Annual report pursuant to Section 13 and 15(d)

SCHEDULE I - PARENT COMPANY FINANCIAL STATEMENTS

v2.4.1.9
SCHEDULE I - PARENT COMPANY FINANCIAL STATEMENTS
12 Months Ended
Dec. 31, 2014
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
SCHEDULE I - PARENT COMPANY FINANCIAL STATEMENTS

     SCHEDULE I — PARENT COMPANY FINANCIAL STATEMENTS

VAALCO ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands of dollars, except number of shares and par value amounts)

 

 

 

December 31,

2014

 

 

December 31,

2013

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,780

 

 

$

8,605

 

Restricted cash

 

 

-

 

 

 

10,000

 

Receivables:

 

 

 

 

 

 

 

 

Other

 

 

264

 

 

 

7

 

Prepayments and other

 

 

505

 

 

 

89

 

     Total current assets

 

 

4,549

 

 

 

18,701

 

Property and equipment - successful efforts method:

 

 

 

 

 

 

 

 

Equipment and other

 

 

1,316

 

 

 

500

 

 

 

 

1,316

 

 

 

500

 

Accumulated depreciation, depletion and amortization

 

 

(442

)

 

 

(348

)

Net property and equipment

 

 

874

 

 

 

152

 

Other assets:

 

 

 

 

 

 

 

 

Restricted cash

 

 

10,000

 

 

 

-

 

Deferred tax asset

 

 

1,349

 

 

 

1,349

 

Investment in Subsidiaries

 

 

166,232

 

 

 

233,061

 

Total Assets

 

$

183,004

 

 

$

253,263

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

2,541

 

 

 

2,389

 

    Total current liabilities

 

$

2,541

 

 

$

2,389

 

Long term debt

 

 

-

 

 

 

-

 

       Total liabilities

 

 

2,541

 

 

 

2,389

 

Minority Interest

 

 

 

 

 

 

 

 

VAALCO Energy Inc. shareholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.10 par value, 100,000,000 authorized shares, 65,194,828 and

  64,012,914 shares issued with 7,393,714 and 7,162,573 shares in treasury at

   Dec. 31, 2014 and 2013, respectively

 

 

6,519

 

 

 

6,408

 

Additional paid-in capital

 

 

64,351

 

 

 

55,455

 

Retained earnings

 

 

146,892

 

 

 

224,442

 

Less treasury stock, at cost

 

 

(37,299

)

 

 

(35,431

)

Total Equity

 

 

180,463

 

 

 

250,874

 

Total Liabililities and Equity

 

$

183,004

 

 

$

253,263

 

VAALCO ENERGY, INC.

STATEMENTS OF CONSOLIDATED OPERATIONS

(in thousands of dollars, except per share amounts)

 

 

 

Year Ended December 31,

 

 

 

2014

 

 

2013

 

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas sales

 

$

-

 

 

$

-

 

 

$

-

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

94

 

 

 

63

 

 

 

59

 

General and administrative expense

 

 

6,740

 

 

 

5,750

 

 

 

8,065

 

Total operating costs and expenses

 

 

6,834

 

 

 

5,813

 

 

 

8,124

 

Operating income (loss)

 

 

(6,834

)

 

 

(5,813

)

 

 

(8,124

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

33

 

 

 

33

 

 

 

86

 

Other, net

 

 

450

 

 

 

-

 

 

 

-

 

Equity in subsidiary earnings

 

 

(71,199

)

 

 

48,852

 

 

 

13,377

 

Total other income (expense)

 

 

(70,716

)

 

 

48,885

 

 

 

13,463

 

Income (loss) before income taxes

 

 

(77,550

)

 

 

43,072

 

 

 

5,339

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

 

 

(77,550

)

 

 

43,072

 

 

 

5,339

 

Less net income (loss) attributable to noncontrolling interest

 

 

-

 

 

 

-

 

 

 

(4,708

)

Net income (loss) attributable to VAALCO Energy, Inc.

 

$

(77,550

)

 

$

43,072

 

 

$

631

 

VAALCO ENERGY, INC.

STATEMENTS OF CONSOLIDATED CASH FLOWS

(in thousands of dollars)

 

 

 

Year Ended December 31,

 

 

 

2014

 

 

2013

 

 

2012

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(77,550

)

 

$

43,072

 

 

$

5,339

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

94

 

 

 

63

 

 

 

59

 

Stock based compensation

 

 

3,322

 

 

 

3,005

 

 

 

2,406

 

Equity in (earnings) loss from subsidiaries

 

 

71,199

 

 

 

(48,852

)

 

 

(13,377

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Other receivables

 

 

(257

)

 

 

180

 

 

 

27

 

Prepayments and other

 

 

(416

)

 

 

(16

)

 

 

14

 

Accounts payable and other liabilities

 

 

153

 

 

 

371

 

 

 

(2,710

)

Net cash (used in) operating activities

 

 

(3,455

)

 

 

(2,177

)

 

 

(8,242

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Investment in subsidiaries

 

 

(4,371

)

 

 

(8,245

)

 

 

-

 

Return of investment in subsidiaries

 

 

-

 

 

 

-

 

 

 

19,307

 

Decrease/(increase) in restricted cash

 

 

-

 

 

 

-

 

 

 

(10,000

)

Property and equipment expenditures

 

 

(816

)

 

 

(47

)

 

 

(77

)

Net cash (used in) investing activities

 

 

(5,187

)

 

 

(8,292

)

 

 

9,230

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from the issuance of common stock

 

 

5,685

 

 

 

3,729

 

 

 

3,335

 

Purchase of treasury stock

 

 

(1,868

)

 

 

(11,456

)

 

 

-

 

Distribution to noncontrolling interest

 

 

-

 

 

 

-

 

 

 

(5,595

)

Acquisition of noncontrolling interest

 

 

-

 

 

 

-

 

 

 

(26,200

)

Net cash provided by (used in) financing activities

 

 

3,817

 

 

 

(7,727

)

 

 

(28,460

)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

(4,825

)

 

 

(18,196

)

 

 

(27,472

)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

 

8,605

 

 

 

26,801

 

 

 

54,273

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

3,780

 

 

$

8,605

 

 

$

26,801

 

 

Note 1- The financial statements of VAALCO Energy, Inc (the “Registrant” or “Parent Company”) have been prepared pursuant to Rule 5-04 of Regulation S-X of the Securities Exchange Act of 1934, as amended, because certain of VAALCO’s subsidiaries are contractually prohibited from making payments, loans or transferring assets to the Parent Company or other affiliated entities. Specifically, under the terms of our IFC credit facility, VAALCO Etame (Gabon), Inc. could be restricted from transferring assets or making dividends, if the positive and negative covenants are not in compliance with the credit facility. The restricted net assets associated with each of these entities exceed 25% of the consolidated net assets of VAALCO Energy, Inc. as of December 31, 2014.  

For purposes of these financial statements, the Parent Company’s investments in wholly owned subsidiaries are accounted for under the equity method. Under this method, the accounts of the subsidiaries are not consolidated. The investments in and advances to subsidiaries are recorded in the unconsolidated balance sheets. The income (loss) from operations of subsidiaries is reported on an equity basis as equity in subsidiary earnings, net of tax, in the unconsolidated statements of operations of registrant. These statements should be read in conjunction with the consolidated financial statements and notes thereto, included in Part II, Item 8 of in this Annual Report on Form 10-K.