Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
9 Months Ended
Sep. 30, 2021
Segment Information [Abstract]  
Segment Information 4. SEGMENT INFORMATION

The Company’s operations are based in Gabon and the Company has an undeveloped block in Equatorial Guinea. Each of the Company’s 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 three and nine months ended September 30, 2021 and 2020 as well as long-lived assets and segment assets at September 30, 2021 and December 31, 2020 are as follows:

Three Months Ended September 30, 2021

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

55,899

$

$

$

55,899

Depreciation, depletion and amortization

6,953

17

6,970

Operating income (loss)

22,834

(271)

(2,533)

20,030

Derivative instruments loss, net

(5,147)

(5,147)

Income tax expense (benefit)

436

(17,619)

(17,183)

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

6,696

6,696

Nine Months Ended September 30, 2021

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

142,696

$

$

$

142,696

Depreciation, depletion and amortization

16,860

68

16,928

Bad debt expense and other

814

814

Other operating expense, net

(440)

(440)

Operating income (loss)

64,933

(505)

(11,181)

53,247

Derivative instruments loss, net

(21,070)

(21,070)

Other, net

7,207

(2)

(3,117)

4,088

Income tax expense (benefit)

8,396

1

(19,669)

(11,272)

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

10,993

10,993

Three Months Ended September 30, 2020

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

18,256

$

$

$

18,256

Depreciation, depletion and amortization

1,946

266

2,212

Bad debt expense and other

151

151

Operating income (loss)

6,957

(95)

(2,184)

4,678

Income tax expense (benefit)

(2,464)

1

(296)

(2,759)

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

(306)

(9)

(315)

Nine Months Ended September 30, 2020

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

54,619

$

$

$

54,619

Depreciation, depletion and amortization

7,790

326

8,116

Impairment of proved crude oil and natural gas properties

30,625

30,625

Bad debt expense and other

1,140

1,140

Other operating expense, net

(883)

(883)

Operating loss

(17,622)

(289)

(5,060)

(22,971)

Derivative instruments gain, net

6,583

6,583

Income tax expense

19,302

1

9,167

28,470

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

10,305

(9)

10,296

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Long-lived assets from continuing operations:

As of September 30, 2021

$

63,966

$

10,000

$

136

$

74,102

As of December 31, 2020

$

26,832

$

10,000

$

204

$

37,036

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Total assets from continuing operations:

As of September 30, 2021

$

149,188

$

10,430

$

46,642

$

206,260

As of December 31, 2020

$

101,399

$

10,267

$

29,566

$

141,232

Information about the Company’s most significant customers

The Company currently 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 February 2019 to January 2020, crude oil sales were to Mercuria Energy Trading SA (“Mercuria”). The Company signed a new contract with ExxonMobil Sales and Supply LLC (“Exxon”) that covers sales from February 2020 through January 2022 with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. During the three and nine months ended September 30, 2021, revenues from sales of crude oil to Exxon were 100% of the Company’s total revenues from customers.