Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HARVEST NATURAL RESOURCES, INC. | |
Entity Filer Category | Smaller Reporting Company | |
Entity Central Index Key | 845,289 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 11,520,293 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENT OF NET ASSETS $ in Thousands | Jun. 30, 2017USD ($) |
Liquidation [Member] | |
Cash and cash equivalents | $ 27,684 |
Accounts receivable | 2,693 |
Other assets | 60 |
Accounts payable, trade and other | (444) |
Liability for estimated costs in excess of estimated receipts during liquidation | (13,862) |
Accrued expenses | (11,207) |
COMMITMENTS AND CONTINGENCIES (Note 7) | |
NET ASSETS IN LIQUIDATION | $ 4,924 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEET $ in Thousands | Dec. 31, 2016USD ($) |
CURRENT ASSETS: | |
Cash and cash equivalents | $ 62,299 |
Accounts receivable | 24 |
Note receivable | 12,000 |
Accrued interest receivable | 307 |
Assets held for sale | 30,887 |
Prepaid expenses and other | 686 |
TOTAL CURRENT ASSETS | 106,203 |
PROPERTY AND EQUIPMENT: | |
Other administrative property, net | 749 |
TOTAL PROPERTY AND EQUIPMENT, net | 749 |
OTHER ASSETS | 145 |
TOTAL ASSETS | 107,097 |
CURRENT LIABILITIES: | |
Accounts payable, trade and other | 784 |
Accrued expenses | 6,929 |
Liabilities held for sale | 85 |
Other current liabilities | 100 |
TOTAL CURRENT LIABILITIES | 7,898 |
COMMITMENTS AND CONTINGENCIES (Note 7) | |
STOCKHOLDERS' EQUITY: | |
Preferred stock, par value $0.01 per share; authorized 5,000 shares; issued and outstanding, none | |
Common stock, par value $0.01 per share; shares authorized 37,500; shares issued 14,890; shares outstanding 11,043 | 149 |
Additional paid-in capital | 306,589 |
Accumulated deficit | (133,207) |
Treasury stock, at cost, 3,847 shares | (74,332) |
TOTAL HARVEST STOCKHOLDERS' EQUITY | 99,199 |
TOTAL LIABILITIES AND EQUITY | $ 107,097 |
CONSOLIDATED CONDENSED BALANCE4
CONSOLIDATED CONDENSED BALANCE SHEET (Parenthetical) | Dec. 31, 2016$ / sharesshares |
STOCKHOLDERS' EQUITY: | |
Preferred stock, par value | $ / shares | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Common stock, par value | $ / shares | $ 0.01 |
Common stock, shares authorized | 37,500,000 |
Common stock, shares issued | 14,890,000 |
Common stock, shares outstanding | 11,043,000 |
Treasury stock, at cost, shares | 3,847,000 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN NET ASSETS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
HARVEST STOCKHOLDER'S EQUITY - GOING CONCERN BASIS | $ 99,199 | ||
Liquidation [Member] | |||
HARVEST STOCKHOLDER'S EQUITY - GOING CONCERN BASIS | 99,199 | ||
Change in net realizable value of prepaid expenses | (617) | ||
Change in net realizable value of other administrative property | (732) | ||
Change in net realizable value of other assets | (44) | ||
Change in settlement amounts of accrued expenses | 949 | ||
Estimated liquidation and operating costs in excess of operating receipts during liquidation | (28,241) | ||
Total Effects of adopting the Liquidation Basis of Accounting: | $ (28,685) | ||
NET ASSETS IN LIQUIDATION | $ 72,241 | $ 70,514 | |
Liquidation Dividend | (66,242) | (66,242) | |
Proceeds from sale of Harvest Dussafu | 31,837 | 31,837 | |
Collection of note and interest receivable | 12,307 | ||
Other changes in cash and cash equivalents | (5,105) | (12,517) | |
Change in net realizable value of accounts receivable | 2,550 | 2,669 | |
Change in assets held for sale due to completion of sale | (31,194) | (30,887) | |
Change in net realizable value of prepaid expenses | 69 | 69 | |
Change in net realizable value of other administrative property | 17 | 17 | |
Change in net realizable value of other assets | 41 | 41 | |
Change in accrued interest receibable due to collection | (307) | ||
Change in note receivable due to collection | (12,000) | ||
Change in settlement amounts of accounts payable, trade | (358) | 340 | |
Change in liabilities held for sale due to completion of sale | 405 | 85 | |
Change in settlement amounts of accrued expenses | (4,607) | (5,227) | |
Change in liability for estimated costs in excess of estimated receipts during liquidation | 5,524 | 14,379 | |
Change in settlement amounts of deferred tax liabilities | 100 | ||
Total changes in net assets in liquidation | (67,317) | (65,590) | |
NET ASSETS IN LIQUIDATION | $ 4,924 | $ 4,924 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | ||
EXPENSES: | |||
Depreciation and amortization | $ 10 | $ 30 | |
Exploration expense | 214 | 271 | |
General and administrative | 3,877 | 8,885 | |
Total expense | 4,101 | 9,186 | |
LOSS FROM CONTINUING OPERATIONS | (4,101) | (9,186) | |
DISCONTINUED OPERATIONS, net of income taxes | (8,955) | (20,874) | |
NET LOSS | (13,056) | (30,060) | |
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST OWNERS | (158) | (3,066) | |
NET LOSS AND COMPREHENSIVE LOSS ATTRIBUTABLE TO HARVEST | [1] | $ (12,898) | $ (26,994) |
Basic and dilutive loss per share: | |||
Loss from continuing operations | $ (0.32) | $ (0.71) | |
Loss from discontinued operations | (0.68) | (1.39) | |
Basic and dilutive loss per share | $ (1) | $ (2.10) | |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic and diluted shares outstanding | 12,854 | 12,854 | |
[1] | (b) Net of net loss attributable to noncontrolling interest owners. |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
Net loss | $ (30,060) |
Loss from discontinued operations net of income taxes | 20,874 |
Adjustments to reconcile net loss to net cash used in operating activities: | |
Depreciation and amortization | 30 |
Share-based compensation-related charges | 1,914 |
Changes in operating assets and liabilities: | |
Accounts receivable | 1,761 |
Prepaid expenses and other | 364 |
Accounts payable | (108) |
Accrued expenses | 3,190 |
NET CASH USED IN CONTINUING OPERATING ACTIVITIES | (2,035) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |
Additions of property and equipment, net | (193) |
NET CASH USED IN INVESTING ACTIVITIES | (193) |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | |
Cash used in operating activities of discontinued operations | (3,407) |
Cash provided by investing activities of discontinued operations | 480 |
Cash provided by financing activities of discontinued operations | 5,924 |
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 2,997 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 769 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,458 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,227 |
Continuing Operations: | |
Cash paid during the year for income taxes | 8 |
Continuing Operations: | |
Increase in current liabilities related to additions of property and equipment | 33 |
Decrease in current liabilities related to additions to property and equipment | (43) |
Accrued interest paid in-kind | $ 1,736 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization [Abstract] | |
Organization | N ote 1 – Organization Organization Prior to the sale of our oil and gas interests in Gabon, Harvest Natural Resources, Inc. (“Harvest” or the “Company”) was a petroleum exploration and production company incorporated under Delaware law in 1988. We held exploration acreage offshore of Gabon and operated from our Houston, Texas headquarters. See Sale of Gabon Interests below for further information. In accordance with the Company’s Plan of Complete Liquidation, Dissolution, Winding Up and Distribution (the “Plan of Dissolution”), the Company filed a certificate of dissolution with the Delaware Secretary of State on May 4, 2017, which dissolved the Company as of 8:00 p.m. on May 4, 2017. In accordance with the General Corporation Law of the State of Delaware, the Company’s sole purpose is winding up the business affairs of the Company in accordance with the Plan of Dissolution. See Plan of Dissolution and Liquidation below for further information. Sale of Gabon Interests On December 21, 2016, the Company and its wholly owned subsidiary, HNR Energia B.V., a Curacao company (“HNR Energia”) , entered into a Sale and Purchase Agreement (the “Sale and Purchase Agreement”) with BW Energy Gabon Pte. Ltd., a private Singapore company (“BW Energy”), to sell all of Harvest’s oil and gas interests in Gabon. Harvest’s stockholders approved the proposed sale at a special meeting on February 23, 2017. The sale was subject to additional conditions, such as approval from the Gabonese government, before it could close. We received the Gabonese government’s approval on April 5, 2017 and we completed the sale on April 10, 2017. See Note 6 – Assets and Liabilities Held for Sale and Discontinued Operations for more information. Under the terms of the Sale and Purchase Agreement, BW Energy acquired HNR Energia's 100 percent interest in Harvest Dussafu B.V. (“Harvest Dussafu”), which owns a 66.667 percent interest in the Dussafu production sharing contract located offshore Gabon, for $32.0 million in cash, subject to certain adjustments, including reimbursement for approximately $2.3 million of expenditures in respect of the interest since September 30, 2016. At the closing of the transaction, $2.5 million of the $32.0 million purchase price was retained in an escrow account to satisfy any post-closing claims the purchaser may have against Harvest and HNR Energia under the Sale and Purchase Agreement. On August 7, 2017, $2.1 million was released from the escrow account to HNR Energia. The remaining $0.4 million held in escrow is expected to be released in accordance with the terms of the escrow agreement once Harvest provides certain operational information to BW Energy. As of June 30, 2017, before the receipt of the $2.1 million from the escrow account, the gross proceeds, including the reimbursements of $2.3 million, from the sale of Harvest Dussafu were approximately $ 31.8 million. Plan of Dissolution and Liquidation On October 7, 2016, following the sale of our Venezuelan interests, we announced that we were evaluating a possible dissolution of Harvest. On December 30, 2016, the Board of Directors of Harvest (the “Board”) unanimously determined that a proposed dissolution was advisable and in the best interests of Harvest and our stockholders, adopted an initial plan of dissolution and liquidation, authorized the proposed dissolution, recommended that our stockholders authorize the proposed dissolution in accordance with the Plan of Dissolution, and generally authorized our officers to take all necessary actions to affect our dissolution. At its meeting held on January 12, 2017, our Board further discussed the proposed dissolution and liquidation, rescinded its adoption of the initial plan of dissolution and liquidation and adopted the Plan of Dissolution, which included changes based on comments received from tax and other counsel. On February 23, 2017, the holders of a majority of all outstanding shares of Harvest’s common stock a uthorize d the d issolution at a special meeting of Harvest’s stockholders. In light of closing the Gabon transaction, the Board proceeded with the plan for Harvest’s dissolution. Under the dissolution, liquidation and winding up process under Delaware law, the proceeds from the Gabon transaction and any other proceeds will be combined with other Harvest assets to be distributed to Harvest’s stockholders in accordance with the Plan of Dissolution, subject to certain payments and costs during Harvest’s winding up process. On April 13, 2017 , the Board declared an initial cash distribution of $5.75 per share of common stock payable to holders of record as of April 24, 2017 . The total initial liquidating distribution of $66.2 million was made on May 4, 2017. Following payment of the initial liquidating distribution, Harvest’s common stock ceased to be traded on the New York Stock Exchange as of 8:00 p.m. Eastern time on May 4, 2017. Although our Board has not established a firm timetable for further liquidating distributions, the Board intends to, subject to contingencies inherent in winding up our business, make such distributions, if any, as soon as practicable and periodically as we pay our remaining liabilities and obligations subject to law. Further liquidating distributions, if any, will be made in cash. The timing and amount of interim liquidating distributions and final liquidating distributions will depend on the timing and amount of proceeds the Company may receive less any costs incurred and less obligations, in connection with any litigation and the extent to which reserves for current or future liabilities are required. Accordingly, there can be no assurance that there will be any further liquidating distributions. Because of the costs associated with preparing and filing our annual, quarterly and current reports under applicabl e securities laws, we are seek ing relief from all or some of our reporting obligations, and we may determine that further reporting is no longer appropriate under the guidelines of the S ecurities and E xchange C ommission (“SEC”) and its staff. If we receive this relief or if we otherwise make this determination, certain information about us (including audited financial information) currently reported to you and the public would no longer be available. During the liquidation of our assets, the Board may authorize the Company to pay all costs and expenses, including without limitation, any brokerage, agency, professional and other fees and expenses of persons rendering services, including legal counsel, accountants and tax advisors, to the Company in connection with the collection, sale, exchange or other disposition of the Company's property and assets and the implementation of the Plan of Dissolution. Under the Liquidation Basis of Accounting, assets are stated at their estimated net realizable values, liabilities are stated at contractual amounts and estimated liabilities are stated at their estimated settlement amounts, including those estimated costs associated with implementing the Plan of Dissolution. Estimates will be periodically reviewed and adjusted. Uncertainties as to the precise net value of our non-cash assets and the ultimate amount of our liabilities make it impracticable to predict the aggregate net value that may ultimately be distributable to stockholders. Claims, liabilities and future expenses for operations will continue to be incurred with the execution of the plan. These costs will reduce the amount of net assets available for ultimate distribution to stockholders. Although we do not believe that a precise estimate of those expenses can currently be made, we believe that available cash is adequate to provide for our obligations, liabilities, operating costs and claims, and to make cash distributions to our stockholders. If available cash is not adequate to provide for our obligations, liabilities, operating costs and claims, estimated future liquidating distributions of cash to our stockholders will be reduced and stockholders may be required to repay liquidating distributions previously made by the Company. Rights Agreement to Protect Net Operating Losses On February 16, 2017, the Board adopted a Rights Agreement (the “Rights Plan”) designed to preserve the Company’s tax assets. As of December 31, 2016, the Company had cumulative net operating loss carryforwards ("NOLs") of approximately $56.0 million, which can be utilized in certain circumstances to offset possible future U.S. taxable income. Harvest’s ability to use these tax benefits would be limited if it were to experience an “ownership change” as defined under Section 382 of the Internal Revenue Code. An ownership change would occur if stockholders that own (or are deemed to own) at least five percent or more of Harvest’s outstanding common stock increased their cumulative ownership in the Company by more than 50 percentage points over their lowest ownership percentage within a rolling three -year period. The Rights Plan reduces the likelihood that changes in Harvest’s investor base would limit Harvest’s future use of its tax benefits. In connection with the adoption of the Rights Plan, the Board declared a non-taxable dividend of one preferred share purchase right for each share of the Company's common stock outstanding as of February 17, 2017. Effective as of the close of business on February 17, 2017, if any person or group acquires five percent or more of the outstanding shares of the Company's common stock, or if a person or group that already owns five percent or more of the Company's common stock acquires additional shares (“acquiring person or group”), then, subject to certain exceptions, there would be a triggering event under the Rights Plan. The rights would then separate from the Company's common stock and entitle the registered holder to purchase from the Company one one-hundredth of a share of the Series D Preferred Stock of the Company at a price of $26 , subject to adjustment. Rights held by the acquiring person or group will become void and will not be exercisable. The Board has the discretion to exempt certain transactions, persons or entities from the operation of the Rights Plan if it determines that doing so would not jeopardize or endanger the Company's use of its tax assets or is otherwise in the best interests of the Company. The Board also has the ability to amend or terminate the Rights Plan prior to a triggering event. The rights issued under the Rights Plan will expire on February 17, 2020, or on an earlier date if certain events occur, as described more fully in the Rights Plan that the Company filed with the SEC on February 21, 2017. The Rights Plan was amended to eliminate our dissolution as an event of termination. |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2017 | |
Liquidity [Abstract] | |
Liquidity | Note 2 – Liquidity After the completion of the sale of our Gabon interests on April 10, 2017, our primary assets are cash and accounts receivable. We will use the proceeds from the sale of our Gabon interests to pay expenses and taxes, if any, associated with the sale and for other operating expenses. Subject to determinations to be made by our Board, the remaining proceeds will be used to provide reserves of funds for future or contingent liabilities as may be determined necessary by our Board pursuant to Delaware law, to pay or settle existing obligations, to pay costs (including taxes) associated with the liquidation and winding up of our business, and to distribute remaining assets to our stockholders. We expect the cash on hand will be adequate to meet our liquidity requirements for dissolution of the Comp any. On April 13, 2017 , the B oard declared an initial cash di stribution of $5.75 per share of common stock payable to holders of record as of April 24, 2017 . The total initial liquidating distribution of $66.2 million was made on May 4 , 2017 . O ther contingent item s include: (1) the gain contingency represented by our lawsuit against Newfield (as to which the likelihood of revenues to us cannot be assured and the amount of any success cannot reasonably be estimated (2) the funds blocked by Office of Foreign Assets Control (“ OFAC ”) in the LOGSA matter, which is a gain contingency of $0.7 million if we are able to recoup these funds, and (3) various other assets whose realizable cash value is minimal . See Note 7 – Commitments and Contingencies for further information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 – Summary of Significant Accounting Policies Liquidation Basis of Accounting As a result of the approval of the Plan of Dissolution, the Company adopted the Liquidation Basis of Accounting, effective January 1, 2017. This basis of accounting is considered appropriate when, among other things, liquidation of the Company is imminent, as defined in ASC 205-30 “Presentation of Financial Statements – Liquidation Basis of Accounting”. Under the Liquidation Basis of Accounting the following financial statements are no longer presented (except for periods prior to the adoption of the Liquidation Basis of Accounting): a consolidated condensed balance sheet, a consolidated condensed statement of operations and comprehensive loss and a consolidated condensed statement of cash flows. The consolidated condensed statement of net assets and the consolidated condensed statement of changes in net assets are the principal financial statements presented under the Liquidation Basis of Accounting. Although the Plan of Dissolution was approved by the stockholders on February 23, 2017, the Company is using the liquidation basis of accounting effective January 1, 2017 as a convenience date. Any activity between January 1, 2017 and February 23, 2017 would not be materially different under the going concern basis. Under the Liquidation Basis of Accounting , all of the Company’s assets have been stated at their estimated net realizable value and are based on current contracts, estimates and other indications of sales value net of estimated selling costs. All liabilities of the Company have been stated at contractual amounts and estimated liabilities are at their estimated settlement amounts, including those estimated costs associated with implementing the Plan of Dissolution. These amounts are presented in the accompanying consolidated condensed statement of net assets. These estimates will be periodically reviewed and adjusted as appropriate. There can be no assurance that these estimated values will be realized. Such amounts should not be taken as an indication of the timing or amount of future distributions or our actual dissolution. The valuation of assets at their net realizable value and liabilities at their anticipated settlement amount represent estimates, based on present facts and circumstances, of the net realizable value of the assets and the costs associated with carrying out the Plan of Dissolution. The actual values and costs associated with carrying out the Plan of Dissolution are expected to differ from amounts reflected in the accompanying financial statements because of the plan’s inherent uncertainty. These differences may be material. In particular, the estimates of our costs will vary with the length of time necessary to complete the Plan of Dissolution. Accordingly, it is not possible to predict with certainty the timing or aggregate amount which may ultimately be distributed to stockholders and no assurance can be given that the possible future distributions will reflect the estimate presented in the accompanying consolidated condensed statement of net assets. Principles of Consolidation The consolidated condensed financial statements include the accounts of all wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. Third-party interests in our majority-owned subsidiaries are presented as noncontrolling interests owners. Basis of Presentation The accompanying interim unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in conjunction with the rules and regulations of the S EC . The results for such interim periods are not necessarily indicative of the results to be expected for the year. In the opinion of management, all adjustments considered necessary for a fair presentation of the results for the respective periods have been reflected. These consolidated condensed financial statements and accompanying notes should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2016. Reclassifications Certain reclassifications related to discontinued operations have been made to prior period amounts. These reclassifications did not affect our consolidated condensed financial results. Use of Estimates In preparing the consolidated condensed financial statements in conformity with GAAP including the Liquidation Basis of Accounting , management is required to make estimates and assumptions that affect the reported amounts of assets, including net assets in liquidation, and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated condensed financial statements and the reported amounts of income and expense for the reporting period. Actual results could differ from those estimates. Discontinued Operations Prior to the adoption of the Liquidation Basis of Accounting , the Company followed the guidance of the Presentation of Property, Plant, and Equipment Topics of the ASC, with respect to long-lived assets classified as held for sale. The ASC required that the results of operations, including impairment, gains and losses related to the properties that were sold or properties that were intended to be sold, be presented as discontinued operations in the statements of operations for all periods presented and the assets and liabilities of properties intended to be sold were to be separately classified on the balance sheet. Properties designated as held for sale were carried at the lower of cost or fair value less costs to sell and were not depreciated. Net Loss Per Share Prior to the adoption of the Liquidation Basis of Accounting , the Company reported basic net loss per share data by dividing net loss by the weighted average number of shares common stock outstanding during each period. Diluted net loss per share was computed by dividing net loss by the weighted average number of shares of common stock outstanding, including the dilutive effect, if any, of options and warrants. The diluted net loss per share calculation for the three months ended June 30, 2016 excluded 1.7 million options and 8.5 million warrants because we were in a loss position. The diluted net loss per share calculation for the six months ended June 30, 2016 excluded 1.7 million options and 8.5 million warrants because we were in a loss position. Reportable Segments We previously allocated resources to and assessed the performance of our operations by segments that were organized by unique geographic and operating characteristics. The segments were organized in order to manage regional business, currency and tax related risks and opportunities. Operations included under the heading “United States” included corporate management, cash management, business development and financing activities performed in the United States and other countries, which did not meet the requirements for separate disclosure. All intersegment revenues, other income and equity earnings, expenses and receivables were eliminated in order to reconcile to consolidated totals. Corporate general and administrative and interest expenses were included in the United States segment and are not allocated to other operating segments. As of December 31, 2016 (in thousands) Segment Assets United States and other $ 76,210 Assets held for sale (a) 30,887 Total assets $ 107,097 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Segment Loss Attributable to Harvest United States and other $ (4,101) $ (9,186) Loss from continuing operations (4,101) (9,186) Discontinued operations (a) (8,797) (17,808) Net loss attributable to Harvest (b) $ (12,898) $ (26,994) (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. (b) Net of net loss attributable to noncontrolling interest owners. Other Administrative Property Prior to adoption of Liquidation Basis of Accounting , furniture, fixtures and equipment were recorded at cost and depreciated using the straight-line method over their estimated useful lives, which ranged from three to five years. Leasehold improvements were recorded at cost and amortized using the straight-line method over the life of the applicable lease. For the three and six months ended June 30, 2016, depreciation expense was $10 thousand and $30 thousand in continuing operations, respectively. Other Assets Other assets at June 30, 2017 include deposits and at December 31, 2016 include deposits and long-term prepaid insurance. Capitalized Interest Prior to adoption of Liquidation Basis of Accounting , we capitalized interest costs for qualifying oil and natural gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production and interest costs have been incurred. The capitalization period continues as long as these events occur. The average additions for the period are used in the interest capitalization calculation. During the three and six months ended June 30, 2016, we did not capitalize interest costs due to insufficient on-going activity related to our oil and natural gas activities. 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”). ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: · Level 1 – Inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities. · Level 2 – Inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly. · Level 3 – Inputs to the valuation techniques that are unobservable for the assets or liabilities. Financial instruments, which potentially subject us to concentrations of credit risk, are primarily cash and cash equivalents, accounts receivable and stock appreciation rights (“SARs”). We maintain cash and cash equivalents in bank deposit accounts with commercial banks, which at times may exceed the federally insured limits. We have not experienced any losses from such investments. Concentrations of credit risk with respect to accounts receivable are limited due to the nature of our receivables. In the normal course of business, collateral is not required for financial instruments with credit risk. The estimated fair value of cash and cash equivalents and accounts receivable, prepaid costs, accounts payable, accrued expenses and other current liabilities approximate their carrying value due to their short-term nature (Level 1). The following table set forth by level within the fair value hierarchy our financial liabilities that were accounted for at fair value as of December 31, 2016 . As of December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Recurring Liabilities: SARs liability $ — $ 1,903 $ — $ 1,903 $ — $ 1,903 $ — $ 1,903 As of June 30, 2017, no SARs liability was included on our consolidated condensed statement of net assets. During the three months ended June 30, 2017 and the six months ended June 30, 2017, SARs were exercised resulting in payments of $0.6 million and $1.0 million, respectively. As of December 31, 2016 , the fair value of our liability awards included $ 1.9 million for our SARs which were recorded in accrued expenses. Derivative Financial Instruments Prior to adoption of Liquidation Basis of Accounting and as required by ASC 820, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. As of June 30, 2017 and December 31, 2016, we did not have derivative instruments. Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis The following table provides a reconciliation of financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial assets - embedded derivative asset (a) : Beginning balance $ 5,001 $ 5,010 Additions 447 447 Change in fair value 1,696 1,687 Ending balance $ 7,144 $ 7,144 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial liabilities - warrant derivative liability (a) : Beginning balance $ 9,564 $ 5,503 Change in fair value 6,853 10,914 Ending balance $ 16,417 $ 16,417 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial liabilities - stock appreciation rights Beginning balance $ 120 $ 50 Change in fair value 121 191 Ending balance $ 241 $ 241 During three and six months ended June 30, 2016, no transfers were made between Level 1, Level 2 and Level 3 assets or liabilities. Share-Based Compensation We used the fair value based method of accounting for share-based compensation. We utilized the Black-Scholes option pricing model or a Monte Carlo simulation, as appropriate based on the attributes of the instrument, to measure the fair value of stock options and SARs on their grant dates. At June 30, 2017, no outstanding SARs or options have economic value. In March 2017, stock options were exercised for 727,671 common shares resulting in cash proceeds to Harvest of $0.1 million. From the common shares issued, 528,681 shares were surrendered as treasury shares to pay the exercise price and for taxes. In April 2017, stock options were exercised for 366,131 common shares resulting in cash proceeds to Harvest of $1.1 million. From the common shares issued, 87,761 shares were surrendered as treasury shares to pay the exercise price and for taxes. The following table is a summary of compensation expense recorded in general and administrative expense in our consolidated condensed statements of operations and comprehensive loss by type of awards: Employee Stock-Based Compensation Six Months Ended June 30, 2016 (in thousands) Equity based awards: Stock options $ 1,113 Restricted stock 68 RSUs 149 Total expense related to equity based awards 1,330 Liability based awards: SARs 238 RSUs 346 Total expense related to liability based awards 584 Total compensation expense $ 1,914 The assumptions summarized in the following table were used to calculate the fair value of the SARs classified as Level 3 instruments that were outstanding as of June 30, 2016: Fair Value Hierarchy Level As of June 30, 2016 Significant assumptions (or ranges): Exercise price Level 1 input $ 4.52 Threshold price Level 1 input $ 10.00 Suboptimal exercise factor Level 3 input 2.50 Term (years) Level 1 input 4.06 Volatility Level 2 input 110.00 % Risk-free rate Level 1 input 0.87 % Dividend yield Level 2 input 0.0 % Income Taxes Deferred income taxes reflect the net tax effects, calculated at currently enacted rates, of (a) future deductible and taxable amounts attributable to events that have been recognized on a cumulative basis in the financial statements or income tax returns, and (b) operating loss and tax credit carryforwards. A valuation allowance for deferred tax assets is recorded when it is more likely than not that the benefit from the deferred tax asset will not be realized. Prior to adoption of Liquidation Basis of Accounting, we classified interest related to income tax liabilities and penalties as applicable, as interest expense. We recorded an immaterial late filing penalty during the three and six months ended June 30, 2017 and no penalties during the three and six months ended June 30, 2016. Since December 2013, we have provided deferred income taxes on undistributed earnings of our foreign subsidiaries where we are not able to assert that such earnings were permanently reinvested, or otherwise could be repatriated in a tax free manner, as part of our ongoing business. As of December 31, 2016, a deferred tax liability of $0.1 million was recorded based on the unremitted earnings of our foreign subsidiaries that would be repatriated to the U.S. pursuant to our overall Plan of Dissolution. With the Plan of Dissolution, the foreign subsidiaries will be dissolved and the previously unremitted earnings will be repatriated in 2017. The income tax event will be a current year item and no longer represent a deferred tax liability. In the first quarter of 2017, the deferred tax liability of $0.1 million was reversed resulting in a deferred tax benefit. For the current year, the Company expects to generate a net tax loss even with the inclusion of the previously unremitted earnings in taxable income. Consequently, no current income tax liability has been recorded during the three and six months ended June 30, 2017. Noncontrolling Interest Owners Changes in noncontrolling interest owners were as follows: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Balance at beginning of period $ (1,920) $ 447 Contributions by noncontrolling interest owners 383 924 Net loss attributable to noncontrolling interest owners (158) (3,066) Balance at end of period $ (1,695) $ (1,695) On October 7, 2016, the Company, and its wholly owned subsidiary, HNR Energia, completed the sale of all of HNR Energia’s 51% interest in Harvest Vinccler Dutch Holding, B.V. (“Harvest Holding”), to Delta Petroleum N.V., a limited liability company organized under the laws of Curacao (“Delta Petroleum”), pursuant to a share purchase agreement. With the sale and subsequent deconsolidation of Harvest Holding, we do not have any continuing involvement in Venezuela and no longer have non-controlling interest owners. New Accounting Pronouncements As a result of adopting Liquidation Basis of Accounting , we believe no new accounting pronouncements will have a material impact on our net assets in liquidation or changes in net assets in liquidation. |
Statement of Net Assets in Liqu
Statement of Net Assets in Liquidation | 6 Months Ended |
Jun. 30, 2017 | |
Statement of Net Assets in Liquidation [Abstract] | |
Statement of Net Assets in Liquidation | Note 4 – Statement of Net Assets in Liquidation As a result of the Board’s approval of the Plan of Dissolution, the Company adopted the Liquidation Basis of Accounting, effective January 1, 2017. Under the Liquidation Basis of Accounting , all of the Company’s assets have been stated at their estimated net realizable value and are based on current contracts, estimates and other indications of sales value net of estimated selling costs. All liabilities of the Company have been stated at contractual amounts and those estimated costs associated with implementing the Plan of Dissolution have been stated at their estimated settlement amounts. On April 13, 2017, the B oard declared an initial cash di stribution of $5.75 per share of common stock payable to holders of record as of April 24, 2017. The distribution was made on May 4, 2017 for a total initial liquidating distribution of $66.2 million. The valuation of assets at their net realizable value and liabilities at their anticipated settlement amount represent estimates, based on present facts and circumstances, of the net realizable value of the assets and the costs associated with carrying out the Plan of Dissolution . The actual values and costs associated with carrying out the Plan of Dissolution are expected to differ from amounts reflected in the accompanying financial statements because of the plan’s inherent uncertainty. The following is a reconciliation of Stockholders’ Equity under the going concern basis of accounting to net assets in liquidation under the Liquidation Basis of Accounting : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (unaudited) HARVEST STOCKHOLDERS' EQUITY AT DECEMBER 31, 2016 - GOING CONCERN BASIS $ 99,199 Effects of adopting the liquidation basis of accounting: Decrease due to reducing assets to their net realizable value (1,393) Increase due to reducing liabilities to their settlement amounts 949 Estimated liquidation and operating costs in excess of operating receipts during liquidation (28,241) Total effects of adopting the liquidation basis of accounting: (28,685) NET ASSETS IN LIQUIDATION - BEGINNING OF PERIOD $ 72,241 $ 70,514 Changes in net assets in liquidation: Change in net realizable value of cash and current assets (68,223) (62,902) Change in note receivable and accrued interest receivable due to collection — (12,307) Change in net realizable value of other administrative property (17) (17) Change in net realizable value of other assets (41) (41) Change in liability for estimated costs in excess of estimated receipts during liquidation 5,524 14,379 Change in settlement amounts of liabilities (4,560) (4,702) Total changes in net assets in liquidation (67,317) (65,590) NET ASSETS IN LIQUIDATION $ 4,924 $ 4,924 |
Liability for Estimated Costs i
Liability for Estimated Costs in Excess of Receipts During Liquidation | 6 Months Ended |
Jun. 30, 2017 | |
Liability For Estimated Costs In Excess Receipts During Liquidation [Abstract] | |
Liability for Estimated Costs in Excess of Receipts During Liquidation | Note 5 – Liability for Estimated Costs in Excess of Receipts during Liquidation The Liquidation Basis of Accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the Plan of Dissolution. These amounts can vary significantly due to, among other things, the costs of retaining personnel and others to oversee the liquidation, the cost of insurance, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with cessation of the Company’s operations, including an estimate of costs subsequent to that date (which would include reserve contingencies for the appropriate statutory periods). As a result, the Company has accrued the projected costs, including corporate overhead and specific liquidation costs of severance, professional fees, and other miscellaneous wind-down costs expected to be incurred during the projected period and required to complete the liquidation of the Company’s remaining assets. These accruals will be adjusted from time to time as projections and assumptions change. These costs are anticipated to be paid throughout the liquidation period. The accruals related to dissolution costs are primarily related to severance and employment contract payments of $ 4.2 million a nd other dissolution costs of $ 4.0 million as of June 30, 2017. Based on the transition to the Liquidation Basis of Accounting on January 1, 2017, the Company accrued the following income and expenses expected to be earned or incurred during dissolution and liquidation for the three and six months ended June 30, 2017. As of March 31, 2017 Remeasurement of Assets and Liabilities Accrual based Expenditures/(Receipts) As of June 30, 2017 (in thousands) Assets: Additional proceeds from sale of Harvest Dussafu $ 3,548 $ — $ (3,548) $ — Estimated net inflows from exercise of stock options 1,130 — (1,130) — Estimated net inflows from interest earnings 344 3 (58) 289 Liabilities: Estimated transaction costs related to the sale of Harvest Dussafu (1,082) 16 1,066 — General overhead costs (6,385) (893) 1,319 (5,959) Severance and employment contract payments (11,959) (342) 8,082 (4,219) Other dissolution costs (4,982) 295 714 (3,973) Liability for estimated costs in excess of estimated receipts during liquidation $ (19,386) $ (921) $ 6,445 $ (13,862) January 1, 2017 Remeasurement of Assets and Liabilities Accrual based Expenditures/(Receipts) As of June 30, 2017 (in thousands) Assets: Additional proceeds from sale of Harvest Dussafu $ 2,046 $ 1,502 $ (3,548) $ — Estimated net inflows from exercise of stock options — 1,130 (1,130) — Estimated net inflows from interest earnings 648 3 (362) 289 Liabilities: Estimated transaction costs related to the sale of Harvest Dussafu (1,148) (267) 1,415 — General overhead costs (9,321) (893) 4,255 (5,959) Severance and employment contract payments (14,563) (342) 10,686 (4,219) Other dissolution costs (5,903) 295 1,635 (3,973) Liability for estimated costs in excess of estimated receipts during liquidation $ (28,241) $ 1,428 $ 12,951 $ (13,862) |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale and Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Assets and Liabilities Held for Sale and Discontinued Operations [Abstract] | |
Assets and Liabilities Held for Sale and Discontinued Operations | Note 6 – Assets and Liabilities Held for Sale and Discontinued Operations On December 21, 2016, the Company and its wholly owned subsidiary, HNR Energia , entered into the Sale and Purchase Agreement with BW Energy, to sell all of Harvest’ s oil and gas interests in Gabon. Harvest’s stockholders approved the proposed sale at a special meeting on February 23, 2017. The sale was subject to additional conditions before it could close such as approval from Gabonese government. We received the Gabonese government’s approval on April 5, 2017 and we completed the sale on April 10, 2017. Under the terms of the Sale and Purchase Agreement, BW Energy acquired HNR Energia's 100 percent interest in Harvest Dussafu , which owns a 66.667 percent interest in the Dussafu production sharing contract located offshore of Gabon . See Note 1 - Organization, Sale of Gabon Interests for further information. Harvest Dussafu’s assets and liabilities have been reclassified to assets and liabilities held for sale as follows: Assets held for sale As of June 30, 2017 As of December 31, 2016 (in thousands) Cash and cash equivalents $ — $ 1,076 Accounts receivable — 13 Oil and gas properties — 29,798 $ — $ 30,887 Liabilities held for sale As of June 30, 2017 As of December 31, 2016 (in thousands) Accounts payable $ — $ 47 Accrued Expenses — 38 $ — $ 85 On October 7, 2016, the Company, and its wholly owned subsidiary, HNR Energia, completed the sale of all of HNR Energia’s 51% interest in Harvest Holding, to Delta Petroleum, pursuant to a share purchase agreement, dated June 29, 2016 (the “Share Purchase Agreement”). Harvest Holding owns, indirectly through wholly owned subsidiaries, a 40% interest in Petrodelta S.A., through which all of the Company’s interests in Venezuela were owned. Thus, under the Share Purchase Agreement, the Company sold all of its interests in Venezuela to Delta Petroleum and we do not have any continuing involvement in Venezuela. Harvest Dussafu and Harvest Holding’s effect on results of operations have been reported in discontinued operations for the three and six months ended June 30, 2016 as follows: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Loss from Discontinued Operations Harvest Dussafu Harvest Holding Total Harvest Dussafu Harvest Holding Total (in thousands) (in thousands) Depreciation $ — $ (4) $ (4) $ — $ (10) $ (10) Exploration expense (204) — (204) (868) — (868) Impairment expense - oilfield inventories — — — (128) — (128) Allowance for note receivable — — — — (5,160) (5,160) General and administrative expense (5) (687) (692) (19) (1,617) (1,636) Change in fair value of warrant derivative liability — (6,853) (6,853) — (10,914) (10,914) Change in fair value of embedded derivative asset — 1,696 1,696 — 1,687 1,687 Loss on sale of Harvest Holding — (1,551) (1,551) — (1,551) (1,551) Interest expense — (1,373) (1,373) — (2,469) (2,469) Foreign currency transaction gains (losses) (4) 38 34 (8) 199 191 Income tax expense — (8) (8) — (16) (16) Loss from discontinued operations, net of income taxes (213) (8,742) (8,955) (1,023) (19,851) (20,874) Loss attributable to noncontrolling interests — (158) (158) — (3,066) (3,066) Loss from discontinued operations attributable to Harvest, net of income taxes $ (213) $ (8,584) $ (8,797) $ (1,023) $ (16,785) $ (17,808) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies U nder the agreements with our partner in the Dussafu Production Sharing Contract (“Dussafu PSC”), we were jointly and severally liable to various third parties. As of June 30, 2017 , due to the sale of Harvest Dussafu, no further obligations exist under these agreements. At December 31, 2016, the gross carrying amount associated with obligations to third parties which were fixed at the end of the period were $0.1 million and were related to accounts payable to vendors, accrued expenses and withholding taxes payable to taxing authorities. T he gross carrying amount s related to accounts payable and withholding taxes , and the net amount related to accrued expenses, are reflected in the consolidated condensed b alance sheet in liabilities held for sale as of December 31, 2016 . Our partners ha d obligations to us totaling $21 thousand a s of December 31, 2016 for these liabilities. On February 27, 2015, Harvest, Harvest (US) Holdings, Inc., a wholly owned subsidiary of Harvest (“ Harvest US ”), Branta, LLC and Branta Exploration & Production Company, LLC (together, “ Branta ”) filed a complaint against Newfield Production Company (“ Newfield ”) in the United States District Court for the District of Colorado. The plaintiffs previously sold oil and natural gas assets located in Utah’s Uinta Basin to Newfield pursuant to two purchase and sale agreements, each dated March 21, 2011. In the complaint, the plaintiffs allege, among other things, that prior to the sale, Newfield breached separate confidentiality agreements with Harvest US and Branta and violated antitrust laws, which resulted in a depressed sales price for the assets. The complaint seeks monetary damages, punitive damages, attorneys’ fees, interest, and costs for breach of contract, violation of the Colorado Antitrust Act, violation of the Sherman Antitrust Act and tortious interference with a prospective business advantage. At a motions hearing on April 25, 2017, the court set a trial date of September 11, 2017. On June 21, 2017, the court denied two motions for summary judgment – one that had been filed by Newfield and another that had been filed by plaintiffs. The trial is set to commence on September 11, 2017. 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 then-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. Thereafter, OFAC issued General License 8a, which authorized transactions with the Government of Libya and various related parties (including LOGSA) and Harvest separately paid its outstanding debts to LOGSA in December 2011, as permitted by General license 8a. Harvest has attempted to obtain the blocked funds by filing an application to OFAC, but its requests for return of the funds have been denied. On March 8, 2 016, OFAC denied Harvest's request for re consideration, stating that the blocked funds transfer involves an interest of a sanctions target. Harvest will request reconsideration of this denial in view of Harvest's dissolution. Until the application is approved by OFAC, the funds will remain in the blocked account, and Harvest can give no assurances when OFAC will permit the funds to be released. During the year ended December 31, 2015, primarily due to the passage of time, we recorded a $0.7 million allowance for doubtful accounts to general and administrative costs associated with the blocked payments and $0.4 million receivable from our joint venture partner. Even though Harvest sold its Gabon interests in April 2017, it retained the right to receive this $0.7 million if an d when it is paid. We will continue attempts to recover the funds from OFAC. On October 14, 2016, Saltpond Offshore Producing Co., Ltd. (“Saltpond”) filed a petition in the 334th Judicial District Court of Harris County, Texas under Rule 202 of the Texas Rules of Civil Procedure to take a pre-suit deposition of the Company’s general counsel. The petition alleges that Alessandro Bazzoni, as a representative of CT Energy Holding SRL (“CT Energy”), obtained proceeds from oil allegedly misappropriated from Saltpond and used these funds to consummate the June 19, 2015 Securities Purchase Agreement between CT Energy and the Company. The petition “seeks information to pursue a claim under the Uniform Fraudulent Transfer Act.” A hearing had been scheduled for November 11, 2016 as to whether Saltpond should be entitled to seek information from the Company but the hearing was postponed at the request of Saltpond’s lawyers. On April 12, 2017, Saltpond and Imperial Energy Ventures, Ltd. filed an amended petition against Cinque Terre Financial Group, Ltd.; Cinque Terre Energy Partners, LLC.; CT Energia, Ltd.; CT Energy Holding SLR (collectively, the “CT Corporate Defendants”); Alessandro Bazzoni; and the Company. The amended petition alleges breach of contract, fraud, unjust enrichment and violation of the Texas Theft Liability Act by the CT Corporate Defendants and Mr. Bazzoni, and liability by all defendants for civil conspiracy. The Company believes it was named as a defendant in this lawsuit because it was the recipient of funds from a separate loan transaction that involved CT Energy, and the plaintiff believes that all or part of the funds in the loan transaction could be traced to the allegedly misappropriated proceeds. Plaintiffs seek actual damages of approximately $5.5 million and additional damages. The Company denies the allegations in the petition and intends to mount a vigorous defense. It is not possible to estimate the likelihood or magnitude of any potential liability at this point. We are a defendant in or otherwise involved in other litigation incidental to our business. In the opinion of management, there is no such incidental litigation that will have a material adverse effect on our financial condition, results of operations and cash flows. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Liquidation Basis of Accounting | Liquidation Basis of Accounting As a result of the approval of the Plan of Dissolution, the Company adopted the Liquidation Basis of Accounting, effective January 1, 2017. This basis of accounting is considered appropriate when, among other things, liquidation of the Company is imminent, as defined in ASC 205-30 “Presentation of Financial Statements – Liquidation Basis of Accounting”. Under the Liquidation Basis of Accounting the following financial statements are no longer presented (except for periods prior to the adoption of the Liquidation Basis of Accounting): a consolidated condensed balance sheet, a consolidated condensed statement of operations and comprehensive loss and a consolidated condensed statement of cash flows. The consolidated condensed statement of net assets and the consolidated condensed statement of changes in net assets are the principal financial statements presented under the Liquidation Basis of Accounting. Although the Plan of Dissolution was approved by the stockholders on February 23, 2017, the Company is using the liquidation basis of accounting effective January 1, 2017 as a convenience date. Any activity between January 1, 2017 and February 23, 2017 would not be materially different under the going concern basis. Under the Liquidation Basis of Accounting , all of the Company’s assets have been stated at their estimated net realizable value and are based on current contracts, estimates and other indications of sales value net of estimated selling costs. All liabilities of the Company have been stated at contractual amounts and estimated liabilities are at their estimated settlement amounts, including those estimated costs associated with implementing the Plan of Dissolution. These amounts are presented in the accompanying consolidated condensed statement of net assets. These estimates will be periodically reviewed and adjusted as appropriate. There can be no assurance that these estimated values will be realized. Such amounts should not be taken as an indication of the timing or amount of future distributions or our actual dissolution. The valuation of assets at their net realizable value and liabilities at their anticipated settlement amount represent estimates, based on present facts and circumstances, of the net realizable value of the assets and the costs associated with carrying out the Plan of Dissolution. The actual values and costs associated with carrying out the Plan of Dissolution are expected to differ from amounts reflected in the accompanying financial statements because of the plan’s inherent uncertainty. These differences may be material. In particular, the estimates of our costs will vary with the length of time necessary to complete the Plan of Dissolution. Accordingly, it is not possible to predict with certainty the timing or aggregate amount which may ultimately be distributed to stockholders and no assurance can be given that the possible future distributions will reflect the estimate presented in the accompanying consolidated condensed statement of net assets. |
Principles of Consolidation | Principles of Consolidation The consolidated condensed financial statements include the accounts of all wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. Third-party interests in our majority-owned subsidiaries are presented as noncontrolling interests owners. |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in conjunction with the rules and regulations of the S EC . The results for such interim periods are not necessarily indicative of the results to be expected for the year. In the opinion of management, all adjustments considered necessary for a fair presentation of the results for the respective periods have been reflected. These consolidated condensed financial statements and accompanying notes should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2016. |
Reclassifications | Reclassifications Certain reclassifications related to discontinued operations have been made to prior period amounts. These reclassifications did not affect our consolidated condensed financial results. |
Use of Estimates | Use of Estimates In preparing the consolidated condensed financial statements in conformity with GAAP including the Liquidation Basis of Accounting , management is required to make estimates and assumptions that affect the reported amounts of assets, including net assets in liquidation, and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated condensed financial statements and the reported amounts of income and expense for the reporting period. Actual results could differ from those estimates. |
Discontinued Operations | Discontinued Operations Prior to the adoption of the Liquidation Basis of Accounting , the Company followed the guidance of the Presentation of Property, Plant, and Equipment Topics of the ASC, with respect to long-lived assets classified as held for sale. The ASC required that the results of operations, including impairment, gains and losses related to the properties that were sold or properties that were intended to be sold, be presented as discontinued operations in the statements of operations for all periods presented and the assets and liabilities of properties intended to be sold were to be separately classified on the balance sheet. Properties designated as held for sale were carried at the lower of cost or fair value less costs to sell and were not depreciated. |
Net Loss Per Share | Net Loss Per Share Prior to the adoption of the Liquidation Basis of Accounting , the Company reported basic net loss per share data by dividing net loss by the weighted average number of shares common stock outstanding during each period. Diluted net loss per share was computed by dividing net loss by the weighted average number of shares of common stock outstanding, including the dilutive effect, if any, of options and warrants. The diluted net loss per share calculation for the three months ended June 30, 2016 excluded 1.7 million options and 8.5 million warrants because we were in a loss position. The diluted net loss per share calculation for the six months ended June 30, 2016 excluded 1.7 million options and 8.5 million warrants because we were in a loss position. |
Reportable Segments | Reportable Segments We previously allocated resources to and assessed the performance of our operations by segments that were organized by unique geographic and operating characteristics. The segments were organized in order to manage regional business, currency and tax related risks and opportunities. Operations included under the heading “United States” included corporate management, cash management, business development and financing activities performed in the United States and other countries, which did not meet the requirements for separate disclosure. All intersegment revenues, other income and equity earnings, expenses and receivables were eliminated in order to reconcile to consolidated totals. Corporate general and administrative and interest expenses were included in the United States segment and are not allocated to other operating segments. As of December 31, 2016 (in thousands) Segment Assets United States and other $ 76,210 Assets held for sale (a) 30,887 Total assets $ 107,097 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Segment Loss Attributable to Harvest United States and other $ (4,101) $ (9,186) Loss from continuing operations (4,101) (9,186) Discontinued operations (a) (8,797) (17,808) Net loss attributable to Harvest (b) $ (12,898) $ (26,994) (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. (b) Net of net loss attributable to noncontrolling interest owners. |
Other Administrative Property | Other Administrative Property Prior to adoption of Liquidation Basis of Accounting , furniture, fixtures and equipment were recorded at cost and depreciated using the straight-line method over their estimated useful lives, which ranged from three to five years. Leasehold improvements were recorded at cost and amortized using the straight-line method over the life of the applicable lease. For the three and six months ended June 30, 2016, depreciation expense was $10 thousand and $30 thousand in continuing operations, respectively. |
Other Assets | Other Assets Other assets at June 30, 2017 include deposits and at December 31, 2016 include deposits and long-term prepaid insurance. |
Capitalized Interest | Capitalized Interest Prior to adoption of Liquidation Basis of Accounting , we capitalized interest costs for qualifying oil and natural gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production and interest costs have been incurred. The capitalization period continues as long as these events occur. The average additions for the period are used in the interest capitalization calculation. During the three and six months ended June 30, 2016, we did not capitalize interest costs due to insufficient on-going activity related to our oil and natural gas activities. |
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”). ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: · Level 1 – Inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities. · Level 2 – Inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly. · Level 3 – Inputs to the valuation techniques that are unobservable for the assets or liabilities. Financial instruments, which potentially subject us to concentrations of credit risk, are primarily cash and cash equivalents, accounts receivable and stock appreciation rights (“SARs”). We maintain cash and cash equivalents in bank deposit accounts with commercial banks, which at times may exceed the federally insured limits. We have not experienced any losses from such investments. Concentrations of credit risk with respect to accounts receivable are limited due to the nature of our receivables. In the normal course of business, collateral is not required for financial instruments with credit risk. The estimated fair value of cash and cash equivalents and accounts receivable, prepaid costs, accounts payable, accrued expenses and other current liabilities approximate their carrying value due to their short-term nature (Level 1). The following table set forth by level within the fair value hierarchy our financial liabilities that were accounted for at fair value as of December 31, 2016 . As of December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Recurring Liabilities: SARs liability $ — $ 1,903 $ — $ 1,903 $ — $ 1,903 $ — $ 1,903 As of June 30, 2017, no SARs liability was included on our consolidated condensed statement of net assets. During the three months ended June 30, 2017 and the six months ended June 30, 2017, SARs were exercised resulting in payments of $0.6 million and $1.0 million, respectively. As of December 31, 2016 , the fair value of our liability awards included $ 1.9 million for our SARs which were recorded in accrued expenses. Derivative Financial Instruments Prior to adoption of Liquidation Basis of Accounting and as required by ASC 820, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. As of June 30, 2017 and December 31, 2016, we did not have derivative instruments. Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis The following table provides a reconciliation of financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial assets - embedded derivative asset (a) : Beginning balance $ 5,001 $ 5,010 Additions 447 447 Change in fair value 1,696 1,687 Ending balance $ 7,144 $ 7,144 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial liabilities - warrant derivative liability (a) : Beginning balance $ 9,564 $ 5,503 Change in fair value 6,853 10,914 Ending balance $ 16,417 $ 16,417 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial liabilities - stock appreciation rights Beginning balance $ 120 $ 50 Change in fair value 121 191 Ending balance $ 241 $ 241 During three and six months ended June 30, 2016, no transfers were made between Level 1, Level 2 and Level 3 assets or liabilities. |
Share-Based Compensation | Share-Based Compensation We used the fair value based method of accounting for share-based compensation. We utilized the Black-Scholes option pricing model or a Monte Carlo simulation, as appropriate based on the attributes of the instrument, to measure the fair value of stock options and SARs on their grant dates. At June 30, 2017, no outstanding SARs or options have economic value. In March 2017, stock options were exercised for 727,671 common shares resulting in cash proceeds to Harvest of $0.1 million. From the common shares issued, 528,681 shares were surrendered as treasury shares to pay the exercise price and for taxes. In April 2017, stock options were exercised for 366,131 common shares resulting in cash proceeds to Harvest of $1.1 million. From the common shares issued, 87,761 shares were surrendered as treasury shares to pay the exercise price and for taxes. The following table is a summary of compensation expense recorded in general and administrative expense in our consolidated condensed statements of operations and comprehensive loss by type of awards: Employee Stock-Based Compensation Six Months Ended June 30, 2016 (in thousands) Equity based awards: Stock options $ 1,113 Restricted stock 68 RSUs 149 Total expense related to equity based awards 1,330 Liability based awards: SARs 238 RSUs 346 Total expense related to liability based awards 584 Total compensation expense $ 1,914 The assumptions summarized in the following table were used to calculate the fair value of the SARs classified as Level 3 instruments that were outstanding as of June 30, 2016: Fair Value Hierarchy Level As of June 30, 2016 Significant assumptions (or ranges): Exercise price Level 1 input $ 4.52 Threshold price Level 1 input $ 10.00 Suboptimal exercise factor Level 3 input 2.50 Term (years) Level 1 input 4.06 Volatility Level 2 input 110.00 % Risk-free rate Level 1 input 0.87 % Dividend yield Level 2 input 0.0 % |
Income Taxes | Income Taxes Deferred income taxes reflect the net tax effects, calculated at currently enacted rates, of (a) future deductible and taxable amounts attributable to events that have been recognized on a cumulative basis in the financial statements or income tax returns, and (b) operating loss and tax credit carryforwards. A valuation allowance for deferred tax assets is recorded when it is more likely than not that the benefit from the deferred tax asset will not be realized. Prior to adoption of Liquidation Basis of Accounting, we classified interest related to income tax liabilities and penalties as applicable, as interest expense. We recorded an immaterial late filing penalty during the three and six months ended June 30, 2017 and no penalties during the three and six months ended June 30, 2016. Since December 2013, we have provided deferred income taxes on undistributed earnings of our foreign subsidiaries where we are not able to assert that such earnings were permanently reinvested, or otherwise could be repatriated in a tax free manner, as part of our ongoing business. As of December 31, 2016, a deferred tax liability of $0.1 million was recorded based on the unremitted earnings of our foreign subsidiaries that would be repatriated to the U.S. pursuant to our overall Plan of Dissolution. With the Plan of Dissolution, the foreign subsidiaries will be dissolved and the previously unremitted earnings will be repatriated in 2017. The income tax event will be a current year item and no longer represent a deferred tax liability. In the first quarter of 2017, the deferred tax liability of $0.1 million was reversed resulting in a deferred tax benefit. For the current year, the Company expects to generate a net tax loss even with the inclusion of the previously unremitted earnings in taxable income. Consequently, no current income tax liability has been recorded during the three and six months ended June 30, 2017. |
Noncontrolling Interest Owners | Noncontrolling Interest Owners Changes in noncontrolling interest owners were as follows: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Balance at beginning of period $ (1,920) $ 447 Contributions by noncontrolling interest owners 383 924 Net loss attributable to noncontrolling interest owners (158) (3,066) Balance at end of period $ (1,695) $ (1,695) On October 7, 2016, the Company, and its wholly owned subsidiary, HNR Energia, completed the sale of all of HNR Energia’s 51% interest in Harvest Vinccler Dutch Holding, B.V. (“Harvest Holding”), to Delta Petroleum N.V., a limited liability company organized under the laws of Curacao (“Delta Petroleum”), pursuant to a share purchase agreement. With the sale and subsequent deconsolidation of Harvest Holding, we do not have any continuing involvement in Venezuela and no longer have non-controlling interest owners. |
New Accounting Pronouncements | New Accounting Pronouncements As a result of adopting Liquidation Basis of Accounting , we believe no new accounting pronouncements will have a material impact on our net assets in liquidation or changes in net assets in liquidation. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Operating Segment Assets | As of December 31, 2016 (in thousands) Segment Assets United States and other $ 76,210 Assets held for sale (a) 30,887 Total assets $ 107,097 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. |
Schedule of Segment Income (Loss) From Continuing Operations | Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Segment Loss Attributable to Harvest United States and other $ (4,101) $ (9,186) Loss from continuing operations (4,101) (9,186) Discontinued operations (a) (8,797) (17,808) Net loss attributable to Harvest (b) $ (12,898) $ (26,994) (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. (b) Net of net loss attributable to noncontrolling interest owners. |
Schedule of Fair Value Hierarchy of Financial Assets and Liabilities | As of December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Recurring Liabilities: SARs liability $ — $ 1,903 $ — $ 1,903 $ — $ 1,903 $ — $ 1,903 |
Reconciliation of Financial Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial assets - embedded derivative asset (a) : Beginning balance $ 5,001 $ 5,010 Additions 447 447 Change in fair value 1,696 1,687 Ending balance $ 7,144 $ 7,144 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial liabilities - warrant derivative liability (a) : Beginning balance $ 9,564 $ 5,503 Change in fair value 6,853 10,914 Ending balance $ 16,417 $ 16,417 (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) (in thousands) Financial liabilities - stock appreciation rights Beginning balance $ 120 $ 50 Change in fair value 121 191 Ending balance $ 241 $ 241 |
Summary of Compensation Expense | Employee Stock-Based Compensation Six Months Ended June 30, 2016 (in thousands) Equity based awards: Stock options $ 1,113 Restricted stock 68 RSUs 149 Total expense related to equity based awards 1,330 Liability based awards: SARs 238 RSUs 346 Total expense related to liability based awards 584 Total compensation expense $ 1,914 |
Schedule of Fair Value of SARs Classified as Level 3 | Fair Value Hierarchy Level As of June 30, 2016 Significant assumptions (or ranges): Exercise price Level 1 input $ 4.52 Threshold price Level 1 input $ 10.00 Suboptimal exercise factor Level 3 input 2.50 Term (years) Level 1 input 4.06 Volatility Level 2 input 110.00 % Risk-free rate Level 1 input 0.87 % Dividend yield Level 2 input 0.0 % |
Schedule of Changes in Noncontrolling Interest Owners | Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Balance at beginning of period $ (1,920) $ 447 Contributions by noncontrolling interest owners 383 924 Net loss attributable to noncontrolling interest owners (158) (3,066) Balance at end of period $ (1,695) $ (1,695) |
Statement of Net Assets in Li17
Statement of Net Assets in Liquidation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Statement of Net Assets in Liquidation [Abstract] | |
Consolidated Reconciliation of Stockholders' Equity To Net Assets in Liquidation | Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (unaudited) HARVEST STOCKHOLDERS' EQUITY AT DECEMBER 31, 2016 - GOING CONCERN BASIS $ 99,199 Effects of adopting the liquidation basis of accounting: Decrease due to reducing assets to their net realizable value (1,393) Increase due to reducing liabilities to their settlement amounts 949 Estimated liquidation and operating costs in excess of operating receipts during liquidation (28,241) Total effects of adopting the liquidation basis of accounting: (28,685) NET ASSETS IN LIQUIDATION - BEGINNING OF PERIOD $ 72,241 $ 70,514 Changes in net assets in liquidation: Change in net realizable value of cash and current assets (68,223) (62,902) Change in note receivable and accrued interest receivable due to collection — (12,307) Change in net realizable value of other administrative property (17) (17) Change in net realizable value of other assets (41) (41) Change in liability for estimated costs in excess of estimated receipts during liquidation 5,524 14,379 Change in settlement amounts of liabilities (4,560) (4,702) Total changes in net assets in liquidation (67,317) (65,590) NET ASSETS IN LIQUIDATION $ 4,924 $ 4,924 |
Liability for Estimated Costs18
Liability for Estimated Costs in Excess of Receipts During Liquidation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Liability For Estimated Costs In Excess Receipts During Liquidation [Abstract] | |
Income and Expenses Expected to be Earned or Incurred During Dissolution and Liquidation | As of March 31, 2017 Remeasurement of Assets and Liabilities Accrual based Expenditures/(Receipts) As of June 30, 2017 (in thousands) Assets: Additional proceeds from sale of Harvest Dussafu $ 3,548 $ — $ (3,548) $ — Estimated net inflows from exercise of stock options 1,130 — (1,130) — Estimated net inflows from interest earnings 344 3 (58) 289 Liabilities: Estimated transaction costs related to the sale of Harvest Dussafu (1,082) 16 1,066 — General overhead costs (6,385) (893) 1,319 (5,959) Severance and employment contract payments (11,959) (342) 8,082 (4,219) Other dissolution costs (4,982) 295 714 (3,973) Liability for estimated costs in excess of estimated receipts during liquidation $ (19,386) $ (921) $ 6,445 $ (13,862) January 1, 2017 Remeasurement of Assets and Liabilities Accrual based Expenditures/(Receipts) As of June 30, 2017 (in thousands) Assets: Additional proceeds from sale of Harvest Dussafu $ 2,046 $ 1,502 $ (3,548) $ — Estimated net inflows from exercise of stock options — 1,130 (1,130) — Estimated net inflows from interest earnings 648 3 (362) 289 Liabilities: Estimated transaction costs related to the sale of Harvest Dussafu (1,148) (267) 1,415 — General overhead costs (9,321) (893) 4,255 (5,959) Severance and employment contract payments (14,563) (342) 10,686 (4,219) Other dissolution costs (5,903) 295 1,635 (3,973) Liability for estimated costs in excess of estimated receipts during liquidation $ (28,241) $ 1,428 $ 12,951 $ (13,862) |
Assets and Liabilities Held f19
Assets and Liabilities Held for Sale and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Assets and Liabilities Held for Sale and Discontinued Operations [Abstract] | |
Schedule of Assets Held For Sale | Assets held for sale As of June 30, 2017 As of December 31, 2016 (in thousands) Cash and cash equivalents $ — $ 1,076 Accounts receivable — 13 Oil and gas properties — 29,798 $ — $ 30,887 |
Schedule of Liabilites Held For Sale | Liabilities held for sale As of June 30, 2017 As of December 31, 2016 (in thousands) Accounts payable $ — $ 47 Accrued Expenses — 38 $ — $ 85 |
Schedule of Discontinued Operations Expenses | Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Loss from Discontinued Operations Harvest Dussafu Harvest Holding Total Harvest Dussafu Harvest Holding Total (in thousands) (in thousands) Depreciation $ — $ (4) $ (4) $ — $ (10) $ (10) Exploration expense (204) — (204) (868) — (868) Impairment expense - oilfield inventories — — — (128) — (128) Allowance for note receivable — — — — (5,160) (5,160) General and administrative expense (5) (687) (692) (19) (1,617) (1,636) Change in fair value of warrant derivative liability — (6,853) (6,853) — (10,914) (10,914) Change in fair value of embedded derivative asset — 1,696 1,696 — 1,687 1,687 Loss on sale of Harvest Holding — (1,551) (1,551) — (1,551) (1,551) Interest expense — (1,373) (1,373) — (2,469) (2,469) Foreign currency transaction gains (losses) (4) 38 34 (8) 199 191 Income tax expense — (8) (8) — (16) (16) Loss from discontinued operations, net of income taxes (213) (8,742) (8,955) (1,023) (19,851) (20,874) Loss attributable to noncontrolling interests — (158) (158) — (3,066) (3,066) Loss from discontinued operations attributable to Harvest, net of income taxes $ (213) $ (8,584) $ (8,797) $ (1,023) $ (16,785) $ (17,808) |
Organization (Details)
Organization (Details) $ / shares in Units, $ in Millions | Aug. 07, 2017USD ($) | May 04, 2017USD ($)$ / shares | Feb. 17, 2017$ / sharesshares | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Date declared | Apr. 13, 2017 | ||||
Cash distribution per share of common stock | $ / shares | $ 5.75 | ||||
Date of record | Apr. 24, 2017 | ||||
Liquidation Dividend | $ 66.2 | ||||
Rights Plan [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Net operating loss carryforwards | $ 56 | ||||
Percentage of outstanding shares | 50.00% | ||||
Rolling period | 3 years | ||||
Non-taxable dividend declared | shares | 1 | ||||
Percentage of shares aquired | 5 | ||||
Required amount of shares to be purchased | shares | 0.001 | ||||
Rights Plan [Member] | Minimum [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Percentage of outstanding shares | 5.00% | ||||
Harvest Holding [Member] | CT Energy [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Ownership percentage | 51.00% | ||||
Harvest Dussafu B.V. [Member] | HNR Energia [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Ownership interest | 66.667% | ||||
Ownership percentage | 100.00% | ||||
Cash consideration | $ 32 | ||||
Reimbursement | 2.3 | ||||
Series D Preferred Stock [Member] | Rights Plan [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Price per share | $ / shares | $ 26 | ||||
Escrow [Member] | Harvest Dussafu B.V. [Member] | HNR Energia [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Cash consideration | 2.5 | ||||
Expected Release From Escrow [Member] | Harvest Dussafu B.V. [Member] | HNR Energia [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Cash consideration | $ 0.4 | ||||
Subsequent Event [Member] | Release From Escrow [Member] | Harvest Dussafu B.V. [Member] | HNR Energia [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Cash consideration | $ 2.1 |
Liquidity (Details)
Liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands | May 04, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | May 31, 2011 |
Debt Instrument [Line Items] | ||||
Date declared | Apr. 13, 2017 | |||
Cash distribution per share of common stock | $ 5.75 | |||
Date of record | Apr. 24, 2017 | |||
Liquidation Dividend | $ 66,200 | |||
Other assets | $ 145 | |||
OFAC [Member] | ||||
Debt Instrument [Line Items] | ||||
Blocked payment- gain contingency if recouped | $ 700 | $ 700 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Excluded options | 1,700,000 | 1,700,000 | ||||||
Depreciation expense | $ 10 | $ 30 | ||||||
Capitalized interest costs | 0 | 0 | ||||||
Transfers made between level 1, level 2, and level 3 | 0 | 0 | ||||||
Exercise of stock options, shares | 366,131 | 727,671 | ||||||
Proceeds from issuance of stock | $ 1,100 | $ 100 | ||||||
Common stock, shares issued | 87,761 | 528,681 | 528,681 | 14,890,000 | ||||
Income tax penalties | $ 0 | $ 0 | ||||||
Deferred tax liability on undistributed earnings of foreign subsidiaries | $ 100 | |||||||
Deferred income tax benefit | $ 100 | |||||||
Income tax expense (benefit) | $ 0 | $ 0 | ||||||
Stock Appreciation Rights [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Oustanding SARs | 0 | 0 | ||||||
SAR's exercised | 600 | 1,000 | ||||||
Fair value of liability awards | $ 0 | $ 0 | $ 1,900 | |||||
Warrants [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Excluded options | 8,500,000 | 8,500,000 | ||||||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives | 3 years | |||||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives | 5 years | |||||||
Leashold Improvements [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Depreciation expense | $ 10 | $ 30 | ||||||
Harvest Holding [Member] | CT Energy [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ownership Percentage | 51.00% | 51.00% |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Schedule of Operating Segment Assets) (Details) $ in Thousands | Dec. 31, 2016USD ($) | |
Total assets | $ 107,097 | |
Discontinued Operations [Member] | ||
Total assets | 30,887 | [1] |
United States and Other [Member] | Continuing Operations [Member] | ||
Total assets | $ 76,210 | |
[1] | (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Schedule of Segment Income (Loss) From Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | ||
Loss from continuing operations | $ (4,101) | $ (9,186) | |
Loss from discontinued operations | (20,874) | ||
Net loss attributable to Harvest | [1] | (12,898) | (26,994) |
United States and Other [Member] | |||
Loss from continuing operations | (4,101) | (9,186) | |
Operating Segments [Member] | |||
Loss from continuing operations | (4,101) | (9,186) | |
Discontinued Operations [Member] | |||
Loss from discontinued operations | [2] | $ (8,797) | $ (17,808) |
[1] | (b) Net of net loss attributable to noncontrolling interest owners. | ||
[2] | (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Schedule of Fair Value Hierarchy of Financial Assets and Liabilities) (Details) - Recurring [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value | $ 1,903 |
Stock Appreciation Rights [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value | 1,903 |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value | |
Level 1 [Member] | Stock Appreciation Rights [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value | |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value | 1,903 |
Level 2 [Member] | Stock Appreciation Rights [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value | $ 1,903 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Reconciliation of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) - Embedded Derivative Assets [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | [1] | $ 5,001 | $ 5,010 |
Additions | [1] | 447 | 447 |
Change in fair value | [1] | 1,696 | 1,687 |
Ending balance | [1] | $ 7,144 | $ 7,144 |
[1] | (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Reconciliation of Financial Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | ||
Warrants Derivative Liabilities [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | [1] | $ 9,564 | $ 5,503 |
Change in fair value | [1] | 6,853 | 10,914 |
Ending balance | [1] | 16,417 | 16,417 |
Stock Appreciation Rights [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 120 | 50 | |
Change in fair value | 121 | 191 | |
Ending balance | $ 241 | $ 241 | |
[1] | (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Summary of Compensation Expense) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total expense related to equity based awards | $ 1,330 |
Total expense related to liability based awards | 584 |
Total compensation expense | 1,914 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total expense related to equity based awards | 1,113 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total expense related to equity based awards | 68 |
Stock Appreciation Rights [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total expense related to liability based awards | 238 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total expense related to equity based awards | 149 |
Total expense related to liability based awards | $ 346 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Schedule of Fair Value of SARs Classified as Level 3) (Details) - Recurring [Member] | 6 Months Ended |
Jun. 30, 2016$ / shares | |
Level 1 [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Exercise price | $ 4.52 |
Threshold price | $ 10 |
Term (years) | 4 years 22 days |
Risk-free rate | 0.87% |
Level 2 [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Volatility | 110.00% |
Dividend yield | 0.00% |
Level 3 [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Suboptimal exercise factor | $ 2.50 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Schedule of Changes in Noncontrolling Interest Owners) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | ||
Balance at beginning of period | $ (1,920) | $ 447 |
Contributions by noncontrolling interest owners | 383 | 924 |
Net loss attributable to noncontrolling interest owners | (158) | (3,066) |
Balance at end of period | $ (1,695) | $ (1,695) |
Statement of Net Assets in Li31
Statement of Net Assets in Liquidation (Narrative) (Details) $ / shares in Units, $ in Millions | May 04, 2017USD ($)$ / shares |
Statement of Net Assets in Liquidation [Abstract] | |
Date declared | Apr. 13, 2017 |
Cash distribution per share of common stock | $ / shares | $ 5.75 |
Date of record | Apr. 24, 2017 |
Liquidation Dividend | $ | $ 66.2 |
Statement of Net Assets in Li32
Statement of Net Assets in Liquidation (Consolidated Reconciliation of Stockholders' Equity To Net Assets in Liquidation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Liquidation [Line Items] | |||
HARVEST STOCKHOLDER'S EQUITY - GOING CONCERN BASIS | $ 99,199 | ||
Liquidation [Member] | |||
Liquidation [Line Items] | |||
HARVEST STOCKHOLDER'S EQUITY - GOING CONCERN BASIS | 99,199 | ||
Decrease due to reducing assets to their net realizable value | (1,393) | ||
Increase due to reducing liabilities to their settlement amounts | 949 | ||
Estimated liquidation and operating costs in excess of operating receipts during liquidation | (28,241) | ||
Total Effects of adopting the Liquidation Basis of Accounting: | $ (28,685) | ||
NET ASSETS IN LIQUIDATION | $ 72,241 | $ 70,514 | |
Change in net realizable value of cash and current assets | (68,223) | (62,902) | |
Change in note receivable and accrued interest receivable due to collection | (12,307) | ||
Change in net realizable value of other administrative property | 17 | 17 | |
Change in net realizable value of other assets | 41 | 41 | |
Change in liability for estimated costs in excess of estimated receipts during liquidation | 5,524 | 14,379 | |
Change in settlement amounts of liabilities | (4,560) | (4,702) | |
Total changes in net assets in liquidation | (67,317) | (65,590) | |
NET ASSETS IN LIQUIDATION | $ 4,924 | $ 4,924 |
Liability for Estimated Costs33
Liability for Estimated Costs in Excess of Receipts During Liquidation (Narrative) (Details) - Liquidation [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Liquidation [Line Items] | ||||
Severance and employment contract payments | $ 4,219 | $ 11,959 | $ (4,219) | $ (14,563) |
Dissolution costs | $ (3,973) | $ (4,982) | $ (3,973) | $ (5,903) |
Liability for Estimated Costs34
Liability for Estimated Costs in Excess of Receipts During Liquidation (Income and Expenses Expected to be Earned or Incurred During Dissolution and Liquidation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Liquidation [Member] | ||||
Liquidation [Line Items] | ||||
Additional proceeds from sale of Harvest Dussafu | $ 3,548 | $ 2,046 | ||
Estimated net inflows from exercise of stock options | 1,130 | |||
Estimated net inflows from interest earnings | 289 | 344 | $ 289 | 648 |
Estimated transaction costs related to sale of Harvest Dussafu | (1,082) | (1,148) | ||
General overhead costs | (5,959) | (6,385) | 5,959 | 9,321 |
Severance and employment contract payments | (4,219) | (11,959) | 4,219 | 14,563 |
Other dissolution costs | (3,973) | (4,982) | (3,973) | (5,903) |
Liability for estimated costs in excess of estimated receipts during liquidation | (13,862) | $ (19,386) | (13,862) | $ (28,241) |
Remeasurment of Assets and Liabilities [Member] | ||||
Liquidation [Line Items] | ||||
Additional proceeds from sale of Harvest Dussafu | 1,502 | |||
Estimated net inflows from exercise of stock options | 1,130 | |||
Estimated net inflows from interest earnings | 3 | 3 | ||
Estimated transaction costs related to sale of Harvest Dussafu | 16 | (267) | ||
General overhead costs | (893) | 893 | ||
Severance and employment contract payments | (342) | 342 | ||
Other dissolution costs | 295 | 295 | ||
Liability for estimated costs in excess of estimated receipts during liquidation | (921) | 1,428 | ||
Accrual Based Expenditures/(Receipts) [Member] | ||||
Liquidation [Line Items] | ||||
Additional proceeds from sale of Harvest Dussafu | (3,548) | (3,548) | ||
Estimated net inflows from exercise of stock options | (1,130) | (1,130) | ||
Estimated net inflows from interest earnings | (58) | (362) | ||
Estimated transaction costs related to sale of Harvest Dussafu | 1,066 | 1,415 | ||
General overhead costs | 1,319 | (4,255) | ||
Severance and employment contract payments | 8,082 | (10,686) | ||
Other dissolution costs | 714 | 1,635 | ||
Liability for estimated costs in excess of estimated receipts during liquidation | $ 6,445 | $ 12,951 |
Assets and Liabilities Held f35
Assets and Liabilities Held for Sale and Discontinued Operations (Narrative) (Details) | Jun. 30, 2017 |
Harvest Dussafu B.V. [Member] | HNR Energia [Member] | |
Ownership Percentage | 100.00% |
Ownership interest | 66.667% |
CT Energy [Member] | Harvest Holding [Member] | |
Ownership Percentage | 51.00% |
CT Energy [Member] | Petrodelta [Member] | |
Indirect Ownership Percentage | 40.00% |
Assets and Liabilities Held f36
Assets and Liabilities Held for Sale and Discontinued Operations (Schedule of Assets Held For Sale) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Assets and Liabilities Held for Sale and Discontinued Operations [Abstract] | |
Cash and cash equivalents | $ 1,076 |
Accounts receivable | 13 |
Oil and gas properties | 29,798 |
Assets held for sale | $ 30,887 |
Assets and Liabilities Held f37
Assets and Liabilities Held for Sale and Discontinued Operations (Schedule of Liabilities Held For Sale) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Assets and Liabilities Held for Sale and Discontinued Operations [Abstract] | |
Accounts Payable | $ 47 |
Accrued Expenses | 38 |
Liabilities held for sale | $ 85 |
Assets and Liabilities Held f38
Assets and Liabilities Held for Sale and Discontinued Operations (Schedule of Discontinued Operations Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Exploration expense | $ (214) | $ (271) | |
Loss from discontinued operations, net of income taxes | (8,955) | (20,874) | |
Loss from discontinued operations attributable to Harvest, net of income taxes | (20,874) | ||
Discontinued Operations [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Depreciation | (4) | (10) | |
Exploration expense | (204) | (868) | |
Impairment expense - oilfield inventories | (128) | ||
Allowance for note receivable | (5,160) | ||
General and administrative expense | (692) | (1,636) | |
Change in fair value of warrant derivative liability | (6,853) | (10,914) | |
Change in fair value of embedded derivative asset | 1,696 | 1,687 | |
Loss on sale of Harvest Holdings | (1,551) | (1,551) | |
Interest expense | (1,373) | (2,469) | |
Foreign currency transaction gains (losses) | 34 | 191 | |
Income tax expense | (8) | (16) | |
Loss from discontinued operations, net of income taxes | (8,955) | (20,874) | |
Loss attributable to noncontrolling interests | (158) | (3,066) | |
Loss from discontinued operations attributable to Harvest, net of income taxes | [1] | (8,797) | (17,808) |
Harvest Dussafu B.V. [Member] | Discontinued Operations [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Exploration expense | (204) | (868) | |
Impairment expense - oilfield inventories | (128) | ||
General and administrative expense | (5) | (19) | |
Foreign currency transaction gains (losses) | (4) | (8) | |
Loss from discontinued operations, net of income taxes | (213) | (1,023) | |
Loss from discontinued operations attributable to Harvest, net of income taxes | (213) | (1,023) | |
Harvest Holding [Member] | Discontinued Operations [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Depreciation | (4) | (10) | |
Allowance for note receivable | (5,160) | ||
General and administrative expense | (687) | (1,617) | |
Change in fair value of warrant derivative liability | (6,853) | (10,914) | |
Change in fair value of embedded derivative asset | 1,696 | 1,687 | |
Loss on sale of Harvest Holdings | (1,551) | (1,551) | |
Interest expense | (1,373) | (2,469) | |
Foreign currency transaction gains (losses) | 38 | 199 | |
Income tax expense | (8) | (16) | |
Loss from discontinued operations, net of income taxes | (8,742) | (19,851) | |
Loss attributable to noncontrolling interests | (158) | (3,066) | |
Loss from discontinued operations attributable to Harvest, net of income taxes | $ (8,584) | $ (16,785) | |
[1] | (a) See Note 6 - Assets and Liabilities Held for Sale and Discontinued Operations for further information. |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | May 31, 2011USD ($) | Jun. 30, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
Number of Purchase and Sale Agreements | item | 2 | |||
Number of motions denied | item | 2 | |||
Dussafu PSC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Contractual obligations | $ 100 | |||
Harvest Holding [Member] | CT Energy [Member] | ||||
Loss Contingencies [Line Items] | ||||
Ownership percentage | 51.00% | |||
OFAC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimated loss | $ 1,100 | |||
Blocked payment net to interest | $ 700 | $ 700 | ||
Percentage of cost sharing interest in work commitments | 66.667% | |||
Saltpond [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimated loss | $ 5,500 | |||
Joint Partners [Member] | Dussafu PSC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Contractual obligations | $ 21 | |||
Joint Partners [Member] | OFAC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Allowance for doubtful accounts | $ 700 | |||
Receivable from joint venture partners | $ 400 |