XML 69 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Note 5 - Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2022
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 5. SEGMENT INFORMATION The Company’s operations are based in Gabon, Egypt, Canada and Equatorial Guinea. Each of the reportable operating segments are organized and managed based upon geographic location. The Company’s Chief Executive Officer, who is the chief operating decision maker evaluates the operation of each geographic segment separately primarily based on Operating income (loss). The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues are based on the location of hydrocarbon production. Corporate and other is primarily corporate and operations support costs that are not allocated to the reportable operating segments. No transactions occurred between segments. Segment activity of continuing operations for the years ended December 31, 2022, 2021 and 2020 and long-lived assets and segment assets at December 31, 2022 and 2021 are as follows:
|  | Year ended December 31, 2022 |
(in thousands) |  | Gabon |  |  | Egypt |  |  | Canada |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Crude oil, natural gas and natural gas liquids sales |  | $ | 306,775 |  |  | $ | 37,710 |  |  | $ | 9,841 |  |  | $ | — |  |  | $ | — |  |  | $ | 354,326 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production expense |  |  | 96,854 |  |  |  | 11,936 |  |  |  | 1,972 |  |  |  | 1,899 |  |  |  | — |  |  |  | 112,661 |
FPSO demobilization |  |  | 8,867 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,867 |
Exploration expense |  |  | 258 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 258 |
Depreciation, depletion and amortization |  |  | 34,651 |  |  |  | 10,444 |  |  |  | 2,921 |  |  |  | — |  |  |  | 127 |  |  |  | 48,143 |
General and administrative expense |  |  | 3,101 |  |  |  | — |  |  |  | — |  |  |  | 538 |  |  |  | 6,438 |  |  |  | 10,077 |
Bad debt expense and other |  |  | 2,743 |  |  |  | — |  |  |  | — |  |  |  | 339 |  |  |  | — |  |  |  | 3,082 |
Total operating costs and expenses |  |  | 146,474 |  |  |  | 22,380 |  |  |  | 4,893 |  |  |  | 2,776 |  |  |  | 6,565 |  |  |  | 183,088 |
Other operating income, net |  |  | 38 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 38 |
Operating income (loss) |  |  | 160,339 |  |  |  | 15,330 |  |  |  | 4,948 |  |  |  | (2,776 | ) |  |  | (6,565 | ) |  |  | 171,276 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments gain (loss), net |  |  | — |  |  |  | — |  |  |  | 13 |  |  |  | — |  |  |  | (37,825 | ) |  |  | (37,812 | )
Interest (expense) income, net |  |  | (1,446 | ) |  |  | (596 | ) |  |  | — |  |  |  | — |  |  |  | 8 |  |  |  | (2,034 | )
Other expense, net |  |  | (1,484 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (6,564 | ) |  |  | (8,048 | )
Total other Income (expense), net |  |  | (2,930 | ) |  |  | (596 | ) |  |  | 13 |  |  |  | — |  |  |  | (44,381 | ) |  |  | (47,894 | )
Income (loss) from continuing operations before income taxes |  |  | 157,409 |  |  |  | 14,734 |  |  |  | 4,961 |  |  |  | (2,776 | ) |  |  | (50,946 | ) |  |  | 123,382 |
Income tax (benefit) expense |  |  | 68,509 |  |  |  | 6,254 |  |  |  | — |  |  |  | 1 |  |  |  | (3,344 | ) |  |  | 71,420 |
Income (loss) from continuing operations |  |  | 88,900 |  |  |  | 8,480 |  |  |  | 4,961 |  |  |  | (2,777 | ) |  |  | (47,602 | ) |  |  | 51,962 |
Loss from discontinued operations, net of tax |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (72 | ) |  |  | (72 | )
Net income (loss) |  | $ | 88,900 |  |  | $ | 8,480 |  |  | $ | 4,961 |  |  | $ | (2,777 | ) |  | $ | (47,674 | ) |  | $ | 51,890 |
Consolidated capital expenditures (1) |  | $ | 162,375 |  |  | $ | 168,012 |  |  | $ | 103,263 |  |  | $ | — |  |  | $ | 710 |  |  | $ | 434,360 |
(1) - Includes assets acquired in the TransGlobe acquisition
|  | Year Ended December 31, 2021 |
(in thousands) |  | Gabon |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Crude oil and natural gas sales |  | $ | 199,075 |  |  | $ | — |  |  | $ | — |  |  | $ | 199,075 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production expense |  |  | 80,717 |  |  |  | 532 |  |  |  | 6 |  |  |  | 81,255 |
Exploration expense |  |  | 1,579 |  |  |  | — |  |  |  | — |  |  |  | 1,579 |
Depreciation, depletion and amortization |  |  | 20,972 |  |  |  | — |  |  |  | 88 |  |  |  | 21,060 |
General and administrative expense |  |  | 1,301 |  |  |  | 321 |  |  |  | 13,144 |  |  |  | 14,766 |
Bad debt expense and other |  |  | 875 |  |  |  | - |  |  |  | — |  |  |  | 875 |
Total operating costs and expenses |  |  | 105,444 |  |  |  | 853 |  |  |  | 13,238 |  |  |  | 119,535 |
Other operating expense, net |  |  | (440 | ) |  |  | — |  |  |  | — |  |  |  | (440 | )
Operating income |  |  | 93,191 |  |  |  | (853 | ) |  |  | (13,238 | ) |  |  | 79,100 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments loss, net |  |  | — |  |  |  | — |  |  |  | (22,826 | ) |  |  | (22,826 | )
Interest income, net |  |  | — |  |  |  | — |  |  |  | 10 |  |  |  | 10 |
Other (expense) income, net |  |  | 6,925 |  |  |  | (3 | ) |  |  | (3,428 | ) |  |  | 3,494 |
Total other income (expense), net |  |  | 6,925 |  |  |  | (3 | ) |  |  | (26,244 | ) |  |  | (19,322 | )
Income (loss) from continuing operations before income taxes |  |  | 100,116 |  |  |  | (856 | ) |  |  | (39,482 | ) |  |  | 59,778 |
Income tax (benefit) expense |  |  | 12,392 |  |  |  | 1 |  |  |  | (34,549 | ) |  |  | (22,156 | )
Income (loss) from continuing operations |  |  | 87,724 |  |  |  | (857 | ) |  |  | (4,933 | ) |  |  | 81,934 |
Loss from discontinued operations, net of tax |  |  | — |  |  |  | — |  |  |  | (98 | ) |  |  | (98 | )
Net income (loss) |  | $ | 87,724 |  |  | $ | (857 | ) |  | $ | (5,031 | ) |  | $ | 81,836 |
Consolidated capital expenditures (1) |  | $ | 79,169 |  |  | $ | — |  |  | $ | 52 |  |  | $ | 79,221 |
(1) Includes assets acquired in the Sasol acquisition.
|  | Year Ended December 31, 2020 |
(in thousands) |  | Gabon |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Crude oil and natural gas sales |  | $ | 67,176 |  |  | $ | — |  |  | $ | — |  |  | $ | 67,176 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production expense |  |  | 37,298 |  |  |  | 1 |  |  |  | 16 |  |  |  | 37,315 |
Exploration expense |  |  | 3,588 |  |  |  | — |  |  |  | — |  |  |  | 3,588 |
Depreciation, depletion and amortization |  |  | 9,028 |  |  |  | — |  |  |  | 354 |  |  |  | 9,382 |
Impairment of proved crude oil and natural gas properties |  |  | 30,625 |  |  |  | — |  |  |  | — |  |  |  | 30,625 |
General and administrative expense |  |  | 1,064 |  |  |  | 430 |  |  |  | 9,201 |  |  |  | 10,695 |
Bad debt expense and other |  |  | 1,165 |  |  |  | — |  |  |  | — |  |  |  | 1,165 |
Total operating costs and expenses |  |  | 82,768 |  |  |  | 431 |  |  |  | 9,571 |  |  |  | 92,770 |
Other operating expense, net |  |  | (1,669 | ) |  |  | — |  |  |  | — |  |  |  | (1,669 | )
Operating loss |  |  | (17,261 | ) |  |  | (431 | ) |  |  | (9,571 | ) |  |  | (27,263 | )
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments gain, net |  |  | — |  |  |  | — |  |  |  | 6,577 |  |  |  | 6,577 |
Interest income, net |  |  | — |  |  |  | — |  |  |  | 155 |  |  |  | 155 |
Other (expense) income, net |  |  | 194 |  |  |  | 3 |  |  |  | (68 | ) |  |  | 129 |
Total other expense, net |  |  | 194 |  |  |  | 3 |  |  |  | 6,664 |  |  |  | 6,861 |
Loss from continuing operations before income taxes |  |  | (17,067 | ) |  |  | (428 | ) |  |  | (2,907 | ) |  |  | (20,402 | )
Income tax expense |  |  | 16,204 |  |  |  | 1 |  |  |  | 11,476 |  |  |  | 27,681 |
Loss from continuing operations |  |  | (33,271 | ) |  |  | (429 | ) |  |  | (14,383 | ) |  |  | (48,083 | )
Loss from discontinued operations, net of tax |  |  | — |  |  |  | — |  |  |  | (98 | ) |  |  | (98 | )
Net loss |  | $ | (33,271 | ) |  | $ | (429 | ) |  | $ | (14,481 | ) |  | $ | (48,181 | )
Consolidated capital expenditures |  | $ | 10,503 |  |  | $ | — |  |  | $ | (9 | ) |  | $ | 10,494 |
(in thousands) |  | Gabon |  |  | Egypt |  |  | Canada |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Long-lived assets from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 (1) |  | $ | 213,204 |  |  | $ | 168,012 |  |  | $ | 103,263 |  |  | $ | 10,000 |  |  | $ | 793 |  |  | $ | 495,272 |
As of December 31, 2021 (2) |  |  | 84,156 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,000 |  |  | $ | 168 |  |  | $ | 94,324 |
(1) - Includes assets acquired in the TransGlobe acquisition (2) - Includes assets acquired in the Sasol acquisition
(in thousands) |  | Gabon |  |  | Egypt |  |  | Canada |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Total assets from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 (1) |  | $ | 395,393 |  |  | $ | 293,640 |  |  | $ | 110,071 |  |  | $ | 10,861 |  |  | $ | 45,676 |  |  | $ | 855,641 |
As of December 31, 2021 (2) |  |  | 201,748 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,548 |  |  | $ | 50,794 |  |  | $ | 263,090 |
(1) - Includes assets acquired in the TransGlobe acquisition (2) - Includes assets acquired in the Sasol acquisition Information about the Company’s most significant customers The Company currently sells crude oil production from Gabon under term crude oil sales and purchase agreements (“COSPAs”) or crude oil sales and marketing agreements ("COSMA or COSMAs") with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. As discussed further in Note 13, on May 16, 2022, VAALCO Gabon (Etame), Inc. (the “Borrower”) entered into a facility agreement (the “Facility Agreement”) by and among the Company, VAALCO Gabon, SA (“VAALCO Gabon”), Glencore Energy UK Ltd., as mandated lead arranger, technical bank and facility agent (“Glencore”), the Law Debenture Trust Corporation P.L.C., as security agent, and the other financial institutions named therein (the “Lenders”), providing for a senior secured reserve-based revolving credit facility (the “Facility”) in an initial aggregate maximum principal amount available of up to $50.0 million. In connection with the entry into the Facility Agreement, the Company entered into a COSMA with Glencore pursuant to which the Company agreed to make Glencore the exclusive offtaker and marketer of all of the crude oil produced from the Etame G4-160 Block, offshore Gabon during the period from August 1, 2022 until the final maturity date of the Facility (as defined in the Facility Agreement) which is May 15, 2027 unless early terminated. Pursuant to the COSMA, Glencore agreed to buy and market the Company’s crude oil with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. From February 2019 through January 2020, crude oil sales were to Mercuria Energy Trading SA (“Mercuria”). The Company entered an COSPA and amendments with ExxonMobil that covered sales from February 2020 through July 2022 with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. For the year ended December 31, 2022, Etame revenues from the sales of crude oil to Exxon made up 68% of revenues and sales of crude oil to Glencore made up 32% of revenues. For the period of October 14, 2022 through December 31, 2022, EGPC covered 100% of the Company’s crude oil sales in Egypt. For the period of October 14, 2022 through December 31, 2022, revenues in Canada were concentrated in three separate customers that constituted approximately 54%, 32% and 14% of revenues. Concentrations of accounts receivable are similar to the revenue percentages.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration