Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 2022
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 months ended March 31, 2022 and 2021 as well as long-lived assets and segment assets at March 31, 2022 and December 31, 2021 are as follows:

Three Months Ended March 31, 2022

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

68,656

$

—

$

—

$

68,656

Depreciation, depletion and amortization

4,653

—

20

4,673

Bad debt expense and other

492

—

—

492

Other operating expense, net

(5)

—

—

(5)

Operating income (loss)

44,705

(318)

(4,382)

40,005

Derivative instruments loss, net

—

—

(31,758)

(31,758)

Other, net

(638)

(1)

(57)

(696)

Income tax expense (benefit)

7,858

—

(12,486)

(4,628)

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

31,780

—

—

31,780

Three Months Ended March 31, 2021

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

39,774

$

—

$

—

$

39,774

Depreciation, depletion and amortization

4,121

—

27

4,148

Operating loss

18,680

(132)

(4,205)

14,343

Derivative instruments gain, net

—

—

(5,954)

(5,954)

Other, net

7,681

(2)

(3,099)

4,580

Income tax expense

5,239

1

(2,154)

3,086

Additions to crude oil and natural gas properties and equipment – accrual(1)

2,515

—

—

2,515

(1)    Excludes assets acquired in the Sasol acquisition.

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Long-lived assets from continuing operations:

As of March 31, 2022

$

111,787

$

10,000

$

148

$

121,935

As of December 31, 2021

$

84,156

$

10,000

$

168

$

94,324

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Total assets from continuing operations:

As of March 31, 2022

$

235,229

$

10,871

$

62,410

$

308,510

As of December 31, 2021

$

201,748

$

10,548

$

50,794

$

263,090

Information about the Company’s most significant customers

The Company currently sells crude oil production from Gabon under term crude oil sales and purchase agreements (“COSPAs”) with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. The Company signed a COSPA with ExxonMobil Sales and Supply LLC (“Exxon”) that covered 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. The COSPA with Exxon has been amended and extended several times, most recently in January 2022, to extend the date of the COSPA through the end of July 2022.

During the three months ended March 31, 2022 and 2021 revenues from sales of crude oil to Exxon were 100% of the Company’s total revenues from customers.