Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34018 | |
Entity Registrant Name | GRAN TIERRA ENERGY INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0479924 | |
Entity Address, Address Line One | 900, 520 - 3 Avenue SW | |
Entity Address, City or Town | Calgary, | |
Entity Address, State or Province | AB | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | T2P 0R3 | |
City Area Code | 403 | |
Local Phone Number | 265-3221 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | GTE | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 366,981,556 | |
Entity Central Index Key | 0001273441 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
OIL AND NATURAL GAS SALES (Note 7) | $ 86,079,000 | $ 152,565,000 |
EXPENSES | ||
Operating | 32,285,000 | 34,783,000 |
Workover | 12,303,000 | 6,289,000 |
Transportation | 4,037,000 | 8,103,000 |
Depletion, depreciation and accretion | 57,294,000 | 62,921,000 |
Goodwill impairment (Note 4) | 102,581,000 | 0 |
Inventory impairment (Note 4) | 3,904,000 | 0 |
General and administrative | 5,385,000 | 9,596,000 |
Severance | 1,322,000 | 672,000 |
Foreign exchange loss (gain) | 18,807,000 | (2,434,000) |
Financial instruments loss (Note 10) | 52,418,000 | 3,165,000 |
Interest expense (Note 5) | 12,810,000 | 7,938,000 |
EXPENSES | 303,146,000 | 131,033,000 |
INTEREST INCOME | 345,000 | 133,000 |
(LOSS) INCOME BEFORE INCOME TAXES | (216,722,000) | 21,665,000 |
INCOME TAX EXPENSE | ||
Current (Note 8) | 298,000 | 11,363,000 |
Deferred (Note 8) | 34,606,000 | 8,323,000 |
INCOME TAX EXPENSE | 34,904,000 | 19,686,000 |
NET AND COMPREHENSIVE (LOSS) INCOME | $ (251,626,000) | $ 1,979,000 |
NET (LOSS) INCOME PER SHARE | ||
Basic and diluted (in dollars per share) | $ (0.69) | $ 0.01 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 5) (in shares) | 366,981,556 | 386,930,323 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 5) (in shares) | 366,981,556 | 386,945,682 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents (Note 11) | $ 39,346 | $ 8,301 |
Restricted cash and cash equivalents (Note 11) | 421 | 516 |
Accounts receivable | 7,045 | 36,291 |
Investment (Note 10) | 26,020 | 94,741 |
Taxes receivable | 80,396 | 135,838 |
Other assets | 31,649 | 15,001 |
Total Current Assets | 184,877 | 290,688 |
Oil and Gas Properties | ||
Proved | 1,254,965 | 1,258,934 |
Unproved | 300,806 | 310,809 |
Total Oil and Gas Properties | 1,555,771 | 1,569,743 |
Other capital assets | 6,567 | 7,650 |
Total Property, Plant and Equipment (Note 3) | 1,562,338 | 1,577,393 |
Other Long-Term Assets | ||
Deferred tax assets | 0 | 44,003 |
Taxes receivable | 58,097 | 25,869 |
Other | 1,995 | 4,130 |
Goodwill (Note 4) | 0 | 102,581 |
Total Other Long-Term Assets | 60,092 | 176,583 |
Total Assets | 1,807,307 | 2,044,664 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 139,969 | 195,513 |
Derivatives (Note 10) | 5,444 | 775 |
Other current liabilities | 2,432 | 3,053 |
Total Current Liabilities | 147,845 | 199,341 |
Long-Term Liabilities | ||
Long-term debt (Notes 5 and 10) | 786,593 | 700,459 |
Deferred tax liabilities | 42,879 | 59,762 |
Asset retirement obligation | 43,632 | 43,419 |
Equity compensation award liability (Note 6 and 10) | 808 | 4,806 |
Other | 4,001 | 4,267 |
Total Long-Term Liabilities | 877,913 | 812,713 |
Contingencies (Note 9) | ||
Shareholders’ Equity | ||
Common Stock (Note 6) (366,981,556 and 366,981,556 shares issued and outstanding of Common Stock, par value $0.001 per share, as at March 31, 2020, and December 31, 2019, respectively) | 10,270 | 10,270 |
Additional paid-in capital | 1,283,192 | 1,282,627 |
Deficit | (511,913) | (260,287) |
Total Shareholders’ Equity | 781,549 | 1,032,610 |
Total Liabilities and Shareholders’ Equity | $ 1,807,307 | $ 2,044,664 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common Stock, shares issued (in shares) | 366,981,556 | 366,981,556 |
Common Stock, shares outstanding (in shares) | 366,981,556 | 366,981,556 |
Common Stock and exchangeable shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net (loss) income | $ (251,626,000) | $ 1,979,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depletion, depreciation and accretion | 57,294,000 | 62,921,000 |
Goodwill impairment (Note 4) | 102,581,000 | 0 |
Inventory impairment (Note 4) | 3,904,000 | 0 |
Deferred tax expense | 34,606,000 | 8,323,000 |
Stock-based (recovery) compensation (Note 6) | (2,055,000) | 1,727,000 |
Amortization of debt issuance costs (Note 5) | 844,000 | 838,000 |
Unrealized foreign exchange loss (gain) | 20,799,000 | (3,283,000) |
Financial instruments loss (Note 10) | 52,418,000 | 3,165,000 |
Cash settlement of financial instruments | 3,487,000 | (220,000) |
Cash settlement of asset retirement obligation | (27,000) | (217,000) |
Non-cash lease expenses | 490,000 | 0 |
Lease payments | (515,000) | 0 |
Net change in assets and liabilities from operating activities (Note 11) | (16,702,000) | (29,950,000) |
Net cash provided by operating activities | 5,498,000 | 45,283,000 |
Investing Activities | ||
Additions to property, plant and equipment | (44,277,000) | (94,489,000) |
Property acquisitions, net of cash acquired | 0 | (73,827,000) |
Changes in non-cash investing working capital | (17,850,000) | (2,166,000) |
Net cash used in investing activities | (62,127,000) | (170,482,000) |
Financing Activities | ||
Proceeds from bank debt, net of issuance costs (Note 5) | 88,009,000 | 117,000,000 |
Repayment of debt | 0 | (3,000,000) |
Repurchase of shares of Common Stock | 0 | (6,154,000) |
Lease payments | (243,000) | (345,000) |
Net cash provided by financing activities | 87,766,000 | 107,501,000 |
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents | (450,000) | (486,000) |
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 30,687,000 | (18,184,000) |
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period (Note 11) | 11,075,000 | 54,308,000 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period (Note 11) | $ 41,762,000 | $ 36,124,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Share Capital | Additional Paid-in Capital | Deficit |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to leases | $ (390) | |||
Balance, beginning of period at Dec. 31, 2018 | $ 10,290 | $ 1,318,048 | (298,588) | |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation (Note 6) | 474 | |||
Repurchase and cancellation of Common Stock | (3) | (6,151) | ||
Net (loss) income | $ 1,979 | 1,979 | ||
Balance, end of period at Mar. 31, 2019 | 1,025,659 | 10,287 | 1,312,371 | (296,999) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative adjustment for accounting change related to leases | 0 | |||
Balance, beginning of period at Dec. 31, 2019 | 10,270 | 1,282,627 | (260,287) | |
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation (Note 6) | 565 | |||
Repurchase and cancellation of Common Stock | 0 | 0 | ||
Net (loss) income | (251,626) | (251,626) | ||
Balance, end of period at Mar. 31, 2020 | $ 781,549 | $ 10,270 | $ 1,283,192 | $ (511,913) |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies These interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The information furnished herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of results for the interim periods. The note disclosure requirements of annual consolidated financial statements provide additional disclosures to that required for interim unaudited condensed consolidated financial statements. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended December 31, 2019 , included in the Company’s 2019 Annual Report on Form 10-K. The Company’s significant accounting policies are described in Note 2 of the consolidated financial statements which are included in the Company’s 2019 Annual Report on Form 10-K and are the same policies followed in these interim unaudited condensed consolidated financial statements, except as noted below. The Company has evaluated all subsequent events through to the date these interim unaudited condensed consolidated financial statements were issued. Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses". This ASU replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires a broader range of reasonable and supportable information to support credit loss estimates. In December 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Losses, Derivatives and Hedging and Leases", which is codification improvement of ASU 2016-13. The Company has adopted this ASU on January 1, 2020 and applied a current expected credit loss model to the accounts receivables that has resulted in no impact on the Company's consolidated position, results of operation or cash flows. At each reporting date, the Company assesses the expected lifetime credit losses on initial recognition of trade accounts receivable. Credit risk is assessed based on the number of days the receivable has been outstanding and the internal credit assessment of the customer. The expected loss rates are based on payment profiles over a period of 36 months before January 1, 2020 and the corresponding historical credit losses experienced within this period. Historical loss rates are adjusted to reflect current and forward looking economic factors of the country where the Company sells oil and gas that affect the ability of the customers to settle the receivables. Trade receivables are written off when there is no reasonable expectation of recovery. Measurement Uncertainty and Going Concern In March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. In addition, global commodity prices have declined significantly due to disputes between major oil producing countries combined with the impact of the COVID-19 pandemic and associated reductions in global demand for oil. Governments worldwide, including those in Colombia and Ecuador, the countries where the Company operates, have enacted emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and physical distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions; however, the success of these interventions is not currently determinable. The current challenging economic climate is having and may continue to have significant adverse impacts on the Company including, but not exclusively: • material declines in revenue and cash flows as a result of the decline in commodity prices; • declines in revenue and operating activities due to reduced capital programs and the shut-in of production; • impairment charges (see Note 4); • inability to comply with covenants and restrictions in debt agreements; • inability to access financing sources; • increased risk of non-performance by the Company’s customers and suppliers; and • interruptions in operations as the Company adjusts personnel to the dynamic environment. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the Company is not known at this time. Estimates and judgments made by management in the preparation of the financial statements are increasingly difficult and subject to a higher degree of measurement uncertainty during this volatile period. In the near term, matters in these financial statements that are most subject to be impacted by this volatile period are our assessment of liquidity and access to capital, the carrying value of long-lived assets and the valuation of the deferred tax assets. Under the terms of our senior secured credit facility ("credit facility"), we are required to maintain compliance with certain financial covenants, which include: limitations on our ratio of debt to Covenant EBITDAX ("EBITDAX") to a maximum of 4.0 to 1.0; limitations on our ratio of senior secured debt to EBITDAX to a maximum of 3.0 to 1.0; and the maintenance of a ratio of EBITDAX to interest expense of at least 2.5 to 1.0. As at March 31, 2020 , we were in compliance with all financial and operating covenants. The unprecedented decline in oil prices and related reduction in the Company's capital program has significantly reduced the Company’s forecasted EBITDAX. Based on current forward pricing, and forecasted production, costs and total debt, which can change materially in short time frames, especially in the current environment, the Company is not currently forecasted to be able to comply with certain financial covenants related to EBITDAX in the next twelve months. Management is working with the lenders under the Company’s credit facility to amend the covenants in the credit agreement in response to the current economic environment. Should the Company fail to comply with the terms of such credit agreement, the Company will not be able to borrow under the credit facility and it could result in the lenders having the right to demand repayment of amounts drawn on the credit facility and foreclose on collateral under the credit facility. In addition, in certain circumstances, an acceleration under the credit facility would constitute an event of default under the Senior Notes, thereby allowing the holders to demand repayment of amounts outstanding. In addition, the credit facility is subject to a semi-annual redetermination of the borrowing base, with the next redetermination expected to occur in May 2020. In conjunction with the redetermination, the lenders have the right to reduce the borrowing base, which could result in material reductions in the amount available for borrowings under the credit facility. Should the credit facility borrowing base be reduced to an amount below the amount of borrowings then outstanding ("Excess Borrowings"), the Company will, in certain circumstances, be required to repay the Excess Borrowings within 90 days . Whilst management believes the amendments to the covenants in the credit agreement necessary to avoid non-compliance in the next 12 months will be forthcoming, this risk of non-compliance with the covenants in the credit facility creates a material uncertainty that casts substantial doubt with respect to the ability of the Company to continue as a going concern. Management has prepared these consolidated condensed financial statements in accordance with US GAAP applicable to a going concern, which contemplates that assets will be realized and liabilities will be discharged in the normal course of business as they become due. These consolidated condensed financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported revenues and expenses and balance sheet classifications that would be necessary if the Company was unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material and adverse to the financial results of the Company. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (Thousands of U.S. Dollars) As at March 31, 2020 As at December 31, 2019 Oil and natural gas properties Proved $ 3,903,458 $ 3,850,565 Unproved 300,806 310,809 4,204,264 4,161,374 Other (1) 30,292 26,287 4,234,556 4,187,661 Accumulated depletion and depreciation (2,672,218 ) (2,610,268 ) $ 1,562,338 $ 1,577,393 (1) Included in other are right-of-use assets for operating and finance leases, net book value of which was $4.9 million as at March 31, 2020 ( $5.7 million as at December 31, 2019 ). |
Impairment
Impairment | 3 Months Ended |
Mar. 31, 2020 | |
Impairment Disclosure [Abstract] | |
Impairment | Impairment Asset impairment Based on ceiling test calculation results, no asset impairment losses were recorded for the three months ended March 31, 2020 and 2019 . Gran Tierra used an average Brent price of $67.49 per bbl for the purposes of the March 31, 2020 ceiling test calculations (March 31, 2019 - $70.64 ). The continued decline in the trailing price significantly increases the risk of ceiling test impairments in Q2, 2020 and beyond. Inventory Impairment For the three months ended March 31, 2020 the Company recorded $3.9 million relating to the impairment of inventory due to the decline in commodity pricing. There was no inventory impairment for the three months ended March 31, 2019 . Goodwill Impairment For the three months ended March 31, 2020 , the Company recorded $102.6 million impairment of goodwill relating to its Colombia business unit. The impairment was due to the carrying value of the unit exceeding its fair value as a result of the cumulative impact of lower forecasted commodity prices. The estimated fair value of the Colombia business unit for the goodwill impairment test was based on the discounted after-tax cash flows associated with the proved and probable reserves of the reporting unit. There was no goodwill impairment for the three months ended March 31, 2019 . |
Debt and Debt Issuance Costs
Debt and Debt Issuance Costs | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company's debt at March 31, 2020 and December 31, 2019 was as follows: (Thousands of U.S. Dollars) As at March 31, 2020 As at December 31, 2019 6.25% Senior Notes $ 300,000 $ 300,000 7.75% Senior Notes 300,000 300,000 Revolving credit facility 204,000 118,000 Unamortized debt issuance costs (20,237 ) (21,081 ) Long-term debt 783,763 696,919 Long-term lease obligation (1) 2,830 3,540 $ 786,593 $ 700,459 (1) The current portion of the lease obligation has been included in accounts payable and accrued liabilities on the Company's balance sheet and totaled $2.6 million as at March 31, 2020 ( December 31, 2019 - $3.3 million ). Interest Expense The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Contractual interest and other financing expenses $ 11,966 $ 7,100 Amortization of debt issuance costs 844 838 $ 12,810 $ 7,938 |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Capital | Share Capital Shares of Common Stock Balance at December 31, 2019 and March 31, 2020 366,981,556 Equity Compensation Awards The following table provides information about p erformance stock units (“PSUs”), deferred share units (“DSUs”), and stock option activity for the three months ended March 31, 2020 : PSUs DSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2019 11,371,367 1,251,994 10,612,872 2.78 Granted 14,440,342 197,707 7,735,674 0.75 Exercised (2,745,799 ) — — — Forfeited (330,699 ) — (512,696 ) 2.16 Expired — — (209,970 ) 4.68 Balance, March 31, 2020 22,735,211 1,449,701 17,625,880 1.89 For the three months ended March 31, 2020 , stock-based compensation recovery was $2.1 million ( three months ended March 31, 2019 - $1.7 million expense). At March 31, 2020 , there was $7.4 million ( December 31, 2019 - $6.7 million ) of unrecognized compensation cost related to unvested PSUs and stock options, which is expected to be recognized over a weighted average period of 2.2 years. During the three months ended March 31, 2020 , the Company paid out $3.2 million for PSUs which were vested December 31, 2019 ( three months ended March 31, 2019 - $10.2 million for PSU's which were vested December 31, 2018 ). Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of Common Stock issued and outstanding during each period. Diluted net income per share is calculated using the treasury stock method for share-based compensation arrangements. The treasury stock method assumes that any proceeds obtained on exercise of share-based compensation arrangements would be used to purchase common shares at the average market price during the period. The weighted average number of shares is then adjusted by the difference between the number of shares issued from the exercise of share-based compensation arrangements and shares repurchased from the related proceeds. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. Weighted Average Shares Outstanding Three Months Ended March 31, 2020 2019 Weighted average number of common shares outstanding 366,981,556 386,930,323 Shares issuable pursuant to stock options — 333,028 Shares assumed to be purchased from proceeds of stock options — (317,669 ) Weighted average number of diluted common shares outstanding 366,981,556 386,945,682 Common shares outstanding, as at period end 366,981,556 384,492,732 For the three months ended March 31, 2020 , all of the options ( three months ended March 31, 2019 - 10,284,152 ) were excluded from the diluted income per share calculation as the options were anti-dilutive. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue As at March 31, 2020 , accounts receivable included $0.7 million of accrued sales revenue related to March 2020 production ( December 31, 2019 - $0.1 million related to December 31, 2019 production). |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The Company's effective tax rate was (16)% for the three months ended March 31, 2020 , compared to 91% in the comparative period of 2019 . Current income tax expense was lower in the three months ended March 31, 2020 , compared to the corresponding period of 2019 , primarily as a result of lower income in Colombia. The deferred income tax expense of $34.6 million was higher for the three months ended March 31, 2020 , compared to $8.3 million in the corresponding period of 2019 , primarily as a result of previous losses incurred in Colombia that are now fully offset by a valuation allowance. For the three months ended March 31, 2020 , the difference between the effective tax rate of (16)% and the 32% Colombian tax rate was primarily due to an increase in the valuation allowance, the goodwill impairment which is not deductible for taxes purposes, the non-deductible portion ( 50% ) of the unrealized loss on the PetroTal Corp. ("PetroTal") shares, and foreign translation adjustments. For the comparative period of 2019 , the 91% effective tax rate differed from the Colombian tax rate of 33% |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings Gran Tierra has a number of lawsuits and claims pending, including a dispute with the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) ("ANH") relating to the calculation of HPR royalties. Discussions with the ANH are ongoing. Although the outcome of these lawsuits and disputes cannot be predicted with certainty, Gran Tierra believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs as they are incurred or become probable and determinable. Letters of credit and other credit support At March 31, 2020 , the Company had provided letters of credit and other credit support totaling $135.4 million ( December 31, 2019 - $120.6 million ) as security relating to work commitment guarantees in Colombia and Ecuador contained in exploration contracts and other capital or operating requirements. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Financial Instruments At March 31, 2020 , the Company’s financial instruments recognized on the balance sheet consisted of: cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, investment, accounts payable and accrued liabilities, derivatives, long-term debt, equity compensation award liability and other long-term liabilities. Fair Value Measurement The fair value of investment, derivatives and PSU liability is remeasured at the estimated fair value at the end of each reporting period. The fair value of the Company's investment in PetroTal was estimated to be $26.0 million at March 31, 2020 , based on the closing stock price of PetroTal of $0.15 CAD and the foreign exchange rate at that date. PetroTal is a publicly-traded energy company incorporated and domiciled in Canada engaged in exploration, appraisal and development of crude oil and natural gas in Peru. PetroTal's shares are listed on the Toronto Stock Exchange Venture under the trading symbol 'TAL' and on the London Stock Exchange Alternative Investment Market under the trading symbol 'PTAL'. Gran Tierra through a subsidiary holds approximately 246 million common shares representing approximately 37% of PetroTal's issued and outstanding common shares. Gran Tierra has the right to nominate two directors to the board of PetroTal. The fair value of commodity price and foreign currency derivatives is estimated based on various factors, including quoted market prices in active markets and quotes from third parties. The Company also performs an internal valuation to ensure the reasonableness of third party quotes. In consideration of counterparty credit risk, the Company assessed the possibility of whether the counterparty to the derivative would default by failing to make any contractually required payments. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. The fair value of the PSU liability was estimated based on option pricing model using inputs such as quoted market prices in an active market, and PSU performance factor. The fair value of investment, derivatives and equity compensation award liability (PSU and DSU) at March 31, 2020 , and December 31, 2019 , was as follows: (Thousands of U.S. Dollars) As at March 31, 2020 As at December 31, 2019 Investment $ 26,020 $ 94,741 Derivative asset (1) 17,923 — 43,943 94,741 Derivative liability $ 5,444 $ 775 PSU and DSU liability (2) 1,231 7,859 $ 6,675 $ 8,634 (1) Included in other current assets on the Company's balance sheet (2) The current portion of PSU and DSU liability of $0.4 million is included in other current liabilities on the Company's balance sheet The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Commodity price derivative (gain) loss $ (18,319 ) $ 1,194 Foreign currency derivatives loss 5,452 — Investment loss 65,285 1,971 Financial instruments loss $ 52,418 $ 3,165 Investment loss for the three months ended March 31, 2020 , was related to the fair value loss on the PetroTal shares. For the three months ended March 31, 2020 and 2019 , this investment loss was unrealized. Financial instruments not recorded at fair value include the Company's 6.25% Senior Notes due 2025 (the " 6.25% Senior Notes") and 7.75% Senior Notes due 2027 (the " 7.75% Senior Notes"). At March 31, 2020 , the carrying amounts of the 6.25% Senior Notes and the 7.75% Senior Notes were $291.1 million and $290.1 million , respectively, which represented the aggregate principal amount less unamortized debt issuance costs, and the fair values were $80.0 million and $71.7 million , respectively. The fair value of long-term restricted cash and cash equivalents and the revolving credit facility approximated their carrying value because interest rates are variable and reflective of market rates. The fair values of other financial instruments approximate their carrying amounts due to the short-term maturity of these instruments. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets and liabilities and have the highest priority. Level 2 and 3 inputs are based on significant other observable inputs and significant unobservable inputs, respectively, and have lower priorities. The Company uses appropriate valuation techniques based on the available inputs to measure the fair values of assets and liabilities. At March 31, 2020 , the fair value of the investment and DSU liability was determined using Level 1 inputs, the fair value of derivatives and PSUs was determined using Level 2 inputs. The Company uses available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s Senior Notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The disclosure in the paragraph above regarding the fair value of cash and restricted cash and cash equivalents and Senior Notes was based on Level 1 inputs and the fair value of credit facility was based on Level 2 inputs. The Company’s non-recurring fair value measurements include asset retirement obligations. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. Commodity Price Derivatives The Company utilizes commodity price derivatives to manage the variability in cash flows associated with the forecasted sale of its oil production, reduce commodity price risk and provide a base level of cash flow in order to assure it can execute at least a portion of its capital spending. At March 31, 2020 , the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Sold Put ($/bbl, Weighted Average) Purchased Put ($/bbl, Weighted Average) Sold Call ($/bbl, Weighted Average) Premium ($/bbl, Weighted Average) Collars: April 1, to June 30, 2020 6,000 ICE Brent n/a 55.00 69.05 n/a Collars: April 1, to December 31, 2020 4,000 ICE Brent 25.00 35.00 37.72 n/a Collars: July 1, to December 31, 2020 3,000 ICE Brent 25.00 35.00 44.25 1.00 Foreign Currency Derivatives The Company utilizes foreign currency derivatives to manage the variability in cash flows associated with the Company's forecasted Colombian peso ("COP") denominated expenses. At March 31, 2020 , the Company had outstanding foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) (1) Reference Floor Price Cap Price (COP, Weighted Average) Collars: April 1, to December 31, 2020 110,250 27,192 COP 3,306 3,425 (1) At March 31, 2020 foreign exchange rate. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at March 31, As at December 31, 2020 2019 2019 2018 Cash and cash equivalents $ 39,346 $ 32,740 $ 8,301 $ 51,040 Restricted cash and cash equivalents - current 421 1,118 516 1,269 Restricted cash and cash equivalents - long-term (included in other long-term assets) 1,995 2,266 2,258 1,999 $ 41,762 $ 36,124 $ 11,075 $ 54,308 Net changes in assets and liabilities from operating activities were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Accounts receivable and other long-term assets $ 29,577 $ (18,011 ) Derivatives (3,873 ) (796 ) Inventory (1,473 ) (1,749 ) Prepaids 15 551 Accounts payable and accrued and other long-term liabilities (32,283 ) 6,456 Taxes receivable and payable (8,665 ) (16,401 ) Net changes in assets and liabilities from operating activities $ (16,702 ) $ (29,950 ) The following table provides additional supplemental cash flow disclosures: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Cash paid for income taxes $ 5,208 $ 15,500 Cash paid for interest $ 10,752 $ 10,063 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 59,503 $ 83,038 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements/Recently Issued but Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses". This ASU replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires a broader range of reasonable and supportable information to support credit loss estimates. In December 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Losses, Derivatives and Hedging and Leases", which is codification improvement of ASU 2016-13. The Company has adopted this ASU on January 1, 2020 and applied a current expected credit loss model to the accounts receivables that has resulted in no impact on the Company's consolidated position, results of operation or cash flows. At each reporting date, the Company assesses the expected lifetime credit losses on initial recognition of trade accounts receivable. Credit risk is assessed based on the number of days the receivable has been outstanding and the internal credit assessment of the customer. The expected loss rates are based on payment profiles over a period of 36 months before January 1, 2020 and the corresponding historical credit losses experienced within this period. Historical loss rates are adjusted to reflect current and forward looking economic factors of the country where the Company sells oil and gas that affect the ability of the customers to settle the receivables. Trade receivables are written off when there is no reasonable expectation of recovery. Measurement Uncertainty and Going Concern In March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. In addition, global commodity prices have declined significantly due to disputes between major oil producing countries combined with the impact of the COVID-19 pandemic and associated reductions in global demand for oil. Governments worldwide, including those in Colombia and Ecuador, the countries where the Company operates, have enacted emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and physical distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions; however, the success of these interventions is not currently determinable. The current challenging economic climate is having and may continue to have significant adverse impacts on the Company including, but not exclusively: • material declines in revenue and cash flows as a result of the decline in commodity prices; • declines in revenue and operating activities due to reduced capital programs and the shut-in of production; • impairment charges (see Note 4); • inability to comply with covenants and restrictions in debt agreements; • inability to access financing sources; • increased risk of non-performance by the Company’s customers and suppliers; and • interruptions in operations as the Company adjusts personnel to the dynamic environment. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the Company is not known at this time. Estimates and judgments made by management in the preparation of the financial statements are increasingly difficult and subject to a higher degree of measurement uncertainty during this volatile period. In the near term, matters in these financial statements that are most subject to be impacted by this volatile period are our assessment of liquidity and access to capital, the carrying value of long-lived assets and the valuation of the deferred tax assets. Under the terms of our senior secured credit facility ("credit facility"), we are required to maintain compliance with certain financial covenants, which include: limitations on our ratio of debt to Covenant EBITDAX ("EBITDAX") to a maximum of 4.0 to 1.0; limitations on our ratio of senior secured debt to EBITDAX to a maximum of 3.0 to 1.0; and the maintenance of a ratio of EBITDAX to interest expense of at least 2.5 to 1.0. As at March 31, 2020 , we were in compliance with all financial and operating covenants. The unprecedented decline in oil prices and related reduction in the Company's capital program has significantly reduced the Company’s forecasted EBITDAX. Based on current forward pricing, and forecasted production, costs and total debt, which can change materially in short time frames, especially in the current environment, the Company is not currently forecasted to be able to comply with certain financial covenants related to EBITDAX in the next twelve months. Management is working with the lenders under the Company’s credit facility to amend the covenants in the credit agreement in response to the current economic environment. Should the Company fail to comply with the terms of such credit agreement, the Company will not be able to borrow under the credit facility and it could result in the lenders having the right to demand repayment of amounts drawn on the credit facility and foreclose on collateral under the credit facility. In addition, in certain circumstances, an acceleration under the credit facility would constitute an event of default under the Senior Notes, thereby allowing the holders to demand repayment of amounts outstanding. In addition, the credit facility is subject to a semi-annual redetermination of the borrowing base, with the next redetermination expected to occur in May 2020. In conjunction with the redetermination, the lenders have the right to reduce the borrowing base, which could result in material reductions in the amount available for borrowings under the credit facility. Should the credit facility borrowing base be reduced to an amount below the amount of borrowings then outstanding ("Excess Borrowings"), the Company will, in certain circumstances, be required to repay the Excess Borrowings within 90 days . Whilst management believes the amendments to the covenants in the credit agreement necessary to avoid non-compliance in the next 12 months will be forthcoming, this risk of non-compliance with the covenants in the credit facility creates a material uncertainty that casts substantial doubt with respect to the ability of the Company to continue as a going concern. Management has prepared these consolidated condensed financial statements in accordance with US GAAP applicable to a going concern, which contemplates that assets will be realized and liabilities will be discharged in the normal course of business as they become due. These consolidated condensed financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported revenues and expenses and balance sheet classifications that would be necessary if the Company was unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material and adverse to the financial results of the Company. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Asset Acquisition | (Thousands of U.S. Dollars) As at March 31, 2020 As at December 31, 2019 Oil and natural gas properties Proved $ 3,903,458 $ 3,850,565 Unproved 300,806 310,809 4,204,264 4,161,374 Other (1) 30,292 26,287 4,234,556 4,187,661 Accumulated depletion and depreciation (2,672,218 ) (2,610,268 ) $ 1,562,338 $ 1,577,393 (1) Included in other are right-of-use assets for operating and finance leases, net book value of which was $4.9 million as at March 31, 2020 ( $5.7 million as at December 31, 2019 ). |
Debt and Debt Issuance Costs (T
Debt and Debt Issuance Costs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt at March 31, 2020 and December 31, 2019 was as follows: (Thousands of U.S. Dollars) As at March 31, 2020 As at December 31, 2019 6.25% Senior Notes $ 300,000 $ 300,000 7.75% Senior Notes 300,000 300,000 Revolving credit facility 204,000 118,000 Unamortized debt issuance costs (20,237 ) (21,081 ) Long-term debt 783,763 696,919 Long-term lease obligation (1) 2,830 3,540 $ 786,593 $ 700,459 (1) The current portion of the lease obligation has been included in accounts payable and accrued liabilities on the Company's balance sheet and totaled $2.6 million as at March 31, 2020 ( December 31, 2019 - $3.3 million ). |
Schedule of Interest Expense Recognized | The following table presents total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Contractual interest and other financing expenses $ 11,966 $ 7,100 Amortization of debt issuance costs 844 838 $ 12,810 $ 7,938 |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Common Stock | Shares of Common Stock Balance at December 31, 2019 and March 31, 2020 366,981,556 |
Schedule of PSU, DSU, RSU and Stock Option Activity | The following table provides information about p erformance stock units (“PSUs”), deferred share units (“DSUs”), and stock option activity for the three months ended March 31, 2020 : PSUs DSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2019 11,371,367 1,251,994 10,612,872 2.78 Granted 14,440,342 197,707 7,735,674 0.75 Exercised (2,745,799 ) — — — Forfeited (330,699 ) — (512,696 ) 2.16 Expired — — (209,970 ) 4.68 Balance, March 31, 2020 22,735,211 1,449,701 17,625,880 1.89 |
Schedule of Weighted Average Shares Outstanding | Weighted Average Shares Outstanding Three Months Ended March 31, 2020 2019 Weighted average number of common shares outstanding 366,981,556 386,930,323 Shares issuable pursuant to stock options — 333,028 Shares assumed to be purchased from proceeds of stock options — (317,669 ) Weighted average number of diluted common shares outstanding 366,981,556 386,945,682 Common shares outstanding, as at period end 366,981,556 384,492,732 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities | The fair value of investment, derivatives and equity compensation award liability (PSU and DSU) at March 31, 2020 , and December 31, 2019 , was as follows: (Thousands of U.S. Dollars) As at March 31, 2020 As at December 31, 2019 Investment $ 26,020 $ 94,741 Derivative asset (1) 17,923 — 43,943 94,741 Derivative liability $ 5,444 $ 775 PSU and DSU liability (2) 1,231 7,859 $ 6,675 $ 8,634 (1) Included in other current assets on the Company's balance sheet (2) The current portion of PSU and DSU liability of $0.4 million is included in other current liabilities on the Company's balance sheet |
Schedule of Gains or Losses on Financial Instruments Recognized | The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Commodity price derivative (gain) loss $ (18,319 ) $ 1,194 Foreign currency derivatives loss 5,452 — Investment loss 65,285 1,971 Financial instruments loss $ 52,418 $ 3,165 |
Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts | At March 31, 2020 , the Company had outstanding commodity price derivative positions as follows: Period and type of instrument Volume, Reference Sold Put ($/bbl, Weighted Average) Purchased Put ($/bbl, Weighted Average) Sold Call ($/bbl, Weighted Average) Premium ($/bbl, Weighted Average) Collars: April 1, to June 30, 2020 6,000 ICE Brent n/a 55.00 69.05 n/a Collars: April 1, to December 31, 2020 4,000 ICE Brent 25.00 35.00 37.72 n/a Collars: July 1, to December 31, 2020 3,000 ICE Brent 25.00 35.00 44.25 1.00 |
Schedule of Outstanding Foreign Currency Derivative Positions | At March 31, 2020 , the Company had outstanding foreign currency derivative positions as follows: Period and type of instrument Amount Hedged U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars) (1) Reference Floor Price Cap Price (COP, Weighted Average) Collars: April 1, to December 31, 2020 110,250 27,192 COP 3,306 3,425 (1) At March 31, 2020 foreign exchange rate. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company's interim unaudited condensed consolidated balance sheet that sum to the total of the same such amounts shown in the interim unaudited condensed consolidated statements of cash flows: (Thousands of U.S. Dollars) As at March 31, As at December 31, 2020 2019 2019 2018 Cash and cash equivalents $ 39,346 $ 32,740 $ 8,301 $ 51,040 Restricted cash and cash equivalents - current 421 1,118 516 1,269 Restricted cash and cash equivalents - long-term (included in other long-term assets) 1,995 2,266 2,258 1,999 $ 41,762 $ 36,124 $ 11,075 $ 54,308 |
Schedule of Net Changes in Assets and Liabilities | Net changes in assets and liabilities from operating activities were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Accounts receivable and other long-term assets $ 29,577 $ (18,011 ) Derivatives (3,873 ) (796 ) Inventory (1,473 ) (1,749 ) Prepaids 15 551 Accounts payable and accrued and other long-term liabilities (32,283 ) 6,456 Taxes receivable and payable (8,665 ) (16,401 ) Net changes in assets and liabilities from operating activities $ (16,702 ) $ (29,950 ) |
Schedule of Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures: Three Months Ended March 31, (Thousands of U.S. Dollars) 2020 2019 Cash paid for income taxes $ 5,208 $ 15,500 Cash paid for interest $ 10,752 $ 10,063 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 59,503 $ 83,038 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Maximum | |
Debt Instrument [Line Items] | |
Debt to EBITDAX ratio | 400.00% |
Revolving credit facility | |
Debt Instrument [Line Items] | |
Required Period of Excess Borrowings Repayment | 90 days |
Revolving credit facility | Maximum | |
Debt Instrument [Line Items] | |
Debt to EBITDAX ratio | 300.00% |
Revolving credit facility | Minimum | |
Debt Instrument [Line Items] | |
EBITDAX to interest expense, ratio | 250.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - PP&E Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,234,556 | $ 4,187,661 |
Accumulated depletion and depreciation | (2,672,218) | (2,610,268) |
Total Property, Plant and Equipment (Notes 5) | 1,562,338 | 1,577,393 |
Right-of-use asset | 4,900 | 5,700 |
Oil and natural gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,204,264 | 4,161,374 |
Proved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,903,458 | 3,850,565 |
Unproved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 300,806 | 310,809 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 30,292 | $ 26,287 |
Impairment (Details)
Impairment (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)$ / bbl | Mar. 31, 2019USD ($)$ / bbl | |
Property, Plant and Equipment [Line Items] | ||
Inventory impairment | $ 3,904,000 | $ 0 |
Goodwill impairment | $ 102,581,000 | $ 0 |
Crude Oil and NGL | ||
Property, Plant and Equipment [Line Items] | ||
Average Brent price per barrel (in USD per barrel) | $ / bbl | 67.49 | 70.64 |
Debt and Debt Issuance Costs -
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (20,237,000) | $ (21,081,000) |
Long-term debt | 783,763,000 | 696,919,000 |
Long-term debt excluding current maturity | $ 786,593,000 | 700,459,000 |
Senior notes | 6.25% Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.25% | |
Convertible senior notes and revolving credit facility | $ 300,000,000 | 300,000,000 |
Senior notes | 7.75% Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.75% | |
Convertible senior notes and revolving credit facility | $ 300,000,000 | 300,000,000 |
Revolving credit facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Convertible senior notes and revolving credit facility | 204,000,000 | 118,000,000 |
Lease obligations | ||
Debt Instrument [Line Items] | ||
Long-term lease obligation | 2,830,000 | 3,540,000 |
Lease obligations | Accounts payable | ||
Debt Instrument [Line Items] | ||
Current portion of lease obligation | $ 2,600,000 | $ 3,300,000 |
Debt and Debt Issuance Costs _2
Debt and Debt Issuance Costs - Schedule of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Contractual interest and other financing expenses | $ 11,966 | $ 7,100 |
Amortization of debt issuance costs | 844 | 838 |
Total interest expense recognized | $ 12,810 | $ 7,938 |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) - shares | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Increase (Decrease) in Common Stock | |||
Common Stock, shares outstanding (in shares) | 366,981,556 | 366,981,556 | 384,492,732 |
Shares of Common Stock | |||
Increase (Decrease) in Common Stock | |||
Common Stock, shares outstanding (in shares) | 366,981,556 |
Share Capital - Schedule of PSU
Share Capital - Schedule of PSU, DSU, RSU and Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Outstanding Stock Options | |
Beginning Balance (in shares) | 10,612,872 |
Granted (in shares) | 7,735,674 |
Exercised (in shares) | 0 |
Forfeited (in shares) | (512,696) |
Expired (in shares) | (209,970) |
Ending Balance (in shares) | 17,625,880 |
Weighted Average Exercise Price/Stock Option ($) | |
Beginning balance (in dollars per share) | $ / shares | $ 2.78 |
Granted (in dollars per share) | $ / shares | 0.75 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 2.16 |
Expired (in dollars per share) | $ / shares | 4.68 |
Ending balance (in dollars per share) | $ / shares | $ 1.89 |
PSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 11,371,367 |
Granted (in shares) | 14,440,342 |
Exercised (in shares) | (2,745,799) |
Forfeited (in shares) | (330,699) |
Expired (in shares) | 0 |
Ending Balance (in shares) | 22,735,211 |
DSUs | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 1,251,994 |
Granted (in shares) | 197,707 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Ending Balance (in shares) | 1,449,701 |
Share Capital - Equity Compensa
Share Capital - Equity Compensation Awards (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ (2.1) | $ 1.7 | |
Unrecognized compensation cost | $ 7.4 | $ 6.7 | |
Weighted average period for recognition | 2 years 2 months 12 days | ||
PSUs | Vested Three Months 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payments for units vested in period | $ 3.2 | ||
PSUs | Vested Three Months 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payments for units vested in period | $ 10.2 |
Share Capital - Schedule of Wei
Share Capital - Schedule of Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average number of common shares outstanding (in shares) | 366,981,556 | 386,930,323 | |
Shares issuable pursuant to stock options (in shares) | 0 | 333,028 | |
Shares assumed to be purchased from proceeds of stock options (in shares) | 0 | (317,669) | |
Weighted average number of diluted common shares outstanding (in shares) | 366,981,556 | 386,945,682 | |
Common shares outstanding, as at period end (in shares) | 366,981,556 | 384,492,732 | 366,981,556 |
Share Capital - Weighted Averag
Share Capital - Weighted Average Shares Outstanding (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Options | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Options excluded from diluted income (loss) per share calculation (in shares) | 10,284,152 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
Variable adjustment for transportation, location, quality, and other elements, percentage | (25.00%) | (17.00%) | |
Accrued sales revenue | $ 0.7 | $ 0.1 | |
Product Concentration Risk | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Effective tax rate | (16.00%) | 91.00% |
Deferred tax expense | $ 34,606 | $ 8,323 |
Percent of non-deductible portion of unrealized losses | 50.00% | |
Colombia | ||
Income Tax Contingency [Line Items] | ||
Effective tax rate | 32.00% | 33.00% |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit and other credit support provided | $ 135.4 | $ 120.6 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Narrative (Details) $ in Thousands, shares in Millions | Mar. 31, 2020USD ($)shares | Mar. 31, 2020$ / shares | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, fair value | $ 26,020 | $ 94,741 | |
Senior notes | 6.25% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate | 6.25% | ||
Senior notes | 7.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate | 7.75% | ||
Fair value | Senior notes | 6.25% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument, fair value disclosure | $ 80,000 | ||
Fair value | Senior notes | 7.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument, fair value disclosure | 71,700 | ||
Carrying amount | Senior notes | 6.25% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument, fair value disclosure | 291,100 | ||
Carrying amount | Senior notes | 7.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument, fair value disclosure | 290,100 | ||
PetroTal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, fair value | $ 26,000 | ||
Closing share price (in dollars per share) | $ / shares | $ 0.15 | ||
PetroTal | Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment owned, balance (in shares) | shares | 246 | ||
Investment owned, percent of total shares | 37.00% |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Schedule of Fair Value of Derivatives and RSU, PSU and DSU Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment | $ 26,020 | $ 94,741 |
Derivative asset (1) | 17,923 | 0 |
Assets, fair value disclosure | 43,943 | 94,741 |
Derivative liability | 5,444 | 775 |
PSU and DSU liability (2) | 1,231 | 7,859 |
Liabilities, fair value disclosure | 6,675 | $ 8,634 |
Other Current Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
PSU and DSU liability (2) | $ 400 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurement - Schedule of Gains or Losses on Financial Instruments Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Investment loss | $ (65,285) | $ (1,971) |
Financial instruments loss | 52,418 | 3,165 |
Commodity price derivative (gain) loss | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative (gain) loss | (18,319) | 1,194 |
Foreign currency derivatives loss | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative (gain) loss | $ 5,452 | $ 0 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurement - Schedule of Commodity Price Derivative Positions and Commodity Foreign Currency Contracts (Details) - Forecast - Commodity Hedge | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Jun. 30, 2020$ / collar$ / bblbbl | Dec. 31, 2020$ / collar$ / bblbbl | Dec. 31, 2020$ / collar$ / bblbbl | |
Collars: April 1, to June 30, 2020 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Volume (in barrels of oil per day) | bbl | 6,000 | ||
Collars: April 1, to June 30, 2020 | Sold | Call | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Cap Price | 69.05 | ||
Collars: April 1, to June 30, 2020 | Purchased | Put | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Floor price (in dollars per barrel) | $ / bbl | 55 | ||
Collars: April 1, to December 31, 2020 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Volume (in barrels of oil per day) | bbl | 4,000 | ||
Collars: April 1, to December 31, 2020 | Sold | Put | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Cap Price | 25 | 25 | |
Collars: April 1, to December 31, 2020 | Sold | Call | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Cap Price | 37.72 | 37.72 | |
Collars: April 1, to December 31, 2020 | Purchased | Put | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Floor price (in dollars per barrel) | $ / bbl | 35 | 35 | |
Collars: April 1, to December 31, 2020 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Volume (in barrels of oil per day) | bbl | 3,000 | ||
Collars: April 1, to December 31, 2020 | Sold | Put | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Cap Price | 25 | 25 | |
Collars: April 1, to December 31, 2020 | Sold | Call | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Cap Price | 44.25 | 44.25 | |
Collars: April 1, to December 31, 2020 | Purchased | Put | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Floor price (in dollars per barrel) | $ / bbl | 35 | 35 | |
Collars: April 1, to December 31, 2020 | Purchased | Call | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Premium Paid | $ / bbl | 1 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurement - Schedule of Outstanding Foreign Currency Derivative Positions (Details) - Forecast - Collars: April 1, to December 31, 2020 $ in Thousands, $ in Thousands | Dec. 31, 2020COP ($)$ / collar | Dec. 31, 2020USD ($)$ / collar |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount hedged | $ 110,250 | $ 27,192 |
Sold | Put | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Floor Price (COP, Weighted Average) | 3,306 | 3,306 |
Purchased | Call | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cap Price (COP, Weighted Average) | 3,425 | 3,425 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 39,346 | $ 8,301 | $ 32,740 | $ 51,040 |
Restricted cash and cash equivalents - current | 421 | 516 | 1,118 | 1,269 |
Restricted cash and cash equivalents - long-term (included in other long-term assets) | 1,995 | 2,258 | 2,266 | 1,999 |
Cash, cash equivalents and restricted cash and cash equivalents | $ 41,762 | $ 11,075 | $ 36,124 | $ 54,308 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable and other long-term assets | $ 29,577 | $ (18,011) |
Derivatives | (3,873) | (796) |
Inventory | (1,473) | (1,749) |
Prepaids | 15 | 551 |
Accounts payable and accrued and other long-term liabilities | (32,283) | 6,456 |
Taxes receivable and payable | (8,665) | (16,401) |
Net changes in assets and liabilities from operating activities | $ (16,702) | $ (29,950) |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for income taxes | $ 5,208 | $ 15,500 |
Cash paid for interest | 10,752 | 10,063 |
Non-cash investing activities: | ||
Net liabilities related to property, plant and equipment, end of period | $ 59,503 | $ 83,038 |