Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-34018 | |
Entity Registrant Name | GRAN TIERRA ENERGY INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0479924 | |
Entity Address, Address Line One | 900, 520 - 3 Avenue SW | |
Entity Address, City or Town | Calgary, | |
Entity Address, State or Province | AB | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | T2P 0R3 | |
City Area Code | 403 | |
Local Phone Number | 265-3221 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | GTE | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 380,974,707 | |
Entity Central Index Key | 0001273441 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
OIL AND NATURAL GAS SALES (Note 6) | $ 157,993 | $ 163,446 | $ 310,558 | $ 301,674 |
EXPENSES | ||||
Operating | 33,733 | 26,732 | 68,516 | 48,508 |
Workover | 12,757 | 8,327 | 19,046 | 12,816 |
Transportation | 4,885 | 6,522 | 12,988 | 13,519 |
Depletion, depreciation and accretion | 51,697 | 46,607 | 114,618 | 86,068 |
General and administrative | 8,641 | 12,202 | 18,237 | 23,362 |
Severance | 270 | 1,011 | 942 | 1,011 |
Foreign exchange loss (gain) | 1,175 | 2,216 | (1,259) | 1,274 |
Financial instruments (gain) loss (Note 9) | (18,340) | 4,768 | (15,175) | 11,714 |
Interest expense (Note 4) | 10,564 | 7,375 | 18,502 | 12,870 |
EXPENSES | 105,382 | 115,760 | 236,415 | 211,142 |
INTEREST INCOME | 397 | 610 | 530 | 1,396 |
INCOME BEFORE INCOME TAXES | 53,008 | 48,296 | 74,673 | 91,928 |
INCOME TAX EXPENSE | ||||
Current (Note 7) | (489) | 4,827 | 10,874 | 17,116 |
Deferred (Note 7) | 14,957 | 23,169 | 23,280 | 36,651 |
INCOME TAX EXPENSE | 14,468 | 27,996 | 34,154 | 53,767 |
NET AND COMPREHENSIVE INCOME | $ 38,540 | $ 20,300 | $ 40,519 | $ 38,161 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.11 | $ 0.10 |
NET INCOME PER SHARE - DILUTED (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.10 | $ 0.10 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 5) (in shares) | 379,942,355 | 391,054,204 | 383,491,798 | 391,173,460 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 5) (in shares) | 415,756,748 | 427,455,092 | 419,306,907 | 427,242,014 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents (Note 10) | $ 147,712 | $ 51,040 |
Restricted cash and cash equivalents (Note 10) | 699 | 1,269 |
Accounts receivable | 38,286 | 26,177 |
Investment (Note 9) | 53,308 | 32,724 |
Taxes receivable | 87,297 | 78,259 |
Other assets | 13,268 | 13,056 |
Total Current Assets | 340,570 | 202,525 |
Oil and Gas Properties | ||
Proved | 992,187 | 853,428 |
Unproved | 502,770 | 456,598 |
Total Oil and Gas Properties | 1,494,957 | 1,310,026 |
Other capital assets | 5,931 | 2,751 |
Total Property, Plant and Equipment | 1,500,888 | 1,312,777 |
Other Long-Term Assets | ||
Deferred tax assets | 46,213 | 45,437 |
Investment (Note 9) | 6,181 | 8,711 |
Taxes receivable | 30,814 | 0 |
Other | 4,581 | 4,553 |
Goodwill | 102,581 | 102,581 |
Total Other Long-Term Assets | 190,370 | 161,282 |
Total Assets | 2,031,828 | 1,676,584 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 184,525 | 154,670 |
Derivatives (Note 9) | 413 | 1,017 |
Taxes payable | 59 | 4,149 |
Equity compensation award liability (Note 5) | 4,189 | 9,544 |
Total Current Liabilities | 189,186 | 169,380 |
Long-Term Liabilities | ||
Long-term debt (Notes 4 and 9) | 692,558 | 399,415 |
Deferred tax liabilities | 47,053 | 23,419 |
Asset retirement obligation | 43,974 | 43,676 |
Equity compensation award liability (Note 5) | 4,397 | 8,139 |
Other | 7,728 | 2,805 |
Total Long-Term Liabilities | 795,710 | 477,454 |
Contingencies (Note 8) | ||
Shareholders’ Equity | ||
Common Stock (Note 5) (380,974,707 and 387,079,027 shares issued; 376,636,307 and 387,079,027 shares outstanding of Common Stock par value $0.001 per share, as at June 30, 2019, and December 31, 2018, respectively) | 10,285 | 10,290 |
Additional paid in capital | 1,295,106 | 1,318,048 |
Deficit | (258,459) | (298,588) |
Total Shareholders’ Equity | 1,046,932 | 1,029,750 |
Total Liabilities and Shareholders’ Equity | $ 2,031,828 | $ 1,676,584 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, shares issued (in shares) | 380,974,707 | 387,079,027 |
Common Stock, shares outstanding (in shares) | 376,636,307 | 387,079,027 |
Common Stock and exchangeable shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities | ||
Net income | $ 40,519 | $ 38,161 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion, depreciation and accretion | 114,618 | 86,068 |
Deferred tax expense | 23,280 | 36,651 |
Stock-based compensation (Note 5) | 1,100 | 10,202 |
Amortization of debt issuance costs (Note 4) | 1,785 | 1,513 |
Unrealized foreign exchange (gain) loss | (1,109) | 831 |
Financial instruments (gain) loss (Note 9) | (15,175) | 11,714 |
Cash settlement of financial instruments | (1,345) | (15,483) |
Cash settlement of asset retirement obligation | (510) | (369) |
Non-cash lease expenses | 894 | 0 |
Lease payments | (848) | 0 |
Cash settlement of restricted share units | 0 | (360) |
Net change in assets and liabilities from operating activities (Note 10) | (70,194) | (37,994) |
Net cash provided by operating activities | 93,015 | 130,934 |
Investing Activities | ||
Additions to property, plant and equipment | (194,084) | (157,088) |
Property acquisitions, net of cash acquired (Note 3) | (77,772) | (3,100) |
Changes in non-cash investing working capital | 11,116 | (6,142) |
Net cash used in investing activities | (260,740) | (166,330) |
Financing Activities | ||
Proceeds from bank debt, net of issuance costs | 163,000 | 4,988 |
Repayment of bank debt | (163,000) | (153,000) |
Repurchase of shares of Common Stock (Note 5) | (23,951) | (1,208) |
Proceeds from exercise of stock options | 0 | 845 |
Proceeds from issuance of Senior Notes, net of issuance costs | 289,117 | 288,087 |
Net cash provided by financing activities | 265,166 | 139,712 |
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents | (1,073) | (69) |
Net increase in cash, cash equivalents and restricted cash and cash equivalents | 96,368 | 104,247 |
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period (Note 10) | 54,308 | 26,678 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period (Note 10) | $ 150,676 | $ 130,925 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Share Capital | Additional Paid in Capital | Deficit |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to leases (Note 2) | $ 0 | |||
Balance, beginning of period at Dec. 31, 2017 | $ 10,295 | $ 1,327,244 | (401,204) | |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of Common Stock | 0 | |||
Exercise of stock options | 845 | |||
Treasury Stock, at cost (Note 5) | 0 | |||
Stock-based compensation (Note 5) | 1,156 | |||
Repurchase and cancellation of Common Stock (Note 5) | 0 | (1,208) | ||
Net income | $ 38,161 | 38,161 | ||
Balance, end of period at Jun. 30, 2018 | 975,289 | 10,295 | 1,328,037 | (363,043) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to leases (Note 2) | 0 | |||
Balance, beginning of period at Mar. 31, 2018 | 10,295 | 1,326,687 | (383,343) | |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of Common Stock | 0 | |||
Exercise of stock options | 771 | |||
Treasury Stock, at cost (Note 5) | 0 | |||
Stock-based compensation (Note 5) | 593 | |||
Repurchase and cancellation of Common Stock (Note 5) | 0 | (14) | ||
Net income | 20,300 | 20,300 | ||
Balance, end of period at Jun. 30, 2018 | 975,289 | 10,295 | 1,328,037 | (363,043) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to leases (Note 2) | (390) | |||
Balance, beginning of period at Dec. 31, 2018 | 10,290 | 1,318,048 | (298,588) | |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of Common Stock | 0 | |||
Exercise of stock options | 0 | |||
Treasury Stock, at cost (Note 5) | (9,267) | |||
Stock-based compensation (Note 5) | 1,003 | |||
Repurchase and cancellation of Common Stock (Note 5) | (5) | (14,678) | ||
Net income | 40,519 | 40,519 | ||
Balance, end of period at Jun. 30, 2019 | 1,046,932 | 10,285 | 1,295,106 | (258,459) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to leases (Note 2) | 0 | |||
Balance, beginning of period at Mar. 31, 2019 | 10,287 | 1,312,371 | (296,999) | |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of Common Stock | 0 | |||
Exercise of stock options | 0 | |||
Treasury Stock, at cost (Note 5) | (9,267) | |||
Stock-based compensation (Note 5) | 529 | |||
Repurchase and cancellation of Common Stock (Note 5) | (2) | (8,527) | ||
Net income | 38,540 | 38,540 | ||
Balance, end of period at Jun. 30, 2019 | $ 1,046,932 | $ 10,285 | $ 1,295,106 | $ (258,459) |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies These interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The information furnished herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of results for the interim periods. The note disclosure requirements of annual consolidated financial statements provide additional disclosures to that required for interim unaudited condensed consolidated financial statements. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended December 31, 2018 , included in the Company’s 2018 Annual Report on Form 10-K. The Company’s significant accounting policies are described in Note 2 of the consolidated financial statements which are included in the Company’s 2018 Annual Report on Form 10-K and are the same policies followed in these interim unaudited condensed consolidated financial statements, except as noted below. The Company has evaluated all subsequent events through to the date these interim unaudited condensed consolidated financial statements were issued. Recently Adopted Accounting Pronouncements Leases The Company adopted Accounting Standard Codification ("ASC") 842 Leases with a date of initial application on January 1, 2019 in accordance with the modified retrospective transition approach using the practical expedients available for land easements and short-term leases. The Company did not elect the "suite" of practical expedients or use the hindsight expedient in its adoption. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At inception of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company has applied judgment to determine the lease term for contracts which include renewal or termination options. The assessment of whether the Company is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. All leases identified relate to office leases. The transition resulted in the recognition of a right-of-use asset presented in other capital assets of $3.8 million at January 1, 2019, the recognition of lease liabilities of $4.2 million and a $0.4 million impact on retained earnings. When measuring the lease liabilities, the Company's incremental borrowing rate was used. At January 1, 2019 the rates applied ranged between 5.6% and 9.1% |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment On February 20, 2019 , the Company acquired 36.2% working interest ("WI") in the Suroriente Block and a 100% WI of the Llanos-5 Block for cash consideration of $79.1 million and a promissory note of $1.5 million included in current accounts payable on the Company's condensed consolidated balance sheet. The cost of the assets was allocated to proved properties using relative fair values. The entire consideration of $0.3 million for Llanos-5 was allocated to unproved properties. (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 79,100 Promissory note 1,500 $ 80,600 Allocation of Consideration Paid: Oil and gas properties Proved $ 52,496 Unproved 44,739 97,235 Net working capital (including cash acquired of $5.3 million) (16,635 ) $ 80,600 |
Debt and Debt Issuance Costs
Debt and Debt Issuance Costs | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company's debt at June 30, 2019 and December 31, 2018 was as follows: (Thousands of U.S. Dollars) As at June 30, 2019 As at December 31, 2018 6.25% Senior notes $ 300,000 $ 300,000 7.75% Senior notes 300,000 — Convertible notes 115,000 115,000 Unamortized debt issuance costs (24,683 ) (15,585 ) Long-term debt 690,317 399,415 Long-term lease obligation (1) 2,241 — $ 692,558 $ 399,415 (1) The current portion of the lease obligation has been included in accounts payable and totaled $2.2 million as at June 30, 2019 ( December 31, 2018 - nil ). Senior Notes On May 20, 2019 , the Company, issued $300 million of 7.75% Senior Notes due 2027 (the " 7.75% Senior Notes"). The 7.75% Senior Notes are fully and unconditionally guaranteed by certain subsidiaries of the Company that guarantee its revolving credit facility. Net proceeds from the issue of the 7.75% Senior Notes were $289 million , after deducting the initial purchasers' discounts and commission and the offering expenses payable by the Company. The 7.75% Senior Notes bear interest at a rate of 7.75% per year, payable semi-annually in arrears on May 23 and November 23 of each year, beginning on November 23, 2019 . The Senior Notes will mature on May 23, 2027 , unless earlier redeemed or repurchased. Before May 23, 2023 , the Company may, at its option, redeem all or a portion of the 7.75% 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 7.75% Senior Notes plus accrued and unpaid interest applicable to the date of the redemption at the following redemption prices: 2023 - 103.875% ; 2024 - 101.938% ; 2025 and thereafter - 100% . Convertible Notes On July 17, 2019, pursuant to a previously announced offer to purchase for cash all outstanding Convertible Notes, the Company purchased and canceled $114,997,000 aggregate principal amount of Convertible Notes at a purchase price of $1,075 in cash per $1,000 principal amount of Convertible Notes plus $1.6 million of accrued and unpaid interest outstanding on such Convertible Notes up to, but not excluding the date of purchase. After giving effect to the purchase and cancellation of the Convertible Notes, $3,000 aggregate principal amount of Convertible Notes remain outstanding. Interest Expense The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 2019 2018 Contractual interest and other financing expenses $ 9,617 $ 6,532 $ 16,717 $ 11,357 Amortization of debt issuance costs 947 843 1,785 1,513 $ 10,564 $ 7,375 $ 18,502 $ 12,870 |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share Capital | Share Capital Shares of Common Stock Balance, December 31, 2018 387,079,027 Shares repurchased and canceled (6,104,320 ) Balance, June 30, 2019 380,974,707 In Q1 2019, the Company implemented a share repurchase program (the “2019 Program”) through the facilities of the Toronto Stock Exchange ("TSX") and eligible alternative trading platforms in Canada. Under the 2019 Program, the Company is able to purchase at prevailing market prices up to 19,353,951 shares of Common Stock, representing approximately 5.00% of the issued and outstanding shares of Common Stock as of March 1, 2019 . The 2019 Program will expire on March 12, 2020 , or earlier if the 5.00% share maximum is reached. During the three and six months ended June 30, 2019 , the Company repurchased 7,856,425 and 10,442,720 shares at a weighted average prices of $2.27 and $2.29 , respectively. Of the shares repurchased, 743,520 shares at a weighted average price of $2.34 were repurchased under 2018 share repurchase program and 4,338,400 shares at a weighted average price of $2.14 have not been canceled by the Company and were designated as treasury stock as at June 30, 2019 . Equity Compensation Awards The following table provides information about p erformance stock units (“PSUs”), deferred share units (“DSUs”), and stock option activity for the six months ended June 30, 2019 : PSUs DSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2018 9,004,661 684,893 9,034,412 3.18 Granted 5,039,365 189,188 2,315,006 2.29 Exercised (2,725,877 ) — — — Forfeited (574,010 ) — (885,956 ) 3.89 Expired — — (89,940 ) 4.94 Balance, June 30, 2019 10,744,139 874,081 10,373,522 2.90 For the three and six months ended June 30, 2019 , stock-based compensation recovery and expense was $0.6 million and $1.1 million , respectively (three and six months ended June 30, 2018 - $6.9 million and $10.2 million , respectively, of expense). At June 30, 2019 , there was $12.3 million ( December 31, 2018 - $9.2 million ) of unrecognized compensation cost related to unvested PSUs and stock options which is expected to be recognized over a weighted average period of 1.7 years. During the six months ended June 30, 2019 , the Company paid out $10.2 million ( six months ended June 30, 2018 - nil ) for performance share units which were vested December 31, 2018 . Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of Common Stock and exchangeable shares issued and outstanding during each period. Diluted net income per share is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock awards were vested at the end of the applicable period plus potentially issuable shares on conversion of the convertible notes. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. Weighted Average Shares Outstanding Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted average number of common and exchangeable shares outstanding 379,942,355 391,054,204 383,491,798 391,173,460 Shares issuable pursuant to stock options — 4,894,633 126,325 2,420,509 Shares assumed to be purchased from proceeds of stock options — (4,308,138 ) (125,609 ) (2,166,348 ) Shares issuable pursuant to convertible notes 35,814,393 35,814,393 35,814,393 35,814,393 Weighted average number of diluted common and exchangeable shares outstanding 415,756,748 427,455,092 419,306,907 427,242,014 For the three and six months ended June 30, 2019 , 10,373,522 and 9,945,406 options, respectively (three and six months ended June 30, 2018 - 5,240,018 and 7,385,714 , respectively), on a weighted average basis, were excluded from the diluted income per share calculation as the options were anti-dilutive. Subsequent to period end, the Convertible Notes were purchased and subsequently canceled. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company's revenues are 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 or Castilla crude differentials, quality, and transportation discounts each month. For the three and six months ended June 30, 2019 , 100% (three and six months ended June 30, 2018 - 100% ) of the Company's revenue resulted from oil sales. During the three and six months ended June 30, 2019 , quality and transportation discounts were 13% and 15% , respectively, of the average ICE Brent price (three and six months ended June 30, 2018 - 14% and 15% , respectively). During the three and six months ended June 30, 2019 , the Company's production was sold primarily to three major customers in Colombia (three and six months ended June 30, 2018 - three ). As at June 30, 2019 , accounts receivable included $3.0 million of accrued sales revenue related to June 2019 production ( December 31, 2018 - $4.2 million |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The Company's effective tax rate was 46% for the six months ended June 30, 2019 , compared to 58% in the comparative period of 2018 . Current income tax expense was lower in the six months ended June 30, 2019 , compared with the corresponding period of 2018 , primarily as a result of lower Colombian income and higher tax depreciation in Colombia. The deferred income tax expense of $23.3 million was lower in the six months ended June 30, 2019 , compared to the corresponding period of 2018 primarily due to lower excess tax depreciation compared with accounting depreciation in Colombia, a reduction in the Colombian tax rate and a reduction to the valuation allowance in Colombia. For the six months ended June 30, 2019 , the difference between the effective tax rate of 46% and the 33% Colombian tax rate was primarily due to foreign currency translation adjustments and an increase in the valuation allowance. For the comparative period in 2018 , the 58% effective tax rate differed from the Colombian tax rate of 37% |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings The Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) ("ANH") and Gran Tierra are engaged in ongoing discussions regarding the interpretation of whether certain transportation and related costs are eligible to be deducted in the calculation of an additional royalty (the "HPR royalty"). Based on the Company's understanding of the ANH's position, the estimated compensation, which would be payable if the ANH’s interpretation is correct, could be up to $55.6 million as at June 30, 2019 ( December 31, 2018 - $56.3 million ). At this time no amount has been accrued in the interim unaudited condensed consolidated financial statements as Gran Tierra does not consider it probable that a loss will be incurred. In addition to the above, the Company has a number of other lawsuits and claims pending. Although the outcome of these other lawsuits and disputes cannot be predicted with certainty, the Company believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs associated with these lawsuits and claims as they are incurred or become probable and determinable. Letters of credit and other credit support At June 30, 2019 , the Company had provided letters of credit and other credit support totaling $122.5 million ( December 31, 2018 - $76.7 million ) as security relating to work commitment guarantees in Colombia and Ecuador contained in exploration contracts and other capital or operating requirements. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Financial Instruments At June 30, 2019 , the Company’s financial instruments recognized in the balance sheet consisted of: cash and cash equivalents; restricted cash and cash equivalents; accounts receivable; investment; accounts payable and accrued liabilities, derivatives, long-term debt, equity compensation award liability and other long-term liabilities. Fair Value Measurement The fair value of investment, derivatives and PSU liability is remeasured at the estimated fair value at the end of each reporting period. The fair value of the short-term portion of the Company's investment in PetroTal Corp. ("PetroTal"), which was received on the sale of the Company's Peru business unit, was estimated using quoted prices at June 30, 2019 , and the foreign exchange rate at that date. PetroTal is a publicly-traded energy company incorporated and domiciled in Canada engaged in exploration, appraisal and development of crude oil and natural gas in Peru, South America. PetroTal's shares are listed on the Toronto Stock Exchange Venture under the trading symbol 'TAL' and on the London Stock Exchange under the trading symbol 'PTAL'. Gran Tierra directly and indirectly holds approximately 246 million common shares representing approximately 37% of PetroTal's issued and outstanding common shares. Gran Tierra has the right to nominate two directors to the board of PetroTal. 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 inputs such as quoted market prices in an active market, and PSU performance factor. The fair value of investment, derivatives and equity compensation award liability (PSU and DSU) at June 30, 2019 , and December 31, 2018 , was as follows: (Thousands of U.S. Dollars) As at June 30, 2019 As at December 31, 2018 Investment - current and long-term $ 59,489 $ 41,435 Derivative asset 857 — 60,346 41,435 Derivative liability $ 413 $ 1,017 PSU and DSU liability 8,586 17,683 $ 8,999 $ 18,700 The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 2019 2018 Commodity price derivative (gain) loss $ (706 ) $ 14,461 $ 488 $ 19,455 Foreign currency derivatives loss (gain) 55 1,945 55 (2,024 ) Investment gain (17,689 ) (11,638 ) (15,718 ) (5,717 ) Financial instruments (gain) loss $ (18,340 ) $ 4,768 $ (15,175 ) $ 11,714 Investment gain for the three and six months ended June 30, 2019 , was related to the fair value gain on the PetroTal shares Gran Tierra received in connection with the sale of its Peru business unit in December 2017. For the three and six months ended June 30, 2019 and 2018 , this investment gain was unrealized. Financial instruments not recorded at fair value include the Company's 6.25% Senior Notes due 2025 (the " 6.25% Senior Notes") and 7.75% Senior Notes and the Convertible Notes. At June 30, 2019 , the carrying amounts of the 6.25% Senior Notes, the 7.75% Senior Notes and the Convertible Notes were $290.0 million , $289.2 million and $112.7 million , respectively, which represented the aggregate principal amount less unamortized debt issuance costs, and the fair values were $280.5 million , $294.8 million and $123.6 million , respectively. The fair value of long-term restricted cash and cash equivalents and the revolving credit facility approximated their carrying value because interest rates are variable and reflective of market rates. The fair values of other financial instruments approximate their carrying amounts due to the short-term maturity of these instruments. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets and liabilities and have the highest priority. Level 2 and 3 inputs are based on significant other observable inputs and significant unobservable inputs, respectively, and have lower priorities. The Company uses appropriate valuation techniques based on the available inputs to measure the fair values of assets and liabilities. At June 30, 2019 , the fair value of the current portion of the investment and DSU liability was determined using Level 1 inputs, the fair value of derivatives and PSUs was determined using Level 2 inputs and the fair value of the long-term portion of the investment restricted by escrow conditions was determined using Level 3 inputs. The table below presents the fair value of the long-term portion of the investment: Six Months Ended Year Ended (Thousands of U.S. Dollars) June 30, 2019 December 31, 2018 Opening balance, investment - long-term $ 8,711 $ 19,147 Transfer from long-term (Level 3) to current (Level 1) (4,352 ) (10,522 ) Unrealized valuation gain 1,394 846 Unrealized foreign exchange gain (loss) 428 (760 ) Closing balance, investment - long-term $ 6,181 $ 8,711 With all other variables held constant, a $0.01 change in the CAD price of PetroTal shares would result in a $1.9 million change in the total investment in PetroTal as at June 30, 2019 . The Company uses available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s Senior Notes, Convertible Notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The disclosure above regarding the fair value of the Convertible Notes was determined using Level 2 inputs based on the indicative pricing published by certain third-party services or trading levels of the Convertible Notes, which are not listed on any securities exchange or quoted on an inter-dealer automated quotation system. The disclosure in the paragraph above regarding the fair value of cash and restricted cash and cash equivalents, revolving credit facility and Senior Notes was based on Level 1 inputs. The Company’s non-recurring fair value measurements include asset retirement obligations. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. The significant level 3 inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit-adjusted risk-free interest rate, inflation rates and estimated dates of abandonment. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. Commodity Price Derivatives The Company utilizes commodity price derivatives to manage the variability in cash flows associated with the forecasted sale of its oil production, reduce commodity price risk and provide a base level of cash flow in order to assure it can execute at least a portion of its capital spending. At June 30, 2019 , the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Purchased Put ($/bbl, Weighted Average) Sold Call ($/bbl, Weighted Average) Premium ($/bbl, Weighted Average) Purchased Puts: July 1, to December 31, 2019 5,000 ICE Brent $ 60.00 n/a $ 2.39 Collars: July 1, to December 31, 2019 5,000 ICE Brent $ 60.00 $ 71.53 n/a Foreign Currency Derivatives The Company utilizes foreign currency derivatives to manage the variability in cash flows associated with the Company's forecasted Colombian peso ("COP") denominated expenses. Subsequent to June 30, 2019 , the Company entered into foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) (1) Reference Floor Price Cap Price (COP, Weighted Average) Collars: July 1, to December 31, 2019 135,000 42,109 COP 3,019 3,446 (1) At June 30, 2019 foreign exchange rate. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at June 30, As at December 31, 2019 2018 2018 2017 Cash and cash equivalents $ 147,712 $ 125,807 $ 51,040 $ 12,326 Restricted cash and cash equivalents - current 699 2,836 1,269 11,787 Restricted cash and cash equivalents - long-term (included in other long-term assets) 2,265 2,282 1,999 2,565 $ 150,676 $ 130,925 $ 54,308 $ 26,678 Net changes in assets and liabilities from operating activities were as follows: Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 Accounts receivable and other long-term assets $ (7,465 ) $ (11,723 ) Derivatives (659 ) 3,431 Inventory (1,387 ) (3,054 ) Prepaids 870 (301 ) Accounts payable and accrued and other long-term liabilities (18,841 ) 971 Taxes receivable and payable (42,712 ) (27,318 ) Net changes in assets and liabilities from operating activities $ (70,194 ) $ (37,994 ) The following table provides additional supplemental cash flow disclosures: Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 Cash paid for income taxes $ 29,339 $ 21,032 Cash paid for interest $ 13,545 $ 3,788 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 96,320 $ 62,009 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements/Recently Issued but Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases The Company adopted Accounting Standard Codification ("ASC") 842 Leases with a date of initial application on January 1, 2019 in accordance with the modified retrospective transition approach using the practical expedients available for land easements and short-term leases. The Company did not elect the "suite" of practical expedients or use the hindsight expedient in its adoption. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At inception of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company has applied judgment to determine the lease term for contracts which include renewal or termination options. The assessment of whether the Company is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. All leases identified relate to office leases. The transition resulted in the recognition of a right-of-use asset presented in other capital assets of $3.8 million at January 1, 2019, the recognition of lease liabilities of $4.2 million and a $0.4 million impact on retained earnings. When measuring the lease liabilities, the Company's incremental borrowing rate was used. At January 1, 2019 the rates applied ranged between 5.6% and 9.1% |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Asset Acquisition | The entire consideration of $0.3 million for Llanos-5 was allocated to unproved properties. (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 79,100 Promissory note 1,500 $ 80,600 Allocation of Consideration Paid: Oil and gas properties Proved $ 52,496 Unproved 44,739 97,235 Net working capital (including cash acquired of $5.3 million) (16,635 ) $ 80,600 |
Debt and Debt Issuance Costs (T
Debt and Debt Issuance Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt at June 30, 2019 and December 31, 2018 was as follows: (Thousands of U.S. Dollars) As at June 30, 2019 As at December 31, 2018 6.25% Senior notes $ 300,000 $ 300,000 7.75% Senior notes 300,000 — Convertible notes 115,000 115,000 Unamortized debt issuance costs (24,683 ) (15,585 ) Long-term debt 690,317 399,415 Long-term lease obligation (1) 2,241 — $ 692,558 $ 399,415 (1) The current portion of the lease obligation has been included in accounts payable and totaled $2.2 million as at June 30, 2019 ( December 31, 2018 - nil ). |
Schedule of Interest Expense Recognized | The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 2019 2018 Contractual interest and other financing expenses $ 9,617 $ 6,532 $ 16,717 $ 11,357 Amortization of debt issuance costs 947 843 1,785 1,513 $ 10,564 $ 7,375 $ 18,502 $ 12,870 |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Common Stock | Shares of Common Stock Balance, December 31, 2018 387,079,027 Shares repurchased and canceled (6,104,320 ) Balance, June 30, 2019 380,974,707 |
Schedule of PSU, DSU, RSU and Stock Option Activity | The following table provides information about p erformance stock units (“PSUs”), deferred share units (“DSUs”), and stock option activity for the six months ended June 30, 2019 : PSUs DSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2018 9,004,661 684,893 9,034,412 3.18 Granted 5,039,365 189,188 2,315,006 2.29 Exercised (2,725,877 ) — — — Forfeited (574,010 ) — (885,956 ) 3.89 Expired — — (89,940 ) 4.94 Balance, June 30, 2019 10,744,139 874,081 10,373,522 2.90 |
Schedule of Weighted Average Shares Outstanding | Weighted Average Shares Outstanding Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted average number of common and exchangeable shares outstanding 379,942,355 391,054,204 383,491,798 391,173,460 Shares issuable pursuant to stock options — 4,894,633 126,325 2,420,509 Shares assumed to be purchased from proceeds of stock options — (4,308,138 ) (125,609 ) (2,166,348 ) Shares issuable pursuant to convertible notes 35,814,393 35,814,393 35,814,393 35,814,393 Weighted average number of diluted common and exchangeable shares outstanding 415,756,748 427,455,092 419,306,907 427,242,014 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities | The fair value of investment, derivatives and equity compensation award liability (PSU and DSU) at June 30, 2019 , and December 31, 2018 , was as follows: (Thousands of U.S. Dollars) As at June 30, 2019 As at December 31, 2018 Investment - current and long-term $ 59,489 $ 41,435 Derivative asset 857 — 60,346 41,435 Derivative liability $ 413 $ 1,017 PSU and DSU liability 8,586 17,683 $ 8,999 $ 18,700 |
Schedule of Gains or Losses on Financial Instruments Recognized | The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 2019 2018 Commodity price derivative (gain) loss $ (706 ) $ 14,461 $ 488 $ 19,455 Foreign currency derivatives loss (gain) 55 1,945 55 (2,024 ) Investment gain (17,689 ) (11,638 ) (15,718 ) (5,717 ) Financial instruments (gain) loss $ (18,340 ) $ 4,768 $ (15,175 ) $ 11,714 |
Schedule of Fair Value of Long-term Investments | The table below presents the fair value of the long-term portion of the investment: Six Months Ended Year Ended (Thousands of U.S. Dollars) June 30, 2019 December 31, 2018 Opening balance, investment - long-term $ 8,711 $ 19,147 Transfer from long-term (Level 3) to current (Level 1) (4,352 ) (10,522 ) Unrealized valuation gain 1,394 846 Unrealized foreign exchange gain (loss) 428 (760 ) Closing balance, investment - long-term $ 6,181 $ 8,711 |
Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts | At June 30, 2019 , the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Purchased Put ($/bbl, Weighted Average) Sold Call ($/bbl, Weighted Average) Premium ($/bbl, Weighted Average) Purchased Puts: July 1, to December 31, 2019 5,000 ICE Brent $ 60.00 n/a $ 2.39 Collars: July 1, to December 31, 2019 5,000 ICE Brent $ 60.00 $ 71.53 n/a |
Schedule of Outstanding Foreign Currency Derivative Positions | Subsequent to June 30, 2019 , the Company entered into foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) (1) Reference Floor Price Cap Price (COP, Weighted Average) Collars: July 1, to December 31, 2019 135,000 42,109 COP 3,019 3,446 (1) At June 30, 2019 foreign exchange rate. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at June 30, As at December 31, 2019 2018 2018 2017 Cash and cash equivalents $ 147,712 $ 125,807 $ 51,040 $ 12,326 Restricted cash and cash equivalents - current 699 2,836 1,269 11,787 Restricted cash and cash equivalents - long-term (included in other long-term assets) 2,265 2,282 1,999 2,565 $ 150,676 $ 130,925 $ 54,308 $ 26,678 |
Schedule of Net Changes in Assets and Liabilities | Net changes in assets and liabilities from operating activities were as follows: Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 Accounts receivable and other long-term assets $ (7,465 ) $ (11,723 ) Derivatives (659 ) 3,431 Inventory (1,387 ) (3,054 ) Prepaids 870 (301 ) Accounts payable and accrued and other long-term liabilities (18,841 ) 971 Taxes receivable and payable (42,712 ) (27,318 ) Net changes in assets and liabilities from operating activities $ (70,194 ) $ (37,994 ) |
Schedule of Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures: Six Months Ended June 30, (Thousands of U.S. Dollars) 2019 2018 Cash paid for income taxes $ 29,339 $ 21,032 Cash paid for interest $ 13,545 $ 3,788 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 96,320 $ 62,009 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Lessee, Lease, Description [Line Items] | |||||
Right-of-use asset | $ 3,800 | ||||
Lease liabilities | $ (4,200) | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Weighted average discount rate, percent | 5.60% | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Weighted average discount rate, percent | 9.10% | ||||
Deficit | |||||
Lessee, Lease, Description [Line Items] | |||||
Cumulative adjustment for accounting change related to leases (Note 2) | $ 0 | $ 400 | $ (390) | $ 0 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) $ in Thousands | Feb. 20, 2019USD ($) |
Property, Plant and Equipment [Line Items] | |
Cash | $ 79,100 |
Promissory note | $ 1,500 |
Suroriente block | |
Property, Plant and Equipment [Line Items] | |
Business acquisition, percentage of working interests acquired | 36.20% |
Llanos-5 Block | |
Property, Plant and Equipment [Line Items] | |
Business acquisition, percentage of working interests acquired | 100.00% |
Payments to acquire oil and gas property | $ 300 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) $ in Thousands | Feb. 20, 2019USD ($) |
Cost of asset acquisition: | |
Cash | $ 79,100 |
Promissory note | 1,500 |
Consideration transferred | 80,600 |
Oil and gas properties | 97,235 |
Net working capital (including cash acquired of $5.3 million) | (16,635) |
Net assets acquired | 80,600 |
Cash acquired | 5,300 |
Proved | |
Cost of asset acquisition: | |
Oil and gas properties | 52,496 |
Unproved | |
Cost of asset acquisition: | |
Oil and gas properties | $ 44,739 |
Debt and Debt Issuance Costs -
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) | Jun. 30, 2019 | May 20, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (24,683,000) | $ (15,585,000) | |
Long-term debt | 690,317,000 | 399,415,000 | |
Long-term debt excluding current maturity | $ 692,558,000 | 399,415,000 | |
Senior notes | 6.25% Senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.25% | ||
Convertible senior notes and revolving credit facility | $ 300,000,000 | 300,000,000 | |
Senior notes | 7.75% Senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.75% | 7.75% | |
Convertible senior notes and revolving credit facility | $ 300,000,000 | $ 300,000,000 | 0 |
Convertible notes | |||
Debt Instrument [Line Items] | |||
Convertible senior notes and revolving credit facility | 115,000,000 | 115,000,000 | |
Lease obligations | |||
Debt Instrument [Line Items] | |||
Long-term lease obligation | 2,241,000 | 0 | |
Lease obligations | Accounts payable | |||
Debt Instrument [Line Items] | |||
Current portion of lease obligation | $ 2,200,000 | $ 0 |
Debt and Debt Issuance Costs _2
Debt and Debt Issuance Costs - Narrative (Details) - USD ($) | Jul. 17, 2019 | May 23, 2019 | May 20, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||||||
Proceeds from issuance of Senior Notes, net of issuance costs | $ 289,117,000 | $ 288,087,000 | ||||
Debt outstanding | 690,317,000 | $ 399,415,000 | ||||
Senior notes | 7.75% Senior notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term debt, gross | $ 300,000,000 | $ 300,000,000 | 0 | |||
Debt instrument, interest rate, stated percentage | 7.75% | 7.75% | ||||
Proceeds from issuance of Senior Notes, net of issuance costs | $ 289,000,000 | |||||
Debt instrument, redemption price, percentage | 100.00% | |||||
Senior notes | 7.75% Senior notes | 2023 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, redemption price, percentage | 103.875% | |||||
Senior notes | 7.75% Senior notes | 2024 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, redemption price, percentage | 101.938% | |||||
Senior notes | 7.75% Senior notes | 2025 and thereafter | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, redemption price, percentage | 100.00% | |||||
Convertible notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term debt, gross | $ 115,000,000 | $ 115,000,000 | ||||
Convertible notes | Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Repurchase and cancellation of common stock | $ 114,997,000 | |||||
Interest repaid | 1,600,000 | |||||
Debt outstanding | $ 3,000 | |||||
Convertible notes | 5.00% Convertible Notes | Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, redemption price, percentage | 107.50% |
Debt and Debt Issuance Costs _3
Debt and Debt Issuance Costs - Schedule of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Disclosure [Abstract] | ||||
Contractual interest and other financing expenses | $ 9,617 | $ 6,532 | $ 16,717 | $ 11,357 |
Amortization of debt issuance costs | 947 | 843 | 1,785 | 1,513 |
Total interest expense recognized | $ 10,564 | $ 7,375 | $ 18,502 | $ 12,870 |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) | 6 Months Ended |
Jun. 30, 2019shares | |
Increase (Decrease) in Common Stock | |
Beginning balance (in shares) | 387,079,027 |
Ending balance (in shares) | 376,636,307 |
Shares of Common Stock | |
Increase (Decrease) in Common Stock | |
Beginning balance (in shares) | 387,079,027 |
Shares repurchased and canceled (in shares) | (6,104,320) |
Ending balance (in shares) | 380,974,707 |
Share Capital - Additional Info
Share Capital - Additional Information (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | |
The 2019 Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized representing issued and outstanding shares of Common Stock (as a percent) | 5.00% | ||
Stock repurchased during period (in shares) | 7,856,425 | 10,442,720 | |
Stock repurchased during period, weighted average price (in dollars per shares) | $ 2.27 | $ 2.29 | |
Shares designated as treasury stock (in shares) | (4,338,400) | ||
Average cost (in dollars per share) | $ 2.14 | ||
The 2019 Program | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to purchase (in shares) | 19,353,951 | ||
The 2018 Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchased during period (in shares) | 743,520 | ||
Stock repurchased during period, weighted average price (in dollars per shares) | $ 2.34 |
Share Capital - Schedule of PSU
Share Capital - Schedule of PSU, DSU, RSU and Stock Option Activity (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Outstanding Stock Options | |
Beginning Balance (in shares) | 9,034,412 |
Granted (in shares) | 2,315,006 |
Exercised (in shares) | 0 |
Forfeited (in shares) | (885,956) |
Expired (in shares) | (89,940) |
Ending Balance (in shares) | 10,373,522 |
Weighted Average Exercise Price/Stock Option ($) | |
Beginning balance (in dollars per share) | $ / shares | $ 3.18 |
Granted (in dollars per share) | $ / shares | 2.29 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 3.89 |
Expired (in dollars per share) | $ / shares | 4.94 |
Ending balance (in dollars per share) | $ / shares | $ 2.90 |
PSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 9,004,661 |
Granted (in shares) | 5,039,365 |
Exercised (in shares) | (2,725,877) |
Forfeited (in shares) | (574,010) |
Expired (in shares) | 0 |
Ending Balance (in shares) | 10,744,139 |
DSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 684,893 |
Granted (in shares) | 189,188 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Ending Balance (in shares) | 874,081 |
Share Capital - Equity Compensa
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 1,100,000 | $ 10,202,000 | |||
Unrecognized compensation cost | $ 12,300,000 | $ 12,300,000 | $ 9,200,000 | ||
Weighted average period for recognition | 1 year 8 months 12 days | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments for units vested in period | $ 10,200,000 | 0 | |||
General and administrative (G&A) expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ (600,000) | $ 6,900,000 | $ 1,100,000 | $ 10,200,000 |
Share Capital - Schedule of Wei
Share Capital - Schedule of Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Weighted average number of common and exchangeable shares outstanding (in shares) | 379,942,355 | 391,054,204 | 383,491,798 | 391,173,460 |
Shares issuable pursuant to stock options (in shares) | 0 | 4,894,633 | 126,325 | 2,420,509 |
Shares assumed to be purchased from proceeds of stock options (in shares) | 0 | (4,308,138) | (125,609) | (2,166,348) |
Shares issuable pursuant to convertible notes (in shares) | 35,814,393 | 35,814,393 | 35,814,393 | 35,814,393 |
Weighted average number of diluted common and exchangeable shares outstanding (in shares) | 415,756,748 | 427,455,092 | 419,306,907 | 427,242,014 |
Share Capital - Weighted Averag
Share Capital - Weighted Average Shares Outstanding (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options excluded from diluted income (loss) per share calculation (in shares) | 10,373,522 | 5,240,018 | 9,945,406 | 7,385,714 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||||
Variable adjustment for transportation, location, quality, and other elements, percentage | 13.00% | 14.00% | 15.00% | 15.00% | |
Accrued sales revenue | $ 3 | $ 3 | $ 4.2 | ||
Product Concentration Risk | Revenue from Contract with Customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 46.00% | 58.00% | ||
Deferred tax expense | $ 14,957 | $ 23,169 | $ 23,280 | $ 36,651 |
Colombia | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 33.00% | 37.00% |
Contingencies (Details)
Contingencies (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Letters of credit and other credit support provided | $ 122,500,000 | $ 76,700,000 |
Pending Litigation Royalty, Transportation and Related Costs | ||
Loss Contingencies [Line Items] | ||
Estimated compensation which would be payable if the ANH's interpretation is correct | 55,600,000 | $ 56,300,000 |
Amount accrued | $ 0 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 30, 2019 | May 20, 2019 |
Senior notes | 6.25% Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 6.25% | |
Senior notes | 7.75% Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 7.75% | 7.75% |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Value of the notes | $ 123.6 | |
Fair value | Senior notes | 6.25% Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 280.5 | |
Fair value | Senior notes | 7.75% Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 294.8 | |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Value of the notes | 112.7 | |
Carrying amount | Senior notes | 6.25% Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 290 | |
Carrying amount | Senior notes | 7.75% Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 289.2 | |
PetroTal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in price (in dollars per share) | $ 0.01 | |
Investment change in value based on stock price | $ 1.9 | |
PetroTal | Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment owned, balance (in shares) | 246 | |
Investment owned, percent of total shares | 37.00% |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Investment - current and long-term | $ 59,489 | $ 41,435 |
Derivative asset | 857 | 0 |
Assets, fair value disclosure | 60,346 | 41,435 |
Derivative liability | 413 | 1,017 |
PSU and DSU liability | 8,586 | 17,683 |
Liabilities, fair value disclosure | $ 8,999 | $ 18,700 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurement - Schedule of Gains or Losses on Financial Instruments Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Investment gain | $ (17,689) | $ (11,638) | $ (15,718) | $ (5,717) |
Financial instruments (gain) loss | (18,340) | 4,768 | (15,175) | 11,714 |
Commodity price derivative (gain) loss | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative (loss) gain | (706) | 14,461 | 488 | 19,455 |
Foreign currency derivatives loss (gain) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative (loss) gain | $ 55 | $ 1,945 | $ 55 | $ (2,024) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurement - Rollforward of Level 3 Financial Asset (Details) - Equity Securities - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance, investment - long-term | $ 8,711 | $ 19,147 |
Transfer from long-term (Level 3) to current (Level 1) | (4,352) | (10,522) |
Unrealized valuation gain | 1,394 | 846 |
Unrealized foreign exchange gain (loss) | 428 | (760) |
Closing balance, investment - long-term | $ 6,181 | $ 8,711 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurement - Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts (Details) - Commodity Hedge | 6 Months Ended |
Jun. 30, 2019$ / collar$ / bblbbl | |
Purchased Puts: July 1, to December 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Volume (in barrels of oil per day) | bbl | 5,000 |
Purchased Puts: July 1, to December 31, 2019 | Purchased | Put | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Floor price (in dollars per barrel) | 60 |
Purchased Puts: July 1, to December 31, 2019 | Purchased | Call | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, Premium Paid | 2.39 |
Collars: July 1, to December 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Volume (in barrels of oil per day) | bbl | 5,000 |
Collars: July 1, to December 31, 2019 | Purchased | Put | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Floor price (in dollars per barrel) | 60 |
Collars: July 1, to December 31, 2019 | Sold | Call | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, Cap Price | $ / collar | 71.53 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurement - Schedule of Outstanding Foreign Currency Derivative Positions (Details) - Subsequent Event - Collars: May 1, to December 31, 2019 $ in Thousands, $ in Millions | Aug. 07, 2019COP ($)$ / collar | Aug. 07, 2019USD ($)$ / collar |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount hedged | $ 135,000 | $ 42,109 |
Sold | Put | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Floor Price (COP, Weighted Average) | 3,019 | 3,019 |
Purchased | Call | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cap Price (COP, Weighted Average) | 3,446 | 3,446 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 147,712 | $ 51,040 | $ 125,807 | $ 12,326 |
Restricted cash and cash equivalents - current | 699 | 1,269 | 2,836 | 11,787 |
Restricted cash and cash equivalents - long-term (included in other long-term assets) | 2,265 | 1,999 | 2,282 | 2,565 |
Cash, cash equivalents and restricted cash and cash equivalents | $ 150,676 | $ 54,308 | $ 130,925 | $ 26,678 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable and other long-term assets | $ (7,465) | $ (11,723) |
Derivatives | (659) | 3,431 |
Inventory | (1,387) | (3,054) |
Prepaids | 870 | (301) |
Accounts payable and accrued and other long-term liabilities | (18,841) | 971 |
Taxes receivable and payable | (42,712) | (27,318) |
Net changes in assets and liabilities from operating activities | $ (70,194) | $ (37,994) |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for income taxes | $ 29,339 | $ 21,032 |
Cash paid for interest | 13,545 | 3,788 |
Non-cash investing activities: | ||
Net liabilities related to property, plant and equipment, end of period | $ 96,320 | $ 62,009 |