VAALCO Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

9 Months Ended

Sep. 30, 2017

11. SEGMENT INFORMATION

Our operations are based in Gabon, Equatorial Guinea and the U.S. Each of our three reportable operating segments is organized and managed based upon geographic location. Our Chief Executive Officer, who is the chief operating decision maker, and management, 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 which are not allocated to the reportable operating segments.

Segment activity of continuing operations for the three and nine months ended September 30, 2017 and 2016 and segment assets at September 30, 2017 and December 31, 2016 are as follows:



	Three Months Ended September 30, 2017
(in thousands)	Gabon		Equatorial Guinea		U.S.		Corporate and Other		Total
Revenues-oil and natural gas sales	$	18,162	$	—	$	16	$	—	$	18,178
Depreciation, depletion and amortization		1,633		—		—		67		1,700
Bad debt expense and other		(49)		—		—		—		(49)
Operating income (loss)		6,067		(44)		10		(2,312)		3,721
Interest expense, net		(327)		—		—		—		(327)
Income tax expense		2,749		—		—		—		2,749
Additions to property and equipment - accrual		237		—		—		60		297


	Three Months Ended September 30, 2016
(in thousands)	Gabon		Equatorial Guinea		U.S.		Corporate and Other		Total
Revenues-oil and natural gas sales	$	14,540	$	—	$	95	$	—	$	14,635
Depreciation, depletion and amortization		1,508		—		38		61		1,607
Impairment of proved properties		—		—		88		—		88
Bad debt expense and other		63		—		—		—		63
Other operating expense		324		—		—		—		324
Operating income (loss)		5,013		(184)		(61)		(1,078)		3,690
Interest income (expense), net		(329)		—		—		2		(327)
Income tax expense (benefit)		2,305		—		—		(107)		2,198
Additions to property and equipment - accrual		674		—		—		7		681


	Nine Months Ended September 30, 2017
(in thousands)	Gabon		Equatorial Guinea		U.S.		Corporate and Other		Total
Revenues-oil and natural gas sales	$	59,823	$	—	$	46	$	—	$	59,869
Depreciation, depletion and amortization		5,344		—		1		194		5,539
Bad debt expense and other		232		—		—		—		232
Operating income (loss)		25,117		(97)		356		(7,920)		17,456
Interest expense, net		(1,108)		—		—		—		(1,108)
Income tax expense		9,039		—		—		—		9,039
Additions to property and equipment - accrual		1,051		—		—		60		1,111


	Nine Months Ended September 30, 2016
(in thousands)	Gabon		Equatorial Guinea		U.S.		Corporate and Other		Total
Revenues-oil and natural gas sales	$	44,212	$	—	$	246	$	-	$	44,458
Depreciation, depletion and amortization		5,484		—		121		182		5,787
Impairment of proved properties		—		—		88		—		88
Bad debt expense and other		577		—		—		—		577
Other operating expense		9,959		—		—		—		9,959
Operating income (loss)		1,481		(319)		(64)		(6,308)		(5,210)
Interest expense, net		(2,285)		—		—		—		(2,285)
Income tax expense		6,884		—		—		—		6,884
Additions to property and equipment - accrual		(1,819)		—		140		7		(1,672)


(in thousands)	Gabon		Equatorial Guinea		U.S.		Corporate and Other		Total
Total assets from continuing operations:
As of September 30, 2017	$	61,694	$	10,093	$	83	$	1,892	$	73,762
As of December 31, 2016		64,478		10,122		382		3,911		78,893