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Note 4 - Segment Information | 3 Months Ended
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Mar. 31, 2023
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 4. SEGMENT INFORMATION The Company’s operations are based in Gabon and the Company has an undeveloped block in Equatorial Guinea. Each of the Company’s two reportable operating segments is organized and managed based upon geographic location. The Company’s Chief Executive Officer, who is the chief operating decision maker, and management review and evaluate 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. Segment activity of continuing operations for the three months ended March 31, 2023 and 2022 as well as long-lived assets and segment assets at March 31, 2023 and December 31, 2022 are as follows:
|  | Three Months Ended March 31, 2023 |
(in thousands) |  | Gabon |  |  | Egypt |  |  | Canada |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Crude oil, natural gas and natural gas liquids sales |  | $ | 36,737 |  |  | $ | 34,784 |  |  | $ | 8,882 |  |  | $ | — |  |  | $ | — |  |  | $ | 80,403 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production expense |  |  | 14,415 |  |  |  | 11,110 |  |  |  | 2,254 |  |  |  | 362 |  |  |  | 59 |  |  |  | 28,200 |
Exploration expense |  |  | 8 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8 |
Depreciation, depletion and amortization |  |  | 9,845 |  |  |  | 10,795 |  |  |  | 3,711 |  |  |  | — |  |  |  | 66 |  |  |  | 24,417 |
General and administrative expense |  |  | 618 |  |  |  | 179 |  |  |  | — |  |  |  | 129 |  |  |  | 4,298 |  |  |  | 5,224 |
Credit losses and other |  |  | 935 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 935 |
Total operating costs and expenses |  |  | 25,821 |  |  |  | 22,084 |  |  |  | 5,965 |  |  |  | 491 |  |  |  | 4,423 |  |  |  | 58,784 |
Operating income (loss) |  |  | 10,916 |  |  |  | 12,700 |  |  |  | 2,917 |  |  |  | (491 | ) |  |  | (4,423 | ) |  |  | 21,619 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments gain, net |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 21 |  |  |  | 21 |
Interest (expense) income, net |  |  | (1,507 | ) |  |  | (808 | ) |  |  | (4 | ) |  |  | — |  |  |  | 73 |  |  |  | (2,246 | )
Other income (expense), net |  |  | 517 |  |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | (1,656 | ) |  |  | (1,140 | )
Total other expense, net |  |  | (990 | ) |  |  | (808 | ) |  |  | (4 | ) |  |  | (1 | ) |  |  | (1,562 | ) |  |  | (3,365 | )
Income (loss) from continuing operations before income taxes |  |  | 9,926 |  |  |  | 11,892 |  |  |  | 2,913 |  |  |  | (492 | ) |  |  | (5,985 | ) |  |  | 18,254 |
Income tax expense |  |  | 6,578 |  |  |  | 4,992 |  |  |  | — |  |  |  | — |  |  |  | 3,201 |  |  |  | 14,771 |
Income (loss) from continuing operations |  |  | 3,348 |  |  |  | 6,900 |  |  |  | 2,913 |  |  |  | (492 | ) |  |  | (9,186 | ) |  |  | 3,483 |
Loss from discontinued operations, net of tax |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (13 | ) |  |  | (13 | )
Net income (loss) |  | $ | 3,348 |  |  | $ | 6,900 |  |  | $ | 2,913 |  |  | $ | (492 | ) |  | $ | (9,199 | ) |  | $ | 3,470 |
Consolidated capital expenditures |  | $ | 3,689 |  |  | $ | 11,571 |  |  | $ | 10,165 |  |  | $ | — |  |  | $ | — |  |  | $ | 25,425 |
|  | Three Months Ended March 31, 2022 |
(in thousands) |  | Gabon |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Crude oil and natural gas sales |  | $ | 68,656 |  |  | $ | — |  |  | $ | — |  |  | $ | 68,656 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production expense |  |  | 18,081 |  |  |  | 219 |  |  |  | 60 |  |  |  | 18,360 |
Exploration expense |  |  | 127 |  |  |  | — |  |  |  | — |  |  |  | 127 |
Depreciation, depletion and amortization |  |  | 4,653 |  |  |  | — |  |  |  | 20 |  |  |  | 4,673 |
General and administrative expense |  |  | 593 |  |  |  | 99 |  |  |  | 4,302 |  |  |  | 4,994 |
Credit losses and other |  |  | 492 |  |  |  | — |  |  |  | — |  |  |  | 492 |
Total operating costs and expenses |  |  | 23,946 |  |  |  | 318 |  |  |  | 4,382 |  |  |  | 28,646 |
Other operating expense, net |  |  | (5 | ) |  |  | — |  |  |  | — |  |  |  | (5 | )
Operating income |  |  | 44,705 |  |  |  | (318 | ) |  |  | (4,382 | ) |  |  | 40,005 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments loss, net |  |  | — |  |  |  | — |  |  |  | (31,758 | ) |  |  | (31,758 | )
Interest (expense) income, net |  |  | (6 | ) |  |  | — |  |  |  | 3 |  |  |  | (3 | )
Other expense, net |  |  | (638 | ) |  |  | (1 | ) |  |  | (57 | ) |  |  | (696 | )
Total other expense, net |  |  | (644 | ) |  |  | (1 | ) |  |  | (31,812 | ) |  |  | (32,457 | )
Income from continuing operations before income taxes |  |  | 44,061 |  |  |  | (319 | ) |  |  | (36,194 | ) |  |  | 7,548 |
Income tax (benefit) expense |  |  | 7,858 |  |  |  | — |  |  |  | (12,486 | ) |  |  | (4,628 | )
Income (loss) from continuing operations |  |  | 36,203 |  |  |  | (319 | ) |  |  | (23,708 | ) |  |  | 12,176 |
Loss from discontinued operations, net of tax |  |  | — |  |  |  | — |  |  |  | (12 | ) |  |  | (12 | )
Net income (loss) |  | $ | 36,203 |  |  | $ | (319 | ) |  | $ | (23,720 | ) |  | $ | 12,164 |
Consolidated capital expenditures |  | $ | 31,780 |  |  | $ | — |  |  | $ | — |  |  | $ | 31,780 |
(in thousands) |  | Gabon |  |  | Egypt |  |  | Canada |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Long-lived assets from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of March 31, 2023 |  | $ | 209,127 |  |  | $ | 170,249 |  |  | $ | 109,824 |  |  | $ | 10,000 |  |  | $ | 753 |  |  | $ | 499,953 |
As of December 31, 2022 (1) |  |  | 213,204 |  |  | $ | 168,012 |  |  | $ | 103,263 |  |  | $ | 10,000 |  |  | $ | 793 |  |  | $ | 495,272 |
(1) - Includes assets acquired in the TransGlobe acquisition
(in thousands) |  | Gabon |  |  | Egypt |  |  | Canada |  |  | Equatorial Guinea |  |  | Corporate and Other |  |  | Total |
Total assets from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of March 31, 2023 |  | $ | 381,009 |  |  | $ | 270,629 |  |  | $ | 116,554 |  |  | $ | 11,013 |  |  | $ | 44,778 |  |  | $ | 823,983 |
As of December 31, 2022 (1) |  |  | 395,393 |  |  | $ | 293,640 |  |  | $ | 110,071 |  |  | $ | 10,861 |  |  | $ | 45,676 |  |  | $ | 855,641 |
(1) - Includes assets acquired in the TransGlobe 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. The Company was previously party to a COSPA with ExxonMobil Sales and Supply LLC (“Exxon”) 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. This COSPA has been terminated. As discussed further in Note 11, 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). 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. For the three months ended March 31, 2023 sales of crude oil to Glencore made up 100% of Etame revenues. For the three months ended March 31, 2022 sales of crude oil to ExxonMobil Sales and Supply LLC made up 100% of Etame revenues. For the three months ended March 31, 2023, Mercuria covered 100% of the Company’s crude oil sales in Egypt. For the three months ended March 31, 2023, revenues in Canada were concentrated in two separate customers that constituted approximately 59% and 21% of revenues. Concentrations of accounts receivable are similar to the revenue percentages.

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- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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