REG - Kosmos Energy Ltd - Second Quarter Results
05/08/2024 07:00
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RNS Number : 0745Z Kosmos Energy Limited 05 August 2024
KOSMOS ENERGY ANNOUNCES SECOND QUARTER 2024 RESULTS
DALLAS - August 5, 2024-- Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for the
second quarter of 2024. For the quarter, the Company generated a net income of
$60 million, or $0.12 per diluted share. When adjusted for certain items that
impact the comparability of results, the Company generated an adjusted net
income((1)) of $80 million, or $0.17 per diluted share for the second quarter
of 2024.
SECOND QUARTER 2024 HIGHLIGHTS
• Net Production((2)): ~62,100 barrels of oil equivalent per day
(boepd), representing ~7% growth year over year, with sales of ~65,400 boepd
• Revenues: $451 million, or $75.73 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $151 million or $25.32 per boe ($22.27 per boe
excluding $18 million of production expenses associated with the Greater
Tortue Ahmeyim (GTA) project)
• Capital expenditures: $215 million
• Arrival on location and successful mooring of the floating
production, storage and offtake (FPSO) vessel for the GTA project
• Post quarter end, in the US Gulf of Mexico achieved first oil at
Winterfell (with the first two wells online in early July), successfully
completed the operated Kodiak-3 well workover and the startup of the Odd Job
subsea pump project
• Post quarter end, in Equatorial Guinea the drilling rig for the
infill and infrastructure-led exploration (ILX) campaign arrived on location
and successfully drilled the first infill well
Commenting on the Company's second quarter 2024 performance, Chairman and
Chief Executive Officer Andrew G. Inglis said: "It has been a busy period for
Kosmos with significant progress in the delivery of our development projects.
Production is rising in the US Gulf of Mexico with the startup of Winterfell
and the successful completion of our production optimization activities. The
drilling campaign in Equatorial Guinea has now commenced and we continue to
see good progress across all major workstreams on the GTA project in
Mauritania and Senegal. With these projects online, we expect to exit the year
at our production goal of around 90,000 boepd. In addition, we have completed
the concept development work on Yakaar-Teranga in Senegal and are progressing
Tiberius in the US Gulf of Mexico towards final investment decision, providing
high-quality investment opportunities beyond 2024.
As production ramps up and capital expenditures are expected to fall, we
remain committed to delivering free cash flow within a disciplined capital
framework, to further enhance the financial resilience of the company, after
which we will consider shareholder returns."
FINANCIAL UPDATE
Net capital expenditure for the second quarter of 2024 was $215 million, below
our guidance range primarily due to the timing of capital expenditures
accruals related to GTA in Mauritania and Senegal, which we now expect will be
recognized in the third quarter. With the completion of the Ghana infill
drilling program and the startup of Winterfell, capital expenditures in the
second half of the year are expected to be materially lower than the first
half. As previously guided, with the resumption of the drilling campaign in
Equatorial Guinea, full year capital expenditure is expected to be around $750
million.
Kosmos exited the second quarter of 2024 with approximately $2.7 billion of
total long-term debt and approximately $2.5 billion of net debt((1)) and
available liquidity of approximately $793 million.
The Company generated net cash provided by operating activities of
approximately $224 million and free cash flow((1)) of approximately $(15)
million in the second quarter.
OPERATIONAL UPDATE
Production
Total net production((2)) in the second quarter of 2024 averaged approximately
62,100 boepd, within guidance range, representing a ~7% increase compared to
the second quarter of 2023. This growth largely reflects higher production in
Ghana following completion of the infill drilling campaign offset by lower
production in the US Gulf of Mexico due to planned downtime and a delay to
startup of the Winterfell project. The Company exited the quarter in a net
overlift position of approximately 0.1 million barrels.
Ghana
Production in Ghana averaged approximately 41,900 boepd net in the second
quarter of 2024. Kosmos lifted four cargos from Ghana during the quarter, in
line with guidance.
At Jubilee (38.6% working interest), oil production in the second quarter
averaged approximately 87,300 bopd gross with one producer well brought online
in April and one water injector well brought online in June. As the operator
in Ghana recently communicated, the ramp up in production at Jubilee has been
slower than expected, primarily as a result of one producer well (J-69) under
performing expectations and a temporary reduction in water injection. Voidage
replacement during the second quarter was approximately 80% (compared to the
100% target). The Jubilee FPSO reliability remains high with uptime
approximately 99% for the second quarter.
Following the completion of the water injector well in June, the three-year
drilling campaign has concluded. The partnership now plans to conduct a new 4D
seismic survey in early 2025. This survey, using enhanced seismic technology,
will support the partnership in high grading the optimal drilling locations
for the planned 2025/2026 drilling campaign.
In the second quarter, Jubilee gas production net to Kosmos was approximately
6,200 boepd. The onshore gas plant that receives Jubilee gas was originally
expected to be offline for approximately two weeks for planned routine
maintenance during the second quarter. This is now expected in the third
quarter, with the impact included in third quarter guidance. Following the
J-69 well underperformance, we now expect Jubilee production for the full year
to be around 90,000 bopd gross. Longer-term, with enhanced 4D seismic imaging
and a material 2P reserve base remaining, we remain confident of the field's
production potential through the end of the decade.
At TEN (20.4% working interest), production averaged approximately 19,300 bopd
gross for the second quarter, slightly above expectations. Uptime on the TEN
FPSO was approximately 99% for the second quarter.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately 11,700 boepd net
(~83% oil) during the second quarter.
The first two wells at Winterfell (25% working interest) were drilled and
completed by April with startup occurring in early July, later than planned
impacting production in the quarter. The third development well was
successfully drilled in the second quarter, encountering approximately 50 feet
of net oil pay, in line with expectations. First production from this well is
expected by the end of this quarter. Gross production from the first phase of
Winterfell is expected to be around 20,000 boepd when the initial three wells
are online.
Enhanced imaging from recent ocean bottom node (OBN) seismic, calibrated with
data from the first three Winterfell wells, gives Kosmos increased confidence
in the recovery of approximately 100 million boe gross in the first phase of
the project (5 wells in total) and greater visibility to additional upside
potential in adjacent prospectivity.
The Company's production enhancement activities for 2024 concluded in July,
with the completion of the Kodiak-3 well workover and startup of the Odd Job
subsea pump project, both operated by Kosmos. Current production in the US
Gulf of Mexico has increased to approximately 20,000 boepd, a 40% increase
over the first quarter of the year.
The Tiberius project, (50% working interest and operator) continues to
progress as a phased development, with final investment decision expected
later this year. Long lead items and a drilling rig have been secured to
manage the development timeline and project costs. Kosmos plans to farm down
to optimize its working interest to fit within the targeted 2025+ capital
program. Estimated gross resource at Tiberius is approximately 100 million
boe.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 24,200 bopd gross and
8,500 bopd net in the second quarter. Kosmos lifted 0.5 cargos from Equatorial
Guinea during the quarter, in line with guidance.
As previously announced, the Noble Venturer rig was contracted to resume the
infill and ILX drilling campaign and arrived on location in July. The rig has
successfully completed drilling the first infill well in Block G with positive
initial results. Post completion, we plan to drill the second infill well.
Both wells are expected online in the fourth quarter, after which the rig is
contracted to drill the Akeng Deep ILX prospect in Block S, with results
expected around the end of the year.
Mauritania and Senegal
The Greater Tortue Ahmeyim liquefied natural gas (LNG) project continues to
make good progress. The following milestones have been achieved:
• Drilling: The first batch of four wells has been completed with
expected production capacity significantly higher than what is required for
first gas.
• Hub Terminal: The Hub Terminal has been handed over to operations.
• Subsea: The subsea workscope is progressing in line with
expectations with final connection work ongoing. Mechanical completion for
first gas is expected this month.
• FPSO: The vessel arrived on location offshore Mauritania and
Senegal during the second quarter of 2024 with mooring now complete. All
risers were installed in June and commissioning of the FPSO is ongoing with
handover to operations targeted in September with first gas expected shortly
thereafter.
• FLNG: The vessel arrived on location offshore Mauritania and
Senegal during the first quarter of 2024 and is now moored to the Hub
Terminal. The partnership is working with the vessel operator to advance
commissioning work and plans to bring in a pre-commissioning cargo to
accelerate the cool down of the vessel later this month. First LNG is expected
in the fourth quarter of 2024.
On Yakaar-Teranga in Senegal, Kosmos has completed the concept development
work, which supports a cost competitive LNG/domestic gas project. Work will
now transition towards finalizing the partnership to support advancement of
the project.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure.
(2) Production means net entitlement volumes. In Ghana and Equatorial Guinea,
this means those volumes net to Kosmos' working interest or participating
interest and net of royalty or production sharing contract effect. In the U.S.
Gulf of Mexico, this means those volumes net to Kosmos' working interest and
net of royalty.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss second quarter 2024
financial and operating results today, August 5, 2024, at 10:00 a.m. Central
time (11:00 a.m. Eastern time). The live webcast of the event can be accessed
on the Investors page of Kosmos' website at
http://investors.kosmosenergy.com/investor-events. The dial-in telephone
number for the call is +1-877-407-0784. Callers in the United Kingdom should
call 0800 756 3429. Callers outside the United States should dial
+1-201-689-8560. A replay of the webcast will be available on the Investors
page of Kosmos' website for approximately 90 days following the event.
About Kosmos Energy
Kosmos is a full-cycle, deepwater, independent oil and gas exploration and
production company focused along the offshore Atlantic Margins. Our key assets
include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of
Mexico, as well as world-class gas projects offshore Mauritania and Senegal.
We also pursue a proven basin exploration program in Equatorial Guinea and the
U.S. Gulf of Mexico. Kosmos is listed on the New York Stock Exchange and
London Stock Exchange and is traded under the ticker symbol KOS. As an ethical
and transparent company, Kosmos is committed to doing things the right way.
The Company's Business Principles articulate our commitment to transparency,
ethics, human rights, safety and the environment. Read more about this
commitment in the Kosmos Sustainability Report. For additional information,
visit www.kosmosenergy.com.
Non-GAAP Financial Measures
EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share,
free cash flow, and net debt are supplemental non-GAAP financial measures used
by management and external users of the Company's consolidated financial
statements, such as industry analysts, investors, lenders and rating agencies.
The Company defines EBITDAX as Net income (loss) plus (i) exploration expense,
(ii) depletion, depreciation and amortization expense, (iii) equity based
compensation expense, (iv) unrealized (gain) loss on commodity derivatives
(realized losses are deducted and realized gains are added back), (v) (gain)
loss on sale of oil and gas properties, (vi) interest (income) expense, (vii)
income taxes, (viii) debt modifications and extinguishments, (ix) doubtful
accounts expense and (x) similar other material items which management
believes affect the comparability of operating results. The Company defines
Adjusted net income (loss) as Net income (loss) adjusted for certain items
that impact the comparability of results. The Company defines free cash flow
as net cash provided by operating activities less Oil and gas assets, Other
property, and certain other items that may affect the comparability of results
and excludes non-recurring activity such as acquisitions, divestitures and
National Oil Company ("NOC") financing. NOC financing refers to the amounts
funded by Kosmos under the Carry Advance Agreements that the Company has in
place with the national oil companies of each of Mauritania and Senegal
related to the financing of the respective national oil companies' share of
certain development costs at Greater Tortue Ahmeyim. The Company defines net
debt as total long-term debt less cash and cash equivalents and total
restricted cash.
We believe that EBITDAX, Adjusted net income (loss), Adjusted net income
(loss) per share, free cash flow, Net debt and other similar measures are
useful to investors because they are frequently used by securities analysts,
investors and other interested parties in the evaluation of companies in the
oil and gas sector and will provide investors with a useful tool for assessing
the comparability between periods, among securities analysts, as well as
company by company. EBITDAX, Adjusted net income (loss), Adjusted net income
(loss) per share, free cash flow, and net debt as presented by us may not be
comparable to similarly titled measures of other companies.
This release also contains certain forward-looking non-GAAP financial
measures, including free cash flow. Due to the forward-looking nature of the
aforementioned non-GAAP financial measures, management cannot reliably or
reasonably predict certain of the necessary components of the most directly
comparable forward-looking GAAP measures, such as future impairments and
future changes in working capital. Accordingly, we are unable to present a
quantitative reconciliation of such forward-looking non-GAAP financial
measures to their most directly comparable forward-looking GAAP financial
measures. Amounts excluded from these non-GAAP measures in future periods
could be significant.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that Kosmos expects, believes or anticipates will or may occur in
the future are forward-looking statements. Kosmos' estimates and
forward-looking statements are mainly based on its current expectations and
estimates of future events and trends, which affect or may affect its
businesses and operations. Although Kosmos believes that these estimates and
forward-looking statements are based upon reasonable assumptions, they are
subject to several risks and uncertainties and are made in light of
information currently available to Kosmos. When used in this press release,
the words "anticipate," "believe," "intend," "expect," "plan," "will" or other
similar words are intended to identify forward-looking statements. Such
statements are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of Kosmos, which may cause actual results
to differ materially from those implied or expressed by the forward-looking
statements. Further information on such assumptions, risks and uncertainties
is available in Kosmos' Securities and Exchange Commission ("SEC")
filings. Kosmos undertakes no obligation and does not intend to update or
correct these forward-looking statements to reflect events or circumstances
occurring after the date of this press release, except as required by
applicable law. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. All forward-looking statements are qualified in their entirety by
this cautionary statement.
###
Kosmos Energy Ltd.
Consolidated Statements of Operations
(In thousands, except per share amounts, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Revenues and other income:
Oil and gas revenue $ 450,900 $ 273,255 $ 870,003 $ 667,495
Other income, net 36 60 72 (313)
Total revenues and other income 450,936 273,315 870,075 667,182
Costs and expenses:
Oil and gas production 150,733 63,579 244,351 147,515
Exploration expenses 13,235 11,015 25,295 23,015
General and administrative 25,161 23,444 53,426 52,611
Depletion, depreciation and amortization 90,094 89,913 191,022 199,287
Interest and other financing costs, net 37,279 24,371 53,727 48,939
Derivatives, net (2,852) 3,031 20,970 (3,809)
Other expenses, net 2,162 4,779 4,191 6,809
Total costs and expenses 315,812 220,132 592,982 474,367
Income before income taxes 135,124 53,183 277,093 192,815
Income tax expense 75,354 29,838 125,637 86,161
Net income $ 59,770 $ 23,345 $ 151,456 $ 106,654
Net income per share:
Basic $ 0.13 $ 0.05 $ 0.32 $ 0.23
Diluted $ 0.12 $ 0.05 $ 0.32 $ 0.22
Weighted average number of shares used to compute net income per share:
Basic 471,599 459,984 469,821 459,155
Diluted 480,172 479,016 479,824 478,902
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
June 30, December 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $ 173,813 $ 95,345
Receivables, net 113,124 120,733
Other current assets 190,694 206,635
Total current assets 477,631 422,713
Property and equipment, net 4,558,313 4,160,229
Other non-current assets 353,366 355,192
Total assets $ 5,389,310 $ 4,938,134
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 345,258 $ 248,912
Accrued liabilities 302,903 302,815
Other current liabilities 6,710 3,103
Total current liabilities 654,871 554,830
Long-term liabilities:
Long-term debt, net 2,595,296 2,390,914
Deferred tax liabilities 370,840 363,918
Other non-current liabilities 626,412 596,135
Total long-term liabilities 3,592,548 3,350,967
Total stockholders' equity 1,141,891 1,032,337
Total liabilities and stockholders' equity $ 5,389,310 $ 4,938,134
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Operating activities:
Net income $ 59,770 $ 23,345 $ 151,456 $ 106,654
Adjustments to reconcile net income to net cash provided by operating
activities:
Depletion, depreciation and amortization (including deferred financing costs) 92,350 92,443 195,677 204,368
Deferred income taxes 12,515 (997) 5,199 (9,029)
Unsuccessful well costs and leasehold impairments 2,219 9 2,685 1,313
Change in fair value of derivatives (5,904) 2,118 21,106 (220)
Cash settlements on derivatives, net(1) (1,172) 725 (7,366) (10,632)
Equity-based compensation 10,487 11,105 17,815 21,198
Debt modifications and extinguishments 22,531 - 22,531 -
Other (6,280) 799 (11,988) (1,474)
Changes in assets and liabilities:
Net changes in working capital 37,141 (111,437) 99,105 (90,215)
Net cash provided by operating activities 223,657 18,110 496,220 221,963
Investing activities
Oil and gas assets (238,171) (193,182) (552,993) (416,867)
Notes receivable from partners (47) (17,624) (2,575) (33,295)
Net cash used in investing activities (238,218) (210,806) (555,568) (450,162)
Financing activities:
Borrowings under long-term debt - 150,000 175,000 150,000
Payments on long-term debt (50,000) - (350,000) (7,500)
Net proceeds from issuance of senior notes - - 390,430 -
Purchase of capped call transactions - - (49,800) -
Dividends - (1) - (166)
Other financing costs (19,234) (1) (30,925) (11,811)
Net cash provided by (used in) financing activities (69,234) 149,998 134,705 130,523
Net increase (decrease) in cash, cash equivalents and restricted cash (83,795) (42,698) 75,357 (97,676)
Cash, cash equivalents and restricted cash at beginning of period 257,913 131,843 98,761 186,821
Cash, cash equivalents and restricted cash at end of period $ 174,118 $ 89,145 $ 174,118 $ 89,145
(1) Cash settlements on commodity hedges were $(4.5) million and $(4.0)
million for the three months ended June 30, 2024 and 2023, respectively, and
$(7.4) million and $(8.2) million for the six months ended June 30, 2024 and
2023, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Six months ended Twelve Months Ended
June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 June 30, 2024
Net income $ 59,770 $ 23,345 $ 151,456 $ 106,654 $ 258,322
Exploration expenses 13,235 11,015 25,295 23,015 44,558
Depletion, depreciation and amortization 90,094 89,913 191,022 199,287 436,662
Impairment of long-lived assets - - - - 222,278
Equity-based compensation 10,487 11,105 17,815 21,198 39,310
Derivatives, net (2,852) 3,031 20,970 (3,809) 35,907
Cash settlements on commodity derivatives (4,489) (4,030) (7,423) (8,213) (15,658)
Other expenses, net(1) 2,162 4,779 4,191 6,809 21,038
Interest and other financing costs, net 37,279 24,371 53,727 48,939 100,692
Income tax expense 75,354 29,838 125,637 86,161 197,691
EBITDAX $ 281,040 $ 193,367 $ 582,690 $ 480,041 $ 1,340,800
(1) Commencing in the first quarter of 2023, the Company combined the
lines for "Restructuring and other" and "Other, net" in its presentation of
EBITDAX into a single line titled "Other expenses, net."
The following table presents our net debt as of June 30, 2024 and
December 31, 2023:
June 30, December 31,
2024 2023
Total long-term debt $ 2,650,000 $ 2,425,000
Cash and cash equivalents 173,813 95,345
Total restricted cash 305 3,416
Net debt $ 2,475,882 $ 2,326,239
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Net income $ 59,770 $ 23,345 $ 151,456 $ 106,654
Derivatives, net (2,852) 3,031 20,970 (3,809)
Cash settlements on commodity derivatives (4,489) (4,030) (7,423) (8,213)
Other, net(2) 2,130 4,838 3,927 6,737
Debt modifications and extinguishments 22,531 - 22,531 -
Total selected items before tax 17,320 3,839 40,005 (5,285)
Income tax (expense) benefit on adjustments(1) 3,392 277 (3,917) 3,785
Impact of valuation adjustments and other tax items - - (7,963) -
Adjusted net income $ 80,482 27,461 179,581 105,154
Net income per diluted share $ 0.12 $ 0.05 $ 0.32 $ 0.22
Derivatives, net (0.01) 0.01 0.04 (0.01)
Cash settlements on commodity derivatives (0.01) (0.01) (0.02) (0.02)
Other, net(2) - 0.01 0.01 0.01
Debt modifications and extinguishments 0.05 - 0.05 -
Total selected items before tax 0.03 0.01 0.08 (0.02)
Income tax (expense) benefit on adjustments(1) 0.02 - (0.01) 0.02
Impact of valuation adjustments and other tax items - - (0.02) -
Adjusted net income per diluted share $ 0.17 $ 0.06 $ 0.37 $ 0.22
Weighted average number of diluted shares 480,172 479,016 479,824 478,902
(1) Income tax expense is calculated at the statutory rate in which such
item(s) reside. Statutory rates for the U.S. and Ghana/Equatorial Guinea are
21% and 35%, respectively.
(2) Commencing in the first quarter of 2023, the Company combined the
lines for "Restructuring and other" and "Other, net" in its presentation of
Adjusted net income into a single line titled "Other, net."
Kosmos Energy Ltd.
Free Cash Flow
(In thousands, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Reconciliation of free cash flow:
Net cash provided by operating activities $ 223,657 $ 18,110 $ 496,220 $ 221,963
Net cash used for oil and gas assets - base business (120,525) (117,772) (275,385) (214,946)
Base business free cash flow 103,132 (99,662) 220,835 7,017
Net cash used for oil and gas assets - Mauritania/Senegal (117,646) (75,410) (277,608) (201,921)
Free cash flow $ (14,514) $ (175,072) $ (56,773) $ (194,904)
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Net Volume Sold
Oil (MMBbl) 5.210 3.547 10.099 8.492
Gas (MMcf) 4.101 2.774 8.437 5.535
NGL (MMBbl) 0.060 0.107 0.148 0.203
Total (MMBoe) 5.954 4.116 11.653 9.618
Total (Mboepd) 65.423 45.234 64.028 53.135
Revenue
Oil sales $ 435,100 $ 267,149 $ 837,217 $ 655,248
Gas sales 14,494 3,568 29,632 7,434
NGL sales 1,306 2,538 3,154 4,813
Total oil and gas revenue 450,900 273,255 870,003 667,495
Cash settlements on commodity derivatives (4,489) (4,030) (7,423) (8,213)
Realized revenue $ 446,411 $ 269,225 $ 862,580 $ 659,282
Oil and Gas Production Costs $ 150,733 $ 63,579 $ 244,351 $ 147,515
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 83.51 $ 75.32 $ 82.90 $ 77.16
Average gas sales price per Mcf 3.53 1.29 3.51 1.34
Average NGL sales price per Bbl 21.77 23.72 21.31 23.71
Average total sales price per Boe 75.73 66.38 74.66 69.40
Cash settlements on commodity derivatives per Boe (0.75) (0.98) (0.64) (0.85)
Realized revenue per Boe 74.98 65.40 74.02 68.55
Oil and gas production costs per Boe $ 25.31 $ 15.45 $ 20.97 $ 15.34
(1) Cash settlements on commodity derivatives are only related to Kosmos
and are calculated on a per barrel basis using Kosmos' Net Oil Volumes Sold.
Kosmos was overlifted by approximately 0.1 million barrels as of June 30,
2024.
Kosmos Energy Ltd.
Hedging Summary
As of June 30, 2024((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Floor(2) Sold Put Ceiling
2024:
Three-way collars Dated Brent 4,000 $ 70.00 $ 45.00 $ 93.12
Two-way collars Dated Brent 1,000 70.00 - 100.00
1H 2025:
Two-way collars Dated Brent 2,000 70.00 - 95.00
(1) Please see the Company's filed 10-Q for additional disclosure on
hedging material. Includes hedging position as of June 30, 2024 and hedges
put in place through filing date.
(2) "Floor" represents floor price for collars and strike price for
purchased puts.
2024 Guidance
3Q 2024 FY 2024 Guidance
Production(1,2) 65,000 - 69,000 boe per day 67,000 - 71,000 boe per day
Opex(3) $17.50 - $19.50 per boe $16.50 - $18.50 per boe
DD&A $19.50 - $21.50 per boe $18.00 - $20.00 per boe
G&A(~60% cash) $25 - $30 million $100 - $120 million
Exploration Expense(4) $10 - $15 million $40 - $60 million
Net Interest Expense(5) $25 - $30 million ~$140 million
Tax $9.00 - $11.00 per boe $10.00 - $12.00 per boe
Capital Expenditure $175 - $200 million ~$750 million
Note: Ghana / Equatorial Guinea revenue calculated by number of cargos.
(1) 3Q 2024 cargo forecast - Ghana: 3 cargos / Equatorial Guinea 1 cargo.
FY 2024 Ghana: 13 cargos / Equatorial Guinea 3.5 cargos. Average cargo sizes
950,000 barrels of oil.
(2) U.S. Gulf of Mexico Production: 3Q 2024 forecast 15,500-16,500 boe per
day; includes assumed downtime for weather. FY 2024: 15,500-17,000 boe per
day. Oil/Gas/NGL split for 2024: ~83%/~11%/~6%.
(3) FY 2024 opex excludes operating costs associated with GTA, which are
expected to total approximately $115 - $130 million ($50 - $70 million in 3Q
2024)
(4) Excludes leasehold impairments and dry hole costs
(5) Includes impact of capitalized interest; ~$35 million related to GTA
in 3Q 2024
Source: Kosmos Energy Ltd.
Investor Relations
Jamie Buckland
+44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations
Thomas Golembeski
+1-214-445-9674
tgolembeski@kosmosenergy.com
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