Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.20.1
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Information [Abstract]  
Segment Information 5. SEGMENT INFORMATION

The Company’s operations are based in Gabon and Equatorial Guinea. Each of the two reportable operating segments is organized and managed based upon geographic location. The Company’s 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 that are not allocated to the reportable operating segments.

Segment activity of continuing operations for the years ended December 31, 2019, 2018 and 2017 and long-lived assets and segment assets at December 31, 2019 and 2018 are as follows:

Years Ended December 31, 2019

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

84,521

$

$

$

84,521

Depreciation, depletion and amortization

6,825

258

7,083

Gain on revision of asset retirement obligations

(379)

(379)

Bad debt recovery and other

(341)

(341)

Other operating income (expense), net

(4,456)

35

(4,421)

Operating income (loss)

35,049

(438)

(13,418)

21,193

Derivatives instruments loss, net

(446)

(446)

Interest income

5

728

733

Other, net

(230)

(3)

(205)

(438)

Income tax expense

20,311

12

3,567

23,890

Additions to crude oil and natural gas properties and equipment – accrual

22,116

57

22,173

Years Ended December 31, 2018

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

104,938

$

$

5

$

104,943

Depreciation, depletion and amortization

5,176

420

5,596

Gain on revision of asset retirement obligations

(3,325)

(3,325)

Bad debt recovery and other

(77)

(77)

Other operating income, net

365

365

Operating income (loss)

61,930

(470)

(10,173)

51,287

Derivatives instruments gain, net

4,264

4,264

Interest income (expense), net

(396)

251

(145)

Other, net

92

(4)

(20)

68

Income tax benefit

(26,670)

(16,584)

(43,254)

Additions to crude oil and natural gas properties and equipment – accrual

38,430

187

17

38,634

Years Ended December 31, 2017

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

76,978

$

$

47

$

77,025

Depreciation, depletion and amortization

6,196

261

6,457

Bad debt expense and other

452

452

Other operating expense, net

(84)

(84)

Operating income (loss)

28,488

(122)

(8,415)

19,951

Derivatives instruments loss, net

(1,032)

(1,032)

Interest expense, net

(1,414)

(1,414)

Other, net

3,142

15

(12)

3,145

Income tax expense

11,638

(1,260)

10,378

Additions to crude oil and natural gas properties and equipment – accrual

1,576

126

1,702

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Long-lived assets from continuing operations:

As of December 31, 2019

$

57,930

$

10,000

$

328

$

68,258

As of December 31, 2018

$

42,195

$

10,187

$

342

52,724

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Total assets from continuing operations:

As of December 31, 2019

$

151,686

$

10,087

$

49,764

$

211,537

As of December 31, 2018

$

103,401

$

10,320

$

49,301

163,022

Information about the Company’s most significant customers

The Company sells crude oil production from Gabon under term contracts with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. From August 2015 through January 2019, the Company sold its crude oil to Glencore Energy UK Ltd. (“Glencore”). The Company signed a new contract with Mercuria Energy Trading SA (“Mercuria”) that covers sales from February 2019 through January 2020 with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. The Company signed a new contract with ExxonMobil Corporation (“Exxon”) that covers sales from February 2020 through January 2021 with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. Sales of crude oil to Glencore and Mercuria were approximately 6% and 94%, respectively, of total revenues for the period during the terms of their contracts.