | |
Share Capital | Share Capital 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 549,189 — — Shares repurchased and canceled (4,772,869 ) — — Exchange of exchangeable shares 6,111,665 (4,422,776 ) (1,688,889 ) Balance, December 31, 2018 387,079,027 — — The Company’s authorized share capital consists of 595,000,000 shares of capital stock, of which 570 million are designated as Common Stock, par value $0.001 per share and 25 million are designated as Preferred Stock, par value $0.001 per share. On May 1, 2018, Gran Tierra Exchangeco Inc., a wholly-owned subsidiary of the Company, announced that it had established a redemption date of July 5, 2018 in respect of all of its outstanding exchangeable shares. Effective July 5, 2018, all remaining outstanding exchangeable shares of record on July 4, 2018 were acquired for purchase consideration of one share of Gran Tierra common stock for each exchangeable share, and on July 9, 2018, the Company retired and canceled one share of Special A Voting Stock and one share of Special B Voting Stock, which held voting rights in connection with those exchangeable shares. As a result, no shares of Special A Voting Stock and Special B Voting Stock remain outstanding. 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. Share Repurchase Program 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% 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% share maximum is reached. 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, 2018 , include PSUs, deferred share units (“DSUs”), and stock options. In accordance with the 2007 Equity Incentive Plan, as amended, 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, 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 3,879,667 229,125 — 2,114,869 2.55 Exercised — — (120,268 ) (549,189 ) 2.60 Forfeited (1,006,957 ) — — (856,772 ) 4.56 Expired — — (1,822 ) (635,188 ) 6.47 Balance, December 31, 2018 9,004,661 684,893 — 9,034,412 $ 3.18 Vested and exercisable, at December 31, 2018 5,649,640 $ 3.55 Vested, or expected to vest, at December 31, 2018, through the life of the options 8,879,351 $ 3.19 Stock-based compensation expense for the year ended December 31, 2018 , was $8.3 million ( December 31, 2017 - $9.8 million ; December 31, 2016 - $6.3 million ) and was primarily recorded in G&A expenses. At December 31, 2018 , there was $9.2 million ( December 31, 2017 - $13.7 million ) of unrecognized compensation cost related to unvested PSUs and stock options which is expected to be recognized over a weighted average period of 1.6 years. The weighted-average remaining contractual term of options vested, or expected to vest, at December 31, 2018 was 2.5 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. Upon vesting, the underlying number of Common Shares or the cash payment equivalent to their value may range from zero to 200% of the number of PSU's vested, based on the Company’s performance with respect to the applicable performance targets. As at December 31, 2018, 2.7 million (December 31, 2017 - nil) of PSU's had vested and will be settled in cash. The performance targets for the PSUs outstanding as at December 31, 2018 , 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 DSUs 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. Once a DSU is vested, it is immediately settled. During the year ended December 31, 2018 , DSUs were granted to directors and will vest 100% at such time the grantee ceases to be a member of the Board of Directors. The Company currently intends to settle the DSUs in cash. RSUs During the year ended December 31, 2018 , the Company paid $0.4 million to cash settle restricted stock units (“RSUs”) ( 2017 - $0.6 million and 2016 - $ 1.2 million ). There were no RSU's outstanding as at December 31, 2018. 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, 2018 , 549,189 stock options were exercised for cash proceeds of $1.4 million ( 2017 – nil options exercised and shares issued; 2016 – 2,165,370 options exercised and shares issued). At December 31, 2018 , the weighted average remaining contractual term of outstanding stock options was 2.5 years and of exercisable stock options was 1.9 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, 2018 2017 2016 Dividend yield (per share) Nil Nil Nil Volatility 51% to 55% 51% to 53% 50% to 54% Weighted average volatility 54 % 52 % 52 % Risk-free interest rate 2.18% to 3.00% 1.75% to 2.10% 0.94% to 1.78% 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, 2018 , was $1.15 ( 2017 - $1.11 ; 2016 - $1.14 ). The weighted average grant date fair value for options vested in the year ended December 31, 2018 , was $1.23 ( 2017 - $1.31 ; 2016 - $1.52 ). The total fair value of stock options vested during year ended December 31, 2018 , was $2.8 million ( 2017 - $2.5 million ; 2016 - $2.8 million ). Weighted Average Shares Outstanding Year Ended December 31, 2018 2017 2016 Weighted Average number of common and exchangeable shares outstanding 390,930,453 396,683,593 320,851,538 Shares issuable pursuant to stock options 4,207,542 — — Shares assumed to be purchased from proceeds of stock options (3,832,516 ) — — Shares issuable on conversion of Convertible Notes 35,814,393 — — Weighted average number of diluted common and exchange shares outstanding 427,119,872 396,683,593 320,851,538 For the year ended December 31, 2018 , 5,354,545 options, on a weighted average basis, ( 2017 - 9,681,304 options; 2016 - 10,662,034 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, 2018 | |
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) 2018 2017 Balance, beginning of year $ 31,564 $ 43,357 Liability incurred 6,985 3,403 Settlements (600 ) (1,507 ) Accretion 2,772 3,825 Revisions in estimated liability 2,351 (4,095 ) Liabilities associated with assets sold — (16,932 ) Liabilities assumed in acquisitions 727 3,513 Balance, end of year $ 43,799 $ 31,564 Asset retirement obligation - current $ 123 $ 323 Asset retirement obligation - long-term 43,676 31,241 Balance, end of year $ 43,799 $ 31,564 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, 2018 , the fair value of assets that were legally restricted for purposes of settling asset retirement obligations was $2.7 million ( December 31, 2017 - $12.7 million ). These assets were accounted for as restricted cash and cash equivalents on the Company's balance sheet. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Most of the Company's revenue is generated from oil sales at prices which reflect the blended prices received upon shipment by the purchaser at defined sales points or are defined by contract relative to ICE Brent and adjusted for Vasconia crude, quality and transportation discounts each month. For the year ended December 31, 2018 , 100% ( year ended December 31, 2017 - 99% , year-end December 31, 2016 - 99% ) of the Company's revenue resulted from oil sales and quality and transportation discounts were 18% ( year ended December 31, 2017 - 21% , year-end December 31, 2016 - 26% ) of the ICE Brent price. During the year ended December 31, 2018 , the Company's production was sold primarily to two major customers in Colombia ( year ended December 31, 2017 - three , year-end December 31, 2016 - three ). As at December 31, 2018 , accounts receivable included $4.2 million of accrued sales revenue related to December 2018 production (December 31, 2017 - $11.1 million related to December 31, 2017 production). |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Income (Loss) before income taxes United States $ (14,610 ) $ (51,215 ) $ (23,986 ) Foreign 166,097 88,545 (626,248 ) 151,487 37,330 (650,234 ) 21 % 35 % 35 % Income tax expense (recovery) expected 31,812 13,066 (227,582 ) Impact of foreign taxes 34,629 12,310 (9,799 ) Other local taxes 297 1,056 1,998 Stock-based compensation 184 2,001 1,955 Change in valuation allowance (21,953 ) 52,269 47,675 Non-deductible third party royalty in Colombia 1,813 3,194 2,550 Other permanent differences 2,089 (14,858 ) (1,466 ) Total income tax expense (recovery) $ 48,871 $ 69,038 $ (184,669 ) Effective Tax Rate 32 % 185 % 28 % Current income tax expense United States $ — $ 3,457 $ 1,818 Foreign 43,903 20,865 18,304 43,903 24,322 20,122 Deferred income tax expense (recovery) Foreign (1) 4,968 44,716 (204,791 ) Total income tax expense (recovery) $ 48,871 $ 69,038 $ (184,669 ) (1) The deferred tax recovery for the year ended December 31, 2016 , included $201.3 million associated with the ceiling test impairment loss in Colombia. In general, it is the Company's practice and intention to reinvest the earnings of our non-U.S. subsidiaries in such subsidiaries' operations. As of December 31, 2018 , the Company has not made a provision for U.S. or additional foreign withholding taxes on the investments in foreign subsidiaries that are indefinitely reinvested. Generally, such amounts become subject to taxation upon the remittance of dividends and under certain other circumstances. In the fourth quarter of 2018, the Colombia government approved a number of changes to the tax legislation (the "Tax Reform") including reducing the corporate income tax rate from 37% in 2018 (including a 4% surtax) to 33% for 2019, 32% for 2020, 31% for 2021 and 30% for 2022 and onwards. The tax rates applied to the calculation of deferred income taxes, before valuation allowances, have been adjusted to reflect these changes resulting in a tax expense of $8.3 million . This adjustment is included in the Impact of foreign taxes line above. As a result of the Tax Reform, the Colombian government increased the dividend tax on distributions to foreign non-resident entities from 5% to 7.5% if they relate to previously taxed earnings from 2017 and onwards. The Tax Reform reduced the corporate minimum presumptive income tax from 3.5% to 1.5% in 2019 and 2020, and 0% for 2021 and onwards. The tax is imposed on the taxpayer’s net equity at the prior year-end when the presumptive income tax exceeds actual taxable profits. Additionally, the Tax Reform subjects indirect transfers of Colombian assets or shares to tax in Colombia, among other, if the Colombian assets/shares account for 20% or more of the book or fair market value of the foreign entity that is being transferred. At December 31, 2017 , the Company considered amounts recorded related to U.S. tax reform to be reasonable estimates, however certain amounts were provisional as the Company’s interpretation, assessment and presentation of the impact of the tax law change, were further clarified with additional guidance from tax and accounting authorities received in 2018. With additional guidance provided during the one-year measurement period and upon finalizing its 2017 annual tax return for its U.S. business, the Company recorded no material changes to its deferred income tax balances. As at December 31, (Thousands of U.S. Dollars) 2018 2017 Deferred Tax Assets Tax benefit of operating loss carryforwards $ 51,042 $ 60,460 Tax basis in excess of book basis 8,854 62,768 Foreign tax credits and other accruals 79,820 70,157 Tax benefit of capital loss carryforwards 32,737 52,575 Deferred tax assets before valuation allowance 172,453 245,960 Valuation allowance (127,016 ) (188,650 ) 45,437 57,310 Deferred Tax Liabilities 23,419 28,417 Net Deferred Tax Assets $ 22,018 $ 28,893 At December 31, 2018, the Company has not recognized the benefit of unused non-capital loss carryforwards of $22.7 million (2017 - $8.6 million ) for federal purposes in the United States, which expire from 2029 to 2038. At December 31, 2018, the Company has not recognized the benefit of unused non-capital loss carryforwards of $27.1 million (2017 - $29.6 million ) for federal and provincial purposes in Canada, which expire from 2029 to 2037. The Company has not recognized the benefit of capital loss carry forwards of $242.4 million (2017 - $243.4 million ) for federal and provincial purposes in Canada which can be carried forward indefinitely. At December 31, 2018, the Company has recognized the benefit of unused non-capital loss carryforwards of $98.9 million and tax credits of $2.2 million (2017 - $1.1 million ) for federal purposes in Colombia. As a result of the 2016 Colombian Tax Reform, Colombian losses can be carryforward for a period of 12 years, and not indefinitely as under the previous tax regime. There is a grandfathering rule for losses incurred prior to 2017, which may continue to be carried forward indefinitely. $75.4 million of the Colombian losses can be carried forward indefinitely and $23.5 million are entitled to a carryforward period of 12 years. Due to an increase in reserves and expected oil prices, the Company has revised its estimate of future taxable profits upwards in the future. As a result, the Company recognized the tax effect of $122.3 million of previously unrecognized tax losses and other tax deductions (tax impact $40.3 million ) because the Company considers it more likely than not that future taxable profits will be available against which such tax losses and other tax deductions can be used. As at December 31, 2018 and 2017, Gran Tierra had no unrecognized tax benefits and related interest and penalties included in its deferred and current tax liabilities in the consolidated balance sheet. The Company does not anticipate any material changes with respect to unrecognized tax benefit within the next twelve months. The Company had no other significant interest or penalties related to taxes included in the consolidated statement of operations for the quarter ended December 31, 2018. The Company and its subsidiaries file income tax returns in the U.S. and certain other foreign jurisdictions. The Company is subject to income tax examinations for the tax years ended 2010 through 2018 in certain jurisdictions. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Year Ended December 31, (Thousands of U.S. Dollars) 2018 2017 Trade $ 123,905 $ 95,386 Royalties 3,550 6,867 Employee compensation 8,195 8,908 Other 19,020 15,038 $ 154,670 $ 126,199 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations, Firm Agreements and Leases As at December 31, 2018 , future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: Year ending December 31 Total 2019 2020 2021 2022 2023 Thereafter (Thousands of U.S. Dollars) Oil transportation services $ 7,053 $ 3,842 $ 3,211 $ — $ — $ — $ — Power generation facility 15,084 3,810 3,821 3,810 3,643 — — Operating leases 7,528 2,409 2,499 1,575 1,045 — — $ 29,665 $ 10,061 $ 9,531 $ 5,385 $ 4,688 $ — $ — Gran Tierra leases certain office space, compressors, vehicles, equipment and housing. Total rent expense for the year ended December 31, 2018 , was $2.3 million ( December 31, 2017 – $3.2 million ; December 31, 2016 - $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, 2018 , the Company had provided letters of credit and other credit support totaling $76.7 million ( December 31, 2017 - $76.0 million ) as security 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 $56.3 million as at December 31, 2018 . 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, 2018 | |
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, 2018 , 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; current and long-term equity compensation reward liability and other long-term liabilities. Fair Value Measurement The fair value of investment, derivatives 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, 2018 , 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 PetroTal’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 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, 2018 , and December 31, 2017 were as follows: As at December 31, (Thousands of U.S. Dollars) 2018 2017 Investment - current and long-term assets $ 41,435 $ 44,202 Derivative asset — 302 $ 41,435 $ 44,504 Derivative liability $ 1,017 $ 21,151 RSU, PSU and DSU liability 17,683 11,430 $ 18,700 $ 32,581 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, 2018 2017 2016 Commodity price derivative loss $ 13,972 $ 17,327 $ 7,370 Foreign currency derivative gain (890 ) (1,287 ) (1,016 ) Investment gain (786 ) (111 ) — Trading securities loss — — 3,925 $ 12,296 $ 15,929 $ 10,279 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 PetroTal 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, 2018 , 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. Financial instruments not recorded at fair value include the Senior Notes and Convertible Notes (Note 6). At December 31, 2018 , the carrying amounts of the Senior Notes and Convertible Notes were $289.3 million and $112.1 million , respectively, which represents the aggregate principal amount less unamortized debt issuance costs, and the fair values were $280.4 million and $115.5 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, 2018 , the fair value of current portion of the investment, 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) 2018 2017 Opening balance $ 19,147 $ — Acquisition — 19,091 Transfer from long-term (Level 3) to current (Level 1) (10,522 ) — Unrealized gain on valuation 846 56 Unrealized loss on foreign exchange (760 ) — Closing balance $ 8,711 $ 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 Risk The Company may at time utilize 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. As at December 31, 2018 , the Company did not have any commodity price derivatives outstanding. Foreign Exchange Risk The Company is exposed to foreign exchange risk in relation to its Colombian operations predominantly in operating costs, general and administrative costs and transportation costs. To mitigate exposure to fluctuations in foreign exchange, the Company may enter into foreign exchange derivatives. As at December 31, 2018 , the Company did not have any foreign exchange derivatives outstanding. 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 $7,209 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, 2018 , deferred tax balances. For the year ended December 31, 2018 , 100% ( December 31, 2017 - 98% , December 31, 2016 - 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, 2018 , 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, 2018 , the Company had two customers which were significant. 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, 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 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) Year Ended December 31, 2018 2017 2016 Cash and cash equivalents $ 51,040 $ 12,326 $ 25,175 Restricted cash and cash equivalents - current 1,269 11,787 8,322 Restricted cash and cash equivalents - long-term (1) 1,999 2,565 9,770 $ 54,308 $ 26,678 $ 43,267 (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, 2018 2017 2016 Accounts receivable and other long-term assets $ 17,674 $ (2,494 ) $ (29 ) Derivatives 1,017 — (3,546 ) Inventory (2,127 ) (78 ) 5,510 Other prepaids 547 2,674 (615 ) Accounts payable and accrued and other long-term liabilities 9,034 15,617 (9,691 ) Prepaid tax and taxes receivable and payable (47,566 ) (44,936 ) (2,966 ) Net changes in assets and liabilities from operating activities $ (21,421 ) $ (29,217 ) $ (11,337 ) The following table provides additional supplemental cash flow disclosures: Year Ended December 31, 2018 2017 2016 Cash paid for income taxes $ 46,277 $ 54,505 $ 64,067 Cash paid for interest $ 16,038 $ 9,684 $ 5,624 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of year $ 85,204 $ 76,352 $ 55,181 Year ended December 31, 2017 included non-cash share consideration received in connection with the Company's disposition of its Peru Business unit (see Note 4). 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, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Subsequent to year-end, the Company announced that it had entered into an agreement to acquire working interest and operatorship of the Suroriente Block, which would increase Gran Tierra's WI from 16% to 52% . In addition, the Company would acquire 50% WI in and operatorship of the Putumayo-8 Block, and 100% WI in the Llanos-5 Block. The purchase price for the acquisition is $104.2 million and is subject to certain adjustments and the satisfaction of certain customary conditions. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. |
Investment in PetroTal Corp | Investment in PetroTal Corp. During December 2017, the Company acquired an investment in common shares of PetroTal Corp. ("PetroTal" formerly Sterling Resources Ltd.) in connection with the sale of its Peru business unit. At December 31, 2018 , this investment represented approximately 46% of PetroTal's issued and outstanding common shares. The Company determined that it did not have a controlling financial interest in PetroTal, but could exert significant influence over PetroTal's operating and financial policies as a result of its ownership interest in PetroTal and the right to nominate two directors to PetroTal's board of directors. Accordingly, Gran Tierra accounted for its investment in the common shares of PetroTal 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 PetroTal's common shares is recorded in 'Investments' in the consolidated balance sheet, and the change in fair value is recorded in the consolidated statements 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 statements 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 for furniture and fixtures, computer equipment and automobiles is provided using the straight-line method over the useful life of the asset. 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 from contracts with customers | Revenue from Contracts with Customers 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. When determining if the Company acted as a principal or as an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considers detailed criteria for revenue recognition set out in ASC 606. 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. |
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. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share is calculated by dividing net income or 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 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. Recognition and Measurement of Financial Assets and Financial Liabilities In February 2018, the FASB issued ASU 2018-03, "Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2018-03 clarified certain aspects of the guidance in ASU 2016-01. ASU 2018-03 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those annual reporting periods beginning after June 15, 2018. Early adoption is permitted upon adoption of ASU 2016-01.The amendments should be applied retrospectively with a cumulative-effect adjustment to the effective date of ASU 2016-01. The Company early adopted this update on January 1, 2018. The implementation of this update did not impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. 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. 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, 2018 , the Company performed a qualitative assessment of goodwill and, based on this assessment, no impairment of goodwill was identified. Recently Issued Accounting Pronouncements 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. In January 2018, the FASB issued ASU 2018-01, "Land Easement Practical Expedient for Transition to Topic 842". ASU 2018-01 provides an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing or expired land easements that were not previously accounted for as leases under Topic 840. The effective date and transition requirements for the amendment are the same as the effective date and transition requirements in ASU 2016-02. The Company is planning to adopt ASU 2018-01 upon transition to ASU 2016-02 "Leases". The Company has completed an assessment of its contract inventory, identified contracts which meet the definition of a lease and is currently finalizing the value of right-of-use lease assets and lease liabilities and transition adjustments. The Company expects to use practical expedients available for land easements and short-term leases and will apply the guidance of ASU 2016-02 using a modified retrospective transition approach. The Company's preliminarily estimates of a right of use asset is between $5 to $10 million with the main assets being attributed to office space leases. Actual amounts recorded will depend on the Company's final conclusions with respect to the appropriate discount rates and lease terms to be applied on the date of transition. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, "Changes to the Disclosure Requirements for Fair Value Measurement". ASU 2018-13 will modify certain fair value measurements disclosure requirements. ASU 2018-13 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The disclosure amendments on changes in unrealized gains and losses, and disclosure requirements for significant unobservable inputs used to develop Level 3 fair value measurements, should be applied prospectively. All other amendments in ASU 2018-13 should be applied retrospectively. Early adoption is permitted. The Company is currently assessing this impact of this update on its consolidated financial position, results of operations or cash flows. 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 this impact of this update on it’s consolidated financial position, results of operations or cash flows. |
Segment and Geographic Report_2
Segment and Geographic Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Information on Reportable Segments and Other Activities | The following tables present comparative information on the Company’s reportable segment and other activities for the years ended December 31, 2017 and 2016 : 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 |
Schedule of Long-lived Assets by Geographical Area | Year Ended 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 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As at December 31, (Thousands of U.S. Dollars) 2018 2017 Trade $ 16,332 $ 37,794 Other 9,845 7,559 $ 26,177 $ 45,353 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As at December 31, (Thousands of U.S. Dollars) 2018 2017 Oil and natural gas properties Proved $ 3,226,811 $ 2,810,796 Unproved 456,598 464,948 3,683,409 3,275,744 Other 19,549 26,401 3,702,958 3,302,145 Accumulated depletion and depreciation (2,390,181 ) (2,202,921 ) $ 1,312,777 $ 1,099,224 |
Schedule of Asset Impairment | Asset impairment for the three years ended December 31, 2018 , was as follows: (Thousands of U.S. Dollars) Year Ended December 31, 2018 2017 2016 Impairment of oil and gas properties $ — $ 1,514 $ 615,985 Impairment of inventory — — 664 $ — $ 1,514 $ 616,649 |
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, 2018 : Costs Incurred in (Thousands of U.S. Dollars) 2018 2017 2016 Prior to 2016 Total Acquisition costs - Colombia $ 29,444 $ 11,040 $ 287,565 $ 26,236 $ 354,285 Exploration costs - Colombia 36,729 26,058 6,670 32,856 102,313 $ 66,173 $ 37,098 $ 294,235 $ 59,092 $ 456,598 |
Debt and Debt Issuance Costs (T
Debt and Debt Issuance Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt at December 31, 2018 and 2017 , was as follows: As at December 31, (Thousands of U.S. Dollars) 2018 2017 Senior notes (a) $ 300,000 $ — Convertible notes (b) $ 115,000 $ 115,000 Revolving credit facility (c) — 148,000 Unamortized debt issuance costs (15,585 ) (6,458 ) Long-term debt $ 399,415 $ 256,542 |
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) 2018 2017 2016 Contractual interest and other financing expenses $ 24,181 $ 11,467 $ 8,454 Amortization of debt issuance costs 3,183 2,415 5,691 $ 27,364 $ 13,882 $ 14,145 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 385,191,042 4,422,776 1,688,889 Options exercised 549,189 — — Shares repurchased and canceled (4,772,869 ) — — Exchange of exchangeable shares 6,111,665 (4,422,776 ) (1,688,889 ) Balance, December 31, 2018 387,079,027 — — |
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, 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 3,879,667 229,125 — 2,114,869 2.55 Exercised — — (120,268 ) (549,189 ) 2.60 Forfeited (1,006,957 ) — — (856,772 ) 4.56 Expired — — (1,822 ) (635,188 ) 6.47 Balance, December 31, 2018 9,004,661 684,893 — 9,034,412 $ 3.18 Vested and exercisable, at December 31, 2018 5,649,640 $ 3.55 Vested, or expected to vest, at December 31, 2018, through the life of the options 8,879,351 $ 3.19 |
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, 2018 2017 2016 Dividend yield (per share) Nil Nil Nil Volatility 51% to 55% 51% to 53% 50% to 54% Weighted average volatility 54 % 52 % 52 % Risk-free interest rate 2.18% to 3.00% 1.75% to 2.10% 0.94% to 1.78% Expected term 4-5 years 4-5 years 4-5 years |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Balance, beginning of year $ 31,564 $ 43,357 Liability incurred 6,985 3,403 Settlements (600 ) (1,507 ) Accretion 2,772 3,825 Revisions in estimated liability 2,351 (4,095 ) Liabilities associated with assets sold — (16,932 ) Liabilities assumed in acquisitions 727 3,513 Balance, end of year $ 43,799 $ 31,564 Asset retirement obligation - current $ 123 $ 323 Asset retirement obligation - long-term 43,676 31,241 Balance, end of year $ 43,799 $ 31,564 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Income (Loss) before income taxes United States $ (14,610 ) $ (51,215 ) $ (23,986 ) Foreign 166,097 88,545 (626,248 ) 151,487 37,330 (650,234 ) 21 % 35 % 35 % Income tax expense (recovery) expected 31,812 13,066 (227,582 ) Impact of foreign taxes 34,629 12,310 (9,799 ) Other local taxes 297 1,056 1,998 Stock-based compensation 184 2,001 1,955 Change in valuation allowance (21,953 ) 52,269 47,675 Non-deductible third party royalty in Colombia 1,813 3,194 2,550 Other permanent differences 2,089 (14,858 ) (1,466 ) Total income tax expense (recovery) $ 48,871 $ 69,038 $ (184,669 ) Effective Tax Rate 32 % 185 % 28 % Current income tax expense United States $ — $ 3,457 $ 1,818 Foreign 43,903 20,865 18,304 43,903 24,322 20,122 Deferred income tax expense (recovery) Foreign (1) 4,968 44,716 (204,791 ) Total income tax expense (recovery) $ 48,871 $ 69,038 $ (184,669 ) (1) 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) 2018 2017 Deferred Tax Assets Tax benefit of operating loss carryforwards $ 51,042 $ 60,460 Tax basis in excess of book basis 8,854 62,768 Foreign tax credits and other accruals 79,820 70,157 Tax benefit of capital loss carryforwards 32,737 52,575 Deferred tax assets before valuation allowance 172,453 245,960 Valuation allowance (127,016 ) (188,650 ) 45,437 57,310 Deferred Tax Liabilities 23,419 28,417 Net Deferred Tax Assets $ 22,018 $ 28,893 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Year Ended December 31, (Thousands of U.S. Dollars) 2018 2017 Trade $ 123,905 $ 95,386 Royalties 3,550 6,867 Employee compensation 8,195 8,908 Other 19,020 15,038 $ 154,670 $ 126,199 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Agreements | As at December 31, 2018 , future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: Year ending December 31 Total 2019 2020 2021 2022 2023 Thereafter (Thousands of U.S. Dollars) Oil transportation services $ 7,053 $ 3,842 $ 3,211 $ — $ — $ — $ — Power generation facility 15,084 3,810 3,821 3,810 3,643 — — Operating leases 7,528 2,409 2,499 1,575 1,045 — — $ 29,665 $ 10,061 $ 9,531 $ 5,385 $ 4,688 $ — $ — |
Financial Instruments, Fair V_2
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , and December 31, 2017 were as follows: As at December 31, (Thousands of U.S. Dollars) 2018 2017 Investment - current and long-term assets $ 41,435 $ 44,202 Derivative asset — 302 $ 41,435 $ 44,504 Derivative liability $ 1,017 $ 21,151 RSU, PSU and DSU liability 17,683 11,430 $ 18,700 $ 32,581 |
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, 2018 2017 2016 Commodity price derivative loss $ 13,972 $ 17,327 $ 7,370 Foreign currency derivative gain (890 ) (1,287 ) (1,016 ) Investment gain (786 ) (111 ) — Trading securities loss — — 3,925 $ 12,296 $ 15,929 $ 10,279 |
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) 2018 2017 Opening balance $ 19,147 $ — Acquisition — 19,091 Transfer from long-term (Level 3) to current (Level 1) (10,522 ) — Unrealized gain on valuation 846 56 Unrealized loss on foreign exchange (760 ) — Closing balance $ 8,711 $ 19,147 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) Year Ended December 31, 2018 2017 2016 Cash and cash equivalents $ 51,040 $ 12,326 $ 25,175 Restricted cash and cash equivalents - current 1,269 11,787 8,322 Restricted cash and cash equivalents - long-term (1) 1,999 2,565 9,770 $ 54,308 $ 26,678 $ 43,267 (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, 2018 2017 2016 Accounts receivable and other long-term assets $ 17,674 $ (2,494 ) $ (29 ) Derivatives 1,017 — (3,546 ) Inventory (2,127 ) (78 ) 5,510 Other prepaids 547 2,674 (615 ) Accounts payable and accrued and other long-term liabilities 9,034 15,617 (9,691 ) Prepaid tax and taxes receivable and payable (47,566 ) (44,936 ) (2,966 ) Net changes in assets and liabilities from operating activities $ (21,421 ) $ (29,217 ) $ (11,337 ) |
Schedule of Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures: Year Ended December 31, 2018 2017 2016 Cash paid for income taxes $ 46,277 $ 54,505 $ 64,067 Cash paid for interest $ 16,038 $ 9,684 $ 5,624 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of year $ 85,204 $ 76,352 $ 55,181 |
Significant Accounting Polici_3
Significant Accounting Policies - Investment in PetroTal Corp (Details) | 12 Months Ended |
Dec. 31, 2018director | |
Schedule of Equity Method Investments [Line Items] | |
Number of directors eligible to be nominated by the company | 2 |
Petro Tal | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest divested (as a percent) | 46.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Goodwill (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |
Goodwill, impairment loss | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Convertible Senior Notes (Narrative) (Details) | Dec. 31, 2018 |
Convertible Senior Notes | 5.00% Convertible Senior Notes due 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate | 5.00% |
Significant Accounting Polici_6
Significant Accounting Policies - Income Taxes - Intra-Entity Transfers of Assets Other than Inventory (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense (benefit) | $ 48,871 | $ 69,038 | $ (184,669) | |
Deferred tax asset | $ 22,018 | $ 28,893 | ||
Deficit | ASU 2016-16 | New Accounting Pronouncement, Early Adoption, Effect | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense (benefit) | $ 124,500 | |||
Deferred tax asset | 178,600 | |||
Prepaid income taxes | $ 54,100 |
Significant Accounting Polici_7
Significant Accounting Policies - Restricted Cash (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Net (decrease) in cash, cash equivalents and restricted cash and cash equivalents | $ 27,630 | $ (16,589) | $ (105,484) |
Significant Accounting Polici_8
Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - Pro Forma - Accounting Standards Update 2016-02 $ in Millions | Dec. 31, 2018USD ($) |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, right-of-use asset | $ 10 |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, right-of-use asset | $ 5 |
Segment and Geographic Report_3
Segment and Geographic Reporting - Schedule of Information on Reportable Segments and Other Activities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Segment Reporting Information [Line Items] | |||
Depletion, depreciation and accretion (Note 5) | $ 197,867 | $ 131,335 | $ 139,535 |
Asset impairment | 0 | 1,514 | 616,649 |
General and administrative expenses | 39,483 | 39,014 | 33,218 |
Interest expense | 13,882 | 14,145 | |
Gain (Loss) on sale and acquisition | 0 | (44,385) | 929 |
Income (loss) before income taxes | 151,487 | 37,330 | (650,234) |
Segment capital expenditures | $ 347,093 | 251,041 | 127,789 |
Colombia | |||
Segment Reporting Information [Line Items] | |||
Asset impairment | 513,650 | ||
Reportable Segments | Colombia | |||
Segment Reporting Information [Line Items] | |||
Depletion, depreciation and accretion (Note 5) | 126,453 | 132,569 | |
Asset impairment | 0 | 514,314 | |
General and administrative expenses | 23,500 | 17,187 | |
Interest expense | 486 | 0 | |
Gain (Loss) on sale and acquisition | 0 | 0 | |
Income (loss) before income taxes | 111,829 | (505,447) | |
Segment capital expenditures | 242,636 | 105,963 | |
All Other | |||
Segment Reporting Information [Line Items] | |||
Depletion, depreciation and accretion (Note 5) | 4,882 | 6,966 | |
Asset impairment | 1,514 | 102,335 | |
General and administrative expenses | 15,514 | 16,031 | |
Interest expense | 13,396 | 14,145 | |
Gain (Loss) on sale and acquisition | (44,385) | 929 | |
Income (loss) before income taxes | (74,499) | (144,787) | |
Segment capital expenditures | 8,405 | 21,826 | |
Oil and Gas Service | |||
Segment Reporting Information [Line Items] | |||
Oil and natural gas sales | 421,734 | 289,269 | |
Oil and Gas Service | Reportable Segments | Colombia | |||
Segment Reporting Information [Line Items] | |||
Oil and natural gas sales | 413,316 | 280,872 | |
Oil and Gas Service | All Other | |||
Segment Reporting Information [Line Items] | |||
Oil and natural gas sales | $ 8,418 | $ 8,397 |
Segment and Geographic Report_4
Segment and Geographic Reporting - Schedule of Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 1,312,777 | $ 1,099,224 |
Goodwill | 102,581 | 102,581 |
All other assets | 227,814 | |
Total Assets | $ 1,676,584 | 1,429,619 |
Reportable Segments | Colombia | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,096,833 | |
Goodwill | 102,581 | |
All other assets | 176,980 | |
Total Assets | 1,376,394 | |
All Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 2,391 | |
Goodwill | 0 | |
All other assets | 50,834 | |
Total Assets | $ 53,225 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 26,177 | $ 45,353 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 16,332 | 37,794 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 9,845 | $ 7,559 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,702,958 | $ 3,302,145 |
Accumulated depletion and depreciation | (2,390,181) | (2,202,921) |
Total Property, Plant and Equipment (Notes 5) | 1,312,777 | 1,099,224 |
Oil and natural gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,683,409 | 3,275,744 |
Proved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,226,811 | 2,810,796 |
Unproved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 456,598 | 464,948 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 19,549 | $ 26,401 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Narrative) (Details) $ in Thousands | Dec. 01, 2018USD ($) | Oct. 01, 2018USD ($) | Aug. 06, 2018USD ($) | Jun. 20, 2018USD ($) | Dec. 18, 2017USD ($)shares | Jun. 30, 2017USD ($) | Apr. 27, 2017USD ($) | Dec. 31, 2018USD ($)$ / bblshares | Dec. 31, 2017USD ($)$ / bblshares | Dec. 31, 2016USD ($)$ / bbl |
Property, Plant and Equipment [Line Items] | ||||||||||
Depletion and depreciation expense | $ 197,000 | $ 126,800 | $ 130,200 | |||||||
Impairment losses | $ 0 | $ 1,514 | 616,649 | |||||||
Payments to acquire oil and gas property | $ 3,100 | |||||||||
Payments to acquire assets | $ 30,400 | |||||||||
Proved | $ 24,400 | |||||||||
Number of shares of common stock owned by the company (in shares) | shares | 387,079,027 | 385,191,042 | ||||||||
Voting rights exercised, maximum | 30.00% | |||||||||
Loss on sale of business unit | $ 0 | $ 44,385 | (929) | |||||||
Costs not expected to be subject to depletion (as a percent) | 80.00% | |||||||||
Colombia | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Impairment losses | 513,650 | |||||||||
Brazil Segment | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Impairment losses | 71,140 | |||||||||
Impairment of unproved properties | $ 45,000 | |||||||||
Crude Oil and NGL | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Average Brent price per barrel (in USD per barrel) | $ / bbl | 72.08 | 54.19 | 42.92 | |||||||
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 | |||||||||
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 | |||||||||
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 | |||||||||
Block 107 | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Working interest percent | 20.00% | |||||||||
Subscription Receipts | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Warrants and rights, purchased | $ 11,000 | |||||||||
Middle Magdalena Valley Basin | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Payments to acquire oil and gas property | $ 5,000 | $ 17,000 | ||||||||
Middle Magdalena Valley Basin | Proved Oil and Gas Properties | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Percentage of working interests acquired | 80.00% | |||||||||
Payments to acquire oil and gas property | $ 1,600 | $ 6,200 | ||||||||
PUT-1 Block In The Putumayo Basin | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Percentage of working interests acquired | 45.00% | |||||||||
Payments to acquire oil and gas property | $ 28,100 | |||||||||
PUT-1 Block In The Putumayo Basin | Proved Oil and Gas Properties | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Payments to acquire oil and gas property | $ 15,200 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Schedule of Asset Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Impairment of oil and gas properties | $ 0 | $ 1,514 | $ 615,985 |
Impairment of inventory | 0 | 0 | 664 |
Asset impairment | $ 0 | $ 1,514 | $ 616,649 |
Property, Plant and Equipment_4
Property, Plant and Equipment - Summary of Oil and Natural Gas Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | 48 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Total oil and natural gas properties not subject to depletion | $ 66,173 | $ 37,098 | $ 294,235 | $ 59,092 | $ 456,598 |
Colombia | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Acquisition costs | 29,444 | 11,040 | 287,565 | 26,236 | 354,285 |
Exploration costs | $ 36,729 | $ 26,058 | $ 6,670 | $ 32,856 | $ 102,313 |
Debt and Debt Issuance Costs -
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) | Dec. 31, 2018 | Feb. 15, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (15,585,000) | $ (6,458,000) | |
Long-term debt | 399,415,000 | 256,542,000 | |
Convertible senior notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 115,000,000 | 115,000,000 | |
Revolving Credit Facility | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 0 | 148,000,000 | |
Senior Notes Unsecured 6.25% | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 300,000,000 | $ 300,000,000 | $ 0 |
Debt and Debt Issuance Costs _2
Debt and Debt Issuance Costs - Senior Notes (Narrative) (Details) - USD ($) | Feb. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of senior long-term debt | $ 288,131,000 | $ 0 | $ 0 | |
Senior Notes | Senior Notes Unsecured 6.25% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 300,000,000 | $ 300,000,000 | $ 0 | |
Stated interest rate | 6.25% | |||
Redemption price (as a percent) | 100.00% | |||
Proceeds from issuance of senior long-term debt | $ 288,100,000 | |||
Senior Notes | Senior Notes Unsecured 6.25% | 2022 | ||||
Debt Instrument [Line Items] | ||||
Redemption price (as a percent) | 103.125% | |||
Senior Notes | Senior Notes Unsecured 6.25% | 2023 | ||||
Debt Instrument [Line Items] | ||||
Redemption price (as a percent) | 101.563% | |||
Senior Notes | Senior Notes Unsecured 6.25% | 2024 and Thereafter | ||||
Debt Instrument [Line Items] | ||||
Redemption price (as a percent) | 100.00% |
Debt and Debt Issuance Costs _3
Debt and Debt Issuance Costs - Convertible Notes (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)day$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Net proceeds from sale of the Notes | $ 4,560 | $ 167,043 | $ 256,065 |
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 | 0.3114295 | ||
Initial conversion price (in USD 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 _4
Debt and Debt Issuance Costs - Credit Facility (Narrative) (Details) - Credit Agreement - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revolving Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Interest rate on undrawn amounts | 0.41% | 0.54% |
Revolving Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Interest rate on undrawn amounts | 0.91% | 0.91% |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.65% | 2.15% |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 3.65% | 3.65% |
Revolving Credit Facility | Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.65% | 1.15% |
Revolving Credit Facility | Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.65% | 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 _5
Debt and Debt Issuance Costs - Schedule of Total Interest Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 3,183 | $ 2,415 | $ 5,691 |
Interest expense | 27,364 | 13,882 | 14,145 |
Convertible and Non-convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest and other financing expenses | 24,181 | 11,467 | 8,454 |
Convertible senior notes | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | 3,183 | 2,415 | 5,691 |
Interest expense | $ 27,364 | $ 13,882 | $ 14,145 |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2017 (in shares) | 385,191,042 |
Options exercised (in shares) | 549,189 |
Shares repurchased and canceled (in shares) | (4,772,869) |
Exchange of exchangeable shares | 6,111,665 |
Balance, December 31, 2018 (in shares) | 387,079,027 |
Exchangeable Shares of Gran Tierra Exchangeco Inc. | |
Increase (Decrease) in Stockholders' Equity | |
Options exercised (in shares) | 0 |
Shares repurchased and canceled (in shares) | 0 |
Exchange of exchangeable shares | (4,422,776) |
Exchangeable Shares of Gran Tierra Goldstrike Inc. | |
Increase (Decrease) in Stockholders' Equity | |
Options exercised (in shares) | 0 |
Shares repurchased and canceled (in shares) | 0 |
Exchange of exchangeable shares | (1,688,889) |
Common Stock | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2017 (in shares) | 385,191,042 |
Balance, December 31, 2018 (in shares) | 387,079,027 |
Common Stock | Exchangeable Shares of Gran Tierra Exchangeco Inc. | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2017 (in shares) | 4,422,776 |
Balance, December 31, 2018 (in shares) | 0 |
Common Stock | Exchangeable Shares of Gran Tierra Goldstrike Inc. | |
Increase (Decrease) in Stockholders' Equity | |
Balance, December 31, 2017 (in shares) | 1,688,889 |
Balance, December 31, 2018 (in shares) | 0 |
Share Capital - Additional Info
Share Capital - Additional Information (Narrative) (Details) | Jul. 09, 2018shares | Jul. 05, 2018shares | Dec. 31, 2018vote$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized share capital (in shares) | 595,000,000 | ||||
Common stock, shares authorized (in shares) | 570,000,000 | ||||
Common shares, par value (in USD per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Subsidiary redemption, shares issues to redeem outstanding shares | 1 | ||||
Number of votes per common stock | vote | 1 | ||||
Preferred Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred Stock, shares authorized (in shares) | 25,000,000 | ||||
Preferred Stock, par value (in USD per share) | $ / shares | $ 0.001 | ||||
Special A Voting Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, canceled | 1 | ||||
Special B Voting Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, canceled | 1 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 5,354,545 | 9,681,304 | 10,662,034 |
Share Capital - Share Repurchas
Share Capital - Share Repurchase Program (Details) - shares | Mar. 08, 2018 | Feb. 06, 2017 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, number of shares authorized to be repurchased, percent of issued and outstanding shares of common stock (percent) | 5.00% | |
2018 Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 19,269,732 |
Share Capital - Equity Compensa
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | 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 | |||
Share-based compensation | $ 8,299 | $ 9,775 | $ 6,339 | ||
Unrecognized compensation cost | $ 9,200 | 13,700 | |||
Weighted average period of recognition | 1 year 7 months 12 days | ||||
Weighted average remaining contractual term | 2 years 6 months | ||||
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% | ||||
General and Administrative Expense | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 8,300 | $ 9,800 | $ 6,300 |
Share Capital - Schedule of Inf
Share Capital - Schedule of Information About PSU, DSU, RSU and Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Outstanding Stock Options | ||
Balance, Beginning of period (in shares) | 8,960,692 | |
Granted (in shares) | 2,114,869 | |
Exercised (in shares) | (549,189) | |
Forfeited (in shares) | (856,772) | |
Expired (in shares) | (635,188) | |
Balance, End of period (in shares) | 9,034,412 | |
Exercisable, at end of period (in shares) | 5,649,640 | |
Vested, or expected to vest, at end of period through the life of the options (in shares) | 8,879,350.735198 | |
Weighted Average Exercise Price /Stock Option ($) | ||
Balance, Beginning of period (in USD per share) | $ 3.65 | |
Granted (in USD per share) | 2.55 | |
Exercised (in USD per share) | 2.60 | |
Forfeited (in USD per share) | 4.56 | |
Expired (in USD per share) | 6.47 | |
Balance, End of period (in USD per share) | 3.18 | |
Exercisable, at end of period (in USD per share) | 3.55 | |
Vested, or expected to vest, at end of period through the life of the options (in USD per share) | $ 3.19 | |
PSUs | ||
Number of Outstanding Share Units | ||
Balance, Beginning of period (in shares) | 6,131,951 | |
Granted (in shares) | 3,879,667 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | (1,006,957) | |
Expired (in shares) | 0 | |
Balance, End of period (in shares) | 9,004,661 | |
Vested, or expected to vest, at December 31, 2018 | ||
Vested and exercisable (in shares) | 2,725,877 | |
DSUs | ||
Number of Outstanding Share Units | ||
Balance, Beginning of period (in shares) | 455,768 | |
Granted (in shares) | 229,125 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Expired (in shares) | 0 | |
Balance, End of period (in shares) | 684,893 | |
Vested, or expected to vest, at December 31, 2018 | ||
Vested and exercisable (in shares) | ||
RSUs | ||
Number of Outstanding Share Units | ||
Balance, Beginning of period (in shares) | 122,090 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (120,268) | |
Forfeited (in shares) | 0 | |
Expired (in shares) | (1,822) | |
Balance, End of period (in shares) | 0 | |
Vested, or expected to vest, at December 31, 2018 | ||
Vested and exercisable (in shares) |
Share Capital - PSUs (Narrative
Share Capital - PSUs (Narrative) (Details) - PSUs | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 0.4 | $ 0.6 | $ 1.2 |
Share Capital - Stock Options (
Share Capital - Stock Options (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2013 | May 31, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation award, common stock for purchase, exercise price | 1 | ||||
Stock issued, exercise of stock options (in shares) | 549,189 | 0 | 2,165,370 | ||
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, weighted average remaining contractual term | 2 years 6 months | ||||
Weighted average remaining contractual term | 2 years 6 months | ||||
Proceeds from exercise of stock options | $ 1,429 | $ 0 | $ 0 | ||
Weighted average remaining contractual term of exercisable stock options | 1 year 10 months 24 days | ||||
Weighted average grant date fair value for options granted (in USD per share) | $ 1.15 | $ 1.11 | $ 1.14 | ||
Weighted average grant date fair value for options vested (in USD per share) | $ 1.23 | $ 1.31 | $ 1.52 | ||
Total fair value of stock options vested | $ 2,800 | $ 2,500 | $ 2,800 | ||
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 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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% | 51.00% | 50.00% | |
Volatility (maximum) (as a percent) | 55.00% | 53.00% | 54.00% | |
Weighted average volatility (as a percent) | 54.00% | 52.00% | 52.00% | |
Risk-free interest rate (minimum) (as a percent) | 2.18% | 1.75% | 0.94% | |
Risk-free interest rate (maximum) (as a percent) | 3.00% | 2.10% | 1.78% | |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 5,354,545 | 9,681,304 | 10,662,034 |
Share Capital - Schedule Of Wei
Share Capital - Schedule Of Weighted Average Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Weighted average number of common and exchangeable shares outstanding (in shares) | 390,930,453 | 396,683,593 | 320,851,538 |
Shares issuable pursuant to stock options (in shares) | 4,207,542 | 0 | 0 |
Shares assumed to be purchased from proceeds of stock options (in shares) | (3,832,516) | 0 | 0 |
Shares issuable on conversion of Convertible Notes | 35,814,393 | 0 | 0 |
Weighted average number of diluted common and exchangeable shares outstanding (in shares) | 427,119,872 | 396,683,593 | 320,851,538 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis | ||||
Balance, beginning of year | $ 31,564 | $ 43,357 | ||
Liability incurred | 6,985 | 3,403 | ||
Settlements | (600) | (1,507) | ||
Accretion | 2,772 | 3,825 | ||
Revisions in estimated liability | 2,351 | (4,095) | ||
Liabilities associated with assets sold | 0 | (16,932) | ||
Liabilities assumed in acquisitions | 727 | 3,513 | ||
Balance, end of year | 43,799 | 31,564 | ||
Asset retirement obligation - current | $ 123 | $ 323 | ||
Asset retirement obligation - long-term | 43,676 | 31,241 | ||
Balance, end of year | $ 31,564 | $ 43,357 | $ 43,799 | $ 31,564 |
Asset Retirement Obligation - N
Asset Retirement Obligation - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Fair value of assets legally restricted for purposes of settling asset retirement obligations | $ 2.7 | $ 12.7 |
Revenue (Details)
Revenue (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($)customer | Dec. 31, 2016customer | |
Concentration Risk [Line Items] | |||
Revenue, information used to assess variable consideration constraint, adjustment for quality and transportation | 18.00% | 21.00% | 26.00% |
Number of customers | customer | 2 | 3 | 3 |
Contract with customer, asset, net, current | $ | $ 4.2 | $ 11.1 | |
Revenue from Contract with Customer | Product Concentration Risk | |||
Concentration Risk [Line Items] | |||
Sales to each significant customer as % of oil and gas sales | 99.91734% | 99.00% | 99.00% |
Taxes - Schedule of Income Tax
Taxes - Schedule of Income Tax Expense Reported (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (14,610) | $ (51,215) | $ (23,986) |
Foreign | 166,097 | 88,545 | (626,248) |
INCOME (LOSS) BEFORE INCOME TAXES | $ 151,487 | $ 37,330 | $ (650,234) |
Statutory rate | 21.00% | 35.00% | 35.00% |
Income tax expense (recovery) expected | $ 31,812 | $ 13,066 | $ (227,582) |
Impact of foreign taxes | 34,629 | 12,310 | (9,799) |
Other local taxes | 297 | 1,056 | 1,998 |
Stock-based compensation | 184 | 2,001 | 1,955 |
Change in valuation allowance | (21,953) | 52,269 | 47,675 |
Non-deductible third party royalty in Colombia | 1,813 | 3,194 | 2,550 |
Other permanent differences | $ 2,089 | $ (14,858) | $ (1,466) |
Effective Tax Rate | 32.00% | 185.00% | 28.00% |
Current income tax expense | |||
United States | $ 0 | $ 3,457 | $ 1,818 |
Foreign | 43,903 | 20,865 | 18,304 |
Current income tax expense | 43,903 | 24,322 | 20,122 |
Deferred income tax expense (recovery) | |||
Foreign | 4,968 | 44,716 | (204,791) |
INCOME TAX EXPENSE (RECOVERY) | $ 48,871 | $ 69,038 | (184,669) |
Deferred tax recovery associated with ceiling test impairment loss | $ (201,300) |
Taxes - Narrative (Details)
Taxes - Narrative (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Change in enacted rate, income tax benefit | $ 8.3 |
Taxes - Schedule of Deferred Ta
Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Tax benefit of operating loss carryforwards | $ 51,042 | $ 60,460 |
Tax basis in excess of book basis | 8,854 | 62,768 |
Foreign tax credits and other accruals | 79,820 | 70,157 |
Tax benefit of capital loss carryforwards | 32,737 | 52,575 |
Deferred tax assets before valuation allowance | 172,453 | 245,960 |
Valuation allowance | (127,016) | (188,650) |
Deferred tax assets, net | 45,437 | 57,310 |
Deferred Tax Liabilities | 23,419 | 28,417 |
Net Deferred Tax Assets (Liabilities) | $ 22,018 | $ 28,893 |
Taxes - Summary of Operating Lo
Taxes - Summary of Operating Loss and Capital Loss Carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | ||
Unrecognized tax benefits and other deductions | $ 122.3 | |
Unrecognized tax benefits and other deductions, tax impact | 40.3 | |
Internal Revenue Service (IRS) | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | 22.7 | $ 8.6 |
Canada Revenue Agency | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | 27.1 | 29.6 |
Colombian Tax and Customs National Authority | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | 98.9 | |
Operating loss carryforwards, not subject to limitations | 75.4 | |
Operating loss carryforwards, subject to limitations | 23.5 | |
Capital Loss Carryforward | Canada Revenue Agency | ||
Tax Credit Carryforward [Line Items] | ||
Credit carryforward | 242.4 | 243.4 |
Capital Loss Carryforward | Colombian Tax and Customs National Authority | ||
Tax Credit Carryforward [Line Items] | ||
Credit carryforward | $ 2.2 | $ 1.1 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Trade | $ 123,905 | $ 95,386 |
Royalties | 3,550 | 6,867 |
Employee compensation | 8,195 | 8,908 |
Other | 19,020 | 15,038 |
Total | $ 154,670 | $ 126,199 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Agreements (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $ 29,665 |
2,019 | 10,061 |
2,020 | 9,531 |
2,021 | 5,385 |
2,022 | 4,688 |
2,023 | 0 |
Thereafter | 0 |
Oil transportation services | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 7,053 |
2,019 | 3,842 |
2,020 | 3,211 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Power generation facility | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 15,084 |
2,019 | 3,810 |
2,020 | 3,821 |
2,021 | 3,810 |
2,022 | 3,643 |
2,023 | 0 |
Thereafter | 0 |
Operating leases | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 7,528 |
2,019 | 2,409 |
2,020 | 2,499 |
2,021 | 1,575 |
2,022 | 1,045 |
2,023 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Total rent expense | $ 2,300,000 | $ 3,200,000 | $ 4,000,000 |
Promissory notes as security for letters of credit | 76,700,000 | $ 76,000,000 | |
Pending Litigation Royalty, Transportation and Related Costs | |||
Loss Contingencies [Line Items] | |||
Estimated compensation which would be payable if interpretation is correct | 56,300,000 | ||
Amount accrued for improbable loss | $ 0 |
Financial Instruments, Fair V_3
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, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Investment - current and long-term assets | $ 41,435 | $ 44,202 |
Derivative asset | 0 | 302 |
Fair value of assets | 41,435 | 44,504 |
Derivative liability | 1,017 | 21,151 |
RSU, PSU and DSU liability | 17,683 | 11,430 |
Fair value of liabilities | $ 18,700 | $ 32,581 |
Financial Instruments, Fair V_4
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment gain | $ (786) | $ (111) | $ 0 |
Trading securities loss | 0 | 0 | 3,925 |
Financial instruments loss | 12,296 | 15,929 | 10,279 |
Commodity price derivative loss | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative loss (gain) | 13,972 | 17,327 | 7,370 |
Foreign currency derivative gain | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative loss (gain) | $ (890) | $ (1,287) | $ (1,016) |
Financial Instruments, Fair V_5
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 7,209 | ||
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 | 100.00% | 98.00% | 97.00% |
Reported Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, fair value disclosure | $ 289,300,000 | ||
Value of the Notes | 112,100,000 | ||
Estimate of Fair Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, fair value disclosure | 280,400,000 | ||
Value of the Notes | $ 115,500,000 |
Financial Instruments, Fair V_6
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, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | $ 19,147 | $ 0 |
Acquisition | 0 | 19,091 |
Transfer from long-term (Level 3) to current (Level 1) | (10,522) | 0 |
Unrealized gain on valuation | 846 | 56 |
Unrealized loss on foreign exchange | (760) | 0 |
Closing balance | $ 8,711 | $ 19,147 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 51,040 | $ 12,326 | $ 25,175 | |
Restricted cash and cash equivalents - current | 1,269 | 11,787 | 8,322 | |
Restricted cash and cash equivalents - long-term | 1,999 | 2,565 | 9,770 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents | $ 54,308 | $ 26,678 | $ 43,267 | $ 148,751 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable and other long-term assets | $ 17,674 | $ (2,494) | $ (29) |
Derivatives | 1,017 | 0 | (3,546) |
Inventory | (2,127) | (78) | 5,510 |
Other prepaids | 547 | 2,674 | (615) |
Accounts payable and accrued and other long-term liabilities | 9,034 | 15,617 | (9,691) |
Prepaid tax and taxes receivable and payable | (47,566) | (44,936) | (2,966) |
Net changes in assets and liabilities from operating activities | $ (21,421) | $ (29,217) | $ (11,337) |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for income taxes | $ 46,277 | $ 54,505 | $ 64,067 |
Cash paid for interest | 16,038 | 9,684 | 5,624 |
Non-cash investing activities: | |||
Net liabilities related to property, plant and equipment, end of year | $ 85,204 | $ 76,352 | $ 55,181 |
Supplemental Cash Flow Inform_6
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) - USD ($) $ in Millions | Jun. 20, 2018 | Feb. 27, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Payments to acquire oil and gas property | $ 3.1 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Payments to acquire oil and gas property | $ 104.2 | ||
Surioriente Block | |||
Subsequent Event [Line Items] | |||
Percentage of working interest | 16.00% | ||
Surioriente Block | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Percentage of working interest | 52.00% | ||
Putumayo-8 Block | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Percentage of working interests acquired | 50.00% | ||
Llanos-5 Block | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Percentage of working interests acquired | 100.00% |