Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 16, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 500 Centre Street S.E. | ||
Entity Address, City or Town | Calgary, | ||
Entity Address, State or Province | AB | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | T2G 1A6 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 414.4 | ||
Entity Common Stock, Shares Outstanding | 346,151,157 | ||
Documents Incorporated by Reference | The information required by Part III of this report, to the extent not set forth herein, is incorporated by reference from the registrant’s definitive proxy statement relating to the 2023 annual meeting of stockholders, which definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days after December 31, 2022. | ||
Entity Central Index Key | 0001273441 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Calgary, Canada |
Auditor Firm ID | 85 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
OIL SALES (NOTE 11) | $ 711,388 | $ 473,722 | $ 237,838 |
EXPENSES | |||
Operating | 162,385 | 135,722 | 114,371 |
Transportation | 10,197 | 11,618 | 10,739 |
Depletion, depreciation and accretion (Note 5 and 10) | 180,280 | 139,874 | 164,233 |
Goodwill impairment (Note 6) | 0 | 0 | 102,581 |
Asset impairment (Note 6) | 0 | 0 | 564,495 |
General and administrative | 40,957 | 36,263 | 25,350 |
Foreign exchange loss | 2,578 | 20,477 | 4,184 |
Derivative instruments loss (Note 14) | 26,611 | 48,838 | 2,935 |
Other financial instruments (gain) loss (Note 14) | (7) | 3,369 | 48,047 |
Interest expense (Note 8) | 46,493 | 54,381 | 54,140 |
TOTAL EXPENSES | 469,494 | 450,542 | 1,091,075 |
OTHER GAIN (LOSS) | 2,598 | (44) | (469) |
INTEREST INCOME | 443 | 0 | 345 |
INCOME (LOSS) BEFORE INCOME TAXES | 244,935 | 23,136 | (853,361) |
INCOME TAX EXPENSE (RECOVERY) | |||
Current (Note 12) | 80,566 | 4,479 | 754 |
Deferred (Note 12) | 25,340 | (23,825) | (76,148) |
Total income tax expense (recovery) | 105,906 | (19,346) | (75,394) |
NET AND COMPREHENSIVE INCOME (LOSS) | $ 139,029 | $ 42,482 | $ (777,967) |
NET INCOME (LOSS) PER SHARE | |||
Basic (in dollars per share) | $ 0.38 | $ 0.12 | $ (2.12) |
Diluted (in dollars per share) | $ 0.38 | $ 0.12 | $ (2.12) |
Weighted average shares outstanding - basic (in shares) | 364,455,456 | 367,022,903 | 366,981,556 |
Weighted average shares outstanding - diluted (in shares) | 369,280,097 | 367,873,389 | 366,981,556 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 126,873 | $ 26,109 |
Restricted cash and cash equivalents (Note 10) | 1,142 | 392 |
Accounts receivable (Note 3) | 10,706 | 13,185 |
Taxes receivable (Note 4) | 54 | 45,506 |
Other current assets | 29,812 | 16,609 |
Total Current Assets | 168,587 | 101,801 |
Oil and Gas Properties (using the full cost method of accounting) | ||
Proved | 1,000,424 | 859,580 |
Unproved | 74,471 | 131,865 |
Total Oil and Gas Properties | 1,074,895 | 991,445 |
Other capital assets | 26,007 | 4,352 |
Total Property, Plant and Equipment (Note 5) | 1,100,902 | 995,797 |
Other Long-Term Assets | ||
Taxes receivable (Note 4) | 27,796 | 17,522 |
Deferred tax assets (Note 12) | 22,990 | 61,494 |
Other long-term assets | 15,335 | 12,497 |
Total Other Long-Term Assets | 66,121 | 91,513 |
Total Assets | 1,335,610 | 1,189,111 |
Current Liabilities | ||
Accounts payable and accrued liabilities (Note 7) | 167,579 | 148,694 |
Current portion of long-term debt (Note 8) | 0 | 66,987 |
Derivatives (Note 14) | 0 | 2,976 |
Taxes payable (Note 4) | 58,978 | 6,620 |
Equity compensation award liability (Note 9 and 14) | 15,082 | 2,710 |
Total Current Liabilities | 241,639 | 227,987 |
Long-Term Liabilities | ||
Long-term debt (Note 8) | 589,593 | 587,404 |
Deferred tax liabilities (Note 12) | 28 | 0 |
Asset retirement obligation (Note 10) | 63,358 | 54,525 |
Equity compensation award liabilities (Note 9 and 14) | 16,437 | 13,718 |
Other long-term liabilities | 6,989 | 3,397 |
Total Long-Term Liabilities | 676,405 | 659,044 |
Commitments and Contingencies (Note 13) | ||
Shareholders’ Equity | ||
Common Stock (Note 9) (368,898,619 and 367,144,500 issued, 346,151,157 and 367,144,500 outstanding shares of Common Stock, par value $0.001 per share, issued and outstanding as at December 31, 2022, and December 31, 2021, respectively) | 10,272 | 10,270 |
Additional paid in capital | 1,291,354 | 1,287,582 |
Treasury stock (Note 9) | (27,317) | 0 |
Deficit | (856,743) | (995,772) |
Total Shareholders’ Equity | 417,566 | 302,080 |
Total Liabilities and Shareholders’ Equity | $ 1,335,610 | $ 1,189,111 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 368,898,619 | 367,144,500 |
Common shares, outstanding (in shares) | 346,151,157 | 367,144,500 |
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net income (loss) | $ 139,029,000 | $ 42,482,000 | $ (777,967,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depletion, depreciation and accretion (Note 5 and 10) | 180,280,000 | 139,874,000 | 164,233,000 |
Goodwill impairment (Note 6) | 0 | 0 | 102,581,000 |
Asset impairment (Note 6) | 0 | 0 | 564,495,000 |
Deferred tax expense (recovery) (Note 12) | 25,340,000 | (23,825,000) | (76,148,000) |
Stock-based compensation expense (Note 9) | 9,049,000 | 8,396,000 | 1,216,000 |
Amortization of debt issuance costs (Note 8) | 3,528,000 | 3,809,000 | 3,625,000 |
Non-cash lease expenses | 2,818,000 | 1,667,000 | 1,951,000 |
Lease payments | (1,666,000) | (1,621,000) | (1,926,000) |
Unrealized foreign exchange loss | 10,251,000 | 21,879,000 | 5,271,000 |
Derivative instruments loss (Note 14) | 26,611,000 | 48,838,000 | 2,935,000 |
Cash settlement on derivatives instruments (Note 14) | (26,611,000) | (58,427,000) | 4,874,000 |
Other financial instruments (gain) loss (Note 14) | (7,000) | 3,369,000 | 48,047,000 |
Cash settlement of asset retirement obligation (Note 10) | (2,630,000) | (805,000) | (201,000) |
Other non-cash (gain) loss | (2,598,000) | 44,000 | 2,026,000 |
Net change in assets and liabilities from operating activities (Note 15) | 64,317,000 | 59,154,000 | 36,062,000 |
Net cash provided by operating activities | 427,711,000 | 244,834,000 | 81,074,000 |
Investing Activities | |||
Additions to property, plant and equipment (Note 5) | (236,604,000) | (149,879,000) | (96,281,000) |
Proceeds on disposition of investment, net of transaction costs (Note 14) | 0 | 43,126,000 | 0 |
Changes in non-cash investing working capital | 26,273,000 | 1,431,000 | (48,642,000) |
Net cash used in investing activities | (210,331,000) | (105,322,000) | (144,923,000) |
Financing Activities | |||
Re-purchase of Senior Notes (Note 8) | (17,274,000) | 0 | 0 |
Proceeds from bank debt, net of issuance costs | 0 | 88,332,000 | |
Proceeds from bank debt, net of issuance costs | (228,000) | ||
Repayment of debt | (67,803,000) | (122,500,000) | (17,000,000) |
Lease payments | (2,228,000) | (2,182,000) | (879,000) |
Proceeds from issuance of Common Stock, net of issuance costs (Note 9) | 2,000 | 0 | 0 |
Proceeds from exercise of stock options (Note 9) | 1,298,000 | 100,000 | 0 |
Re-purchase of shares of Common Stock (Note 9) | (27,317,000) | 0 | 0 |
Net cash (used in) provided by financing activities | (113,322,000) | (124,810,000) | 70,453,000 |
Foreign exchange loss on cash and cash equivalents and restricted cash and cash equivalents | (2,104,000) | (821,000) | (156,000) |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 101,954,000 | 13,881,000 | 6,448,000 |
Cash and cash equivalents and restricted cash and cash equivalents, beginning of year (Note 15) | 31,404,000 | 17,523,000 | 11,075,000 |
Cash and cash equivalents and restricted cash and cash equivalents, end of year (Note 15) | $ 133,358,000 | $ 31,404,000 | $ 17,523,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Share Capital | Additional Paid in Capital | Treasury Stock | Deficit |
Balance, beginning of year at Dec. 31, 2019 | $ 10,270 | $ 1,282,627 | $ 0 | $ (260,287) | |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of shares of Common Stock, net of issuance costs (Note 9) | 0 | ||||
Exercise of stock options (Note 9) | 0 | ||||
Stock-based compensation (Note 9) | 2,391 | ||||
Re-purchase of shares of Common Stock (Note 9) | 0 | ||||
Net income (loss) | $ (777,967) | (777,967) | |||
Balance, end of year at Dec. 31, 2020 | 257,034 | 10,270 | 1,285,018 | 0 | (1,038,254) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of shares of Common Stock, net of issuance costs (Note 9) | 0 | ||||
Exercise of stock options (Note 9) | 100 | ||||
Stock-based compensation (Note 9) | 2,464 | ||||
Re-purchase of shares of Common Stock (Note 9) | 0 | ||||
Net income (loss) | 42,482 | 42,482 | |||
Balance, end of year at Dec. 31, 2021 | 302,080 | 10,270 | 1,287,582 | 0 | (995,772) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of shares of Common Stock, net of issuance costs (Note 9) | 2 | ||||
Exercise of stock options (Note 9) | 1,298 | ||||
Stock-based compensation (Note 9) | 2,474 | ||||
Re-purchase of shares of Common Stock (Note 9) | (27,317) | ||||
Net income (loss) | 139,029 | 139,029 | |||
Balance, end of year at Dec. 31, 2022 | $ 417,566 | $ 10,272 | $ 1,291,354 | $ (27,317) | $ (856,743) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Gran Tierra Energy Inc., a Delaware corporation (the “Company” or “Gran Tierra”), is a publicly traded company focused on international oil and natural gas exploration and production with assets currently in Colombia and Ecuador. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The consolidated financial statements have been prepared in accordance with GAAP. Significant accounting policies are: Basis of Consolidation These consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimated proved and probable reserves volumes and the related cash flows are determined by the independent reservoir engineering specialists and used in several of the estimates made by management in preparing these financial statements. Numerous estimates are required to be made in the reserve report, including forecasted production, forecasted operating royalty, capital cost assumptions, and in certain cases forecasted commodity prices. Significant estimates made by management include: depreciation, depletion, amortization (“DD&A”) and impairment of proved oil and gas properties; timing of transfers from oil and gas properties not subject to depletion to the depletable base; asset retirement obligations; determining the value of the consideration transferred and the net identifiable assets acquired and liabilities assumed in connection with business combinations and determining goodwill; assessments of the likely outcome of legal and other contingencies; income taxes; stock-based compensation; and determining the fair value of derivatives. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates, and actual results may differ from these estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents are comprised of cash and cash equivalents pledged to secure letters of credit and to settle asset retirement obligations. Letters of credit currently secured by cash relate to work commitment guarantees contained in exploration contracts. Restrictions will lapse when work obligations are satisfied pursuant to the exploration contract or an asset retirement obligation is settled. Cash and claims to cash that are restricted as to withdrawal or use for other than current operations, or are designated for expenditure in the acquisition or construction of long-term assets are excluded from the current asset classification. The long-term portion of restricted cash and cash equivalents is included in other long-term assets on the Company’s balance sheet. Allowance for Doubtful Accounts 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 prior to the period-end 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 that affect the ability of the customers to settle the receivables. Trade receivables are written off when there is no reasonable expectation of recovery. Prepaid Equity Forwards The Company is exposed to equity price risk in relation to its long-term incentive plans. The Company utilizes prepaid equity forwards (“PEF”) on the equivalent number of the Company’s common shares in order to fix the future settlement cost on a portion of its cash-settled long-term incentive plans. PEF is recorded in other current and long-term assets on the Company’s balance sheet at fair value, with changes in fair value recognized as G&A expense in the consolidated statements of operations. The Company utilizes PEF to manage equity price risk in relation to its long-term incentive plans. Derivatives The Company records derivative instruments on its balance sheet at fair value as either an asset or liability with changes in fair value recognized in the consolidated statements of operations as financial instruments gains or losses. While the Company utilizes derivative instruments to manage the price risk attributable to its expected oil production and foreign exchange risk, it has elected not to designate its derivative instruments as accounting hedges under the accounting guidance. Inventory Inventory consists of oil in tanks and third party pipelines and supplies and is valued at the lower of cost and net realizable value. The cost of inventory is determined using the weighted average method. Oil inventories include expenditures incurred to produce, upgrade and transport the product to the storage facilities and include operating, depletion and depreciation expenses, and royalties. Income Taxes Income taxes are recognized using the liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax base, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are provided if, after considering the available evidence, it is not more likely than not that some or all of the deferred tax assets will be realized. The tax benefit from an uncertain tax position is recognized when it is more likely than not, based on the technical merits of the position, that the position will be sustained on examination by the taxing authorities. Additionally, the amount of the tax benefit recognized is the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The Company recognizes potential penalties and interest related to unrecognized tax benefits as a component of income tax expense. Oil and Gas Properties The Company uses the full cost method of accounting for its investment in oil and natural gas properties as defined by the Securities and Exchange Commission (“SEC”). Under this method, the Company capitalizes all acquisition, exploration, and development costs incurred for the purpose of finding oil and natural gas reserves, including salaries, benefits, and other internal costs directly attributable to these activities. Costs associated with production and general corporate activities; are expensed as incurred. Separate cost centers are maintained for each country in which the Company incurs costs. The Company computes depletion of oil and natural gas properties on a quarterly basis using the unit-of-production method based upon production and estimates of proved reserve quantities. Future development costs related to properties with proved reserves are also included in the amortization base for the computation of depletion. The costs of unproved properties are excluded from the amortization base until the properties are evaluated. The cost of exploratory dry wells is transferred to proved properties and thus is subject to amortization immediately upon determination that a well is dry in those countries where proved reserves exist. The Company performs a ceiling test calculation each quarter in accordance with SEC Regulation S-X Rule 4-10. In performing its quarterly ceiling test, the Company limits, on a country-by-country basis, the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes, to the estimated future net cash flows from proved oil and natural gas reserves discounted at 10%, net of related tax effects, plus the lower of cost or fair value of unproved properties included in the costs being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to net income or loss. Any such write-down will reduce earnings in the period of occurrence and result in a lower DD&A rate in future periods. A write-down may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the ceiling. The Company calculates future net cash flows by applying the unweighted average of prices in effect on the first day of the month for the preceding 12-month period, adjusted for location and quality differentials. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. Unproved properties are not depleted pending the determination of the existence of proved reserves. Costs are transferred into the depletable base on an ongoing basis as the properties are evaluated, proved reserves are established, or impairment is determined. Unproved properties are evaluated quarterly to ascertain whether impairment has occurred. This evaluation considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, and activity, remaining time in the commitment period, remaining capital plans, and political, economic, and market conditions. During any period in which factors indicate impairment, the cumulative costs incurred to date for such property are transferred to the full cost pool and subject to depletion. For countries where a reserve base has not yet been established, the impairment is charged to earnings. In exploration areas, related seismic costs are capitalized in unproved property and evaluated as part of the total capitalized costs associated with a property. Seismic costs related to development projects are recorded in proved properties and therefore subject to depletion as incurred. Gains and losses on the sale or other disposition of oil and natural gas properties are not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. Asset Retirement Obligation The Company records an estimated liability for future costs associated with the abandonment of its oil and gas properties, including the costs of reclamation of drilling sites. The Company records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred with an offsetting increase to the related oil and gas properties. 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. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. The accretion of the asset retirement obligation and amortization of the asset retirement cost is included in DD&A. If estimated future costs of an asset retirement obligation change, an adjustment is recorded to both the asset retirement obligation and oil and gas properties. Revisions to the estimated asset retirement obligation can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment. Other Capital Assets Other capital assets, including additions and replacements, are recorded at cost upon acquisition and include furniture, fixtures, leasehold improvement, computer equipment, automobiles and right-of-use assets for operating and finance leases. Depreciation for furniture and fixtures, computer equipment, and automobiles is provided using the straight-line method over the useful life of the asset. Leasehold improvements and right-of-use assets for operating and finance leases are depreciated on a straight-line basis over the shorter of the estimated useful life and the term of the related lease. The cost of repairs and maintenance is charged to expenses as incurred. Leases At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the inception of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company has applied judgment to determine the lease term for contracts which include renewal or termination options. The assessment of whether the Company is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. Revenue from Contracts with Customers The Company recognizes revenue when it transfers control of the product to a customer. This generally occurs at the time the customer obtains legal title to the product and when it is physically transferred to the delivery point agreed with the customer. Revenue is recognized based on the consideration specified in contracts with customers. Revenue represents the Company's share and is recorded net of royalty payments to governments and other mineral interest owners. The Company evaluates its arrangement with third parties and partners to determine if the Company acts as a principal or an agent. In making this evaluation, management considers if the Company obtains control of the product delivered, which is indicated by the Company having the primary responsibility for the delivery of the product, having the ability to establish prices, or having inventory risk. If the Company acts in the capacity of an agent rather than as a principal in the transaction, then the revenue is recognized on a net basis, only reflecting the fee realized by the Company from the transaction. Tariffs, tolls, and fees charged to other entities for the use of pipelines owned by the Company are evaluated by management to determine if these originate from contracts with customers or from incidental arrangements. When determining if the Company acted as a principal or an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considers criteria for revenue recognition set out in Accounting Standard Codification (“ASC”) 606. Stock-based Compensation The Company records stock-based compensation expense in its consolidated financial statements measured at fair value of the awards that are ultimately expected to vest. Fair values are determined using pricing models such as the Black-Scholes-Merton or Monte Carlo simulation stock option-pricing models and/or observable share prices. For equity-settled stock-based compensation awards, fair values are determined at the grant date, and the expense, net of estimated forfeitures, is recognized using the accelerated method over the requisite service period. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures. For cash-settled stock-based compensation awards, fair values are determined at each reporting date, and periodic changes are recognized as compensation costs, with a corresponding change to liabilities. The Company uses historical data to estimate the expected term used in the Black-Scholes option pricing model, option exercises, and employee departure behavior. Expected volatilities used in the fair value estimate are based on the historical volatility of the Company’s shares. The risk-free rate for periods within the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. Stock-based compensation expense is capitalized as part of oil and natural gas properties or expensed as part of G&A or operating expenses, as appropriate. Foreign Currency Translation The functional currency of the Company, including its subsidiaries, is the U.S. dollar. Monetary items are translated into the reporting currency at the exchange rate in effect at the balance sheet date, and non-monetary items are translated at historical exchange rates. Revenue and expense items are translated in a manner that produces substantially the same reporting currency amounts that would have resulted had the underlying transactions been translated on the dates they occurred. DD&A expense on assets is translated at the historical exchange rates similar to the assets to which they relate. Gains and losses resulting from foreign currency transactions, which are transactions denominated in a currency other than the entity’s functional currency, are recognized in net income or loss. Earnings (Loss) per Share Basic earnings (loss) per share is calculated by dividing net income or loss attributable to common shareholders by the weighted average number of shares of Common Stock issued and outstanding during each period. Diluted net income per share is calculated by adjusting the weighted average number of shares of Common Stock outstanding for the dilutive effect, if any, of share equivalents. The Company uses the treasury stock method to determine the dilutive effect. This method assumes that all Common Stock equivalents have been exercised at the beginning of the period (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase shares of Common Stock of the Company at the volume weighted average trading price of shares of Common Stock during the period. Risks and Measurement Uncertainty The impacts of the Covid-19 pandemic and the recovery therefrom coupled with several factors including higher levels of uncertainty due to the Russian invasion of Ukraine, volatility in energy markets, rising interest and inflation rates and constrained supply chains have created a higher level of volatility and uncertainty. Management has, to the reasonable extent, incorporated known facts and circumstances into the estimates made, however, the increased levels of uncertainly and volatility making accounting estimates more judgmental and the actual results could differ materially from estimates. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable As at December 31, (Thousands of U.S. Dollars) 2022 2021 Trade $ 5,601 $ 9,193 Other 5,105 3,992 Total Accounts Receivable $ 10,706 $ 13,185 |
Taxes Receivable (Payable)
Taxes Receivable (Payable) | 12 Months Ended |
Dec. 31, 2022 | |
Tax Receivable Agreement [Abstract] | |
Taxes Receivable (Payable) | Taxes Receivable (Payable) The table below shows the break-down of taxes receivable and payable, comprised of value added tax (“VAT”) and income tax: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 Taxes Receivable Current VAT Receivable $ 54 $ 21,918 Income Tax Receivable — 23,588 $ 54 $ 45,506 Long-Term Income Tax Receivable 27,796 17,522 $ 27,796 $ 17,522 Taxes Payable Current VAT Payable $ (11,784) $ (6,620) Income Tax Payable $ (47,194) $ — $ (58,978) $ (6,620) Total Taxes (Payable) Receivable $ (31,128) $ 56,408 The following table shows the movement of VAT and income tax receivable and payable for the past two years: (Thousands of U.S. Dollars) VAT Receivable (Payable) Income Tax Receivable (Payable) Total Taxes Receivable (Payable) Balance, December 31, 2020 $ 64,462 $ 28,098 $ 92,560 Collected through direct government refunds (604) (14,228) (14,832) Collected through sales contracts (105,858) — (105,858) Taxes paid 63,792 36,352 100,144 Current tax expense — (4,479) (4,479) Foreign exchange loss (6,494) (4,633) (11,127) Balance, December 31, 2021 $ 15,298 $ 41,110 $ 56,408 Collected through direct government refunds (448) (15,956) (16,404) Collected through sales contracts (157,117) — (157,117) Taxes paid 130,716 37,052 167,768 Current tax expense — (80,566) (80,566) Foreign exchange loss (179) (1,038) (1,217) Balance, December 31, 2022 $ (11,730) $ (19,398) $ (31,128) |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As at December 31, (Thousands of U.S. Dollars) 2022 2021 Oil and natural gas properties Proved $ 4,617,804 $ 4,302,473 Unproved 74,471 131,865 4,692,275 4,434,338 Other (1) 61,386 34,943 4,753,661 4,469,281 Accumulated depletion, depreciation and impairment (3,652,759) (3,473,484) $ 1,100,902 $ 995,797 (1) The “other” category includes $38.9 million right-of-use assets for operating and finance leases which had a net book value of $24.6 million as at December 31, 2022 (December 31, 2021 - $13.9 million which had a net book value of $3.9 million). During the year ended December 31, 2022, the Company entered into various lease contracts related to office lease, generators and polymer injection equipment and capitalized $24.8 million right-of-use assets related to those contracts. Depletion and depreciation expense on property, plant and equipment for the year ended December 31, 2022, was $175.8 million (2021 - $135.7 million; 2020 - $160.8 million). A portion of depletion and depreciation expense was recorded as oil inventory in each year. Unproved Oil and Natural Gas Properties At December 31, 2022, unproved oil and natural gas properties consist of exploration lands held in Colombia and Ecuador. Unproved oil and natural gas properties are being held for their exploration value and are not being depleted pending determination of the existence of proved reserves. Gran Tierra will continue to assess the unproved properties over the next several years as proved reserves are established and as exploration warrants whether or not future areas will be developed. The Company expects that approximately 100% of costs not subject to depletion at December 31, 2022, will be transferred to the depletable base within the next five years. The following is a summary of Gran Tierra’s oil and natural gas properties not subject to depletion as at December 31, 2022: Costs Incurred in (Thousands of U.S. Dollars) 2022 2021 2020 Prior to 2020 Total Acquisition costs - Colombia $ — $ — $ — $ 10,268 $ 10,268 Exploration costs - Colombia 5,814 1,728 9,495 43,925 60,962 Exploration costs - Ecuador 3,106 2 — 133 3,241 $ 8,920 $ 1,730 $ 9,495 $ 54,326 $ 74,471 |
Impairment
Impairment | 12 Months Ended |
Dec. 31, 2022 | |
Impairment Disclosure [Abstract] | |
Impairment | Impairment Asset Impairment The Company did not have any impairment losses during the years ended December 31, 2022 and 2021, respectively. The Company recorded impairment of oil and gas assets of $560.3 million and impairment of inventory of $4.2 million for the year ended December 31, 2020. (i) Oil and gas property impairment For the years ended December 31, 2022 and 2021, the Company had no ceiling test impairment losses. For the year ended December 31, 2020, the Company recorded $560.3 million of ceiling test impairment losses. The Company follows the full cost method of accounting for its oil and gas properties. Under this method, the net book value of properties on a country-by-country basis, less related deferred income taxes, may not exceed a calculated “ceiling”. The ceiling is the estimated after-tax future net revenues from proved oil and gas properties, discounted at 10% per year. In calculating discounted future net revenues, oil and natural gas prices are determined using the average price for the 12 months prior to the ending date of the period covered by the balance sheet, calculated as an unweighted arithmetic average of the first day-of-the month price for each month within such period. That average price is then held constant, except for fixed and determinable changes by existing contracts. Therefore, ceiling test estimates are based on historical prices discounted at 10% per year, and should not be assumed that estimates of future net revenues represent the fair market value of the Company’s reserves. In accordance with GAAP, Gran Tierra used an average Brent price of $97.98 p er bbl for of the December 31, 2022 ceiling test calculations (December 31, 2021, and 2020 - $68.92 and $43.43 per bbl, respectively). The Company has considered the impact of the evolving worldwide demand for energy and global advancement of alternative sources of energy that are not sourced from fossil fuels in the ceiling test impairment assessment on oil and gas properties. The estimated ceiling amount of the Company’s oil and gas properties was based on proved reserves, the life of which is generally less than 16 years. The ultimate period in which global energy markets can transition from carbon based sources to alternative energy is highly uncertain. However, the majority of the cash flows associated with proved reserves per the 2022 reserve report should be realized prior to the potential elimination of carbon-based energy. At December 31, 2022, a specific adjustment to the discount rate used in the ceiling test to account for the risk of the evolving demand for energy is not permitted as under the full cost accounting the 10% discount rate is prescribed. (ii) Inventory impairment For the years ended December 31, 2022 and 2021, the Company had no inventory impairment losses. For the year ended December 31, 2020, there were inventory impairment losses of $4.2 million due to the decline in commodity pricing. Goodwill impairment |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 Trade $ 114,263 $ 91,101 Royalties 2,760 14,761 Employee compensation 3,051 4,382 Other 47,505 38,450 $ 167,579 $ 148,694 |
Debt and Debt Issuance Costs
Debt and Debt Issuance Costs | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Debt Issuance Costs | Debt and Debt Issuance Costs The Company’s debt at December 31, 2022 and 2021, was as follows: As at December 31, (Thousands of U.S. Dollars) 2022 2021 Current Revolving credit facility $ — $ 67,500 Unamortized debt issuance costs — (513) Current portion of long-term debt $ — $ 66,987 Long Term 6.25% Senior Notes $ 279,909 $ 300,000 7.75% Senior Notes 300,000 300,000 Unamortized debt issuance costs (1) (10,992) (14,030) Long-term lease obligation (2) 20,676 1,434 Long-term debt $ 589,593 $ 587,404 Total Debt $ 589,593 $ 654,391 (1) Includes $0.3 million of unamortized deferred financing fees related to credit facility (2) The current portion of the lease obligation has been included in accounts payable and accrued liabilities and totaled $4.8 million as at December 31, 2022 (December 31, 2021 - $3.3 million). Senior Notes At December 31, 2022, the Company had $300.0 million of 7.75% Senior Notes due 2027 (the “7.75% Senior Notes”) and $279.9 million of 6.25% Senior Notes due 2025 (the “6.25% Senior Notes” and, together with the 7.75% Senior Notes, the “Senior Notes”). The 7.75% Senior Notes bear interest at a rate of 7.75% per year, payable semi-annually in arrears on May 23 and November 23 of each year, beginning on November 23, 2019. The 7.75% Senior Notes will mature on May 23, 2027, unless earlier redeemed or re-purchased. Before May 23, 2023, the Company may, at its option, redeem all or a portion of the 7.75% Senior Notes at 100% of the principal amount plus accrued and unpaid interest and a “make-whole” premium. Thereafter, the Company may redeem all or a portion of the 7.75% Senior Notes plus accrued and unpaid interest applicable to the date of the redemption at the following redemption prices: 2023 - 103.875%; 2024 - 101.938%; 2025 and thereafter - 100%. The 6.25% Senior Notes bear interest at a rate of 6.25% per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2018. The 6.25% Senior Notes will mature on February 15, 2025, unless earlier redeemed or re-purchased. The Company may redeem all or a portion of the 6.25% Senior Notes plus accrued and unpaid interest applicable to the date of the redemption at the following redemption prices: 2023 - 101.563%; 2024 and thereafter - 100%. During the year ended December 31, 2022, the Company re-purchased in the open market $20.1 million of 6.25% Senior Notes for cash consideration of $17.3 million, including interest payable of $0.1 million. The re-purchase resulted in a $2.6 million gain, which included the write-off of deferred financing fees of $0.3 million. The re-purchased 6.25% Senior Notes were not cancelled and were held by the Company as treasury bonds as at December 31, 2022. Credit Facility During the year ended December 31, 2022, the Company terminated its prior revolving credit facility agreement and replaced the prior facility with a new credit facility agreement. The credit facility has a borrowing base of up to $150.0 million with $100.0 million as an initial commitment available at December 31, 2022, and an option for an additional $50.0 million upon mutual agreement by the Company and the lender. The credit facility bears interest based on the secured overnight financing rate posted by the Federal Reserve Bank of New York plus a credit margin of 6.00% and a credit-adjusted spread of 0.26%. Undrawn amounts under the credit facility bear interest at 2.10% per annum, based on the amount available. The credit facility is secured by the Company’s Colombian assets and economic rights. It has a final maturity date of August 15, 2024, which may be extended to February 18, 2025, upon the satisfaction of certain conditions. The availability period for the draws is six months commencing from the date of the credit facility being August 18, 2022. As of December 31, 2022, the credit facility remained undrawn. Under the terms of the credit facility, the Company is required to maintain compliance with the following financial covenants: i. Global Coverage Ratio of at least 150% is calculated using the net present value of the consolidated future cash flows of the Company up to the final maturity date discounted at 10% over the outstanding amount on the credit facility at each reporting period. The net present value of the consolidated future cash flows of the Company is required to be based on 80% of the prevailing ICE Brent forward strip. ii. Prepayment Life Coverage Ratio of at least 150% calculated using the estimated aggregate value of commodities to be delivered under the commercial contract from the commencement date to the final maturity date based on 80% of the prevailing ICE Brent forward strip and adjusted for quality and transportation discounts over the outstanding amount on the credit facility including interest and all other costs payable to the lender. i. Liquidity ratio where the Company’s projected sources of cash exceed projected uses of cash by at least 1.15 times in each quarter period included in one year consolidated future cash flows. The future cash flows represent forecasted expected cash flows from operations, less anticipated capital expenditures, and certain other adjustments. The commodity pricing assumption used in this covenant is required to be 90% of the prevailing Brent forward strip for the projected future cash flows. Subsequent to December 31, 2022, the availability period for draws under the credit facility were extended until August 20, 2023. Leases During the year ended December 31, 2022, the Company recorded finance leases for power generators and polymer injection equipment totaling $16.5 million, and one operating office lease of $8.3 million. The finance leases have contractual lives ranging from 2 to 5 years, and were recorded at discount rates ranging from approximately 5.7% to 9.6%. The operating lease has a term of 6.5 years and was measured using incremental borrowing rate of approximately 7.0%. Interest Expense The following table presents the total interest expense recognized in the accompanying consolidated statements of operations: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Contractual interest and other financing expenses $ 42,965 $ 50,572 $ 50,515 Amortization of debt issuance costs 3,528 3,809 3,625 $ 46,493 $ 54,381 $ 54,140 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Share Capital | Share Capital Shares of Common Stock Shares issued and outstanding, December 31, 2020 366,981,556 Options exercised 162,944 Shares issued and outstanding, December 31, 2021 367,144,500 Options exercised 1,754,119 Shares issued, December 31, 2022 368,898,619 Treasury stock (22,747,462) Shares issued and outstanding at December 31, 2022 346,151,157 The Company’s authorized share capital consists of 595 million shares of capital stock, of which 570 million was designated as Common Stock, par value $0.001 per share and 25 million as Preferred Stock, par value $0.001 per share. During the year ended December 31, 2022, the Company implemented a share re-purchase program (the “2022 Program”) through the facilities of the Toronto Stock Exchange (“TSX”) and eligible alternative trading platforms in Canada. Under the 2022 Program, the Company is able to purchase at prevailing market prices up to 36,033,969 shares of Common Stock, representing approximately 10% of the issued and outstanding shares of Common Stock as of August 22, 2022. The 2022 Program will expire on August 31, 2023, or earlier if the 10% share maximum was reached. Re-purchases are subject to the availability of stock, prevailing market conditions, the trading price of the Company’s stock, the Company’s financial performance and other conditions. During the year ended December 31, 2022 the Company re-purchased 22,747,462 shares at a weighted average price of approximately $1.20 per share. The re-purchased shares were held by the Company and were recorded as treasury stock as of December 31, 2022. Equity Compensation Awards The Company has an equity compensation program for its executives, employees, and directors. Executives and employees are given equity compensation grants that vest based on a recipient’s continued employment. In the case of Performance Share Units (“PSUs”), the number of units that vest is dependent upon the achievement of specific key performance measures. Equity based awards consist of 80% of PSUs and 20% of stock options. The Company’s stock-based compensation awards outstanding as at December 31, 2022, include PSUs, deferred share units (“DSUs”), and stock options. In accordance with the 2007 Equity Incentive Plan, as amended, the Company’s Board of Directors is authorized to issue options or other rights to acquire shares of the Company’s Common Stock. On June 27, 2012, the s hareholders of Gran Tierra approved an amendment to the Company’s 2007 Equity Incentive Plan, which increased the Common Stock available for issuance thereunder fro m 23,306,100 shares to 39,806,100 shares. On June 2, 2021, the shareholders of Gran Tierra approved an amendment to the Company’s 2007 Equity Incentive Plan, which increased the Common Stock available for issuance thereunder from 39,806,100 shares to 54,806,100 shares. On May 4, 2022, the shareholders of Gran Tierra approved an amendment to the Company’s 2007 Equity Incentive Plan, which increased the Common Stock available for issuance thereunder from 54,806,100 shares to 59,806,100 shares. The following table provides information about PSU, DSU and stock option activity for the year ended December 31, 2022: PSUs DSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price ($) Balance, December 31, 2021 30,365,196 5,710,764 17,848,722 1.20 Granted 6,841,907 851,095 2,859,030 1.40 Exercised (4,396,646) — (1,754,119) 0.74 Forfeited (1,282,224) — (292,887) 1.35 Expired — — (1,357,886) 2.77 Balance, December 31, 2022 31,528,233 6,561,859 17,302,860 1.15 Vested and exercisable, at December 31, 2022 9,056,863 1.31 Vested, or expected to vest, at December 31, 2022 through the life of the options 17,022,420 1.15 For the year ended December 31, 2022, Stock-based compensation expense wa s $9.0 million (2021 - $8.4 million; 2020 - $1.2 million) and was recorded in G&A expenses. At December 31, 2022, there was $10.5 million (December 31, 2021 and 2020 - $11.8 million and $5.9 million, respectively) of unrecognized compensation cost related to unvested PSUs and stock options to be recognized over a weighted average period of 1.5 years . The weighted average remainin g contractual t erm of options vested, or expected to vest, at December 31, 2022, is 2.5 years . PSUs PSUs entitle the holder to receive, at the option of the Company, either the underlying number of shares of the Company’s Common Stock upon vesting of such units or a cash payment equal to the value of the underlying shares. PSUs will cliff vest after three years, subject to the grantee’s continued employment. Upon vesting, the underlying number of Common Shares or the cash payment equivalent to their value may range from nil to 200% of the number of PSU’s vested, based on the Company’s performance with respect to the applicable performance targets. As at December 31, 2022, 12.4 million (December 31, 2021 - 4.4 million) of PSUs had vested and will settle in cash. The performance targets for the PSUs outstanding as at December 31, 2022, were as follows: i. 50% of the award is subject to targets relating to the total shareholder return (“TSR”) of the Company against a group of peer companies; ii. 2020 and 2021 awards: 25% of the award is subject to targets relating to net asset value (“NAV”) of the Company per share, and NAV is based on before tax net present value discounted at 10% of proved plus probable reserves; 2022 awards: compliance with financial covenants and $20 million free cash flow (1) ; and iii. 25% of the award is subject to targets relating to the execution of corporate strategy. (1) Defined as funds flow from operations less capital expenditures before exploration expense and short-term incentive plan. The compensation cost of PSUs is subject to adjustment based upon the attainability of these performance targets. No settlement will occur with respect to the portion of the PSU award subject to each performance target for results below the applicable minimum threshold for that target. In excess of the target number granted, PSUs will vest and be settled if performance exceeds the targeted performance goals. The Company currently intends to settle the PSUs in cash. DSUs DSUs entitle the holder to receive either the underlying number of shares of the Company’s Common Stock upon vesting of such units or, at the option of the Company, a cash payment equal to the value of the underlying shares. Once a DSU is vested, it is immediately settled. During the year ended December 31, 2022, DSUs were granted to directors and will be settled at such time the grantee ceases to be a member of the Board of Directors. The Company currently intends to settle the DSUs in cash. Stock Options Each stock option permits the holder to purchase one share of Common Stock at the stated exercise price. The exercise price equals the market price of a share of Common Stock at the time of grant and vest over three years. The term of the stock options granted is five years or three months after the grantee’s end of service to the Company, whichever occurs first. For the year ended December 31, 2022, 1,754,119 stock options were exercised, and $1.3 million cash proceeds were received ( 2021- 162,944 stock options were exercised, and $0.1 million cash proceeds were received and 2020 - no options were exercised and no cash proceeds received). At December 31, 2022 and 2021, the weighted average remaining contractual term for outstanding stock options wa s 2.5 and 3.0 years, respectively, and for exercisable stock options was 1.9 and 2.2 years, respectively. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option-pricing model based on assumptions noted in the following table: Year Ended December 31, 2022 2021 2020 Dividend yield (per share) Nil Nil Nil Volatility 77% to 81% 71% to 80% 50% to 69% Weighted average volatility 77 % 78 % 52 % Risk-free interest rate 1.4% to 4.0% 0.4% to 0.9% 0.3% to 1.7% Expected term 5 years 4 - 5 years 5 years The weighted average grant date fair value for options granted in the year ended December 31, 2022 was $0.88 (2021 - $0.47; 2020 - $0.29) per option. The weighted average grant date fair value for options vested in the year ended December 31, 2022 was $0.58 (2021 - $0.52; 2020 - $0.79) per option. The total fair value of stock options vested during year ended December 31, 2022 was $2.2 million (2021 - $2.1 million; 2020 - $1.9 million). Weighted Average Shares Outstanding Year Ended December 31, 2022 2021 2020 Weighted average number of common shares outstanding 364,455,456 367,022,903 366,981,556 Shares issuable pursuant to stock options 11,847,316 1,592,092 — Shares assumed to be purchased from proceeds of stock options (7,022,675) (741,606) — Weighted average number of diluted common shares outstanding 369,280,097 367,873,389 366,981,556 For the year ended December 31, 2022, 5,900,245 options were excluded from the diluted earnings (loss) per share calculation as the options were anti-dilutive (2021 - 15,559,816; 2020 - all options) |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Asset Retirement Obligation Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 Balance, beginning of year $ 54,525 $ 48,214 Liability incurred 5,025 4,122 Settlements (2,630) (805) Accretion 4,498 4,180 Revisions in estimated liability 2,081 (1,186) Balance, end of year $ 63,499 $ 54,525 Current (1) $ 141 $ — Long-term $ 63,358 $ 54,525 Balance, end of year $ 63,499 $ 54,525 (1) Current portion of asset retirement obligation is included into accounts payable and accrued liabilities on the Company’s balance sheet Revisions in estimated liabilities relate primarily to changes in estimates of asset retirement costs and include, but are not limited to, revisions of estimated inflation rates, changes in property lives and the expected timing of settling asset retirement obligations. At December 31, 2022, the fair value of assets that was legally restricted for purposes of settling asset retirement obligations was $6.5 million (December 31, 2021 - $5.3 million). These assets were accounted for as restricted cash and cash equivalents on the Company’s balance sheet (Note 15). |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue All of the Company’s revenue is generated from oil sales at prices that reflect the blended prices received upon shipment by the purchaser at defined sales points or are defined by contract relative to ICE Brent and adjusted for Vasconia or Castilla crude differentials, and quality and transportation discounts each month. For the year ended December 31, 2022, 100% (2021 and 2020 - 100%) of the Company's revenue resulted from oil sales and quality and transportation discounts were 17% (2021 - 15%; 2020 - 25%) of the ICE Brent price. During the year ended December 31, 2022, the Company’s production was sold primarily to two major customers in Colombia equaling 78% and 22% of total sales volumes (2021 - three, representing 66%, 19% and 12% of sales volumes and 2020 - three, representing 41%, 31% and 25% of sales volumes) As at December 31, 2022, accounts receivable included nil accrued sales revenue related to December 2022 production (as at December 31, 2021 - nil and December 31, 2020 - $0.1 million related to December production of each respective year). |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The income tax expense and recovery reported differs from the amount computed by applying the statutory rate to income (loss) before income taxes for the following reasons: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Income (loss) before income taxes United States $ (38,161) $ (31,329) $ (19,065) Foreign 283,096 54,465 (834,296) 244,935 23,136 (853,361) Statutory rate (1) 35 % 31 % 32 % Income tax expense (recovery) expected 85,727 7,172 (273,076) Impact of foreign taxes 8,876 9,723 26,668 Foreign currency translation (4,641) 14,450 48,734 Goodwill Impairment — — 32,826 Stock-based compensation 5,804 1,708 666 Change in valuation allowance 2,386 (53,434) 75,241 Non-deductible third party royalty in Colombia 3,422 1,568 697 Other permanent differences 4,332 (1,058) 5,349 Non-deductible investment loss — 525 7,501 Total income tax expense (recovery) $ 105,906 $ (19,346) $ (75,394) Effective tax rate 43 % (84) % 9 % Current income tax expense Foreign 80,566 4,479 754 80,566 4,479 754 Deferred income tax expense (recovery) Foreign 25,340 (23,825) (76,148) Total income tax expense (recovery) $ 105,906 $ (19,346) $ (75,394) (1) The tax rate is the statutory rate in Colombia. In general, it is the Company’s practice and intention to reinvest the earnings of our non-U.S. subsidiaries in such subsidiaries’ operations. As of December 31, 2022, the Company has not made a provision for U.S. or additional foreign withholding taxes on the investments in foreign subsidiaries that are indefinitely reinvested. Generally, such amounts become subject to taxation upon the remittance of dividends and under certain other circumstances. In December 2022, the Colombian Government enacted a new tax reform bill which is effective January 1 st , 2023. The reform includes significant changes to the income tax regime applicable to oil companies, including an increase in the capital gain tax rate to 15% (from 10%), increase in the dividend tax rate to 20% (from 10%); the elimination of the tax deductibility of royalties paid-in cash and cost associated to royalties paid-in kind in the calculation of taxable income; and the introduction of a surcharge to the current 35% tax rate. The surcharge will be determined by comparing the average inflation-adjusted Brent price during the taxation year to the monthly inflation-adjusted Brent price during the prior 120 months. When the Brent price during the taxation year exceeds the 30th percentile of the historical price range a 5% surtax is applied. It increases to 10% and 15% when the Brent price during the taxation year exceeds the 45th and 60th percentiles, respectively. GTE expects the 2023 surtax to be 15% for an aggregated income tax rate of 50%. The tax rates applied to the calculation of deferred income taxes have been adjusted to reflect this change. The table below presents the components of the deferred tax assets as at December 31, 2022 and 2021: As at December 31, (Thousands of U.S. Dollars) 2022 2021 Tax benefit of operating loss carryforwards $ 53,720 $ 67,134 Book basis in excess of tax basis (20,349) 16,815 Foreign tax credits and other accruals 103,700 91,381 Tax benefit of capital loss carryforwards — 28,050 Deferred tax assets before valuation allowance 137,071 203,380 Valuation allowance (114,109) (141,886) Net deferred tax assets $ 22,962 $ 61,494 Deferred tax assets 22,990 61,494 22,990 61,494 Deferred tax liabilities 28 — 28 — Net deferred tax assets $ 22,962 $ 61,494 At December 31, 2022, the Company has not recognized the benefit of unused non-capital loss carryforwards of $91.3 million (2021 - $62.1 million, 2020 - $46.0 million) for federal purposes in the United States, which expire from 2030 to 2042. At December 31, 2022, the Company has recognized the benefit of unused non-capital loss carryforwards of $40.7 million (2021 - $102.4 million, 2020 - $115.6 million), out of a total of $59.5 million; and no tax credits (2021 - no tax credits, 2020 - $1.0 million), out of a total of $2.1 million, for federal purposes in Colombia. The Company’s remaining tax losses are entitled to a carryforward period of 12 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations, Firm Agreements and Leases As at December 31, 2022, future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: Year ending December 31 (Thousands of U.S. Dollars) Total 2023 2024 2025 2026 2027 Thereafter Facilities 8,704 1,997 2,002 1,997 1,997 711 — Operating leases (1) 10,684 2,093 1,605 1,710 1,723 1,938 1,615 Finance leases (1) 22,036 5,105 4,644 2,233 2,233 7,821 — Software and Telecommunication 774 387 387 — — — — $ 42,198 $ 9,582 $ 8,638 $ 5,940 $ 5,953 $ 10,470 $ 1,615 (1) Including maintenance and operating costs. Gran Tierra has operating leases for office spaces, vehicles, and tanks and finance leases for power generation and enhanced oil recovery facilities, storage tanks, and compressors. Indemnities Corporate indemnities have been provided by the Company to directors and officers for various items including, but not limited to, all costs to settle suits or actions due to their association with the Company and its subsidiaries and/or affiliates, subject to certain restrictions. The Company has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions. The maximum amount of any potential future payment cannot be reasonably estimated. The Company may provide indemnifications in the normal course of business that are often standard contractual terms to counterparties in certain transactions such as purchase and sale agreements. The terms of these indemnifications will vary based upon the contract, the nature of which prevents the Company from making a reasonable estimate of the maximum potential amounts that may be required to be paid. Letters of Credit At December 31, 2022, the Company had provided letters of credit and other credit support totali ng $111.1 million ( December 31, 2021 - $103.0 million) as security relating to work commitment guarantees contained in exploration contracts in Colombia and Ecuador and other capital or operating requirements. Contingencies Gran Tierra has several lawsuits and claims pending. The outcome of the 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. |
Financial Instruments, Fair Val
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk | Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk Financial Instruments Financial instruments are initially recorded at fair value, defined as the price that would be received to sell an asset or paid to market participants to settle liability at the measurement date. For financial instruments carried at fair value, 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 representing quoted market prices in active markets for identical assets and liabilities • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the assets and liabilities, either directly or indirectly • Level 3 - Unobservable inputs for assets and liabilities The Company’s financial instruments recognized on the balance sheet consist of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, other long-term assets, derivatives, accounts payable and accrued liabilities, current portion of long-term debt, long-term debt, current and long-term equity compensation reward liability and other long-term liabilities. The Company uses appropriate valuation techniques based on the available information to measure the fair values of assets and liabilities. Fair Value Measurement The following table presents the Company’s fair value measurements of its financial instruments as of December 31, 2022 and 2021: As at December 31, 2022 2021 (Thousands of U.S. Dollars) Level 1 Assets PEF - current (2) $ 5,981 $ — PEF - long-term (1) 9,975 7,578 $ 15,956 $ 7,578 Liabilities DSUs liability - long-term (3) $ 6,496 $ 4,346 6.25% Senior Notes 243,801 273,672 7.75% Senior Notes 241,455 271,500 $ 491,752 $ 549,518 Level 2 Assets Derivative asset (2) $ — $ 219 Restricted cash and cash equivalents - long-term (1) 5,343 4,903 $ 5,343 $ 5,122 Liabilities Derivative liability $ — $ 2,976 Revolving credit facility — 66,987 PSUs liability - current 15,082 2,710 PSUs liability - long-term (3) 9,941 9,372 $ 25,023 $ 82,045 Level 3 Liabilities Asset retirement obligation - current $ 141 $ — Asset retirement obligation - long-term 63,358 54,525 $ 63,499 $ 54,525 (1) The long-term portion of restricted cash and PEF are included in the other long-term assets on the Company’s balance sheet (2) Included in the other current assets on the Company’s balance sheet (3) Long-term DSUs and PSUs liabilities are included in the long-term equity compensation award liability on the Company’s balance sheet The fair values of cash and cash equivalents, current restricted cash and cash equivalents, accounts receivable and accounts payable and accrued liabilities approximate their carrying amounts due to the short-term maturity of these instruments. The fair value of long-term restricted cash and cash equivalents approximate its carrying value because interest rates are variable and reflective of market rates. PEF To reduce the Company’s exposure to changes in the trading price of the Company’s common shares on outstanding PSUs, the Company entered into PEFs. At the end of the term, the counterparty will pay the Company an amount equivalent to the notional amount of the shares using the price of the Company’s common shares at the valuation date. The Company has the discretion to increase or decrease the notional amount of the prepaid equity forwards or terminate the agreement early. As at December 31, 2022, the Company’s PEF had a notional amount of 16.0 million shares and a fair value of $16.0 million. During the year ended December 31, 2022, the Company recorded a gain of $1.3 million on the PEF in G&A expenses (December 31, 2021 - $0.9 million gain and 2020 - nil). The fair value of PEF asset was estimated using Company’s share price quoted in active markets at the end of each reporting period. DSUs liability The fair value of DSUs liability was estimated using Company’s share price quoted in active markets at the end of each reporting period. PSUs liability The fair value of the PSUs liability was estimated using the inputs, such as Company’s share price and PSU performance factors. Derivative asset and derivative liability The fair value of 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. As at December 31, 2022, the Company did not have any outstanding derivative positions. The following table presents gains or losses on derivatives and other instruments recognized in the accompanying consolidated statements of operations: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Commodity price derivative loss (gain) $ 26,611 $ 48,723 $ (220) Foreign currency derivative loss — 115 3,155 Derivative instruments loss $ 26,611 $ 48,838 $ 2,935 Unrealized investment loss $ — $ 2,032 $ 46,883 Loss on sale of investment — 1,355 — Financial instruments (gain) loss (7) (18) 1,164 Other financial instruments (gain) loss $ (7) $ 3,369 $ 48,047 These gains or losses are presented as financial instruments gains or losses in the consolidated statements of operations and cash flows. Credit facility and Senior Notes Financial instruments not recorded at fair value at December 31, 2022, include the Senior Notes and the credit facility (Note 8). During the year ended December 31, 2022, the Company terminated its prior revolving credit facility agreement and replaced the prior facility with a new credit facility. As of December 31, 2022, the credit facility remained undrawn. At December 31, 2022, the carrying amounts of the 6.25% Senior Notes and 7.75% Senior Notes were $275.9 million a nd $293.2 million, respectively, which represents the aggregate principal amounts less unamortized debt issuance costs, and the fair values were $243.8 million and $241.5 million. Asset retirement obligation 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. The significant level 3 inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit-adjusted risk-free interest rate, inflation rates, and estimated dates of abandonment. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. Commodity Price Risk The Company may at time utilize 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. As at December 31, 2022, the Company had no outstanding commodity price derivative positions. Foreign Exchange Risk The Company is exposed to foreign exchange risk in relation to its Colombian operations predominantly in operating and transportation costs and G&A expenses. To mitigate exposure to fluctuations in foreign exchange, the Company may enter into foreign currency exchange derivatives. As at December 31, 2022, the Company had no outstanding foreign currency exchange derivative positions. Unrealized foreign exchange gains and losses primarily result from fluctuation of the U.S. dollar to the Colombian peso and Canadian dollar due to Gran Tierra’s current and deferred tax assets and taxes receivable, which are monetary assets and liabilities mainly denominated in the local currencies. As a result, foreign exchange gains and losses must be calculated on conversion to the U.S. dollar functional currency. A strengthening in one Colombian peso against the U.S. dollar results in foreign exchange gain of approximately six thousand of U.S. dollars on deferred tax asset balance and a foreign exchange loss of approximately seven thousand of U.S. dollars on taxes payable. This effect was calculated based on the Company’s December 31, 2022, deferred tax assets and taxes payable. For the years ended December 31, 2022, 2021 and 2020 respectivel y, 100% of the Company's oil sales were generated in Colombia. In Colombia, the Company receives 100% of its revenues in U.S. dollars and the majority of its capital expenditures are in U.S. dollars or are based on U.S. dollar prices. Credit Risk Credit risk arises from the potential that the Company may incur a loss if counterparty to a financial instrument fails to meet its obligation in accordance with agreed terms. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. The carrying value of cash and cash equivalents, restricted cash and accounts receivable reflects management’s assessment of credit risk. At December 31, 2022, cash and cash equivalents and restricted cash included balances in bank accounts, term deposits and certificates of deposit, placed with financial institutions with investment grade credit ratings. Most of the Company’s accounts receivable relate to sales to customers in the oil and natural gas industry and are exposed to typical industry credit risks. The concentration of revenues in a single industry affects the Company’s overall exposure to credit risk because customers may be similarly affected by changes in economic and other conditions. The Company manages this credit risk by entering into sales contracts with only credit worthy entities and reviewing its exposure to individual entities on a regular basis. For the year ended December 31, 2022, the Company had two customers (2021 and 2020 - three) which accounted for over 10% of sales. To reduce the concentration of exposure to any individual counterparty, the Company utilizes a group of investment-grade rated financial institutions for its derivative transactions. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its derivative instruments. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
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 consolidated balance sheet that sum to the total of such amounts shown in the consolidated statements of cash flows: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Cash and cash equivalents $ 126,873 $ 26,109 $ 13,687 Restricted cash and cash equivalents - current 1,142 392 427 Restricted cash and cash equivalents - long-term (1) 5,343 4,903 3,409 $ 133,358 $ 31,404 $ 17,523 (1) The long-term portion of restricted cash is included in other long-term assets on the Company's balance sheet. Net changes in assets and liabilities from operating activities were as follows: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Accounts receivable and other long-term assets $ 2,352 $ (5,686) $ 27,607 Derivatives (12,625) (5,808) 2,302 Inventory (4,165) (2,383) (2,628) Other prepaids (1,775) (199) (279) Accounts payable and accrued and other long-term liabilities (5,789) 48,206 (47,194) Prepaid tax and taxes receivable and payable 86,319 25,024 56,254 Net changes in assets and liabilities from operating activities $ 64,317 $ 59,154 $ 36,062 The following table provides additional supplemental cash flow disclosures: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Cash paid for income taxes $ 37,052 $ 36,352 $ 14,611 Cash paid for interest $ 43,363 $ 50,109 $ 50,209 Non-cash investing activities Net liabilities related to property, plant and equipment, end of year $ 55,118 $ 30,142 $ 28,711 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent to year-end, the Company received $5.4 million from the vesting of 6.0 million short-term PEF units. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of ConsolidationThese consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimated proved and probable reserves volumes and the related cash flows are determined by the independent reservoir engineering specialists and used in several of the estimates made by management in preparing these financial statements. Numerous estimates are required to be made in the reserve report, including forecasted production, forecasted operating royalty, capital cost assumptions, and in certain cases forecasted commodity prices. Significant estimates made by management include: depreciation, depletion, amortization (“DD&A”) and impairment of proved oil and gas properties; timing of transfers from oil and gas properties not subject to depletion to the depletable base; asset retirement obligations; determining the value of the consideration transferred and the net identifiable assets acquired and liabilities assumed in connection with business combinations and determining goodwill; assessments of the likely outcome of legal and other contingencies; income taxes; stock-based compensation; and determining the fair value of derivatives. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates, and actual results may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents are comprised of cash and cash equivalents pledged to secure letters of credit and to settle asset retirement obligations. Letters of credit currently secured by cash relate to work commitment guarantees contained in exploration contracts. Restrictions will lapse when work obligations are satisfied pursuant to the exploration contract or an asset retirement obligation is settled. Cash and claims to cash that are restricted as to withdrawal or use for other than current operations, or are designated for expenditure in the acquisition or construction of long-term assets are excluded from the current asset classification. The long-term portion of restricted cash and cash equivalents is included in other long-term assets on the Company’s balance sheet. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts 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 prior to the period-end and the corresponding historical credit losses experienced within this period. Historical loss rates are adjusted to |
Prepaid Equity Forward | Prepaid Equity Forwards The Company is exposed to equity price risk in relation to its long-term incentive plans. The Company utilizes prepaid equity forwards (“PEF”) on the equivalent number of the Company’s common shares in order to fix the future settlement cost on a portion of its cash-settled long-term incentive plans. PEF is recorded in other current and long-term assets on the Company’s balance sheet at fair value, with changes in fair value recognized as G&A expense in the consolidated statements of operations. The Company utilizes PEF to manage equity price risk in relation to its long-term incentive plans. |
Derivatives | Derivatives The Company records derivative instruments on its balance sheet at fair value as either an asset or liability with changes in fair value recognized in the consolidated statements of operations as financial instruments gains or losses. While the Company utilizes derivative instruments to manage the price risk attributable to its expected oil production and foreign exchange risk, it has elected not to designate its derivative instruments as accounting hedges under the accounting guidance. |
Inventory | Inventory Inventory consists of oil in tanks and third party pipelines and supplies and is valued at the lower of cost and net realizable value. The cost of inventory is determined using the weighted average method. Oil inventories include expenditures incurred to produce, upgrade and transport the product to the storage facilities and include operating, depletion and depreciation expenses, and royalties. |
Income Taxes | Income Taxes Income taxes are recognized using the liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax base, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are provided if, after considering the available evidence, it is not more likely than not that some or all of the deferred tax assets will be realized. The tax benefit from an uncertain tax position is recognized when it is more likely than not, based on the technical merits of the position, that the position will be sustained on examination by the taxing authorities. Additionally, the amount of the tax benefit recognized is the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The Company recognizes potential penalties and interest related to unrecognized tax benefits as a component of income tax expense. |
Oil and Gas Properties | Oil and Gas Properties The Company uses the full cost method of accounting for its investment in oil and natural gas properties as defined by the Securities and Exchange Commission (“SEC”). Under this method, the Company capitalizes all acquisition, exploration, and development costs incurred for the purpose of finding oil and natural gas reserves, including salaries, benefits, and other internal costs directly attributable to these activities. Costs associated with production and general corporate activities; are expensed as incurred. Separate cost centers are maintained for each country in which the Company incurs costs. The Company computes depletion of oil and natural gas properties on a quarterly basis using the unit-of-production method based upon production and estimates of proved reserve quantities. Future development costs related to properties with proved reserves are also included in the amortization base for the computation of depletion. The costs of unproved properties are excluded from the amortization base until the properties are evaluated. The cost of exploratory dry wells is transferred to proved properties and thus is subject to amortization immediately upon determination that a well is dry in those countries where proved reserves exist. The Company performs a ceiling test calculation each quarter in accordance with SEC Regulation S-X Rule 4-10. In performing its quarterly ceiling test, the Company limits, on a country-by-country basis, the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes, to the estimated future net cash flows from proved oil and natural gas reserves discounted at 10%, net of related tax effects, plus the lower of cost or fair value of unproved properties included in the costs being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to net income or loss. Any such write-down will reduce earnings in the period of occurrence and result in a lower DD&A rate in future periods. A write-down may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the ceiling. The Company calculates future net cash flows by applying the unweighted average of prices in effect on the first day of the month for the preceding 12-month period, adjusted for location and quality differentials. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. Unproved properties are not depleted pending the determination of the existence of proved reserves. Costs are transferred into the depletable base on an ongoing basis as the properties are evaluated, proved reserves are established, or impairment is determined. Unproved properties are evaluated quarterly to ascertain whether impairment has occurred. This evaluation considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, and activity, remaining time in the commitment period, remaining capital plans, and political, economic, and market conditions. During any period in which factors indicate impairment, the cumulative costs incurred to date for such property are transferred to the full cost pool and subject to depletion. For countries where a reserve base has not yet been established, the impairment is charged to earnings. In exploration areas, related seismic costs are capitalized in unproved property and evaluated as part of the total capitalized costs associated with a property. Seismic costs related to development projects are recorded in proved properties and therefore subject to depletion as incurred. |
Asset Retirement Obligation | Asset Retirement ObligationThe Company records an estimated liability for future costs associated with the abandonment of its oil and gas properties, including the costs of reclamation of drilling sites. The Company records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred with an offsetting increase to the related oil and gas properties. 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. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. The accretion of the asset retirement obligation and amortization of the asset retirement cost is included in DD&A. If estimated future costs of an asset retirement obligation change, an adjustment is recorded to both the asset retirement obligation and oil and gas properties. Revisions to the estimated asset retirement obligation can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment. |
Other Capital Assets | Other Capital AssetsOther capital assets, including additions and replacements, are recorded at cost upon acquisition and include furniture, fixtures, leasehold improvement, computer equipment, automobiles and right-of-use assets for operating and finance leases. Depreciation for furniture and fixtures, computer equipment, and automobiles is provided using the straight-line method over the useful life of the asset. Leasehold improvements and right-of-use assets for operating and finance leases are depreciated on a straight-line basis over the shorter of the estimated useful life and the term of the related lease. The cost of repairs and maintenance is charged to expenses as incurred. |
Leases | Leases At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the inception of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company recognizes revenue when it transfers control of the product to a customer. This generally occurs at the time the customer obtains legal title to the product and when it is physically transferred to the delivery point agreed with the customer. Revenue is recognized based on the consideration specified in contracts with customers. Revenue represents the Company's share and is recorded net of royalty payments to governments and other mineral interest owners. The Company evaluates its arrangement with third parties and partners to determine if the Company acts as a principal or an agent. In making this evaluation, management considers if the Company obtains control of the product delivered, which is indicated by the Company having the primary responsibility for the delivery of the product, having the ability to establish prices, or having inventory risk. If the Company acts in the capacity of an agent rather than as a principal in the transaction, then the revenue is recognized on a net basis, only reflecting the fee realized by the Company from the transaction. Tariffs, tolls, and fees charged to other entities for the use of pipelines owned by the Company are evaluated by management to determine if these originate from contracts with customers or from incidental arrangements. When determining if the Company acted as a principal or an agent in transactions, management determines if the Company obtains control of the product. As part of this assessment, management considers criteria for revenue recognition set out in Accounting Standard Codification (“ASC”) 606. |
Stock-based Compensation | Stock-based Compensation The Company records stock-based compensation expense in its consolidated financial statements measured at fair value of the awards that are ultimately expected to vest. Fair values are determined using pricing models such as the Black-Scholes-Merton or Monte Carlo simulation stock option-pricing models and/or observable share prices. For equity-settled stock-based compensation awards, fair values are determined at the grant date, and the expense, net of estimated forfeitures, is recognized using the accelerated method over the requisite service period. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures. For cash-settled stock-based compensation awards, fair values are determined at each reporting date, and periodic changes are recognized as compensation costs, with a corresponding change to liabilities. The Company uses historical data to estimate the expected term used in the Black-Scholes option pricing model, option exercises, and employee departure behavior. Expected volatilities used in the fair value estimate are based on the historical volatility of the Company’s shares. The risk-free rate for periods within the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company, including its subsidiaries, is the U.S. dollar. Monetary items are translated into the reporting currency at the exchange rate in effect at the balance sheet date, and non-monetary items are translated at historical |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings (loss) per share is calculated by dividing net income or loss attributable to common shareholders by the weighted average number of shares of Common Stock issued and outstanding during each period. Diluted net income per share is calculated by adjusting the weighted average number of shares of Common Stock outstanding for the dilutive effect, if any, of share equivalents. The Company uses the treasury stock method to determine the dilutive effect. This method assumes that all Common Stock equivalents have been exercised at the beginning of the period (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase shares of Common Stock of the Company at the volume weighted average trading price of shares of Common Stock during the period. |
Risks and Measurement Uncertainty | Risks and Measurement Uncertainty The impacts of the Covid-19 pandemic and the recovery therefrom coupled with several factors including higher levels of uncertainty due to the Russian invasion of Ukraine, volatility in energy markets, rising interest and inflation rates and constrained supply chains have created a higher level of volatility and uncertainty. Management has, to the reasonable extent, incorporated known facts and circumstances into the estimates made, however, the increased levels of uncertainly and volatility making accounting estimates more judgmental and the actual results could differ materially from estimates. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As at December 31, (Thousands of U.S. Dollars) 2022 2021 Trade $ 5,601 $ 9,193 Other 5,105 3,992 Total Accounts Receivable $ 10,706 $ 13,185 |
Taxes Receivable (Payable) (Tab
Taxes Receivable (Payable) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Tax Receivable Agreement [Abstract] | |
Schedule of Taxes Receivable and Payable Components | The table below shows the break-down of taxes receivable and payable, comprised of value added tax (“VAT”) and income tax: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 Taxes Receivable Current VAT Receivable $ 54 $ 21,918 Income Tax Receivable — 23,588 $ 54 $ 45,506 Long-Term Income Tax Receivable 27,796 17,522 $ 27,796 $ 17,522 Taxes Payable Current VAT Payable $ (11,784) $ (6,620) Income Tax Payable $ (47,194) $ — $ (58,978) $ (6,620) Total Taxes (Payable) Receivable $ (31,128) $ 56,408 |
Schedule of Taxes Receivable Roll Forward | The following table shows the movement of VAT and income tax receivable and payable for the past two years: (Thousands of U.S. Dollars) VAT Receivable (Payable) Income Tax Receivable (Payable) Total Taxes Receivable (Payable) Balance, December 31, 2020 $ 64,462 $ 28,098 $ 92,560 Collected through direct government refunds (604) (14,228) (14,832) Collected through sales contracts (105,858) — (105,858) Taxes paid 63,792 36,352 100,144 Current tax expense — (4,479) (4,479) Foreign exchange loss (6,494) (4,633) (11,127) Balance, December 31, 2021 $ 15,298 $ 41,110 $ 56,408 Collected through direct government refunds (448) (15,956) (16,404) Collected through sales contracts (157,117) — (157,117) Taxes paid 130,716 37,052 167,768 Current tax expense — (80,566) (80,566) Foreign exchange loss (179) (1,038) (1,217) Balance, December 31, 2022 $ (11,730) $ (19,398) $ (31,128) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As at December 31, (Thousands of U.S. Dollars) 2022 2021 Oil and natural gas properties Proved $ 4,617,804 $ 4,302,473 Unproved 74,471 131,865 4,692,275 4,434,338 Other (1) 61,386 34,943 4,753,661 4,469,281 Accumulated depletion, depreciation and impairment (3,652,759) (3,473,484) $ 1,100,902 $ 995,797 (1) The “other” category includes $38.9 million right-of-use assets for operating and finance leases which had a net book value of $24.6 million as at December 31, 2022 (December 31, 2021 - $13.9 million which had a net book value of $3.9 million). |
Summary of Oil and Natural Gas Properties | The following is a summary of Gran Tierra’s oil and natural gas properties not subject to depletion as at December 31, 2022: Costs Incurred in (Thousands of U.S. Dollars) 2022 2021 2020 Prior to 2020 Total Acquisition costs - Colombia $ — $ — $ — $ 10,268 $ 10,268 Exploration costs - Colombia 5,814 1,728 9,495 43,925 60,962 Exploration costs - Ecuador 3,106 2 — 133 3,241 $ 8,920 $ 1,730 $ 9,495 $ 54,326 $ 74,471 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 Trade $ 114,263 $ 91,101 Royalties 2,760 14,761 Employee compensation 3,051 4,382 Other 47,505 38,450 $ 167,579 $ 148,694 |
Debt and Debt Issuance Costs (T
Debt and Debt Issuance Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt at December 31, 2022 and 2021, was as follows: As at December 31, (Thousands of U.S. Dollars) 2022 2021 Current Revolving credit facility $ — $ 67,500 Unamortized debt issuance costs — (513) Current portion of long-term debt $ — $ 66,987 Long Term 6.25% Senior Notes $ 279,909 $ 300,000 7.75% Senior Notes 300,000 300,000 Unamortized debt issuance costs (1) (10,992) (14,030) Long-term lease obligation (2) 20,676 1,434 Long-term debt $ 589,593 $ 587,404 Total Debt $ 589,593 $ 654,391 (1) Includes $0.3 million of unamortized deferred financing fees related to credit facility (2) The current portion of the lease obligation has been included in accounts payable and accrued liabilities and totaled $4.8 million as at December 31, 2022 (December 31, 2021 - $3.3 million). |
Schedule of Total Interest Expense Recognized | The following table presents the total interest expense recognized in the accompanying consolidated statements of operations: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Contractual interest and other financing expenses $ 42,965 $ 50,572 $ 50,515 Amortization of debt issuance costs 3,528 3,809 3,625 $ 46,493 $ 54,381 $ 54,140 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock | Shares of Common Stock Shares issued and outstanding, December 31, 2020 366,981,556 Options exercised 162,944 Shares issued and outstanding, December 31, 2021 367,144,500 Options exercised 1,754,119 Shares issued, December 31, 2022 368,898,619 Treasury stock (22,747,462) Shares issued and outstanding at December 31, 2022 346,151,157 |
Schedule of Information About PSU, DSU, RSU and Stock Option Activity | The following table provides information about PSU, DSU and stock option activity for the year ended December 31, 2022: PSUs DSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price ($) Balance, December 31, 2021 30,365,196 5,710,764 17,848,722 1.20 Granted 6,841,907 851,095 2,859,030 1.40 Exercised (4,396,646) — (1,754,119) 0.74 Forfeited (1,282,224) — (292,887) 1.35 Expired — — (1,357,886) 2.77 Balance, December 31, 2022 31,528,233 6,561,859 17,302,860 1.15 Vested and exercisable, at December 31, 2022 9,056,863 1.31 Vested, or expected to vest, at December 31, 2022 through the life of the options 17,022,420 1.15 |
Schedule of Assumptions Using the Black-Scholes Option Pricing Model | The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option-pricing model based on assumptions noted in the following table: Year Ended December 31, 2022 2021 2020 Dividend yield (per share) Nil Nil Nil Volatility 77% to 81% 71% to 80% 50% to 69% Weighted average volatility 77 % 78 % 52 % Risk-free interest rate 1.4% to 4.0% 0.4% to 0.9% 0.3% to 1.7% Expected term 5 years 4 - 5 years 5 years |
Schedule of Weighted Average Number of Shares | Weighted Average Shares Outstanding Year Ended December 31, 2022 2021 2020 Weighted average number of common shares outstanding 364,455,456 367,022,903 366,981,556 Shares issuable pursuant to stock options 11,847,316 1,592,092 — Shares assumed to be purchased from proceeds of stock options (7,022,675) (741,606) — Weighted average number of diluted common shares outstanding 369,280,097 367,873,389 366,981,556 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Asset Retirement Obligation | Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 Balance, beginning of year $ 54,525 $ 48,214 Liability incurred 5,025 4,122 Settlements (2,630) (805) Accretion 4,498 4,180 Revisions in estimated liability 2,081 (1,186) Balance, end of year $ 63,499 $ 54,525 Current (1) $ 141 $ — Long-term $ 63,358 $ 54,525 Balance, end of year $ 63,499 $ 54,525 (1) Current portion of asset retirement obligation is included into accounts payable and accrued liabilities on the Company’s balance sheet |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense Reported | The income tax expense and recovery reported differs from the amount computed by applying the statutory rate to income (loss) before income taxes for the following reasons: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Income (loss) before income taxes United States $ (38,161) $ (31,329) $ (19,065) Foreign 283,096 54,465 (834,296) 244,935 23,136 (853,361) Statutory rate (1) 35 % 31 % 32 % Income tax expense (recovery) expected 85,727 7,172 (273,076) Impact of foreign taxes 8,876 9,723 26,668 Foreign currency translation (4,641) 14,450 48,734 Goodwill Impairment — — 32,826 Stock-based compensation 5,804 1,708 666 Change in valuation allowance 2,386 (53,434) 75,241 Non-deductible third party royalty in Colombia 3,422 1,568 697 Other permanent differences 4,332 (1,058) 5,349 Non-deductible investment loss — 525 7,501 Total income tax expense (recovery) $ 105,906 $ (19,346) $ (75,394) Effective tax rate 43 % (84) % 9 % Current income tax expense Foreign 80,566 4,479 754 80,566 4,479 754 Deferred income tax expense (recovery) Foreign 25,340 (23,825) (76,148) Total income tax expense (recovery) $ 105,906 $ (19,346) $ (75,394) (1) The tax rate is the statutory rate in Colombia. |
Schedule of Deferred Tax Assets and Liabilities | The table below presents the components of the deferred tax assets as at December 31, 2022 and 2021: As at December 31, (Thousands of U.S. Dollars) 2022 2021 Tax benefit of operating loss carryforwards $ 53,720 $ 67,134 Book basis in excess of tax basis (20,349) 16,815 Foreign tax credits and other accruals 103,700 91,381 Tax benefit of capital loss carryforwards — 28,050 Deferred tax assets before valuation allowance 137,071 203,380 Valuation allowance (114,109) (141,886) Net deferred tax assets $ 22,962 $ 61,494 Deferred tax assets 22,990 61,494 22,990 61,494 Deferred tax liabilities 28 — 28 — Net deferred tax assets $ 22,962 $ 61,494 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Agreements | As at December 31, 2022, future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: Year ending December 31 (Thousands of U.S. Dollars) Total 2023 2024 2025 2026 2027 Thereafter Facilities 8,704 1,997 2,002 1,997 1,997 711 — Operating leases (1) 10,684 2,093 1,605 1,710 1,723 1,938 1,615 Finance leases (1) 22,036 5,105 4,644 2,233 2,233 7,821 — Software and Telecommunication 774 387 387 — — — — $ 42,198 $ 9,582 $ 8,638 $ 5,940 $ 5,953 $ 10,470 $ 1,615 (1) Including maintenance and operating costs. |
Financial Instruments, Fair V_2
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following table presents the Company’s fair value measurements of its financial instruments as of December 31, 2022 and 2021: As at December 31, 2022 2021 (Thousands of U.S. Dollars) Level 1 Assets PEF - current (2) $ 5,981 $ — PEF - long-term (1) 9,975 7,578 $ 15,956 $ 7,578 Liabilities DSUs liability - long-term (3) $ 6,496 $ 4,346 6.25% Senior Notes 243,801 273,672 7.75% Senior Notes 241,455 271,500 $ 491,752 $ 549,518 Level 2 Assets Derivative asset (2) $ — $ 219 Restricted cash and cash equivalents - long-term (1) 5,343 4,903 $ 5,343 $ 5,122 Liabilities Derivative liability $ — $ 2,976 Revolving credit facility — 66,987 PSUs liability - current 15,082 2,710 PSUs liability - long-term (3) 9,941 9,372 $ 25,023 $ 82,045 Level 3 Liabilities Asset retirement obligation - current $ 141 $ — Asset retirement obligation - long-term 63,358 54,525 $ 63,499 $ 54,525 (1) The long-term portion of restricted cash and PEF are included in the other long-term assets on the Company’s balance sheet (2) Included in the other current assets on the Company’s balance sheet (3) Long-term DSUs and PSUs liabilities are included in the long-term equity compensation award liability on the Company’s balance sheet |
Schedule of Losses or Gains on Financial Instruments Recognized | The following table presents gains or losses on derivatives and other instruments recognized in the accompanying consolidated statements of operations: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Commodity price derivative loss (gain) $ 26,611 $ 48,723 $ (220) Foreign currency derivative loss — 115 3,155 Derivative instruments loss $ 26,611 $ 48,838 $ 2,935 Unrealized investment loss $ — $ 2,032 $ 46,883 Loss on sale of investment — 1,355 — Financial instruments (gain) loss (7) (18) 1,164 Other financial instruments (gain) loss $ (7) $ 3,369 $ 48,047 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents with the Company’s consolidated balance sheet that sum to the total of such amounts shown in the consolidated statements of cash flows: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Cash and cash equivalents $ 126,873 $ 26,109 $ 13,687 Restricted cash and cash equivalents - current 1,142 392 427 Restricted cash and cash equivalents - long-term (1) 5,343 4,903 3,409 $ 133,358 $ 31,404 $ 17,523 (1) The long-term portion of restricted cash is included in other long-term assets on the Company's balance sheet. |
Schedule of Net Changes in Assets and Liabilities | Net changes in assets and liabilities from operating activities were as follows: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Accounts receivable and other long-term assets $ 2,352 $ (5,686) $ 27,607 Derivatives (12,625) (5,808) 2,302 Inventory (4,165) (2,383) (2,628) Other prepaids (1,775) (199) (279) Accounts payable and accrued and other long-term liabilities (5,789) 48,206 (47,194) Prepaid tax and taxes receivable and payable 86,319 25,024 56,254 Net changes in assets and liabilities from operating activities $ 64,317 $ 59,154 $ 36,062 |
Schedule of Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures: Year Ended December 31, (Thousands of U.S. Dollars) 2022 2021 2020 Cash paid for income taxes $ 37,052 $ 36,352 $ 14,611 Cash paid for interest $ 43,363 $ 50,109 $ 50,209 Non-cash investing activities Net liabilities related to property, plant and equipment, end of year $ 55,118 $ 30,142 $ 28,711 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 10,706 | $ 13,185 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 5,601 | 9,193 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 5,105 | $ 3,992 |
Taxes Receivable (Payable) (Det
Taxes Receivable (Payable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||
VAT Receivable | $ 54 | $ 21,918 |
Income Tax Receivable | 0 | 23,588 |
Tax receivable | 54 | 45,506 |
Long-Term | ||
Income Tax Receivable | 27,796 | 17,522 |
Tax receivable | 27,796 | 17,522 |
VAT Payable | (11,784) | (6,620) |
Income Tax Payable | (47,194) | 0 |
Taxes payable (Note 4) | (58,978) | (6,620) |
Total Taxes (Payable) Receivable | (31,128) | 56,408 |
VAT Receivable (Payable) | ||
Begging balance | 15,298 | 64,462 |
Collected through direct government refunds | (448) | (604) |
Collected through sales contracts | (157,117) | (105,858) |
Taxes paid | 130,716 | 63,792 |
Current tax expense | 0 | 0 |
Foreign exchange loss | (179) | (6,494) |
Ending balance | (11,730) | 15,298 |
Income Tax Receivable (Payable) | ||
Beginning balance | 41,110 | 28,098 |
Collected through direct government refunds | (15,956) | (14,228) |
Collected through sales contracts | 0 | 0 |
Taxes paid | 37,052 | 36,352 |
Current tax expense | (80,566) | (4,479) |
Foreign exchange loss | (1,038) | (4,633) |
Ending balance | (19,398) | 41,110 |
Total Taxes Receivable (Payable) | ||
Beginning balance | 56,408 | 92,560 |
Collected through direct government refunds | (16,404) | (14,832) |
Collected through sales contracts | (157,117) | (105,858) |
Taxes paid | 167,768 | 100,144 |
Current tax expense | (80,566) | (4,479) |
Foreign exchange loss | (1,217) | (11,127) |
Ending balance | $ (31,128) | $ 56,408 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 4,753,661 | $ 4,469,281 |
Accumulated depletion, depreciation and impairment | (3,652,759) | (3,473,484) |
Total Property, Plant and Equipment (Note 5) | 1,100,902 | 995,797 |
Right-of-use asset | 38,900 | 13,900 |
Operating lease and finance lease, net | 24,600 | 3,900 |
Oil and natural gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 4,692,275 | 4,434,338 |
Proved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 4,617,804 | 4,302,473 |
Unproved | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 74,471 | 131,865 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 61,386 | $ 34,943 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Lease | $ 24.8 | ||
Depletion and depreciation expense | $ 175.8 | $ 135.7 | $ 160.8 |
Costs not expected to be subject to depletion (as a percent) | 100% | ||
Period until transferred to depletable base | 5 years |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Oil and Natural Gas Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | 60 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Properties not subject to depletion | $ 8,920 | $ 1,730 | $ 9,495 | $ 54,326 | $ 74,471 |
Reportable Segments | Colombia | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Acquisition costs | 0 | 0 | 0 | 10,268 | 10,268 |
Exploration costs | 5,814 | 1,728 | 9,495 | 43,925 | 60,962 |
Non-Segment | Ecuador | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Exploration costs | $ 3,106 | $ 2 | $ 0 | $ 133 | $ 3,241 |
Impairment (Details)
Impairment (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) $ / bbl | Dec. 31, 2021 USD ($) $ / bbl | Dec. 31, 2020 USD ($) $ / bbl | |
Property, Plant and Equipment [Line Items] | |||
Impairment of oil and gas properties | $ 0 | $ 0 | $ 560,300,000 |
Inventory impairment | $ 0 | 0 | 4,200,000 |
Oil and gas properties, discounted rate | 10% | ||
Historical prices, discounted rate | 10% | ||
Oil and gas properties, proved reserves | 16 years | ||
Goodwill impairment | $ 0 | $ 0 | $ 102,581,000 |
Crude Oil and NGL | |||
Property, Plant and Equipment [Line Items] | |||
Average brent price per barrel (in dollars per barrel) | $ / bbl | 97.98 | 68.92 | 43.43 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Trade | $ 114,263 | $ 91,101 |
Royalties | 2,760 | 14,761 |
Employee compensation | 3,051 | 4,382 |
Other | 47,505 | 38,450 |
Total | $ 167,579 | $ 148,694 |
Debt and Debt Issuance Costs -
Debt and Debt Issuance Costs - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | May 20, 2019 | Feb. 15, 2018 |
Current | ||||
Revolving credit facility | $ 0 | $ 67,500 | ||
Unamortized debt issuance costs | 0 | (513) | ||
Current portion of long-term debt | 0 | 66,987 | ||
Long Term | ||||
Unamortized debt issuance costs | (10,992) | (14,030) | ||
Long-term lease obligation | 20,676 | 1,434 | ||
Long-term debt | 589,593 | 587,404 | ||
Total Debt | $ 589,593 | $ 654,391 | ||
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Long-term debt | Long-term debt | ||
Unamortized deferred finance costs | $ 10,992 | $ 14,030 | ||
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Accounts payable and accrued liabilities (Note 7) | Accounts payable and accrued liabilities (Note 7) | ||
Finance lease, liability, current | $ 4,800 | $ 3,300 | ||
Senior Notes | 6.25% Senior Notes | ||||
Long Term | ||||
Stated interest rate | 6.25% | 6.25% | ||
Long-term debt, gross | $ 279,909 | 300,000 | ||
Total Debt | $ 275,900 | |||
Senior Notes | 7.75% Senior Notes | ||||
Long Term | ||||
Stated interest rate | 7.75% | 7.75% | ||
Long-term debt, gross | $ 300,000 | $ 300,000 | ||
Total Debt | 293,200 | |||
Line of Credit | ||||
Long Term | ||||
Unamortized debt issuance costs | (300) | |||
Unamortized deferred finance costs | $ 300 |
Debt and Debt Issuance Costs _2
Debt and Debt Issuance Costs - Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
May 23, 2019 | Feb. 15, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 20, 2019 | |
Debt Instrument [Line Items] | ||||||
Re-purchase of Senior Notes (Note 8) | $ 17,274 | $ 0 | $ 0 | |||
Senior Notes | 7.75% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 300,000 | 300,000 | ||||
Stated interest rate | 7.75% | 7.75% | ||||
Redemption price (as a percent) | 100% | |||||
Senior Notes | 7.75% Senior Notes | 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 103.875% | |||||
Senior Notes | 7.75% Senior Notes | 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 101.938% | |||||
Senior Notes | 7.75% Senior Notes | 2025 and Thereafter | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 100% | |||||
Senior Notes | 6.25% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 279,909 | $ 300,000 | ||||
Stated interest rate | 6.25% | 6.25% | ||||
Senior Notes | 6.25% Senior Notes | 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 101.563% | |||||
Senior Notes | 6.25% Senior Notes | 2024 and Thereafter | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 100% | |||||
Senior Notes | 6.25% Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Repurchased face amount | $ 20,100 | |||||
Re-purchase of Senior Notes (Note 8) | 17,300 | |||||
Interest payable | 100 | |||||
Gain on re-purchase | 2,600 | |||||
Write-off of deferred financing cost | $ 300 |
Debt and Debt Issuance Costs _3
Debt and Debt Issuance Costs - Credit Facility (Details) - Credit Agreement - Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |
Borrowing base | $ 150,000,000 |
Interest rate | 2.10% |
Debt instrument, net present value as percent of consolidated future cash flows | 80% |
Liquidity, ratio | 115% |
Scenario, Plan | |
Line of Credit Facility [Line Items] | |
Debt instrument, net present value as percent of consolidated future cash flows | 90% |
Minimum | |
Line of Credit Facility [Line Items] | |
Global coverage ratio | 150% |
Discount rate over outstanding balance | 0.10 |
Prepayment life coverage ratio | 150% |
Risk- Free Rate By Federal Reserve Bank Of New York | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 6% |
Adjusted spread | 0.26% |
Readily Available | |
Line of Credit Facility [Line Items] | |
Borrowing base | $ 100,000,000 |
Subject to Additional Approval | |
Line of Credit Facility [Line Items] | |
Borrowing base | $ 50,000,000 |
Debt and Debt Issuance Costs _4
Debt and Debt Issuance Costs - Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) integer | |
Debt Instrument [Line Items] | |
Number of operating leases | integer | 1 |
Operating lease, cost | $ 8.3 |
Lease term | 6 years 6 months |
Incremental borrowing rate | 7% |
Power Generators and Polymer Injection Equipment | |
Debt Instrument [Line Items] | |
Long-term lease obligation | $ 16.5 |
Minimum | |
Debt Instrument [Line Items] | |
Contractual life | 2 years |
Discount rate | 5.70% |
Maximum | |
Debt Instrument [Line Items] | |
Contractual life | 5 years |
Discount rate | 9.60% |
Debt and Debt Issuance Costs _5
Debt and Debt Issuance Costs - Schedule of Total Interest Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Contractual interest and other financing expenses | $ 42,965 | $ 50,572 | $ 50,515 |
Amortization of debt issuance costs | 3,528 | 3,809 | 3,625 |
Interest expense | $ 46,493 | $ 54,381 | $ 54,140 |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity | |||
Common stock, shares issued (in shares) | 368,898,619 | 367,144,500 | |
Common shares outstanding, as at beginning of period (in shares) | 367,144,500 | ||
Options exercised (in shares) | 1,754,119 | ||
Common shares outstanding, as at period end (in shares) | 346,151,157 | 367,144,500 | |
Shares of Common Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Common stock, shares issued (in shares) | 368,898,619 | 367,144,500 | 366,981,556 |
Common shares outstanding, as at beginning of period (in shares) | 367,144,500 | 366,981,556 | |
Options exercised (in shares) | 1,754,119 | 162,944 | 0 |
Treasury stock, common, shares (in shares) | (22,747,462) | ||
Common shares outstanding, as at period end (in shares) | 346,151,157 | 367,144,500 | 366,981,556 |
Share Capital - Additional Info
Share Capital - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 22, 2022 | May 04, 2022 | May 03, 2022 | Jun. 02, 2021 | Jun. 01, 2021 | Jun. 27, 2012 | Jun. 26, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Authorized share capital (in shares) | 595,000,000 | 595,000,000 | |||||||||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||||||
Common shares, outstanding (in shares) | 346,151,157 | 346,151,157 | 367,144,500 | ||||||||
Common stock available for issuance (in shares) | 59,806,100 | 54,806,100 | 54,806,100 | 39,806,100 | 39,806,100 | 23,306,100 | |||||
Share-based compensation | $ 9,049 | $ 8,396 | $ 1,216 | ||||||||
Unrecognized compensation cost | $ 10,500 | $ 10,500 | $ 11,800 | $ 5,900 | |||||||
Weighted average period of recognition | 1 year 6 months | ||||||||||
Weighted average remaining contractual term | 2 years 6 months | ||||||||||
2022 program | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share repurchased during period (in shares) | 22,747,462 | ||||||||||
Stock repurchased during period, weighted average price (in dollars per shares) | $ 1.20 | ||||||||||
Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock purchased as percent of shares issued and outstanding | 10% | 10% | 10% | ||||||||
Maximum | 2022 program | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common shares, outstanding (in shares) | 36,033,969 | 36,033,969 | |||||||||
Shares of Common Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Authorized share capital (in shares) | 570,000,000 | 570,000,000 | |||||||||
Common shares, outstanding (in shares) | 346,151,157 | 346,151,157 | 367,144,500 | 366,981,556 | |||||||
PSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity awards granted (as a percent) | 80% | ||||||||||
Stock options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity awards granted (as a percent) | 20% |
Share Capital - Schedule of Inf
Share Capital - Schedule of Information About PSU, DSU, RSU and Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Outstanding Stock Options | |
Balance, beginning of period (in shares) | 17,848,722 |
Granted (in shares) | 2,859,030 |
Exercised (in shares) | (1,754,119) |
Forfeited (in shares) | (292,887) |
Expired (in shares) | (1,357,886) |
Balance, end of period (in shares) | 17,302,860 |
Vested and exercisable, at end of period (in shares) | 9,056,863 |
Vested, or expected to vest, at end of period through the life of the options (in shares) | 17,022,420 |
Weighted Average Exercise Price ($) | |
Balance, beginning of period (in dollars per share) | $ / shares | $ 1.20 |
Granted (in dollars per share) | $ / shares | 1.40 |
Exercised (in dollars per share) | $ / shares | 0.74 |
Forfeited (in dollars per share) | $ / shares | 1.35 |
Expired (in dollars per share) | $ / shares | 2.77 |
Balance, end of period (in dollars per share) | $ / shares | 1.15 |
Vested and exercisable, at end of period (in dollars per share) | $ / shares | 1.31 |
Vested, or expected to vest, at end of period through the life of the options (in dollars per share) | $ / shares | $ 1.15 |
PSUs | |
Number of Outstanding Share Units | |
Balance, beginning of period (in shares) | 30,365,196 |
Granted (in shares) | 6,841,907 |
Exercised (in shares) | (4,396,646) |
Forfeited (in shares) | (1,282,224) |
Expired (in shares) | 0 |
Balance, end of period (in shares) | 31,528,233 |
DSUs | |
Number of Outstanding Share Units | |
Balance, beginning of period (in shares) | 5,710,764 |
Granted (in shares) | 851,095 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Balance, end of period (in shares) | 6,561,859 |
Share Capital - PSUs (Narrative
Share Capital - PSUs (Narrative) (Details) - PSUs - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Vested and will be settled in cash (in shares) | 12.4 | 4.4 | |
Award subject to targets relating to total shareholder return (as a percent) | 50% | ||
Award subject to targets relating to net asset value (as a percent) | 25% | 25% | |
Net present value discount rate | 10% | 10% | |
Free cash flows required | $ 20 | ||
Award subject to targets relating to execution of corporate strategy (as a percent) | 25% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of PSUs that vest (as a percent) | 0% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of PSUs that vest (as a percent) | 200% |
Share Capital - Stock Options (
Share Capital - Stock Options (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation award, common stock for purchase, exercise price (in shares) | 1 | ||
Options exercised (in shares) | 1,754,119 | ||
Proceeds from exercise of stock options (Note 9) | $ 1,298,000 | $ 100,000 | $ 0 |
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, weighted average remaining contractual term | 2 years 6 months | 3 years | |
Weighted average remaining contractual term of exercisable stock options | 1 year 10 months 24 days | 2 years 2 months 12 days | |
Weighted average grant date fair value for options granted (in dollars per share) | $ 0.88 | $ 0.47 | $ 0.29 |
Weighted average grant date fair value for options vested (in dollars per share) | $ 0.58 | $ 0.52 | $ 0.79 |
Total fair value of stock options vested | $ 2,200,000 | $ 2,100,000 | $ 1,900,000 |
Shares of Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised (in shares) | 1,754,119 | 162,944 | 0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Expected term during grantee's service | 5 years | 5 years | |
Expected term after end of grantee's service | 3 months |
Share Capital - Schedule of Ass
Share Capital - Schedule of Assumptions Using the Black-Scholes Option Pricing Model (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average volatility (as a percent) | 77% | 78% | 52% |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility, minimum | 77% | 71% | 50% |
Volatility, maximum | 81% | 80% | 69% |
Risk free interest rate, minimum | 1.40% | 0.40% | 0.30% |
Risk free interest rate, maximum | 4% | 0.90% | 1.70% |
Expected term | 5 years | 5 years | |
Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 4 years | ||
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 5 years |
Share Capital - Schedule Of Wei
Share Capital - Schedule Of Weighted Average Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Weighted average number of common shares outstanding (in shares) | 364,455,456 | 367,022,903 | 366,981,556 |
Shares issuable pursuant to stock options (in shares) | 11,847,316 | 1,592,092 | 0 |
Shares assumed to be purchased from proceeds of stock options (in shares) | (7,022,675) | (741,606) | 0 |
Weighted average number of diluted common shares outstanding (in shares) | 369,280,097 | 367,873,389 | 366,981,556 |
Share Capital - Weighted Averag
Share Capital - Weighted Average Shares Outstanding (Narrative) (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average options excluded from diluted earnings (loss) per share calculation (in shares) | 5,900,245 | 15,559,816 |
Asset Retirement Obligation - S
Asset Retirement Obligation - Schedule of Changes in Carrying Amount of Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Balance, beginning of year | $ 54,525 | $ 48,214 |
Liability incurred | 5,025 | 4,122 |
Settlements | (2,630) | (805) |
Accretion | 4,498 | 4,180 |
Revisions in estimated liability | 2,081 | (1,186) |
Current | 141 | 0 |
Long-term | 63,358 | 54,525 |
Balance, end of year | $ 63,499 | $ 54,525 |
Asset Retirement Obligation - N
Asset Retirement Obligation - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Fair value of assets legally restricted for purposes of settling asset retirement obligations | $ 6.5 | $ 5.3 |
Revenue (Details)
Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Variable adjustment for transportation, location, quality, and other elements, percentage | 17% | 15% | 25% |
Accrued sales revenue | $ 0 | $ 0 | $ 100,000 |
Revenue from Contract with Customer | Product Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 100% | 100% | |
Revenue from Contract with Customer | Product Concentration Risk | Colombia | Customer 1 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 78% | 66% | 41% |
Revenue from Contract with Customer | Product Concentration Risk | Colombia | Customer 2 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 22% | 19% | 31% |
Revenue from Contract with Customer | Product Concentration Risk | Colombia | Customer 3 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% | 25% |
Taxes - Schedule of Income Tax
Taxes - Schedule of Income Tax Expense Reported (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (38,161) | $ (31,329) | $ (19,065) |
Foreign | 283,096 | 54,465 | (834,296) |
INCOME (LOSS) BEFORE INCOME TAXES | $ 244,935 | $ 23,136 | $ (853,361) |
Statutory rate | 35% | 31% | 32% |
Income tax expense (recovery) expected | $ 85,727 | $ 7,172 | $ (273,076) |
Impact of foreign taxes | 8,876 | 9,723 | 26,668 |
Foreign currency translation | (4,641) | 14,450 | 48,734 |
Goodwill Impairment | 0 | 0 | 32,826 |
Stock-based compensation | 5,804 | 1,708 | 666 |
Change in valuation allowance | 2,386 | (53,434) | 75,241 |
Non-deductible third party royalty in Colombia | 3,422 | 1,568 | 697 |
Other permanent differences | 4,332 | (1,058) | 5,349 |
Non-deductible investment loss | 0 | 525 | 7,501 |
Total income tax expense (recovery) | $ 105,906 | $ (19,346) | $ (75,394) |
Effective tax rate | 43% | (84.00%) | 9% |
Current income tax expense | |||
Foreign | $ 80,566 | $ 4,479 | $ 754 |
Current income tax expense | 80,566 | 4,479 | 754 |
Deferred income tax expense (recovery) | |||
Foreign | 25,340 | (23,825) | (76,148) |
Total income tax expense (recovery) | $ 105,906 | $ (19,346) | $ (75,394) |
Taxes - Schedule of Deferred Ta
Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Tax benefit of operating loss carryforwards | $ 53,720 | $ 67,134 |
Book basis in excess of tax basis | (20,349) | 16,815 |
Foreign tax credits and other accruals | 103,700 | 91,381 |
Tax benefit of capital loss carryforwards | 0 | 28,050 |
Deferred tax assets before valuation allowance | 137,071 | 203,380 |
Valuation allowance | (114,109) | (141,886) |
Deferred tax assets | 22,990 | 61,494 |
Deferred tax liabilities | 28 | 0 |
Net deferred tax assets | $ 22,962 | $ 61,494 |
Taxes - Summary of Operating Lo
Taxes - Summary of Operating Loss and Capital Loss Carryforwards (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 59,500,000 | ||
Unrecognized tax benefits | $ 0 | 0 | |
Credit carryforward | 2,100,000 | ||
Internal Revenue Service (IRS) | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | 91,300,000 | 62,100,000 | $ 46,000,000 |
Colombian Tax and Customs National Authority | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 40,700,000 | 102,400,000 | 115,600,000 |
Colombian Tax and Customs National Authority | Capital Loss Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Credit carryforward | $ 0 | $ 1,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Agreements (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $ 42,198 |
2023 | 9,582 |
2024 | 8,638 |
2025 | 5,940 |
2026 | 5,953 |
2027 | 10,470 |
Thereafter | 1,615 |
Operating leases | |
Total | 10,684 |
2023 | 2,093 |
2024 | 1,605 |
2025 | 1,710 |
2026 | 1,723 |
2027 | 1,938 |
Thereafter | 1,615 |
Finance leases | |
Total | 22,036 |
2023 | 5,105 |
2024 | 4,644 |
2025 | 2,233 |
2026 | 2,233 |
2027 | 7,821 |
Thereafter | 0 |
Facilities | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 8,704 |
2023 | 1,997 |
2024 | 2,002 |
2025 | 1,997 |
2026 | 1,997 |
2027 | 711 |
Thereafter | 0 |
Software and Telecommunication | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 774 |
2023 | 387 |
2024 | 387 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Promissory notes as security for letters of credit | $ 111.1 | $ 103 |
Financial Instruments, Fair V_3
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 20, 2019 | Feb. 15, 2018 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Restricted cash and cash equivalents - long-term | $ 4,903 | $ 3,409 | |||
Total Assets | $ 1,335,610 | 1,189,111 | |||
Liability - long-term | 676,405 | 659,044 | |||
Derivative liability | 0 | 2,976 | |||
Liability - current | 241,639 | 227,987 | |||
Asset retirement obligation - current | 141 | 0 | |||
Asset retirement obligation - long-term | 63,358 | 54,525 | |||
Asset retirement obligation | $ 63,499 | 54,525 | $ 48,214 | ||
7.75% Senior Notes | Senior Notes | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Stated interest rate | 7.75% | 7.75% | |||
Debt instrument, fair value disclosure | 241,500 | ||||
6.25% Senior Notes | Senior Notes | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Stated interest rate | 6.25% | 6.25% | |||
Debt instrument, fair value disclosure | $ 243,800 | ||||
Recurring | Level 2 | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Total Assets | 5,343 | 5,122 | |||
Recurring | Not Designated as Hedging Instrument | Level 1 | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
PEF - current | 5,981 | 0 | |||
PEF - long-term | 9,975 | 7,578 | |||
Total Assets | 15,956 | 7,578 | |||
Liabilities | 491,752 | 549,518 | |||
Recurring | Not Designated as Hedging Instrument | Level 1 | DSUs | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Liability - long-term | 6,496 | 4,346 | |||
Recurring | Not Designated as Hedging Instrument | Level 1 | 6.25% Senior Notes due 2025 | Senior Notes | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Debt instrument, fair value disclosure | 243,801 | 273,672 | |||
Recurring | Not Designated as Hedging Instrument | Level 1 | 7.75% Senior Notes | Senior Notes | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Debt instrument, fair value disclosure | 241,455 | 271,500 | |||
Recurring | Not Designated as Hedging Instrument | Level 2 | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Restricted cash and cash equivalents - long-term | 5,343 | 4,903 | |||
Debt instrument, fair value disclosure | 0 | 66,987 | |||
Derivative liability | 0 | 2,976 | |||
Liabilities | 25,023 | 82,045 | |||
Recurring | Not Designated as Hedging Instrument | Level 2 | PSUs | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Liability - long-term | 9,941 | 9,372 | |||
Liability - current | 15,082 | 2,710 | |||
Recurring | Not Designated as Hedging Instrument | Level 3 | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Asset retirement obligation - current | 141 | 0 | |||
Asset retirement obligation - long-term | 63,358 | 54,525 | |||
Asset retirement obligation | 63,499 | 54,525 | |||
Recurring | Designated as Hedging Instrument | Level 2 | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative asset | $ 0 | $ 219 |
Financial Instruments, Fair V_4
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 20, 2019 | Feb. 15, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Prepaid equity forwards (in shares) | 16,000,000 | ||||
Investments, fair value | $ 16,000,000 | ||||
Gain on prepaid equity forwards | (1,300,000) | $ 900,000 | $ 0 | ||
Long-term debt | 589,593,000 | $ 654,391,000 | |||
Foreign currency transaction gain, deferred tax assets | 6,000,000 | ||||
Foreign currency transaction gain, tax payable | $ 7,000,000 | ||||
Customer Concentration Risk | Revenue Benchmark | Customer 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Sales to each significant customer as % of oil and gas sales | 10% | 10% | 10% | ||
Customer Concentration Risk | Revenue Benchmark | Customer 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Sales to each significant customer as % of oil and gas sales | 10% | 10% | 10% | ||
Customer Concentration Risk | Revenue Benchmark | Customer 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Sales to each significant customer as % of oil and gas sales | 10% | 10% | 10% | ||
Colombia | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Revenues received in U.S. dollars (as a percent) | 100% | 100% | 100% | ||
Colombia | Geographic Concentration Risk | Oil and natural gas sales | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Sales to each significant customer as % of oil and gas sales | 100% | 100% | 100% | ||
6.25% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 6.25% | 6.25% | |||
Long-term debt | $ 275,900,000 | ||||
Debt instrument, fair value disclosure | $ 243,800,000 | ||||
7.75% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 7.75% | 7.75% | |||
Long-term debt | $ 293,200,000 | ||||
Debt instrument, fair value disclosure | $ 241,500,000 |
Financial Instruments, Fair V_5
Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk - Schedule of Losses or Gains on Financial Instruments Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative instruments loss (gain) | $ 26,611 | $ 48,838 | $ 2,935 |
Unrealized investment loss | 0 | 2,032 | 46,883 |
Loss on sale of investment | 0 | 1,355 | 0 |
Financial instruments (gain) loss | (7) | (18) | 1,164 |
Other financial instruments (gain) loss | (7) | 3,369 | 48,047 |
Commodity price derivative loss (gain) | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative instruments loss (gain) | 26,611 | 48,723 | (220) |
Foreign currency derivative loss | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative instruments loss (gain) | $ 0 | $ 115 | $ 3,155 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 126,873 | $ 26,109 | $ 13,687 | |
Restricted cash and cash equivalents - current | 1,142 | 392 | 427 | |
Restricted cash and cash equivalents - long-term | 4,903 | 3,409 | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents | $ 133,358 | $ 31,404 | $ 17,523 | $ 11,075 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Net Changes in Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable and other long-term assets | $ 2,352 | $ (5,686) | $ 27,607 |
Derivatives | (12,625) | (5,808) | 2,302 |
Inventory | (4,165) | (2,383) | (2,628) |
Other prepaids | (1,775) | (199) | (279) |
Accounts payable and accrued and other long-term liabilities | (5,789) | 48,206 | (47,194) |
Prepaid tax and taxes receivable and payable | 86,319 | 25,024 | 56,254 |
Net changes in assets and liabilities from operating activities | $ 64,317 | $ 59,154 | $ 36,062 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Schedule of Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for income taxes | $ 37,052 | $ 36,352 | $ 14,611 |
Cash paid for interest | 43,363 | 50,109 | 50,209 |
Non-cash investing activities | |||
Net liabilities related to property, plant and equipment, end of year | $ 55,118 | $ 30,142 | $ 28,711 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 2 Months Ended | |
Feb. 21, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||
Investments, fair value | $ 16 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Proceeds from prepaid equity forwards | $ 5.4 | |
Investments, fair value | $ 6 |