Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Income Taxes

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Note 13 - Income Taxes
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

13. INCOME TAXES   

 

VAALCO and its domestic subsidiaries file a consolidated U.S. income tax return. Certain foreign subsidiaries also file tax returns in their respective local jurisdictions that include Canada, Egypt, Equatorial Guinea and Gabon.

 

The foreign taxes payable are attributable to Gabon for the three months ended March 31, 2024 and 2023.

 

The Company’s effective tax rate for the three months ended  March 31, 2024 and 2023, excluding the impact of discrete items, was 61.05% and 60.96%, respectively. For the three months ended March 31, 2024 and 2023, the Company’s overall effective tax rate was primarily impacted by tax rates in foreign jurisdictions higher than the US statutory rate and by non-deductible items associated with operations.

 

For the three months ended March 31, 2024, the income tax expense of $22.2 million includes a $1.6 million unfavorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, income taxes were $20.7 million for the period. 

 

As of March 31, 2024, the Company had no material uncertain tax positions. The Company’s policy is to recognize potential interest and penalties related to unrecognized tax benefits as a component of income tax expense.