Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'HNR | ' |
Entity Registrant Name | 'HARVEST NATURAL RESOURCES, INC. | ' |
Entity Central Index Key | '0000845289 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 42,103,641 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $17,638 | $120,897 |
Restricted cash | 50 | 148 |
Accounts receivable, net | 313 | 1,962 |
Deferred income taxes | 81 | 81 |
Prepaid expenses and other | 739 | 2,030 |
TOTAL CURRENT ASSETS | 18,821 | 125,118 |
LONG-TERM RECEIVABLE - EQUITY AFFILIATE | 13,875 | 15,097 |
INVESTMENT IN EQUITY AFFILIATE | 504,288 | 485,401 |
PROPERTY AND EQUIPMENT: | ' | ' |
Oil and gas properties (successful efforts method) | 103,802 | 108,013 |
Other administrative property, net | 302 | 378 |
TOTAL PROPERTY AND EQUIPMENT, NET | 104,104 | 108,391 |
OTHER ASSETS | 883 | 873 |
TOTAL ASSETS | 641,971 | 734,880 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable, trade and other | 2,767 | 4,398 |
Accrued expenses | 10,678 | 22,659 |
Accrued interest | 62 | 380 |
Income taxes payable | 45 | 2,178 |
Current deferred tax liability | 38,463 | 43,162 |
Current portion - long term debt | 0 | 77,480 |
Note payable to noncontrolling interest owner | 6,109 | 6,109 |
Other current liabilities | 159 | 419 |
TOTAL CURRENT LIABILITIES | 58,283 | 156,785 |
WARRANT DERIVATIVE LIABILITY | 1,953 | 1,953 |
LONG-TERM DEFERRED TAX LIABILITY | 33,510 | 29,787 |
OTHER LONG-TERM LIABILITIES | 524 | 558 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, par value $0.01 a share; authorized 5,000 shares; outstanding, none | 0 | 0 |
Common stock, par value $0.01 a share; authorized 80,000 shares at March 31, 2014 (December 31, 2013: 80,000 shares); issued 48,666 shares at March 31, 2014 (December 31, 2013: 48,666 shares) | 487 | 487 |
Additional paid-in capital | 276,964 | 276,083 |
Retained earnings | 84,274 | 92,282 |
Treasury stock, at cost 6,562 shares at March 31, 2014 (December 31, 2013: 6,551 shares) | -66,268 | -66,222 |
TOTAL HARVEST STOCKHOLDERS' EQUITY | 295,457 | 302,630 |
NONCONTROLLING INTERESTS | 252,244 | 243,167 |
TOTAL EQUITY | 547,701 | 545,797 |
TOTAL LIABILITIES AND EQUITY | $641,971 | $734,880 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 80,000 | 80,000 |
Common stock, shares issued | 48,666 | 48,666 |
Treasury stock, shares | 6,562 | 6,551 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Expenses: | ' | ' |
Depreciation and amortization | $76 | $87 |
Exploration expense | 1,833 | 1,730 |
Impairment expense | 4,460 | 0 |
General and administrative | 6,301 | 3,354 |
Total expense | 12,670 | 5,171 |
LOSS FROM OPERATIONS | -12,670 | -5,171 |
OTHER NON-OPERATING INCOME (EXPENSE): | ' | ' |
Investment earnings and other | 4 | 46 |
Loss on sale of interest in Harvest Holding | -966 | 0 |
Unrealized gain on derivatives | 0 | 3,785 |
Interest expense | -47 | -1,198 |
Loss on extinguishment of debt | -4,749 | 0 |
Foreign currency transaction gains (losses) | -469 | 92 |
Other non-operating expenses | -220 | -472 |
Total other non-operating income (expense) | -6,447 | 2,253 |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -19,117 | -2,918 |
INCOME TAX EXPENSE (BENEFIT) | -954 | 39 |
LOSS FROM CONTINUING OPERATIONS BEFORE EARNINGS FROM EQUITY AFFILIATE | -18,163 | -2,957 |
EARNINGS FROM EQUITY AFFILIATE | 18,887 | 49,471 |
INCOME FROM CONTINUING OPERATIONS | 724 | 46,514 |
DISCONTINUED OPERATIONS | -131 | -485 |
NET INCOME | 593 | 46,029 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 8,601 | 9,932 |
NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST | ($8,008) | $36,097 |
BASIC EARNINGS (LOSS) PER SHARE: | ' | ' |
Income (loss) from continuing operations | ($0.19) | $0.93 |
Discontinued operations | $0 | ($0.01) |
Basic earnings (loss) per share | ($0.19) | $0.92 |
Diluted earnings (loss) per share: | ' | ' |
Income (loss) from continuing operations | ($0.19) | $0.92 |
Discontinued operations | $0 | ($0.01) |
Diluted earnings (loss) per share | ($0.19) | $0.91 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $593 | $46,029 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 76 | 95 |
Impairment expense | 4,460 | 0 |
Amortization of debt financing costs | 0 | 357 |
Amortization of discount on debt | 0 | 634 |
Loss on sale of interest in Harvest Holding | 966 | 0 |
Foreign currency transaction loss | 1,349 | 436 |
Loss on extinguishment of debt | 4,749 | 0 |
Earnings from equity affiliate | -18,887 | -49,471 |
Share-based compensation-related charges | 881 | 680 |
Unrealized gain on derivatives | 0 | -3,785 |
Changes in operating assets and liabilities: | ' | ' |
Accounts and notes receivable | 1,649 | -4,219 |
Prepaid expenses and other | 12 | 218 |
Other assets | -10 | 370 |
Accounts payable | -1,631 | 4,129 |
Accrued expenses | -11,404 | -5,138 |
Accrued interest | -318 | 14 |
Income taxes payable | -2,133 | 6 |
Deferred tax asset and liabilities | -976 | 0 |
Other current liabilities | -260 | -122 |
Other long-term liabilities | -34 | -644 |
NET CASH USED IN OPERATING ACTIVITIES | -20,918 | -10,411 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Transaction costs from sale of interest in Harvest Holding | -2,494 | 0 |
Additions of property and equipment | -498 | -30,523 |
Advances to equity affiliate | -127 | -117 |
(Increase) decrease in restricted cash | 98 | -178 |
NET CASH USED IN INVESTING ACTIVITIES | -3,021 | -30,818 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Debt repayment | -79,750 | 0 |
Contributions from noncontrolling interest owners | 476 | 0 |
Net proceeds from issuances of common stock | 0 | 112 |
Treasury stock purchases | -46 | 0 |
Financing costs | 0 | -80 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | -79,320 | 32 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -103,259 | -41,197 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 120,897 | 72,627 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 17,638 | 31,430 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ' | ' |
Increase (decrease) in current liabilities related to additions of property and equipment | ($249) | ($11,649) |
Organization
Organization | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
Note 1 – Organization | |
Interim Reporting | |
In our opinion, the accompanying unaudited consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to present fairly the financial position as of March 31, 2014, the results of operations for the three months ended March 31, 2014 and 2013, and the cash flows for the three months ended March 31, 2014 and 2013. The unaudited consolidated condensed financial statements are presented in accordance with the requirements of Form 10-Q and do not include all disclosures normally required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated condensed financial statements included in this Quarterly Report on Form 10-Q should be read with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Financial Statements”) which include certain definitions and a summary of significant accounting policies. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year. | |
Share Purchase Agreement | |
As discussed further in the 2013 Financial Statements, on December 16, 2013, Harvest Natural Resources, Inc. (“Harvest” or the “Company”) and HNR Energia, B.V. (“HNR Energia”) entered into a Share Purchase Agreement (“Share Purchase Agreement”) with Petroandina Resources Corporation N.V. (“Petroandina”, a wholly owned subsidiary of Pluspetrol Resources Corporation B.V. (“Pluspetrol”)) and Pluspetrol to sell all of our 80 percent equity interest in Harvest-Vinccler Dutch Holding, B.V. (“Harvest Holding”) to Petroandina in two closings for an aggregate cash purchase price of $400 million. The first closing occurred on December 16, 2013 contemporaneously with the signing of the Share Purchase Agreement, when we sold a 29 percent equity interest in Harvest Holding for $125 million. Prior to December 16, 2013, we indirectly owned 80 percent of Harvest Holding, and we had one partner, Oil & Gas Technology Consultants (Netherlands) Coöperatie U.A., (“Vinccler”), which owned the remaining noncontrolling interest in Harvest Holding of 20 percent. As a result of this first sale, we indirectly own 51 percent of Harvest Holding beginning December 16, 2013 and the noncontrolling interest owners hold the remaining 49 percent with Petroandina having 29 percent and Vinccler continuing to own 20 percent. The second closing, for the sale of a 51 percent equity interest in Harvest Holding for a cash purchase price of $275 million, will be subject to, among other things, approval by the holders of a majority of our common stock and approval by the Ministerio del Poder Popular de Petroleo y Mineria representing the Government of Venezuela (which indirectly owns the other 60 percent interest in Petrodelta). On May 7, 2014, Harvest’s stockholders voted to authorize the sale of the remaining interests in Venezuela. | |
Harvest Holding owns, indirectly through wholly owned subsidiaries, a 40 percent equity interest in Petrodelta, S.A. (“Petrodelta”). Through our indirect 51 percent in Harvest Holding, we indirectly own a net 20.4 percent interest in Petrodelta for the period from December 16, 2013 to date, and prior to December 16, 2013 we indirectly owned a 32 percent interest in Petrodelta through our indirect 80 percent interest in Harvest Holding during this period. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Liquidity | ' |
Note 2 – Liquidity | |
Historically, our primary ongoing source of cash has been dividends from Petrodelta and the sale of oil and gas properties. Our primary use of cash has been to fund oil and gas exploration projects, principal payments on debt, interest, and general and administrative costs. We require capital principally to fund the exploration and development of new oil and gas properties. As is common in the oil and gas industry, we have various contractual commitments pertaining to exploration, development and production activities. See the 2013 Financial Statements for our contractual commitments. | |
On January 11, 2014, we used $80.0 million of the $125 million in proceeds from the sale of the 29 percent interest in Harvest Holding that we received on December 16, 2013 to redeem all of our 11% Senior Notes due 2014 and the accrued unpaid interest. The remaining $45.0 million of the proceeds from the sale of the 29 percent interest in Harvest Holding have been or will be used to pay costs associated with the sale of our Venezuelan interests, to pay severance costs, to make capital expenditures, to pay taxes related to the sale and for general operating expenses. Those remaining proceeds will also be used to repurchase certain outstanding warrants if a “Fundamental Change” is consummated under the terms of those warrants. As of March 31, 2014, we have cash and cash equivalents of $17.6 million which we expect to be adequate to meet our short-term liquidity requirements. | |
We are currently marketing our non-Venezuelan assets and talking to potential buyers, and we intend to continue our consideration of a possible sale for some or all of our non-Venezuelan assets if we are able to negotiate a sale or sales in transactions that our Board of Directors believes are in the best interests of the Company and its stockholders. In the meantime, we intend to operate our business in the ordinary course and may ultimately decide to keep our non-Venezuelan assets and acquire additional assets. | |
If the proposed sale of our remaining Venezuelan interests is completed and/or the sale of other non-Venezuelan assets are completed, a significant portion of our assets will be cash from the proceeds of such transactions. However, the timing of the sale of our remaining 51 percent interest in Harvest Holding or sales of other assets is beyond our control, and we will continue to have operating and capital requirements until these sales are completed. Depending on the timing of these events, we anticipate using a portion of the proceeds from the sale of 51 percent interest in Harvest Holding to pay for expenses and other costs related to the transaction, which we estimate will be approximately $4 million ($1.0 million of which has been incurred as of March 31, 2014); to pay taxes related to the transaction, which we estimate will be approximately $50.1 million. In addition, if we do not sell our non-Venezuelan assets before the sale of the 51 percent interest in Harvest Holding, then we estimate that we will need to retain a portion of the proceeds to fund projected general operating expenses and capital expenditures. Some of these costs will be paid from funds remaining from the proceeds of the initial sale of the 29 percent interest in Harvest Holding. If we sell our non-Venezuelan assets before the sale of the remaining 51 percent interest in Harvest Holding, then our requirements for projected general operating expenses and capital expenditures would be reduced. We will also use these funds to pay any severance or other costs during 2014 associated with the possible severance of some of our personnel in connection with a downsizing of the Company both related to the sale of our Venezuelan interests and related to any sale of our non-Venezuelan assets, if our Board of Directors determines that a downsizing would be in our best interests. We estimate these costs to be approximately $20 million. | |
Although we are currently marketing our non-Venezuelan assets and talking to potential buyers, we intend to operate our business in the ordinary course and may ultimately decide to keep our non-Venezuelan assets and acquire additional assets. Since we no longer have any obligations under the 11% Senior Notes due 2014, and given that we do not currently have any operating cash inflows, we may also decide to access additional capital through equity or debt sales; however, there can be no assurance that such financing will be available to the Company or on terms that are acceptable to the Company. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 3 – Summary of Significant Accounting Policies | |||||||||||||||||
Investment in Equity Affiliates | |||||||||||||||||
At March 31, 2014, we reviewed our investment in Petrodelta taking into consideration the terms of the Share Purchase Agreement (see Note 1 – Organization – Share Purchase Agreement). The purchase price under the Share Purchase Agreement indicates a valuation that approximates the carrying value of our equity investment in Petrodelta, the dividend receivable and the advances to this equity affiliate. As such, we concluded that there was no impairment to our equity investment as of March 31, 2014. If the sale of the remaining 51 percent interest in Harvest Holding is completed, we expect to recognize a gain on the transaction. | |||||||||||||||||
Oil and Gas Properties | |||||||||||||||||
We follow the successful efforts method of accounting for oil and gas properties. The major components of property and equipment are as follows: | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Unproved property costs | $ | 99,836 | $ | 103,917 | |||||||||||||
Oilfield inventories | 3,966 | 4,096 | |||||||||||||||
Other administrative property | 2,684 | 2,710 | |||||||||||||||
Total property and equipment | 106,486 | 110,723 | |||||||||||||||
Accumulated depreciation | (2,382 | ) | (2,332 | ) | |||||||||||||
Total property and equipment, net | $ | 104,104 | $ | 108,391 | |||||||||||||
Unproved property costs, excluding oilfield inventories, consist of (in thousands): | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Budong PSC | $ | 0 | $ | 4,470 | |||||||||||||
Dussafu PSC | 99,836 | 99,447 | |||||||||||||||
Total unproved property costs | $ | 99,836 | $ | 103,917 | |||||||||||||
Other Administrative Property | |||||||||||||||||
For the three months ended March 31, 2014 and 2013, depreciation expense was $0.1 million and $0.1 million, respectively. | |||||||||||||||||
Other Assets | |||||||||||||||||
Other assets consist of: | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Long-term prepaid expenses | $ | 149 | $ | 139 | |||||||||||||
Gabon PSC – blocked payment (net to our 66.667% interest) | 734 | 734 | |||||||||||||||
$ | 883 | $ | 873 | ||||||||||||||
The blocked payment of $0.7 million net to our 66.667 percent interest is related to our drilling operations in Gabon in accordance with the U.S. sanctions against Libya as set forth in Executive Order 13566 of February 25, 2011, and administered by the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”). See Note 12 – Commitments and Contingencies. | |||||||||||||||||
Capitalized Interest | |||||||||||||||||
We capitalize interest costs for qualifying oil and gas properties. During the three months ended March 31, 2014 and 2013, we capitalized interest costs for qualifying oil and gas property additions of $0.2 million and $2.0 million, respectively. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
We measure and disclose our fair values in accordance with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to their short-term nature (Level 1). The estimated fair value of advances to equity affiliate and dividend receivable approximates their carrying value as it is the estimated amount we would receive from a third party to assume the receivables (Level 2). | |||||||||||||||||
The following tables set forth by level within the fair value hierarchy our financial liabilities that were accounted for at fair value as of March 31, 2014 and December 31, 2013. See Note 11 – Warrant Derivative Liabilities for a description of the valuation models and inputs used to calculate the fair value of these derivative liabilities. | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liability | $ | 0 | $ | 0 | $ | 1,953 | $ | 1,953 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liability | $ | 0 | $ | 0 | $ | 1,953 | $ | 1,953 | |||||||||
During the three months ended March 31, 2014, there were no changes in the fair value of the warrants ($3.8 million unrealized gain during the three months ended March 31, 2013). | |||||||||||||||||
Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||
The following table provides a reconciliation of financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Financial liabilities: | |||||||||||||||||
Beginning balance | $ | 1,953 | $ | 5,470 | |||||||||||||
Additions | 0 | 0 | |||||||||||||||
Unrealized change in fair value | 0 | (3,785 | ) | ||||||||||||||
Ending balance | $ | 1,953 | $ | 1,685 | |||||||||||||
During the three months ended March 31, 2014 and 2013, there were no transfers between Level 1, Level 2 and Level 3 liabilities. | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
We use a fair value based method of accounting for stock-based compensation. During the three months ended March 31, 2014, we issued no stock-based compensation awards. | |||||||||||||||||
Income Taxes | |||||||||||||||||
We recognized an income tax benefit of $1.0 million during the three months ended March 31, 2014 as compared to income tax expense of $0.0 million during the three months ended March 31, 2013. Beginning in the fourth quarter of 2013, we determined that we expected to have sufficient taxable income in the U.S. related to the expected sale of the remaining equity interest in Harvest Holding. Therefore we recognized the tax benefit of losses incurred in the U.S. related to the three months ended March 31, 2014. This benefit was offset by expense associated with undistributed earnings from foreign subsidiaries during the three months ended March 31, 2014. | |||||||||||||||||
Noncontrolling Interests | |||||||||||||||||
Changes in noncontrolling interest were as follows: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 243,167 | $ | 97,101 | |||||||||||||
Contributions by noncontrolling interest owners | 476 | 0 | |||||||||||||||
Net income attributable to noncontrolling interest | 8,601 | 9,932 | |||||||||||||||
Balance at end of period | $ | 252,244 | $ | 107,033 | |||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In February 2013, FASB issued ASU No. 2013-04, which is included in ASC 405, “Liabilities”, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date”. This update provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation with the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. Examples of obligations within the scope to ASU No. 2013-04 include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU No. 2013-04 was effective for our fiscal years and interim periods beginning January 1, 2014. The implementation of this guidance on January 1, 2014 had no material impact on our consolidated financial position, results of operations or cash flows. See Note 12 – Commitments and Contingencies for the new recurring disclosures required under this guidance. | |||||||||||||||||
In July 2013, FASB issued ASU No. 2013-11 which is included in ASC 740 “Income Taxes”, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This update provides guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforward, a similar tax loss, or a tax credit carryforward are not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such instances, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. As permitted under the guidance, we applied the amendment prospectively to all unrecognized tax benefits that exist at the effective date for the Company which is January 1, 2014. The implementation of this guidance on January 1, 2014 had no material impact on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
In April 2014, FASB issued ASU No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” which is included in ASC 205 “Presentation of Financial Statements” and ASC 360 “Property, Plant, and Equipment.” This update changes the criteria for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the revised standard, a discontinued operation is (1) a component of an entity or group of components that has been disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results or (2) an acquired business or nonprofit activity that is classified as held for sale on the date of the acquisition. Under current U.S. GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement with the component after the disposal. The new guidance eliminates these criteria. The guidance does not change the presentation requirements for discontinued operations in the statement where net income is presented. Also, the new guidance requires the reclassification of assets and liabilities of a discontinued operation in the statement of financial position for all prior periods presented. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following the disposal date and retained equity method investments in a discontinued operation. The amendment should be applied prospectively; however, early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issue. The amendment is effective for annual periods beginning on or after December 15, 2014 and interim periods within annual periods beginning on or after December 15, 2015. This guidance will not impact disposals (or classifications as held for sale) in periods prior to the period of adoption. We are currently evaluating the impact of this guidance on disposals (or classifications as held for sale) in the period of adoption and subsequent periods. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
Note 4 – Earnings Per Share | |||||||||
Basic earnings per common share (“EPS”) are computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts) | |||||||||
Income (loss) from continuing operations(a) | $ | (7,877 | ) | $ | 36,582 | ||||
Discontinued operations | (131 | ) | (485 | ) | |||||
Net income (loss) attributable to Harvest | $ | (8,008 | ) | $ | 36,097 | ||||
Weighted average common shares outstanding | 41,806 | 39,444 | |||||||
Effect of dilutive securities | 0 | 191 | |||||||
Weighted average common shares, diluted | 41,806 | 39,635 | |||||||
Basic earnings (loss) per share: | |||||||||
Income (loss) from continuing operations | $ | (0.19 | ) | $ | 0.93 | ||||
Discontinued operations | 0 | (0.01 | ) | ||||||
Basic earnings (loss) per share | $ | (0.19 | ) | $ | 0.92 | ||||
Diluted earnings (loss) per share: | |||||||||
Income (loss) from continuing operations | $ | (0.19 | ) | $ | 0.92 | ||||
Discontinued operations | 0 | (0.01 | ) | ||||||
Diluted earnings (loss) per share | $ | (0.19 | ) | $ | 0.91 | ||||
(a) | Net of net income attributable to noncontrolling interests. | ||||||||
The three months ended March 31, 2014 per share calculations above exclude 4.1 million options and 2.5 million warrants because they were anti-dilutive. The three months ended March 31, 2013 per share calculations above exclude 2.9 million options and 2.4 million warrants because they were anti-dilutive. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Note 5 – Discontinued Operations | |||||||||
Consistent with the results reported in the 2013 Financial Statements, our Oman and Colombia operations have been classified as discontinued operations. Losses are shown in the table below: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Oman | $ | (16 | ) | $ | (341 | ) | |||
Colombia | (115 | ) | (144 | ) | |||||
$ | (131 | ) | $ | (485 | ) | ||||
Investment_in_Equity_Affiliate
Investment in Equity Affiliate - Petrodelta | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | ||||||||
Investment in Equity Affiliate - Petrodelta | ' | ||||||||
Note 6 – Investment in Equity Affiliate – Petrodelta | |||||||||
Harvest Holding indirectly owns a 40 percent interest in Petrodelta. As discussed further in Note 1 – Organization – Share Purchase Agreement, on December 16, 2013, Harvest and HNR Energia entered into the Share Purchase Agreement with Petroandina and Pluspetrol, its parent, to sell all of our 80 percent equity interest in Harvest Holding to Petroandina in two closings. The first closing occurred on December 16, 2013 when we sold a 29 percent equity interest in Harvest Holding. | |||||||||
Petrodelta’s financial information is prepared in accordance with International Financial Reporting Standards (“IFRS”) which we have adjusted to conform to U.S. GAAP. All amounts through Net Income under U.S. GAAP represent 100 percent of Petrodelta. In addition to the adjustments to arrive at Petrodelta’s net income under U.S. GAAP, earnings from equity affiliate also reflect the amortization of the excess basis in equity affiliate using the unit-of-production method based on risk adjusted total current estimated reserves. Summary financial information has been presented below for the three months ended March 31, 2014 and 2013 and at March 31, 2014 and December 31, 2013: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except percentages) | |||||||||
Results under IRFS: | |||||||||
Revenues: | |||||||||
Oil sales | $ | 325,654 | $ | 317,324 | |||||
Gas sales | 866 | 1,201 | |||||||
Royalty | (109,084 | ) | (105,533 | ) | |||||
217,436 | 212,992 | ||||||||
Expenses: | |||||||||
Operating expenses | 45,064 | 26,533 | |||||||
Workovers | 8,352 | 3,064 | |||||||
Depletion, depreciation and amortization | 26,312 | 20,465 | |||||||
General and administrative | 6,565 | 8,780 | |||||||
Windfall profits tax | 46,302 | 66,046 | |||||||
Windfall profits tax credit | 0 | (55,168 | ) | ||||||
132,595 | 69,720 | ||||||||
Income from operations | 84,841 | 143,272 | |||||||
Gain (loss) on exchange rate | (55 | ) | 186,721 | ||||||
Investment earnings and other | 313 | 1,400 | |||||||
Interest expense | (7,556 | ) | (2,750 | ) | |||||
Income before income tax | 77,543 | 328,643 | |||||||
Current income tax expense | 52,318 | 137,609 | |||||||
Deferred income tax expense (benefit) | (23,238 | ) | 3,378 | ||||||
Net income under IFRS | 48,463 | 187,656 | |||||||
Adjustments to increase (decrease) net income under IFRS: | |||||||||
Deferred income tax (expense) benefit | 6,311 | (4,850 | ) | ||||||
Depletion expense | (4,870 | ) | (4,230 | ) | |||||
Reversal of windfall profits tax credit | 0 | (55,168 | ) | ||||||
Sports law over accrual | 51 | 1,651 | |||||||
Net income under U.S. GAAP | 49,955 | 125,059 | |||||||
Equity interest in equity affiliate | 40 | % | 40 | % | |||||
Income before amortization of excess basis in equity affiliate | 19,982 | 50,024 | |||||||
Amortization of excess basis in equity affiliate | (1,095 | ) | (553 | ) | |||||
Earnings from equity affiliate included in income | $ | 18,887 | $ | 49,471 | |||||
As of | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
(in thousands) | |||||||||
Financial Position under IFRS: | |||||||||
Current assets | $ | 1,668,094 | $ | 1,906,595 | |||||
Property and equipment | 802,517 | 717,449 | |||||||
Other assets | 119,751 | 181,116 | |||||||
Current liabilities | 1,425,250 | 1,652,806 | |||||||
Other liabilities | 100,593 | 136,298 | |||||||
Net equity | 1,064,519 | 1,016,056 | |||||||
Sales Contract | |||||||||
The sale of oil and gas by Petrodelta to the Venezuelan government is pursuant to a Contract for Sale and Purchase of Hydrocarbons with PDVSA Petroleo S.A. (“PPSA”) signed on January 17, 2008. As discussed further in the 2013 Financial Statements, the Sales Contract is in the process of being amended to include the Boscan gravity and sulphur correction factors and crude pricing formula which is applicable to production from the El Salto field. The pricing formula in the draft amendment has been used to accrue revenue for El Salto field deliveries from October 1, 2011 to date. As of March 31, 2014, revenues of $868.4 million, net of royalty, ($756.7 million, net of royalty, as of December 31, 2013) for El Salto remain uninvoiced to PPSA pending execution of the amendment. | |||||||||
Functional Currency | |||||||||
Petrodelta’s functional and reporting currency is the U.S. Dollar. PPSA is obligated to make payment to Petrodelta in U.S. Dollars in the case of payment for crude oil and natural gas liquids delivered. In addition, major contracts for capital expenditures and lease operating expenditures are denominated in U.S. Dollars. Any dividend paid by Petrodelta will be made in U.S. Dollars. | |||||||||
Petrodelta has currency exchange risk from fluctuations of the official prevailing exchange rate that applies to their operating costs denominated in Venezuela Bolivars (“Bolivars”). The monetary assets that are exposed to exchange rate fluctuations are cash, accounts receivable, prepaid expenses and other current assets. The monetary liabilities that are exposed to exchange rate fluctuations are accounts payable, accruals, current and deferred income tax and other tax obligations and other current liabilities. All monetary assets and liabilities incurred at the official Bolivar exchange rate are settled at the official Bolivar exchange rate. The official prevailing currency exchange rate was increased from 4.3 Bolivars per U.S. Dollar to 6.3 Bolivars per U.S. Dollar in February 2013. Petrodelta reflected a gain of approximately $169.6 million on revaluation of its non-income tax related assets and liabilities during the year ended December 31, 2013 primarily related to the February 2013 devaluation. A substantial portion of this gain was reflected in the results for the three months ended March 31, 2013. | |||||||||
As a result of legislation enacted in December 2013 and January and February of 2014, Venezuela now has a multiple exchange rate system. Most of Petrodelta’s transactions are subject to a fixed official exchange rate of 6.3. In addition, there is a variable official exchange rate system in which the exchange rate is determined through auctions (11.3 rate as of December 31, 2013). The third system became available on March 24, 2014. The financial information is prepared using the official fixed exchange rate (6.3 from February 2013 to date). At March 31, 2014, the balances in Petrodelta’s Bolivar denominated monetary assets and liabilities accounts that are exposed to exchange rate changes are 1,292 million Bolivars and 6,208 million Bolivars, respectively. |
Venezuela_Other
Venezuela - Other | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Venezuela - Other | ' |
Note 7 – Venezuela – Other | |
See also Note 6 – Investment in Equity Affiliates, Venezuela – Petrodelta, S.A. for further information regarding our Venezuela operations. | |
At March 31, 2014, the balances in Harvest Vinccler S.C.A.’s (“Harvest Vinccler”) Bolivar denominated monetary assets and liabilities accounts that are exposed to exchange rate changes are 11.2 million Bolivars and 5.7 million Bolivars, respectively. During the three months ended March 31, 2014, Harvest Vinccler exchanged approximately $0.2 million ($0.4 million during the three months ended March 31, 2013) and received an average exchange rate of 14.27 Bolivars (5.80 Bolivars during the three months ended March 31, 2013) per U.S. Dollar to fund Bolivar denominated operating expenses. A change in the exchange rate is not expected to have a material impact on results of operations or our financial position due to the small amount of exposure to Bolivars. |
Gabon
Gabon | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Gabon | ' |
Note 8 – Gabon | |
Operational activities during the three months ended March 31, 2014 included continuation of planning for a cluster field development and preparation of a field development plan. Field development options have been evaluated and key and long lead equipment has been identified. Geoscience, reservoir engineering and economic studies have progressed, and the joint venture partners approved a resolution that the discovered fields are commercial at an operating committee meeting on March 26, 2014. Discussions have commenced with the State of Gabon over Declaration of Commerciality of the discoveries. | |
Central/inboard 3D seismic data has been received, and geophysical and geological interpretation to review prospectivity was completed. We have begun reviewing the first high quality seismic products from the acquisition of the outboard 1,260 Sq Km of 3D seismic data during October and mid-November 2013. This survey will provide the first 3D coverage over the outboard portion of the block where significant pre-salt prospectivity has been already recognized on 2D seismic data. The new 3D seismic data should also enhance the placement of future development wells in the Ruche and Tortue development program. The Dussafu Production Sharing Contract (“PSC”) represents $103.8 million of unproved oil and gas properties including inventory on our March 31, 2014 balance sheet ($103.4 million at December 31, 2013). | |
See Note 12 – Commitments and Contingencies for a discussion of legal matters related to our Gabon operations. |
Indonesia
Indonesia | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Indonesia | ' |
Note 9 – Indonesia | |
We have satisfied all work commitments for the current exploration phase of the Budong PSC. However, the extension of the initial exploration term includes an exploration well, which if not drilled by January 2016, results in the termination of the Budong PSC. | |
We are actively discussing the sale of our interests in Budong, and based on indications of interest received in December 2013, we determined that it was appropriate to recognize an impairment expense of $0.6 million and a charge included in general and administrative expenses related to a valuation allowance on VAT we do not expect to recover of $2.8 million. During the three months ended March 31, 2014, we fully impaired this property resulting in a charge of $4.5 million. The Budong PSC represented $4.6 million of unproved oil and gas properties including inventory on our December 31, 2013 balance sheet. |
Debt
Debt | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Note 10 –Debt | |||||||||
Debt consists of the following: | |||||||||
As of | As of | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Senior notes, unsecured, with interest at 11% | $ | 0 | $ | 79,750 | |||||
Discount on 11% senior unsecured notes | 0 | (2,270 | ) | ||||||
Less current portion | 0 | (77,480 | ) | ||||||
$ | 0 | $ | 0 | ||||||
As discussed in Note 2 – Liquidity, we used a portion of the $125 million in proceeds from the sale of the 29 percent interest in Harvest Holding that we received on December 16, 2013, to redeem all of our 11% Senior Notes due 2014. The notes were redeemed on January 11, 2014, for $80.0 million, including principal and accrued and unpaid interest. As a result of the redemption, we recorded a loss on extinguishment of debt of $4.8 million during the three months ended March 31, 2014. This loss includes the write off of the discount on debt ($2.3 million), the expensing of financing costs related to the term loan facility ($1.3 million) and for other costs related to the extinguishment ($1.2 million). |
Warrant_Derivative_Liability
Warrant Derivative Liability | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Warrant Derivative Liability | ' | ||||||||||||
Note 11 – Warrant Derivative Liability | |||||||||||||
As of March 31, 2014, the Warrant Derivative Liability consisted of 1,826,001 warrants (1,826,001 at December 31, 2013) issued under the warrant agreements dated November 2010 in connection with a $60 million term loan facility. The fair value of the Warrants as of March 31, 2014 was $1.07 per warrant ($1.07 per warrant at December 31, 2013). | |||||||||||||
The assumptions summarized in the following table were used to calculate the fair value of the warrant derivative liability that was outstanding as of any of the balance sheet dates presented on our consolidated balance sheets: | |||||||||||||
Fair Value | |||||||||||||
Hierarchy | As of | ||||||||||||
Level | March 31, 2014 | December 31, 2013 | |||||||||||
Significant assumptions (or ranges): | |||||||||||||
Stock price | Level 1 input | $ | 4.52 | $ | 4.52 | ||||||||
Term (years) | 1.58 | 1.83 | |||||||||||
Volatility | Level 2 input | 94 | % | 94 | % | ||||||||
Risk-free rate | Level 1 input | 0.34 | % | 0.34 | % | ||||||||
Dividend yield | Level 2 input | 0 | % | 0 | % | ||||||||
Scenario probability (fundamental change event/debt raise/equity raise) | Level 3 input | 60%/40%/0 | % | 60%/40%/0 | % | ||||||||
All our warrant derivative contracts are recorded at fair value and are classified as warrant derivative liability on the consolidated balance sheet. The following table summarizes the effect on our income associated with changes in the fair values of our warrant derivative financial instruments: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Unrealized gain on derivatives | $ | 0 | $ | 3,785 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Note 12 – Commitments and Contingencies | ||||
We have various contractual commitments pertaining to exploration, development and production activities. We entered the third exploration phase of the Dussafu PSC on May 28, 2012. In January 2013, the Budong PSC partners were granted a four year extension of the initial six year exploration term of the Budong PSC to January 15, 2017. The extension of the initial exploration term includes an exploration well, which if not drilled by January 2016, results in the termination of the Budong PSC. If we do not drill an exploration well before October 2014, our partner has the right to give us notice that the consideration for an additional 7.1 percent participating interest must be paid in cash for $3.2 million. See Note 9 – Indonesia. These work commitments are non-discretionary; however, we do have the ability to control the pace of expenditures. | ||||
Under the agreements with our partners in the Dussafu PSC and Budong PSC, we are jointly and severally liable to various third parties. As of March 31, 2014, the gross carrying amount of the fixed obligations was $4.0 million ($15.0 million as of December 31, 2013) and is related to accounts payable to vendors and withholding taxes payable to taxing authorities. As we are the operator for both the Dussafu PSC and Budong PSC, the gross carrying amount related to accounts payable and withholding taxes and the net amount related to other accrued expenses is reflected in the consolidated balance sheet in Accounts payable and Accrued expenses leaving $0.5 million in fixed obligations as of March 31, 2014 ($3.9 million as of December 31, 2013) attributable to our joint partners’ share which is not accrued in our balance sheet. Our partners have advanced $0.9 million ($1.1 million as of December 31, 2013) to satisfy their share of these obligations which was $1.3 million as of March 31, 2014 ($5.0 million as of December 31, 2013). As we expect our partners will continue to meet their obligations to fund their share of expenditures, we have not recognized any additional liability related to fixed joint interest obligations attributable to our joint interest partners. | ||||
Kensho Sone, et al. v. Harvest Natural Resources, Inc., in the United States District Court, Southern District of Texas, Houston Division. On July 24, 2013, 70 individuals, all alleged to be citizens of Taiwan, filed an original complaint and application for injunctive relief relating to the Company’s interest in the WAB-21 area of the South China Sea. The complaint alleges that the area belongs to the people of Taiwan and seeks damages in excess of $2.9 million and preliminary and permanent injunctions to prevent the Company from exploring, developing plans to extract hydrocarbons from, conducting future operations in, and extracting hydrocarbons from, the WAB-21 area. The Company has filed a motion to dismiss and intends to vigorously defend these allegations. In April 2014, the court issued an order allowing the plaintiffs to amend their complaint by May 9, 2014. | ||||
The following related class action lawsuits were filed on the dates specified in the United States District Court, Southern District of Texas: John Phillips v. Harvest Natural Resources, Inc., James A. Edmiston and Stephen C. Haynes (March 22, 2013) (“Phillips case”); Sang Kim v. Harvest Natural Resources, Inc., James A. Edmiston, Stephen C. Haynes, Stephen D. Chesebro’, Igor Effimoff, H. H. Hardee, Robert E. Irelan, Patrick M. Murray and J. Michael Stinson (April 3, 2013); Chris Kean v. Harvest Natural Resources, Inc., James A. Edmiston and Stephen C. Haynes (April 11, 2013); Prastitis v. Harvest Natural Resources, Inc., James A. Edmiston and Stephen C. Haynes (April 17, 2013); Alan Myers v. Harvest Natural Resources, Inc., James A. Edmiston and Stephen C. Haynes (April 22, 2013); and Edward W. Walbridge and the Edward W. Walbridge Trust v. Harvest Natural Resources, Inc., James A. Edmiston and Stephen C. Haynes (April 26, 2013). The complaints allege that the Company made certain false or misleading public statements and demand that the defendants pay unspecified damages to the class action plaintiffs based on stock price declines. All of these actions have been consolidated into the Phillips case. The Company and the other named defendants have filed a motion to dismiss and intend to vigorously defend the consolidated lawsuits. | ||||
In June 2012, the operator of the Budong PSC received notice of a claim related to the ownership of part of the land comprising the Karama-1 drilling site. The claim asserts that the land on which the drill site is located is partly owned by the claimant. The operator purchased the site from local landowners in January 2010, and the purchase was approved by BPMIGAS, Indonesia’s oil and gas regulatory authority. The claimant is seeking compensation of 16 billion Indonesia Rupiah (approximately $1.4 million, $1.0 million net to our 71.61 percent cost sharing interest) for land that was purchased at a cost of $4,100 in January 2010. On March 8, 2013, the court ruled to dismiss the claim because the claim had not been filed against the proper parties to the claim. On March 19, 2013, the claimant filed an appeal against the judgment. We dispute the claim and plan to vigorously defend against it. | ||||
In May 2012, Newfield Production Company (“Newfield”) filed notice pursuant to the Purchase and Sale Agreement between Harvest (US) Holdings, Inc. (“Harvest US”), a wholly owned subsidiary of Harvest, and Newfield dated March 21, 2011 (the “PSA”) of a potential environmental claim involving certain wells drilled on the Antelope Project. The claim asserts that locations constructed by Harvest US were built on, within, or otherwise impact or potentially impact wetlands and other water bodies. The notice asserts that, to the extent of potential penalties or other obligations that might result from potential violations, Harvest US must indemnify Newfield pursuant to the PSA. In June 2012, we provided Newfield with notice pursuant to the PSA (1) denying that Newfield has any right to indemnification from us, (2) alleging that any potential environmental claim related to Newfield’s notice would be an assumed liability under the PSA and (3) asserting that Newfield indemnify us pursuant to the PSA. We dispute Newfield’s claims and plan to vigorously defend against them. | ||||
On May 31, 2011, the United Kingdom branch of our subsidiary, Harvest Natural Resources, Inc. (UK), initiated a wire transfer of approximately $1.1 million ($0.7 million net to our 66.667 percent interest) intending to pay Libya Oil Gabon S.A. (“LOGSA”) for fuel that LOGSA supplied to our subsidiary in the Netherlands, Harvest Dussafu, B.V., for the company’s drilling operations in Gabon. On June 1, 2011, our bank notified us that it had been required to block the payment in accordance with the U.S. sanctions against Libya as set forth in Executive Order 13566 of February 25, 2011, and administered by OFAC, because the payee, LOGSA, may be a blocked party under the sanctions. The bank further advised us that it could not release the funds to the payee or return the funds to us unless we obtain authorization from OFAC. On October 26, 2011, we filed an application with OFAC for return of the blocked funds to us. Until that application is approved, the funds will remain in the blocked account, and we can give no assurance when OFAC will permit the funds to be released. On April 23, 2014, we received a notice that OFAC had denied our October 26, 2011 application for the return of the blocked funds. We intend to request that OFAC reconsider its decision, and we continue to believe that the funds will ultimately be released to the Company. | ||||
Robert C. Bonnet and Bobby Bonnet Land Services vs. Harvest (US) Holdings, Inc., Branta Exploration & Production, LLC, Ute Energy LLC, Cameron Cuch, Paula Black, Johnna Blackhair, and Elton Blackhair in the United States District Court for the District of Utah. This suit was served in April 2010 on Harvest and Elton Blackhair, a Harvest employee, alleging that the defendants, among other things, intentionally interfered with plaintiffs’ employment agreement with the Ute Indian Tribe – Energy & Minerals Department and intentionally interfered with plaintiffs’ prospective economic relationships. Plaintiffs seek actual damages, punitive damages, costs and attorney’s fees. We dispute plaintiffs’ claims and plan to vigorously defend against them. On October 29, 2013, we learned that the court administratively closed the case. The case was recently reopened as a result of the Circuit Court of Appeals’ ruling against Plaintiffs’ discovery request. We dispute Plaintiffs’ claims and plan to vigorously defend against them. | ||||
Uracoa Municipality Tax Assessments. Harvest Vinccler S.C.A., a subsidiary of Harvest Holding (“Harvest Vinccler”), has received nine assessments from a tax inspector for the Uracoa municipality in which part of the Uracoa, Tucupita and Bombal fields are located as follows: | ||||
• | Three claims were filed in July 2004 and allege a failure to withhold for technical service payments and a failure to pay taxes on the capital fee reimbursement and related interest paid by PDVSA under the Operating Service Agreement (“OSA”). Harvest Vinccler has filed a motion with the Tax Court in Barcelona, Venezuela, to enjoin and dismiss one of the claims and has protested with the municipality the remaining claims. | |||
• | Two claims were filed in July 2006 alleging the failure to pay taxes at a new rate set by the municipality. Harvest Vinccler has filed a protest with the Tax Court in Barcelona, Venezuela, on these claims. | |||
• | Two claims were filed in August 2006 alleging a failure to pay taxes on estimated revenues for the second quarter of 2006 and a withholding error with respect to certain vendor payments. Harvest Vinccler has filed a protest with the Tax Court in Barcelona, Venezuela, on one claim and filed a protest with the municipality on the other claim. | |||
• | Two claims were filed in March 2007 alleging a failure to pay taxes on estimated revenues for the third and fourth quarters of 2006. Harvest Vinccler has filed a protest with the municipality on these claims. | |||
Harvest Vinccler disputes the Uracoa tax assessments and believes it has a substantial basis for its positions based on the interpretation of the tax code by SENIAT (the Venezuelan income tax authority), as it applies to operating service agreements, Harvest Holding has filed claims in the Tax Court in Caracas against the Uracoa Municipality for the refund of all municipal taxes paid since 1997. | ||||
Libertador Municipality Tax Assessments. Harvest Vinccler has received five assessments from a tax inspector for the Libertador municipality in which part of the Uracoa, Tucupita and Bombal fields are located as follows: | ||||
• | One claim was filed in April 2005 alleging the failure to pay taxes at a new rate set by the municipality. Harvest Vinccler has filed a protest with the Mayor’s Office and a motion with the Tax Court in Barcelona, Venezuela, to enjoin and dismiss the claim. On April 10, 2008, the Tax Court suspended the case pending a response from the Mayor’s Office to the protest. If the municipality’s response is to confirm the assessment, Harvest Vinccler will defer to the Tax Court to enjoin and dismiss the claim. | |||
• | Two claims were filed in June 2007. One claim relates to the period 2003 through 2006 and seeks to impose a tax on interest paid by PDVSA under the OSA. The second claim alleges a failure to pay taxes on estimated revenues for the third and fourth quarters of 2006. Harvest Vinccler has filed a motion with the Tax Court in Barcelona, Venezuela, to enjoin and dismiss both claims. | |||
• | Two claims were filed in July 2007 seeking to impose penalties on tax assessments filed and settled in 2004. Harvest Vinccler has filed a motion with the Tax Court in Barcelona, Venezuela, to enjoin and dismiss both claims. | |||
Harvest Vinccler disputes the Libertador allegations set forth in the assessments and believes it has a substantial basis for its position. As a result of the SENIAT’s interpretation of the tax code as it applies to operating service agreements, Harvest Vinccler has filed claims in the Tax Court in Caracas against the Libertador Municipality for the refund of all municipal taxes paid since 2002. | ||||
On May 4, 2012, Harvest Vinccler learned that the Political Administrative Chamber of the Supreme Court of Justice issued a decision dismissing one of Harvest Vinccler’s claims against the Libertador Municipality. Harvest Vinccler continues to believe that it has sufficient arguments to maintain its position in accordance with the Venezuelan Constitution. Harvest Vinccler plans to present a request of Constitutional Revision to the Constitutional Chamber of the Supreme Court of Justice once it is notified officially of the decision. Harvest Vinccler has not received official notification of the decision. Harvest Vinccler is unable to predict the effect of this decision on the remaining outstanding municipality claims and assessments. | ||||
On February 21, 2014, Tecnica Vial and Flamingo, our partners in Colombia on Blocks VSM14 and VSM15, respectively, filed for arbitration of claims related to the farmout agreements for each block. We had received notices of default from our partners for failing to comply with certain terms of the farmout agreements, followed by notices of termination on November 27, 2013. We determined that it was appropriate to fully impair the costs associated with these interests, and we recorded an impairment charge of $3.2 million during the year ended December 31, 2013 which includes an accrual of $2.0 million related to this matter. We intend to vigorously defend the arbitration. | ||||
We are a defendant in or otherwise involved in other litigation incidental to our business. In the opinion of management, there is no such litigation that will have a material adverse effect on our financial condition, results of operations and cash flows. |
Operating_Segments
Operating Segments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Operating Segments | ' | ||||||||
Note 13 – Operating Segments | |||||||||
We regularly allocate resources to and assess the performance of our operations by segments that are organized by unique geographic and operating characteristics. Results for our segments are: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Segment Income (Loss) Attributable to Harvest | |||||||||
Venezuela | $ | 9,135 | $ | 39,076 | |||||
Gabon | (1,151 | ) | (941 | ) | |||||
Indonesia | (5,235 | ) | (1,279 | ) | |||||
United States | (10,626 | ) | (274 | ) | |||||
Income (loss) from continuing operations(a) | (7,877 | ) | 36,582 | ||||||
Discontinued operations | (131 | ) | (485 | ) | |||||
Net income (loss) attributable to Harvest | $ | (8,008 | ) | $ | 36,097 | ||||
(a) | Net of income attributable to noncontrolling interest. | ||||||||
As of March 31, | As of December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Operating Segment Assets | |||||||||
Venezuela | $ | 518,617 | $ | 500,946 | |||||
Gabon | 106,177 | 107,851 | |||||||
Indonesia | 546 | 5,004 | |||||||
United States | 16,619 | 121,050 | |||||||
641,959 | 734,851 | ||||||||
Discontinued operations | 12 | 29 | |||||||
Total Assets | $ | 641,971 | $ | 734,880 | |||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 14 – Related Party Transactions | |
As of March 31, 2014 and December 31, 2013, HNR Energia had a note payable to Vinccler of $6.1 million. Principal and interest are payable upon the maturity date of June 30, 2016. We have classified the note as a current liability as we expect to settle this obligation within one year. Interest accrues at a rate of US dollar based LIBOR plus 0.5%. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Investment in Equity Affiliates | ' | ||||||||||||||||
Investment in Equity Affiliates | |||||||||||||||||
At March 31, 2014, we reviewed our investment in Petrodelta taking into consideration the terms of the Share Purchase Agreement (see Note 1 – Organization – Share Purchase Agreement). The purchase price under the Share Purchase Agreement indicates a valuation that approximates the carrying value of our equity investment in Petrodelta, the dividend receivable and the advances to this equity affiliate. As such, we concluded that there was no impairment to our equity investment as of March 31, 2014. If the sale of the remaining 51 percent interest in Harvest Holding is completed, we expect to recognize a gain on the transaction. | |||||||||||||||||
Oil and Gas Properties | ' | ||||||||||||||||
Oil and Gas Properties | |||||||||||||||||
We follow the successful efforts method of accounting for oil and gas properties. The major components of property and equipment are as follows: | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Unproved property costs | $ | 99,836 | $ | 103,917 | |||||||||||||
Oilfield inventories | 3,966 | 4,096 | |||||||||||||||
Other administrative property | 2,684 | 2,710 | |||||||||||||||
Total property and equipment | 106,486 | 110,723 | |||||||||||||||
Accumulated depreciation | (2,382 | ) | (2,332 | ) | |||||||||||||
Total property and equipment, net | $ | 104,104 | $ | 108,391 | |||||||||||||
Unproved property costs, excluding oilfield inventories, consist of (in thousands): | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Budong PSC | $ | 0 | $ | 4,470 | |||||||||||||
Dussafu PSC | 99,836 | 99,447 | |||||||||||||||
Total unproved property costs | $ | 99,836 | $ | 103,917 | |||||||||||||
Other Administrative Property | ' | ||||||||||||||||
Other Administrative Property | |||||||||||||||||
For the three months ended March 31, 2014 and 2013, depreciation expense was $0.1 million and $0.1 million, respectively). | |||||||||||||||||
Other Assets | ' | ||||||||||||||||
Other Assets | |||||||||||||||||
Other assets consist of: | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Long-term prepaid expenses | $ | 149 | $ | 139 | |||||||||||||
Gabon PSC – blocked payment (net to our 66.667% interest) | 734 | 734 | |||||||||||||||
$ | 883 | $ | 873 | ||||||||||||||
The blocked payment of $0.7 million net to our 66.667 percent interest is related to our drilling operations in Gabon in accordance with the U.S. sanctions against Libya as set forth in Executive Order 13566 of February 25, 2011, and administered by the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”). See Note 12 – Commitments and Contingencies. | |||||||||||||||||
Capitalized Interest | ' | ||||||||||||||||
Capitalized Interest | |||||||||||||||||
We capitalize interest costs for qualifying oil and gas properties. During the three months ended March 31, 2014 and 2013, we capitalized interest costs for qualifying oil and gas property additions of $0.2 million and $2.0 million, respectively. | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
We measure and disclose our fair values in accordance with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to their short-term nature (Level 1). The estimated fair value of advances to equity affiliate and dividend receivable approximates their carrying value as it is the estimated amount we would receive from a third party to assume the receivables (Level 2). | |||||||||||||||||
The following tables set forth by level within the fair value hierarchy our financial liabilities that were accounted for at fair value as of March 31, 2014 and December 31, 2013. See Note 11 – Warrant Derivative Liabilities for a description of the valuation models and inputs used to calculate the fair value of these derivative liabilities. | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liability | $ | 0 | $ | 0 | $ | 1,953 | $ | 1,953 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liability | $ | 0 | $ | 0 | $ | 1,953 | $ | 1,953 | |||||||||
During the three months ended March 31, 2014, there were no changes in the fair value of the warrants ($3.8 million unrealized gain during the three months ended March 31, 2013). | |||||||||||||||||
Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||
The following table provides a reconciliation of financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Financial liabilities: | |||||||||||||||||
Beginning balance | $ | 1,953 | $ | 5,470 | |||||||||||||
Additions | 0 | 0 | |||||||||||||||
Unrealized change in fair value | 0 | (3,785 | ) | ||||||||||||||
Ending balance | $ | 1,953 | $ | 1,685 | |||||||||||||
During the three months ended March 31, 2014 and 2013, there were no transfers between Level 1, Level 2 and Level 3 liabilities. | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-Based Compensation | |||||||||||||||||
We use a fair value based method of accounting for stock-based compensation. During the three months ended March 31, 2014, we issued no stock-based compensation awards. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
We recognized an income tax benefit of $1.0 million during the three months ended March 31, 2014 as compared to income tax expense of $0.0 million during the three months ended March 31, 2013. Beginning in the fourth quarter of 2013, we determined that we expected to have sufficient taxable income in the U.S. related to the expected sale of the remaining equity interest in Harvest Holding. Therefore we recognized the tax benefit of losses incurred in the U.S. related to the three months ended March 31, 2014. This benefit was offset by expense associated with undistributed earnings from foreign subsidiaries during the three months ended March 31, 2014. | |||||||||||||||||
Noncontrolling Interests | ' | ||||||||||||||||
Noncontrolling Interests | |||||||||||||||||
Changes in noncontrolling interest were as follows: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 243,167 | $ | 97,101 | |||||||||||||
Contributions by noncontrolling interest owners | 476 | 0 | |||||||||||||||
Net income attributable to noncontrolling interest | 8,601 | 9,932 | |||||||||||||||
Balance at end of period | $ | 252,244 | $ | 107,033 | |||||||||||||
New Accounting Pronouncements | ' | ||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In February 2013, FASB issued ASU No. 2013-04, which is included in ASC 405, “Liabilities”, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date”. This update provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation with the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. Examples of obligations within the scope to ASU No. 2013-04 include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU No. 2013-04 was effective for our fiscal years and interim periods beginning January 1, 2014. The implementation of this guidance on January 1, 2014 had no material impact on our consolidated financial position, results of operations or cash flows. See Note 12 – Commitments and Contingencies for the new recurring disclosures required under this guidance. | |||||||||||||||||
In July 2013, FASB issued ASU No. 2013-11 which is included in ASC 740 “Income Taxes”, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This update provides guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforward, a similar tax loss, or a tax credit carryforward are not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such instances, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. As permitted under the guidance, we applied the amendment prospectively to all unrecognized tax benefits that exist at the effective date for the Company which is January 1, 2014. The implementation of this guidance on January 1, 2014 had no material impact on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
In April 2014, FASB issued ASU No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” which is included in ASC 205 “Presentation of Financial Statements” and ASC 360 “Property, Plant, and Equipment.” This update changes the criteria for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the revised standard, a discontinued operation is (1) a component of an entity or group of components that has been disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results or (2) an acquired business or nonprofit activity that is classified as held for sale on the date of the acquisition. Under current U.S. GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement with the component after the disposal. The new guidance eliminates these criteria. The guidance does not change the presentation requirements for discontinued operations in the statement where net income is presented. Also, the new guidance requires the reclassification of assets and liabilities of a discontinued operation in the statement of financial position for all prior periods presented. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following the disposal date and retained equity method investments in a discontinued operation. The amendment should be applied prospectively; however, early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issue. The amendment is effective for annual periods beginning on or after December 15, 2014 and interim periods within annual periods beginning on or after December 15, 2015. This guidance will not impact disposals (or classifications as held for sale) in periods prior to the period of adoption. We are currently evaluating the impact of this guidance on disposals (or classifications as held for sale) in the period of adoption and subsequent periods. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Major Components of Property and Equipment | ' | ||||||||||||||||
The major components of property and equipment are as follows: | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Unproved property costs | $ | 99,836 | $ | 103,917 | |||||||||||||
Oilfield inventories | 3,966 | 4,096 | |||||||||||||||
Other administrative property | 2,684 | 2,710 | |||||||||||||||
Total property and equipment | 106,486 | 110,723 | |||||||||||||||
Accumulated depreciation | (2,382 | ) | (2,332 | ) | |||||||||||||
Total property and equipment, net | $ | 104,104 | $ | 108,391 | |||||||||||||
Unproved Property Costs, Excluding Oilfield Inventories | ' | ||||||||||||||||
Unproved property costs, excluding oilfield inventories, consist of (in thousands): | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Budong PSC | $ | 0 | $ | 4,470 | |||||||||||||
Dussafu PSC | 99,836 | 99,447 | |||||||||||||||
Total unproved property costs | $ | 99,836 | $ | 103,917 | |||||||||||||
Schedule of Other Assets | ' | ||||||||||||||||
Other assets consist of: | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Long-term prepaid expenses | $ | 149 | $ | 139 | |||||||||||||
Gabon PSC – blocked payment (net to our 66.667% interest) | 734 | 734 | |||||||||||||||
$ | 883 | $ | 873 | ||||||||||||||
Fair Value Hierarchy of Financial Liabilities | ' | ||||||||||||||||
The following tables set forth by level within the fair value hierarchy our financial liabilities that were accounted for at fair value as of March 31, 2014 and December 31, 2013. See Note 11 – Warrant Derivative Liabilities for a description of the valuation models and inputs used to calculate the fair value of these derivative liabilities. | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liability | $ | 0 | $ | 0 | $ | 1,953 | $ | 1,953 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liability | $ | 0 | $ | 0 | $ | 1,953 | $ | 1,953 | |||||||||
Schedule of Reconciliation of Financial Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||
The following table provides a reconciliation of financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Financial liabilities: | |||||||||||||||||
Beginning balance | $ | 1,953 | $ | 5,470 | |||||||||||||
Additions | 0 | 0 | |||||||||||||||
Unrealized change in fair value | 0 | (3,785 | ) | ||||||||||||||
Ending balance | $ | 1,953 | $ | 1,685 | |||||||||||||
Summary of Changes in Noncontrolling Interest | ' | ||||||||||||||||
Changes in noncontrolling interest were as follows: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 243,167 | $ | 97,101 | |||||||||||||
Contributions by noncontrolling interest owners | 476 | 0 | |||||||||||||||
Net income attributable to noncontrolling interest | 8,601 | 9,932 | |||||||||||||||
Balance at end of period | $ | 252,244 | $ | 107,033 | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
Basic earnings per common share (“EPS”) are computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts) | |||||||||
Income (loss) from continuing operations(a) | $ | (7,877 | ) | $ | 36,582 | ||||
Discontinued operations | (131 | ) | (485 | ) | |||||
Net income (loss) attributable to Harvest | $ | (8,008 | ) | $ | 36,097 | ||||
Weighted average common shares outstanding | 41,806 | 39,444 | |||||||
Effect of dilutive securities | 0 | 191 | |||||||
Weighted average common shares, diluted | 41,806 | 39,635 | |||||||
Basic earnings (loss) per share: | |||||||||
Income (loss) from continuing operations | $ | (0.19 | ) | $ | 0.93 | ||||
Discontinued operations | 0 | (0.01 | ) | ||||||
Basic earnings (loss) per share | $ | (0.19 | ) | $ | 0.92 | ||||
Diluted earnings (loss) per share: | |||||||||
Income (loss) from continuing operations | $ | (0.19 | ) | $ | 0.92 | ||||
Discontinued operations | 0 | (0.01 | ) | ||||||
Diluted earnings (loss) per share | $ | (0.19 | ) | $ | 0.91 | ||||
(a) | Net of net income attributable to noncontrolling interests. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||
Schedule of Discontinued Operations Net Loss on Dispositions | ' | ||||||||
Losses are shown in the table below: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Oman | $ | (16 | ) | $ | (341 | ) | |||
Colombia | (115 | ) | (144 | ) | |||||
$ | (131 | ) | $ | (485 | ) | ||||
Investment_in_Equity_Affiliate1
Investment in Equity Affiliate - Petrodelta (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Schedule of Assets and Liabilities | ' | ||||||||
As of | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
(in thousands) | |||||||||
Financial Position under IFRS: | |||||||||
Current assets | $ | 1,668,094 | $ | 1,906,595 | |||||
Property and equipment | 802,517 | 717,449 | |||||||
Other assets | 119,751 | 181,116 | |||||||
Current liabilities | 1,425,250 | 1,652,806 | |||||||
Other liabilities | 100,593 | 136,298 | |||||||
Net equity | 1,064,519 | 1,016,056 | |||||||
Petrodelta, S.A. [Member] | ' | ||||||||
Summary of Financial Information | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except percentages) | |||||||||
Results under IRFS: | |||||||||
Revenues: | |||||||||
Oil sales | $ | 325,654 | $ | 317,324 | |||||
Gas sales | 866 | 1,201 | |||||||
Royalty | (109,084 | ) | (105,533 | ) | |||||
217,436 | 212,992 | ||||||||
Expenses: | |||||||||
Operating expenses | 45,064 | 26,533 | |||||||
Workovers | 8,352 | 3,064 | |||||||
Depletion, depreciation and amortization | 26,312 | 20,465 | |||||||
General and administrative | 6,565 | 8,780 | |||||||
Windfall profits tax | 46,302 | 66,046 | |||||||
Windfall profits tax credit | 0 | (55,168 | ) | ||||||
132,595 | 69,720 | ||||||||
Income from operations | 84,841 | 143,272 | |||||||
Gain (loss) on exchange rate | (55 | ) | 186,721 | ||||||
Investment earnings and other | 313 | 1,400 | |||||||
Interest expense | (7,556 | ) | (2,750 | ) | |||||
Income before income tax | 77,543 | 328,643 | |||||||
Current income tax expense | 52,318 | 137,609 | |||||||
Deferred income tax expense (benefit) | (23,238 | ) | 3,378 | ||||||
Net income under IFRS | 48,463 | 187,656 | |||||||
Adjustments to increase (decrease) net income under IFRS: | |||||||||
Deferred income tax (expense) benefit | 6,311 | (4,850 | ) | ||||||
Depletion expense | (4,870 | ) | (4,230 | ) | |||||
Reversal of windfall profits tax credit | 0 | (55,168 | ) | ||||||
Sports law over accrual | 51 | 1,651 | |||||||
Net income under U.S. GAAP | 49,955 | 125,059 | |||||||
Equity interest in equity affiliate | 40 | % | 40 | % | |||||
Income before amortization of excess basis in equity affiliate | 19,982 | 50,024 | |||||||
Amortization of excess basis in equity affiliate | (1,095 | ) | (553 | ) | |||||
Earnings from equity affiliate included in income | $ | 18,887 | $ | 49,471 | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Debt | ' | ||||||||
Debt consists of the following: | |||||||||
As of | As of | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Senior notes, unsecured, with interest at 11% | $ | 0 | $ | 79,750 | |||||
Discount on 11% senior unsecured notes | 0 | (2,270 | ) | ||||||
Less current portion | 0 | (77,480 | ) | ||||||
$ | 0 | $ | 0 | ||||||
Warrant_Derivative_Liability_T
Warrant Derivative Liability (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Schedule of Significant Assumptions or Ranges | ' | ||||||||||||
The assumptions summarized in the following table were used to calculate the fair value of the warrant derivative liability that was outstanding as of any of the balance sheet dates presented on our consolidated balance sheets: | |||||||||||||
Fair Value | |||||||||||||
Hierarchy | As of | ||||||||||||
Level | March 31, 2014 | December 31, 2013 | |||||||||||
Significant assumptions (or ranges): | |||||||||||||
Stock price | Level 1 input | $ | 4.52 | $ | 4.52 | ||||||||
Term (years) | 1.58 | 1.83 | |||||||||||
Volatility | Level 2 input | 94 | % | 94 | % | ||||||||
Risk-free rate | Level 1 input | 0.34 | % | 0.34 | % | ||||||||
Dividend yield | Level 2 input | 0 | % | 0 | % | ||||||||
Scenario probability (fundamental change event/debt raise/equity raise) | Level 3 input | 60%/40%/0 | % | 60%/40%/0 | % | ||||||||
Income (Loss) Associated with Changes in Fair Values of Our Warrant Derivative Financial Instruments | ' | ||||||||||||
The following table summarizes the effect on our income (loss) associated with changes in the fair values of our warrant derivative financial instruments: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Unrealized gain on derivatives | $ | 0 | $ | 3,785 | |||||||||
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Income (Loss) Attributable to Harvest | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Segment Income (Loss) Attributable to Harvest | |||||||||
Venezuela | $ | 9,135 | $ | 39,076 | |||||
Gabon | (1,151 | ) | (941 | ) | |||||
Indonesia | (5,235 | ) | (1,279 | ) | |||||
United States | (10,626 | ) | (274 | ) | |||||
Income (loss) from continuing operations(a) | (7,877 | ) | 36,582 | ||||||
Discontinued operations | (131 | ) | (485 | ) | |||||
Net income (loss) attributable to Harvest | $ | (8,008 | ) | $ | 36,097 | ||||
Operating Segment Assets | ' | ||||||||
As of March 31, | As of December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Operating Segment Assets | |||||||||
Venezuela | $ | 518,617 | $ | 500,946 | |||||
Gabon | 106,177 | 107,851 | |||||||
Indonesia | 546 | 5,004 | |||||||
United States | 16,619 | 121,050 | |||||||
641,959 | 734,851 | ||||||||
Discontinued operations | 12 | 29 | |||||||
Total Assets | $ | 641,971 | $ | 734,880 | |||||
Organization_Additional_Inform
Organization - Additional Information - Percent Ownership Harvest Vinccler Dutch Holding (Detail) | 0 Months Ended | 3 Months Ended |
Dec. 16, 2013 | Mar. 31, 2014 | |
Harvest Holding [Member] | First Closing [Member] | Noncontrolling Interest [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding after "Share Purchase Agreement" | 49.00% | ' |
Harvest Holding [Member] | Harvest Natural Resources [Member] | First Closing [Member] | Parent [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding before "Share Purchase Agreement" | 80.00% | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding after "Share Purchase Agreement" | 51.00% | ' |
Harvest Holding [Member] | Oil & Gas Technology Consultants [Member] | First Closing [Member] | Noncontrolling Interest [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding before "Share Purchase Agreement" | 20.00% | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding after "Share Purchase Agreement" | 20.00% | ' |
Harvest Holding [Member] | Petroandina [Member] | First Closing [Member] | Noncontrolling Interest [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding after "Share Purchase Agreement" | 29.00% | ' |
Petrodelta, S.A. [Member] | Harvest Natural Resources [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding before "Share Purchase Agreement" | 32.00% | ' |
Percentage Of ownership in Harvest Vinccler Dutch Holding after "Share Purchase Agreement" | ' | 20.40% |
Government of Venezuela [Member] | Petrodelta, S.A. [Member] | Majority Shareholder [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Venezuelan Government ownership in Petrodelta | ' | 60.00% |
Organization_Additional_Inform1
Organization - Additional Information - Sale Of Harvest Vinccler Dutch Holding (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 16, 2013 | Dec. 16, 2013 | Dec. 16, 2013 |
In Millions, unless otherwise specified | Tranches | Harvest Holding [Member] | Scenario, Actual [Member] | Scenario, Plan [Member] | Scenario, Plan [Member] |
Tranches | First Closing [Member] | Harvest Holding [Member] | Second Closing [Member] | ||
Harvest Holding [Member] | Petroandina [Member] | Harvest Holding [Member] | |||
Petroandina [Member] | Petroandina [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' | ' | ' |
Number of closings (tranches) of Equity interest | 2 | 2 | ' | ' | ' |
Date of "Share Purchase Agrement" | ' | 16-Dec-13 | ' | ' | ' |
Proceeds from sale of interest in subsidiary before any transaction costs | ' | ' | $125 | $400 | $275 |
Percent stake in subsidiary sold | ' | ' | 29.00% | 80.00% | 51.00% |
Organization_Additional_Inform2
Organization - Additional Information (Detail) (Petrodelta, S.A. [Member]) | 0 Months Ended | 3 Months Ended |
Dec. 16, 2013 | Mar. 31, 2014 | |
Harvest Holding [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Effective interest held in Petrodelta by Harvest Natural Resources Inc through Harvest Vinccler Dutch Holding | 40.00% | ' |
Harvest Natural Resources [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Effective interest held in Petrodelta by Harvest Natural Resources Inc through Harvest Vinccler Dutch Holding | 40.00% | ' |
Interest held in Pertrodelta by Harvest Natural Resources before "Share Purchase Agreement" | 32.00% | ' |
Interest held in Pertrodelta by Harvest Natural Resources after "Share Purchase Agreement" | ' | 20.40% |
Liquidity_Additional_Informati
Liquidity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Dec. 16, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 11, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Senior Notes [Member] | Senior Notes [Member] | Harvest Holding [Member] | ||||||
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Notes redeemed | ' | ' | ' | ' | ' | $80,000,000 | ' | ' |
Proceeds from sale of equity | 125,000,000 | -2,494,000 | 0 | ' | ' | ' | ' | ' |
Sale of equity interest in Harvest Holding | 29.00% | ' | ' | ' | ' | ' | ' | ' |
Percentage of debt instrument | ' | ' | ' | ' | ' | ' | 11.00% | ' |
Remaining proceeds from sale of equity interest | ' | ' | ' | ' | ' | ' | ' | 45,000,000 |
Cash and cash equivalents | ' | 17,638,000 | 31,430,000 | 120,897,000 | 72,627,000 | ' | ' | ' |
Estimated amount for payment of expenses and other costs related to sale of interest | ' | ' | ' | ' | ' | ' | ' | 4,000,000 |
Estimated amount for payment of expenses and other costs incurred related to sale of interest | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Interest indirectly owned in Harvest Holding | ' | 51.00% | ' | ' | ' | ' | ' | 51.00% |
Estimated amount for payment of taxes related to sale of interest | ' | ' | ' | ' | ' | ' | ' | 50,100,000 |
Estimated amount for payment of severance or other costs related to sale of interest | ' | ' | ' | ' | ' | ' | ' | $20,000,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
31-May-11 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Interest indirectly owned in Harvest Holding | ' | 51.00% | ' | ' |
Depreciation Expense | ' | $76,000 | $87,000 | ' |
Blocked payment net to cost sharing interest | 700,000 | 734,000 | ' | 734,000 |
Interest Related to Dussafu PSC Drilling Operations | 66.67% | 66.67% | ' | 66.67% |
Capitalized interest costs | ' | 200,000 | 2,000,000 | ' |
Unrealized change in fair value | ' | 0 | -3,785,000 | ' |
Transfers of liabilities | ' | 0 | 0 | ' |
INCOME TAX EXPENSE (BENEFIT) | ' | -954,000 | 39,000 | ' |
Other Assets [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Blocked payment net to cost sharing interest | ' | 700,000 | ' | ' |
Derivative Liabilities [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Unrealized change in fair value | ' | 0 | 3,800,000 | ' |
Options [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Stock options awards | ' | 0 | ' | ' |
Furniture, fixtures and equipment [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Depreciation Expense | ' | $100,000 | $100,000 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Major Components of Property and Equipment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Unproved property costs | $99,836 | $103,917 |
Oilfield inventories | 3,966 | 4,096 |
Other administrative property | 2,684 | 2,710 |
Total property and equipment | 106,486 | 110,723 |
Accumulated depreciation | -2,382 | -2,332 |
TOTAL PROPERTY AND EQUIPMENT, NET | $104,104 | $108,391 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Unproved Property Costs (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Unproved property cost | $99,836 | $103,917 |
Budong PSC [Member] | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Unproved property cost | 0 | 4,470 |
Dussafu PSC [Member] | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Unproved property cost | $99,836 | $99,447 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule Of Other Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | 31-May-11 |
In Thousands, unless otherwise specified | |||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' | ' |
Long-term prepaid expenses | $149 | $139 | ' |
Gabon PSC - blocked payment (net to our 66.667% interest) | 734 | 734 | 700 |
Other assets | $883 | $873 | ' |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Schedule Of Other Assets (Parenthetical) (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
31-May-11 | Mar. 31, 2014 | Dec. 31, 2013 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' | ' |
Interest Related to Dussafu PSC Drilling Operations | 66.67% | 66.67% | 66.67% |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Fair Value Hierarchy of Financial Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Warrant derivative liability | $1,953 | $1,953 |
Level 1 input [Member] | ' | ' |
Liabilities: | ' | ' |
Warrant derivative liability | 0 | 0 |
Level 2 input [Member] | ' | ' |
Liabilities: | ' | ' |
Warrant derivative liability | 0 | 0 |
Level 3 input [Member] | ' | ' |
Liabilities: | ' | ' |
Warrant derivative liability | $1,953 | $1,953 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Schedule of Reconciliation of Financial Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Financial liabilities: | ' | ' |
Beginning balance | $1,953 | $5,470 |
Additions | 0 | 0 |
Unrealized change in fair value | 0 | -3,785 |
Ending balance | $1,953 | $1,685 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Summary of Changes in Noncontrolling Interest (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Noncontrolling Interest [Abstract] | ' | ' |
Balance at beginning of period | $243,167 | $97,101 |
Contributions by noncontrolling interest owners | 476 | 0 |
Net income attributable to noncontrolling interest | 8,601 | 9,932 |
Balance at end of period | $252,244 | $107,033 |
Earnings_Per_Share_Earning_Per
Earnings Per Share - Earning Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Income (loss) from continuing operations | ($7,877) | $36,582 |
DISCONTINUED OPERATIONS | -131 | -485 |
NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST | ($8,008) | $36,097 |
Weighted average common shares outstanding | 41,806 | 39,444 |
Effect of dilutive securities | 0 | 191 |
Weighted average common shares, diluted | 41,806 | 39,635 |
BASIC EARNINGS (LOSS) PER SHARE: | ' | ' |
Income (loss) from continuing operations | ($0.19) | $0.93 |
Discontinued operations | $0 | ($0.01) |
Basic earnings (loss) per share | ($0.19) | $0.92 |
Diluted earnings (loss) per share: | ' | ' |
Income (loss) from continuing operations | ($0.19) | $0.92 |
Discontinued operations | $0 | ($0.01) |
Diluted earnings (loss) per share | ($0.19) | $0.91 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Options [Member] | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, Amount | 4.1 | 2.9 |
Warrants [Member] | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share, Amount | 2.5 | 2.4 |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Discontinued Operations Net Loss on Dispositions (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Net income (loss) from discontinued operations | ($131) | ($485) |
Oman [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Net income (loss) from discontinued operations | -16 | -341 |
Colombia [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Net income (loss) from discontinued operations | ($115) | ($144) |
Investment_in_Equity_Affiliate2
Investment in Equity Affiliate - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 16, 2013 | Dec. 16, 2013 | Dec. 16, 2013 | Dec. 16, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Tranches | Harvest Holding [Member] | Harvest Natural Resources [Member] | Petroandina [Member] | Petroandina [Member] | Petroandina [Member] | Petroandina [Member] | Petrodelta, S.A. [Member] | Petrodelta, S.A. [Member] |
Tranches | Petrodelta, S.A. [Member] | Scenario, Actual [Member] | Scenario, Plan [Member] | Harvest Natural Resources [Member] | Harvest Natural Resources [Member] | ||||
Harvest Holding [Member] | Harvest Holding [Member] | Scenario, Actual [Member] | Scenario, Plan [Member] | ||||||
First Closing [Member] | Harvest Holding [Member] | Harvest Holding [Member] | |||||||
First Closing [Member] | |||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of closings (tranches) for sale of Shares | 2 | 2 | ' | ' | ' | ' | ' | ' | ' |
Effective interest held in Petrodelta by Harvest Natural Resources Inc through Harvest Vinccler Dutch Holding | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' |
Percent stake in subsidiary sold | ' | ' | ' | 29.00% | 80.00% | 29.00% | 80.00% | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | $868.40 | $756.70 |
Investment_in_Equity_Affiliate3
Investment in Equity Affiliate - Summary of Financial Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Adjustments to increase (decrease) net income under IFRS: | ' | ' |
Earnings from equity affiliate included in income | $18,887 | $49,471 |
Petrodelta, S.A. [Member] | ' | ' |
Revenues: | ' | ' |
Oil sales | 325,654 | 317,324 |
Gas sales | 866 | 1,201 |
Royalty | -109,084 | -105,533 |
Revenue, total | 217,436 | 212,992 |
Expenses: | ' | ' |
Operating expenses | 45,064 | 26,533 |
Workovers | 8,352 | 3,064 |
Depletion, depreciation and amortization | 26,312 | 20,465 |
General and administrative | 6,565 | 8,780 |
Windfall profits tax | 46,302 | 66,046 |
Windfall profits tax credit | 0 | -55,168 |
Total expenses | 132,595 | 69,720 |
Income from operations | 84,841 | 143,272 |
Gain (loss) on exchange rate | -55 | 186,721 |
Investment earnings and other | 313 | 1,400 |
Interest expense | -7,556 | -2,750 |
Income before income tax | 77,543 | 328,643 |
Current income tax expense | 52,318 | 137,609 |
Deferred income tax expense (benefit) | -23,238 | 3,378 |
Net income under IFRS | 48,463 | 187,656 |
Adjustments to increase (decrease) net income under IFRS: | ' | ' |
Deferred income tax (expense) benefit | 6,311 | -4,850 |
Depletion expense | -4,870 | -4,230 |
Reversal of windfall profits tax credit | 0 | -55,168 |
Sports law over accrual | 51 | 1,651 |
Net income under U.S. GAAP | 49,955 | 125,059 |
Equity interest in equity affiliate | 40.00% | 40.00% |
Income before amortization of excess basis in equity affiliate | 19,982 | 50,024 |
Amortization of excess basis in equity affiliate | -1,095 | -553 |
Earnings from equity affiliate included in income | $18,887 | $49,471 |
Investment_in_Equity_Affiliate4
Investment in Equity Affiliate - Schedule of Assets and Liabilities (Detail) (Petrodelta, S.A. [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Petrodelta, S.A. [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Current assets | $1,668,094 | $1,906,595 |
Property and equipment | 802,517 | 717,449 |
Other assets | 119,751 | 181,116 |
Current liabilities | 1,425,250 | 1,652,806 |
Other liabilities | 100,593 | 136,298 |
Net equity | $1,064,519 | $1,016,056 |
Investment_in_Equity_Affiliate5
Investment in Equity Affiliate - Petrodelta - Additional Information (Detail) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Feb. 28, 2013 |
USD ($) | Petrodelta, S.A. [Member] | Petrodelta, S.A. [Member] | Petrodelta, S.A. [Member] | ||
VEB | Minimum [Member] | Maximum [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' | ' | ' |
Gain on revaluation of its assets and liabilities | $169.60 | ' | ' | ' | ' |
Change in exchange currency rate | ' | 6.3 | 11.3 | 4.3 | 6.3 |
Assets account, balance | ' | ' | 1,292 | ' | ' |
Liabilities account, balance | ' | ' | 6,208 | ' | ' |
Venezuela_Other_Additional_Inf
Venezuela - Other - Additional Information (Detail) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
USD ($) | USD ($) | Harvest Vinccler [Member] | |
VEB | |||
Intercompany Foreign Currency Balance [Line Items] | ' | ' | ' |
Exchange value of foreign currency to domestic currency | $0.20 | $0.40 | ' |
Foreign currency average exchange rate | 14.27 | 5.8 | ' |
Assets account, balance | ' | ' | 11.2 |
Liabilities account, balance | ' | ' | 5.7 |
Gabon_Additional_Information_D
Gabon - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Dussafu PSC [Member] | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Oil and gas properties | $103.80 | $103.40 |
3D seismic data [Member] | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Acquisition of land as part of seismic acquisition survey | 1,260 | ' |
Indonesia_Additional_Informati
Indonesia - Additional Information (Detail) (Budong PSC [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Budong PSC [Member] | ' | ' |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ' | ' |
Impaired expense | $0.60 | ' |
Oil and gas properties | ' | 4.6 |
Net impaired charges of property | 4.5 | ' |
Valuation allowance expect to recover | $2.80 | ' |
Debt_Summary_of_Debt_Detail
Debt - Summary of Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Discount on 11% senior unsecured notes | $0 | ($2,270) |
Less current portion | 0 | -77,480 |
Total debt | 0 | 0 |
11% senior unsecured notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes, unsecured, with interest at 11% | $0 | $79,750 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Jan. 11, 2014 | Mar. 31, 2014 | Dec. 16, 2013 | Dec. 16, 2013 | |
11% senior unsecured notes [Member] | 11% senior unsecured notes [Member] | Scenario, Actual [Member] | Scenario, Actual [Member] | |||
First Closing [Member] | First Closing [Member] | |||||
Harvest Holding [Member] | 11% senior unsecured notes [Member] | |||||
Petroandina [Member] | Harvest Holding [Member] | |||||
Petroandina [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Percent stake in subsidiary sold | ' | ' | ' | ' | 29.00% | 29.00% |
Proceeds from sale of interest in subsidiary before any transaction costs | ' | ' | ' | ' | $125,000,000 | $125,000,000 |
Notes redeemed | ' | ' | 80,000,000 | ' | ' | ' |
Loss on extinguishment of debt | -4,749,000 | 0 | ' | 3,600,000 | ' | ' |
Write off of discount on debt | ' | ' | ' | 2,300,000 | ' | ' |
Placement fees and other transaction costs | ' | ' | ' | 1,300,000 | ' | ' |
Cost related to extinguishment | ' | ' | ' | $1,200,000 | ' | ' |
Warrant_Derivative_Liability_A
Warrant Derivative Liability - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2010 |
In Millions, except Share data, unless otherwise specified | |||
Line of Credit Facility [Line Items] | ' | ' | ' |
Fair value of warrants per warrant | 1.07 | 1.07 | ' |
Term Loan Facility [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Warrants Outstanding | 1,826,001 | 1,826,001 | ' |
Loan facility amount | ' | ' | $60 |
Warrant_Derivative_Liabilities
Warrant Derivative Liabilities - Schedule of Significant Assumptions or Ranges (Detail) (Warrants derivative liabilities [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Significant assumptions (or ranges): | ' | ' |
Term (years) | '1 year 6 months 29 days | '1 year 9 months 29 days |
Level 1 input [Member] | ' | ' |
Significant assumptions (or ranges): | ' | ' |
Stock price | 4.52 | 4.52 |
Risk-free rate | 0.34% | 0.34% |
Level 2 input [Member] | ' | ' |
Significant assumptions (or ranges): | ' | ' |
Volatility | 94.00% | 94.00% |
Dividend yield | 0.00% | 0.00% |
Level 3 input [Member] | ' | ' |
Significant assumptions (or ranges): | ' | ' |
Scenario probability (fundamental change event/debt raise/equity raise) | '60%/40%/0 % | '60%/40%/0 % |
Warrant_Derivative_Liabilities1
Warrant Derivative Liabilities - Income (Loss) Associated with Changes in Fair Values of Our Warrant Derivative Financial Instruments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Unrealized gain (loss) on warrant derivatives | $0 | $3,785 |
Warrants derivative liabilities [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Unrealized gain (loss) on warrant derivatives | $0 | $3,785 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||
Jul. 24, 2013 | 31-May-11 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2007 | Aug. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2004 | Mar. 31, 2014 | 4-May-12 | Jul. 31, 2007 | Jun. 30, 2007 | Apr. 30, 2005 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | USD ($) | USD ($) | IDR | USD ($) | USD ($) | Uracoa Municipality Tax Assessments [Member] | Uracoa Municipality Tax Assessments [Member] | Uracoa Municipality Tax Assessments [Member] | Uracoa Municipality Tax Assessments [Member] | Uracoa Municipality Tax Assessments [Member] | Libertador Municipality Tax Assessments [Member] | Libertador Municipality Tax Assessments [Member] | Libertador Municipality Tax Assessments [Member] | Libertador Municipality Tax Assessments [Member] | Libertador Municipality Tax Assessments [Member] | Farmout Agreements [Member] | |
Plaintiff | Claim | Claim | Claim | Claim | Assessment | Claim | Claim | Claim | Claim | Assessment | USD ($) | ||||||
Legal Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of initial exploration phase | ' | ' | '6 years | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date granted for extended period of initial exploration phase | ' | ' | 15-Jan-17 | 15-Jan-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended period of initial exploration phase | ' | ' | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of expected amount to pay partner | ' | ' | 7.10% | 7.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amount to pay partner | ' | ' | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of fixed obligations | ' | ' | 4,000,000 | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses of fixed obligation | ' | ' | 500,000 | ' | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount advanced by partners to satisfy the obligations | ' | ' | 900,000 | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total contractual obligations | ' | ' | 1,300,000 | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Complaint alleged damages amount | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Plaintiffs | 70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation claim for land local currency | ' | ' | ' | 16,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation claim for land USD value at cost | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation claim for land USD value net to cost sharing interest | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cost sharing interest in work commitments | ' | ' | 71.61% | 71.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased land value, at cost | ' | ' | 4,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Blocked payment at cost | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Blocked payment net to cost sharing interest | ' | 700,000 | 734,000 | ' | ' | 734,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of OFAC application for return of blocked funds | ' | ' | 26-Oct-11 | 26-Oct-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost sharing interest | ' | 66.67% | 66.67% | 66.67% | ' | 66.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of tax assessments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | 5 | ' |
Number of claim filed | ' | ' | ' | ' | ' | ' | 2 | 2 | 2 | 3 | ' | ' | 2 | 2 | 1 | ' | ' |
Number of claim dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Impairment charge | ' | ' | 4,460,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 |
Termination date of employment contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Nov-13 |
Accrued charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 |
Operating_Segments_Segment_Inc
Operating Segments - Segment Income (Loss) Attributable to Harvest (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net income (loss) from continuing operations | ($7,877) | $36,582 |
DISCONTINUED OPERATIONS | -131 | -485 |
Net income (loss) attributable to Harvest | -8,008 | 36,097 |
Continuing Operations [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net income (loss) from continuing operations | -7,877 | 36,582 |
Continuing Operations [Member] | Operating Segments [Member] | Government of Venezuela [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net income (loss) from continuing operations | 9,135 | 39,076 |
Continuing Operations [Member] | Operating Segments [Member] | Gabon [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net income (loss) from continuing operations | -1,151 | -941 |
Continuing Operations [Member] | Operating Segments [Member] | Indonesia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net income (loss) from continuing operations | -5,235 | -1,279 |
Continuing Operations [Member] | Operating Segments [Member] | United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net income (loss) from continuing operations | -10,626 | -274 |
Discontinued operations [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
DISCONTINUED OPERATIONS | ($131) | ($485) |
Operating_Segments_Operating_S
Operating Segments - Operating Segment Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
TOTAL ASSETS | $641,971 | $734,880 |
Continuing Operations [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
TOTAL ASSETS | 641,959 | 734,851 |
Continuing Operations [Member] | Operating Segments [Member] | Government of Venezuela [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
TOTAL ASSETS | 518,617 | 500,946 |
Continuing Operations [Member] | Operating Segments [Member] | Gabon [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
TOTAL ASSETS | 106,177 | 107,851 |
Continuing Operations [Member] | Operating Segments [Member] | Indonesia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
TOTAL ASSETS | 546 | 5,004 |
Continuing Operations [Member] | Operating Segments [Member] | United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
TOTAL ASSETS | 16,619 | 121,050 |
Discontinued operations [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
TOTAL ASSETS | $12 | $29 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Note payable to noncontrolling interest owner | $6,109 | $6,109 |
Notes payable maturity date | 30-Jun-16 | ' |
London Interbank Offered Rate (LIBOR) [Member] | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Interest rate on notes payable | 0.50% | ' |