| Segment Information |
4. SEGMENT INFORMATION
Our operations are based in Gabon and Equatorial Guinea. Each of our two 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, 2018 and 2017 as well as long-lived assets and segment assets at September 30, 2018 and December 31, 2017 are as follows:
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Three Months Ended September 30, 2018
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(in thousands)
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Gabon
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Equatorial Guinea
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Corporate and Other
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Total
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Revenues-oil and natural gas sales
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$
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25,265
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$
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—
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$
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1
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$
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25,266
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Operating income (loss)
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19,826
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(159)
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(2,347)
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17,320
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Other, net
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3
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—
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(1,032)
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(1,029)
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Income tax expense (benefit)
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(42,141)
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—
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(20,083)
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(62,224)
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Additions to property and equipment - accrual
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17,983
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—
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3
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17,986
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Nine Months Ended September 30, 2018
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(in thousands)
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Gabon
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Equatorial Guinea
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Corporate and Other
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Total
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Revenues-oil and natural gas sales
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$
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77,333
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$
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—
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$
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4
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$
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77,337
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Operating income (loss)
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45,670
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(274)
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(9,315)
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36,081
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Other, net
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(127)
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(3)
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(2,054)
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(2,184)
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Income tax expense (benefit)
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(34,517)
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—
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(20,083)
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(54,600)
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Additions to property and equipment - accrual
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18,938
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—
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17
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18,955
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Three Months Ended September 30, 2017
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(in thousands)
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Gabon
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Equatorial Guinea
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Corporate and Other
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Total
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Revenues-oil and natural gas sales
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$
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18,162
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$
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—
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$
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16
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$
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18,178
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Operating income (loss)
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6,067
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(44)
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(2,302)
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3,721
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Other, net
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142
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4
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(939)
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(793)
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Income tax expense (benefit)
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2,749
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—
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—
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2,749
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Additions to property and equipment - accrual
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237
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—
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60
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297
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Nine Months Ended September 30, 2017
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(in thousands)
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Gabon
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Equatorial Guinea
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Corporate and Other
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Total
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Revenues-oil and natural gas sales
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$
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59,823
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$
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—
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$
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46
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$
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59,869
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Operating income (loss)
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25,117
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(97)
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(7,564)
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17,456
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Other, net
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441
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13
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(1,025)
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(571)
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Income tax expense (benefit)
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9,039
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—
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—
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9,039
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Additions to property and equipment - accrual
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1,051
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—
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60
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1,111
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(in thousands)
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Gabon
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Equatorial Guinea
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Corporate and Other
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Total
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Long-lived assets from continuing operations:
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Balance at September 30, 2018
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$
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24,526
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$
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10,000
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$
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405
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$
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34,931
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Balance at December 31, 2017
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12,638
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10,000
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583
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23,221
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Assets from continuing operations:
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Balance at September 30, 2018
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$
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104,574
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$
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10,088
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$
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44,477
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$
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159,139
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Balance at December 31, 2017
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63,122
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10,095
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3,580
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76,797
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Information about our most significant customers
For the period from August of 2015 through September 2018, we sold our crude oil production from Gabon under a term contract with Glencore Energy UK Ltd. (“Glencore”) with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. The contract with Glencore ends in January 2019. Sales of oil to Glencore were approximately 100% of total revenues for the three and nine months ended September 30, 2018 and 2017. We expect to be able to enter into a new contract with Glencore or other third party on competitive terms prior to the expiration of the current contract.
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