| Segment and Geographic Reporting |
Segment and Geographic Reporting The Company is primarily engaged in the exploration and production of oil and natural gas. The Company reports segmented information based on internal management reporting used by our Chief Operating Decision Makers (“CODM”), which are the Company’s Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Vice Presidents across various business functions. CODM allocates resources and assesses performance of each reportable segment based on segmented earnings. The Company determined three reportable segments based on the geographic organization: Colombia, Ecuador and Canada. The “Other” category represents the Company’s corporate activities. The following tables present information on the Company’s reportable segments and other activities:
| | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | (Thousands of U.S. Dollars) | Colombia | Ecuador | Canada | Other | Total | | Oil, natural gas and NGL sales | $ | 118,136 | | $ | 41,964 | | $ | 27,081 | | $ | — | | $ | 187,181 | | | Operating expenses | 33,152 | | 6,196 | | 12,213 | | — | | 51,561 | | | Transportation expenses | 2,327 | | 1,182 | | 398 | | — | | 3,907 | | | Segmented earnings | $ | 82,657 | | $ | 34,586 | | $ | 14,470 | | $ | — | | $ | 131,713 | | | | | | | | | Other taxes | | | | | 1,389 | | Depletion, depreciation and accretion (“DD&A”) expenses | | | | | 62,334 | | | General and administrative expenses | | | | | 9,462 | | | Severance | | | | | 95 | | | Foreign exchange loss | | | | | 2,603 | | | Derivative instruments gain | | | | | (11,864) | | | Interest expense | | | | | 24,473 | | | Non-segmented expenses | | | | | 88,492 | | | | | | | | | Other income | | | | | 1,625 | | | Interest income | | | | | 503 | | | Income before income taxes | | | | | 45,349 | | | Income tax expense | | | | | 20,488 | | | Net income | | | | | $ | 24,861 | | | | | | | | | Segment capital expenditures | $ | 49,886 | | $ | 4,206 | | $ | 6,885 | | $ | — | | $ | 60,977 | |
| | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | (Thousands of U.S. Dollars) | Colombia | Ecuador | Canada | Other | Total | | Oil, natural gas and NGL sales | $ | 220,460 | | $ | 82,709 | | $ | 56,069 | | $ | — | | $ | 359,238 | | | Operating expenses | 68,194 | | 22,148 | | 27,368 | | — | | 117,710 | | | Transportation expenses | 4,599 | | 3,736 | | 875 | | — | | 9,210 | | | Segmented earnings | $ | 147,667 | | $ | 56,825 | | $ | 27,826 | | $ | — | | $ | 232,318 | | | | | | | | | Other taxes | | | | | 2,430 | | Depletion, depreciation and accretion (“DD&A”) expenses | | | | | 132,208 | | | General and administrative expenses | | | | | 44,287 | | | Severance | | | | | 2,563 | | | Foreign exchange loss | | | | | 4,028 | | | Derivative instruments loss | | | | | 76,546 | | | Interest expense | | | | | 74,351 | | | Non-segmented expenses | | | | | 336,413 | | | | | | | | | Other income | | | | | 2,773 | | | Interest income | | | | | 904 | | | Loss before income taxes | | | | | (100,418) | |
| | | | | | | | | | | | | | | | | | | Income tax recovery | | | | | (6,107) | | | Net loss | | | | | $ | (94,311) | | | | | | | | | Segment capital expenditures | $ | 70,759 | | $ | 19,952 | | $ | 11,806 | | $ | — | | $ | 102,517 | |
| | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | (Thousands of U.S. Dollars) | Colombia | Ecuador | Canada | Other | Total | | Oil, natural gas and NGL sales | $ | 109,692 | | $ | 8,495 | | $ | 31,170 | | $ | — | | $ | 149,357 | | | Operating expenses | 38,180 | | 4,122 | | 13,300 | | — | | 55,602 | | | Transportation expenses | 3,735 | | 441 | | 318 | | — | | 4,494 | | | Segmented earnings | $ | 67,777 | | $ | 3,932 | | $ | 17,552 | | $ | — | | $ | 89,261 | | | | | | | | | Other taxes | | | | | 577 | | Depletion, depreciation and accretion (“DD&A”) expenses | | | | | 68,635 | | | General and administrative expenses | | | | | 14,682 | | | | | | | | | | | | | | | Foreign exchange loss | | | | | 3,716 | | | Derivative instruments gain | | | | | (14,032) | | | Interest expense | | | | | 24,366 | | | Non-segmented expenses | | | | | 97,944 | | | | | | | | | Other income | | | | | 339 | | | Interest income | | | | | 251 | | | Loss before income taxes | | | | | (8,093) | | | Income tax expense | | | | | 4,648 | | | Net loss | | | | | $ | (12,741) | | | | | | | | | Segment capital expenditures | $ | 37,749 | | $ | 24,800 | | $ | 23,871 | | $ | 47 | | $ | 86,467 | |
| | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | (Thousands of U.S. Dollars) | Colombia | Ecuador | Canada | Other | Total | | Oil, natural gas and NGL sales | $ | 227,340 | | $ | 29,518 | | $ | 60,672 | | $ | — | | $ | 317,530 | | | Operating expenses | 80,670 | | 12,195 | | 29,827 | | — | | 122,692 | | | Transportation expenses | 6,946 | | 1,534 | | 565 | | — | | 9,045 | | | Segmented earnings | $ | 139,724 | | $ | 15,789 | | $ | 30,280 | | $ | — | | $ | 185,793 | | | | | | | | | Other taxes | | | | | 1,058 | | Depletion, depreciation and accretion (“DD&A”) expenses | | | | | 140,837 | | | General and administrative expenses | | | | | 26,091 | | | | | | | | | | | | | | | Foreign exchange loss | | | | | 7,554 | | | Derivative instruments gain | | | | | (12,565) | | | Interest expense | | | | | 47,601 | | | Non-segmented expenses | | | | | 210,576 | | | | | | | | | Other income | | | | | 287 | |
| | | | | | | | | | | | | | | | | | | Interest income | | | | | 676 | | | Loss before income taxes | | | | | (23,820) | | | Income tax expense | | | | | 8,201 | | | Net loss | | | | | $ | (32,021) | | | | | | | | | Segment capital expenditures | $ | 60,418 | | $ | 45,587 | | $ | 47,536 | | $ | 430 | | $ | 153,971 | |
| | | | | | | | | | | | | | | | | | | As at June 30, 2026 | | (Thousands of U.S. Dollars) | Colombia | Ecuador | Canada | Other | Total | | Property, plant and equipment | $ | 954,619 | | $ | 167,553 | | $ | 108,272 | | $ | 6,498 | | $ | 1,236,942 | | | All other assets | 164,168 | | 83,069 | | 42,518 | | 37,398 | | 327,153 | | | Total Assets | $ | 1,118,787 | | $ | 250,622 | | $ | 150,790 | | $ | 43,896 | | $ | 1,564,095 | | | | | | | | | As at December 31, 2025 | | (Thousands of U.S. Dollars) | Colombia | Ecuador | Canada | Other | Total | | Property, plant and equipment | $ | 935,351 | | $ | 176,003 | | $ | 185,226 | | $ | 7,840 | | $ | 1,304,420 | | | All other assets | 150,524 | | 55,313 | | 39,093 | | 36,729 | | 281,659 | | | Total Assets | $ | 1,085,875 | | $ | 231,316 | | $ | 224,319 | | $ | 44,569 | | $ | 1,586,079 | |
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