Annual report pursuant to Section 13 and 15(d)

Schedule I - Parent Company Financial Statements

v3.3.1.900
Schedule I - Parent Company Financial Statements
12 Months Ended
Dec. 31, 2015
Schedule I - Parent Company Financial Statements [Abstract]  
Schedule I - Parent Company Financial Statements

SCHEDULE I — PARENT COMPANY FINANCIAL STATEMENTS

VAALCO ENERGY, INC.

UNCONSOLIDATED BALANCE SHEETS

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2015

 

2014

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

 -

 

$

3,780 

Receivables:

 

 

 

 

 

 

Other

 

 

 -

 

 

264 

Prepayments and other

 

 

741 

 

 

505 

Total current assets

 

 

741 

 

 

4,549 

Property and equipment - successful efforts method:

 

 

 

 

 

 

Equipment and other

 

 

1,222 

 

 

1,316 

 

 

 

1,222 

 

 

1,316 

Accumulated depreciation, depletion and amortization

 

 

(428)

 

 

(442)

Net property and equipment

 

 

794 

 

 

874 

Other noncurrent assets:

 

 

 

 

 

 

Restricted cash

 

 

1,582 

 

 

10,000 

Deferred tax asset

 

 

 -

 

 

1,349 

Investment in subsidiaries

 

 

26,781 

 

 

166,232 

Total assets

 

$

29,898 

 

$

183,004 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

968 

 

$

215 

Accrued liabilities and other

 

 

2,854 

 

 

2,326 

Total liabilities

 

 

3,822 

 

 

2,541 

Commitments and contingencies

 

 

 

 

 

 

VAALCO Energy Inc. shareholders’ equity:

 

 

 

 

 

 

Preferred stock, none issued, 500,000 shares authorized, $25 par value

 

 

 -

 

 

 -

Common stock, 66,041,338 and 65,194,828 shares issued,
$0.10 par value, 100,000,000 shares authorized

 

 

6,604 

 

 

6,519 

Additional paid-in capital

 

 

69,118 

 

 

64,351 

Less treasury stock, 7,514,169 and 7,393,714 shares at cost

 

 

(37,882)

 

 

(37,299)

Retained earnings (deficit)

 

 

(11,764)

 

 

146,892 

Total equity

 

 

26,076 

 

 

180,463 

Total liabilities and equity

 

$

29,898 

 

$

183,004 

See accompanying notes to the unconsolidated financial statements.

 

 

VAALCO ENERGY, INC.

STATEMENTS OF UNCONSOLIDATED OPERATIONS

(in thousand dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2015

 

2014

 

2013

Revenues:

 

 

 

 

 

 

 

 

 

Oil and gas sales

 

$

 -

 

$

 -

 

$

 -

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

240 

 

 

94 

 

 

63 

General and administrative expense

 

 

7,550 

 

 

6,740 

 

 

5,750 

General and administrative expense related to shareholder matters

 

 

2,372 

 

 

 -

 

 

 -

Other costs and expenses

 

 

 -

 

 

 -

 

 

 -

Total operating costs and expenses

 

 

10,162 

 

 

6,834 

 

 

5,813 

Operating income (loss)

 

 

(10,162)

 

 

(6,834)

 

 

(5,813)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

(181)

 

 

33 

 

 

33 

Other, net

 

 

(469)

 

 

450 

 

 

 -

Equity in subsidiary earnings (losses)

 

 

(146,495)

 

 

(71,199)

 

 

48,852 

Total other income (expense)

 

 

(147,145)

 

 

(70,716)

 

 

48,885 

Income (loss) before income taxes

 

 

(157,307)

 

 

(77,550)

 

 

43,072 

Income tax expense

 

 

(1,349)

 

 

 -

 

 

 -

Net income (loss)

 

$

(158,656)

 

$

(77,550)

 

$

43,072 

 

 

 

 

VAALCO ENERGY, INC.

STATEMENTS OF UNCONSOLIDATED CASH FLOWS

(in thousands of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2015

 

2014

 

2013

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(158,656)

 

$

(77,550)

 

$

43,072 

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

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

240 

 

 

94 

 

 

63 

Deferred tax asset

 

 

1,349 

 

 

 -

 

 

 -

Stock-based compensation

 

 

3,810 

 

 

3,322 

 

 

3,005 

Equity in (earnings) losses from subsidiaries

 

 

146,495 

 

 

71,199 

 

 

(48,852)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Other receivables

 

 

293 

 

 

(257)

 

 

180 

Prepayments and other

 

 

(236)

 

 

(416)

 

 

(16)

Accounts payable

 

 

753 

 

 

(34)

 

 

213 

Accrued liabilities and other

 

 

517 

 

 

187 

 

 

158 

Net cash used in operating activities

 

 

(5,435)

 

 

(3,455)

 

 

(2,177)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Investment in subsidiaries

 

 

(7,044)

 

 

(4,371)

 

 

(8,245)

Decrease in restricted cash

 

 

8,418 

 

 

 -

 

 

 -

Property and equipment expenditures

 

 

(160)

 

 

(816)

 

 

(47)

Net cash provided by (used in) investing activities

 

 

1,214 

 

 

(5,187)

 

 

(8,292)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Proceeds from the issuances of common stock

 

 

441 

 

 

5,685 

 

 

3,729 

Purchases of treasury stock

 

 

 -

 

 

(1,868)

 

 

(11,456)

Net cash provided by (used in) financing activities

 

 

441 

 

 

3,817 

 

 

(7,727)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

(3,780)

 

 

(4,825)

 

 

(18,196)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

 

3,780 

 

 

8,605 

 

 

26,801 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

 -

 

$

3,780 

 

$

8,605 

See accompanying notes to the unconsolidated financial statements.

Notes to Unconsolidated Financial Statements

 

Note 1- The financial statements of VAALCO Energy, Inc. (the “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, 2015 and 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 Parent Company’s share of income (loss) from operations of the subsidiaries is reported as equity in subsidiary earnings, net of tax, in its unconsolidated statements of operations. 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.

The Parent Company and certain of its subsidiaries file a consolidated tax return for U.S. federal income taxes.  The amount of income tax expense for the Parent Company financial statements represents the amount attributable to the U.S. federal and state tax jurisdictions.  Income tax expense for foreign jurisdictions has been included in the applicable subsidiary’s results.