INCOME TAXES

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income (loss) before income taxes is attributable as follows:

	Year Ended December 31,
(in thousands)	2025		2024		2023
U.S.	$	(24,853)	$	(26,337)	$	(15,781)
Foreign	(1,716)		166,134		165,927
	$	(26,569)	$	139,797	$	150,146

Provision for income taxes related to income (loss) consists of the following:

	Year Ended December 31,
	2025		2024		2023
U.S. Federal:	(in thousands)
Current	$	—	$	—	$	—
Deferred	(1,940)		(1,698)		6,214
Foreign:
Current	44,341		98,882		92,642
Deferred	(27,579)		(15,877)		(9,079)
Total	$	14,822	$	81,307	$	89,777

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)			2025
U.S. Federal Statutory Tax Rate			$	(5,580)	21.00	%
Domestic Federal
		Tax Credits - Foreign Tax Credit	(13,982)		52.63	%
		Changes in Valuation Allowance	7,385		(27.79)	%
		Cross-border tax laws - US taxation of foreign disregarded entity	8,242		(31.02)	%
		Nontaxable or nondeductible items	806		(3.03)	%
Foreign Tax Effects
	Gabon
		Statutory income tax rate differential	4,923		(18.53)	%
		Rate difference between Gabon statutory tax rate and the PSC	9,435		(35.51)	%
		Nontaxable or nondeductible items:
		Non Recoverable Costs	1,067		(4.02)	%
		Nondeductible Interest	1,670		(6.29)	%
		Impact of revenue differences between production and lifting	(8,075)		30.39	%
		Carried interests	(1,020)		3.84	%
		Other reconciling items	478		(1.80)	%
		Changes in Valuation Allowance	2,095		(7.89)	%
	Egypt
		Statutory income tax rate differential	9,067		(34.13)	%
		Nontaxable or nondeductible items:
		Non Recoverable Costs	2,288		(8.61)	%
		Other reconciling items	(92)		0.35	%
		Changes in Valuation Allowance	356		(1.34)	%

Canada
	Statutory income tax rate differential	4,184		(15.75)	%
	Subnational income taxes	(5,580)		21.00	%
	Changes in Valuation Allowance	16,045		(60.39)	%
Cote D'Ivoire
	Statutory income tax rate differential	(716)		2.70	%
	Rate difference between statutory tax rate and the PSC	(12,197)		45.91	%
	Nontaxable or nondeductible items:
	Non Recoverable Costs	1,033		(3.89)	%
	Stat to US GAAP adjustments	(1,250)		4.71	%
	Cost Recovery Uplift	(9,167)		34.50	%
	Changes in Valuation Allowance	1,834		(6.90)	%
Equatorial Guinea
	Statutory income tax rate differential	(119)		0.45	%
	Changes in Valuation Allowance	744		(2.80)	%
Sweden
	Tax Credits - Foreign Tax Credit	(3,767)		14.18	%
	Cross-border tax laws - Sweden taxation of foreign disregarded entity	(2,885)		10.86	%
	Nontaxable or nondeductible items:
	Realized foreign exchange gain	4,036		(15.19)	%
	Other reconciling items	(100)		0.38	%
	Changes in Valuation Allowance	3,126		(11.76)	%
Other
	Nontaxable or nondeductible items:
	Other reconciling items	538		(2.03)	%
	Total	$	14,822	(55.77)	%

Income taxes paid (net of refunds received) were as follows:

	December 31,
(in thousands)	2025		2024
Gabon	$	36,739	$	31,109
Egypt	29,025		31,355
Cote d’Ivoire	2,221		9,155
Total taxes paid	$	67,985	$	71,619

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, 2025, a valuation allowance of $203.6 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)	2025		2024
Deferred tax assets:
Fixed assets(1)	$	40,988	$	35,541
Foreign tax credit carryforward	133,803		123,660
Net operating losses	58,892		56,317
Asset retirement obligations	48,015		20,384
ROU lease liabilities	8,567		9,973
Accrued liabilities	16,071		19,686
Receivables	(146)		(1,788)
Other	3,846		2,682
Total deferred tax assets	310,036		266,455
Valuation allowance	(203,624)		(173,140)
Net deferred tax assets	$	106,412	$	93,315
Deferred tax liabilities:
Basis difference in fixed assets	(115,217)		(131,639)
Net deferred tax liabilities	$	(115,217)	$	(131,639)

(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, 2025, 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, 2025:

Jurisdiction	Amount (in thousands)		Expiration Period
Egypt	$	14,596	2026-2028
Canada	$	91,662	2031-2040
Equatorial Guinea	$	127,564	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, 2025 and 2024. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense.

The Company is subject to income taxation in the United States and various foreign jurisdictions, including Canada. The Company’s Canadian subsidiaries are currently under examination by the Canada Revenue Agency (“CRA”) with respect to the tax treatment of the disposition of shares of certain foreign affiliates for taxation years included in the year ended December 31, 2022.

In January 2026, the Company received an assessment from the CRA related to this examination. The Company is currently evaluating the assessment and available administrative remedies, including the filing of a notice of objection. The Company is also considering this matter in connection with the previously announced sale of the Company’s Canadian assets. As of December 31, 2025, there have been no developments or new information that would require the Company to record an unrecognized tax benefit. Based on currently available information, the Company does not believe that the

ultimate resolution of this matter will have a material adverse effect on its consolidated financial position, tax expense, results of operations, or cash flows; however, the final outcome remains uncertain.

For the years ended December 31, 2025, 2024 and 2023, 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.	2015-2025
Gabon	2021-2025
Egypt	2020-2025
Canada	2020-2025
Sweden	2019-2025
Cote d'Ivoire	2022-2025