10-Q: Quarterly report pursuant to Section 13 or 15(d)
Published on August 9, 2024
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _______ to _______
Commission File Number
VAALCO Energy, Inc.
(Exact name of registrant as specified in its charter)
| |
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| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
| Suite 700 |
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| (Address of principal executive offices) |
(Zip code) |
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
| |
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| Common Stock |
EGY |
London Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer |
☐ |
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☒ |
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| Non‑accelerated filer |
☐ |
Smaller reporting company Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
VAALCO ENERGY, INC. AND SUBSIDIARIES
Table of Contents
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
VAALCO ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
| As of June 30, 2024 |
As of December 31, 2023 |
|||||||
| (in thousands) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | $ | ||||||
| Restricted cash |
||||||||
| Receivables: |
||||||||
| Trade, net of allowances for credit loss and other of $ and $ million, respectively |
||||||||
| Accounts with joint venture owners, net of allowance for credit losses of $ and $ million, respectively |
||||||||
| Egypt receivables and other, net of allowances for credit loss and other of $ and $ million, respectively |
||||||||
| Crude oil inventory |
||||||||
| Prepayments and other |
||||||||
| Total current assets |
||||||||
| Crude oil, natural gas and NGLs properties and equipment, net |
||||||||
| Other noncurrent assets: |
||||||||
| Restricted cash |
||||||||
| Value added tax and other receivables, net of allowances for credit loss and other of $ and $ million, respectively |
||||||||
| Right of use operating lease assets |
||||||||
| Right of use finance lease assets |
||||||||
| Deferred tax assets |
||||||||
| Abandonment funding |
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| Other long-term assets |
||||||||
| Total assets |
$ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | $ | ||||||
| Accounts with joint venture owners |
||||||||
| Accrued liabilities and other |
||||||||
| Operating lease liabilities - current portion |
||||||||
| Finance lease liabilities - current portion |
||||||||
| Foreign income taxes payable |
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| Total current liabilities |
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| Asset retirement obligations |
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| Operating lease liabilities - net of current portion |
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| Finance lease liabilities - net of current portion |
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| Deferred tax liabilities |
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| Other long-term liabilities |
||||||||
| Total liabilities |
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| Commitments and contingencies (Note 10) |
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| Shareholders’ equity: |
||||||||
| Preferred stock, $ par value; shares authorized, issued |
||||||||
| Common stock, $ par value; shares authorized, and shares issued, and shares outstanding, respectively |
||||||||
| Additional paid-in capital |
||||||||
| Accumulated other comprehensive income |
( |
) | ||||||
| Less treasury stock, and shares, respectively, at cost |
( |
) | ( |
) | ||||
| Retained earnings |
||||||||
| Total shareholders' equity |
||||||||
| Total liabilities and shareholders' equity |
$ | $ | ||||||
See notes to condensed consolidated financial statements.
VAALCO ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| (in thousands, except per share amounts) |
||||||||||||||||
| Revenues: |
||||||||||||||||
| Crude oil, natural gas and natural gas liquids sales |
$ | $ | $ | $ | ||||||||||||
| Operating costs and expenses: |
||||||||||||||||
| Production expense |
||||||||||||||||
| FPSO demobilization and other costs |
||||||||||||||||
| Exploration expense |
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| Depreciation, depletion and amortization |
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| General and administrative expense |
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| Credit losses and other |
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| Total operating costs and expenses |
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| Other operating income (expense), net |
( |
) | ( |
) | ( |
) | ||||||||||
| Operating income |
||||||||||||||||
| Other income (expense): |
||||||||||||||||
| Derivative instruments gain (loss), net |
( |
) | ||||||||||||||
| Interest expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Bargain purchase gain |
||||||||||||||||
| Other income (expense), net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Total other expense, net |
( |
) | ( |
) | ||||||||||||
| Income before income taxes |
||||||||||||||||
| Income tax expense |
||||||||||||||||
| Net income |
$ | $ | $ | $ | ||||||||||||
| Other comprehensive income (loss) |
||||||||||||||||
| Currency translation adjustments |
( |
) | ( |
) | ||||||||||||
| Comprehensive income |
$ | $ | $ | $ | ||||||||||||
| Basic net income per share: |
||||||||||||||||
| Net income per share |
$ | $ | $ | $ | ||||||||||||
| Basic weighted average shares outstanding |
||||||||||||||||
| Diluted net income per share: |
||||||||||||||||
| Net income per share |
$ | $ | $ | $ | ||||||||||||
| Diluted weighted average shares outstanding |
||||||||||||||||
See notes to condensed consolidated financial statements.
VAALCO ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)
| Common Shares Issued |
Treasury Shares |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Treasury Stock |
Retained Earnings |
Total |
|||||||||||||||||||||||||
| (in thousands) |
||||||||||||||||||||||||||||||||
| Balance at January 1, 2024 |
( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||
| Shares issued - stock-based compensation |
— | |||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | ||||||||||||||||||||||||||||||
| Treasury stock |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
| Dividend distributions |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Other comprehensive loss |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Net income |
— | — | ||||||||||||||||||||||||||||||
| Balance at March 31, 2024 |
( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||
| Shares issued - stock-based compensation |
( |
) | — | |||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | ||||||||||||||||||||||||||||||
| Treasury stock |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
| Dividend distributions |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Other comprehensive loss |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Net income |
— | — | ||||||||||||||||||||||||||||||
| Balance at June 30, 2024 |
( |
) | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||
| Common Shares Issued |
Treasury Shares |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Treasury Stock |
Retained Earnings |
Total |
|||||||||||||||||||||||||
| (in thousands) |
||||||||||||||||||||||||||||||||
| Balance at January 1, 2023 |
( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||
| Shares issued - stock-based compensation |
( |
) | — | |||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | ||||||||||||||||||||||||||||||
| Treasury stock |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
| Dividend distributions |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Cumulative effect of adjustment upon adoption of ASU 2016-13 on January 1, 2023 |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Other comprehensive loss |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Net income |
— | — | ||||||||||||||||||||||||||||||
| Balance at March 31, 2023 |
( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||
| Shares issued - stock-based compensation |
( |
) | ( |
) | — | |||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | ||||||||||||||||||||||||||||||
| Treasury stock |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
| Dividend Distribution |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
| Other comprehensive loss |
— | — | ||||||||||||||||||||||||||||||
| Net income |
— | — | ||||||||||||||||||||||||||||||
| Balance at June 30, 2023 |
( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||
See notes to condensed consolidated financial statements.
VAALCO ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Six Months Ended June 30, |
||||||||
| 2024 |
2023 |
|||||||
| (in thousands) |
||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income |
$ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation, depletion and amortization |
||||||||
| Bargain purchase gain |
( |
) | ||||||
| Deferred taxes |
( |
) | ||||||
| Unrealized foreign exchange loss |
( |
) | ||||||
| Stock-based compensation |
||||||||
| Cash settlements paid on exercised stock appreciation rights |
( |
) | ( |
) | ||||
| Derivative instruments (gain) loss, net |
( |
) | ||||||
| Cash settlements paid on matured derivative contracts, net |
( |
) | ( |
) | ||||
| Cash settlements paid on asset retirement obligations |
( |
) | ( |
) | ||||
| Credit losses and other |
||||||||
| Other operating loss, net |
||||||||
| Operational expenses associated with equipment and other |
( |
) | ||||||
| Change in operating assets and liabilities: |
||||||||
| Trade, net |
( |
) | ( |
) | ||||
| Accounts with joint venture owners, net |
( |
) | ||||||
| Egypt receivables and other, net |
( |
) | ||||||
| Crude oil inventory |
( |
) | ||||||
| Prepayments and other |
( |
) | ( |
) | ||||
| Value added tax and other receivables |
( |
) | ( |
) | ||||
| Other long-term assets |
||||||||
| Accounts payable |
( |
) | ( |
) | ||||
| Foreign income taxes receivable/(payable) |
( |
) | ||||||
| Deferred tax liability |
( |
) | ||||||
| Accrued liabilities and other |
( |
) | ( |
) | ||||
| Net cash provided by (used in) operating activities |
||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Property and equipment expenditures |
( |
) | ( |
) | ||||
| Cash paid in business combination, net of cash acquired |
||||||||
| Net cash provided by (used in) investing activities |
( |
) | ( |
) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
| Proceeds from the issuances of common stock |
||||||||
| Dividend distribution |
( |
) | ( |
) | ||||
| Treasury shares |
( |
) | ( |
) | ||||
| Deferred financing costs |
( |
) | ( |
) | ||||
| Payments of finance lease |
( |
) | ( |
) | ||||
| Net cash provided by (used in) in financing activities |
( |
) | ( |
) | ||||
| Effects of exchange rate changes on cash |
( |
) | ( |
) | ||||
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
( |
) | ( |
) | ||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD |
||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
$ | $ | ||||||
See notes to condensed consolidated financial statements.
VAALCO ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SUPPLEMENTAL DISCLOSURES (Unaudited)
| Six Months Ended June 30, |
||||||||
| 2024 |
2023 |
|||||||
| (in thousands) |
||||||||
| Supplemental disclosure of cash flow information: |
||||||||
| Interest paid, net of amounts capitalized |
$ | $ | ||||||
| Supplemental disclosure of non-cash investing and financing activities: |
||||||||
| Property and equipment additions incurred but not paid at end of period |
$ | $ | ||||||
| Recognition of right-of-use finance lease assets and liabilities |
$ | $ | ||||||
See notes to condensed consolidated financial statements.
VAALCO ENERGY, INC. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND ACCOUNTING POLICIES
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, natural gas and NGLs properties. As operator, the Company has production operations and conducts exploration activities in Gabon and Canada and hold interests in two production sharing contracts ( “PSCs”) in Egypt and holds a non-operator interest in Cote d’Ivoire. The Company has opportunities to participate in development and exploration activities in Equatorial Guinea, West Africa.
These unaudited condensed consolidated financial statements (“Financial Statements”) reflect the opinion of management and all adjustments necessary for a fair presentation of results for the interim periods presented. All adjustments are of a normal recurring nature unless disclosed otherwise. Interim period results are not necessarily indicative of results expected for the full year.
These condensed consolidated financial statements have been prepared in accordance with rules of the Securities and Exchange Commission (“SEC”) and do not include all the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which includes a summary of the significant accounting policies.
Allowance for credit losses and other – The Company estimates the current expected credit losses based primarily using either an aging analysis or discounted cash flow methodology that incorporates consideration of current and future conditions that could impact its counterparties’ credit quality and liquidity. Uncollectible receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Company has determined that the balance will not be collected.
The following table provides an analysis of the change of the aggregate credit loss allowance and other allowances.
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| (in thousands) |
||||||||||||||||
| Allowance for credit losses and other |
||||||||||||||||
| Balance at beginning of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Credit loss charges and other, net of receipts |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Cumulative effect of adjustment upon adoption of ASU 2016-13 on January 1, 2023 |
( |
) | ||||||||||||||
| Foreign currency gain (loss) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Balance at end of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Fair value of financial instruments
| As of June 30, 2024 |
|||||||||||||||||
| Balance Sheet Line |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
| (in thousands) |
|||||||||||||||||
| Assets |
|||||||||||||||||
| Derivative asset |
|
$ | $ | $ | $ | ||||||||||||
| $ | — | $ | — | $ | — | $ | — | ||||||||||
| Liabilities |
|||||||||||||||||
| Derivative liability |
|
$ | $ | $ | $ | ||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| ` |
As of December 31, 2023 |
|||||||||||||||||
| Balance Sheet Line |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||
| (in thousands) |
||||||||||||||||||
| Assets |
||||||||||||||||||
| Derivative asset |
|
$ | $ | $ | $ | |||||||||||||
| $ | $ | $ | $ | |||||||||||||||
| Liabilities |
||||||||||||||||||
| SARs liability |
|
$ | $ | $ | $ | |||||||||||||
| $ | $ | $ | $ | |||||||||||||||
2. NEW ACCOUNTING STANDARDS
Not Yet Adopted
In August 2023, FASB issued new guidance to provide specific guidance on how a joint venture, upon formation, should recognize and initially measure assets contributed and liabilities assumed. The rules become effective prospectively for all joint venture formations occurring on or after January 1, 2025. VAALCO is currently assessing the impact of this guidance.
In November 2023, FASB issued new guidance to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The rules become effective for annual periods beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The standard requires additional disclosures about operating segments. VAALCO is currently evaluating the impact of adopting this guidance on the consolidated financial statements.
In December 2023, FASB issued new guidance to improve Income Tax disclosures to provide information to assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The rules become effective for annual periods beginning after December 15, 2024. The standard modifies required income tax disclosures. VAALCO is currently evaluating the impact of adopting this guidance on the consolidated financial statements.
3. ACQUISITION
On February 29, 2024, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) to purchase all of the issued shares in the capital of Svenska Petroleum Exploration Aktiebolag, a company incorporated in Sweden (“Svenska”) for $
| April 30, 2024 |
||||
| (in thousands) |
||||
| Purchase Consideration |
||||
| Cash |
$ | |||
| Total purchase consideration |
$ | |||
| April 30, 2024 | ||||
| (in thousands) | ||||
| Assets acquired: |
||||
| Cash and cash equivalents |
$ | |||
| Other receivables, net |
||||
| Crude oil inventory |
||||
| Prepayments and other |
||||
| Crude oil, natural gas and NGLs properties and equipment, net |
||||
| Restricted cash |
||||
| Other LT receivables |
||||
| Deferred tax asset |
||||
| Total assets acquired |
||||
| Liabilities assumed: |
||||
| Accounts payable |
( |
) | ||
| State oil liability |
( |
) | ||
| Accrued tax settlement |
( |
) | ||
| Accrued accounts payable invoices |
( |
) | ||
| Accrued liabilities and other |
( |
) | ||
| Asset retirement obligations |
( |
) | ||
| Deferred tax liability |
( |
) | ||
| Total liabilities acquired |
( |
) | ||
| Bargain purchase gain |
( |
) | ||
| Total purchase price |
$ | |||
All assets and liabilities associated with Svenska’s interest in the producing Baobab field as well as the non-producing discovery located offshore of Nigeria, including crude oil and natural gas properties, asset retirement obligations and working capital items, were recorded at their estimated fair value. The Company used estimated future crude oil prices as of the closing date, April 30, 2024, to apply to the estimated reserve quantities acquired and market participant assumptions to the estimated future operating and development costs to arrive at the estimates of future net revenues. The future net revenues were discounted using the Company’s weighted average cost of capital to determine the fair value at closing. The valuations to derive the purchase price included the use of both proved and unproved categories of reserves, expectation for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates, and risk adjusted discount rates. Other estimates were used by the Company to determine the fair value of certain assets and liabilities. The fair value of the acquired identifiable assets and liabilities is provisional pending the final valuations for Crude oil, natural gas and NGLs properties and equipment, net, Asset retirement obligations, Accrued liabilities and other and Deferred tax assets and liabilities. Svenska is subject to the legal and regulatory requirements, including but not limited to those related to environmental matters and taxation, in each of the jurisdictions in countries in which it operates. VAALCO has conducted a preliminary assessment of liabilities arising from these matters in each of these jurisdictions and has recognized provisional amounts in its initial accounting for the acquisition of Svenska for all identified liabilities in accordance with the requirements of ASC Topic 805. However, VAALCO is continuing its review of these matters during the measurement period, and if new information obtained about facts and circumstances that existed at the acquisition date identifies adjustments to the assets and liabilities initially recognized, as well as any additional assets and liabilities that existed at the acquisition date, the acquisition accounting will be revised to reflect the resulting adjustments to the provisional amounts initially recognized. As a result of comparing the purchase price to the fair value of the assets acquired and liabilities assumed a $
Post-Acquisition Operating Results. The table below summarizes amounts contributed by the Cote d’Ivoire assets acquired in the acquisition of Svenska to the Company's consolidated results for the period from April 30, 2024 through June 30, 2024.
| April 30, 2024 through June 30, 2024 |
||||
| (in thousands) |
||||
| Crude oil, natural gas and natural gas liquids sales |
$ | |||
| Net loss |
$ | ( |
) | |
The unaudited pro forma results presented below have been prepared to give the effect to the acquisition of Svenska discussed above on the Company’s results of operations for three and six months ended June 30, 2024 and 2023, as if the acquisition had been consummated on January 1, 2023. The unaudited pro forma results do not purport to represent what the Company’s actual results operations would have been if the acquisition of Svenska had been completed on such date or to project the Company’s results of operations for any future date or period.
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||||
| (in thousands) |
(in thousands) |
|||||||||||||||||
| Pro forma (unaudited) |
||||||||||||||||||
| Crude oil, natural gas and natural gas liquids sales |
$ | $ | $ | $ | ||||||||||||||
| Operating income |
( |
) | ||||||||||||||||
| Net income (loss) |
( |
) | (a) |
|
||||||||||||||
| Basic net income (loss) per share: |
||||||||||||||||||
| Income (loss) from continuing operations |
$ | ( |
) | $ | $ | $ | ||||||||||||
| Net income (loss) per share |
$ | ( |
) | $ | $ | $ | ||||||||||||
| Basic weighted average shares outstanding |
||||||||||||||||||
| Diluted net income (loss) per share: |
||||||||||||||||||
| Income (loss) from continuing operations |
$ | ( |
) | $ | $ | $ | ||||||||||||
| Net income (loss) per share |
$ | ( |
) | $ | $ | $ | ||||||||||||
| Diluted weighted average shares outstanding |
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(a) The unaudited pro forma net income for the three and six months ended June 30, 2024 excludes a nonrecurring pro forma adjustment directly attributable to the Svenska Acquisition, consisting of a bargain purchase gain of $
4. SEGMENT INFORMATION
The Company’s operations are based in Gabon, Egypt, Canada, Equatorial Guinea and Cote d'Ivoire. Each of the reportable operating segments are organized and managed based upon geographic location. The Company’s Chief Executive Officer, who is the chief operating decision maker, evaluates 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 three and six months ended June 30, 2024 and 2023 as well as long-lived assets and segment assets at June 30, 2024 and December 31, 2023 are as follows:
| Three Months Ended June 30, 2024 |
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| (in thousands) |
Gabon |
Egypt |
Canada |
Equatorial Guinea |
Cote d'Ivoire |
Corporate and Other |
Total |
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| Revenues: |
||||||||||||||||||||||||||||
| Crude oil, natural gas and natural gas liquids sales |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Operating costs and expenses: |
||||||||||||||||||||||||||||
| Production expense |
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| Exploration expense |
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| Depreciation, depletion and amortization |
||||||||||||||||||||||||||||
| General and administrative expense |
( |
) | ||||||||||||||||||||||||||
| Credit losses and other |
||||||||||||||||||||||||||||
| Total operating costs and expenses |
||||||||||||||||||||||||||||
| Other operating income (expense), net |
||||||||||||||||||||||||||||
| Operating income |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
| Other income (expense): |
||||||||||||||||||||||||||||
| Derivative instruments loss, net |
— | — | — | — | ||||||||||||||||||||||||
| Interest (expense) income, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Bargain purchase gain |
||||||||||||||||||||||||||||
| Other (expense) income, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Total other expense, net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
| Income (loss) before income taxes |
( |
) | ( |
) | ||||||||||||||||||||||||
| Income tax (benefit) expense |
( |
) | ( |
) | ||||||||||||||||||||||||
| Net income (loss) |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | |||||||||||||||||
| Consolidated capital expenditures |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Six Months Ended June 30, 2024 |
||||||||||||||||||||||||||||
| (in thousands) |
Gabon |
Egypt |
Canada |
Equatorial Guinea |
Cote d'Ivoire |
Corporate and Other |
Total |
|||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||
| Crude oil, natural gas and natural gas liquids sales |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Operating costs and expenses: |
||||||||||||||||||||||||||||
| Production expense |
||||||||||||||||||||||||||||
| Exploration expense |
||||||||||||||||||||||||||||
| Depreciation, depletion and amortization |
||||||||||||||||||||||||||||
| General and administrative expense |
( |
) | ||||||||||||||||||||||||||
| Credit losses and other |
||||||||||||||||||||||||||||
| Total operating costs and expenses |
||||||||||||||||||||||||||||
| Other operating income, net |
( |
) | ( |
) | ||||||||||||||||||||||||
| Operating income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
| Other income (expense): |
||||||||||||||||||||||||||||
| Derivative instruments gain, net |
( |
) | ( |
) | ||||||||||||||||||||||||
| Interest (expense) income, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Bargain purchase gain |
||||||||||||||||||||||||||||
| Other income (expense), net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Total other expense, net |
( |
) | ( |
) | ||||||||||||||||||||||||