Annual report pursuant to Section 13 and 15(d)

Note 5 - Segment Information

v3.24.0.1
Note 5 - Segment Information
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

5. SEGMENT INFORMATION

 

The Company’s operations are based in Gabon, Egypt, Canada and Equatorial Guinea. Each of the reportable operating segments are organized and managed based upon geographic location. The Company’s Chief Executive Officer, who is the chief operating decision maker evaluates 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. No transactions occurred between segments. 

 

Segment activity of continuing operations for the years ended December 31, 2023, 2022 and 2021 and long-lived assets and segment assets at December 31, 2023 and 2022 are as follows:

 

   

Year ended December 31, 2023

  

(in thousands)

  

Gabon

    

Egypt

    

Canada

    

Equatorial Guinea

    

Corporate and Other

    

Total

  

Revenues:

                                                

Crude oil, natural gas and natural gas liquids sales

   $ 260,346     $ 161,049     $ 33,671     $ —     $ —     $ 455,066  

Operating costs and expenses:

                                                

Production expense

     87,131       54,779       9,463       1,481       303       153,157  

FPSO demobilization and other costs

     7,484       —       —       —       —       7,484  

Exploration expense

     51       1,914       —       —       —       1,965  

Depreciation, depletion and amortization

     62,622       35,095       17,398       —       187       115,302  

General and administrative expense

     1,769       974       —       416       20,681       23,840  

Credit (recovery) losses and other

     (10,596 )     5,182       —       508       —       (4,906 )

Total operating costs and expenses

     148,461       97,944       26,861       2,405       21,171       296,842  

Other operating income (expense), net

     (55 )     (241 )     729       —       —       433  

Operating income (loss)

     111,830       62,864       7,539       (2,405 )     (21,171 )     158,657  

Other income (expense):

                                                

Derivative instruments gain (loss), net

     —       —       —       —       232       232  

Interest (expense) income, net

     (5,563 )     (2,110 )     (4 )     —       1,225       (6,452 )

Other income (expense), net

     (820 )     —       2       (6 )     (1,467 )     (2,291 )

Total other income (expense), net

     (6,383 )     (2,110 )     (2 )     (6 )     (10 )     (8,511 )

Income (loss) from continuing operations before income taxes

     105,447       60,754       7,537       (2,411 )     (21,181 )     150,146  

Income tax expense

     50,692       32,859       —       —       6,226       89,777  

Income (loss) from continuing operations

     54,755       27,895       7,537       (2,411 )     (27,407 )     60,369  

Loss from discontinued operations, net of tax

     —       —       —       —       (15 )     (15 )

Net income (loss)

   $ 54,755     $ 27,895     $ 7,537     $ (2,411 )   $ (27,422 )   $ 60,354  

Consolidated capital expenditures

   $ 17,011     $ 37,866     $ 16,809     $ —     $ 950     $ 72,636  

 

 

   

Year Ended December 31, 2022

  

(in thousands)

  

Gabon

    

Egypt

    

Canada

    

Equatorial Guinea

    

Corporate and Other

    

Total

  

Revenues:

                                                

Crude oil, natural gas and natural gas liquids sales

   $ 306,775     $ 37,710     $ 9,841     $ —     $ —     $ 354,326  

Operating costs and expenses:

                                                

Production expense

     96,854       11,936       1,972       1,899       —       112,661  

FPSO demobilization and other costs

     8,867       —       —       —       —       8,867  

Exploration expense

     258       —       —       —       —       258  

Depreciation, depletion and amortization

     34,651       10,444       2,921       —       127       48,143  

General and administrative expense

     3,101       —       —       538       6,438       10,077  

Credit (recovery) losses and other

     2,743       —       —       339       —       3,082  

Total operating costs and expenses

     146,474       22,380       4,893       2,776       6,565       183,088  

Other operating income (expense), net

     38       —       —       —       —       38  

Operating income (loss)

     160,339       15,330       4,948       (2,776 )     (6,565 )     171,276  

Other income (expense):

                                                

Derivative instruments gain (loss), net

     —       —       13       —       (37,825 )     (37,812 )

Interest (expense) income, net

     (1,446 )     (596 )     —       —       8       (2,034 )

Other expense, net

     (1,484 )     —       —       —       (6,564 )     (8,048 )

Total other income (expense), net

     (2,930 )     (596 )     13       —       (44,381 )     (47,894 )

Income (loss) from continuing operations before income taxes

     157,409       14,734       4,961       (2,776 )     (50,946 )     123,382  

Income tax (benefit) expense

     68,509       6,254       -       1       (3,344 )     71,420  

Income (loss) from continuing operations

     88,900       8,480       4,961       (2,777 )     (47,602 )     51,962  

Loss from discontinued operations, net of tax

     —       —       —       —       (72 )     (72 )

Net income (loss)

   $ 88,900     $ 8,480       4,961       (2,777 )   $ (47,674 )   $ 51,890  

Consolidated capital expenditures (1)

   $ 162,375     $ 168,012       103,263       —     $ 710     $ 434,360  

(1) Includes assets acquired in the TransGlobe acquisition.

 

 

   

Year Ended December 31, 2021

  

(in thousands)

  

Gabon

    

Equatorial Guinea

    

Corporate and Other

    

Total

  

Revenues:

                                

Crude oil and natural gas sales

   $ 199,075     $ —     $ —     $ 199,075  

Operating costs and expenses:

                                

Production expense

     80,717       532       6       81,255  

Exploration expense

     1,579       —       —       1,579  

Depreciation, depletion and amortization

     20,972       —       88       21,060  

General and administrative expense

     1,301       321       13,144       14,766  

Credit (recovery) losses and other

     875       —       —       875  

Total operating costs and expenses

     105,444       853       13,238       119,535  

Other operating income (expense), net

     (440 )     —       —       (440 )

Operating income (loss)

     93,191       (853 )     (13,238 )     79,100  

Other income (expense):

                                

Derivative instruments loss, net

     —       —       (22,826 )     (22,826 )

Interest income, net

     —       —       10       10  

Other income (expense), net

     6,925       (3 )     (3,428 )     3,494  

Total other income (expense), net

     6,925       (3 )     (26,244 )     (19,322 )

Income (loss) from continuing operations before income taxes

     100,116       (856 )     (39,482 )     59,778  

Income tax (benefit) expense

     12,392       1       (34,549 )     (22,156 )

Income (loss) from continuing operations

     87,724       (857 )     (4,933 )     81,934  

Loss from discontinued operations, net of tax

     —       —       (98 )     (98 )

Net income (loss)

   $ 87,724     $ (857 )   $ (5,031 )   $ 81,836  

Consolidated capital expenditures

   $ 79,169     $ —     $ 52     $ 79,221  

 

(in thousands)

  

Gabon

    

Egypt

    

Canada

    

Equatorial Guinea

    

Corporate and Other

    

Total

  

Long-lived assets from continuing operations:

                                                

As of December 31, 2023

   $ 171,787     $ 171,224     $ 105,189     $ 10,000     $ 1,586     $ 459,786  

As of December 31, 2022

   $ 213,204     $ 168,012     $ 103,263     $ 10,000     $ 793     $ 495,272  

 

 

(in thousands)

  

Gabon

    

Egypt

    

Canada

    

Equatorial Guinea

    

Corporate and Other

    

Total

  

Total assets from continuing operations:

                                                

As of December 31, 2023

   $ 309,394     $ 263,015     $ 114,215     $ 11,327     $ 125,265     $ 823,216  

As of December 31, 2022

   $ 395,393     $ 293,640     $ 110,071     $ 10,861     $ 45,676     $ 855,641