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REG - Kosmos Energy Ltd - 1st Quarter Results

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RNS Number : 3785H  Kosmos Energy Limited  06 May 2025

 

KOSMOS ENERGY ANNOUNCES FIRST QUARTER 2025 RESULTS

 

DALLAS - May 6, 2025-- Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for
the first quarter of 2025. For the quarter, the Company generated a net loss
of $111 million, or $0.23 per diluted share. When adjusted for certain
items that impact the comparability of results, the Company generated
an adjusted net loss((1)) of $105 million, or $0.22 per diluted share for
the first quarter of 2025.

 

FIRST QUARTER 2025 HIGHLIGHTS

 

•     Net Production(2): ~60,500 barrels of oil equivalent per day
(boepd), with sales of ~49,600 boepd, underlifted by approximately 1.0 million
barrels of oil equivalent (mmboe)

 

•     Revenues: $290 million, or $65.27 per boe (excluding the impact of
derivative cash settlements)

 

•     Production expense: $167 million ($24.99 per boe excluding $58.1
million of production expenses associated with the Greater Tortue Ahmeyim
(GTA) liquefied natural gas (LNG) project)

 

•     Capital expenditures: $86 million

 

•     Post quarter end, commenced export from the GTA project offshore
Mauritania & Senegal in April 2025; Currently lifting a second cargo

 

•     Completed the 4D seismic survey over Jubilee and TEN that will be
used to high grade the 2026+ drilling campaign

 

•    Successfully completed the Spring reserve-based lending facility
(RBL) redetermination maintaining the $1.35 billion facility size

 

 

 

Commenting on the Company's first quarter 2025 performance, Chairman and Chief
Executive Officer Andrew G. Inglis said: "While the macro backdrop continues
to be volatile, Kosmos' priorities announced with our full year 2024 results
in February remain unchanged - the delivery of free cash flow from increasing
production and a rigorous focus on costs. We are seeing evidence of this with
a material reduction in year-on-year capex in the first quarter and production
starting to rise in the second quarter after heavy scheduled 1Q maintenance.

 

Operationally, the GTA partnership achieved a major milestone in April
exporting the first cargo from the project, with a second currently loading.
Production is ramping up to the contracted sales volume, with potential to
push higher towards, or beyond, the nameplate capacity of the floating LNG
(FLNG) vessel of 2.7 mtpa. In Ghana, the partnership completed the 4D seismic
survey. This new seismic data, combined with the latest processing techniques,
will support the high grading of the future infill drilling program.

 

Financially, the actions taken in 2024 to improve the resilience of the
company enable Kosmos to better withstand the current market volatility. We
concluded the spring RBL redetermination with a strong reserve base supporting
the $1.35 billion facility capacity, with ample liquidity. In addition, we
continue to focus on reducing the company's capex and overhead costs and are
delivering the targeted reductions.

 

The long-term outlook for our portfolio of high-quality assets remains
positive. A 2P reserves-to-production ratio of over 20 years supports the
long-term potential of Kosmos as we focus in the near term on cash generation,
cost control and debt paydown."

 

FINANCIAL UPDATE

 

Net capital expenditure for the first quarter of 2025 was $86 million, below
guidance primarily due to the Ghana 4D seismic campaign coming in under budget
and a one-month delay in drilling Winterfell-4. We are working to reduce full
year 2025 capex below the $400 million guidance given with the full year 2024
results.  In addition, we have made significant progress on the $25 million
overhead reduction target.

 

Operating costs per barrel of oil equivalent were in line with guidance, but
higher year on year, reflecting the lower production and higher maintenance in
the first quarter of 2025, including a construction support vessel at Jubilee
prior to and during the scheduled shutdown and the Winterfell-3 workover.

 

In March, Kosmos successfully concluded the RBL redetermination, maintaining a
facility size of $1.35 billion which is supported by a borrowing base that is
materially higher, at a long-term price deck below the current forward curve.

 

The Company generated net cash provided by operating activities of
approximately $(1) million and free cash flow((1)) of approximately $(91)
million. As previously signaled, the first quarter free cash flow was impacted
by the timing of liftings, heavy scheduled maintenance across the portfolio,
and no cash flow contribution from GTA sales in the first quarter.

 

Kosmos exited the first quarter of 2025 with approximately $2.85 billion of
net debt((1)) and available liquidity of approximately $400 million. Post
quarter end, Kosmos continued its rolling hedging program adding an additional
two million barrels of oil. The company now has approximately 40% of remaining
2025 oil production hedged with a floor of approximately $65/boe and a ceiling
of approximately $80/boe.

 

OPERATIONAL UPDATE

 

Production

 

Total net production((2)) in the first quarter of 2025 averaged approximately
60,500 boepd, impacted by planned shutdowns at Jubilee in Ghana and at the
Kodiak host facility in the Gulf of America. Both shutdowns have been
completed, with no major scheduled shutdowns for the remainder of the year.
Production was slightly below guidance primarily due to the delayed ramp-up at
GTA. Full year 2025 production guidance for GTA remains at 20-25 gross cargos
as production ramps up towards the annual contracted level. Full year 2025
company production guidance is unchanged at 70,000 - 80,000 boepd.

 

The Company exited the quarter in a net underlift position of approximately
1.2 mmboe.

 

Mauritania and Senegal

 

The GTA project successfully exported its first LNG cargo in early April, a
major milestone for the project. Production has continued to ramp-up with a
second cargo currently lifting. Production in the first quarter averaged
approximately 1,300 boepd net (7.8 mmcfd). All four FLNG trains are now
operational and are being tested at ~10% above the nameplate capacity.
Additionally, the subsurface is performing ahead of expectations, with higher
connected volumes potentially reducing the number of future wells required.

 

Near-term, the partnership is continuing to work to reduce operating costs on
GTA phase 1, eliminating duplicate costs related to the handover from
commissioning to operations. We are also actively progressing the FPSO
refinancing which is expected to be completed in the second half of the year.
The operator is also investigating alternative operating models that could
further materially reduce costs.

 

The partnership has commenced work on Phase 1+, a low-cost brownfield
expansion of the development that is expected to double gas sales through
increased LNG production and domestic gas. The expansion would leverage
existing infrastructure put in place for the initial phase of GTA with
low-cost upgrades to existing facilities that should drive materially lower
unit costs and enhance overall project returns.

 

Ghana

 

Production in Ghana averaged approximately 33,000 boepd net in the first
quarter of 2025. Kosmos lifted two cargos from Ghana during the quarter, in
line with guidance.

 

At Jubilee (38.6% working interest), oil production in the first quarter
averaged approximately 66,600 bopd gross, reflecting the scheduled FPSO
shutdown that ran from March 25, 2025 to April 8, 2025. The shutdown was
completed safely and on budget.

 

The Noble Venturer rig is due to arrive later this month to drill two Jubilee
wells in 2025. The rig is scheduled to undertake a four-well drilling campaign
on Jubilee in 2026, which will benefit from the 4D seismic data that is
currently being processed with state-of-the-art algorithms.

 

In the first quarter of 2025, gas production net to Kosmos was approximately
5,300 boepd in line with expectations.

 

At TEN (20.4% working interest), oil production averaged approximately 16,900
bopd gross for the first quarter.

 

Gulf of America

 

Production in the Gulf of America averaged approximately 17,200 boepd net
(~85% oil) during the first quarter reflecting the scheduled Kodiak shutdown.
Remediation of the Winterfell-3 well was unsuccessful and the partnership is
currently evaluating a future sidetrack to produce those reserves. Drilling of
the Winterfell-4 well is currently underway and is expected online in the
third quarter of 2025.

 

On Tiberius, Kosmos (operator, 50% working interest) continues to progress the
development with our partner Oxy (50% working interest), evaluating
opportunities to further enhance the project. This has resulted in a lower
cost development, which will be supported by new ocean bottom node (OBN)
seismic data being acquired this year.

 

Equatorial Guinea

 

Production in Equatorial Guinea averaged approximately 25,700 bopd gross and
9,000 bopd net in the first quarter. Kosmos lifted 0.5 cargos from Equatorial
Guinea during the quarter, in line with guidance.

 

For the remainder of the year, production should be supported through a cost
effective well work program.

 

(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure.

(2) Production means net entitlement volumes. In Ghana, Equatorial Guinea, and
Mauritania and Senegal this means those volumes net to Kosmos' working
interest or participating interest and net of royalty or production sharing
contract effect. In the Gulf of America, 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 first quarter 2025
financial and operating results today, May 6, 2025, 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 Energy is a leading deepwater exploration and production company
focused on meeting the world's growing demand for energy. We have diversified
oil and gas production from assets offshore Ghana, Equatorial Guinea,
Mauritania, Senegal and the Gulf of America. Additionally, in the proven
basins where we operate we are advancing high-quality development
opportunities, which have come from our exploration success. Kosmos is listed
on the NYSE and LSE 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
                                                                                     March 31,
                                                                                     2025                                           2024
 Revenues and other income:
 Oil and gas revenue                                                                 $        290,135                               $        419,103
 Other income, net                                                                                    296                                              36
 Total revenues and other income                                                               290,431                                        419,139

 Costs and expenses:
 Oil and gas production                                                                        167,308                                          93,618
 Exploration expenses                                                                              9,669                                        12,060
 General and administrative                                                                      26,255                                         28,265
 Depletion, depreciation and amortization                                                      120,667                                        100,928
 Interest and other financing costs, net                                                         51,842                                         16,448
 Derivatives, net                                                                                  6,732                                        23,822
 Other expenses, net                                                                               1,989                                          2,029
 Total costs and expenses                                                                      384,462                                        277,170

 Income (loss) before income taxes                                                             (94,031)                                       141,969
 Income tax expense                                                                              16,575                                         50,283
 Net income (loss)                                                                   $      (110,606)                               $          91,686

 Net income (loss) per share:
 Basic                                                                               $            (0.23)                            $              0.20
 Diluted                                                                             $            (0.23)                            $              0.19

 Weighted average number of shares used to compute net income (loss) per share:
 Basic                                                                                         475,681                                        468,042
 Diluted                                                                                       475,681                                        482,096

 

Kosmos Energy Ltd.

Condensed Consolidated Balance Sheets

(In thousands, unaudited)

                                                 March 31,                           December 31,
                                                 2025                                2024
 Assets
 Current assets:
 Cash and cash equivalents                       $            49,791                 $            84,972
 Receivables, net                                            152,513                             164,959
 Other current assets                                        214,835                             196,201
 Total current assets                                        417,139                             446,132

 Property and equipment, net                              4,413,056                           4,444,221
 Other non-current assets                                    439,219                             418,635
 Total assets                                    $       5,269,414                   $       5,308,988

 Liabilities and stockholders' equity
 Current liabilities:
 Accounts payable                                $          332,696                  $          349,994
 Accrued liabilities                                         214,619                             244,954
 Total current liabilities                                   547,315                             594,948

 Long-term liabilities:
 Long-term debt, net                                      2,847,621                           2,744,712
 Deferred tax liabilities                                    314,607                             313,433
 Other non-current liabilities                               461,691                             455,471
 Total long-term liabilities                              3,623,919                           3,513,616

 Total stockholders' equity                               1,098,180                           1,200,424
 Total liabilities and stockholders' equity      $       5,269,414                   $       5,308,988

 

Kosmos Energy Ltd.

Condensed Consolidated Statements of Cash Flow

(In thousands, unaudited)

                                                                                    Three Months Ended
                                                                                    March 31,
                                                                                    2025                                                       2024
 Operating activities:
 Net income (loss)                                                                  $       (110,606)                                          $           91,686
 Adjustments to reconcile net income to net cash provided by (used in)
 operating activities:
 Depletion, depreciation and amortization (including deferred financing costs)                 122,551                                                    103,327
 Deferred income taxes                                                                             1,811                                                    (7,316)
 Unsuccessful well costs and leasehold impairments                                                 1,903                                                        466
 Change in fair value of derivatives                                                               7,586                                                    27,010
 Cash settlements on derivatives, net(1)                                                             494                                                    (6,194)
 Equity-based compensation                                                                         8,361                                                      7,328
 Other                                                                                           (5,597)                                                    (5,708)
 Changes in assets and liabilities:
 Net changes in working capital                                                                (27,391)                                                     61,964
 Net cash provided by (used in) operating activities                                                (888)                                                 272,563

 Investing activities
 Oil and gas assets                                                                            (90,245)                                                 (314,822)
 Notes receivable and other investing activities                                               (44,048)                                                     (2,528)
 Net cash used in investing activities                                                       (134,293)                                                  (317,350)

 Financing activities:
 Borrowings under long-term debt                                                               100,000                                                    175,000
 Payments on long-term debt                                                                            -                                                (300,000)
 Net proceeds from issuance of senior notes                                                            -                                                  390,430
 Purchase of capped call transactions                                                                  -                                                  (49,800)
 Other financing costs                                                                                 -                                                  (11,691)
 Net cash provided by financing activities                                                     100,000                                                    203,939

 Net increase (decrease) in cash, cash equivalents and restricted cash                         (35,181)                                                   159,152
 Cash, cash equivalents and restricted cash at beginning of period                               85,277                                                     98,761
 Cash, cash equivalents and restricted cash at end of period                        $           50,096                                         $         257,913

 

(1)   Cash settlements on commodity hedges were $(1.8) million and $(2.9)
million for the three months ended March 31, 2025 and 2024, respectively.

Kosmos Energy Ltd.

EBITDAX

(In thousands, unaudited)

                                            Three Months Ended                                                                               Twelve Months Ended
                                            March 31, 2025                                     March 31, 2024                                March 31, 2025
 Net income (loss)                          $         (110,606)                                $             91,686                          $            (12,441)
 Exploration expenses                                         9,669                                            12,060                                      117,516
 Depletion, depreciation and amortization                 120,667                                            100,928                                       476,513
 Equity-based compensation                                    8,361                                              7,328                                       38,984
 Derivatives, net                                             6,732                                            23,822                                        (4,991)
 Cash settlements on commodity derivatives                  (1,751)                                            (2,934)                                     (11,304)
 Other expenses, net(1)                                       1,989                                              2,029                                       17,663
 Interest and other financing costs, net                    51,842                                             16,448                                      123,992
 Income tax expense                                         16,575                                             50,283                                      126,253
 EBITDAX                                    $           103,478                                $           301,650                           $           872,185

 

 

The following table presents our net debt as of March 31, 2025 and
December 31, 2024:

                                March 31,                                         December 31,
                                2025                                              2024
 Total long-term debt           $        2,900,274                                $        2,800,274
 Cash and cash equivalents                      49,791                                            84,972
 Total restricted cash                               305                                               305
 Net debt                       $        2,850,178                                $        2,714,997

 

Kosmos Energy Ltd.

Adjusted Net Income (Loss)

(In thousands, except per share amounts, unaudited)

                                                      Three Months Ended
                                                      March 31,
                                                      2025                                                       2024
 Net income (loss)                                    $       (110,606)                                          $           91,686

 Derivatives, net                                                    6,732                                                    23,822
 Cash settlements on commodity derivatives                         (1,751)                                                    (2,934)
 Other, net(2)                                                       1,664                                                      1,797
 Total selected items before tax                                     6,645                                                    22,685

 Income tax (expense) benefit on adjustments(1)                    (1,465)                                                    (7,311)
 Impact of valuation adjustments and other tax items                     -                                                    (7,963)
 Adjusted net income (loss)                           $       (105,426)                                                       99,097

 Net income (loss) per diluted share                  $             (0.23)                                       $              0.19

 Derivatives, net                                                     0.01                                                       0.05
 Cash settlements on commodity derivatives                               -                                                      (0.01)
 Total selected items before tax                                      0.01                                                       0.04

 Income tax (expense) benefit on adjustments(1)                          -                                                      (0.01)
 Impact of valuation adjustments and other tax items                     -                                                      (0.01)
 Adjusted net income (loss) per diluted share         $             (0.22)                                       $              0.21

 Weighted average number of diluted shares                       475,681                                                    482,096

 

(1)   Income tax expense is calculated at the statutory rate in which such
item(s) reside. Statutory rates for the U.S., Equatorial Guinea and Ghana are
21%, 25% and 35%, respectively.

 

Kosmos Energy Ltd.

Free Cash Flow

(In thousands, unaudited)

 

                                                            Three Months Ended
                                                            March 31,
                                                            2025                                  2024
 Reconciliation of free cash flow:
 Net cash provided by (used in) operating activities        $           (888)                     $      272,563
 Net cash used for oil and gas assets - base business               (40,302)                            (156,131)
 Base business free cash flow                                       (41,190)                              116,432
 Net cash used for oil and gas assets - Mauritania/Senegal          (49,943)                            (158,691)
 Free cash flow                                             $      (91,133)                       $      (42,259)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kosmos Energy Ltd.

Operational Summary

(In thousands, except barrel and per barrel data, unaudited)

 

                                                    Three Months Ended
                                                    March 31,
                                                    2025                                                        2024
 Net Volume Sold
 Oil (MMBbl)                                                            3.659                                                       4.890
 Gas (MMcf)                                                             4.172                                                       4.336
 NGL (MMBbl)                                                            0.091                                                       0.088
 Total (MMBoe)                                                          4.445                                                       5.701
 Total (Mboepd)                                                       49.393                                                      62.645

 Revenue
 Oil sales                                          $              270,405                                      $              402,117
 Gas sales                                                            17,629                                                      15,138
 NGL sales                                                              2,101                                                       1,848
 Total oil and gas revenue                                          290,135                                                     419,103
 Cash settlements on commodity derivatives                            (1,751)                                                     (2,934)
 Realized revenue                                   $              288,384                                      $              416,169

 Oil and Gas Production Costs                       $              167,308                                      $                93,618

 Sales per Bbl/Mcf/Boe
 Average oil sales price per Bbl                    $                  73.90                                    $                  82.23
 Average gas sales price per Mcf                                           4.23                                                        3.49
 Average NGL sales price per Bbl                                        23.09                                                       21.00
 Average total sales price per Boe                                      65.27                                                       73.52
 Cash settlements on commodity derivatives per Boe                       (0.39)                                                      (0.51)
 Realized revenue per Boe                                               64.87                                                       73.00

 Oil and gas production costs per Boe               $                  37.64                                    $                  16.42

 

(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 underlifted by approximately 1.2 million barrels as of March 31,
2025.

 

Kosmos Energy Ltd.

Hedging Summary

As of March 31, 2025((1))

(Unaudited)

                                                                                  Weighted Average Price per Bbl

                                   Index            MBbl                          Swap                            Floor(2)                                   Ceiling
 2025:
 Two-way collars 1H25  ((3))       Dated Brent                1,000               $             -                 $        70.00                             $        85.00
 Swaps 1H25                        Dated Brent                1,000                         75.48                                -                                          -
 Two-way collars FY25              Dated Brent                1,500                              -                          70.00                                      85.00
 Three-way collars FY25            Dated Brent                1,500                              -                          70.00                                      85.00
 Two-way collars 2H25              Dated Brent                2,000                              -                          55.00                                      70.00

 

(1)   Please see the Company's filed 10-Q for additional disclosure on
hedging material. Includes hedging position as of March 31, 2025 and hedges
put in place through filing date.

(2)   "Floor" represents floor price for collars and strike price for
purchased puts.

(3)   We entered into Dated Brent call spread contracts with a purchased
price of $95.00 per barrel and a sold price of $85.00 per barrel for 2.0
MMBbl, effectively reducing the ceiling on our 1H25 two-way collars to $85.00
per barrel.

 

2025 Guidance

                          2Q 2025                      FY 2025 Guidance

 Production(1,2,3)        66,000 - 72,000 boe per day  70,000 - 80,000 boe per day

 Opex(4)                  $25.00 - $27.00 per boe      $18.00 - $20.00 per boe

 DD&A                     $20.00 - $22.00 per boe      $22.00 - $24.00 per boe

 G&A(~66% cash)           $20 - $25 million            $80 - $100 million

 Exploration Expense(5)   ~$10 million                 $25 - $45 million

 Net Interest Expense(6)  ~$50 million                 $180 - $200 million

 Tax                      $4.00 - $6.00 per boe        $6.00 - $8.00 per boe

 Capital Expenditure      $120 - $140 million          <$400 million

 

 

Note: Ghana / Equatorial Guinea / Mauritania & Senegal revenue calculated
by number of cargos.

(1)   2Q 2025 net cargo forecast - Ghana: 3-4 cargos / Equatorial Guinea: 1
cargo. FY 2025 Ghana: 11-12 cargos / Equatorial Guinea 3.5 cargos. Average
cargo sizes 950,000 barrels of oil.

(2)   2Q 2025 gross cargo forecast - Mauritania & Senegal: 4.5-5.5
cargos. FY 2025: 20-25 cargos. Average cargo size ~170,000 m(3) with Kosmos
NRI of ~24%.

(3)   Gulf of America Production: 2Q 2025 forecast 18,000-20,000 boe per
day. FY 2025: 17,000-20,000 boe per day. Oil/Gas/NGL split for 2025:
~83%/~11%/~6%.

(4)   FY 2025 opex excludes operating costs associated with GTA, which are
expected to total approximately $225 - $245 million net ($45 - $65 million in
2Q 2025). These values include cost associated with the FPSO lease which total
approximately $60 million FY 2025 and $15 million 2Q 2025.

(5)   Excludes leasehold impairments and dry hole costs

(6)   Includes capitalized interest

 

 

 

 

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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