XML 97 R16.htm IDEA: XBRL DOCUMENT
v3.25.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income (loss) before income taxes is attributable as follows:
|  | Year Ended December 31,
(in thousands) |  | 2024 |  | 2023 |  | 2022
U.S. |  | $ | (26,337) |  |  | $ | (15,781) |  |  | $ | (56,750) |
Foreign |  | 166,134 |  |  | 165,927 |  |  | 180,132 |
|  | $ | 139,797 |  |  | $ | 150,146 |  |  | $ | 123,382 |
Provision for income taxes related to income (loss) consists of the following:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
U.S. Federal: | (in thousands)
Current | $ | — |  |  | $ | — |  |  | $ | — |
Deferred | (1,698) |  |  | 6,214 |  |  | (3,344) |
Foreign: |  |  |  |  |
Current | 98,882 |  |  | 92,642 |  |  | 26,615 |
Deferred | (15,877) |  |  | (9,079) |  |  | 48,149 |
Total | $ | 81,307 |  |  | $ | 89,777 |  |  | $ | 71,420 |
The reconciliation of income tax expense (benefit) to income tax at the U.S. statutory rate is as follows:
|  | Year Ended December 31,
(in thousands) |  | 2024 |  | 2023 |  | 2022
Tax provision computed at U.S. statutory rate |  | $ | 29,360 |  |  | $ | 31,530 |  |  | $ | 25,910 |
Foreign taxes not offset in U.S. by foreign tax credits |  | 14,833 |  |  | 25,719 |  |  | 53,851 |
Permanent differences |  | 932 |  |  | 3,455 |  |  | 778 |
Foreign tax credit expirations |  | — |  |  | — |  |  | 17,247 |
Increase/(decrease) in valuation allowance |  | 34,281 |  |  | 27,656 |  |  | (25,623) |
Bargain purchase gain |  | (2,842) |  |  | — |  |  | — |
Other |  | 4,743 |  |  | 1,417 |  |  | (743) |
Total income tax expense (benefit) |  | $ | 81,307 |  |  | $ | 89,777 |  |  | $ | 71,420 |
Deferred tax assets and liabilities, which are computed on the estimated income tax effect of temporary differences between financial and tax bases in assets and liabilities, are determined using the tax rates expected to be in effect when taxes are actually paid or recovered. In assessing the realizability of the deferred tax assets, the Company considers all available positive and negative evidence by jurisdiction to estimate whether it is more likely than not that sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which the deferred tax assets can be utilized. Numerous judgments and assumptions are inherent in this assessment, including the determination of future taxable income, future operating conditions, particularly as related to prevailing crude oil prices. On the basis of this evaluation, as of December 31, 2024, a valuation allowance of $173.1 million has been recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are reduced or increased. The tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows:
|  | December 31,
(in thousands) |  | 2024 |  | 2023
Deferred tax assets: |  |  |  |
Fixed assets(1) |  | $ | 35,541 |  |  | $ | 9,132 |
Foreign tax credit carryforward |  | 123,660 |  |  | 55,069 |
Net operating losses |  | 56,317 |  |  | 32,306 |
Asset retirement obligations |  | 20,384 |  |  | 9,631 |
ROU lease liabilities |  | 9,973 |  |  | 10,345 |
Accrued liabilities |  | 19,686 |  |  | 3,808 |
Receivables |  | (1,788) |  |  | (146) |
Other |  | 2,682 |  |  | 719 |
Total deferred tax assets |  | 266,455 |  |  | 120,864 |
Valuation allowance |  | (173,140) |  |  | (83,893) |
Net deferred tax assets |  | $ | 93,315 |  |  | $ | 36,971 |
Deferred tax liabilities: |  |  |  |
Basis difference in fixed assets |  | (131,639) |  |  | (81,310) |
Net deferred tax liabilities |  | $ | (131,639) |  |  | $ | (81,310) |
(1)This line includes ROU lease asset. The Corporation’s undistributed earnings from subsidiary companies outside the United States include amounts that have been retained to fund prior and future capital project expenditures. Deferred income taxes have not been recorded for potential future tax obligations, such as foreign withholding tax and state tax, as these undistributed earnings are expected to be indefinitely reinvested for the foreseeable future. As of December 31, 2024, it is not practicable to estimate the unrecognized deferred tax liability. However, unrecognized deferred taxes on remittance of these funds are not expected to be material. The Company has NOL’s, in the following jurisdictions as of December 31, 2024:
Jurisdiction |  | Amount (in thousands) |  | Expiration Period
U.S. |  | $ | — |  |  | No expiration
Gabon |  | $ | — |  |  | No expiration
Egypt |  | $ | 18,322 |  |  | 2025-2029
Canada |  | $ | 77,132 |  |  | 2032-2041
Equatorial Guinea |  | $ | 124,589 |  |  | No expiration
UK |  | $ | — |  |  | No expiration
The Company recognizes the financial statement benefit of a tax position only after determining that they are more likely than not to sustain the position following an audit. The Company believes that its income tax positions and deductions will be sustained on audit, and therefore no reserves for uncertain tax positions have been established. Accordingly, no interest or penalties have been accrued as of December 31, 2024 and 2023. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the years ended December 31, 2024, 2023 and 2022, the Company is subject to foreign and U.S. federal taxes only, with no allocations made to state and local taxes. The following table summarizes the tax years that remain subject to examination by major tax jurisdictions.
Jurisdiction |  | Years
U.S. |  | 2014-2024
Gabon |  | 2020-2024
Egypt |  | 2019-2024
Canada |  | 2019-2024
Sweden |  | 2018-2024
Cote d'Ivoire |  | 2020-2024

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

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration