Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 $0.001 per share | |
Trading Symbol | GTE | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 366,991,788 | |
Entity Central Index Key | 0001273441 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
OIL SALES (Note 8) | $ 96,623 | $ 33,824 | $ 192,116 | $ 119,903 |
EXPENSES | ||||
Operating | 25,431 | 19,364 | 55,056 | 63,952 |
Transportation | 2,921 | 3,226 | 5,427 | 7,263 |
COVID-19 related costs (Note 9) | 897 | 421 | 2,036 | 421 |
Depletion, depreciation and accretion | 28,927 | 42,484 | 60,245 | 99,778 |
Goodwill impairment (Note 5) | 0 | 0 | 0 | 102,581 |
Asset impairment (Note 5) | 0 | 398,458 | 0 | 402,362 |
General and administrative | 9,006 | 6,529 | 18,575 | 11,914 |
Severance | 0 | 25 | 919 | 1,347 |
Foreign exchange loss (gain) | 91 | (2,988) | 13,174 | 15,819 |
Derivative instruments loss (gain) (Note 12) | 21,239 | 5,623 | 44,937 | (7,244) |
Other financial instruments loss (gain) (Note 12) | 2,614 | (5,459) | 1,209 | 59,826 |
Interest expense (Note 6) | 13,935 | 13,365 | 27,747 | 26,175 |
EXPENSES | 105,061 | 481,048 | 229,325 | 784,194 |
INTEREST INCOME | 0 | 0 | 0 | 345 |
LOSS BEFORE INCOME TAXES | (8,438) | (447,224) | (37,209) | (663,946) |
INCOME TAX EXPENSE (RECOVERY) | ||||
Current (Note 10) | (14) | (375) | (14) | (77) |
Deferred (Note 10) | 9,203 | (76,200) | 17,854 | (41,594) |
INCOME TAX EXPENSE (RECOVERY) | 9,189 | (76,575) | 17,840 | (41,671) |
NET AND COMPREHENSIVE LOSS | (17,627) | (370,649) | (55,049) | (622,275) |
NET AND COMPREHENSIVE LOSS | $ (17,627) | $ (370,649) | $ (55,049) | $ (622,275) |
NET LOSS PER SHARE | ||||
BASIC (in dollars per share) | $ (0.05) | $ (1.01) | $ (0.15) | $ (1.70) |
DILUTED (in dollars per share) | $ (0.05) | $ (1.01) | $ (0.15) | $ (1.70) |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 7) (in shares) | 366,982,456 | 366,981,556 | 366,982,008 | 366,981,556 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 7) (in shares) | 366,982,456 | 366,981,556 | 366,982,008 | 366,981,556 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents (Note 13) | $ 19,965 | $ 14,114 |
Accounts receivable | 8,462 | 8,044 |
Investment (Note 12) | 31,525 | 48,323 |
Taxes receivable (Note 3) | 27,842 | 49,925 |
Other current assets | 17,425 | 13,459 |
Total Current Assets | 105,219 | 133,865 |
Oil and Gas Properties | ||
Proved | 829,017 | 797,355 |
Unproved | 159,021 | 161,763 |
Total Oil and Gas Properties | 988,038 | 959,118 |
Other capital assets | 3,842 | 5,364 |
Total Property, Plant and Equipment (Note 4) | 991,880 | 964,482 |
Other Long-Term Assets | ||
Deferred tax assets | 26,162 | 57,318 |
Taxes receivable (Note 3) | 45,985 | 42,635 |
Restricted cash and cash equivalents (Note 13) | 3,590 | 3,409 |
Other | 1,709 | 16 |
Total Other Long-Term Assets | 77,446 | 103,378 |
Total Assets | 1,174,545 | 1,201,725 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 116,437 | 100,784 |
Derivatives (Note 12) | 26,594 | 12,050 |
Equity compensation award liability (Note 7 and 12) | 1,991 | 805 |
Total Current Liabilities | 145,022 | 113,639 |
Long-Term Liabilities | ||
Long-term debt (Notes 6 and 12) | 759,824 | 774,770 |
Asset retirement obligation | 53,105 | 48,214 |
Equity compensation award liability (Note 7 and 12) | 9,762 | 3,955 |
Other long-term liabilities | 3,630 | 4,113 |
Total Long-Term Liabilities | 826,321 | 831,052 |
Contingencies (Note 11) | ||
Shareholders’ Equity | ||
Common Stock (Note 7) (366,991,788 and 366,981,556 shares issued and outstanding of Common Stock, par value $0.001 per share, as at June 30, 2021, and December 31, 2020, respectively) | 10,270 | 10,270 |
Additional paid-in capital | 1,286,235 | 1,285,018 |
Deficit | (1,093,303) | (1,038,254) |
Total Shareholders’ Equity | 203,202 | 257,034 |
Total Liabilities and Shareholders’ Equity | $ 1,174,545 | $ 1,201,725 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, shares issued (in shares) | 366,991,788 | 366,981,556 |
Common Stock, shares outstanding (in shares) | 366,991,788 | 366,981,556 |
Common Stock, 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, 2021 | Jun. 30, 2020 | |
Operating Activities | ||
Net loss | $ (55,049) | $ (622,275) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depletion, depreciation and accretion | 60,245 | 99,778 |
Goodwill impairment (Note 5) | 0 | 102,581 |
Asset impairment (Note 5) | 0 | 402,362 |
Deferred tax expense (recovery) | 17,854 | (41,594) |
Stock-based compensation expense (recovery) (Note 7) | 5,544 | (763) |
Amortization of debt issuance costs (Note 6) | 1,775 | 1,936 |
Unrealized foreign exchange loss | 13,480 | 19,255 |
Derivative instruments loss (gain) (Note 12) | 44,937 | (6,487) |
Cash settlements on derivatives instruments | (37,709) | 14,343 |
Other financial instruments loss (Note 12) | 1,209 | 59,069 |
Cash settlement of asset retirement obligation | (248) | (27) |
Non-cash lease expenses | 814 | 971 |
Lease payments | (855) | (975) |
Net change in assets and liabilities from operating activities (Note 13) | 27,157 | (21,255) |
Net cash provided by operating activities | 79,154 | 6,919 |
Investing Activities | ||
Additions to property, plant and equipment | (74,811) | (49,024) |
Proceeds on disposition of investment, net of transaction costs (Note 12) | 14,632 | 0 |
Changes in non-cash investing working capital (Note 13) | 3,176 | (38,645) |
Net cash used in investing activities | (57,003) | (87,669) |
Financing Activities | ||
Proceeds from debt, net of issuance costs (Note 6) | (125) | 90,505 |
Repayment of debt (Note 6) | (15,001) | 0 |
Proceeds from exercise of stock options | 8 | 0 |
Lease payments | (513) | (307) |
Net cash (used in) provided by financing activities | (15,631) | 90,198 |
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents | (488) | (738) |
Net increase in cash, cash equivalents and restricted cash and cash equivalents | 6,032 | 8,710 |
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period (Note 13) | 17,523 | 11,075 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period (Note 13) | $ 23,555 | $ 19,785 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Share Capital | Additional Paid-in Capital | Deficit |
Balance, beginning of period at Dec. 31, 2019 | $ 10,270 | $ 1,282,627 | $ (260,287) | |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation (Note 7) | 1,171 | |||
Net loss | $ (622,275) | (622,275) | ||
Balance, end of period at Jun. 30, 2020 | 411,506 | 10,270 | 1,283,798 | (882,562) |
Balance, beginning of period at Mar. 31, 2020 | 10,270 | 1,283,192 | (511,913) | |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation (Note 7) | 606 | |||
Net loss | (370,649) | (370,649) | ||
Balance, end of period at Jun. 30, 2020 | 411,506 | 10,270 | 1,283,798 | (882,562) |
Balance, beginning of period at Dec. 31, 2020 | 10,270 | 1,285,018 | (1,038,254) | |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation (Note 7) | 1,217 | |||
Net loss | (55,049) | (55,049) | ||
Balance, end of period at Jun. 30, 2021 | 203,202 | 10,270 | 1,286,235 | (1,093,303) |
Balance, beginning of period at Mar. 31, 2021 | 10,270 | 1,285,597 | (1,075,676) | |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation (Note 7) | 638 | |||
Net loss | (17,627) | (17,627) | ||
Balance, end of period at Jun. 30, 2021 | $ 203,202 | $ 10,270 | $ 1,286,235 | $ (1,093,303) |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2021 | |
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 international oil and natural gas exploration and production with assets currently in Colombia and Ecuador. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020, included in the Company’s 2020 Annual Report on Form 10-K. |
Taxes Receivable
Taxes Receivable | 6 Months Ended |
Jun. 30, 2021 | |
Tax Receivable Agreement [Abstract] | |
Taxes Receivable | Taxes Receivable The table below shows the break-down of taxes receivable, which are comprised of value added tax ("VAT") and income tax receivables: (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 Current VAT Receivable $ 16,199 $ 35,977 Income Tax Receivable 11,643 13,948 27,842 49,925 Long-Term VAT Receivable 20,885 28,485 Income Tax Receivable 25,100 14,150 45,985 42,635 Total Taxes Receivable $ 73,827 $ 92,560 The following table shows the movement of VAT and income tax receivables for the period identified below: (Thousands of U.S. Dollars) VAT Receivable Income Tax Receivable Total Taxes Receivable Balance, as at December 31, 2020 $ 64,462 $ 28,098 $ 92,560 Collected through direct government refunds (340) — (340) Collected through sales contracts (40,414) — (40,414) Taxes paid (1) 17,368 11,947 29,315 Foreign exchange loss (3,992) (3,302) (7,294) Balance, as at June 30, 2021 $ 37,084 $ 36,743 $ 73,827 (1) VAT is paid on certain goods and services in Colombia at a rate of 19% |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 Oil and natural gas properties Proved $ 4,196,663 $ 4,106,768 Unproved 159,021 161,763 4,355,684 4,268,531 Other (1) 32,602 32,135 4,388,286 4,300,666 Accumulated depletion and depreciation and impairment (3,396,406) (3,336,184) $ 991,880 $ 964,482 (1) The "other" category includes right-of-use assets for operating and finance leases of $11.7 million, which had a net book value of $3.2 million as at June 30, 2021 (December 31, 2020 - $11.4 million which had a net book value of $4.4 million). |
Impairment
Impairment | 6 Months Ended |
Jun. 30, 2021 | |
Impairment Disclosure [Abstract] | |
Impairment | Impairment Asset impairment (i) Oil and gas property impairment For the three and six months ended June 30, 2021, Gran Tierra had no ceiling test impairment losses based on the ceiling test calculation results. For each of the three and six months ended June 30, 2020, Gran Tierra had $398.3 million of ceiling test impairment losses. The Company used an average Brent price of $52.74 and $52.32 per bbl, for the purposes of the June 30, 2021 and 2020, respectively, ceiling test calculations. (ii) Inventory impairment For the three and six months ended June 30, 2021, the Company had no inventory impairment. For the three and six months ended June 30, 2020, the Company recorded $0.2 million and $4.1 million, respectively, of inventory impairment. Goodwill impairment The entire goodwill balance of $102.6 million was impaired during the six months ended June 30, 2020 due to the carrying value of the reporting unit exceeding its fair value as a result of the impact of lower forecasted commodity prices. |
Debt and Debt Issuance Costs
Debt and Debt Issuance Costs | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company's debt at June 30, 2021 and December 31, 2020 was as follows: (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 6.25% Senior Notes $ 300,000 $ 300,000 7.75% Senior Notes 300,000 300,000 Revolving credit facility 175,000 190,000 Unamortized debt issuance costs (16,474) (18,124) Long-term debt 758,526 771,876 Long-term lease obligation (1) 1,298 2,894 $ 759,824 $ 774,770 (1) The current portion of the lease obligation has been included in accounts payable and accrued liabilities on the Company's balance sheet and totaled $3.6 million as at June 30, 2021 (December 31, 2020 - $3.3 million). As at June 30, 2021 the borrowing base of the Company's Senior Secured Credit Facility (the "revolving credit facility") was $215 million with the next re-determination to occur no later than November, 2021. The Company is required to comply with various covenants, which have been modified in response to market conditions including the COVID-19 pandemic until October 1, 2021 ("the covenant relief period"). During the covenant relief period, the Company's ratio of total debt to Covenant EBITDAX ("EBITDAX") is permitted to be greater than 4.0 to 1.0, its Senior Secured Debt to EBITDAX ratio must not exceed 2.5 to 1.0, and its EBITDAX to interest expense ratio for the trailing four quarter periods measured as of the last day of the fiscal quarters ended (i) June 30, 2021 to September 30, 2021 must be at least 2.0 to 1.0, and (ii) at least 2.5 to 1.0 thereafter. As of June 30, 2021, the Company was in compliance with all applicable covenants in the revolving credit facility. After the expiration of covenant relief period, the Company must maintain compliance with the following financial covenants: limitations on Company's ratio of debt to EBITDAX to a maximum of 4.0 to 1.0; limitations on Company's ratio of Senior Secured Debt to EBITDAX to a maximum of 3.0 to 1.0; and the maintenance of a ratio of EBITDAX to interest expense of at least 2.5 to 1.0. If the Company fails to comply with these financial covenants, it would result in a default under the terms of the credit agreement, which could result in an acceleration of repayment of all indebtedness under the Company's revolving credit facility. Amounts drawn down under the revolving credit facility bear interest, at the Company's option, at the USD LIBOR rate plus a margin ranging from 2.90% to 4.90%, or an alternate base rate plus a margin ranging from 1.90% to 3.90%, 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 0.73% to 1.23% 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 to 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. 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) 2021 2020 2021 2020 Contractual interest and other financing expenses $ 13,041 $ 12,273 $ 25,972 $ 24,239 Amortization of debt issuance costs 894 1,092 1,775 1,936 $ 13,935 $ 13,365 $ 27,747 $ 26,175 |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share Capital | Share Capital Shares of Common Stock Balance, December 31, 2020 366,981,556 Shares issued on option exercise 10,232 Balance, June 30, 2021 366,991,788 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, 2021: 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, 2020 23,273,404 4,067,897 15,444,949 1.50 Granted 13,428,840 1,027,103 5,679,894 0.81 Exercised (2,733,209) — (10,232) 0.77 Forfeited (1,828,743) — (1,020,207) 0.90 Expired — — (1,040,262) 3.27 Balance, June 30, 2021 32,140,292 5,095,000 19,054,142 1.23 Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted average number of shares of Common Stock issued and outstanding during each period. Diluted net loss per share is calculated using the treasury stock method for share-based compensation arrangements. The treasury stock method assumes that any proceeds obtained on exercise of share-based compensation arrangements would be used to purchase common shares at the average market price during the period. The weighted average number of shares is then adjusted by the difference between the number of shares issued from the exercise of share-based compensation arrangements and shares repurchased from the related proceeds. 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. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueThe 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, 2021, 100% (three and six months ended June 30, 2020 - 100%) of the Company's revenue resulted from oil sales. During the three and six months ended June 30, 2021, quality and transportation discounts were 17% and 16%, respectively, of the average ICE Brent price (three and six months ended June 30, 2020 - 42% and 29%, respectively). During the three and six months ended June 30, 2021, the Company's production was sold primarily to two major customers in Colombia (three and six months ended June 30, 2020 - two). |
COVID-19 Costs
COVID-19 Costs | 6 Months Ended |
Jun. 30, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 Costs | COVID-19 CostsThe COVID-19 pandemic resulted in extra operating and transportation costs related to COVID-19 health and safety preventative measures including incremental sanitation requirements and enhanced procedures for trucking barrels and crew changes in the field. Below is a break-down of the costs: Three Months Ended June 30, Six Months Ended June 30, (Thousands of U.S. Dollars) 2021 2020 2021 2020 Operating expenses $ 816 $ 421 $ 1,862 $ 421 Transportation costs 81 — 174 — Total COVID-19 costs $ 897 $ 421 $ 2,036 $ 421 |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The Company's effective tax rate was (48)% for the six months ended June 30, 2021, compared to 6% in the comparative period of 2020. Current income tax was in a recovery position for the six months ended June 30, 2021 and 2020, primarily as a result of changes in the previous estimation of presumptive minimum tax. The deferred income tax expense for the six months ended June 30, 2021, was the result of excess tax depreciation compared to accounting depreciation and the use of tax losses to offset taxable income in Colombia. The deferred income tax recovery in the comparative period of 2020 was mainly the result of a ceiling test impairment loss in Colombia; which was partially offset by losses incurred in Colombia that are now fully offset by a valuation allowance. For the six months ended June 30, 2021, the difference between the effective tax rate of (48)% and the 31% Colombian tax rate was primarily due to an increase in the impact of foreign taxes, foreign translation adjustments, other permanent differences and stock based compensation; which was partially offset by a decrease in the valuation allowance. For the six months ended June 30, 2020, the difference between the effective tax rate of 6% and the 32% Colombian tax rate was primarily due to an increase in the valuation allowance, the non-deductibility of goodwill impairment for tax purposes, foreign translation adjustments and the non-deductible portion (50%) of the unrealized loss on PetroTal Corp. ("PetroTal") shares. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings Gran Tierra has a number of lawsuits and claims pending, including a dispute with the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) ("ANH") relating to the calculation of high price share royalties. Although the outcome of these lawsuits and disputes cannot be predicted with certainty, Gran Tierra believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs as they are incurred or become probable and determinable. Letters of credit and other credit support At June 30, 2021, the Company had provided letters of credit and other credit support totaling $103.5 million (December 31, 2020 - $100.6 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, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Financial Instruments At June 30, 2021, the Company’s financial instruments recognized on the balance sheet consisted of: cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, investment, other long-term assets, accounts payable and accrued liabilities, derivatives, equity compensation award liability, long-term debt and other long-term liabilities. Fair Value Measurement The fair value of investment, derivatives and equity compensation award liability is remeasured to the estimated fair value at the end of each reporting period. Investment in PetroTal The fair value of the Company's investment in PetroTal was estimated to be $31.5 million at June 30, 2021 ($48.3 million at December 31, 2020), based on the closing stock price of PetroTal of $0.29 CAD ($0.25 CAD at December 31, 2020) and the foreign exchange rate at that date. During the six months ended June 30, 2021, the Company sold 44% (109 million common shares) of its interest in PetroTal for cash proceeds net of transaction costs of $14.6 million resulting in a loss on sale of $5.1 million. 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. PetroTal's shares are listed on the Toronto Stock Exchange Venture under the trading symbol 'TAL' and on the London Stock Exchange Alternative Investment Market under the trading symbol 'PTAL'. Gran Tierra holds approximately 137 million common shares representing approximately 17% of PetroTal's issued and outstanding common shares. Commodity and Foreign Currency Derivatives 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. PSUs and DSUs The fair value of the PSUs liability was estimated based on a pricing model using inputs such as quoted market prices in an active market, and PSUs performance factor. The fair value of DSUs liability is measured using quoted market prices in an active market. The fair value of investment, derivatives and PSUs and DSUs liability at June 30, 2021, and December 31, 2020, was as follows: (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 Investment $ 31,525 $ 48,323 Derivative liability $ 26,594 $ 12,050 PSUs and DSUs liability 11,753 4,760 $ 38,347 $ 16,810 The following table presents gains or losses on derivative and other 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) 2021 2020 2021 2020 Commodity price $ 21,217 $ 7,542 $ 44,849 $ (10,777) Foreign currency 22 (1,919) 88 3,533 Derivative instruments loss (gain) $ 21,239 $ 5,623 $ 44,937 $ (7,244) Unrealized PetroTal $ 2,614 $ (6,216) $ (3,861) $ 59,069 Loss on sale of PetroTal shares — — 5,070 — Financial instruments loss $ — $ 757 — 757 Other financial instruments $ 2,614 $ (5,459) $ 1,209 $ 59,826 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 due 2027 (the "7.75% Senior Notes"). At June 30, 2021, the carrying amounts of the 6.25% Senior Notes and the 7.75% Senior Notes were $293.1 million and $291.4 million, respectively, which represented the aggregate principal amount less unamortized debt issuance costs, and the fair values were $267.2 million and $267.4 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, 2021, the fair value of the investment and DSUs liability was determined using Level 1 inputs, and the fair value of the derivative and PSUs liability was determined using Level 2 inputs. 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 and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The disclosure in the paragraph above regarding the fair value of cash and restricted cash and cash equivalents and Senior Notes was based on Level 1 inputs and the fair value of credit facility was based on Level 2 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. 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 flows in order to assure it can execute at least a portion of its planned capital spending. At June 30, 2021, the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Sold Put ($/bbl, Weighted Average) Purchased Put ($/bbl, Weighted Average) Sold Call ($/bbl, Weighted Average) Swap Price ($/bbl, Weighted Average) Three-way Collars: 7,000 ICE Brent 47.14 57.14 68.95 n/a Swaps: July 1, to December 31, 2021 3,000 ICE Brent n/a n/a n/a 56.75 Foreign Currency Derivatives The Company utilizes foreign currency derivatives to manage the variability in cash flows associated with the Company's forecasted Colombian peso ("COP") denominated expenses. At June 30, 2021, the Company had outstanding foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) (1) Reference Floor Price Cap Price (COP, Weighted Average) Collars: July 1, to December 31, 2021 6,000 1,597 COP 3,500 3,630 (1) At June 30, 2021 foreign exchange rate. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents shown as a sum of these amounts in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at June 30, As at December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 19,965 $ 17,599 $ 14,114 $ 8,817 Restricted cash and cash equivalents - 3,590 2,186 3,409 2,258 $ 23,555 $ 19,785 $ 17,523 $ 11,075 Net changes in assets and liabilities from operating activities were as follows: Six Months Ended June 30, (Thousands of U.S. Dollars) 2021 2020 Accounts receivable and other long-term assets $ 28 $ 15,475 Derivatives 6,264 (2,310) Inventory (1,934) (1,533) Prepaids (631) (750) Accounts payable and accrued and other long-term liabilities 11,991 (41,487) Taxes receivable and payable 11,439 9,350 Net changes in assets and liabilities from operating activities $ 27,157 $ (21,255) Changes in non-cash investing working capital for the six months ended June 30, 2021 are comprised of an increase in accounts payable and accrued liabilities of $3.7 million and an increase in accounts receivable of $0.5 million (six months ended June 30, 2020, a decrease in accounts payable and accrued liabilities of $38.7 million and a decrease in accounts receivable of $0.1 million). The following table provides additional supplemental cash flow disclosures: Six Months Ended June 30, (Thousands of U.S. Dollars) 2021 2020 Cash paid for income taxes $ 7,139 $ 8,524 Cash paid for interest $ 25,659 $ 23,540 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 31,887 $ 38,708 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
Taxes Receivable (Tables)
Taxes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Tax Receivable Agreement [Abstract] | |
Schedule of Taxes Receivable Components | The table below shows the break-down of taxes receivable, which are comprised of value added tax ("VAT") and income tax receivables: (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 Current VAT Receivable $ 16,199 $ 35,977 Income Tax Receivable 11,643 13,948 27,842 49,925 Long-Term VAT Receivable 20,885 28,485 Income Tax Receivable 25,100 14,150 45,985 42,635 Total Taxes Receivable $ 73,827 $ 92,560 |
Schedule of Taxes Receivable Roll Forward | The following table shows the movement of VAT and income tax receivables for the period identified below: (Thousands of U.S. Dollars) VAT Receivable Income Tax Receivable Total Taxes Receivable Balance, as at December 31, 2020 $ 64,462 $ 28,098 $ 92,560 Collected through direct government refunds (340) — (340) Collected through sales contracts (40,414) — (40,414) Taxes paid (1) 17,368 11,947 29,315 Foreign exchange loss (3,992) (3,302) (7,294) Balance, as at June 30, 2021 $ 37,084 $ 36,743 $ 73,827 (1) VAT is paid on certain goods and services in Colombia at a rate of 19% |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 Oil and natural gas properties Proved $ 4,196,663 $ 4,106,768 Unproved 159,021 161,763 4,355,684 4,268,531 Other (1) 32,602 32,135 4,388,286 4,300,666 Accumulated depletion and depreciation and impairment (3,396,406) (3,336,184) $ 991,880 $ 964,482 (1) The "other" category includes right-of-use assets for operating and finance leases of $11.7 million, which had a net book value of $3.2 million as at June 30, 2021 (December 31, 2020 - $11.4 million which had a net book value of $4.4 million). |
Debt and Debt Issuance Costs (T
Debt and Debt Issuance Costs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt at June 30, 2021 and December 31, 2020 was as follows: (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 6.25% Senior Notes $ 300,000 $ 300,000 7.75% Senior Notes 300,000 300,000 Revolving credit facility 175,000 190,000 Unamortized debt issuance costs (16,474) (18,124) Long-term debt 758,526 771,876 Long-term lease obligation (1) 1,298 2,894 $ 759,824 $ 774,770 (1) The current portion of the lease obligation has been included in accounts payable and accrued liabilities on the Company's balance sheet and totaled $3.6 million as at June 30, 2021 (December 31, 2020 - $3.3 million). |
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) 2021 2020 2021 2020 Contractual interest and other financing expenses $ 13,041 $ 12,273 $ 25,972 $ 24,239 Amortization of debt issuance costs 894 1,092 1,775 1,936 $ 13,935 $ 13,365 $ 27,747 $ 26,175 |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Common Stock | Shares of Common Stock Balance, December 31, 2020 366,981,556 Shares issued on option exercise 10,232 Balance, June 30, 2021 366,991,788 |
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, 2021: 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, 2020 23,273,404 4,067,897 15,444,949 1.50 Granted 13,428,840 1,027,103 5,679,894 0.81 Exercised (2,733,209) — (10,232) 0.77 Forfeited (1,828,743) — (1,020,207) 0.90 Expired — — (1,040,262) 3.27 Balance, June 30, 2021 32,140,292 5,095,000 19,054,142 1.23 |
COVID-19 Costs (Tables)
COVID-19 Costs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule Cost Incurred due to Catastrophic Events | The COVID-19 pandemic resulted in extra operating and transportation costs related to COVID-19 health and safety preventative measures including incremental sanitation requirements and enhanced procedures for trucking barrels and crew changes in the field. Below is a break-down of the costs: Three Months Ended June 30, Six Months Ended June 30, (Thousands of U.S. Dollars) 2021 2020 2021 2020 Operating expenses $ 816 $ 421 $ 1,862 $ 421 Transportation costs 81 — 174 — Total COVID-19 costs $ 897 $ 421 $ 2,036 $ 421 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities | The fair value of investment, derivatives and PSUs and DSUs liability at June 30, 2021, and December 31, 2020, was as follows: (Thousands of U.S. Dollars) As at June 30, 2021 As at December 31, 2020 Investment $ 31,525 $ 48,323 Derivative liability $ 26,594 $ 12,050 PSUs and DSUs liability 11,753 4,760 $ 38,347 $ 16,810 |
Schedule of Gains or Losses on Financial Instruments Recognized | The following table presents gains or losses on derivative and other 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) 2021 2020 2021 2020 Commodity price $ 21,217 $ 7,542 $ 44,849 $ (10,777) Foreign currency 22 (1,919) 88 3,533 Derivative instruments loss (gain) $ 21,239 $ 5,623 $ 44,937 $ (7,244) Unrealized PetroTal $ 2,614 $ (6,216) $ (3,861) $ 59,069 Loss on sale of PetroTal shares — — 5,070 — Financial instruments loss $ — $ 757 — 757 Other financial instruments $ 2,614 $ (5,459) $ 1,209 $ 59,826 |
Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts | At June 30, 2021, the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Sold Put ($/bbl, Weighted Average) Purchased Put ($/bbl, Weighted Average) Sold Call ($/bbl, Weighted Average) Swap Price ($/bbl, Weighted Average) Three-way Collars: 7,000 ICE Brent 47.14 57.14 68.95 n/a Swaps: July 1, to December 31, 2021 3,000 ICE Brent n/a n/a n/a 56.75 |
Schedule of Outstanding Foreign Currency Derivative Positions | At June 30, 2021, the Company had outstanding foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) (1) Reference Floor Price Cap Price (COP, Weighted Average) Collars: July 1, to December 31, 2021 6,000 1,597 COP 3,500 3,630 (1) At June 30, 2021 foreign exchange rate. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents shown as a sum of these amounts in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at June 30, As at December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 19,965 $ 17,599 $ 14,114 $ 8,817 Restricted cash and cash equivalents - 3,590 2,186 3,409 2,258 $ 23,555 $ 19,785 $ 17,523 $ 11,075 |
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) 2021 2020 Accounts receivable and other long-term assets $ 28 $ 15,475 Derivatives 6,264 (2,310) Inventory (1,934) (1,533) Prepaids (631) (750) Accounts payable and accrued and other long-term liabilities 11,991 (41,487) Taxes receivable and payable 11,439 9,350 Net changes in assets and liabilities from operating activities $ 27,157 $ (21,255) |
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) 2021 2020 Cash paid for income taxes $ 7,139 $ 8,524 Cash paid for interest $ 25,659 $ 23,540 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 31,887 $ 38,708 |
Taxes Receivable (Details)
Taxes Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Current | ||
VAT Receivable | $ 16,199 | $ 35,977 |
Income Tax Receivable | 11,643 | 13,948 |
Tax Receivable | 27,842 | 49,925 |
Long-Term | ||
VAT Receivable | 20,885 | 28,485 |
Income Tax Receivable | 25,100 | 14,150 |
Tax Receivable | 45,985 | 42,635 |
Total Taxes Receivable | 73,827 | $ 92,560 |
VAT Receivable | ||
Beginning balance | 64,462 | |
Collected through direct government refunds | (340) | |
Collected through sales contracts | (40,414) | |
Taxes paid | 17,368 | |
Foreign exchange loss | (3,992) | |
Ending Balance | 37,084 | |
Income Tax Receivable | ||
Beginning balance | 28,098 | |
Collected through direct government refunds | 0 | |
Collected through sales contracts | 0 | |
Taxes paid | 11,947 | |
Foreign exchange loss | (3,302) | |
Ending balance | 36,743 | |
Total Taxes Receivable | ||
Beginning balance | 92,560 | |
Collected through direct government refunds | (340) | |
Collected through sales contracts | (40,414) | |
Taxes paid | 29,315 | |
Foreign exchange loss | (7,294) | |
Ending balance | $ 73,827 | |
Colombia | ||
Taxes Receivable [Line Items] | ||
Value added tax, percent | 19.00% |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,388,286 | $ 4,300,666 |
Accumulated depletion and depreciation and impairment | (3,396,406) | (3,336,184) |
Total Property, Plant and Equipment (Note 4) | 991,880 | 964,482 |
Right-of-use asset, gross | 11,700 | 11,400 |
Right-of-use asset, net | 3,200 | 4,400 |
Oil and natural gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,355,684 | 4,268,531 |
Proved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,196,663 | 4,106,768 |
Unproved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 159,021 | 161,763 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 32,602 | $ 32,135 |
Impairment (Details)
Impairment (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / bbl | Jun. 30, 2020USD ($)$ / bbl | |
Property, Plant and Equipment [Line Items] | ||||
Impairment of oil and gas properties | $ 0 | $ 398,300,000 | $ 0 | $ 398,300,000 |
Inventory impairment | 0 | 200,000 | 0 | 4,100,000 |
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 102,581,000 |
Crude Oil and NGL | ||||
Property, Plant and Equipment [Line Items] | ||||
Average Brent price per barrel (in USD per barrel) | $ / bbl | 52.74 | 52.32 |
Debt and Debt Issuance Costs -
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (16,474,000) | $ (18,124,000) |
Long-term debt | 758,526,000 | 771,876,000 |
Long-term lease obligation | 1,298,000 | 2,894,000 |
Long-term debt excluding current maturity | $ 759,824,000 | 774,770,000 |
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% | |
Convertible senior notes and revolving credit facility | $ 300,000,000 | 300,000,000 |
Revolving credit facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Convertible senior notes and revolving credit facility | 175,000,000 | 190,000,000 |
Lease obligations | Accounts payable | ||
Debt Instrument [Line Items] | ||
Current portion of lease obligation | $ 3,600,000 | $ 3,300,000 |
Debt and Debt Issuance Costs _2
Debt and Debt Issuance Costs - Narrative (Details) - Revolving credit facility - Revolving credit facility - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Oct. 01, 2021 | Jun. 01, 2020 | |
Line of Credit Facility [Line Items] | ||||
Borrowing base | $ 215,000,000 | $ 215,000,000 | ||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt to EBITDAX ratio | 400.00% | |||
EBITDAX to interest expense, ratio, current quarter | 200.00% | |||
EBITDAX to interest expense, ratio, thereafter | 250.00% | |||
Unused capacity, commitment fee percentage | 0.73% | |||
Minimum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.90% | |||
Minimum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.90% | |||
Minimum | Forecast | ||||
Line of Credit Facility [Line Items] | ||||
EBITDAX to interest expense, ratio | 250.00% | |||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Senior secured debt to EBITDAX ratio | 250.00% | |||
Unused capacity, commitment fee percentage | 1.23% | |||
Maximum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 4.90% | |||
Maximum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.90% | |||
Maximum | Forecast | ||||
Line of Credit Facility [Line Items] | ||||
Debt to EBITDAX ratio | 400.00% | |||
Senior secured debt to EBITDAX ratio | 300.00% |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Contractual interest and other financing expenses | $ 13,041 | $ 12,273 | $ 25,972 | $ 24,239 |
Amortization of debt issuance costs | 894 | 1,092 | 1,775 | 1,936 |
Total interest expense recognized | $ 13,935 | $ 13,365 | $ 27,747 | $ 26,175 |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) | 6 Months Ended |
Jun. 30, 2021USD ($)shares | |
Increase (Decrease) in Common Stock | |
Common shares outstanding, as at beginning of period (in shares) | 366,981,556 |
Shares issued on option exercise (in shares) | $ | $ 10,232 |
Common shares outstanding, as at period end (in shares) | 366,991,788 |
Shares of Common Stock | |
Increase (Decrease) in Common Stock | |
Common shares outstanding, as at beginning of period (in shares) | 366,981,556 |
Common shares outstanding, as at period end (in shares) | 366,991,788 |
Share Capital - Schedule of PSU
Share Capital - Schedule of PSU, DSU, RSU and Stock Option Activity (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Outstanding Stock Options | |
Beginning Balance (in shares) | 15,444,949 |
Granted (in shares) | 5,679,894 |
Exercised (in shares) | (10,232) |
Forfeited (in shares) | (1,020,207) |
Expired (in shares) | (1,040,262) |
Ending Balance (in shares) | 19,054,142 |
Weighted Average Exercise Price/Stock Option ($) | |
Beginning balance (in dollars per share) | $ / shares | $ 1.50 |
Granted (in dollars per share) | $ / shares | 0.81 |
Exercised (in dollars per share) | $ / shares | 0.77 |
Forfeited (in dollars per share) | $ / shares | 0.90 |
Expired (in dollars per share) | $ / shares | 3.27 |
Ending balance (in dollars per share) | $ / shares | $ 1.23 |
PSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 23,273,404 |
Granted (in shares) | 13,428,840 |
Exercised (in shares) | (2,733,209) |
Forfeited (in shares) | (1,828,743) |
Expired (in shares) | 0 |
Ending Balance (in shares) | 32,140,292 |
DSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 4,067,897 |
Granted (in shares) | 1,027,103 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Ending Balance (in shares) | 5,095,000 |
Share Capital - Equity Compensa
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense (recovery) | $ 1.9 | $ 1.3 | $ 5.5 | $ (0.8) | |
Unrecognized compensation cost | $ 17.4 | $ 17.4 | $ 5.9 | ||
Weighted average period for recognition | 2 years | ||||
PSUs | Vested on December 31, 2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments for units vested in period | $ 0.6 | ||||
PSUs | Vested on December 31, 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments for units vested in period | $ 3.2 |
Share Capital - Weighted Averag
Share Capital - Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Weighted average number of common shares outstanding, basic (in shares) | 366,982,456 | 366,981,556 | 366,982,008 | 366,981,556 |
Weighted average number of common shares outstanding, diluted (in shares) | 366,982,456 | 366,981,556 | 366,982,008 | 366,981,556 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||||
Variable adjustment for transportation, location, quality, and other elements, percentage | (17.00%) | (42.00%) | (16.00%) | (29.00%) | |
Accrued sales revenue | $ 0.2 | $ 0.2 | $ 0.1 | ||
Product Concentration Risk | Revenue from Contract with Customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
COVID-19 Costs (Details)
COVID-19 Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | ||||
Operating expenses | $ 816 | $ 421 | $ 1,862 | $ 421 |
Transportation costs | 81 | 0 | 174 | 0 |
Total COVID-19 costs | $ 897 | $ 421 | $ 2,036 | $ 421 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | (48.00%) | 6.00% | ||
Current income tax expense | $ (14) | $ (375) | $ (14) | $ (77) |
Taxable income | $ (17,627) | $ (370,649) | $ (55,049) | $ (622,275) |
PetroTal | ||||
Income Tax Contingency [Line Items] | ||||
Goodwill, nondeductible amount, percent | 50.00% | 50.00% | ||
Colombia | ||||
Income Tax Contingency [Line Items] | ||||
Statutory income tax rate | 31.00% | 32.00% |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit and other credit support provided | $ 103.5 | $ 100.6 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Narrative (Details) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Jun. 30, 2021$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2020$ / shares | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investments, fair value | $ 31,525 | $ 31,525 | $ 48,323 | ||||
Proceeds on disposition of investment | 14,632 | $ 0 | |||||
Unrealized PetroTal investment loss (gain) | $ 2,614 | $ (6,216) | $ (3,861) | 59,069 | |||
Senior notes | 6.25% Senior Notes | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Stated interest rate | 6.25% | 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 | Senior notes | 6.25% Senior Notes | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Debt instrument, fair value disclosure | $ 267,200 | $ 267,200 | |||||
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 | 267,400 | 267,400 | |||||
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 | 293,100 | 293,100 | |||||
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 | 291,400 | 291,400 | |||||
PetroTal | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investments, fair value | $ 31,500 | $ 31,500 | |||||
Closing share price (in dollars per share) | $ / shares | $ 0.29 | $ 0.25 | |||||
PetroTal | Fair value | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investment owned, balance (in shares) | shares | 137 | 137 | |||||
Investment owned, percent of total shares | 17.00% | 17.00% | |||||
Petro Tal | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Number of shares disposed, percent | 44.00% | ||||||
Number of shares disposed (in shares) | shares | 109 | ||||||
Proceeds on disposition of investment | $ 14,600 | ||||||
Loss on disposition of stock | $ 5,100 | $ 0 |
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, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Investment | $ 31,525 | $ 48,323 |
Derivative liability | 26,594 | 12,050 |
PSU and DSU liability | 11,753 | 4,760 |
Liabilities, fair value disclosure | $ 38,347 | $ 16,810 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments loss (gain) | $ 21,239 | $ 5,623 | $ 44,937 | $ (7,244) |
Unrealized PetroTal investment loss (gain) | 2,614 | (6,216) | (3,861) | 59,069 |
Loss on sale of PetroTal shares | 0 | 0 | 5,070 | 0 |
Loss on sale of PetroTal shares | 0 | 757 | 0 | 757 |
Other financial instruments loss (gain) | 2,614 | (5,459) | 1,209 | 59,826 |
Commodity price derivatives loss (gain) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments loss (gain) | 21,217 | 7,542 | 44,849 | (10,777) |
Foreign currency derivatives loss (gain) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments loss (gain) | $ 22 | $ (1,919) | $ 88 | $ 3,533 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurement - Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts (Details) - Forecast - Commodity Hedge | 6 Months Ended |
Dec. 31, 2021$ / bblbbl | |
Three-way Collars: July 1, to December 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Volume (in barrels of oil per day) | bbl | 7,000 |
Three-way Collars: July 1, to December 31, 2021 | Sold | Put | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Sold Price (Weighted Average) (in dollars per bbl) | 47.14 |
Three-way Collars: July 1, to December 31, 2021 | Sold | Call | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Sold Price (Weighted Average) (in dollars per bbl) | 68.95 |
Three-way Collars: July 1, to December 31, 2021 | Purchased | Put | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Purchased Put (in dollars per barrel) | 57.14 |
Swaps: July 1, to December 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Volume (in barrels of oil per day) | bbl | 3,000 |
Premium (Weighted Average) (in dollars per bbl) | 56.75 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurement - Schedule of Outstanding Foreign Currency Derivative Positions (Details) - Forecast - Collars: July 1, to December 31, 2021 $ in Thousands, $ in Thousands | Dec. 31, 2021COP ($)$ / collar | Dec. 31, 2021USD ($)$ / collar |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount Hedged | $ 6,000,000 | $ 1,597 |
Sold | Put | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Floor Price (COP, Weighted Average) | 3,500 | 3,500 |
Purchased | Call | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cap Price (COP, Weighted Average) | 3,630 | 3,630 |
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, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 19,965 | $ 14,114 | $ 17,599 | $ 8,817 |
Restricted cash and cash equivalents - long-term | 3,590 | 3,409 | 2,186 | 2,258 |
Cash, cash equivalents and restricted cash and cash equivalents | $ 23,555 | $ 17,523 | $ 19,785 | $ 11,075 |
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, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable and other long-term assets | $ 28 | $ 15,475 |
Derivatives | 6,264 | (2,310) |
Inventory | (1,934) | (1,533) |
Prepaids | (631) | (750) |
Accounts payable and accrued and other long-term liabilities | 11,991 | (41,487) |
Taxes receivable and payable | 11,439 | 9,350 |
Net changes in assets and liabilities from operating activities | 27,157 | (21,255) |
Increase (decrease) in accounts payable and accrued liabilities | 3,700 | (38,700) |
Increase in accounts receivable | $ 500 | $ (100) |
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, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for income taxes | $ 7,139 | $ 8,524 |
Cash paid for interest | 25,659 | 23,540 |
Non-cash investing activities: | ||
Net liabilities related to property, plant and equipment, end of period | $ 31,887 | $ 38,708 |