Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-32167 | ||
Entity Registrant Name | VAALCO Energy, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 76-0274813 | ||
Entity Address, Address Line One | 9800 Richmond Avenue | ||
Entity Address, Address Line Two | Suite 700 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77042 | ||
City Area Code | 713 | ||
Local Phone Number | 623-0801 | ||
Title of 12(b) Security | Common Stock, par value $0.10 | ||
Trading Symbol | EGY | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 64.5 | ||
Entity Common Stock, Shares Outstanding | 57,663,188 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Portions of the definitive Proxy Statement of VAALCO Energy, Inc. relating to the Annual Meeting of Stockholders to be filed within 120 days after the end of the fiscal year covered by this Form 10-K, which are incorporated into Part III of this Form 10-K. | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Central Index Key | 0000894627 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 47,853 | $ 45,917 |
Restricted cash | 86 | 911 |
Receivables: | ||
Trade | 14,335 | |
Accounts with joint venture owners, net of allowance of $0.0 million and $0.5 million, respectively | 3,587 | 2,714 |
Other | 4,331 | 1,517 |
Crude oil inventory | 3,906 | 1,072 |
Prepayments and other | 4,215 | 3,292 |
Total current assets | 63,978 | 69,758 |
Crude oil and natural gas properties, equipment and other - successful efforts method, net | 37,036 | 68,258 |
Other noncurrent assets: | ||
Restricted cash | 925 | 925 |
Value added tax and other receivables, net of allowance of $2.3 million and $1.0 million, respectively | 4,271 | 3,683 |
Right of use operating lease assets | 22,569 | 33,383 |
Deferred tax assets | 24,159 | |
Abandonment funding | 12,453 | 11,371 |
Total assets | 141,232 | 211,537 |
Current liabilities: | ||
Accounts payable | 16,690 | 15,897 |
Accounts with joint venture owners | 4,945 | |
Accrued liabilities and other | 17,184 | 29,773 |
Operating lease liabilities - current portion | 12,890 | 11,990 |
Foreign income taxes payable | 860 | 5,740 |
Current liabilities - discontinued operations | 7 | 350 |
Total current liabilities | 52,576 | 63,750 |
Asset retirement obligations | 17,334 | 15,844 |
Operating lease liabilities - net of current portion | 9,671 | 21,371 |
Other long-term liabilities | 193 | 852 |
Total liabilities | 79,774 | 101,817 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Preferred stock, $25 par value; 500,000 shares authorized, none issued | ||
Common stock, $0.10 par value; 100,000,000 shares authorized, 67,897,530 and 67,673,787 shares issued, 57,351,154 and 58,024,571 shares outstanding, respectively | 6,790 | 6,767 |
Additional paid-in capital | 74,437 | 73,549 |
Less treasury stock, 10,366,376 and 9,649,216 shares, respectively, at cost | (42,421) | (41,429) |
Retained earnings | 22,652 | 70,833 |
Total shareholders' equity | 61,458 | 109,720 |
Total liabilities and shareholders' equity | $ 141,232 | $ 211,537 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Allowance for accounts with joint venture owners | $ 0 | $ 0.5 |
Allowance for value added tax and other receivables | $ 2.3 | $ 1 |
Preferred stock, par value | $ 25 | $ 25 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 67,897,530 | 67,673,787 |
Common stock, shares outstanding | 57,531,154 | 58,024,571 |
Treasury stock, shares | 10,366,376 | 9,649,216 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Crude oil and natural gas sales | $ 67,176 | $ 84,521 | $ 104,943 |
Operating costs and expenses: | |||
Production expense | 37,315 | 37,689 | 40,415 |
Exploration expense | 3,588 | 14 | |
Depreciation, depletion and amortization | 9,382 | 7,083 | 5,596 |
Impairment of proved crude oil and natural gas properties | 30,625 | ||
Gain on revision of asset retirement obligations | (379) | (3,325) | |
General and administrative expense | 10,695 | 14,855 | 11,398 |
Bad debt (recovery) expense and other | 1,165 | (341) | (77) |
Total operating costs and expenses | 92,770 | 58,907 | 54,021 |
Other operating income (expense), net | (1,669) | (4,421) | 365 |
Operating income (loss) | (27,263) | 21,193 | 51,287 |
Other income (expense): | |||
Derivative instruments gain (loss), net | 6,577 | (446) | 4,264 |
Interest income (expense), net | 155 | 733 | (145) |
Other, net | 129 | (438) | 68 |
Interest income (expense), net | 6,861 | (151) | 4,187 |
Income (loss) from continuing operations before income taxes | (20,402) | 21,042 | 55,474 |
Income tax expense (benefit) | 27,681 | 23,890 | (43,254) |
Income (loss) from continuing operations | (48,083) | (2,848) | 98,728 |
Income (loss) from discontinued operations, net of tax | (98) | 5,411 | (496) |
Net income (loss) | $ (48,181) | $ 2,563 | $ 98,232 |
Basic net income (loss) per share: | |||
Income (loss) from continuing operations | $ (0.83) | $ (0.05) | $ 1.65 |
Income (loss) from discontinued operations, net of tax | 0 | 0.09 | (0.01) |
Net income (loss) per share | $ (0.83) | $ 0.04 | $ 1.64 |
Basic weighted average shares outstanding | 57,594 | 59,143 | 59,248 |
Diluted net income (loss) per share: | |||
Income (loss) from continuing operations | $ (0.83) | $ (0.05) | $ 1.63 |
Income (loss) from discontinued operations, net of tax | 0 | 0.09 | (0.01) |
Net income (loss) per share | $ (0.83) | $ 0.04 | $ 1.62 |
Diluted weighted average shares outstanding | 57,594 | 59,143 | 59,997 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 6,644 | $ (37,953) | $ 71,251 | $ (29,653) | $ 10,289 |
Balance, Shares at Dec. 31, 2017 | 66,444,000 | ||||
Balance, Treasury Shares at Dec. 31, 2017 | (7,581,000) | ||||
Shares issued - stock-based compensation | $ 73 | $ 177 | 287 | 537 | |
Shares issued - stock-based compensation, Shares | 724,000 | 35,000 | |||
Stock-based compensation expense | 820 | 820 | |||
Treasury stock | $ (51) | (51) | |||
Treasury stock, Shares | (26,000) | ||||
Net income (loss) | 98,232 | 98,232 | |||
Balance at Dec. 31, 2018 | $ 6,717 | $ (37,827) | 72,358 | 68,579 | 109,827 |
Balance, Shares at Dec. 31, 2018 | 67,168,000 | (7,572,000) | |||
Shares issued - stock-based compensation | $ 50 | 206 | 256 | ||
Shares issued - stock-based compensation, Shares | 506,000 | (10,000) | |||
Stock-based compensation expense | 985 | 985 | |||
Treasury stock | $ (3,602) | (309) | (3,911) | ||
Treasury stock, Shares | (2,067,000) | ||||
Net income (loss) | 2,563 | 2,563 | |||
Balance at Dec. 31, 2019 | $ 6,767 | $ (41,429) | 73,549 | 70,833 | $ 109,720 |
Balance, Shares at Dec. 31, 2019 | 67,674,000 | ||||
Balance, Treasury Shares at Dec. 31, 2019 | (9,649,000) | (9,649,216) | |||
Shares issued - stock-based compensation | $ 23 | $ (44) | 40 | $ 63 | |
Shares issued - stock-based compensation, Shares | 223,000 | ||||
Stock-based compensation expense | 848 | 848 | |||
Treasury stock | $ (992) | (992) | |||
Treasury stock, Shares | (673,000) | ||||
Net income (loss) | (48,181) | (48,181) | |||
Balance at Dec. 31, 2020 | $ 6,790 | $ (42,421) | $ 74,437 | $ 22,652 | $ 61,458 |
Balance, Shares at Dec. 31, 2020 | 67,897,000 | ||||
Balance, Treasury Shares at Dec. 31, 2020 | (10,366,000) | (10,366,376) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (48,181) | $ 2,563 | $ 98,232 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
(Income) loss from discontinued operations | 98 | (5,411) | 496 |
Depreciation, depletion and amortization | 9,382 | 7,083 | 5,596 |
Impairment of proved crude oil and natural gas properties | 30,625 | ||
Gain on revision of asset retirement obligations | (379) | (3,325) | |
Other amortization | 181 | 241 | 417 |
Deferred taxes | 24,159 | 14,480 | (56,907) |
Unrealized foreign exchange gain | 91 | (50) | 834 |
Stock-based compensation | 114 | 3,506 | 2,388 |
Cash settlements paid on exercised stock appreciation rights | (275) | (491) | (82) |
Derivative instruments (gain) loss, net | (6,577) | 446 | (4,264) |
Cash settlements received on matured derivative contracts, net | 7,216 | 2,439 | 744 |
Bad debt expense and other | 1,165 | (341) | (77) |
Other operating loss, net | 869 | 58 | (570) |
Operational expenses associated with equipment and other | 1,601 | 69 | 1,604 |
Change in operating assets and liabilities: | |||
Trade receivables | 14,335 | (2,428) | (8,351) |
Accounts with joint venture owners | 4,016 | (2,075) | 2,747 |
Other receivables | 1,405 | (94) | (1,330) |
Crude oil inventory | (2,834) | (287) | 2,478 |
Prepayments and other | (1,126) | (1,014) | 1,164 |
Value added tax and other receivables | (1,268) | 275 | (777) |
Accounts payable | (842) | 6,011 | (3,409) |
Foreign income taxes receivable/payable | (4,880) | 2,396 | 2,751 |
Accrued liabilities and other | (1,383) | 4,161 | (2,131) |
Net cash provided by continuing operating activities | 27,891 | 31,158 | 38,228 |
Net cash used in discontinued operating activities | (441) | (4,686) | (1,052) |
Net cash provided by operating activities | 27,450 | 26,472 | 37,176 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property and equipment expenditures | (20,008) | (10,348) | (14,127) |
Acquisition of crude oil and natural gas properties | (4,320) | ||
Net cash used in continuing investing activities | (24,328) | (10,348) | (14,127) |
Net cash used in investing activities | (24,328) | (10,348) | (14,127) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from the issuances of common stock | 63 | 256 | 544 |
Debt repayments | (9,166) | ||
Treasury shares | (992) | (3,911) | (58) |
Net cash used in continuing financing activities | (929) | (3,655) | (8,680) |
Net cash used in discontinued financing activities | |||
Net cash used in financing activities | (929) | (3,655) | (8,680) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 2,193 | 12,469 | 14,369 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 59,124 | 46,655 | 32,286 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | 61,317 | 59,124 | 46,655 |
Supplemental disclosure of cash flow information: | |||
Interest expense paid in cash | 257 | ||
Income taxes (received) paid in cash | (696) | (674) | 2,720 |
Income taxes paid in-kind with crude oil | 8,738 | 7,268 | 9,385 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Property and equipment additions incurred but not paid at end of period | 3,966 | 13,646 | 2,138 |
Crude oil and natural gas property additions paid with non-cash assets | 4,197 | ||
Gross-up of crude oil and natural gas properties by establishment of deferred tax liability | 18,613 | ||
Recognition of right-of-use operating lease assets and liabilities | 1,478 | 44,681 | |
Recognition of right-of-use operating lease liabilities | 1,478 | 44,656 | |
Asset retirement obligations | $ 359 | 595 | (6,527) |
Restricted stock issued out of treasury | $ 309 | $ 177 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Organization [Abstract] | |
Organization | 1. ORGANIZATION VAALCO Energy, Inc. (together with its consolidated subsidiaries “we”, “us”, “our”, “VAALCO” or the “Company”) is a Houston, Texas-based independent energy company engaged in the acquisition, exploration, development and production of crude oil. As operator, the Company has production operations and conducts exploration activities in Gabon, West Africa. The Company has opportunities to participate in development and exploration activities in Equatorial Guinea, West Africa. As discussed further in Note 4 below, VAALCO has discontinued operations associated with activities in Angola, West Africa. The Company’s consolidated subsidiaries are VAALCO Gabon (Etame), Inc., VAALCO Production (Gabon), Inc., VAALCO Gabon S.A., VAALCO Angola (Kwanza), Inc., VAALCO Energy (EG), Inc., VAALCO Energy Mauritius (EG) Limited and VAALCO Energy (USA), Inc. With respect to the novel strain of coronavirus (“COVID-19”), a global pandemic was declared by the World Health Organization on March 11, 2020. As a result of the pandemic, many companies have experienced disruptions in their operations and in markets served. The Company has instituted some and may take additional temporary precautionary measures intended to help ensure the well-being of its employees and minimize business disruption. Such measures include social distancing measures and actively screening and monitoring employees and contractors that come on to the Company’s facilities. The adverse economic effects of the COVID-19 outbreak have materially decreased demand for crude oil based on the restrictions in place by governments trying to curb the outbreak and changes in consumer behavior. This has led to a significant global oversupply of crude oil and consequently a substantial decrease in crude oil prices. In response to the oversupply of crude oil, global crude oil producers, including the Organization of Petroleum Exporting Countries and other oil producing nations (“OPEC+”), reached agreement in April 2020 to cut crude oil production. Further, in connection with the OPEC+ agreement, the Minister of Hydrocarbons in Gabon requested that the Company reduce its production. In response to such request from the Minister of Hydrocarbons, beginning in July 2020 and continuing through March 31, 2021, the Company has temporarily reduced production from the Etame Marin block. The Company considered the impact of the COVID-19 pandemic and the substantial decline in crude oil prices on the assumptions and estimates used for preparation of the financial statements. As a result, the Company recognized a number of material charges during the three months ended March 31, 2020, including impairments to its capitalized costs for proved crude oil and natural gas properties and valuation allowances on its deferred tax assets. These are discussed further in the following notes. Crude oil prices improved somewhat by December 31, 2020, and therefore no further material charges or impairments were required in the year end impairment analysis done at December 31, 2020. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak may have a material adverse impact on financial results and business operations of the Company, including the timing and ability of the Company to complete future drilling campaigns and other efforts required to advance the development of its crude oil and natural gas properties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation – The accompanying consolidated financial statements (“Financial Statements”) include the accounts of VAALCO and its wholly owned subsidiaries. Investments in unincorporated joint ventures and undivided interests in certain operating assets are consolidated on a pro rata basis. All intercompany transactions within the consolidated group have been eliminated in consolidation. Use of estimates – The preparation of the Financial Statements in conformity with generally accepted accounting principles in the United States (“U.S.”) (“GAAP”) requires estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Financial Statements and the reported amounts of revenues and expenses during the respective reporting periods. The Financial Statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Estimates of crude oil and natural gas reserves used to estimate depletion expense and impairment charges require extensive judgments and are generally less precise than other estimates made in connection with financial disclosures. Due to inherent uncertainties and the limited nature of data, estimates are imprecise and subject to change over time as additional information become available. Cash and cash equivalents – Cash and cash equivalents includes deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. Restricted cash and abandonment funding – Restricted cash includes cash that is contractually restricted. Restricted cash is classified as a current or non-current asset based on its designated purpose and time duration. Current amounts in restricted cash at December 31, 2020 and 2019 each include an escrow amount representing bank guarantees for customs clearance in Gabon. Long-term amounts at December 31, 2020 and 2019 include a charter payment escrow for the FPSO offshore Gabon as discussed in Note 12. The Company invests restricted and excess cash in readily redeemable money market funds. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows. As of December 31, 2020 2019 (in thousands) Cash and cash equivalents $ 47,853 $ 45,917 Restricted cash - current 86 911 Restricted cash - non-current 925 925 Abandonment funding 12,453 11,371 Total cash, cash equivalents and restricted cash $ 61,317 $ 59,124 The Company conducts regular abandonment studies to update the estimated costs to abandon the offshore wells, platforms and facilities on the Etame Marin block. This cash funding is reflected under “Other noncurrent assets” as “Abandonment funding” on the consolidated balance sheets. Future changes to the anticipated abandonment cost estimate could change the asset retirement obligation and the amount of future abandonment funding payments. See Note 11 for further discussion. On February 28, 2019, the Gabonese branch of the international commercial bank holding the abandonment funds in a U.S. dollar denominated account advised that the bank regulator required transfer of the funds to the Central Bank for African Economic and Monetary Community (“ CEMAC”) of which Gabon is one of the six member states, for conversion to local currency with a credit back to the Gabonese branch in local currency. The Etame PSC provides these payments must be denominated in U.S. dollars and the CEMAC regulations provide for establishment of a U.S. dollar account with the Central Bank. Although we requested establishment of such account, the Central Bank did not comply with our requests until February 2021. As a result, we were not able to make the annual abandonment funding payment in 2019 and 2020. In February 2021, the Central Bank authorized the Company to apply for a USD escrow account for the Abandonment Fund at Citibank Gabon . The Company is working with Citibank to complete the documentation required for the account. Amendment No. 5 to the Etame PSC also provides that in the event that the Gabonese bank fails for any reasons to reimburse all of the principal and interest due, the Contractor shall no longer be held liable for the obligation to remediate the sites. Accounts with joint venture owners – Accounts with joint venture owners represent the excess of charges billed over cash calls paid by the joint venture owners for exploration, development and production expenditures made by the Company as an operator. Accounts Receivable and Allowance for Doubtful Accounts – The Company’s accounts receivable results from sales of crude oil production, joint interest billings to its joint interest owners for their share of expenses on joint venture projects for which the Company is the operator, and receivables from the government of Gabon for reimbursable Value-Added Tax (“VAT”). Collection efforts, including remedies provided for in the contracts, are pursued to collect overdue amounts owed to the Company . Portions of the Company’s costs in Gabon (including the Company’s VAT receivable) are denominated in the local currency of Gabon, the Central African CFA Franc (“XAF”). Most of these receivables have payment terms of 30 days or less. The Company monitors the creditworthiness of the counterparties, and it has obtained credit enhancements from some parties in the form of parental guarantees or letters of credit. Joint owner receivables are secured through cash calls and other mechanisms for collection under the terms of the joint operating agreements. The Company routinely assesses the recoverability of all material receivables to determine their collectability. The Company accrues a reserve on a receivable when, based on management’s judgment, it is probable that a receivable will not be collected and the amount of such reserve may be reasonably estimated. When collectability is in doubt, the Company records an allowance against the accounts receivable and a corresponding income charge for bad debts, which appears in the “Bad debt expense and other” line item of the consolidated statements of operations. As of December 31, 2020, the outstanding VAT receivable balance, excluding the allowance for bad debt, was approximately $ 13.4 million ($ 4.5 million, net to VAALCO). As of December 31, 2020, the exchange rate was XAF 534.8 = $1.00. As of December 31, 2019, the exchange rate was XAF 585.7 = $1.00. The receivable amount, net of allowances, is reported as a non-current asset in the “Value added tax and other receivables” line item in the consolidated balance sheets. Because both the VAT receivable and the related allowances are denominated in XAF, the exchange rate revaluation of these balances into U.S. dollars at the end of each reporting period also has an impact on the Company’s results of operations. Such foreign currency gains (losses) are reported separately in the “Other, net” line item of the consolidated statements of operations. The following table provides an analysis of the change in the allowance: Year Ended December 31, 2020 2019 2018 (in thousands) Allowance for bad debt Balance at beginning of period $ ( 1,508 ) $ ( 2,535 ) $ ( 7,033 ) Bad debt charge ( 1,165 ) 341 77 Adjustment associated with reversal of allowance on Mutamba receivable 593 — — Adjustment associated with settlement of customs audit — 623 — Reclassification to leasehold costs related to signing bonus — — 4,197 Foreign currency gain (loss) ( 193 ) 63 224 Balance at end of period $ ( 2,273 ) $ ( 1,508 ) $ ( 2,535 ) Crude oil inventory – Crude oil inventories are carried at the lower of cost or market and represent the share of crude oil produced and stored on the FPSO, but unsold at the end of the period. Materials and supplies – Materials and supplies, which are included in the “Prepayments and other” line item of the consolidated balance sheet, are primarily used for production related activities. These assets are valued at the lower of cost, determined by the weighted-average method, or net realizable value. Crude Oil and natural gas properties, equipment and other – The Company uses the successful efforts method of accounting for crude oil and natural gas producing activities. Management believes that this method is preferable, as the Company has focused on exploration activities wherein there is risk associated with future success and as such earnings are best represented by drilling results. Capitalization – Costs of successful wells, development dry holes and leases containing productive reserves are capitalized and amortized on a unit-of-production basis over the life of the related reserves. Other exploration costs, including dry exploration well costs, geological and geophysical expenses applicable to undeveloped leaseholds, leasehold expiration costs and delay rentals, are expensed as incurred. The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found. At the completion of drilling activities, the costs of exploratory wells remain capitalized if a determination is made that proved reserves have been found. If no proved reserves have been found, the costs of exploratory wells are charged to expense. In some cases, a determination of proved reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells. Cost incurred for exploratory wells that find reserves that cannot yet be classified as proved are capitalized if (a) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (b) sufficient progress in assessing the reserves and the economic and operating viability of the project has been made. The status of suspended well costs is monitored continuously and reviewed quarterly. Due to the capital-intensive nature and the geographical characteristics of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination of its commercial viability. Geological and geophysical costs are expensed as incurred. Costs of seismic studies that are utilized in development drilling within an area of proved reserves are capitalized as development costs. Amounts of seismic costs capitalized are based on only those blocks of data used in determining development well locations. To the extent that a seismic project covers areas of both developmental and exploratory drilling, those seismic costs are proportionately allocated between development costs and exploration expense. Depreciation, depletion and amortization – Depletion of wells, platforms, and other production facilities are calculated on a field-by-field basis under the unit-of-production method based upon estimates of proved developed reserves. Depletion of developed leasehold acquisition costs are provided on a field-by-field basis under the unit-of-production method based upon estimates of proved reserves. Support equipment (other than equipment inventory) and leasehold improvements related to crude oil and natural gas producing activities, as well as property, plant and equipment unrelated to crude oil and natural gas producing activities, are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which are typically five years for office and miscellaneous equipment and five to seven years for leasehold improvements. Impairment – The Company reviews the crude oil and natural gas producing properties for impairment on a field-by-field basis whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment charge is recorded based on the fair value of the asset. This may occur if a field contains lower than anticipated reserves or if commodity prices fall below a level that significantly effects anticipated future cash flows on the field. The fair value measurement used in the impairment test is generally calculated with a discounted cash flow model using several Level 3 inputs that are based upon estimates the most significant of which is the estimate of net proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond the Company’s control. Reserve engineering is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact manner, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. The quantities of crude oil and natural gas that are ultimately recovered, production and operating costs, the amount and timing of future development expenditures and future crude oil and natural gas sales prices may all differ from those assumed in these estimates. Capitalized equipment inventory is reviewed regularly for obsolescence. When undeveloped crude oil and natural gas leases are deemed to be impaired, exploration expense is charged. Unproved property costs consist of acquisition costs related to undeveloped acreage in the Etame Marin block in Gabon and in Block P in Equatorial Guinea. See Note 9 for further discussion. Capitalized interest – Interest costs and commitment fees from external borrowings are capitalized on exploration and development projects that are not subject to current depletion. Interest and commitment fees are capitalized only for the period that activities are in progress to bring these projects to their intended use. Capitalized interest is added to the cost of the underlying asset and is depleted on the unit-of-production method in the same manner as the underlying assets . The Company capitalized no interest costs during the years ended December 31, 2020, 2019 and 2018. Lease commitments – The Company leases office buildings, warehouse and storage facilities, equipment and corporate housing under leasing agreements that expire at various times. All leases are characterized as operating leases and are expensed either as production expenses or general and administrative expenses. See Note 13 for further discussion. Asset retirement obligations (“ARO”) – The Company has significant obligations to remove tangible equipment and restore land or seabed at the end of crude oil and natural gas production operations. The removal and restoration obligations are primarily associated with plugging and abandoning wells, removing and disposing of all or a portion of offshore crude oil and natural gas platforms, and capping pipelines. Estimating the future restoration and removal costs is difficult and requires management to make estimates and judgments. Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, safety, and public relations considerations. A liability for ARO is recognized in the period in which the legal obligations are incurred if a reasonable estimate of fair value can be made. The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with crude oil and natural gas properties. The Company uses current retirement costs to estimate the expected cash outflows for retirement obligations. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. Initial recording of the ARO liability is offset by the corresponding capitalization of asset retirement cost recorded to crude oil and natural gas properties. To the extent these or other assumptions change after initial recognition of the liability, the fair value estimate is revised and the recognized liability adjusted, with a corresponding adjustment made to the related asset balance or income statement, as appropriate. Depreciation of capitalized asset retirement costs and accretion of asset retirement obligations are recorded over time. Depreciation is generally determined on a units-of-production basis for crude oil and natural gas production facilities, while accretion escalates over the lives of the assets to reach the expected settlement value. See Note 11 for disclosures regarding the asset retirement obligations. Where there is a downward revision to the ARO that exceeds the net book value of the related asset, the corresponding adjustment is limited to the amount of the net book value of the asset and the remaining amount is recognized as a gain. See Note 11 for further discussion. Revenue recognition – Revenues from contracts with customers are generated from sales in Gabon pursuant to crude oil sales and purchase agreements. There is a single performance obligation (delivering crude oil to the delivery point, i.e. the connection to the customer’s crude oil tanker) that gives rise to revenue recognition at the point in time when the performance obligation event takes place. In addition to revenues from customer contracts, the Company has other revenues related to contractual provisions under the Etame Marin block PSC. The Etame PSC is not a customer contract. The terms of the Etame PSC includes provisions for payments to the government of Gabon for: royalties based on 13 % of production at the published price and a shared portion of “Profit Oil” determined based on daily production rates, as well as a gross carried working interest of 7.5 % (i ncreasing to 10 % beginning June 20, 2026) for all costs . For both royalties and Profit Oil, the Etame PSC provides that the government of Gabon may settle these obligations in-kind, i.e. taking crude oil barrels, rather than with cash payments. See Note 7 for further discussion. Major maintenance activities – Costs for major maintenance are expensed in the period incurred and can include the costs of workovers of existing wells, contractor repair services, materials and supplies, equipment rentals and labor costs. Stock-based compensation – The Company measures the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of the grant. The grant date fair value for options or stock appreciation rights (“SARs”) is estimated using either the Black-Scholes or Monte Carlo method depending on the complexity of the terms of the awards granted. The SARs fair value is estimated at the grant date and remeasured at each subsequent reporting date until exercised, forfeited or cancelled. Black-Scholes and Monte Carlo models employ assumptions, based on management’s best estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the life of the stock options or SAR award. These models use the following inputs: (i) the quoted market price of the Company’s common stock on the valuation date, (ii) the maximum stock price appreciation that an employee may receive, (iii) the expected term that is based on the contractual term, (iv) the expected volatility that is based on the historical volatility of the Company’s stock for the length of time corresponding to the expected term of the option or SAR award, (v) the expected dividend yield that is based on the anticipated dividend payments and (vi) the risk-free interest rate that is based on the U.S. treasury yield curve in effect as of the reporting date for the length of time corresponding to the expected term of the option or SAR award. For restricted stock, grant date fair value is determined using the market value of the common stock on the date of grant. The stock-based compensation expense for equity awards is recognized over the requisite or derived service period, using the straight-line attribution method over the service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. Unless the awards contain a market condition, previously recognized expense related to forfeited awards is reversed in the period in which the forfeiture occurs. For awards containing a market condition, previously recognized stock-based compensation expense is not reversed when the awards are forfeited. See Note 17 for further discussion. Foreign currency transactions – The U.S. dollar is the functional currency of the Company’s foreign operating subsidiaries . Gains and losses on foreign currency transactions are included in income. Within the consolidated statements of operations line item “Other income (expense)—Other, net,” the Company recognized gains on foreign currency transactions of $ 0.2 million in 2020, while the Company recognized losses on foreign currency transactions of $ 0.2 million and $ 0.1 million in 2019, and 2018, respectively. Income taxes – The annual tax provision is based on expected taxable income, statutory rates and tax planning opportunities available to the Company in the various jurisdictions in which the Company operates. The determination and evaluation of the annual tax provision and tax positions involves the interpretation of the tax laws in the various jurisdictions in which the Company operates and requires significant judgment and the use of estimates and assumptions regarding significant future events such as the amount, timing and character of income, deductions and tax credits. Changes in tax laws, regulations, agreements and tax treaties or the level of operations or profitability in each jurisdiction would impact the tax liability in any given year. The Company also operates in foreign jurisdictions where the tax laws relating to the crude oil and natural gas industry are open to interpretation, which could potentially result in tax authorities asserting additional tax liabilities. While the income tax provision (benefit) is based on the best information available at the time, a number of years may elapse before the ultimate tax liabilities in the various jurisdictions are determined. We also record as income tax expense the increase or decrease in the value of the government’s allocation of Profit Oil which results due to changes in value from the time the allocation is originally produced to the time the allocation is actually lifted. Judgment is required in determining whether deferred tax assets will be realized in full or in part. Management assesses the available positive and negative evidence to estimate if existing deferred tax assets will be utilized, and when it is estimated to be more-likely-than-not that all or some portion of specific deferred tax assets, such as net operating loss carry forwards or foreign tax credit carryovers, will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that are estimated to not be realizable. Factors considered are earnings generated in previous periods, forecasted earnings and the expiration period of carryovers. In certain jurisdictions, the Company may deem the likelihood of realizing deferred tax assets as remote where the Company expects that, due to the structure of operations and applicable law, the operations in such jurisdictions will not give rise to future tax consequences. For such jurisdictions, the Company has not recognized deferred tax assets. Should the expectations change regarding the expected future tax consequences, the Company may be required to record additional deferred taxes that could have a material effect on the consolidated financial position and results of operations. See Note 8 for further discussion. Derivative instruments and hedging activities – The Company enters into crude oil hedging arrangements from time to time in an effort to mitigate the effects of commodity price volatility and enhance the predictability of cash flows relating to the marketing of a portion of our crude oil production. While these instruments mitigate the cash flow risk of future decreases in commodity prices, they may also curtail benefits from future increases in commodity prices. The Company records balances resulting from commodity risk management activities in the consolidated balance sheets as either assets or liabilities measured at fair value. Gains and losses from the change in fair value of derivative instruments and cash settlements on commodity derivatives are presented in the “Derivative instruments gain (loss), net” line item located within the “Other income (expense)” section of the consolidated statements of operations. See Note 10 for further discussion. Fair value – Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair-value hierarchy are as follows: Level 1 – Inputs represent quoted prices in active markets for identical assets or liabilities (for example, exchange-traded commodity derivatives). Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in the internally developed present value of future cash flows model that underlies the fair-value measurement). Fair value of financial instruments – The Company’s current assets and liabilities include financial instruments such as cash and cash equivalents, restricted cash, accounts receivable, derivative assets and liabilities, accounts payable, liabilities for SARs and guarantee. As discussed further in Note 10, derivative assets and liabilities are measured and reported at fair value each period with changes in fair value recognized in net income. The derivative asset commodity swaps referenced below are reported in “ Prepayments and other” on the consolidated balance sheet. SARs liabilities are measured and reported at fair value using level 2 inputs each period with changes in fair value recognized in net income. The current portion of the SARs liabilities is reported in “Accrued liabilities and other” on the consolidated balance sheet while the long-term portion is reported in “Other long-term liabilities”. With respect to the other financial instruments included in current assets and liabilities, the carrying value of each financial instrument approximates fair value primarily due to the short-term maturity of these instruments. As of December 31, 2020 Balance Sheet Line Level 1 Level 2 Level 3 Total (in thousands) Liabilities SARs liability Accrued liabilities $ — $ 2,289 $ — $ 2,289 SARs liability Other long-term liabilities — 193 — 193 $ — $ 2,482 $ — $ 2,482 As of December 31, 2019 Balance Sheet Line Level 1 Level 2 Level 3 Total (in thousands) Assets Derivative asset commodity swaps Prepayments and other $ — $ 636 $ — $ 636 $ — $ 636 $ — $ 636 Liabilities SARs liability Accrued liabilities $ — $ 2,638 $ — $ 2,638 SARs liability Other long-term liabilities — 852 — 852 $ — $ 3,490 $ — $ 3,490 Earnings per Share – Basic earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities consist of unvested restricted stock awards and stock options using the treasury method. Under the treasury method, the amount of unrecognized compensation expense related to unvested stock-based compensation grants or the proceeds that would be received if the stock options were exercised are assumed to be used to repurchase shares at the average market price. When a loss exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. See Note 6 for further discussion. Other, net – “Other, net” in non-operating income and expenses includes gains and losses from foreign currency transactions as discussed above as well as taxes other than income taxes. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2020 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 3 . NEW ACCOUNTING STANDARDS Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740: Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which removes certain exceptions to the general principles in Topic 740. ASU 2019-12 is effective for the fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) related to the calculation of credit losses on financial instruments. All financial instruments not accounted for at fair value will be impacted, including the Company’s trade and joint venture owners’ receivables. Allowances are to be measured using a current expected credit loss model as of the reporting date that is based on historical experience, current conditions and reasonable and supportable forecasts. This is significantly different from the current model that increases the allowance when losses are probable. Initially, ASU 2016-13 was effective for all public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and will be applied with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The FASB subsequently issued ASU No. 2019-04 (“ASU 2019-04”): Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives, and Topic 825, Financial Instruments and ASU No. 2019-05 (“ASU 2019-05”): Financial Instruments-Credit Losses (Topic 326) - Targeted Transition Relief. ASU 2019-04 and ASU 2019-05 provide certain codification improvements related to implementation of ASU 2016-13 and targeted transition relief consisting of an option to irrevocably elect the fair value option for eligible instruments. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This amendment deferred the effective date of ASU No. 2016-13 from January 1, 2020 to January 1, 2023 for calendar year end smaller reporting companies. T he Company plans to defer the implementation of ASU 2016-13, and related updates, until January 2023. In March 2020, the FASB issued ASU No. 2020-03 - Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the CECL standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments in ASU 2020-03 have different effective dates. The adoption of this guidance is not expected to have a material impact on the Company's financial statements. Adopted In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other, in making the determination as to which implementation costs are to be capitalized as assets and which costs are to be expensed as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted, and an entity can elect to apply the new guidance on a prospective or retrospective basis. The Company’s adoption of this guidance on January 1, 2020 did not have an impact on its financial position, results of operations, cash flows and related disclosures . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). This ASU modifies the disclosure requirements for fair value measurements. ASU 2018-13 removes the requirement to disclose (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. ASU 2018-13 requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019. The Company’s adoption of this guidance on January 1, 2020 did not have a material impact on its financial position, results of operations, cash flows and related disclosures . In March 2020, the FASB issued ASU No. 2020-04 - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (IBORs) and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The amendments in ASU 2020-04 are available to be adopted for all entities as of March 12, 2020, the date of issuance of Topic 848, and the relief provided within Topic 848 lasts until December 31, 2022. As the Company currently has no debt instruments or contracts where LIBOR is a material provision of contracts, the adoption of this guidance will not have a material impact on the Company's financial statements. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions | 4. ACQUISITIONS AND DISPOSITIONS Acquisition of Sasol Gabon S.A.’s Interest in Etame On February 25, 2021, the Company completed the acquisition of Sasol Gabon S.A.’s (“Sasol’s”) 27.8 % working interest in the Etame Marin block offshore Gabon pursuant to the sale and purchase agreement (“SPA”) dated November 17, 2020 (the “Sasol Acquisition”). The effective date of the transaction was July 1, 2020. The final cash settlement payment for the Sasol Acquisition was $ 29.6 million, which was paid from cash on hand and reflected the $ 44.0 million purchase price less (i) a cash deposit of approximately $ 4.3 million paid on the SPA execution date, (ii) net cash flows generated from the Sasol interest from July 1, 2020 through the closing date and (iii) other purchase price adjustments pursuant to the SPA. In addition, under the terms of the SPA, a contingent payment of $ 5.0 million will be payable to Sasol should the average Dated Brent price over a consecutive 90-day period from July 1, 2020 to June 30, 2022 exceed $ 60.00 per barrel . Prior to the Sasol Acquisition, the Company owned and operated a 31.1 % working interest in Etame. The Sasol Acquisition increased the Company’s working interest to 58.8 %, almost doubling the Company’s total production and reserves. As a result of the acquisition, the net portion of production and costs relating to the Company’s Etame operations increased from 31.1 % to 58.8 % on February 25, 2021. Reserves, production and financial results for the interests acquired will be included in VAALCO’s results for periods after the February 25, 2021 closing date of the transaction. Discontinued Operations - Angola In November 2006, the Company signed a production sharing contract for Block 5 offshore Angola (“PSA”). The working interest is 40 %, and the Company carries Sonangol P&P for 10 % of the work program. On September 30, 2016, the Company notified Sonangol P&P that the Company was withdrawing from the joint operating agreement effective October 31, 2016. On November 30, 2016, the Company notified the national concessionaire, Sonangol E.P., that the Company was withdrawing from the PSA. Further to the decision to withdraw from Angola, the Company has taken actions to close the office in Angola and reduce future activities in Angola. As a result of this strategic shift, the Company classified all the related assets and liabilities as those of discontinued operations in the consolidated balance sheets. The operating results of the Angola segment have been classified as discontinued operations for all periods presented in the consolidated statements of operations. The Company segregated the cash flows attributable to the Angola segment from the cash flows from continuing operations for all periods presented in the consolidated statements of cash flows. The following tables summarize selected financial information related to the Angola segment assets and liabilities as of December 31, 2020 and 2019 and its results of operations for the years ended December 31, 2020, 2019 and 2018. Summarized Results of Discontinued Operations Year Ended December 31, 2020 2019 2018 (in thousands) Operating costs and expenses: Gain on settlement of drilling obligation $ — $ ( 7,193 ) $ — General and administrative expense 93 344 467 Total operating costs, expenses and (recovery) 93 ( 6,849 ) 467 Operating income (loss) ( 93 ) 6,849 ( 467 ) Other expense: Other, net ( 5 ) — ( 29 ) Total other expense ( 5 ) — ( 29 ) Income (loss) from discontinued operations before income taxes ( 98 ) 6,849 ( 496 ) Income tax expense (benefit) — 1,438 — Income (loss) from discontinued operations $ ( 98 ) $ 5,411 $ ( 496 ) Assets and Liabilities Attributable to Discontinued Operations As of December 31, 2020 2019 (in thousands) ASSETS Accounts with joint venture owners $ — $ — Total current assets — — Total assets $ — $ — LIABILITIES Current liabilities: Accounts payable $ — $ 8 Accrued liabilities and other 7 342 Total current liabilities 7 350 Total liabilities $ 7 $ 350 Drilling Obligation In the first quarter of 2019, the Company and Sonangol E.P. entered into a settlement agreement finalizing the Company’s rights, liabilities and outstanding obligations for Block 5 in Angola. Pursuant to the settlement agreement, the Company agreed to pay $ 4.5 million to Angola National Agency of Petroleum, Gas, and Biofuels, as National Concessionaire, and to eliminate the $ 3.3 million receivable from Sonangol P&P. The receivable was related to joint interest billings and was reflected as a current asset from discontinued operations at year-end 2018. As a result, the Company adjusted a previously accrued liability and recognized a net of tax non-cash benefit from discontinued operations of $ 5.7 million in the first quarter of 2019. In July 2019, subsequent to the publication of an executive decree from the Ministry of Mineral Resources and Petroleum, the Company paid the $ 4.5 million due under the settlement agreement. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | 5. SEGMENT INFORMATION The Company’s operations are based in Gabon and Equatorial Guinea. Each of the two reportable operating segments is organized and managed based upon geographic location. The Company’s Chief Executive Officer, who is the chief operating decision maker, and m anagement review and evaluate the operation of each geographic segment separately primarily based on Operating income (loss). The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues are based on the location of hydrocarbon production. Corporate and other is primarily corporate and operations support costs that are not allocated to the reportable operating segments. Segment activity of continuing operations for the years ended December 31, 2020, 2019 and 2018 and long-lived assets and segment assets at December 31, 2020 and 2019 are as follows: Year Ended December 31, 2020 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Revenues-crude oil and natural gas sales $ 67,176 $ — $ — $ 67,176 Depreciation, depletion and amortization 9,028 — 354 9,382 Impairment of proved crude oil and natural gas properties 30,625 — — 30,625 Bad debt (recovery) expense and other 1,165 — — 1,165 Other operating expense, net ( 1,669 ) — — ( 1,669 ) Operating loss ( 17,261 ) ( 431 ) ( 9,571 ) ( 27,263 ) Derivative instruments gain, net — — 6,577 6,577 Interest income, net — — 155 155 Other, net 194 3 ( 68 ) 129 Income tax expense 16,204 1 11,476 27,681 Additions to crude oil and natural gas properties and equipment – accrual 10,503 — ( 9 ) 10,494 Year Ended December 31, 2019 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Revenues-crude oil and natural gas sales $ 84,521 $ — $ — $ 84,521 Depreciation, depletion and amortization 6,825 — 258 7,083 Gain on revision of asset retirement obligations ( 379 ) — — ( 379 ) Bad debt (recovery) expense and other ( 341 ) — — ( 341 ) Other operating expense, net ( 4,456 ) — 35 ( 4,421 ) Operating income (loss) 35,049 ( 438 ) ( 13,418 ) 21,193 Derivative instruments loss, net — — ( 446 ) ( 446 ) Interest income, net 5 — 728 733 Other, net ( 230 ) ( 3 ) ( 205 ) ( 438 ) Income tax expense 20,311 12 3,567 23,890 Additions to crude oil and natural gas properties and equipment – accrual 22,116 — 57 22,173 Year Ended December 31, 2018 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Revenues-crude oil and natural gas sales $ 104,938 $ — $ 5 $ 104,943 Depreciation, depletion and amortization 5,176 — 420 5,596 Gain on revision of asset retirement obligations ( 3,325 ) — — ( 3,325 ) Bad debt (recovery) expense and other ( 77 ) — — ( 77 ) Other operating expense, net 365 — — 365 Operating income (loss) 61,930 ( 470 ) ( 10,173 ) 51,287 Derivative instruments gain, net — — 4,264 4,264 Interest income (expense), net ( 396 ) — 251 ( 145 ) Other, net 92 ( 4 ) ( 20 ) 68 Income tax benefit ( 26,670 ) — ( 16,584 ) ( 43,254 ) Additions to crude oil and natural gas properties and equipment – accrual 38,430 187 17 38,634 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Long-lived assets from continuing operations: As of December 31, 2020 $ 26,832 $ 10,000 $ 204 $ 37,036 As of December 31, 2019 $ 57,930 $ 10,000 $ 328 $ 68,258 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Total assets from continuing operations: As of December 31, 2020 $ 101,399 $ 10,267 $ 29,566 $ 141,232 As of December 31, 2019 $ 151,686 $ 10,087 $ 49,764 $ 211,537 Information about the Company’s most significant customers The Company sells crude oil production from Gabon under term contracts with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. From August 2015 through January 2019, the Company sold its crude oil to Glencore Energy UK Ltd. (“Glencore”) and from February 2019 through January 2020, crude sales were to Mercuria Energy Trading SA (“Mercuria”). Sales of crude oil to Glencore and Mercuria were approximately 6 % and 94 %, respectively, of total revenues for the year ended December 31, 2019. The Company signed a new contract with ExxonMobil that covers sales from February 2020 through July 2021 with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. Sales of crude oil to Mercuria and ExxonMobil were approximately 14 % and 86 %, respectively, of the Company’s total revenues from customers for the year ended December 31, 2020. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. EARNINGS PER SHARE A reconciliation of reported net income (loss) to net income (loss) used in calculating earnings per share (“EPS”) as well as a reconciliation from basic to diluted shares follows : Year Ended December 31, 2020 2019 2018 (in thousands) Net income (loss) (numerator): Income (loss) from continuing operations $ ( 48,083 ) $ ( 2,848 ) $ 98,728 (Income) loss from continuing operations attributable to unvested shares — 21 ( 1,231 ) Numerator for basic ( 48,083 ) ( 2,827 ) 97,497 (Income) loss from continuing operations attributable to unvested shares — ( 21 ) — Numerator for dilutive $ ( 48,083 ) $ ( 2,848 ) $ 97,497 Income (loss) from discontinued operations, net of tax $ ( 98 ) $ 5,411 $ ( 496 ) (Income) loss from discontinued operations attributable to unvested shares — ( 39 ) 6 Numerator for basic ( 98 ) 5,372 ( 490 ) (Income) loss from discontinued operations attributable to unvested shares — 39 — Numerator for dilutive $ ( 98 ) $ 5,411 $ ( 490 ) Net income (loss) $ ( 48,181 ) $ 2,563 $ 98,232 Net (income) loss attributable to unvested shares — ( 18 ) ( 1,225 ) Numerator for basic ( 48,181 ) 2,545 97,007 Net (income) loss attributable to unvested shares — 18 — Numerator for dilutive $ ( 48,181 ) $ 2,563 $ 97,007 Weighted average shares (denominator): Basic weighted average shares outstanding 57,594 59,143 59,248 Effect of dilutive securities — — 749 Diluted weighted average shares outstanding 57,594 59,143 59,997 Stock options and unvested restricted stock grants excluded from dilutive calculation because they would be anti-dilutive 3,545 603 1,316 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [Abstract] | |
Revenue | 7. REVENUE Revenues from contracts with customers are generated from sales in Gabon pursuant to crude oil sales and purchase agreements (“COSPAs”). COSPAs with customers are renegotiated near the end of the contract term and may be entered into with a different customer or the same customer going forward. Except for internal costs, which are expensed as incurred, there are no upfront costs associated with obtaining a new COSPA. See Note 5 under “ Information about the Company’s most significant customers” for further discussion. Customer sales generally occur on a monthly basis when the customer’s tanker arrives at the FPSO and the crude oil is delivered to the tanker through a connection. There is a single performance obligation (delivering crude oil to the delivery point, i.e. the connection to the customer’s crude oil tanker) that gives rise to revenue recognition at the point in time when the performance obligation event takes place. This is referred to as a “lifting”. Liftings can take one to two days to complete. The intervals between liftings are generally one month ; however, changes in the timing of liftings will impact the number of liftings that occur during the period. Therefore, the performance obligation attributable to volumes to be sold in future liftings are wholly unsatisfied, and there is no transaction price allocated to remaining performance obligations. The Company has utilized the practical expedient in ASC Topic 606-10-50-14(a), which states that the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. The Company accounts for production imbalances as a reduction in reserves. The volumes sold may be more or less than the volumes that the Company is entitled based on the ownership interest in the property, and the Company would recognize a liability if the existing proved reserves were not adequate to cover an imbalance. For each lifting completed under a COSPA, payment is made by the customer in U.S. Dollars by electronic transfer thirty days after the date of the bill of lading. For each lifting of crude oil, the price is determined based on a formula using published Dated Brent prices as well as market differentials plus a fixed contract differential. Generally, no significant judgments or estimates are required as of a given filing date with regard to applicable price or volumes sold because all of the parameters are known with certainty related to liftings that occurred in the recently completed calendar quarter. As such, the Company deemed this situation to be characterized as a fixed price situation. In addition to revenues from customer contracts, the Company has other revenues related to contractual provisions under the Etame Marin block PSC. The Etame PSC is not a customer contract, and therefore the associated revenues are not within the scope of ASC 606. The terms of the Etame PSC includes provisions for payments to the government of Gabon for: royalties based on 13 % of production at the published price and a shared portion of “Profit Oil” determined based on daily production rates, as well as a gross carried working interest of 7.5 % (i ncreasing to 10 % beginning June 20, 2026) for all costs . For both royalties and Profit Oil, the Etame PSC provides that the government of Gabon may settle these obligations in-kind, i.e. taking crude oil barrels, rather than with cash payments. To date, the government of Gabon has not elected to take its royalties in-kind, and this obligation is settled through a monthly cash payment. Payments for royalties are reflected as a reduction in revenues from customers. Should the government elect to take the production attributable to its royalty in-kind, the Company would no longer have sales to customers associated with production assigned to royalties. With respect to the government’s share of Profit Oil, the Etame PSC provides that corporate income tax is satisfied through the payment of Profit Oil. In the consolidated statements of operations, the government’s share of revenues from Profit Oil is reported in revenues with a corresponding amount reflected in the current provision for income tax expense. Prior to February 1, 2018, the government did not take any of its share of Profit Oil in-kind. These revenues have been included in revenues to customers as the Company entered into the contract with the customer to sell the crude oil and was subject to the performance obligations associated with the contract. For the in-kind sales by the government beginning February 1, 2018, these sales are not considered revenues under a customer contract as the Company is not a party to the contracts with the buyers of this crude oil. However, consistent with the reporting of Profit Oil in prior periods, the amount associated with the Profit Oil under the terms of the Etame PSC is reflected as revenue with an offsetting amount reported in current income tax expense. Payments of the income tax expense are reported in the period that the government takes its Profit Oil in-kind, i.e. the period in which it lifts the crude oil. As of December 31, 2020, the foreign taxes payable attributable to this obligation is $ 0.9 million. As of December 31, 2019, the foreign income taxes payable attributable to this obligation was $ 5.7 million. Certain amounts associated with the carried interest in the Etame Marin block discussed above are reported as revenues. In this carried interest arrangement, the carrying parties, which include the Company and other working interest owners, are obligated to fund all of the working interest costs that would otherwise be the obligation of the carried party. The carrying parties recoup these funds from the carried interest party’s revenues. The following table presents revenues from contracts with customers as well as revenues associated with the obligations under the Etame PSC: Year Ended December 31, 2020 2019 2018 Revenue from customer contracts: (in thousands) Sales under the COSPA $ 67,041 $ 86,554 $ 104,891 Gabonese government share of Profit Oil — — 2,193 U.S. crude oil and natural gas revenue — — 5 Other items reported in revenue not associated with customer contracts: Gabonese government share of Profit Oil taken in-kind 8,738 7,268 9,385 Carried interest recoupment 1,631 2,950 3,545 Royalties ( 10,234 ) ( 12,251 ) ( 15,076 ) Total revenue, net $ 67,176 $ 84,521 $ 104,943 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 8. INCOME TAXES VAALCO and its domestic subsidiaries file a consolidated U.S. income tax return. Certain foreign subsidiaries also file tax returns in their respective local jurisdictions. Income taxes attributable to continuing operations for the years ended December 31, 2020, 2019, and 2018 are attributable to foreign taxes payable in Gabon as well as income taxes in the U.S. Provision for income taxes related to income (loss) from continuing operations consists of the following: Year Ended December 31, 2020 2019 2018 U.S. Federal: (in thousands) Current $ ( 337 ) $ ( 337 ) $ ( 674 ) Deferred 11,814 3,916 ( 15,910 ) Foreign: Current 3,859 9,747 14,327 Deferred 12,345 10,564 ( 40,997 ) Total $ 27,681 $ 23,890 $ ( 43,254 ) As of December 31, 2020 and 2019, the Company had deferred tax assets of $ 126.3 million and $ 108.8 million, respectively. The deferred tax assets are primarily attributable to Gabon and U.S. federal income taxes related to basis differences in fixed assets, foreign tax credit carryforwards, as well as U.S. and foreign net operating loss carryforwards. I n assessing the realizability of the deferred tax assets, the Company considers all available positive and negative evidence and makes a determination whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which the deferred tax assets can be utilized. Numerous judgments and assumptions are inherent in this assessment, including the determination of future taxable income, future operating conditions (particularly as related to prevailing crude oil prices). As of December 31, 2020, the Company determined it is more likely than not that it would not be able to utilize its deferred tax assets. As of December 31, 2019, the Company had anticipated it would not be able to fully utilize its deferred tax assets. On the basis of these evaluations, a valuation allowance of $ 126.3 million and $ 84.6 million were recorded as of December 31, 2020 and 2019, respectively. Valuation allowances reduce the deferred tax assets to the amount that is more likely than not to be realized. Taxes paid in Gabon with respect to earnings from the Etame Marin block are determined under the provisions of the Etame PSC. In accordance with the Etame PSC, the Consortium maintains a “Cost Account,” which accumulates capital costs and operating expenses that are deductible against revenues, net of royalties, in determining taxable profits. For each calendar year, the Consortium is entitled to receive a percentage of the production (“Cost Recovery Percentage”) remaining after deducting royalties so long as there are amounts remaining in the Cost Account. Prior to the PSC Extension, the Cost Recovery Percentage was 70 %. As a result of the PSC Extension, the Cost Recovery Percentage has been increased to 80 % for the period from September 17, 2018 through September 16, 2028. See Note 9 for further discussion of the PSC Extension. After September 16, 2028, the Cost Recovery Percentage returns to 70 %. The difference between revenues, net of royalties, and the costs recovered for the period is “Profit Oil.” As payment of corporate income taxes, the Consortium pays the government an allocation of the remaining Profit Oil production from the contract area ranging from 50 % to 60 %. The percentage of Profit Oil paid to the government as tax is a function of production rates. When the Cost Account is less than the entitled recovery percentage (either 70 % or 80 %, depending on the period), Profit Oil as a percentage of revenues increases and Gabon taxes paid increase as a percentage of revenues. We also record as income tax expense the increase or decrease in the value of the government’s allocation of Profit Oil which results due to change in value from the time the allocation is originally produced to the time the allocation is actually lifted. The primary differences between the financial statement and tax bases of assets and liabilities resulted in deferred tax assets associated with continuing operations at December 31, 2020 and 2019 are as follows: As of December 31, (in thousands) 2020 2019 Deferred tax assets: Basis difference in fixed assets $ 27,995 $ 26,590 Foreign tax credit carryforward 34,144 34,144 Alternative minimum tax credit carryover — 337 U.S. federal net operating losses 32,579 30,572 Foreign net operating losses 24,602 11,770 Asset retirement obligations 3,640 3,407 Operating leases 1,472 — Basis difference in accrued liabilities 368 676 Basis difference in receivables 331 171 Other 1,121 1,120 Total deferred tax assets 126,252 108,787 Valuation allowance ( 126,252 ) ( 84,628 ) Net deferred tax assets $ — $ 24,159 Foreign tax credits will expire between the years 2021 and 2025 . Foreign net operating losses (“NOLs”) are not subject to expiry dates. The NOLs for the Gabon subsidiaries are included in the respective subsidiaries’ cost oil accounts, which will be offset against future taxable revenues. All of the Company’s U.S. federal NOLs that were incurred prior to 2018 will expire between 2035 and 2037 . U.S. federal NOLs incurred after 2017 do not expire. The ability to utilize NOLs and other tax attributes could be subject to a limitation if the Company were to undergo an ownership change as defined in Section 382 of the Tax Code. The Company does not anticipate utilization of the foreign tax credits prior to expiration nor the utilization of NOLs and has recorded a full valuation allowance on both of these deferred tax assets. The Company recognizes the financial statement benefit of a tax position only after determining that they are more likely than not to sustain the position following an audit. The Company believes that its income tax positions and deductions will be sustained on audit, and therefore no reserves for uncertain tax positions have been established. Accordingly, no interest or penalties have been accrued as of December 31, 2020 and 2019. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Income (loss) from continuing operations before income taxes is attributable as follows: Year Ended December 31, (in thousands) 2020 2019 2018 U.S. $ ( 2,908 ) $ ( 13,330 ) $ ( 5,672 ) Foreign ( 17,494 ) 34,372 61,146 $ ( 20,402 ) $ 21,042 $ 55,474 The reconciliation of income tax expense (benefit) attributable to income (loss) from continuing operations to income tax on income (loss) from continuing operations at the U.S. statutory rate is as follows: Year Ended December 31, (in thousands) 2020 2019 2018 Tax provision computed at U.S. statutory rate $ ( 4,284 ) $ 4,386 $ 11,650 Foreign taxes not offset in U.S. by foreign tax credits ( 9,801 ) 16,015 24,840 Recognition of foreign deferred tax assets, net of U.S. impact — — ( 45,751 ) Unrealizable foreign deferred tax assets — — 24,176 Permanent differences 97 180 ( 104 ) Foreign tax credit expirations — 9,616 4,311 Increase/(decrease) in valuation allowance 41,635 ( 6,307 ) ( 62,270 ) Other 34 — ( 106 ) Total income tax expense (benefit) $ 27,681 $ 23,890 $ ( 43,254 ) For the years ended December 31, 2020, 2019 and 2018, the Company is subject to foreign and U.S. federal taxes only, with no allocations made to state and local taxes. The following table summarizes the tax years that remain subject to examination by major tax jurisdictions. Jurisdiction Years U.S. 2011 - 2020 Gabon 2016 - 2020 |
Crude Oil and Natural Gas Prope
Crude Oil and Natural Gas Properties and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Crude Oil and Natural Gas Properties and Equipment [Abstract] | |
Crude Oil and Natural Gas Properties and Equipment | 9. CRUDE OIL AND NATURAL GAS PROPERTIES AND EQUIPMENT The Company’s crude oil and natural gas properties and equipment is comprised of the following: As of December 31, 2020 2019 (in thousands) Crude oil and natural gas properties and equipment - successful efforts method: Wells, platforms and other production facilities $ 441,879 $ 422,651 Work-in-progress 169 7,378 Undeveloped acreage 21,476 23,771 Equipment and other 9,276 11,157 472,800 464,957 Accumulated depreciation, depletion, amortization and impairment ( 435,764 ) ( 396,699 ) Net crude oil and natural gas properties, equipment and other $ 37,036 $ 68,258 Extension of Term of Etame Marin Block PSC On September 25, 2018, VAALCO together with the other joint venture owners in the Etame Marin block (the “Consortium”) received an implementing Presidential Decree from the government of Gabon authorizing an extension for additional years (“PSC Extension”) to the Consortium to operate in the Etame Marin block. As of December 31, 2020, the Company’s subsidiary, VAALCO Gabon S.A., had 33.575 % participating interest (working interest including the working interest attributable to the carried interest owner) in the Etame Marin block. The PSC Extension extends the term for each of the three exploitation areas in the Etame Marin block for a period of ten years with effect from September 17, 2018, the effective date of the PSC Extension. Prior to the PSC Extension, the exploitation periods for the three exploitation areas in the Etame Marin block would expire beginning in June 2021. The PSC Extension also grants the Consortium the right for two additional extension periods of five years each. The PSC Extension further allows the Consortium to explore the potential for resources within the area of each Exclusive Exploitation Authorization as defined in the PSC Extension. In consideration for the PSC Extension, the Consortium agreed to a signing bonus of $ 65.0 million ($ 21.8 million, net to VAALCO) payable to the government of Gabon (the “signing bonus”). The Consortium paid $ 35.0 million ($ 11.8 million, net to VAALCO) in cash on September 26, 2018 and paid $ 25.0 million ($ 8.4 million, net to VAALCO) through an agreed upon reduction of the VAT receivable owed by the government of Gabon to the Consortium as of the effective date. An additional $ 5.0 million ($ 1.7 million, net to VAALCO) was to be paid in cash by the Consortium following the end of the drilling activities described below. The Company accrued the $ 1.7 million share of this remaining payment as of December 31, 2019 and the payment was made in February 2020. The amount paid through a reduction in VAT was recorded at $ 4.2 million, which represented the book value of the receivable, net of the valuation allowance as of the effective date. In addition, the Company recorded an increase of $ 18.6 million resulting from the deferred tax impact for the difference between book basis and tax basis. A corresponding $ 18.6 million deferred tax liability was recorded, which reduced the net deferred tax assets. The Company allocated the share of the signing bonus between proved and unproved leasehold costs using the acreage attributable to the previous exploitation areas and the additional acreage in the expanded exploitation areas resulting in $ 22.5 million being attributed to proved leasehold costs and $ 13.7 million attributed to unproved leasehold costs. Under the PSC Extension, by September 16, 2020, the Consortium was required to drill two wells and two appraisal wellbores. The Consortium completed drilling one development well and one appraisal wellbore during the second half of 2019 and completed the remaining development well and appraisal wellbore during the first quarter 2020. The Consortium was also required to complete two technical studies by September 16, 2020. During September 2020, the Consortium completed the two technical studies at a cost of $ 1.5 million gross ($ 0.5 million, net to VAALCO). In accordance with the Etame Marin block PSC, the Consortium maintains a “Cost Account,” which accumulates capital costs and operating expenses that are deductible against revenues, net of royalties, in determining taxable profits. Prior to the PSC Extension, the Consortium was entitled to take up to 70 % of production remaining after the 13 % royalty (“Cost Recovery Percentage”) to recover its costs so long as there are amounts remaining in the Cost Account. Under the PSC Extension, the Cost Recovery Percentage is increased to 80 % for the ten-year period from September 17, 2018 through September 16, 2028. After September 16, 2028, the Cost Recovery Percentage returns to 70 %. Prior to the PSC Extension, the PSC provided for the government of Gabon to take a 7.5 % gross working interest carried by the Consortium. The government of Gabon transferred this interest to a third party. Pursuant to the PSC Extension, the government of Gabon will acquire from the Consortium an additional 2.5 % gross working interest carried by the Consortium effective June 20, 2026. VAALCO’s share of this interest to be transferred to the government of Gabon is 0.8 %. Proved Properties The Company reviews the crude oil and natural gas producing properties for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. When a crude oil and natural gas property’s undiscounted estimated future net cash flows are not sufficient to recover its carrying amount, an impairment charge is recorded to reduce the carrying amount of the asset to its fair value. The fair value of the asset is measured using a discounted cash flow model relying primarily on Level 3 inputs into the undiscounted future net cash flows. The undiscounted estimated future net cash flows used in the impairment evaluations at each quarter end are based upon the most recently prepared independent reserve engineers’ report adjusted to use forecasted prices from the forward strip price curves near each quarter end and adjusted as necessary for drilling and production results. During the three months ended March 31, 2020, declining forecasted oil prices caused the Company to perform an impairment review. The impairment test was performed using the year end 2019 independently prepared reserve report, estimated reserves for the South East Etame 4H well completed in March 2020 and forward price curves. The Company performed a recoverability test as defined under ASC 932 and ASC 360, noting that the undiscounted cash flows related to the Etame, Avouma, Ebouri, Southeast Etame and North Tchibala fields were less than the book values for these fields resulting in the Company recording a $ 30.6 million impairment loss to write down the Company’s investment in each field to their fair value of $ 15.6 million. There were no triggering events after the three months ended March 31, 2020 or in the year ended December 31, 2019 that would cause the Company to believe the value of crude oil and natural gas producing properties should be impaired . Undeveloped Leasehold Costs VAALCO acquired a 31 % working interest in an undeveloped portion of a block (“Block P”) offshore Equatorial Guinea in 2012 . The Company acquired an additional working interest of 12 % from Atlas Petroleum, thereby increasing its working interest to 43 % in 2020 , in exchange for a potential future payment of $ 3.1 million in the event that there is commercial production from Block P . On August 27, 2020, the amendment to the production sharing contract to ratify the Company’s increased working interest and appointment as operator was approved by the Ministry of Mines and Hydrocarbons (“EG MMH”). VAALCO is seeking to farm down its interest in Block P in exchange for funding a substantial portion of an appraisal well. As of December 31, 2020 , the Company had $ 10.0 million recorded for the book value of the undeveloped leasehold costs associated with the Block P license. VAALCO and its joint venture owners are evaluating the timing and budgeting for development and exploration activities under a development and production area in the block, including the approval of a development and production plan. The Block P production sharing contract provides for a development and production period of 25 years from the date of approval of a development and production plan. As a result of the PSC Extension, the exploitation area on the Etame Marin block was expanded to include previously undeveloped acreage. The Company allocated $ 6.7 million of the share of the signing bonus and $ 7.1 million of the $ 18.6 million resulting from the deferred tax impact for the difference between book basis and tax basis to unproved leasehold costs using the acreage attributable to the previous exploitation areas and the additional acreage in the expanded exploitation areas. Exploitation of this additional area is permitted throughout the term of the Etame PSC. As a result of discovering reserves in connection with drilling the South East Etame 4H development well in March 2020, $ 2.3 million of costs were transferred to proved leasehold costs leaving a remaining $ 11.5 million in unproved leasehold costs. Capitalized Equipment Inventory Capitalized equipment inventory is reviewed regularly for obsolescence. Adjustments for inventory obsolescence are recorded in the “ Other operating income (expense), net” line item of the consolidated statements of operations. During the year ended December 31, 2020 , the Company recorded $ 0.9 million in adjustments for inventory obsolescence. Adjustments for inventory obsolescence were not material for the years ended December 31, 2019 and 2018. |
Derivatives and Fair Value
Derivatives and Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives and Fair Value [Abstract] | |
Derivatives and Fair Value | 10. DERIVATIVES AND FAIR VALUE The Company uses derivative financial instruments to achieve a more predictable cash flow from crude oil production by reducing the exposure to price fluctuations. See Note 2 for further information. Commodity swaps - In June 2018, the Company entered into commodity swaps at a Dated Brent weighted average of $ 74.00 per barrel for the period from and including June 2018 through June 2019 for a quantity of approximately 400,000 barrels. On May 6, 2019, the Company entered into commodity swaps at a Dated Brent weighted average of $ 66.70 per barrel for the period from and including July 2019 through June 2020 for an approximate quantity of 500,000 barrels. As of December 31, 2020, the Company did not have unexpired commodity swaps. On January 22, 2021, the Company entered into commodity swaps at a Dated Brent weighted average of $ 53.10 per barrel for the period from and including February 2021 through January 2022 for a quantity of 709,262 barrels. While the commodity swaps are intended to be an economic hedge to mitigate the impact of a decline in crude oil prices, the Company has not elected hedge accounting. The contracts are being measured at fair value each period, with changes in fair value recognized in net income. The Company does not enter into derivative instruments for speculative or trading proposes. The crude oil swaps are measured at fair value using the Income Method. Level 2 observable inputs used in the valuation model include market information as of the reporting date, such as prevailing Brent crude futures prices, Brent crude futures commodity price volatility and interest rates. The determination of the swaps’ fair value includes the impact of the counterparty’s non-performance risk. To mitigate counterparty risk, the Company enters into such derivative contracts with creditworthy financial institutions deemed by management as competent and competitive market makers. The following table sets forth the gain (loss) on derivative instruments on the consolidated statements of operations: Year Ended December 31, Derivative Item Statement of Operations Line 2020 2019 2018 (in thousands) Crude oil swaps Realized gain - contract settlements $ 7,216 $ 2,439 $ 744 Unrealized gain (loss) ( 639 ) ( 2,885 ) 3,520 Derivative instruments gain (loss), net $ 6,577 $ ( 446 ) $ 4,264 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligations [Abstract] | |
Asset Retirement Obligations | 11. ASSET RETIREMENT OBLIGATIONS The following table summarizes the changes in the Company’s asset retirement obligations: Year ended December 31, (in thousands) 2020 2019 Beginning balance $ 15,844 $ 14,816 Accretion 893 812 Additions 359 595 Revisions 238 ( 379 ) Ending balance $ 17,334 $ 15,844 Accretion is recorded in the line item “Depreciation, depletion and amortization” on the consolidated statements of operations. The Company is required under the Etame PSC for the Etame Marin block in Gabon to conduct abandonment studies to update the amounts being funded for the eventual abandonment of the offshore wells, platforms and facilities on the Etame Marin block. The current abandonment study was completed in November 2018. In 2020, the Company recorded $ 0.4 million in additions associated with the Southeast Etame 4H development well and $ 0.2 million in revisions associated with a U.S. property. In 2019, the Company recorded $ 0.6 million in additions associated with the Etame 9H and Etame 11H development wells . In December 2019, the Company recorded $ 0.4 million downward revision associated with the Mutamba Iroru block onshore Gabon. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES FPSO charter In connection with the FPSO charter, the Company, as operator of the Etame Marin block, guaranteed all of the lease payments under the FPSO charter through its contract term. At the Company’s election, the charter may be extended for two one-year periods beyond September 2020. These elections have been made, and the charter has been extended through September 2022. The Company obtained guarantees from each of the joint venture owners for their respective shares of the payments. Although the Company believes the need for performance under the charter guarantee is remote, the Company recorded a liability of $ 0.4 million as of both December 31, 2020 and 2019 representing the guarantee’s estimated fair value. Estimated future minimum obligations as of December 31, 2020 through the end of the FPSO charter are as follows: (in thousands) Full Charter Payment VAALCO, Net Year 2021 $ 32,988 $ 10,245 2022 23,769 7,382 Total $ 56,757 $ 17,627 The FPSO charter payment includes a $ 0.93 per barrel charter fee for production up to 20,000 barrels of crude oil per day and a $ 2.50 per barrel charter fee for those barrels produced in excess of 20,000 barrels of crude oil per day. VAALCO’s net share of payments was $ 13.1 million, $ 12.1 million and $ 10.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Gabon domestic market obligation and other investment obligations Under the terms of the Etame PSC the Consortium is required to provide to the local government refinery a volume of crude oil at a 15 % discount to market price (the “Gabon DMO”). The volume required to be furnished is the amount of the Etame Marin block production divided by total Gabon production times the volume of crude oil refined by the refinery per year. In 2020, the Company paid $ 0.9 million for the share of the 2019 obligation. In 2019, the Company paid $ 1.2 million for the share of the 2018 obligation. In 2018, the Company paid $ 1.1 million for the share of the 2017 obligation. The Company accrues an amount for the Gabon DMO based on management’s best estimate of the volume of crude oil required because the refinery does not publish throughput figures. The amount accrued at December 31, 2020, for the share of the 2020 obligation was $ 0.9 million. The amount accrued at December 31, 2019, for the share of the 2019 obligation was $ 1.1 million. These costs are cost recoverable under the terms of the Etame PSC. Also, the Consortium is required to pay an additional 1 % of revenues for provisions for diversified investments (“PID”) and for investments in hydrocarbons (“PIH”). The amount accrued at December 31, 2020, for the share of the 2020 obligation was $ 3.1 million. The amount accrued at December 31, 2019, for the share of the 2019 obligation was $ 2.2 million. 75 % of PID and PIH costs are cost recoverable under the terms of the Etame PSC. Abandonment funding Under the terms of the Etame PSC, the Company has a cash funding arrangement for the eventual abandonment of all offshore wells, platforms and facilities on the Etame Marin block. As a result of the PSC Extension, annual funding payments are spread over the periods from 2018 through 2028. The amounts paid will be reimbursed through the Cost Account and are non-refundable. The abandonment estimate used for this purpose is approximately $ 61.8 million ($ 19.2 million, net to VAALCO) on an undiscounted basis. Through December 31, 2020, $ 40.2 million ($ 12.5 million, net to VAALCO) on an undiscounted basis has been funded. This cash funding is reflected under “Other noncurrent assets” in the “Abandonment funding” line item of the consolidated balance sheets. Future changes to the anticipated abandonment cost estimate could change the asset retirement obligation and the amount of future abandonment funding payments. On March 5, 2019, in accordance with certain foreign currency regulatory requirements, the Gabonese branch of an international commercial bank holding the abandonment funds in a U.S. dollar denominated account transferred the funds to the Central Bank for CEMAC, of which Gabon is one of the six member states. The U.S. dollars were con verted to local currency with a credit back to the Gabonese branch . During the year ended December 31, 2020, the Company has recorded a $ 1.1 million foreign currency gain associated with the abandonment funding account. Amendment No. 5 to the Etame Marin block PSC provides that in the event that the Gabonese bank fails for any reasons to reimburse all of the principal and interest due, the Company and the other joint venture owners shall no longer be held liable for the resulting shortfall in funding the obligation to remediate the sites. Regulatory and Joint Interest Audits The Company is subject to periodic routine audits by various government agencies in Gabon, including audits of the petroleum Cost Account, customs, taxes and other operational matters, as well as audits by other members of the contractor group under the joint operating agreements. In 2016, the government of Gabon conducted an audit of the operations in Gabon, covering the years 2013 through 2014. The Company received the findings from this audit and responded to the audit findings in January 2017. Since providing the response, there have been changes in the Gabonese officials responsible for the audit. The Company is working with the currently appointed representatives to resolve the audit findings. The Company does not anticipate that the ultimate outcome of this audit will have a material effect on the financial condition, results of operations or liquidity. Between 2019 and 2021, the government of Gabon conducted an audit of the operations in Gabon, covering the years 2015 and 2016. The Company has not yet received the findings from this audit. In July 2019, the Company reached an agreement in principle to resolve a legacy issue related to findings from Etame joint venture owners’ audits for the periods from 2007 through 2016 for $ 4.4 million net to VAALCO. The agreement in principle also provides for procedures to minimize the chances of future audit claims. Accordingly, the Company recorded an expense in the consolidated statements of operations in the line item “Other operating income (expense), net”. The final settlement agreements were executed by all the joint venture owners effective September 9, 2019. In October 2019, the Company paid $ 1.1 million of the $ 4.4 million. The balance of the amount due was paid in February 2020. In 2019, the Etame joint venture owners conducted audits for the years 2017 and 2018. In June 2020, the Company agreed to a $ 0.8 million payment to resolve claims made by one of the Etame Marin block joint venture owners, Addax Petroleum Gabon S.A. There are now no unresolved matters related to the joint venture owner audits. Employment agreements The Company’s Chief Executive Officer has an employment agreement, which provides for payments of annual salary, incentive compensation and certain other benefits if their employment is terminated without cause. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 13. LEASES Under the new leasing standard that became effective January 1, 2019, there are two types of leases: finance and operating. Regardless of the type of lease, the initial measurement of the lease results in recording a ROU asset and a lease liability at the present value of the future lease payments. Practical Expedients – The Company elected to use all the practical expedients, effectively carrying over its previous identification and classification of leases that existed as of January 1, 2019. Additionally, a lessee may elect not to recognize ROU assets and liabilities arising from short-term leases provided there is no purchase option the entity is likely to exercise. The Company has elected this short-term lease exemption. The adoption of ASC 842 resulted in a material increase in the Company’s total assets and liabilities on the Company’s consolidated balance sheet as certain of its operating leases are significant. In addition, adoption resulted in a decrease in working capital as the ROU asset is noncurrent but the lease liability has both long-term and short-term portions. There was no material overall impact on results of operations or cash flows. In the statement of cash flows, operating leases remain an operating activity. The Company is currently a party to several lease agreements for the rental of marine vessels and helicopters, warehouse and storage facilities, equipment and the FPSO. The duration for these agreements range from 21 to 35 months . In some cases, the lease contracts require the Company to make payments both for the use of the asset itself and for operations and maintenance services. Only the payments for the use of the asset related to the lease component are included in the calculation of ROU assets and lease liabilities. Payments for the operations and maintenance services are considered non-lease components and are not included in calculating the ROU assets and lease liabilities. For leases on ROU assets used in joint operations, generally the operator reflects the full amount of the lease component, including the amount that will be funded by the non-operators. As operator for the Etame Marin block, the ROU asset recorded for the FPSO, the marine vessels, helicopter, certain equipment and warehouse and storage facilities used in the joint operations includes the gross amount of the lease components. For all other leases that contain an option to extend, the Company has concluded that it is not reasonably certain it will exercise the renewal option and the renewal periods have been excluded in the calculation for the ROU assets and liabilities. During the third quarter of 2019, the Company notified the lessor of the FPSO of its intent to extend the lease term by the first option that extends the FPSO lease to September 2021. Similarly, during the third quarter of 2020, the Company gave notification to extend the FPSO lease to September 2022. The FPSO agreement also contains options to purchase the assets during or at the end of the lease term. T he Company does not consider these options reasonably certain of exercise and has excluded the purchase price from the calculation of ROU assets and lease liabilities. The FPSO and helicopter, marine vessels and certain equipment leases include provisions for variable lease payments, under which the Company is required to make additional payments based on the level of production or the number of days or hours the asset is deployed, or the number of persons onboard the vessel. Because the Company does not know the extent that the Company will be required to make such payments, they are excluded from the calculation of ROU assets and lease liabilities. The discount rate used to calculate ROU assets and lease liabilities represents the Company’s incremental borrowing rate. T he Company determined this by considering the term and economic environment of each lease, and estimating the resulting interest rate the Company would incur to borrow the lease payments. For the years ended December 31, 2020 and 2019, the components of the lease costs and the supplemental information were as follows: Year Ended December 31, 2020 2019 Lease cost: (in thousands) Operating lease cost $ 17,528 $ 16,428 Short-term lease cost 1,408 3,470 Variable lease cost 7,572 5,819 Total lease expense 26,508 25,717 Lease costs capitalized 3,456 3,653 Total lease costs $ 29,964 $ 29,370 Other information: Cash paid for amounts included in the measurement of lease liabilities: 2020 2019 Operating cash flows attributable to operating leases $ 26,178 $ 19,229 Weighted-average remaining lease term 1.8 years 2.7 years Weighted-average discount rate 6.09 % 6.18 % The table below describes the presentation of the total lease cost on the Company’s consolidated statement of operations. As discussed above, the Company’s joint venture owners are required to reimburse the Company for their share of certain expenses, including certain lease costs. Year Ended December 31, 2020 2019 (in thousands) Production expense $ 7,904 $ 7,859 General and administrative expense 197 196 Lease costs billed to the joint venture owners 20,692 20,181 Total lease expense 28,793 28,236 Lease costs capitalized 1,171 1,134 Total lease costs $ 29,964 $ 29,370 The following table describes the future maturities of the Company’s operating lease liabilities at December 31, 2020: Lease Obligation Year (in thousands) 2021 $ 13,864 2022 9,685 2023 179 23,728 Less: imputed interest 1,167 Total lease liabilities $ 22,561 Under the joint operating agreements, other joint venture owners are obligated to fund $ 16.4 million of the $ 23.7 million in future lease liabilities as of December 31, 2020. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities and Other [Abstract] | |
Accrued Liabilities and Other | 14. ACCRUED LIABILITIES AND OTHER Accrued liabilities and other balances were comprised of the following: 2020 2019 (in thousands) Accrued accounts payable invoices $ 4,070 $ 4,650 Joint venture audit settlement — 3,322 Gabon DMO, PID and PIH obligations 3,960 3,314 Capital expenditures 435 11,792 Stock appreciation rights – current portion 2,289 2,638 Accrued wages and other compensation 2,108 1,731 Other 4,322 2,326 Total accrued liabilities and other $ 17,184 $ 29,773 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt [Abstract] | |
Debt | 15. DEBT On May 22, 2018, the Company terminated an amended term loan agreement the Company had with the International Finance Corporation (the “IFC”) (the “Amended Term Loan Agreement”) by prepaying the outstanding principal and accrued interest. The Company did not incur any termination or prepayment penalties as a result of the termination of the Amended Term Loan Agreement. Interest The table below shows the components of the “Interest income (expense), net” line item of the consolidated statements of operations and the average effective interest rate, excluding commitment fees, on the borrowings: Year Ended December 31, 2020 2019 2018 (in thousands) Interest expense related to debt, including commitment fees $ — $ — $ ( 257 ) Deferred finance cost amortization — — ( 191 ) Interest income 155 733 270 Other interest expense not related to debt — — 33 Interest income (expense), net $ 155 $ 733 $ ( 145 ) Average effective interest rate, excluding commitment fees N/A N/A 7.09 % |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 16. SHAREHOLDERS’ EQUITY Preferred stock – Authorized preferred stock consists of 500,000 shares with a par value of $ 25 per share. No shares of preferred stock were issued and outstanding as of December 31, 2020 or 2019. Treasury stock – On June 20, 2019, the Board of Directors authorized and approved a share repurchase program for up to $ 10.0 million of the currently outstanding shares of the Company’s common stock over a period of 12 months . Under the stock repurchase program, the Company repurchased shares through open market purchases, privately-negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the “Exchange Act”.  The Board of Directors also authorized the Company to enter into written trading plans under Rule 10b5-1 of the Exchange Act. From commencement of the plan in June 2019 through April 13, 2020, the Company purchased 2,740,643 shares of common stock at an average price of $ 1.70 per share for an aggregate purchase price of $ 4.7 million under the plan. On April 13, 2020, the Board of Directors approved the termination of the share repurchase program; consequently, no further shares can be repurchased pursuant to the plan. For the majority of restricted stock awards granted by the Company, the number of shares issued on the date the restricted stock awards vest is net of shares withheld to meet applicable tax withholding requirements. Although these withheld shares are not issued or considered common stock repurchases under the Company’s stock repurchase program, they are treated as common stock repurchases in the Financial Statements as they reduce the number of shares that would have been issued upon vesting. See Note 17 for further discussion. |
Stock-Based Compensation and Ot
Stock-Based Compensation and Other Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation and Other Benefit Plans [Abstract] | |
Stock-Based Compensation and Other Benefit Plans | 17. STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS The stock-based compensation awards have been granted under several stock incentive and long-term incentive plans. The plans authorize the Compensation Committee of the Board of Directors to issue various types of incentive compensation. The Company had previously issued stock options and restricted shares from the 2014 Long-Term Incentive Plan (“2014 Plan”) and SARs under the 2016 Stock Appreciation Rights Plan. On June 25, 2020, the Company’s stockholders approved the 2020 Long-Term Incentive Plan (“2020 Plan”) under which 5,500,000 shares are authorized for future grants. At December 31, 2020, 3,744,737 shares were available for future grants under this plan. For each stock option granted, the number of authorized shares under the 2020 Plan will be reduced on a one -for-one basis. For each restricted share granted, the number of shares authorized under the 2014 Plan and 2020 Plan will be reduced by twice the number of restricted shares. The Company has no set policy for sourcing shares for option grants. Historically the shares issued under option grants have been new shares. As referenced in the table below, the Company records compensation expense related to stock-based compensation associated with the issuance of stock options, restricted stock, and SARs as general and administrative expense. During the years ended December 31, 2020, 2019 and 2018, the Company settled in cash $ 0.3 million, $ 0.5 million, and $ 0.1 million, respectively, for SARs. During the years ended December 31, 2020, 2019 and 2018, the Company received in cash $ 0.1 million, $ 0.3 million, and $ 0.5 million, respectively from stock option exercises. The Company computes a deferred tax benefit for restricted shares, SARs and stock options expected to generate future tax deductions by applying the U.S. federal statutory income tax rate. For restricted shares, the Company's actual tax deduction is based on the value of the shares at the time of vesting. The Company receives a tax deduction for certain stock option exercises during the period the stock option awards are exercised, generally for the excess of the market value on the exercise date over the exercise price of the stock option awards. Year Ended December 31, 2020 2019 2018 (in thousands) Stock-based compensation - equity awards $ 848 $ 985 $ 820 Stock-based compensation - liability awards ( 734 ) 2,521 1,568 Total stock-based compensation $ 114 $ 3,506 $ 2,388 Stock options and performance stock options Stock options have an exercise price that may not be less than the fair market value of the underlying shares on the date of grant. In general, stock options granted to participants will become exercisable over a period determined by the Compensation Committee of the Board of Directors, which in the past has been a five-year life, with the options vesting over a service period of up to five years . In addition, stock options will become exercisable upon a change in control, unless provided otherwise by the Compensation Committee. In June 2020, the Company granted options that are considered performance stock options to purchase an aggregate of 644,758 shares at an exercise price of $ 1.23 per share and a life of ten years to its employees. For each performance option award, options with respect to one-third of the underlying shares vest on the later of the first anniversary of the grant date and the date on which the Company’s stock price, determined using a 30-day average, exceeds $ 1.42 per share; options with respect to one-third of the underlying shares vest on the later of the second anniversary of the grant date and the date on which the Company’s stock price, determined using a 30-day average, exceeds $ 1.63 per share; and options with respect to the remaining one-third of the underlying shares vest on the later of the third anniversary of the grant date and the date on which the Company’s stock price, determined using a 30-day average, exceeds $ 1.88 per share. These awards are option awards that contain a market condition, which has been met. Compensation cost for such awards is recognized ratably over the derived service period and compensation cost related to awards with a market condition will not be reversed if the Company does not believe it is probable that such performance criteria will be met or if the service provider (employee or otherwise) fails to meet such performance criteria. The Company used the Monte Carlo simulation to calculate the grant date fair value of performance stock option awards. The fair value of these awards will be amortized to expense over the derived service period of the option. During the year ended December 31, 2020, the assumptions shown below were used to calculate the weighted average grant date fair value of performance stock option awards issued under the 2020 Plan. For options that do not contain a market or performance condition, the Company uses the Black-Scholes model to calculate the grant date fair value of stock option awards. This fair value is then amortized to expense over the vesting period of the option. During 2020, 2019 and 2018, the weighted average assumptions shown below were used to calculate the weighted average grant date fair value of option grants. Because the Company has not paid cash dividends historically, no expected dividend yield was input to the Black-Scholes model. Year Ended December 31, 2020 2019 2018 Weighted average exercise price - ($/share) $ 1.23 $ 2.08 $ 1.05 Expected life in years 6.0 3.2 3.5 Average expected volatility 74 % 73 % 71 % Risk-free interest rate 0.42 % 2.33 % 2.51 % Weighted average grant date fair value - ($/share) $ 0.79 $ 1.06 $ 0.68 Performance stock option activity for the year ended December 31, 2020 is provided below: Number of Shares Underlying Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2020 — $ — Granted 644 1.23 Exercised — — Unvested shares forfeited — — Vested shares expired — — Outstanding at December 31, 2020 644 1.23 9.49 $ 348 Exercisable at December 31, 2020 — $ — — $ — Stock option activity that do not contain a market or performance condition for the year ended December 31, 2020 is provided below: Number of Shares Underlying Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2020 2,834 $ 1.55 Granted — — Exercised ( 65 ) 0.96 Unvested shares forfeited ( 60 ) 1.83 Vested shares expired ( 904 ) 1.89 Outstanding at December 31, 2020 1,804 1.38 1.94 $ 968 Exercisable at December 31, 2020 1,364 $ 1.20 1.63 $ 861 The intrinsic value of a stock option is the amount that the current market value of the underlying stock exceeds the exercise price of the option. The intrinsic value of stock options exercised in 2020, 2019 and 2018 was $ 43 thousand, $ 0.3 million and $ 0.6 million, respectively. As of December 31, 2020, unrecognized compensation cost related to outstanding stock options was $ 0.5 million, which is expected to be recognized over a weighted average period of 2.9 years. Restricted shares Restricted stock granted to employees will vest over a period determined by the Compensation Committee, which is generally a three - year period, vesting in three equal parts on the first three anniversaries following the date of the grant. In addition, restricted stock will vest upon a change in control, unless provided otherwise by the Compensation Committee of the Board of Directors. Share grants to directors vest immediately and are not restricted. The following is a summary of activity in unvested restricted stock in 2020. Restricted Stock Weighted Average Grant Date Fair Value (in thousands) Non-vested shares outstanding at January 1, 2020 343 $ 1.52 Awards granted 971 1.23 Awards vested ( 159 ) ( 1.35 ) Awards forfeited — — Non-vested shares outstanding at December 31, 2020 1,155 $ 1.30 The total vest-date fair value of restricted stock awards, which vested during 2020, 2019 and 2018 was $ 0.2 million, $ 0.6 million, and $ 0.4 million, respectively. The weighted average grant date fair value per share of restricted stock awards, which vested during the applicable year, was $ 1.35 , $ 2.00 and $ 1.71 for the years ended December 31, 2020, 2019 and 2018, respectively. In June 2020, the Company issued 710,851 and 260,164 shares of service based restricted stock to employees and directors, respectively, with a grant date fair value of $ 1.23 per share. The vesting of these shares is dependent upon the employees’ and directors’ continued service with the Company. As of December 31, 2020, unrecognized compensation cost related to restricted stock totaled $ 0.8 million and is expected to be recognized over a weighted average period of 1.4 years. SARs SARs are granted under the VAALCO Energy, Inc. 2016 Stock Appreciation Rights Plan. A SAR is the right to receive a cash amount equal to the spread with respect to a share of common stock upon the exercise of the SAR. The spread is the difference between the SAR price per share specified in a SAR award on the date of grant, (which may not be less than the fair market value of the common stock on the date of grant), and the fair market value per share on the date of exercise of the SAR. SARs granted to participants will become exercisable over a period determined by the Compensation Committee of the Board of Directors. In addition, SARs will become exercisable upon a change in control, unless provided otherwise by the Compensation Committee of the Board of Directors. Total compensation expense related to the SARs awards during the year ended December 31, 2020 was $( 0.7 ) million. SAR activity for the year ended December 31, 2020 is provided below: Number of Shares Underlying SARs Weighted Average Exercise Price Per Share Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2020 3,418 $ 1.30 Granted — — Exercised ( 357 ) 0.95 Unvested SARs forfeited ( 60 ) 1.83 Vested SARs expired ( 61 ) 1.34 Outstanding at December 31, 2020 2,940 1.33 2.22 $ 1,688 Exercisable at December 31, 2020 1,758 $ 1.19 1.91 $ 1,144 Other benefit plans The Company has adopted forms of change in control agreements for its named executive officers and certain other officers of the Company as well as a severance plan for its Houston-based non-executive employees in order to provide severance benefits in connection with a change in control. Upon a termination of a participant’s employment by the Company without cause or a resignation by the participant for good reason three months prior to a change in control or six months following a change in control, executives and officers with change in control agreements and participants in the severance plan will be entitled to receive 100 % and 50 %, respectively, of the participant’s base salary and continued participation in the Company’s group health plans for the participant and his or her eligible spouse and other dependents for six months. In addition, certain named executive officers will receive 75 % of their target bonus. The Company sponsors a 401(k) plan, with a company match feature, for the employees. Costs incurred in the years ended December 31, 2020, 2019 and 2018 for the Company’s matching contribution and for administering the plan were approximately $ 0.4 million , $ 0.4 million and $ 0.3 million, respectively. |
Organization (Policy)
Organization (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Organization [Abstract] | |
Nature of operations | VAALCO Energy, Inc. (together with its consolidated subsidiaries “we”, “us”, “our”, “VAALCO” or the “Company”) is a Houston, Texas-based independent energy company engaged in the acquisition, exploration, development and production of crude oil. As operator, the Company has production operations and conducts exploration activities in Gabon, West Africa. The Company has opportunities to participate in development and exploration activities in Equatorial Guinea, West Africa. As discussed further in Note 4 below, VAALCO has discontinued operations associated with activities in Angola, West Africa. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation – The accompanying consolidated financial statements (“Financial Statements”) include the accounts of VAALCO and its wholly owned subsidiaries. Investments in unincorporated joint ventures and undivided interests in certain operating assets are consolidated on a pro rata basis. All intercompany transactions within the consolidated group have been eliminated in consolidation. |
Use of estimates | Use of estimates – The preparation of the Financial Statements in conformity with generally accepted accounting principles in the United States (“U.S.”) (“GAAP”) requires estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Financial Statements and the reported amounts of revenues and expenses during the respective reporting periods. The Financial Statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Estimates of crude oil and natural gas reserves used to estimate depletion expense and impairment charges require extensive judgments and are generally less precise than other estimates made in connection with financial disclosures. Due to inherent uncertainties and the limited nature of data, estimates are imprecise and subject to change over time as additional information become available. |
Cash and cash equivalents | Cash and cash equivalents – Cash and cash equivalents includes deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. |
Restricted cash and abandonment funding | Restricted cash and abandonment funding – Restricted cash includes cash that is contractually restricted. Restricted cash is classified as a current or non-current asset based on its designated purpose and time duration. Current amounts in restricted cash at December 31, 2020 and 2019 each include an escrow amount representing bank guarantees for customs clearance in Gabon. Long-term amounts at December 31, 2020 and 2019 include a charter payment escrow for the FPSO offshore Gabon as discussed in Note 12. The Company invests restricted and excess cash in readily redeemable money market funds. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows. As of December 31, 2020 2019 (in thousands) Cash and cash equivalents $ 47,853 $ 45,917 Restricted cash - current 86 911 Restricted cash - non-current 925 925 Abandonment funding 12,453 11,371 Total cash, cash equivalents and restricted cash $ 61,317 $ 59,124 The Company conducts regular abandonment studies to update the estimated costs to abandon the offshore wells, platforms and facilities on the Etame Marin block. This cash funding is reflected under “Other noncurrent assets” as “Abandonment funding” on the consolidated balance sheets. Future changes to the anticipated abandonment cost estimate could change the asset retirement obligation and the amount of future abandonment funding payments. See Note 11 for further discussion. On February 28, 2019, the Gabonese branch of the international commercial bank holding the abandonment funds in a U.S. dollar denominated account advised that the bank regulator required transfer of the funds to the Central Bank for African Economic and Monetary Community (“ CEMAC”) of which Gabon is one of the six member states, for conversion to local currency with a credit back to the Gabonese branch in local currency. The Etame PSC provides these payments must be denominated in U.S. dollars and the CEMAC regulations provide for establishment of a U.S. dollar account with the Central Bank. Although we requested establishment of such account, the Central Bank did not comply with our requests until February 2021. As a result, we were not able to make the annual abandonment funding payment in 2019 and 2020. In February 2021, the Central Bank authorized the Company to apply for a USD escrow account for the Abandonment Fund at Citibank Gabon . The Company is working with Citibank to complete the documentation required for the account. Amendment No. 5 to the Etame PSC also provides that in the event that the Gabonese bank fails for any reasons to reimburse all of the principal and interest due, the Contractor shall no longer be held liable for the obligation to remediate the sites. |
Accounts with joint venture owners | Accounts with joint venture owners – Accounts with joint venture owners represent the excess of charges billed over cash calls paid by the joint venture owners for exploration, development and production expenditures made by the Company as an operator. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts – The Company’s accounts receivable results from sales of crude oil production, joint interest billings to its joint interest owners for their share of expenses on joint venture projects for which the Company is the operator, and receivables from the government of Gabon for reimbursable Value-Added Tax (“VAT”). Collection efforts, including remedies provided for in the contracts, are pursued to collect overdue amounts owed to the Company . Portions of the Company’s costs in Gabon (including the Company’s VAT receivable) are denominated in the local currency of Gabon, the Central African CFA Franc (“XAF”). Most of these receivables have payment terms of 30 days or less. The Company monitors the creditworthiness of the counterparties, and it has obtained credit enhancements from some parties in the form of parental guarantees or letters of credit. Joint owner receivables are secured through cash calls and other mechanisms for collection under the terms of the joint operating agreements. The Company routinely assesses the recoverability of all material receivables to determine their collectability. The Company accrues a reserve on a receivable when, based on management’s judgment, it is probable that a receivable will not be collected and the amount of such reserve may be reasonably estimated. When collectability is in doubt, the Company records an allowance against the accounts receivable and a corresponding income charge for bad debts, which appears in the “Bad debt expense and other” line item of the consolidated statements of operations. As of December 31, 2020, the outstanding VAT receivable balance, excluding the allowance for bad debt, was approximately $ 13.4 million ($ 4.5 million, net to VAALCO). As of December 31, 2020, the exchange rate was XAF 534.8 = $1.00. As of December 31, 2019, the exchange rate was XAF 585.7 = $1.00. The receivable amount, net of allowances, is reported as a non-current asset in the “Value added tax and other receivables” line item in the consolidated balance sheets. Because both the VAT receivable and the related allowances are denominated in XAF, the exchange rate revaluation of these balances into U.S. dollars at the end of each reporting period also has an impact on the Company’s results of operations. Such foreign currency gains (losses) are reported separately in the “Other, net” line item of the consolidated statements of operations. The following table provides an analysis of the change in the allowance: Year Ended December 31, 2020 2019 2018 (in thousands) Allowance for bad debt Balance at beginning of period $ ( 1,508 ) $ ( 2,535 ) $ ( 7,033 ) Bad debt charge ( 1,165 ) 341 77 Adjustment associated with reversal of allowance on Mutamba receivable 593 — — Adjustment associated with settlement of customs audit — 623 — Reclassification to leasehold costs related to signing bonus — — 4,197 Foreign currency gain (loss) ( 193 ) 63 224 Balance at end of period $ ( 2,273 ) $ ( 1,508 ) $ ( 2,535 ) |
Crude oil inventory | Crude oil inventory – Crude oil inventories are carried at the lower of cost or market and represent the share of crude oil produced and stored on the FPSO, but unsold at the end of the period. |
Materials and supplies | Materials and supplies – Materials and supplies, which are included in the “Prepayments and other” line item of the consolidated balance sheet, are primarily used for production related activities. These assets are valued at the lower of cost, determined by the weighted-average method, or net realizable value. |
Crude Oil and natural gas properties, equipment and other | Crude Oil and natural gas properties, equipment and other – The Company uses the successful efforts method of accounting for crude oil and natural gas producing activities. Management believes that this method is preferable, as the Company has focused on exploration activities wherein there is risk associated with future success and as such earnings are best represented by drilling results. |
Capitalization | Capitalization – Costs of successful wells, development dry holes and leases containing productive reserves are capitalized and amortized on a unit-of-production basis over the life of the related reserves. Other exploration costs, including dry exploration well costs, geological and geophysical expenses applicable to undeveloped leaseholds, leasehold expiration costs and delay rentals, are expensed as incurred. The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found. At the completion of drilling activities, the costs of exploratory wells remain capitalized if a determination is made that proved reserves have been found. If no proved reserves have been found, the costs of exploratory wells are charged to expense. In some cases, a determination of proved reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells. Cost incurred for exploratory wells that find reserves that cannot yet be classified as proved are capitalized if (a) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (b) sufficient progress in assessing the reserves and the economic and operating viability of the project has been made. The status of suspended well costs is monitored continuously and reviewed quarterly. Due to the capital-intensive nature and the geographical characteristics of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination of its commercial viability. Geological and geophysical costs are expensed as incurred. Costs of seismic studies that are utilized in development drilling within an area of proved reserves are capitalized as development costs. Amounts of seismic costs capitalized are based on only those blocks of data used in determining development well locations. To the extent that a seismic project covers areas of both developmental and exploratory drilling, those seismic costs are proportionately allocated between development costs and exploration expense. |
Depreciation, depletion and amortization | Depreciation, depletion and amortization – Depletion of wells, platforms, and other production facilities are calculated on a field-by-field basis under the unit-of-production method based upon estimates of proved developed reserves. Depletion of developed leasehold acquisition costs are provided on a field-by-field basis under the unit-of-production method based upon estimates of proved reserves. Support equipment (other than equipment inventory) and leasehold improvements related to crude oil and natural gas producing activities, as well as property, plant and equipment unrelated to crude oil and natural gas producing activities, are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which are typically five years for office and miscellaneous equipment and five to seven years for leasehold improvements. |
Impairment | Impairment – The Company reviews the crude oil and natural gas producing properties for impairment on a field-by-field basis whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment charge is recorded based on the fair value of the asset. This may occur if a field contains lower than anticipated reserves or if commodity prices fall below a level that significantly effects anticipated future cash flows on the field. The fair value measurement used in the impairment test is generally calculated with a discounted cash flow model using several Level 3 inputs that are based upon estimates the most significant of which is the estimate of net proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond the Company’s control. Reserve engineering is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact manner, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. The quantities of crude oil and natural gas that are ultimately recovered, production and operating costs, the amount and timing of future development expenditures and future crude oil and natural gas sales prices may all differ from those assumed in these estimates. Capitalized equipment inventory is reviewed regularly for obsolescence. When undeveloped crude oil and natural gas leases are deemed to be impaired, exploration expense is charged. Unproved property costs consist of acquisition costs related to undeveloped acreage in the Etame Marin block in Gabon and in Block P in Equatorial Guinea. See Note 9 for further discussion. |
Capitalized interest | Capitalized interest – Interest costs and commitment fees from external borrowings are capitalized on exploration and development projects that are not subject to current depletion. Interest and commitment fees are capitalized only for the period that activities are in progress to bring these projects to their intended use. Capitalized interest is added to the cost of the underlying asset and is depleted on the unit-of-production method in the same manner as the underlying assets . The Company capitalized no interest costs during the years ended December 31, 2020, 2019 and 2018. |
Lease commitments | Lease commitments – The Company leases office buildings, warehouse and storage facilities, equipment and corporate housing under leasing agreements that expire at various times. All leases are characterized as operating leases and are expensed either as production expenses or general and administrative expenses. See Note 13 for further discussion. |
Asset retirement obligations ("ARO") | Asset retirement obligations (“ARO”) – The Company has significant obligations to remove tangible equipment and restore land or seabed at the end of crude oil and natural gas production operations. The removal and restoration obligations are primarily associated with plugging and abandoning wells, removing and disposing of all or a portion of offshore crude oil and natural gas platforms, and capping pipelines. Estimating the future restoration and removal costs is difficult and requires management to make estimates and judgments. Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, safety, and public relations considerations. A liability for ARO is recognized in the period in which the legal obligations are incurred if a reasonable estimate of fair value can be made. The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with crude oil and natural gas properties. The Company uses current retirement costs to estimate the expected cash outflows for retirement obligations. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. Initial recording of the ARO liability is offset by the corresponding capitalization of asset retirement cost recorded to crude oil and natural gas properties. To the extent these or other assumptions change after initial recognition of the liability, the fair value estimate is revised and the recognized liability adjusted, with a corresponding adjustment made to the related asset balance or income statement, as appropriate. Depreciation of capitalized asset retirement costs and accretion of asset retirement obligations are recorded over time. Depreciation is generally determined on a units-of-production basis for crude oil and natural gas production facilities, while accretion escalates over the lives of the assets to reach the expected settlement value. See Note 11 for disclosures regarding the asset retirement obligations. Where there is a downward revision to the ARO that exceeds the net book value of the related asset, the corresponding adjustment is limited to the amount of the net book value of the asset and the remaining amount is recognized as a gain. See Note 11 for further discussion. |
Revenue recognition | Revenue recognition – Revenues from contracts with customers are generated from sales in Gabon pursuant to crude oil sales and purchase agreements. There is a single performance obligation (delivering crude oil to the delivery point, i.e. the connection to the customer’s crude oil tanker) that gives rise to revenue recognition at the point in time when the performance obligation event takes place. In addition to revenues from customer contracts, the Company has other revenues related to contractual provisions under the Etame Marin block PSC. The Etame PSC is not a customer contract. The terms of the Etame PSC includes provisions for payments to the government of Gabon for: royalties based on 13 % of production at the published price and a shared portion of “Profit Oil” determined based on daily production rates, as well as a gross carried working interest of 7.5 % (i ncreasing to 10 % beginning June 20, 2026) for all costs . For both royalties and Profit Oil, the Etame PSC provides that the government of Gabon may settle these obligations in-kind, i.e. taking crude oil barrels, rather than with cash payments. See Note 7 for further discussion. |
Major maintenance activities | Major maintenance activities – Costs for major maintenance are expensed in the period incurred and can include the costs of workovers of existing wells, contractor repair services, materials and supplies, equipment rentals and labor costs. |
Stock-based compensation | Stock-based compensation – The Company measures the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of the grant. The grant date fair value for options or stock appreciation rights (“SARs”) is estimated using either the Black-Scholes or Monte Carlo method depending on the complexity of the terms of the awards granted. The SARs fair value is estimated at the grant date and remeasured at each subsequent reporting date until exercised, forfeited or cancelled. Black-Scholes and Monte Carlo models employ assumptions, based on management’s best estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the life of the stock options or SAR award. These models use the following inputs: (i) the quoted market price of the Company’s common stock on the valuation date, (ii) the maximum stock price appreciation that an employee may receive, (iii) the expected term that is based on the contractual term, (iv) the expected volatility that is based on the historical volatility of the Company’s stock for the length of time corresponding to the expected term of the option or SAR award, (v) the expected dividend yield that is based on the anticipated dividend payments and (vi) the risk-free interest rate that is based on the U.S. treasury yield curve in effect as of the reporting date for the length of time corresponding to the expected term of the option or SAR award. For restricted stock, grant date fair value is determined using the market value of the common stock on the date of grant. The stock-based compensation expense for equity awards is recognized over the requisite or derived service period, using the straight-line attribution method over the service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. Unless the awards contain a market condition, previously recognized expense related to forfeited awards is reversed in the period in which the forfeiture occurs. For awards containing a market condition, previously recognized stock-based compensation expense is not reversed when the awards are forfeited. See Note 17 for further discussion. |
Foreign currency transactions | Foreign currency transactions – The U.S. dollar is the functional currency of the Company’s foreign operating subsidiaries . Gains and losses on foreign currency transactions are included in income. Within the consolidated statements of operations line item “Other income (expense)—Other, net,” the Company recognized gains on foreign currency transactions of $ 0.2 million in 2020, while the Company recognized losses on foreign currency transactions of $ 0.2 million and $ 0.1 million in 2019, and 2018, respectively. |
Income taxes | Income taxes – The annual tax provision is based on expected taxable income, statutory rates and tax planning opportunities available to the Company in the various jurisdictions in which the Company operates. The determination and evaluation of the annual tax provision and tax positions involves the interpretation of the tax laws in the various jurisdictions in which the Company operates and requires significant judgment and the use of estimates and assumptions regarding significant future events such as the amount, timing and character of income, deductions and tax credits. Changes in tax laws, regulations, agreements and tax treaties or the level of operations or profitability in each jurisdiction would impact the tax liability in any given year. The Company also operates in foreign jurisdictions where the tax laws relating to the crude oil and natural gas industry are open to interpretation, which could potentially result in tax authorities asserting additional tax liabilities. While the income tax provision (benefit) is based on the best information available at the time, a number of years may elapse before the ultimate tax liabilities in the various jurisdictions are determined. We also record as income tax expense the increase or decrease in the value of the government’s allocation of Profit Oil which results due to changes in value from the time the allocation is originally produced to the time the allocation is actually lifted. Judgment is required in determining whether deferred tax assets will be realized in full or in part. Management assesses the available positive and negative evidence to estimate if existing deferred tax assets will be utilized, and when it is estimated to be more-likely-than-not that all or some portion of specific deferred tax assets, such as net operating loss carry forwards or foreign tax credit carryovers, will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that are estimated to not be realizable. Factors considered are earnings generated in previous periods, forecasted earnings and the expiration period of carryovers. In certain jurisdictions, the Company may deem the likelihood of realizing deferred tax assets as remote where the Company expects that, due to the structure of operations and applicable law, the operations in such jurisdictions will not give rise to future tax consequences. For such jurisdictions, the Company has not recognized deferred tax assets. Should the expectations change regarding the expected future tax consequences, the Company may be required to record additional deferred taxes that could have a material effect on the consolidated financial position and results of operations. See Note 8 for further discussion. |
Derivative instruments and hedging activities | Derivative instruments and hedging activities – The Company enters into crude oil hedging arrangements from time to time in an effort to mitigate the effects of commodity price volatility and enhance the predictability of cash flows relating to the marketing of a portion of our crude oil production. While these instruments mitigate the cash flow risk of future decreases in commodity prices, they may also curtail benefits from future increases in commodity prices. The Company records balances resulting from commodity risk management activities in the consolidated balance sheets as either assets or liabilities measured at fair value. Gains and losses from the change in fair value of derivative instruments and cash settlements on commodity derivatives are presented in the “Derivative instruments gain (loss), net” line item located within the “Other income (expense)” section of the consolidated statements of operations. See Note 10 for further discussion. |
Fair value | Fair value – Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair-value hierarchy are as follows: Level 1 – Inputs represent quoted prices in active markets for identical assets or liabilities (for example, exchange-traded commodity derivatives). Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in the internally developed present value of future cash flows model that underlies the fair-value measurement). |
Fair value of financial instruments | Fair value of financial instruments – The Company’s current assets and liabilities include financial instruments such as cash and cash equivalents, restricted cash, accounts receivable, derivative assets and liabilities, accounts payable, liabilities for SARs and guarantee. As discussed further in Note 10, derivative assets and liabilities are measured and reported at fair value each period with changes in fair value recognized in net income. The derivative asset commodity swaps referenced below are reported in “ Prepayments and other” on the consolidated balance sheet. SARs liabilities are measured and reported at fair value using level 2 inputs each period with changes in fair value recognized in net income. The current portion of the SARs liabilities is reported in “Accrued liabilities and other” on the consolidated balance sheet while the long-term portion is reported in “Other long-term liabilities”. With respect to the other financial instruments included in current assets and liabilities, the carrying value of each financial instrument approximates fair value primarily due to the short-term maturity of these instruments. As of December 31, 2020 Balance Sheet Line Level 1 Level 2 Level 3 Total (in thousands) Liabilities SARs liability Accrued liabilities $ — $ 2,289 $ — $ 2,289 SARs liability Other long-term liabilities — 193 — 193 $ — $ 2,482 $ — $ 2,482 As of December 31, 2019 Balance Sheet Line Level 1 Level 2 Level 3 Total (in thousands) Assets Derivative asset commodity swaps Prepayments and other $ — $ 636 $ — $ 636 $ — $ 636 $ — $ 636 Liabilities SARs liability Accrued liabilities $ — $ 2,638 $ — $ 2,638 SARs liability Other long-term liabilities — 852 — 852 $ — $ 3,490 $ — $ 3,490 |
Earnings per Share | Earnings per Share – Basic earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities consist of unvested restricted stock awards and stock options using the treasury method. Under the treasury method, the amount of unrecognized compensation expense related to unvested stock-based compensation grants or the proceeds that would be received if the stock options were exercised are assumed to be used to repurchase shares at the average market price. When a loss exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. See Note 6 for further discussion. |
Other, net | Other, net – “Other, net” in non-operating income and expenses includes gains and losses from foreign currency transactions as discussed above as well as taxes other than income taxes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | As of December 31, 2020 2019 (in thousands) Cash and cash equivalents $ 47,853 $ 45,917 Restricted cash - current 86 911 Restricted cash - non-current 925 925 Abandonment funding 12,453 11,371 Total cash, cash equivalents and restricted cash $ 61,317 $ 59,124 |
Rollforward of Aggregate Allowance for Bad Debt | Year Ended December 31, 2020 2019 2018 (in thousands) Allowance for bad debt Balance at beginning of period $ ( 1,508 ) $ ( 2,535 ) $ ( 7,033 ) Bad debt charge ( 1,165 ) 341 77 Adjustment associated with reversal of allowance on Mutamba receivable 593 — — Adjustment associated with settlement of customs audit — 623 — Reclassification to leasehold costs related to signing bonus — — 4,197 Foreign currency gain (loss) ( 193 ) 63 224 Balance at end of period $ ( 2,273 ) $ ( 1,508 ) $ ( 2,535 ) |
Assets and Liabilities Measured on Recurring Basis | As of December 31, 2020 Balance Sheet Line Level 1 Level 2 Level 3 Total (in thousands) Liabilities SARs liability Accrued liabilities $ — $ 2,289 $ — $ 2,289 SARs liability Other long-term liabilities — 193 — 193 $ — $ 2,482 $ — $ 2,482 As of December 31, 2019 Balance Sheet Line Level 1 Level 2 Level 3 Total (in thousands) Assets Derivative asset commodity swaps Prepayments and other $ — $ 636 $ — $ 636 $ — $ 636 $ — $ 636 Liabilities SARs liability Accrued liabilities $ — $ 2,638 $ — $ 2,638 SARs liability Other long-term liabilities — 852 — 852 $ — $ 3,490 $ — $ 3,490 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions and Dispositions [Abstract] | |
Summarized Results, Assets and Liabilities Attributable to Discontinued Operations | Summarized Results of Discontinued Operations Year Ended December 31, 2020 2019 2018 (in thousands) Operating costs and expenses: Gain on settlement of drilling obligation $ — $ ( 7,193 ) $ — General and administrative expense 93 344 467 Total operating costs, expenses and (recovery) 93 ( 6,849 ) 467 Operating income (loss) ( 93 ) 6,849 ( 467 ) Other expense: Other, net ( 5 ) — ( 29 ) Total other expense ( 5 ) — ( 29 ) Income (loss) from discontinued operations before income taxes ( 98 ) 6,849 ( 496 ) Income tax expense (benefit) — 1,438 — Income (loss) from discontinued operations $ ( 98 ) $ 5,411 $ ( 496 ) Assets and Liabilities Attributable to Discontinued Operations As of December 31, 2020 2019 (in thousands) ASSETS Accounts with joint venture owners $ — $ — Total current assets — — Total assets $ — $ — LIABILITIES Current liabilities: Accounts payable $ — $ 8 Accrued liabilities and other 7 342 Total current liabilities 7 350 Total liabilities $ 7 $ 350 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information [Abstract] | |
Segment Activity | Year Ended December 31, 2020 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Revenues-crude oil and natural gas sales $ 67,176 $ — $ — $ 67,176 Depreciation, depletion and amortization 9,028 — 354 9,382 Impairment of proved crude oil and natural gas properties 30,625 — — 30,625 Bad debt (recovery) expense and other 1,165 — — 1,165 Other operating expense, net ( 1,669 ) — — ( 1,669 ) Operating loss ( 17,261 ) ( 431 ) ( 9,571 ) ( 27,263 ) Derivative instruments gain, net — — 6,577 6,577 Interest income, net — — 155 155 Other, net 194 3 ( 68 ) 129 Income tax expense 16,204 1 11,476 27,681 Additions to crude oil and natural gas properties and equipment – accrual 10,503 — ( 9 ) 10,494 Year Ended December 31, 2019 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Revenues-crude oil and natural gas sales $ 84,521 $ — $ — $ 84,521 Depreciation, depletion and amortization 6,825 — 258 7,083 Gain on revision of asset retirement obligations ( 379 ) — — ( 379 ) Bad debt (recovery) expense and other ( 341 ) — — ( 341 ) Other operating expense, net ( 4,456 ) — 35 ( 4,421 ) Operating income (loss) 35,049 ( 438 ) ( 13,418 ) 21,193 Derivative instruments loss, net — — ( 446 ) ( 446 ) Interest income, net 5 — 728 733 Other, net ( 230 ) ( 3 ) ( 205 ) ( 438 ) Income tax expense 20,311 12 3,567 23,890 Additions to crude oil and natural gas properties and equipment – accrual 22,116 — 57 22,173 Year Ended December 31, 2018 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Revenues-crude oil and natural gas sales $ 104,938 $ — $ 5 $ 104,943 Depreciation, depletion and amortization 5,176 — 420 5,596 Gain on revision of asset retirement obligations ( 3,325 ) — — ( 3,325 ) Bad debt (recovery) expense and other ( 77 ) — — ( 77 ) Other operating expense, net 365 — — 365 Operating income (loss) 61,930 ( 470 ) ( 10,173 ) 51,287 Derivative instruments gain, net — — 4,264 4,264 Interest income (expense), net ( 396 ) — 251 ( 145 ) Other, net 92 ( 4 ) ( 20 ) 68 Income tax benefit ( 26,670 ) — ( 16,584 ) ( 43,254 ) Additions to crude oil and natural gas properties and equipment – accrual 38,430 187 17 38,634 |
Long-lived Assets From Continuing Operations | (in thousands) Gabon Equatorial Guinea Corporate and Other Total Long-lived assets from continuing operations: As of December 31, 2020 $ 26,832 $ 10,000 $ 204 $ 37,036 As of December 31, 2019 $ 57,930 $ 10,000 $ 328 $ 68,258 (in thousands) Gabon Equatorial Guinea Corporate and Other Total Total assets from continuing operations: As of December 31, 2020 $ 101,399 $ 10,267 $ 29,566 $ 141,232 As of December 31, 2019 $ 151,686 $ 10,087 $ 49,764 $ 211,537 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Diluted Shares | Year Ended December 31, 2020 2019 2018 (in thousands) Net income (loss) (numerator): Income (loss) from continuing operations $ ( 48,083 ) $ ( 2,848 ) $ 98,728 (Income) loss from continuing operations attributable to unvested shares — 21 ( 1,231 ) Numerator for basic ( 48,083 ) ( 2,827 ) 97,497 (Income) loss from continuing operations attributable to unvested shares — ( 21 ) — Numerator for dilutive $ ( 48,083 ) $ ( 2,848 ) $ 97,497 Income (loss) from discontinued operations, net of tax $ ( 98 ) $ 5,411 $ ( 496 ) (Income) loss from discontinued operations attributable to unvested shares — ( 39 ) 6 Numerator for basic ( 98 ) 5,372 ( 490 ) (Income) loss from discontinued operations attributable to unvested shares — 39 — Numerator for dilutive $ ( 98 ) $ 5,411 $ ( 490 ) Net income (loss) $ ( 48,181 ) $ 2,563 $ 98,232 Net (income) loss attributable to unvested shares — ( 18 ) ( 1,225 ) Numerator for basic ( 48,181 ) 2,545 97,007 Net (income) loss attributable to unvested shares — 18 — Numerator for dilutive $ ( 48,181 ) $ 2,563 $ 97,007 Weighted average shares (denominator): Basic weighted average shares outstanding 57,594 59,143 59,248 Effect of dilutive securities — — 749 Diluted weighted average shares outstanding 57,594 59,143 59,997 Stock options and unvested restricted stock grants excluded from dilutive calculation because they would be anti-dilutive 3,545 603 1,316 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [Abstract] | |
Revenues From Contracts With Customers | Year Ended December 31, 2020 2019 2018 Revenue from customer contracts: (in thousands) Sales under the COSPA $ 67,041 $ 86,554 $ 104,891 Gabonese government share of Profit Oil — — 2,193 U.S. crude oil and natural gas revenue — — 5 Other items reported in revenue not associated with customer contracts: Gabonese government share of Profit Oil taken in-kind 8,738 7,268 9,385 Carried interest recoupment 1,631 2,950 3,545 Royalties ( 10,234 ) ( 12,251 ) ( 15,076 ) Total revenue, net $ 67,176 $ 84,521 $ 104,943 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Provision for Income Taxes | Year Ended December 31, 2020 2019 2018 U.S. Federal: (in thousands) Current $ ( 337 ) $ ( 337 ) $ ( 674 ) Deferred 11,814 3,916 ( 15,910 ) Foreign: Current 3,859 9,747 14,327 Deferred 12,345 10,564 ( 40,997 ) Total $ 27,681 $ 23,890 $ ( 43,254 ) |
Summary of Differences between the Financial Statement and Tax Bases of Assets and Liabilities | As of December 31, (in thousands) 2020 2019 Deferred tax assets: Basis difference in fixed assets $ 27,995 $ 26,590 Foreign tax credit carryforward 34,144 34,144 Alternative minimum tax credit carryover — 337 U.S. federal net operating losses 32,579 30,572 Foreign net operating losses 24,602 11,770 Asset retirement obligations 3,640 3,407 Operating leases 1,472 — Basis difference in accrued liabilities 368 676 Basis difference in receivables 331 171 Other 1,121 1,120 Total deferred tax assets 126,252 108,787 Valuation allowance ( 126,252 ) ( 84,628 ) Net deferred tax assets $ — $ 24,159 |
Pretax Income | Year Ended December 31, (in thousands) 2020 2019 2018 U.S. $ ( 2,908 ) $ ( 13,330 ) $ ( 5,672 ) Foreign ( 17,494 ) 34,372 61,146 $ ( 20,402 ) $ 21,042 $ 55,474 |
Statutory Rate Reconciliation | Year Ended December 31, (in thousands) 2020 2019 2018 Tax provision computed at U.S. statutory rate $ ( 4,284 ) $ 4,386 $ 11,650 Foreign taxes not offset in U.S. by foreign tax credits ( 9,801 ) 16,015 24,840 Recognition of foreign deferred tax assets, net of U.S. impact — — ( 45,751 ) Unrealizable foreign deferred tax assets — — 24,176 Permanent differences 97 180 ( 104 ) Foreign tax credit expirations — 9,616 4,311 Increase/(decrease) in valuation allowance 41,635 ( 6,307 ) ( 62,270 ) Other 34 — ( 106 ) Total income tax expense (benefit) $ 27,681 $ 23,890 $ ( 43,254 ) |
Income Tax Years Subject to Examination by Major Tax Jurisdictions | Jurisdiction Years U.S. 2011 - 2020 Gabon 2016 - 2020 |
Crude Oil and Natural Gas Pro_2
Crude Oil and Natural Gas Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Crude Oil and Natural Gas Properties and Equipment [Abstract] | |
Schedule of Crude Oil and Natural Gas Properties and Equipment | As of December 31, 2020 2019 (in thousands) Crude oil and natural gas properties and equipment - successful efforts method: Wells, platforms and other production facilities $ 441,879 $ 422,651 Work-in-progress 169 7,378 Undeveloped acreage 21,476 23,771 Equipment and other 9,276 11,157 472,800 464,957 Accumulated depreciation, depletion, amortization and impairment ( 435,764 ) ( 396,699 ) Net crude oil and natural gas properties, equipment and other $ 37,036 $ 68,258 |
Derivatives and Fair Value (Tab
Derivatives and Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives and Fair Value [Abstract] | |
Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations | Year Ended December 31, Derivative Item Statement of Operations Line 2020 2019 2018 (in thousands) Crude oil swaps Realized gain - contract settlements $ 7,216 $ 2,439 $ 744 Unrealized gain (loss) ( 639 ) ( 2,885 ) 3,520 Derivative instruments gain (loss), net $ 6,577 $ ( 446 ) $ 4,264 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligations [Abstract] | |
Summary of Changes in Asset Retirement Obligations | Year ended December 31, (in thousands) 2020 2019 Beginning balance $ 15,844 $ 14,816 Accretion 893 812 Additions 359 595 Revisions 238 ( 379 ) Ending balance $ 17,334 $ 15,844 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Estimated Obligations and Companies Share for the Annual Charter Payment | (in thousands) Full Charter Payment VAALCO, Net Year 2021 $ 32,988 $ 10,245 2022 23,769 7,382 Total $ 56,757 $ 17,627 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Costs | Year Ended December 31, 2020 2019 Lease cost: (in thousands) Operating lease cost $ 17,528 $ 16,428 Short-term lease cost 1,408 3,470 Variable lease cost 7,572 5,819 Total lease expense 26,508 25,717 Lease costs capitalized 3,456 3,653 Total lease costs $ 29,964 $ 29,370 Other information: Cash paid for amounts included in the measurement of lease liabilities: 2020 2019 Operating cash flows attributable to operating leases $ 26,178 $ 19,229 Weighted-average remaining lease term 1.8 years 2.7 years Weighted-average discount rate 6.09 % 6.18 % |
Lease Cost on Consolidated Statement of Operations | Year Ended December 31, 2020 2019 (in thousands) Production expense $ 7,904 $ 7,859 General and administrative expense 197 196 Lease costs billed to the joint venture owners 20,692 20,181 Total lease expense 28,793 28,236 Lease costs capitalized 1,171 1,134 Total lease costs $ 29,964 $ 29,370 |
Schedule of Future Maturities of Operating Lease Liabilities | Lease Obligation Year (in thousands) 2021 $ 13,864 2022 9,685 2023 179 23,728 Less: imputed interest 1,167 Total lease liabilities $ 22,561 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities and Other [Abstract] | |
Schedule of Accrued Liabilities and Other Balances | 2020 2019 (in thousands) Accrued accounts payable invoices $ 4,070 $ 4,650 Joint venture audit settlement — 3,322 Gabon DMO, PID and PIH obligations 3,960 3,314 Capital expenditures 435 11,792 Stock appreciation rights – current portion 2,289 2,638 Accrued wages and other compensation 2,108 1,731 Other 4,322 2,326 Total accrued liabilities and other $ 17,184 $ 29,773 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt [Abstract] | |
Schedule of Interest Information | Year Ended December 31, 2020 2019 2018 (in thousands) Interest expense related to debt, including commitment fees $ — $ — $ ( 257 ) Deferred finance cost amortization — — ( 191 ) Interest income 155 733 270 Other interest expense not related to debt — — 33 Interest income (expense), net $ 155 $ 733 $ ( 145 ) Average effective interest rate, excluding commitment fees N/A N/A 7.09 % |
Stock-Based Compensation and _2
Stock-Based Compensation and Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation and Other Benefit Plans [Abstract] | |
Summary of Stock-Based Compensation | Year Ended December 31, 2020 2019 2018 (in thousands) Stock-based compensation - equity awards $ 848 $ 985 $ 820 Stock-based compensation - liability awards ( 734 ) 2,521 1,568 Total stock-based compensation $ 114 $ 3,506 $ 2,388 |
Stock Option Valuation Assumptions | Year Ended December 31, 2020 2019 2018 Weighted average exercise price - ($/share) $ 1.23 $ 2.08 $ 1.05 Expected life in years 6.0 3.2 3.5 Average expected volatility 74 % 73 % 71 % Risk-free interest rate 0.42 % 2.33 % 2.51 % Weighted average grant date fair value - ($/share) $ 0.79 $ 1.06 $ 0.68 |
Stock Option Activity | Performance stock option activity for the year ended December 31, 2020 is provided below: Number of Shares Underlying Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2020 — $ — Granted 644 1.23 Exercised — — Unvested shares forfeited — — Vested shares expired — — Outstanding at December 31, 2020 644 1.23 9.49 $ 348 Exercisable at December 31, 2020 — $ — — $ — Stock option activity that do not contain a market or performance condition for the year ended December 31, 2020 is provided below: Number of Shares Underlying Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2020 2,834 $ 1.55 Granted — — Exercised ( 65 ) 0.96 Unvested shares forfeited ( 60 ) 1.83 Vested shares expired ( 904 ) 1.89 Outstanding at December 31, 2020 1,804 1.38 1.94 $ 968 Exercisable at December 31, 2020 1,364 $ 1.20 1.63 $ 861 |
Summary of Non Vested Awards | Restricted Stock Weighted Average Grant Date Fair Value (in thousands) Non-vested shares outstanding at January 1, 2020 343 $ 1.52 Awards granted 971 1.23 Awards vested ( 159 ) ( 1.35 ) Awards forfeited — — Non-vested shares outstanding at December 31, 2020 1,155 $ 1.30 |
SAR Activity | Number of Shares Underlying SARs Weighted Average Exercise Price Per Share Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2020 3,418 $ 1.30 Granted — — Exercised ( 357 ) 0.95 Unvested SARs forfeited ( 60 ) 1.83 Vested SARs expired ( 61 ) 1.34 Outstanding at December 31, 2020 2,940 1.33 2.22 $ 1,688 Exercisable at December 31, 2020 1,758 $ 1.19 1.91 $ 1,144 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) / $ | Dec. 31, 2019USD ($) / $ | Dec. 31, 2018USD ($) | Jun. 20, 2026 | |
Organization And Accounting Policies [Line Items] | ||||
Receivable balance, gross, noncurrent | $ 13.4 | |||
Value added tax receivable, net | $ 4.5 | |||
Exchange rate | / $ | 534.8 | 585.7 | ||
Interest costs capitalized | $ 0 | $ 0 | $ 0 | |
Gain (loss) on foreign currency transaction | $ (0.2) | $ (0.2) | $ 0.1 | |
Office and Miscellaneous Equipment [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 5 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 5 years | |||
Leasehold Improvements [Member] | Maximum [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 7 years | |||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | Government Of Gabon [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Monthly royalty rate, based on production at the published price | 13.00% | |||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Consortium [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Monthly royalty rate, based on production at the published price | 13.00% | |||
Etame Marine Block [Member] | Government Of Gabon [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Monthly royalty rate, based on production at the published price | 13.00% | |||
Working interest ownership, percentage | 7.50% | |||
Etame Marine Block [Member] | Prior Production Sharing Contract, Through September 17, 2018 [Member] | Consortium [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Working interest ownership, percentage | 7.50% | |||
Etame Marine Block [Member] | Prior Production Sharing Contract, Through September 17, 2018 [Member] | Government Of Gabon [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Working interest ownership, percentage | 7.50% | |||
Etame Marine Block [Member] | Scenario, Forecast [Member] | Government Of Gabon [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Working interest ownership, percentage | 10.00% | |||
Etame Marine Block [Member] | Scenario, Forecast [Member] | Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Government Of Gabon [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Working interest ownership, percentage | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of Significant Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 47,853 | $ 45,917 | ||
Restricted cash - current | 86 | 911 | ||
Restricted cash - non-current | 925 | 925 | ||
Abandonment funding | 12,453 | 11,371 | ||
Total cash, cash equivalents and restricted cash | $ 61,317 | $ 59,124 | $ 46,655 | $ 32,286 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Rollforward of Aggregate Allowance for Bad Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |||
Balance at beginning of period | $ (1,508) | $ (2,535) | $ (7,033) |
Bad debt charge | (1,165) | 341 | 77 |
Adjustment associated with reversal of allowance on Mutamba | 593 | ||
Adjustment associated with settlement of customs audit | 623 | ||
Reclassification to leasehold costs related to signing bonus | 4,197 | ||
Foreign currency gain | (193) | 63 | 224 |
Balance at end of period | $ (2,273) | $ (1,508) | $ (2,535) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset commodity | $ 636 | |
Assets | 636 | |
SARs liability | $ 2,289 | 2,638 |
SARs liability | 193 | 852 |
Liabilities | 2,482 | 3,490 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset commodity | 636 | |
Assets | 636 | |
SARs liability | 2,289 | 2,638 |
SARs liability | 193 | 852 |
Liabilities | $ 2,482 | $ 3,490 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Narrative) (Details) | Feb. 25, 2021USD ($)$ / bbl | Nov. 17, 2020USD ($) | Jul. 31, 2019USD ($) | Nov. 30, 2006 | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 24, 2021 |
Business Acquisition [Line Items] | |||||||||
Income (loss) from discontinued operations, net of tax | $ (98,000) | $ 5,411,000 | $ (496,000) | ||||||
Cash paid | 20,008,000 | 10,348,000 | 14,127,000 | ||||||
Joint Operating With Republic Of Angola [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Joint operation agreement related to third party in working interest percentage | 40.00% | ||||||||
Additional joint operation agreement related to third party in working interest percentage | 10.00% | ||||||||
Discontinued Operations [Member] | Joint Operating With Republic Of Angola [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Liability for the potential payment | $ 4,500,000 | ||||||||
Write off of receivable | 3,300,000 | ||||||||
Income (loss) from discontinued operations, net of tax | $ 5,700,000 | (98,000) | $ 5,411,000 | $ (496,000) | |||||
Payment for settlement | $ 4,500,000 | ||||||||
Etame Marine Block [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Liability for the potential payment | $ 4,400,000 | $ 4,400,000 | |||||||
Etame Marine Block [Member] | Sasol Gabon S.A. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid | $ 4,300,000 | ||||||||
Etame Marine Block [Member] | Subsequent Event [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Working interest ownership, percentage | 58.80% | 31.10% | |||||||
Etame Marine Block [Member] | Subsequent Event [Member] | Sasol Gabon S.A. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Increase (decrease) in working interest ownership percentage | 27.80% | ||||||||
Effective date of acquisition | Jul. 1, 2020 | ||||||||
Total consideration | $ 44,000,000 | ||||||||
Cash paid | 29,600,000 | ||||||||
Contingent consideration | $ 5,000,000 | ||||||||
Contingent consideration, oil price threshold | $ / bbl | 60 | ||||||||
Contingent consideration, oil price threshold measurement period | 90 days |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Summarized Results of Discontinued Operations) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations | $ (98,000) | $ 5,411,000 | $ (496,000) | |
Discontinued Operations [Member] | Joint Operating With Republic Of Angola [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on settlement of drilling obligation | (7,193,000) | |||
General and administrative expense | 93,000 | 344,000 | 467,000 | |
Total operating costs, expenses and (recovery) | 93,000 | (6,849,000) | 467,000 | |
Operating income (loss) | (93,000) | 6,849,000 | (467,000) | |
Other, net | (5,000) | (29,000) | ||
Total other expense | (5,000) | (29,000) | ||
Income (loss) from discontinued operations before income taxes | (98,000) | 6,849,000 | (496,000) | |
Income tax expense (benefit) | 1,438,000 | |||
Income (loss) from discontinued operations | $ 5,700,000 | $ (98,000) | $ 5,411,000 | $ (496,000) |
Acquisitions and Dispositions_4
Acquisitions and Dispositions (Assets and Liabilities Attributable to Discontinued Operations) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current liabilities | $ 7 | $ 350 |
Joint Operating With Republic Of Angola [Member] | Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts payable | 8 | |
Accrued liabilities and other | 7 | 342 |
Total current liabilities | 7 | 350 |
Total liabilities | $ 7 | $ 350 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Number of reportable operating segments | 2 | |
Sales Revenue, Net [Member] | Glencore [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 6.00% | |
Sales Revenue, Net [Member] | Mercuria [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | 94.00% |
Sales Revenue, Net [Member] | ExxonMobil [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 86.00% |
Segment Information (Segment Ac
Segment Information (Segment Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues-crude oil and natural gas sales | $ 67,176 | $ 84,521 | $ 104,943 |
Depreciation, depletion and amortization | 9,382 | 7,083 | 5,596 |
Gain on revision of asset retirement obligations | (379) | (3,325) | |
Impairment of proved crude oil and natural gas properties | 30,625 | ||
Bad debt (recovery) expense and other | 1,165 | (341) | (77) |
Other operating expense, net | (1,669) | (4,421) | 365 |
Operating income (loss) | (27,263) | 21,193 | 51,287 |
Derivative instruments gain, net | 6,577 | (446) | 4,264 |
Interest income (expense), net | 155 | 733 | (145) |
Other, net | 129 | (438) | 68 |
Income tax expense (benefit) | 27,681 | 23,890 | (43,254) |
Additions to crude oil and natural gas properties and equipment - accrual | 10,494 | 22,173 | 38,634 |
Gabon Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues-crude oil and natural gas sales | 104,938 | ||
Depreciation, depletion and amortization | 5,176 | ||
Gain on revision of asset retirement obligations | (3,325) | ||
Bad debt (recovery) expense and other | (77) | ||
Other operating expense, net | 365 | ||
Operating income (loss) | 61,930 | ||
Interest income (expense), net | (396) | ||
Other, net | 92 | ||
Income tax expense (benefit) | (26,670) | ||
Additions to crude oil and natural gas properties and equipment - accrual | 38,430 | ||
Equatorial Guinea Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (470) | ||
Other, net | (4) | ||
Additions to crude oil and natural gas properties and equipment - accrual | 187 | ||
Operating Segments [Member] | Gabon Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues-crude oil and natural gas sales | 67,176 | 84,521 | |
Depreciation, depletion and amortization | 9,028 | 6,825 | |
Gain on revision of asset retirement obligations | (379) | ||
Impairment of proved crude oil and natural gas properties | 30,625 | ||
Bad debt (recovery) expense and other | 1,165 | (341) | |
Other operating expense, net | (1,669) | (4,456) | |
Operating income (loss) | (17,261) | 35,049 | |
Interest income (expense), net | 5 | ||
Other, net | 194 | (230) | |
Income tax expense (benefit) | 16,204 | 20,311 | |
Additions to crude oil and natural gas properties and equipment - accrual | 10,503 | 22,116 | |
Operating Segments [Member] | Equatorial Guinea Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (431) | (438) | |
Other, net | 3 | (3) | |
Income tax expense (benefit) | 1 | 12 | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues-crude oil and natural gas sales | 5 | ||
Depreciation, depletion and amortization | 354 | 258 | 420 |
Other operating expense, net | 35 | ||
Operating income (loss) | (9,571) | (13,418) | (10,173) |
Derivative instruments gain, net | 6,577 | (446) | 4,264 |
Interest income (expense), net | 155 | 728 | 251 |
Other, net | (68) | (205) | (20) |
Income tax expense (benefit) | 11,476 | 3,567 | (16,584) |
Additions to crude oil and natural gas properties and equipment - accrual | $ (9) | $ 57 | $ 17 |
Segment Information (Long-lived
Segment Information (Long-lived Assets from Continuing Operations) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 141,232 | $ 211,537 |
Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 37,036 | 68,258 |
Total assets | 141,232 | 211,537 |
Operating Segments [Member] | Gabon Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 26,832 | 57,930 |
Total assets | 101,399 | 151,686 |
Operating Segments [Member] | Equatorial Guinea Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 10,000 | 10,000 |
Total assets | 10,267 | 10,087 |
Corporate and Other [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 204 | 328 |
Total assets | $ 29,566 | $ 49,764 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Diluted Shares) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Diluted shares | |||
Income (loss) from continuing operations | $ (48,083) | $ (2,848) | $ 98,728 |
(Income) loss from continuing operations attributable to unvested shares | 21 | (1,231) | |
Numerator for basic | (48,083) | (2,827) | 97,497 |
(Income) loss from continuing operations attributable to unvested shares | (21) | ||
Numerator for dilutive | (48,083) | (2,848) | 97,497 |
Income (loss) from discontinued operations, net of tax | (98) | 5,411 | (496) |
(Income) loss from discontinued operations attributable to unvested shares | (39) | 6 | |
Numerator for basic | (98) | 5,372 | (490) |
(Income) loss from discontinued operations attributable to unvested shares | 39 | ||
Numerator for dilutive | (98) | 5,411 | (490) |
Net income (loss) | (48,181) | 2,563 | 98,232 |
Net (income) loss attributable to unvested shares | (18) | (1,225) | |
Numerator for basic | (48,181) | 2,545 | 97,007 |
Net (income) loss attributable to unvested shares | 18 | ||
Numerator for dilutive | $ (48,181) | $ 2,563 | $ 97,007 |
Basic weighted average shares outstanding | 57,594 | 59,143 | 59,248 |
Effect of dilutive securities | 749 | ||
Diluted weighted average shares outstanding | 57,594 | 59,143 | 59,997 |
Stock options and unvested restricted stock grants excluded from dilutive calculation because they would be anti-dilutive | 3,545 | 603 | 1,316 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 20, 2026 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Interval period, between lifting | 1 month | |||
Purchase agreement payment period | 30 days | |||
Foreign taxes payable attributable to sharing obligation | $ 0.9 | $ 5.7 | ||
Minimum [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lifting period, time to complete | 1 day | |||
Maximum [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lifting period, time to complete | 2 days | |||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | Government Of Gabon [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Monthly royalty rate, based on production at the published price | 13.00% | |||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Consortium [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Monthly royalty rate, based on production at the published price | 13.00% | |||
Etame Marine Block [Member] | Government Of Gabon [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Working interest ownership, percentage | 7.50% | |||
Monthly royalty rate, based on production at the published price | 13.00% | |||
Etame Marine Block [Member] | Prior Production Sharing Contract, Through September 17, 2018 [Member] | Consortium [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Working interest ownership, percentage | 7.50% | |||
Etame Marine Block [Member] | Prior Production Sharing Contract, Through September 17, 2018 [Member] | Government Of Gabon [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Working interest ownership, percentage | 7.50% | |||
Etame Marine Block [Member] | Scenario, Forecast [Member] | Government Of Gabon [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Working interest ownership, percentage | 10.00% | |||
Etame Marine Block [Member] | Scenario, Forecast [Member] | Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Government Of Gabon [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Working interest ownership, percentage | 10.00% |
Revenue (Revenues from Contract
Revenue (Revenues from Contracts with Customers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Royalties | $ (10,234) | $ (12,251) | $ (15,076) |
Total revenue, net | 67,176 | 84,521 | 104,943 |
Sales Under COSPA [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customer contracts | 67,041 | 86,554 | 104,891 |
Gabonese Government Share Of Profit Oil [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customer contracts | 2,193 | ||
Other items reported in revenue not associated with customer contracts: | 8,738 | 7,268 | 9,385 |
US Crude Oil And Natural Gas [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customer contracts | 5 | ||
Carried Interest Recoupment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other items reported in revenue not associated with customer contracts: | $ 1,631 | $ 2,950 | $ 3,545 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||
Deferred tax assets | $ 126,252,000 | $ 108,787,000 |
Valuation allowance | 126,252,000 | 84,628,000 |
Interest or penalties accrued | 0 | 0 |
Deferred tax assets | 24,159,000 | |
Uncertain tax positions | $ 0 | $ 0 |
Prior Production Sharing Contract, Through September 17, 2018 [Member] | ||
Income Taxes [Line Items] | ||
Entitled percent for consortium after initial royalty percentage | 70.00% | |
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | ||
Income Taxes [Line Items] | ||
Entitled percent for consortium after initial royalty percentage | 80.00% | |
Production Sharing Contract, After September 16, 2028 [Member] | ||
Income Taxes [Line Items] | ||
Entitled percent for consortium after initial royalty percentage | 70.00% | |
Minimum [Member] | ||
Income Taxes [Line Items] | ||
Allocation of remaining profit production, government payments, percentage | 50.00% | |
Minimum [Member] | Domestic Country [Member] | ||
Income Taxes [Line Items] | ||
Foreign tax credit carryforward, expiration dates | Dec. 31, 2035 | |
Minimum [Member] | Foreign Country [Member] | ||
Income Taxes [Line Items] | ||
Foreign tax credit carryforward, expiration dates | Dec. 31, 2021 | |
Maximum [Member] | ||
Income Taxes [Line Items] | ||
Allocation of remaining profit production, government payments, percentage | 60.00% | |
Maximum [Member] | Domestic Country [Member] | ||
Income Taxes [Line Items] | ||
Foreign tax credit carryforward, expiration dates | Dec. 31, 2037 | |
Maximum [Member] | Foreign Country [Member] | ||
Income Taxes [Line Items] | ||
Foreign tax credit carryforward, expiration dates | Dec. 31, 2025 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
U.S. Federal: Current | $ (337) | $ (337) | $ (674) |
U. S. Federal: Deferred | 11,814 | 3,916 | (15,910) |
Foreign: Current | 3,859 | 9,747 | 14,327 |
Foreign: Deferred | 12,345 | 10,564 | (40,997) |
Total income tax expense (benefit) | $ 27,681 | $ 23,890 | $ (43,254) |
Income Taxes (Summary Of Differ
Income Taxes (Summary Of Differences Between The Financial Statement And Tax Bases Of Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | ||
Basis difference in fixed assets | $ 27,995 | $ 26,590 |
Foreign tax credit carryforward | 34,144 | 34,144 |
Alternative minimum tax credit carryover | 337 | |
U.S. federal net operating losses | 32,579 | 30,572 |
Foreign net operating losses | 24,602 | 11,770 |
Asset retirement obligations | 3,640 | 3,407 |
Operating leases | 1,472 | |
Basis difference in accrued liabilities | 368 | 676 |
Basis difference in receivables | 331 | 171 |
Other | 1,121 | 1,120 |
Total deferred tax assets | 126,252 | 108,787 |
Valuation allowance | $ (126,252) | (84,628) |
Net deferred tax assets | $ 24,159 |
Income Taxes (Pretax Income) (D
Income Taxes (Pretax Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pretax income | |||
U.S. | $ (2,908) | $ (13,330) | $ (5,672) |
Foreign | (17,494) | 34,372 | 61,146 |
Income (loss) from continuing operations before income taxes | $ (20,402) | $ 21,042 | $ 55,474 |
Income Taxes (Statutory Rate Re
Income Taxes (Statutory Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory rate reconciliation | |||
Tax provision computed at U.S. statutory rate | $ (4,284) | $ 4,386 | $ 11,650 |
Foreign taxes not offset in U.S. by foreign tax credits | (9,801) | 16,015 | 24,840 |
Recognition of foreign deferred tax assets, net of U.S. impact | (45,751) | ||
Unrealizable foreign deferred tax assets | 24,176 | ||
Permanent differences | 97 | 180 | (104) |
Foreign tax credit expirations | 9,616 | 4,311 | |
Increase/(decrease) in valuation allowance | 41,635 | (6,307) | (62,270) |
Other | 34 | (106) | |
Total income tax expense (benefit) | $ 27,681 | $ 23,890 | $ (43,254) |
Income Taxes (Income Tax Years
Income Taxes (Income Tax Years Subject To Examination By Major Tax Jurisdictions) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
U [S] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2011 |
U [S] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2020 |
Gabon [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2016 |
Gabon [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2020 |
Crude Oil and Natural Gas Pro_3
Crude Oil and Natural Gas Properties and Equipment (Narrative) (Details) $ in Thousands | Jun. 20, 2026 | Sep. 16, 2019item | Sep. 26, 2018USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 17, 2018USD ($) | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ||||||||||||
Contractual obligation | $ 17,627 | |||||||||||
Reduction in VAT receivable | (1,268) | $ 275 | $ (777) | |||||||||
Deferred tax assets, basis difference in fixed assets | $ 26,590 | 27,995 | 26,590 | |||||||||
Impairment of proved crude oil and natural gas properties | 30,625 | |||||||||||
Property, net | $ 68,258 | 37,036 | 68,258 | |||||||||
Inventory adjustments | 900 | |||||||||||
Consortium [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Contractual obligation | 56,757 | |||||||||||
Etame Marine Block [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Allocated to proved leasehold cost | 2,300 | |||||||||||
Impairment of proved crude oil and natural gas properties | $ 30,600 | |||||||||||
Property, net | $ 15,600 | |||||||||||
Undeveloped leasehold value | $ 11,500 | |||||||||||
Etame Marine Block [Member] | Government Of Gabon [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Working interest ownership, percentage | 7.50% | |||||||||||
Monthly royalty rate, based on production at the published price | 13.00% | |||||||||||
Etame Marine Block [Member] | VAALCO Gabon S.A. [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Working interest ownership, percentage | 33.575% | |||||||||||
Block P Offshore Equatorial Guinea [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Working interest ownership, percentage | 43.00% | 31.00% | ||||||||||
Increase (decrease) in working interest ownership percentage | 12.00% | |||||||||||
Undeveloped acreage | $ 10,000 | |||||||||||
Potential payment | $ 3,100 | |||||||||||
Period of development | 25 years | |||||||||||
Scenario, Forecast [Member] | Etame Marine Block [Member] | Government Of Gabon [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Working interest ownership, percentage | 10.00% | |||||||||||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Entitled percent for consortium after initial royalty percentage | 70.00% | |||||||||||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | Consortium [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Entitled percent for consortium after initial royalty percentage | 70.00% | |||||||||||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | Government Of Gabon [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Monthly royalty rate, based on production at the published price | 13.00% | |||||||||||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | Etame Marine Block [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of exploitation areas | item | 3 | |||||||||||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | Etame Marine Block [Member] | Consortium [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Working interest ownership, percentage | 7.50% | |||||||||||
Prior Production Sharing Contract, Through September 17, 2018 [Member] | Etame Marine Block [Member] | Government Of Gabon [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Working interest ownership, percentage | 7.50% | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Deferred tax assets, basis difference in fixed assets | $ 18,600 | |||||||||||
Deferred tax liabilities, basis difference in fixed assets | 18,600 | |||||||||||
Allocated to proved leasehold cost | 22,500 | |||||||||||
Allocated to unproved leasehold cost | $ 13,700 | |||||||||||
Estimated costs of technical studies | $ 500 | |||||||||||
Entitled percent for consortium after initial royalty percentage | 80.00% | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Consortium [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Period of agreement for exploitation areas | 10 years | |||||||||||
Number of drilled wells required by agreement | item | 2 | |||||||||||
Number of appraisal wellbores required by agreement | item | 2 | |||||||||||
Number of wells drilled | item | 1 | |||||||||||
Number of wellbores drilled | item | 1 | |||||||||||
Number of technical studies required | item | 2 | |||||||||||
Estimated costs of technical studies | $ 1,500 | |||||||||||
Entitled percent for consortium after initial royalty percentage | 80.00% | |||||||||||
Monthly royalty rate, based on production at the published price | 13.00% | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Signing Bonus [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Contractual obligation | $ 21,800 | |||||||||||
Payment of signing bonus, allocated to proved and unproved property | $ 11,800 | |||||||||||
Reduction in VAT receivable | 8,400 | $ 4,200 | ||||||||||
Other accrued liabilities | 1,700 | $ 1,700 | $ 1,700 | |||||||||
Allocated to unproved leasehold cost | $ 6,700 | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Signing Bonus [Member] | Consortium [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Contractual obligation | $ 65,000 | |||||||||||
Payment of signing bonus, allocated to proved and unproved property | 35,000 | |||||||||||
Reduction in VAT receivable | 25,000 | |||||||||||
Other accrued liabilities | $ 5,000 | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Tax Impact [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Allocated to unproved leasehold cost | $ 7,100 | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Etame Marine Block [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of exploitation areas | item | 3 | |||||||||||
Period of agreement for exploitation areas | 10 years | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Scenario, Forecast [Member] | Etame Marine Block [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Increase (decrease) in working interest ownership percentage | 0.80% | |||||||||||
Production Sharing Contract, September 17, 2018 Through September 16, 2028 [Member] | Scenario, Forecast [Member] | Etame Marine Block [Member] | Government Of Gabon [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Working interest ownership, percentage | 10.00% | |||||||||||
Increase (decrease) in working interest ownership percentage | 2.50% | |||||||||||
Production Sharing Contract, After September 16, 2028 [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Entitled percent for consortium after initial royalty percentage | 70.00% | |||||||||||
Production Sharing Contract, After September 16, 2028 [Member] | Consortium [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Entitled percent for consortium after initial royalty percentage | 70.00% | |||||||||||
Production Sharing Contract, After September 16, 2028 [Member] | Etame Marine Block [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of contract extension periods | item | 2 | |||||||||||
Production license agreement term extended by government | 5 years |
Crude Oil and Natural Gas Pro_4
Crude Oil and Natural Gas Properties and Equipment (Crude Oil and Natural Gas Properties and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross crude oil and natural gas properties and equipment | $ 472,800 | $ 464,957 |
Accumulated depreciation, depletion, amortization and impairment | (435,764) | (396,699) |
Net crude oil and natural gas properties, equipment and other | 37,036 | 68,258 |
Wells, Platforms and Other Production Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross crude oil and natural gas properties and equipment | 441,879 | 422,651 |
Work-in-Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross crude oil and natural gas properties and equipment | 169 | 7,378 |
Undeveloped Acreage [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross crude oil and natural gas properties and equipment | 21,476 | 23,771 |
Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross crude oil and natural gas properties and equipment | $ 9,276 | $ 11,157 |
Derivatives and Fair Value (Nar
Derivatives and Fair Value (Narrative) (Details) | Jan. 22, 2021$ / bblbbl | May 06, 2019$ / bblbbl | Jun. 30, 2018bbl$ / bbl |
Commodity Contract, June 2018 Through June 2019 [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, average price per barrel | $ / bbl | 74 | ||
Derivative, nonmonetary notional amount | bbl | 400,000 | ||
Commodity Contract, July 19 Through June 2020 [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, average price per barrel | $ / bbl | 66.70 | ||
Barrels | bbl | 500,000 | ||
Subsequent Event [Member] | Commodity Contract, February 2021 Through January 2022 [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, average price per barrel | $ / bbl | 53.10 | ||
Barrels | bbl | 709,262 |
Derivatives and Fair Value (Eff
Derivatives and Fair Value (Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations) (Details) - Crude Oil Swaps [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments gain (loss), net | $ 6,577 | $ (446) | $ 4,264 |
Realized Gain - Contract Settlements [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments gain (loss), net | 7,216 | 2,439 | 744 |
Unrealized Gain (Loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments gain (loss), net | $ (639) | $ (2,885) | $ 3,520 |
Asset Retirement Obligations (N
Asset Retirement Obligations (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligations [Abstract] | |||
Additions | $ 359 | $ 595 | |
Revisions | $ (400) | $ 238 | $ (379) |
Asset Retirement Obligations (S
Asset Retirement Obligations (Summary of Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligations [Abstract] | |||
Beginning balance | $ 15,844 | $ 14,816 | |
Accretion | 893 | 812 | |
Additions | 359 | 595 | |
Revisions | $ (400) | 238 | (379) |
Ending balance | $ 15,844 | $ 17,334 | $ 15,844 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($) | Oct. 31, 2019USD ($) | Dec. 31, 2020USD ($)$ / Boeitembbl | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2019USD ($) | |
Commitments And Contingencies [Line Items] | ||||||
Charter fee for production up to 20,000 BOPD | $ / Boe | 0.93 | |||||
Charter fee amount threshold | bbl | 20,000 | |||||
Charter fee for those bbls produced in excess of 20,000 BOPD | $ / Boe | 2.50 | |||||
Company's share of charter expense | $ 13,100 | $ 12,100 | $ 10,800 | |||
Contractual obligation | 17,627 | |||||
Abandonment funding | 12,453 | 11,371 | ||||
Foreign currency gain on abandonment funding | 1,100 | |||||
Etame Marine Block [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Estimated abandonment costs | 19,200 | |||||
Abandonment funding | 12,500 | |||||
Loss contingency | $ 4,400 | $ 4,400 | ||||
Payment of joint venture audit settlement | $ 800 | $ 1,100 | ||||
Gabon [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Discount | 15.00% | |||||
Contractual obligation | $ 900 | $ 1,200 | $ 1,100 | |||
Additional percent of revenue for provisions | 1.00% | |||||
Percent of investment cost which are cost recoverable | 75.00% | |||||
FPSO Charter [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Number of extensions | item | 2 | |||||
Period of charter | 1 year | |||||
Guarantee liability | $ 400 | |||||
Consortium [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation | $ 56,757 | |||||
Consortium [Member] | Etame Marine Block [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Estimated abandonment costs | 61,800 | |||||
Abandonment funding | 40,200 | |||||
Gabon Dmo [Member] | Gabon [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation | 900 | 1,100 | ||||
Pid And Pih [Member] | Gabon [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation | $ 3,100 | $ 2,200 |
Commitments and Contingencies_3
Commitments and Contingencies (Estimated Obligations and Companies Share for the Annual Charter Payment) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Estimated obligation and company share for annual charter payment | |
2021 | $ 10,245 |
2022 | 7,382 |
Total | 17,627 |
Consortium [Member] | |
Estimated obligation and company share for annual charter payment | |
2021 | 32,988 |
2022 | 23,769 |
Total | $ 56,757 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Joint owner obligation | $ 16,400 |
Future lease liabilities | $ 23,728 |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 35 months |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 21 months |
Leases (Components of Lease Cos
Leases (Components of Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 17,528 | $ 16,428 |
Short-term lease cost | 1,408 | 3,470 |
Variable lease cost | 7,572 | 5,819 |
Total lease expense | 26,508 | 25,717 |
Lease costs capitalized | 3,456 | 3,653 |
Total lease costs | 29,964 | 29,370 |
Operating cash flows attributable to operating leases | $ 26,178 | $ 19,229 |
Weighted-average remaining lease term | 1 year 9 months 18 days | 2 years 8 months 12 days |
Weighted-average discount rate | 6.09% | 6.18% |
Leases (Lease Cost on Consolida
Leases (Lease Cost on Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Costs [Line Items] | ||
Total lease expense | $ 28,793 | $ 28,236 |
Lease costs capitalized | 1,171 | 1,134 |
Total lease costs | 29,964 | 29,370 |
Production Expense [Member] | ||
Lease Costs [Line Items] | ||
Total lease expense | 7,904 | 7,859 |
General and Administrative Expense [Member] | ||
Lease Costs [Line Items] | ||
Total lease expense | 197 | 196 |
Lease Costs Billed To Joint Venture Owners [Member] | ||
Lease Costs [Line Items] | ||
Total lease expense | $ 20,692 | $ 20,181 |
Leases (Schedule of Future Matu
Leases (Schedule of Future Maturities of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 13,864 |
2022 | 9,685 |
2023 | 179 |
Total lease payments | 23,728 |
Less: imputed interest | 1,167 |
Total lease liabilities | $ 22,561 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Schedule of Accrued Liabilities and Other Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities and Other [Abstract] | ||
Accrued accounts payable invoices | $ 4,070 | $ 4,650 |
Joint venture audit settlement | 3,322 | |
Gabon DMO, PID and PIH obligations | 3,960 | 3,314 |
Capital expenditures | 435 | 11,792 |
Stock appreciation rights - current portion | 2,289 | 2,638 |
Accrued wages and other compensation | 2,108 | 1,731 |
Other | 4,322 | 2,326 |
Total accrued liabilities and other | $ 17,184 | $ 29,773 |
Debt (Schedule of Interest Info
Debt (Schedule of Interest Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Interest expense related to debt, including commitment fees | $ (257) | ||
Deferred finance costs amortization | (191) | ||
Interest income | $ 155 | $ 733 | 270 |
Other interest expense not related to debt | 33 | ||
Interest income (expense), net | $ 155 | $ 733 | $ (145) |
Various Debt Instruments [Member] | |||
Debt Instrument [Line Items] | |||
Average effective interest rate, excluding commitment fees | 7.09% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 10 Months Ended | 12 Months Ended | |||
Apr. 13, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 20, 2019 | |
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized | 500,000 | 500,000 | |||
Preferred stock, par value | $ 25 | $ 25 | |||
Preferred stock, shares issued | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Price of shares repurchased | $ 992 | $ 3,911 | $ 51 | ||
2019 Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, amount authorized | $ 10,000 | ||||
Stock repurchase program, period in force | 12 months | ||||
Shares repurchased | 2,740,643 | ||||
Average price per share | $ 1.70 | ||||
Price of shares repurchased | $ 4,700 |
Stock-Based Compensation and _3
Stock-Based Compensation and Other Benefit Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 25, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options granted, reduction ratio for number authorized | 1.00% | ||||
Payments to settle stock appreciation rights | $ 275 | $ 491 | $ 82 | ||
Proceeds from stock options exercised | 100 | 300 | 500 | ||
Options granted | 644,758 | ||||
Options granted, weighted average exercise price | $ 1.23 | ||||
Stock-based compensation | $ 114 | $ 3,506 | $ 2,388 | ||
Weighted average grant date fair value - ($/share) | $ 0.79 | $ 1.06 | $ 0.68 | ||
Defined Contribution Plan, Cost | $ 400 | $ 400 | $ 300 | ||
Severance cost as percentage of target bonus | 75.00% | ||||
Long-Term Incentive Plan, 2020 [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards authorized | 5,500,000 | ||||
Awards available | 3,744,737 | ||||
Stock Option [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards, vesting period | 5 years | ||||
Award granted life | 10 years | 5 years | |||
Intrinsic value of options exercied | $ 43,000 | 300 | 600 | ||
Unrecognized compensation costs | $ 500 | ||||
Compensation costs expected to be recognized | 2 years 10 months 24 days | ||||
Stock Option [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage | 33.33% | ||||
Share price for vesting scheme | $ 1.42 | ||||
Stock Option [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage | 33.33% | ||||
Share price for vesting scheme | $ 1.63 | ||||
Stock Option [Member] | Share-based Payment Arrangement, Tranche Three [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage | 33.33% | ||||
Share price for vesting scheme | $ 1.88 | ||||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards, vesting period | 3 years | ||||
Other awards granted | 971,000 | ||||
Other awards granted, weighted average exercise price | $ 1.23 | $ 1.23 | |||
Unrecognized compensation costs | $ 800 | ||||
Compensation costs expected to be recognized | 1 year 4 months 24 days | ||||
Fair value of awards vested | $ 200 | $ 600 | $ 400 | ||
Weighted average grant date fair value - ($/share) | $ 1.35 | $ 2 | $ 1.71 | ||
Restricted Stock [Member] | Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Other awards granted | 710,851 | ||||
Restricted Stock [Member] | Director [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Other awards granted | 260,164 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation | $ (700) | ||||
Minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Severance cost as percentage of salary | 50.00% | ||||
Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Severance cost as percentage of salary | 100.00% |
Stock-Based Compensation and _4
Stock-Based Compensation and Other Benefit Plans (Summary of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 114 | $ 3,506 | $ 2,388 |
Equity Award [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 848 | 985 | 820 |
Liability Award [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ (734) | $ 2,521 | $ 1,568 |
Stock-Based Compensation and _5
Stock-Based Compensation and Other Benefit Plans (Stock Option Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation of the options granted | |||
Weighted average exercise price - ($/share) | $ 1.23 | $ 2.08 | $ 1.05 |
Expected life in years | 6 years | 3 years 2 months 12 days | 3 years 6 months |
Average expected volatility | 74.00% | 73.00% | 71.00% |
Risk-free interest rate | 0.42% | 2.33% | 2.51% |
Weighted average grant date fair value - ($/share) | $ 0.79 | $ 1.06 | $ 0.68 |
Stock-Based Compensation and _6
Stock-Based Compensation and Other Benefit Plans (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares Underlying Options, Granted | 644,758 | |
Weighted Average Exercise Price Per Share, Granted | $ 1.23 | |
Performance Shares [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares Underlying Options, Outstanding, Beginning Balance | ||
Number of Shares Underlying Options, Granted | 644,000 | |
Number of Shares Underlying Options, Exercised | ||
Number of Shares Underlying Options, Unvested shares forfeited | ||
Number of Shares Underlying Options, Vested shares expired | ||
Number of Shares Underlying Options, Outstanding, Ending Balance | 644,000 | |
Number of Shares Underlying Options, Exercisable | ||
Weighted Average Exercise Price Per Share, Beginning Balance | ||
Weighted Average Exercise Price Per Share, Granted | 1.23 | |
Weighted Average Exercise Price Per Share, Exercised | ||
Weighted Average Exercise Price Per Share, Unvested shares forfeited | ||
Weighted Average Exercise Price Per Share, Vested shares expired | ||
Weighted Average Exercise Price Per Share, Ending Balance | 1.23 | |
Weighted Average Exercise Price Per Share, Exercisable | ||
Weighted Average Remaining Contractual Term, Outstanding | 9 years 5 months 26 days | |
Aggregate Intrinsic Value, Outstanding | $ 348 | |
Non-Performance Shares [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares Underlying Options, Outstanding, Beginning Balance | 2,834,000 | |
Number of Shares Underlying Options, Exercised | 65,000 | |
Number of Shares Underlying Options, Unvested shares forfeited | (60,000) | |
Number of Shares Underlying Options, Vested shares expired | (904,000) | |
Number of Shares Underlying Options, Outstanding, Ending Balance | 1,804,000 | |
Number of Shares Underlying Options, Exercisable | 1,364,000 | |
Weighted Average Exercise Price Per Share, Beginning Balance | $ 1.55 | |
Weighted Average Exercise Price Per Share, Exercised | 0.96 | |
Weighted Average Exercise Price Per Share, Unvested shares forfeited | 1.83 | |
Weighted Average Exercise Price Per Share, Vested shares expired | 1.89 | |
Weighted Average Exercise Price Per Share, Ending Balance | 1.38 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 1.20 | |
Weighted Average Remaining Contractual Term, Outstanding | 1 year 11 months 8 days | |
Weighted Average Remaining Contractual Term, Exercisable | 1 year 7 months 17 days | |
Aggregate Intrinsic Value, Outstanding | $ 968 | |
Aggregate Intrinsic Value, Exercisable | $ 861 |
Stock-Based Compensation and _7
Stock-Based Compensation and Other Benefit Plans (Summary of Non Vested Awards) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested awards forfeited | (60) | |
Weighted Average Grant Price, Unvested awards forfeited | $ 1.83 | |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding, Beginning Balance | 343 | |
Awards granted | 971 | |
Awards vested | (159) | |
Outstanding, Ending Balance | 1,155 | |
Weighted Average Grant Price, Outstanding, Beginning Balance | $ 1.52 | |
Weighted Average Grant Price, Awards granted | $ 1.23 | 1.23 |
Weighted Average Grant Price, Awards vested | (1.35) | |
Weighted Average Grant Price, Outstanding, Ending Balance | $ 1.30 | |
Stock Appreciation Rights (SARs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding, Beginning Balance | 3,418 | |
Awards exercised | (357) | |
Vested shares expired | (61) | |
Outstanding, Ending Balance | 2,940 | |
Outstanding, Exercisable | 1,758 | |
Weighted Average Grant Price, Outstanding, Beginning Balance | $ 1.30 | |
Weighted Average Grant Price, Awards exercised | 0.95 | |
Weighted Average Grant Price, Vested shares expired | 1.34 | |
Weighted Average Grant Price, Outstanding, Ending Balance | 1.33 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 1.19 | |
Term (in years), Outstanding | 2 years 2 months 19 days | |
Term (in years), Exercisable | 1 year 10 months 28 days | |
Aggregate Intrinsic Value, Outstanding | $ 1,688 | |
Aggregate Intrinsic Value, Exercisable | $ 1,144 |