We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Gran Tierra Energy Inc | AMEX:GTE | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.51 | 6.23% | 8.70 | 8.895 | 7.90 | 8.00 | 685,290 | 23:58:29 |
|
☒
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
98-0479924
|
|||
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|||
900, 520 - 3 Avenue SW
|
|||||
|
Calgary,
|
Alberta
|
Canada
|
T2P 0R3
|
|
(Address of principal executive offices, including zip code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.001 per share
|
GTE
|
NYSE American
|
Toronto Stock Exchange
|
||
London Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
|
|
Page
|
PART I
|
Financial Information
|
|
Item 1.
|
Financial Statements
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Item 4.
|
Controls and Procedures
|
|
|
|
|
PART II
|
Other Information
|
|
Item 1.
|
Legal Proceedings
|
|
Item 1A.
|
Risk Factors
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Item 6.
|
Exhibits
|
|
SIGNATURES
|
bbl
|
barrel
|
BOE
|
barrels of oil equivalent
|
bopd
|
barrels of oil per day
|
BOEPD
|
barrels of oil equivalent per day
|
Mcf
|
thousand cubic feet
|
NAR
|
net after royalty
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
OIL AND NATURAL GAS SALES
(Note 6) |
$
|
132,491
|
|
|
$
|
175,118
|
|
|
$
|
443,049
|
|
|
$
|
476,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EXPENSES
|
|
|
|
|
|
|
|
||||||||
Operating
|
35,603
|
|
|
29,511
|
|
|
104,119
|
|
|
78,019
|
|
||||
Workover
|
10,979
|
|
|
13,106
|
|
|
30,025
|
|
|
25,922
|
|
||||
Transportation
|
3,179
|
|
|
7,505
|
|
|
16,167
|
|
|
21,024
|
|
||||
Depletion, depreciation and accretion
|
49,812
|
|
|
51,630
|
|
|
164,430
|
|
|
137,698
|
|
||||
General and administrative
|
7,637
|
|
|
13,811
|
|
|
25,874
|
|
|
37,173
|
|
||||
Severance
|
140
|
|
|
1,004
|
|
|
1,082
|
|
|
2,015
|
|
||||
Foreign exchange loss (gain)
|
6,840
|
|
|
(888
|
)
|
|
5,581
|
|
|
386
|
|
||||
Financial instruments loss (gain) (Note 9)
|
12,285
|
|
|
(4,874
|
)
|
|
(2,890
|
)
|
|
6,840
|
|
||||
Loss on redemption of Convertible Notes (Note 4)
|
11,305
|
|
|
—
|
|
|
11,305
|
|
|
—
|
|
||||
Interest expense (Note 4)
|
12,153
|
|
|
7,404
|
|
|
30,655
|
|
|
20,274
|
|
||||
|
149,933
|
|
|
118,209
|
|
|
386,348
|
|
|
329,351
|
|
||||
|
|
|
|
|
|
|
|
||||||||
INTEREST INCOME
|
130
|
|
|
725
|
|
|
660
|
|
|
2,121
|
|
||||
(LOSS) INCOME BEFORE INCOME TAXES
|
(17,312
|
)
|
|
57,634
|
|
|
57,361
|
|
|
149,562
|
|
||||
|
|
|
|
|
|
|
|
||||||||
INCOME TAX EXPENSE (RECOVERY)
|
|
|
|
|
|
|
|
||||||||
Current (Note 7)
|
3,049
|
|
|
19,108
|
|
|
13,923
|
|
|
36,224
|
|
||||
Deferred (Note 7)
|
8,472
|
|
|
(36,769
|
)
|
|
31,752
|
|
|
(118
|
)
|
||||
|
11,521
|
|
|
(17,661
|
)
|
|
45,675
|
|
|
36,106
|
|
||||
NET AND COMPREHENSIVE (LOSS) INCOME
|
$
|
(28,833
|
)
|
|
$
|
75,295
|
|
|
$
|
11,686
|
|
|
$
|
113,456
|
|
|
|
|
|
|
|
|
|
||||||||
NET (LOSS) INCOME PER SHARE
|
|
|
|
|
|
|
|
||||||||
- BASIC
|
$
|
(0.08
|
)
|
|
$
|
0.19
|
|
|
$
|
0.03
|
|
|
$
|
0.29
|
|
- DILUTED
|
$
|
(0.08
|
)
|
|
$
|
0.18
|
|
|
$
|
0.03
|
|
|
$
|
0.28
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 5)
|
372,195,176
|
|
|
391,209,589
|
|
|
379,701,405
|
|
|
391,185,636
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 5)
|
372,195,176
|
|
|
427,947,959
|
|
|
379,701,664
|
|
|
427,416,964
|
|
|
As at September 30, 2019
|
|
As at December 31, 2018
|
||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents (Note 10)
|
$
|
13,959
|
|
|
$
|
51,040
|
|
Restricted cash and cash equivalents (Note 10)
|
676
|
|
|
1,269
|
|
||
Accounts receivable
|
27,334
|
|
|
26,177
|
|
||
Investment (Note 9)
|
41,979
|
|
|
32,724
|
|
||
Taxes receivable
|
100,205
|
|
|
78,259
|
|
||
Other assets
|
16,824
|
|
|
13,056
|
|
||
Total Current Assets
|
200,977
|
|
|
202,525
|
|
||
|
|
|
|
||||
Oil and Gas Properties
|
|
|
|
|
|
||
Proved
|
1,063,386
|
|
|
853,428
|
|
||
Unproved
|
504,779
|
|
|
456,598
|
|
||
Total Oil and Gas Properties
|
1,568,165
|
|
|
1,310,026
|
|
||
Other capital assets
|
5,139
|
|
|
2,751
|
|
||
Total Property, Plant and Equipment
|
1,573,304
|
|
|
1,312,777
|
|
||
|
|
|
|
||||
Other Long-Term Assets
|
|
|
|
|
|
||
Deferred tax assets
|
44,886
|
|
|
45,437
|
|
||
Investment (Note 9)
|
4,868
|
|
|
8,711
|
|
||
Taxes receivable
|
29,036
|
|
|
—
|
|
||
Other
|
4,209
|
|
|
4,553
|
|
||
Goodwill
|
102,581
|
|
|
102,581
|
|
||
Total Other Long-Term Assets
|
185,580
|
|
|
161,282
|
|
||
Total Assets
|
$
|
1,959,861
|
|
|
$
|
1,676,584
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
201,569
|
|
|
$
|
154,670
|
|
Derivatives (Note 9)
|
747
|
|
|
1,017
|
|
||
Taxes payable
|
—
|
|
|
4,149
|
|
||
Equity compensation award liability (Note 5 and 9)
|
3,661
|
|
|
9,544
|
|
||
Total Current Liabilities
|
205,977
|
|
|
169,380
|
|
||
|
|
|
|
||||
Long-Term Liabilities
|
|
|
|
|
|
||
Long-term debt (Notes 4 and 9)
|
637,601
|
|
|
399,415
|
|
||
Deferred tax liabilities
|
53,930
|
|
|
23,419
|
|
||
Asset retirement obligation
|
48,411
|
|
|
43,676
|
|
||
Equity compensation award liability (Note 5 and 9)
|
4,544
|
|
|
8,139
|
|
||
Other
|
4,346
|
|
|
2,805
|
|
||
Total Long-Term Liabilities
|
748,832
|
|
|
477,454
|
|
||
|
|
|
|
||||
Contingencies (Note 8)
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
|
|
||
Common Stock (Note 5) (366,981,556 and 387,079,027 shares issued and outstanding of Common Stock, par value $0.001 per share, as at September 30, 2019, and December 31, 2018, respectively)
|
10,270
|
|
|
10,290
|
|
||
Additional paid in capital
|
1,282,074
|
|
|
1,318,048
|
|
||
Deficit
|
(287,292
|
)
|
|
(298,588
|
)
|
||
Total Shareholders’ Equity
|
1,005,052
|
|
|
1,029,750
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
1,959,861
|
|
|
$
|
1,676,584
|
|
|
Nine Months Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
11,686
|
|
|
$
|
113,456
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|||
Depletion, depreciation and accretion
|
164,430
|
|
|
137,698
|
|
||
Deferred tax expense (recovery)
|
31,752
|
|
|
(118
|
)
|
||
Stock-based compensation (Note 5)
|
1,092
|
|
|
20,477
|
|
||
Amortization of debt issuance costs (Note 4)
|
2,574
|
|
|
2,329
|
|
||
Unrealized foreign exchange loss
|
5,303
|
|
|
159
|
|
||
Financial instruments (gain) loss (Note 9)
|
(2,890
|
)
|
|
6,840
|
|
||
Cash settlement of financial instruments
|
(2,275
|
)
|
|
(26,169
|
)
|
||
Loss on redemption of Convertible Notes (Note 4)
|
11,305
|
|
|
—
|
|
||
Cash settlement of asset retirement obligation
|
(707
|
)
|
|
(456
|
)
|
||
Non-cash lease expenses
|
1,366
|
|
|
—
|
|
||
Lease payments
|
(1,603
|
)
|
|
—
|
|
||
Cash settlement of restricted share units
|
—
|
|
|
(360
|
)
|
||
Net change in assets and liabilities from operating activities (Note 10)
|
(83,606
|
)
|
|
(40,652
|
)
|
||
Net cash provided by operating activities
|
138,427
|
|
|
213,204
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
|
|
||
Additions to property, plant and equipment
|
(310,579
|
)
|
|
(258,551
|
)
|
||
Property acquisitions, net of cash acquired (Note 3)
|
(77,772
|
)
|
|
(20,100
|
)
|
||
Changes in non-cash investing working capital
|
20,138
|
|
|
32,638
|
|
||
Net cash used in investing activities
|
(368,213
|
)
|
|
(246,013
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
|
|
||
Proceeds from bank debt, net of issuance costs
|
246,000
|
|
|
4,988
|
|
||
Repayment of debt
|
(304,000
|
)
|
|
(153,000
|
)
|
||
Repurchase of shares of Common Stock (Note 5)
|
(37,560
|
)
|
|
(1,314
|
)
|
||
Proceeds from exercise of stock options
|
—
|
|
|
1,408
|
|
||
Proceeds from issuance of Senior Notes, net of issuance costs
|
289,298
|
|
|
288,087
|
|
||
Net cash provided by financing activities
|
193,738
|
|
|
140,169
|
|
||
|
|
|
|
||||
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents
|
(1,506
|
)
|
|
(402
|
)
|
||
|
|
|
|
||||
Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents
|
(37,554
|
)
|
|
106,958
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period (Note 10)
|
54,308
|
|
|
26,678
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents, end of period (Note 10)
|
$
|
16,754
|
|
|
$
|
133,636
|
|
|
|
|
|
||||
Supplemental cash flow disclosures (Note 10)
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Share Capital
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
10,285
|
|
$
|
10,295
|
|
|
$
|
10,290
|
|
$
|
10,295
|
|
Issuance of Common Stock
|
—
|
|
1
|
|
|
—
|
|
1
|
|
||||
Repurchase and cancellation of Common Stock (Note 5)
|
(15
|
)
|
(1
|
)
|
|
(20
|
)
|
(1
|
)
|
||||
Balance, end of period
|
10,270
|
|
10,295
|
|
|
10,270
|
|
10,295
|
|
||||
|
|
|
|
|
|
||||||||
Additional Paid in Capital
|
|
|
|
|
|
|
|
||||||
Balance, beginning of period
|
1,295,106
|
|
1,328,037
|
|
|
1,318,048
|
|
1,327,244
|
|
||||
Exercise of stock options
|
—
|
|
562
|
|
|
—
|
|
1,407
|
|
||||
Stock-based compensation (Note 5)
|
563
|
|
489
|
|
|
1,566
|
|
1,645
|
|
||||
Repurchase and cancellation of Common Stock (Note 5)
|
(13,595
|
)
|
(105
|
)
|
|
(37,540
|
)
|
(1,313
|
)
|
||||
Balance, end of period
|
1,282,074
|
|
1,328,983
|
|
|
1,282,074
|
|
1,328,983
|
|
||||
|
|
|
|
|
|
||||||||
Deficit
|
|
|
|
|
|
|
|
||||||
Balance, beginning of period
|
(258,459
|
)
|
(363,043
|
)
|
|
(298,588
|
)
|
(401,204
|
)
|
||||
Net (loss) income
|
(28,833
|
)
|
75,295
|
|
|
11,686
|
|
113,456
|
|
||||
Cumulative adjustment for accounting change related to leases (Note 2)
|
—
|
|
—
|
|
|
(390
|
)
|
—
|
|
||||
Balance, end of period
|
(287,292
|
)
|
(287,748
|
)
|
|
(287,292
|
)
|
(287,748
|
)
|
||||
|
|
|
|
|
|
||||||||
Total Shareholders’ Equity
|
$
|
1,005,052
|
|
$
|
1,051,530
|
|
|
$
|
1,005,052
|
|
$
|
1,051,530
|
|
(Thousands of U.S. Dollars)
|
|
||
Cost of asset acquisition:
|
|
||
Cash
|
$
|
79,100
|
|
Promissory note
|
1,500
|
|
|
|
$
|
80,600
|
|
|
|
||
Allocation of Consideration Paid:
|
|
||
Oil and gas properties
|
|
||
Proved
|
$
|
52,960
|
|
Unproved
|
45,132
|
|
|
|
98,092
|
|
|
Net working capital (including cash acquired of $5.3 million)
|
(17,492
|
)
|
|
|
$
|
80,600
|
|
(Thousands of U.S. Dollars)
|
As at September 30, 2019
|
|
As at December 31, 2018
|
||||
6.25% Senior Notes
|
$
|
300,000
|
|
|
$
|
300,000
|
|
7.75% Senior Notes
|
300,000
|
|
|
—
|
|
||
Convertible notes
|
—
|
|
|
115,000
|
|
||
Revolving credit facility
|
57,000
|
|
|
—
|
|
||
Unamortized debt issuance costs
|
(21,454
|
)
|
|
(15,585
|
)
|
||
Long-term debt
|
635,546
|
|
|
399,415
|
|
||
Long-term lease obligation(1)
|
2,055
|
|
|
—
|
|
||
|
$
|
637,601
|
|
|
$
|
399,415
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Thousands of U.S. Dollars)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Contractual interest and other financing expenses
|
$
|
11,364
|
|
$
|
6,588
|
|
|
$
|
28,081
|
|
$
|
17,945
|
|
Amortization of debt issuance costs
|
789
|
|
816
|
|
|
2,574
|
|
2,329
|
|
||||
|
$
|
12,153
|
|
$
|
7,404
|
|
|
$
|
30,655
|
|
$
|
20,274
|
|
|
Shares of Common Stock
|
|
Balance, December 31, 2018
|
387,079,027
|
|
Shares repurchased and canceled
|
(20,097,471
|
)
|
Balance, September 30, 2019
|
366,981,556
|
|
|
PSUs
|
DSUs
|
|
Stock Options
|
|||||
|
Number of Outstanding Share Units
|
Number of Outstanding Share Units
|
|
Number of Outstanding Stock Options
|
Weighted Average Exercise Price/Stock Option ($)
|
||||
Balance, December 31, 2018
|
9,004,661
|
|
684,893
|
|
|
9,034,412
|
|
3.18
|
|
Granted
|
5,179,906
|
|
352,810
|
|
|
2,391,253
|
|
2.26
|
|
Exercised
|
(2,725,877
|
)
|
—
|
|
|
—
|
|
—
|
|
Forfeited
|
(574,010
|
)
|
—
|
|
|
(943,846
|
)
|
3.94
|
|
Expired
|
—
|
|
—
|
|
|
(129,730
|
)
|
5.41
|
|
Balance, September 30, 2019
|
10,884,680
|
|
1,037,703
|
|
|
10,352,089
|
|
2.87
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||
Weighted average number of common and exchangeable shares outstanding
|
372,195,176
|
|
391,209,589
|
|
|
379,701,405
|
|
391,185,636
|
|
Shares issuable pursuant to stock options
|
—
|
|
6,509,385
|
|
|
14,315
|
|
4,295,964
|
|
Shares assumed to be purchased from proceeds of stock options
|
—
|
|
(5,585,408
|
)
|
|
(14,056
|
)
|
(3,879,029
|
)
|
Shares issuable pursuant to convertible notes
|
—
|
|
35,814,393
|
|
|
—
|
|
35,814,393
|
|
Weighted average number of diluted common and exchangeable shares outstanding
|
372,195,176
|
|
427,947,959
|
|
|
379,701,664
|
|
427,416,964
|
|
Common shares outstanding, as at period end
|
366,981,556
|
|
391,339,489
|
|
|
366,981,556
|
|
391,339,489
|
|
(Thousands of U.S. Dollars)
|
As at September 30, 2019
|
|
As at December 31, 2018
|
||||
Investment - current and long-term
|
$
|
46,847
|
|
|
$
|
41,435
|
|
Derivative asset1
|
1,807
|
|
|
—
|
|
||
|
48,654
|
|
|
41,435
|
|
||
|
|
|
|
||||
Derivative liability
|
$
|
747
|
|
|
$
|
1,017
|
|
PSU and DSU liability
|
8,205
|
|
|
17,683
|
|
||
|
$
|
8,952
|
|
|
$
|
18,700
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Thousands of U.S. Dollars)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Commodity price derivative loss (gain)
|
$
|
(24
|
)
|
$
|
929
|
|
|
$
|
464
|
|
$
|
20,384
|
|
Foreign currency derivatives loss (gain)
|
337
|
|
525
|
|
|
392
|
|
(1,499
|
)
|
||||
Investment loss (gain)
|
11,972
|
|
(6,328
|
)
|
|
(3,746
|
)
|
(12,045
|
)
|
||||
Financial instruments loss (gain)
|
$
|
12,285
|
|
$
|
(4,874
|
)
|
|
$
|
(2,890
|
)
|
$
|
6,840
|
|
|
Nine Months Ended
|
|
Year Ended
|
||||
(Thousands of U.S. Dollars)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Opening balance, investment - long-term
|
$
|
8,711
|
|
|
$
|
19,147
|
|
Transfer from long-term (Level 3) to current (Level 1)
|
(4,352
|
)
|
|
(10,522
|
)
|
||
Unrealized valuation gain
|
148
|
|
|
846
|
|
||
Unrealized foreign exchange gain (loss)
|
361
|
|
|
(760
|
)
|
||
Closing balance, investment - long-term
|
$
|
4,868
|
|
|
$
|
8,711
|
|
Period and type of instrument
|
Volume,
bopd |
Reference
|
Purchased Put ($/bbl, Weighted Average)
|
Sold Call ($/bbl, Weighted Average)
|
Premium ($/bbl, Weighted Average)
|
||||
Purchased Puts: October 1, to December 31, 2019
|
5,000
|
|
ICE Brent
|
60.00
|
|
n/a
|
|
2.39
|
|
Collars: October 1, to December 31, 2019
|
5,000
|
|
ICE Brent
|
60.00
|
|
71.53
|
|
n/a
|
|
Period and type of instrument
|
Amount Hedged
(Millions COP) |
U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars)(1)
|
Reference
|
Floor Price
(COP, Weighted Average) |
Cap Price (COP, Weighted Average)
|
||||
Collars: October 1, to December 31, 2019
|
67,500
|
|
19,497
|
|
COP
|
3,019
|
|
3,446
|
|
(Thousands of U.S. Dollars)
|
As at September 30,
|
|
As at December 31,
|
||||||||||
|
2019
|
2018
|
|
2018
|
2017
|
||||||||
Cash and cash equivalents
|
$
|
13,959
|
|
$
|
130,158
|
|
|
$
|
51,040
|
|
$
|
12,326
|
|
Restricted cash and cash equivalents - current
|
676
|
|
1,228
|
|
|
1,269
|
|
11,787
|
|
||||
Restricted cash and cash equivalents -
long-term (included in other long-term assets)
|
2,119
|
|
2,250
|
|
|
1,999
|
|
2,565
|
|
||||
|
$
|
16,754
|
|
$
|
133,636
|
|
|
$
|
54,308
|
|
$
|
26,678
|
|
|
Nine Months Ended September 30,
|
||||||
(Thousands of U.S. Dollars)
|
2019
|
|
2018
|
||||
Accounts receivable and other long-term assets
|
$
|
3,476
|
|
|
$
|
(35,934
|
)
|
Derivatives
|
(658
|
)
|
|
21,645
|
|
||
Inventory
|
(3,403
|
)
|
|
(3,375
|
)
|
||
Prepaids
|
353
|
|
|
489
|
|
||
Accounts payable and accrued and other long-term liabilities
|
(21,687
|
)
|
|
5,380
|
|
||
Taxes receivable and payable
|
(61,687
|
)
|
|
(28,857
|
)
|
||
Net changes in assets and liabilities from operating activities
|
$
|
(83,606
|
)
|
|
$
|
(40,652
|
)
|
|
Nine Months Ended September 30,
|
||||||
(Thousands of U.S. Dollars)
|
2019
|
|
2018
|
||||
Cash paid for income taxes
|
$
|
38,022
|
|
|
$
|
38,202
|
|
Cash paid for interest
|
$
|
25,850
|
|
|
$
|
14,137
|
|
|
|
|
|
||||
Non-cash investing activities:
|
|
|
|
||||
Net liabilities related to property, plant and equipment, end of period
|
$
|
105,342
|
|
|
$
|
100,790
|
|
•
|
We purchased and canceled $114,999,000 aggregate principal amount of Convertible Notes
|
•
|
Returned $13.6 million to shareholders through the repurchase of 9,654,751 common shares
|
•
|
Net after royalties production ("NAR") was 27,763 BOEPD, 3% lower than the third quarter of 2018. Production decreased as a result of unplanned downtime caused by electrical submersible pump ("ESP") failures at the Acordionero field, the shut-in of several wells in Acordionero due to high gas production and temporary suspension of Suroriente production due to community issues at the beginning of the quarter, partially offset by a decrease in royalties driven by lower oil prices
|
•
|
Oil and natural gas sales volumes(1) were 27,705 BOEPD, 3% lower than the third quarter of 2018. The quarter's decrease in oil and gas sales volumes was commensurate lower production
|
•
|
Net loss was $28.8 million compared with net income of $75.3 million in the third quarter of 2018 primarily due to non-cash items including loss on revaluation of investment and loss on the redemption of the Convertible Notes
|
•
|
Funds flow from operations(2) decreased by 31% to $59.0 million compared with the third quarter of 2018, as a result of lower production and 18% decrease in the price of Brent
|
•
|
Adjusted EBITDA(2) was $67.9 million compared with $110.3 million in the third quarter of 2018
|
•
|
Q3 2019 was an active quarter with capital expenditures of $116.5 million
|
•
|
Oil and gas sales per BOE were $51.98, 22% lower than the third quarter of 2018
|
•
|
Operating netback(2) per BOE was $32.45 for the third quarter of 2019
|
•
|
Operating expenses per BOE were $13.97, 25% higher than the third quarter of 2018 as a result of higher power generation, field operations maintenance and freight and logistics costs and lower production volumes. A significant portion of the Company's operating costs are fixed costs
|
•
|
Workover expenses per BOE were $4.31 during the third quarter of 2019, 13% lower compared to the third quarter of 2018 as a result of lower frequency of ESP failures
|
•
|
Quality and transportation discount per BOE was $10.05 compared with $9.55 in the third quarter of 2018. The increase was due to higher sales at wellhead during the third quarter of 2019 which resulted in a higher transportation discount but lower transportation expenses
|
•
|
Transportation expenses per BOE were $1.25, compared to $2.85 per BOE for the third quarter of 2018
|
(Thousands of U.S. Dollars, unless otherwise indicated)
|
Three Months Ended September 30,
|
|
Three Months Ended June 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
2019
|
2018
|
% Change
|
|
2019
|
|
2019
|
2018
|
% Change
|
||||||||||||
Average Daily Volumes (BOEPD)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
|
|
|
|
|
|
|
|
||||||||||||
Working Interest Production Before Royalties
|
32,918
|
|
36,170
|
|
(9
|
)
|
|
35,340
|
|
|
35,454
|
|
35,553
|
|
—
|
|
|||||
Royalties
|
(5,155
|
)
|
(7,571
|
)
|
(32
|
)
|
|
(6,147
|
)
|
|
(5,929
|
)
|
(7,222
|
)
|
(18
|
)
|
|||||
Production NAR
|
27,763
|
|
28,599
|
|
(3
|
)
|
|
29,193
|
|
|
29,525
|
|
28,331
|
|
4
|
|
|||||
(Increase) Decrease in Inventory
|
(58
|
)
|
60
|
|
(197
|
)
|
|
84
|
|
|
65
|
|
(403
|
)
|
116
|
|
|||||
Sales(1)
|
27,705
|
|
28,659
|
|
(3
|
)
|
|
29,277
|
|
|
29,590
|
|
27,928
|
|
6
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (Loss) Income
|
$
|
(28,833
|
)
|
$
|
75,295
|
|
(138
|
)
|
|
$
|
38,540
|
|
|
$
|
11,686
|
|
$
|
113,456
|
|
(90
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Netback
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Natural Gas Sales
|
$
|
132,491
|
|
$
|
175,118
|
|
(24
|
)
|
|
$
|
157,993
|
|
|
$
|
443,049
|
|
$
|
476,792
|
|
(7
|
)
|
Operating Expenses
|
(35,603
|
)
|
(29,511
|
)
|
21
|
|
|
(33,733
|
)
|
|
(104,119
|
)
|
(78,019
|
)
|
33
|
|
|||||
Workover Expenses
|
(10,979
|
)
|
(13,106
|
)
|
(16
|
)
|
|
(12,757
|
)
|
|
(30,025
|
)
|
(25,922
|
)
|
16
|
|
|||||
Transportation Expenses
|
(3,179
|
)
|
(7,505
|
)
|
(58
|
)
|
|
(4,885
|
)
|
|
(16,167
|
)
|
(21,024
|
)
|
(23
|
)
|
|||||
Operating Netback(2)
|
$
|
82,730
|
|
$
|
124,996
|
|
(34
|
)
|
|
$
|
106,618
|
|
|
$
|
292,738
|
|
$
|
351,827
|
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
G&A Expenses Before Stock-Based Compensation
|
$
|
7,645
|
|
$
|
3,679
|
|
108
|
|
|
$
|
9,268
|
|
|
$
|
24,782
|
|
$
|
17,254
|
|
44
|
|
G&A Stock-Based Compensation (Recovery) Expense
|
(8
|
)
|
10,132
|
|
(100
|
)
|
|
(627
|
)
|
|
1,092
|
|
19,919
|
|
(95
|
)
|
|||||
G&A Expenses, Including Stock-Based Compensation
|
$
|
7,637
|
|
$
|
13,811
|
|
(45
|
)
|
|
$
|
8,641
|
|
|
$
|
25,874
|
|
$
|
37,173
|
|
(30
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted EBITDA(2)
|
$
|
67,930
|
|
$
|
110,340
|
|
(38
|
)
|
|
$
|
97,580
|
|
|
$
|
260,005
|
|
$
|
295,489
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Funds Flow From Operations(2)
|
$
|
59,021
|
|
$
|
85,015
|
|
(31
|
)
|
|
$
|
88,269
|
|
|
$
|
222,740
|
|
$
|
254,312
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital Expenditures
|
$
|
116,495
|
|
$
|
101,463
|
|
15
|
|
|
$
|
99,595
|
|
|
$
|
310,579
|
|
$
|
258,551
|
|
20
|
|
|
Three Months Ended September 30,
|
|
Three Months Ended June 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2019
|
2018
|
|
2019
|
|
2019
|
2018
|
||||||||||
Net (loss) income
|
$
|
(28,833
|
)
|
$
|
75,295
|
|
|
$
|
38,540
|
|
|
$
|
11,686
|
|
$
|
113,456
|
|
Adjustments to reconcile net (loss) income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
||||||||||
DD&A expenses
|
49,812
|
|
51,630
|
|
|
51,697
|
|
|
164,430
|
|
137,698
|
|
|||||
Interest expense
|
12,153
|
|
7,404
|
|
|
10,564
|
|
|
30,655
|
|
20,274
|
|
|||||
Income tax expense (recovery)
|
11,521
|
|
(17,661
|
)
|
|
14,468
|
|
|
45,675
|
|
36,106
|
|
|||||
EBITDA (non-GAAP)
|
44,653
|
|
116,668
|
|
|
115,269
|
|
|
252,446
|
|
307,534
|
|
|||||
Loss on redemption of Convertible Notes
|
11,305
|
|
—
|
|
|
—
|
|
|
11,305
|
|
—
|
|
|||||
Investment loss (gain)
|
11,972
|
|
(6,328
|
)
|
|
(17,689
|
)
|
|
(3,746
|
)
|
(12,045
|
)
|
|||||
Adjusted EBITDA (non-GAAP)
|
67,930
|
|
110,340
|
|
|
97,580
|
|
|
260,005
|
|
295,489
|
|
|
Three Months Ended September 30,
|
|
Three Months Ended June 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2019
|
2018
|
|
2019
|
|
2019
|
2018
|
||||||||||
Net (loss) income
|
$
|
(28,833
|
)
|
$
|
75,295
|
|
|
$
|
38,540
|
|
|
$
|
11,686
|
|
$
|
113,456
|
|
Adjustments to reconcile net (loss) income to funds flow from operations
|
|
|
|
|
|
|
|
||||||||||
DD&A expenses
|
49,812
|
|
51,630
|
|
|
51,697
|
|
|
164,430
|
|
137,698
|
|
|||||
Deferred tax expense (recovery)
|
8,472
|
|
(36,769
|
)
|
|
14,957
|
|
|
31,752
|
|
(118
|
)
|
|||||
Stock-based compensation (recovery) expense
|
(8
|
)
|
10,275
|
|
|
(627
|
)
|
|
1,092
|
|
20,477
|
|
|||||
Amortization of debt issuance costs
|
789
|
|
816
|
|
|
947
|
|
|
2,574
|
|
2,329
|
|
|||||
Cash settlement of RSUs
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
(360
|
)
|
|||||
Non-cash lease expense
|
472
|
|
—
|
|
|
894
|
|
|
1,366
|
|
—
|
|
|||||
Lease payments
|
(755
|
)
|
—
|
|
|
(848
|
)
|
|
(1,603
|
)
|
—
|
|
|||||
Unrealized foreign exchange loss (gain)
|
6,412
|
|
(672
|
)
|
|
2,174
|
|
|
5,303
|
|
159
|
|
|||||
Financial instruments loss (gain)
|
12,285
|
|
(4,874
|
)
|
|
(18,340
|
)
|
|
(2,890
|
)
|
6,840
|
|
|||||
Loss on redemption of Convertible Notes
|
11,305
|
|
—
|
|
|
—
|
|
|
11,305
|
|
—
|
|
|||||
Cash settlement of financial instruments
|
(930
|
)
|
(10,686
|
)
|
|
(1,125
|
)
|
|
(2,275
|
)
|
(26,169
|
)
|
|||||
Funds flow from operations (non-GAAP)
|
$
|
59,021
|
|
$
|
85,015
|
|
|
$
|
88,269
|
|
|
$
|
222,740
|
|
$
|
254,312
|
|
|
Three Months Ended September 30,
|
|
Three Months Ended June 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
2019
|
2018
|
% Change
|
|
2019
|
|
2019
|
2018
|
% Change
|
||||||||||||
(Thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and natural gas sales
|
$
|
132,491
|
|
$
|
175,118
|
|
(24
|
)
|
|
$
|
157,993
|
|
|
$
|
443,049
|
|
$
|
476,792
|
|
(7
|
)
|
Operating expenses
|
35,603
|
|
29,511
|
|
21
|
|
|
33,733
|
|
|
104,119
|
|
78,019
|
|
33
|
|
|||||
Workover expenses
|
10,979
|
|
13,106
|
|
(16
|
)
|
|
12,757
|
|
|
30,025
|
|
25,922
|
|
16
|
|
|||||
Transportation expenses
|
3,179
|
|
7,505
|
|
(58
|
)
|
|
4,885
|
|
|
16,167
|
|
21,024
|
|
(23
|
)
|
|||||
Operating netback(1)
|
82,730
|
|
124,996
|
|
(34
|
)
|
|
106,618
|
|
|
292,738
|
|
351,827
|
|
(17
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
DD&A expenses
|
49,812
|
|
51,630
|
|
(4
|
)
|
|
51,697
|
|
|
164,430
|
|
137,698
|
|
19
|
|
|||||
G&A expenses before stock-based compensation
|
7,645
|
|
3,679
|
|
108
|
|
|
9,268
|
|
|
24,782
|
|
17,254
|
|
44
|
|
|||||
G&A stock-based compensation (recovery) expense
|
(8
|
)
|
10,132
|
|
(100
|
)
|
|
(627
|
)
|
|
1,092
|
|
19,919
|
|
(95
|
)
|
|||||
Severance expenses
|
140
|
|
1,004
|
|
(86
|
)
|
|
270
|
|
|
1,082
|
|
2,015
|
|
(46
|
)
|
|||||
Foreign exchange loss (gain)
|
6,840
|
|
(888
|
)
|
870
|
|
|
1,175
|
|
|
5,581
|
|
386
|
|
1,346
|
|
|||||
Financial instruments loss (gain)
|
12,285
|
|
(4,874
|
)
|
352
|
|
|
(18,340
|
)
|
|
(2,890
|
)
|
6,840
|
|
(142
|
)
|
|||||
Loss on redemption of Convertible Notes
|
11,305
|
|
—
|
|
100
|
|
|
—
|
|
|
11,305
|
|
—
|
|
100
|
|
|||||
Interest expense
|
12,153
|
|
7,404
|
|
64
|
|
|
10,564
|
|
|
30,655
|
|
20,274
|
|
51
|
|
|||||
|
100,172
|
|
68,087
|
|
47
|
|
|
54,007
|
|
|
236,037
|
|
204,386
|
|
15
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
130
|
|
725
|
|
(82
|
)
|
|
397
|
|
|
660
|
|
2,121
|
|
(69
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Loss) Income before income taxes
|
(17,312
|
)
|
57,634
|
|
(130
|
)
|
|
53,008
|
|
|
57,361
|
|
149,562
|
|
(62
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current income tax expense (recovery)
|
3,049
|
|
19,108
|
|
(84
|
)
|
|
(489
|
)
|
|
13,923
|
|
36,224
|
|
(62
|
)
|
|||||
Deferred income tax expense (recovery)
|
8,472
|
|
(36,769
|
)
|
123
|
|
|
14,957
|
|
|
31,752
|
|
(118
|
)
|
27,008
|
|
|||||
|
11,521
|
|
(17,661
|
)
|
165
|
|
|
14,468
|
|
|
45,675
|
|
36,106
|
|
27
|
|
|||||
Net (loss) income
|
$
|
(28,833
|
)
|
$
|
75,295
|
|
(138
|
)
|
|
$
|
38,540
|
|
|
$
|
11,686
|
|
$
|
113,456
|
|
(90
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales Volumes (NAR)
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total sales volumes, BOEPD
|
27,705
|
|
28,659
|
|
(3
|
)
|
|
29,277
|
|
|
29,590
|
|
27,928
|
|
6
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Brent Price per bbl
|
$
|
62.03
|
|
$
|
75.97
|
|
(18
|
)
|
|
$
|
68.32
|
|
|
$
|
64.75
|
|
$
|
72.68
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated Results of Operations per BOE Sales Volumes NAR
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Oil and natural gas sales
|
$
|
51.98
|
|
$
|
66.42
|
|
(22
|
)
|
|
$
|
59.30
|
|
|
$
|
54.85
|
|
$
|
62.54
|
|
(12
|
)
|
Operating expenses
|
13.97
|
|
11.19
|
|
25
|
|
|
12.66
|
|
|
12.89
|
|
10.23
|
|
26
|
|
|||||
Workover expenses
|
4.31
|
|
4.97
|
|
(13
|
)
|
|
4.79
|
|
|
3.72
|
|
3.40
|
|
9
|
|
|||||
Transportation expenses
|
1.25
|
|
2.85
|
|
(56
|
)
|
|
1.83
|
|
|
2.00
|
|
2.76
|
|
(28
|
)
|
Operating netback(1)
|
32.45
|
|
47.41
|
|
(32
|
)
|
|
40.02
|
|
|
36.24
|
|
46.15
|
|
(21
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
DD&A expenses
|
19.54
|
|
19.58
|
|
—
|
|
|
19.40
|
|
|
20.35
|
|
18.06
|
|
13
|
|
|||||
G&A expenses before stock-based compensation
|
3.00
|
|
1.40
|
|
114
|
|
|
3.48
|
|
|
3.07
|
|
2.26
|
|
36
|
|
|||||
G&A stock-based compensation (recovery) expense
|
—
|
|
3.84
|
|
(100
|
)
|
|
(0.24
|
)
|
|
0.14
|
|
2.61
|
|
(95
|
)
|
|||||
Severance expenses
|
0.05
|
|
0.38
|
|
(87
|
)
|
|
0.10
|
|
|
0.13
|
|
0.26
|
|
(50
|
)
|
|||||
Foreign exchange loss (gain)
|
2.68
|
|
(0.34
|
)
|
888
|
|
|
0.44
|
|
|
0.69
|
|
0.05
|
|
1,280
|
|
|||||
Financial instruments loss (gain)
|
4.82
|
|
(1.85
|
)
|
361
|
|
|
(6.88
|
)
|
|
(0.36
|
)
|
0.90
|
|
(140
|
)
|
|||||
Loss on redemption of Convertible Notes
|
4.44
|
|
—
|
|
100
|
|
|
—
|
|
|
1.40
|
|
—
|
|
100
|
|
|||||
Interest expense
|
4.77
|
|
2.81
|
|
70
|
|
|
3.97
|
|
|
3.79
|
|
2.66
|
|
42
|
|
|||||
|
39.30
|
|
25.82
|
|
52
|
|
|
20.27
|
|
|
29.21
|
|
26.80
|
|
9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
0.05
|
|
0.27
|
|
(81
|
)
|
|
0.15
|
|
|
0.08
|
|
0.28
|
|
(71
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(Loss) Income before income taxes
|
(6.80
|
)
|
21.86
|
|
(131
|
)
|
|
19.90
|
|
|
7.11
|
|
19.63
|
|
(64
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current income tax expense (recovery)
|
1.20
|
|
7.25
|
|
(83
|
)
|
|
(0.18
|
)
|
|
1.72
|
|
4.75
|
|
(64
|
)
|
|||||
Deferred income tax expense (recovery)
|
3.32
|
|
(13.95
|
)
|
124
|
|
|
5.61
|
|
|
3.93
|
|
(0.02
|
)
|
19,750
|
|
|||||
|
4.52
|
|
(6.70
|
)
|
167
|
|
|
5.43
|
|
|
5.65
|
|
4.73
|
|
19
|
|
|||||
Net (loss) income
|
$
|
(11.32
|
)
|
$
|
28.56
|
|
(140
|
)
|
|
$
|
14.47
|
|
|
$
|
1.46
|
|
$
|
14.90
|
|
(90
|
)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||
Average Daily Volumes (BOEPD)
|
|
|
|
|
|
||||
Working Interest Production Before Royalties
|
32,918
|
|
36,170
|
|
|
35,454
|
|
35,553
|
|
Royalties
|
(5,155
|
)
|
(7,571
|
)
|
|
(5,929
|
)
|
(7,222
|
)
|
Production NAR
|
27,763
|
|
28,599
|
|
|
29,525
|
|
28,331
|
|
(Increase) Decrease in Inventory
|
(58
|
)
|
60
|
|
|
65
|
|
(403
|
)
|
Sales
|
27,705
|
|
28,659
|
|
|
29,590
|
|
27,928
|
|
|
|
|
|
|
|
||||
Royalties, % of Working Interest Production Before Royalties
|
16
|
%
|
21
|
%
|
|
17
|
%
|
20
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Thousands of U.S. Dollars)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Oil and Natural Gas Sales
|
$
|
132,491
|
|
$
|
175,118
|
|
|
$
|
443,049
|
|
$
|
476,792
|
|
Transportation Expenses
|
(3,179
|
)
|
(7,505
|
)
|
|
(16,167
|
)
|
(21,024
|
)
|
||||
|
129,312
|
|
167,613
|
|
|
426,882
|
|
455,768
|
|
||||
Operating Expenses
|
(35,603
|
)
|
(29,511
|
)
|
|
(104,119
|
)
|
(78,019
|
)
|
||||
Workover Expenses
|
(10,979
|
)
|
(13,106
|
)
|
|
(30,025
|
)
|
(25,922
|
)
|
||||
Operating Netback(1)
|
$
|
82,730
|
|
$
|
124,996
|
|
|
$
|
292,738
|
|
$
|
351,827
|
|
|
|
|
|
|
|
||||||||
U.S. Dollars Per BOE Sales Volumes NAR
|
|
|
|
|
|
||||||||
Brent
|
$
|
62.03
|
|
$
|
75.97
|
|
|
$
|
64.75
|
|
$
|
72.68
|
|
Quality and Transportation Discounts
|
(10.05
|
)
|
(9.55
|
)
|
|
(9.90
|
)
|
(10.14
|
)
|
||||
Average Realized Price
|
51.98
|
|
66.42
|
|
|
54.85
|
|
62.54
|
|
||||
Transportation Expenses
|
(1.25
|
)
|
(2.85
|
)
|
|
(2.00
|
)
|
(2.76
|
)
|
||||
Average Realized Price Net of Transportation Expenses
|
50.73
|
|
63.57
|
|
|
52.85
|
|
59.78
|
|
||||
Operating Expenses
|
(13.97
|
)
|
(11.19
|
)
|
|
(12.89
|
)
|
(10.23
|
)
|
||||
Workover Expenses
|
(4.31
|
)
|
(4.97
|
)
|
|
(3.72
|
)
|
(3.40
|
)
|
||||
Operating Netback(1)
|
$
|
32.45
|
|
$
|
47.41
|
|
|
$
|
36.24
|
|
$
|
46.15
|
|
(Thousands of U.S. Dollars)
|
Third Quarter 2019 Compared with Second Quarter 2019
|
|
Third Quarter 2019 Compared with Third Quarter 2018
|
|
Nine Months Ended September 30, 2019 Compared with Nine Months Ended September 30, 2018
|
||||||
Oil and natural gas sales for the comparative period
|
$
|
157,993
|
|
|
$
|
175,118
|
|
|
$
|
476,792
|
|
Realized sales price decrease effect
|
(18,658
|
)
|
|
(36,801
|
)
|
|
(62,143
|
)
|
|||
Sales volumes (decrease) increase effect
|
(6,844
|
)
|
|
(5,826
|
)
|
|
28,400
|
|
|||
Oil and natural gas sales for the three and nine months ended September 30, 2019
|
$
|
132,491
|
|
|
$
|
132,491
|
|
|
$
|
443,049
|
|
|
Three Months Ended September 30,
|
Three Months Ended June 30,
|
Nine Months Ended September 30,
|
|||||||
|
2019
|
2018
|
2019
|
2019
|
2018
|
|||||
Volume transported through pipeline
|
—
|
%
|
9
|
%
|
1
|
%
|
2
|
%
|
9
|
%
|
Volume sold at wellhead
|
54
|
%
|
37
|
%
|
51
|
%
|
48
|
%
|
39
|
%
|
Volume transported via truck to sales point
|
46
|
%
|
54
|
%
|
48
|
%
|
50
|
%
|
52
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
DD&A Expenses, thousands of U.S. Dollars
|
$
|
49,812
|
|
$
|
51,630
|
|
|
$
|
164,430
|
|
$
|
137,698
|
|
DD&A Expenses, U.S. Dollars per BOE
|
19.54
|
|
19.58
|
|
|
20.35
|
|
18.06
|
|
|
|
Three Months Ended September 30,
|
|
Three Months Ended June 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||
(Thousands of U.S. Dollars)
|
|
2019
|
2018
|
% Change
|
|
2019
|
|
2019
|
2018
|
% Change
|
||||||||||||
G&A Expenses Before Stock-Based Compensation
|
|
$
|
7,645
|
|
$
|
3,679
|
|
108
|
|
|
$
|
9,268
|
|
|
$
|
24,782
|
|
$
|
17,254
|
|
44
|
|
G&A Stock-Based Compensation (Recovery) Expense
|
|
(8
|
)
|
10,132
|
|
(100
|
)
|
|
(627
|
)
|
|
1,092
|
|
19,919
|
|
(95
|
)
|
|||||
G&A Expenses, Including Stock-Based Compensation
|
|
$
|
7,637
|
|
$
|
13,811
|
|
(45
|
)
|
|
$
|
8,641
|
|
|
$
|
25,874
|
|
$
|
37,173
|
|
(30
|
)
|
U.S. Dollars Per BOE Sales Volumes NAR
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
G&A Expenses Before Stock-Based Compensation
|
|
$
|
3.00
|
|
$
|
1.40
|
|
114
|
|
|
$
|
3.48
|
|
|
$
|
3.07
|
|
$
|
2.26
|
|
36
|
|
G&A Stock-Based Compensation (Recovery) Expense
|
|
—
|
|
3.84
|
|
(100
|
)
|
|
(0.24
|
)
|
|
0.14
|
|
2.61
|
|
(95
|
)
|
|||||
G&A Expenses, Including Stock-Based Compensation
|
|
$
|
3.00
|
|
$
|
5.24
|
|
(43
|
)
|
|
$
|
3.24
|
|
|
$
|
3.21
|
|
$
|
4.87
|
|
(34
|
)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||
|
2019
|
2018
|
|
2019
|
2018
|
Change in the U.S. dollar against the Colombian peso
|
strengthened by
|
strengthened by
|
|
strengthened by
|
no change
|
8%
|
1%
|
|
7%
|
—%
|
|
Change in the U.S. dollar against the Canadian dollar
|
strengthened by
|
weakened by
|
|
weakened by
|
strengthened by
|
1%
|
2%
|
|
3%
|
3%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Thousands of U.S. Dollars)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Commodity price derivative loss (gain)
|
$
|
(24
|
)
|
$
|
929
|
|
|
$
|
464
|
|
$
|
20,384
|
|
Foreign currency derivatives loss (gain)
|
337
|
|
525
|
|
|
392
|
|
(1,499
|
)
|
||||
Investment loss (gain)
|
11,972
|
|
(6,328
|
)
|
|
(3,746
|
)
|
(12,045
|
)
|
||||
Financial instruments loss (gain)
|
$
|
12,285
|
|
$
|
(4,874
|
)
|
|
$
|
(2,890
|
)
|
$
|
6,840
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income (loss) before income tax
|
$
|
(17,312
|
)
|
|
$
|
57,634
|
|
|
$
|
57,361
|
|
|
$
|
149,562
|
|
|
|
|
|
|
|
|
|
||||||||
Current income tax expense
|
$
|
3,049
|
|
|
$
|
19,108
|
|
|
$
|
13,923
|
|
|
$
|
36,224
|
|
Deferred income tax expense (recovery)
|
8,472
|
|
|
(36,769
|
)
|
|
31,752
|
|
|
(118
|
)
|
||||
Total income tax expense (recovery)
|
$
|
11,521
|
|
|
$
|
(17,661
|
)
|
|
$
|
45,675
|
|
|
$
|
36,106
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
(67
|
)%
|
|
(31
|
)%
|
|
79
|
%
|
|
24
|
%
|
(Thousands of U.S. Dollars)
|
Third Quarter 2019 Compared with Second Quarter 2019
|
% change
|
Third Quarter 2019 Compared with Third Quarter 2018
|
% change
|
Nine Months Ended, September 30, 2019 Compared with Nine Months Ended September 30, 2018
|
% change
|
|||||||||
Net income for the comparative period
|
$
|
38,540
|
|
|
$
|
75,295
|
|
|
113,456
|
|
|
||||
Increase (decrease) due to:
|
|
|
|
|
|
|
|||||||||
Prices
|
(18,658
|
)
|
|
(36,801
|
)
|
|
(62,143
|
)
|
|
||||||
Sales volumes
|
(6,844
|
)
|
|
(5,826
|
)
|
|
28,400
|
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|||||||||
Operating
|
(1,870
|
)
|
|
(6,092
|
)
|
|
(26,100
|
)
|
|
||||||
Workover
|
1,778
|
|
|
2,127
|
|
|
(4,103
|
)
|
|
||||||
Transportation
|
1,706
|
|
|
4,326
|
|
|
4,857
|
|
|
||||||
Cash G&A, RSU settlements and lease payments
|
1,294
|
|
|
(4,392
|
)
|
|
(7,963
|
)
|
|
||||||
Severance
|
130
|
|
|
864
|
|
|
933
|
|
|
||||||
Interest, net of amortization of debt
issuance costs
|
(1,747
|
)
|
|
(4,776
|
)
|
|
(10,136
|
)
|
|
||||||
Realized foreign exchange
|
(1,427
|
)
|
|
(644
|
)
|
|
(51
|
)
|
|
||||||
Settlement of financial instruments
|
195
|
|
|
9,756
|
|
|
23,894
|
|
|
||||||
Current taxes
|
(3,538
|
)
|
|
16,059
|
|
|
22,301
|
|
|
||||||
Interest Income
|
(267
|
)
|
|
(595
|
)
|
|
(1,461
|
)
|
|
||||||
Net change in funds flow from operations(1) from comparative period
|
(29,248
|
)
|
|
(25,994
|
)
|
|
(31,572
|
)
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|||||||||
Depletion, depreciation and accretion
|
1,885
|
|
|
1,818
|
|
|
(26,732
|
)
|
|
||||||
Deferred tax
|
6,485
|
|
|
(45,241
|
)
|
|
(31,870
|
)
|
|
||||||
Amortization of debt issuance costs
|
158
|
|
|
27
|
|
|
(245
|
)
|
|
||||||
Non-cash lease expenses net of lease payments
|
329
|
|
|
283
|
|
|
237
|
|
|
||||||
Stock-based compensation, net of
RSU settlement
|
(619
|
)
|
|
10,283
|
|
|
19,025
|
|
|
||||||
Financial instruments gain or loss, net of
financial instruments settlements
|
(30,820
|
)
|
|
(26,915
|
)
|
|
(14,164
|
)
|
|
||||||
Unrealized foreign exchange
|
(4,238
|
)
|
|
(7,084
|
)
|
|
(5,144
|
)
|
|
||||||
Loss on redemption of convertible debt
|
(11,305
|
)
|
|
(11,305
|
)
|
|
(11,305
|
)
|
|
||||||
Net change in net income
|
(67,373
|
)
|
|
(104,128
|
)
|
|
(101,770
|
)
|
|
||||||
Net (loss) income for the current period
|
$
|
(28,833
|
)
|
(175
|
)%
|
$
|
(28,833
|
)
|
(138
|
)%
|
$
|
11,686
|
|
(90
|
)%
|
(Millions of U.S. Dollars)
|
|
||
Colombia:
|
|
||
Exploration
|
$
|
12.2
|
|
Development:
|
|
||
Drilling and Completions
|
60.0
|
|
|
Facilities
|
25.8
|
|
|
Other
|
17.3
|
|
|
|
115.3
|
|
|
Corporate
|
1.2
|
|
|
|
$
|
116.5
|
|
|
Number of wells (Gross)
|
Number of wells (Net)
|
||
Development
|
8
|
|
8
|
|
Other
|
6
|
|
6
|
|
Total
|
14
|
|
14
|
|
|
As at
|
|||||||||
(Thousands of U.S. Dollars)
|
September 30, 2019
|
|
% Change
|
|
December 31, 2018
|
|||||
Cash and Cash Equivalents
|
$
|
13,959
|
|
|
(73
|
)
|
|
$
|
51,040
|
|
|
|
|
|
|
|
|||||
Current Restricted Cash and Cash Equivalents
|
$
|
676
|
|
|
(47
|
)
|
|
$
|
1,269
|
|
|
|
|
|
|
|
|||||
Working Capital (Deficiency), Including Cash and Cash Equivalents
|
$
|
(5,000
|
)
|
|
(115
|
)
|
|
$
|
33,145
|
|
|
|
|
|
|
|
|||||
Revolving Credit Facility
|
$
|
57,000
|
|
|
100
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|||||
6.25% Senior Notes
|
$
|
300,000
|
|
|
—
|
|
|
$
|
300,000
|
|
|
|
|
|
|
|
|||||
7.75% Senior Notes
|
$
|
300,000
|
|
|
100
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|||||
Convertible Notes
|
$
|
—
|
|
|
(100
|
)
|
|
$
|
115,000
|
|
Period and type of instrument
|
Volume,
bopd |
Reference
|
Purchased Put ($/bbl, Weighted Average)
|
Sold Call
($/bbl, Weighted Average)
|
Premium
($/bbl, Weighted Average)
|
|||||||
Purchased Puts: October 1, to December 31, 2019
|
5,000
|
|
ICE Brent
|
$
|
60.00
|
|
n/a
|
|
$
|
2.39
|
|
|
Collars: October 1, to December 31, 2019
|
5,000
|
|
ICE Brent
|
$
|
60.00
|
|
$
|
71.53
|
|
n/a
|
|
Period and type of instrument
|
Amount Hedged
(Millions COP) |
U.S. Dollar Equivalent of Amount Hedged (Thousands of U.S. Dollars)(1)
|
Reference
|
Floor Price
(COP, Weighted Average) |
Cap Price (COP, Weighted Average)
|
||||
Collars: October 1, to December 31, 2019
|
67,500
|
|
19,497
|
|
COP
|
3,019
|
|
3,446
|
|
|
Nine Months Ended September 30,
|
|||||
(Thousands of U.S. Dollars)
|
2019
|
2018
|
||||
Sources of cash and cash equivalents:
|
|
|
||||
Net income
|
$
|
11,686
|
|
$
|
113,456
|
|
Adjustments to reconcile net income to Adjusted EBITDA(1)
and funds flow from operations(1)
|
|
|
||||
DD&A expenses
|
164,430
|
|
137,698
|
|
||
Interest expense
|
30,655
|
|
20,274
|
|
||
Income tax expense
|
45,675
|
|
36,106
|
|
||
Loss on redemption of convertible notes
|
11,305
|
|
—
|
|
||
Gain on investment
|
(3,746
|
)
|
(12,045
|
)
|
||
Adjusted EBITDA
|
260,005
|
|
295,489
|
|
||
Current income tax expense
|
(13,923
|
)
|
(36,224
|
)
|
||
Contractual interest and other financing expenses
|
(28,081
|
)
|
(17,945
|
)
|
||
Stock-based compensation expense
|
1,092
|
|
20,477
|
|
||
Cash settlement of RSUs
|
—
|
|
(360
|
)
|
||
Unrealized foreign exchange loss
|
5,303
|
|
159
|
|
||
Financial instruments loss excluding gain on investment
|
856
|
|
18,885
|
|
||
Non-cash lease expenses
|
1,366
|
|
—
|
|
||
Lease payments
|
(1,603
|
)
|
—
|
|
||
Cash settlement of financial instruments
|
(2,275
|
)
|
(26,169
|
)
|
||
Funds flow from operations
|
222,740
|
|
254,312
|
|
||
Proceeds from bank debt, net of issuance costs
|
246,000
|
|
4,988
|
|
||
Proceeds from issuance of Senior Notes, net of issuance costs
|
289,298
|
|
288,087
|
|
||
Proceeds from issuance of shares
|
—
|
|
1,408
|
|
||
Changes in non-cash investing working capital
|
20,138
|
|
32,638
|
|
||
|
778,176
|
|
581,433
|
|
||
|
|
|
||||
Uses of cash and cash equivalents:
|
|
|
||||
Additions to property, plant and equipment
|
(310,579
|
)
|
(258,551
|
)
|
||
Additions to property, plant and equipment - property acquisitions
|
(77,772
|
)
|
(20,100
|
)
|
||
Repayment of bank debt
|
(304,000
|
)
|
(153,000
|
)
|
||
Repurchase of shares of Common Stock
|
(37,560
|
)
|
(1,314
|
)
|
||
Net changes in assets and liabilities from operating activities
|
(83,606
|
)
|
(40,652
|
)
|
||
Settlement of asset retirement obligations
|
(707
|
)
|
(456
|
)
|
||
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents
|
(1,506
|
)
|
(402
|
)
|
||
|
(815,730
|
)
|
(474,475
|
)
|
||
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents
|
$
|
(37,554
|
)
|
$
|
106,958
|
|
|
(a)
Total Number of Shares Purchased(1) |
(b)
Average Price Paid per Share (2) |
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d)
Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs |
|
||||
July 1-31, 2019
|
1,842,750
|
|
1.60
|
|
1,842,750
|
|
7,812,001
|
|
(3)
|
August 1-31, 2019
|
6,401,675
|
|
1.35
|
|
6,401,675
|
|
1,410,326
|
|
(3)
|
September 1-30, 2019
|
1,410,326
|
|
1.41
|
|
1,410,326
|
|
—
|
|
(3)
|
|
9,654,751
|
|
1.41
|
|
9,654,751
|
|
—
|
|
|
Exhibit No.
|
Description
|
|
Reference
|
|
|
|
|
3.1
|
|
Incorporated by reference to Exhibit 3.3 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018).
|
|
|
|
|
|
3.2
|
|
Incorporated by reference to Exhibit 3.4 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018).
|
|
|
|
|
|
3.3
|
|
Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on July 9, 2018 (SEC File No. 001-34018).
|
|
|
|
|
|
10.1*
|
|
|
Filed herewith.
|
|
|
|
|
31.1
|
|
Filed herewith.
|
|
|
|
|
|
31.2
|
|
Filed herewith.
|
|
|
|
|
|
32.1
|
|
Furnished herewith.
|
Date: November 5, 2019
|
|
/s/ Gary S. Guidry
|
|
|
By: Gary S. Guidry
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: November 5, 2019
|
|
/s/ Ryan Ellson
|
|
|
By: Ryan Ellson
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial and Accounting Officer)
|
1 Year Gran Tierra Energy Chart |
1 Month Gran Tierra Energy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions