REG - Kosmos Energy Ltd - 3rd Quarter Results
06/11/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231106:nRSF4152Sa&default-theme=true
RNS Number : 4152S Kosmos Energy Limited 06 November 2023
KOSMOS ENERGY ANNOUNCES THIRD QUARTER 2023 RESULTS
DALLAS November 6, 2023-- Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for the
third quarter of 2023. For the quarter, the Company generated a net income of
$85 million, or $0.18 per diluted share. When adjusted for certain items that
impact the comparability of results, the Company generated an adjusted net
income((1)) of $126 million, or $0.26 per diluted share for the third quarter
of 2023.
THIRD QUARTER 2023 HIGHLIGHTS
• Net Production((2)): ~68,200 barrels of oil equivalent per day
(boepd), with sales of ~73,100 boepd
• Start up of the Jubilee South East development offshore Ghana
• Post quarter-end, Tiberius infrastructure-led exploration (ILX)
oil discovery offshore U.S. Gulf of Mexico
• Post quarter-end, assumption of operatorship and a greater working
interest at Yakaar-Teranga offshore Senegal, subject to customary government
approvals
• Repayment of Gulf of Mexico Term Loan, reducing our cost of
capital and simplifying our capital structure
• Revenues: $526 million, or $78.24 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $139 million, or $20.63 per boe
• Capital expenditures: $193 million
Commenting on the Company's third quarter 2023 performance, Chairman and Chief
Executive Officer Andrew G. Inglis said: "Kosmos continues to create value for
its stakeholders through the consistent delivery of its strategy to grow
production, advance its advantaged oil and LNG projects, and add resource
through infrastructure-led exploration.
"Production in the quarter increased by around 17% versus the second quarter
following the successful startup of the Jubilee South East development, with
three producers brought online taking gross field production up to around
100,000 barrels of oil per day, with continued growth expected.
"In addition, Kosmos advanced its two key development projects at Winterfell
and Tortue Phase 1. When online, these projects together with Jubilee South
East are expected to increase production by around 50% from the second half of
2022, generating the cash flow inflection we have been working towards.
"Looking to options for future growth, Kosmos recently announced the Tiberius
oil discovery in the U.S. Gulf of Mexico, as well as the assumption of
operatorship of the Yakaar-Teranga gas fields offshore Senegal. These low
cost, lower carbon oil and gas projects are expected to provide the next phase
of growth for the company beyond 2024. We plan to balance the pace and working
interest of these future projects to ensure we can manage our growth and
generate material free cash flow."
FINANCIAL UPDATE
Kosmos exited the third quarter of 2023 with approximately $2.4 billion of
total long-term debt and approximately $2.3 billion of net debt((1)) and
available liquidity of approximately $0.6 billion. The Company generated net
cash provided by operating activities of approximately $249 million and free
cash flow((1)) of approximately $54 million in the third quarter, in line with
expectations.
During the quarter, Kosmos repaid the Gulf of Mexico term loan, simplifying
the company's capital structure. The Company also successfully completed the
semi-annual redetermination of the reserve-based lending facility and deferred
the first amortization period, which results in no scheduled debt maturities
until 2025 and beyond.
Net capital expenditure for the third quarter of 2023 was $193 million, in
line with guidance.
OPERATIONAL UPDATE
Production
Total net production((2)) in the third quarter of 2023 averaged approximately
68,200 boepd, a ~17% increase from the second quarter, in line with guidance.
The Company exited the quarter in a net underlift position of approximately
0.5 million barrels, which is expected to partially reverse in the fourth
quarter.
Ghana
Production in Ghana averaged approximately 43,600 boepd net in the third
quarter of 2023. Kosmos lifted four cargos from Ghana during the quarter, in
line with guidance.
At Jubilee, production averaged approximately 95,900 bopd gross during the
quarter, ~32% higher compared to the previous quarter.
Three producer wells were brought online during the third quarter, taking
gross field production up to around 100,000 bopd.
Post quarter-end, two water injection wells, which were delayed due to
operational issues, were brought online. This delay coupled with higher than
anticipated downtime of the water injection pumps within the quarter, resulted
in a slower ramp-up in Jubilee production. This is expected to result in one
Jubilee cargo lifting originally planned for Kosmos in the fourth quarter of
2023, being deferred into early 2024.
At TEN, production averaged approximately 15,100 bopd gross for the third
quarter, in line with expectations, and lower quarter-on-quarter largely due
to a planned two week shutdown.
The partnership has submitted a draft amended plan of development for a
high-graded activity set at TEN and a combined gas sales agreement for Jubilee
and TEN to the Government of Ghana for approval. An interim gas sales
agreement for Jubilee associated gas has been extended through November 2023
at a price of $2.90/mmbtu while discussions are ongoing on a longer-term
agreement.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately 15,700 boepd net
(~82% oil) during the third quarter, above guidance due to lower storm
activity than anticipated during the period.
The Winterfell development continues to make good progress. Drilling of the
wells commenced in August and the first well has now been successfully
completed. Partners are targeting first oil around the end of the first
quarter of 2024.
As announced in October, the Tiberius ILX well in Keathley Canyon, block 964
encountered approximately 250 feet (~75 meters) of net oil pay in the primary
Wilcox target. The Tiberius well is located in approximately 7,500 feet (2,300
meters) of water and was drilled to a total vertical depth of approximately
25,800 feet (7,800 meters).
Kosmos is undertaking rock and fluid analysis to confirm the production
potential of the reservoir, with results expected around year-end. Kosmos is
also working with partners on subsea development options. The discovery is
located approximately 6 miles southeast of the Occidental-operated Lucius SPAR
production facility, enabling a short tie-back in the event of a development.
The Odd Job subsea pump project, intended to sustain long-term production from
the field, continues to progress and remains on track to be in service by
mid-2024. The Odd Job field saw some unplanned downtime in October and is
expected back online in November.
At Kodiak, workover plans have been developed for remediation and are now
expected to commence around the middle of 2024 given the better than forecast
performance of the well this year.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 25,400 bopd gross and
8,900 bopd net in the third quarter of 2023. Kosmos lifted one cargo from
Equatorial Guinea during the quarter, in line with guidance.
The infill drilling campaign is scheduled to commence in the fourth quarter of
2023 following a two well workover program utilizing the drilling rig. The
first of three infill wells is expected to be online around the end of the
first quarter 2024, with all three wells expected online by the second quarter
of 2024.
Akeng Deep, an ILX opportunity targeting an estimated pre-drill gross resource
of ~180 million barrels of oil in the deeper Albian trend, is expected to spud
next year following the completion of the workover and infill drilling
campaign.
Mauritania & Senegal
On Greater Tortue Ahmeyim, the following milestones have been achieved:
• Drilling: Earlier in the year, the operator, successfully drilled
and completed all four wells with expected production capacity significantly
higher than what is required for first gas.
• Hub Terminal: Construction work is complete, and handover to
operations was completed in August 2023.
• Subsea: Significant progress has been made on the revised plan to
complete installation of the infield flowlines and subsea structures due to
the previously announced delay in the subsea workstream. Work on the revised
plan is expected to commence later this quarter with new contractors.
• FLNG: Construction and mechanical completion activities are
finishing and pre-commissioning work is underway. The vessel is expected to
sail away later this quarter arriving on location early next year when hookup
work is expected to commence.
• FPSO: Currently en route to Mauritania/Senegal and is now expected
to arrive on location in the first quarter of 2024.
The critical path to first gas on Phase 1 of the Greater Tortue Ahmeyim
project is now through the arrival, hookup and commissioning of the FPSO. The
delivery of first gas in the first quarter of 2024, as signaled by BP (the
operator) in its third quarter results last week, depends on the execution of
this workstream, which has the potential to slip into the second quarter of
2024.
On Yakaar-Teranga, Kosmos announced today that it had assumed operatorship and
increased its interest in the field to 90% (from 30%), subject to customary
government approvals. Kosmos is working closely with Senegal's national oil
company (PETROSEN) and the Government of Senegal on an innovative development
concept that prioritizes cost-competitive gas to the rapidly growing domestic
market, combined with an offshore liquefied natural gas facility targeting
exports into international LNG markets. The project supports the country's
'Plan Sénégal Emergent' objective of providing affordable, abundant, and
cleaner energy.
(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 third quarter 2023
financial and operating results today, November 6, 2023, 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 Atlantic Margins. Our key assets include
production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as
well as a world-class gas development offshore Mauritania and Senegal. We also
maintain a sustainable proven basin exploration program in Equatorial Guinea,
Ghana 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) loss on extinguishment of debt, (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 (including, but not limited to,
the impact of the COVID-19 pandemic), 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 Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Revenues and other income:
Oil and gas revenue $ 526,348 $ 456,056 $ 1,193,843 $ 1,735,439
Gain on sale of assets - - - 471
Other income, net 198 48 (115) 143
Total revenues and other income 526,546 456,104 1,193,728 1,736,053
Costs and expenses:
Oil and gas production 138,782 62,372 286,297 277,264
Facilities insurance modifications, net - 494 - 7,246
Exploration expenses 10,290 17,215 33,305 118,656
General and administrative 25,120 24,007 77,731 74,424
Depletion, depreciation and amortization 132,347 106,313 331,634 386,961
Interest and other financing costs, net 25,440 29,796 74,379 92,317
Derivatives, net 45,971 (113,842) 42,162 243,534
Other expenses, net 11,055 (218) 17,864 (1,320)
Total costs and expenses 389,005 126,137 863,372 1,199,082
Income before income taxes 137,541 329,967 330,356 536,971
Income tax expense 52,356 107,713 138,517 196,144
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827
Net income per share:
Basic $ 0.19 $ 0.49 $ 0.42 $ 0.75
Diluted $ 0.18 $ 0.47 $ 0.40 $ 0.72
Weighted average number of shares used to compute net income per share:
Basic 460,108 455,840 459,477 455,158
Diluted 481,099 476,431 479,738 474,820
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September 30, December 31,
2023 2022
Assets
Current assets:
Cash and cash equivalents $ 138,742 $ 183,405
Receivables, net 118,567 119,735
Other current assets 204,487 165,581
Total current assets 461,796 468,721
Property and equipment, net 4,179,969 3,842,647
Other non-current assets 327,636 268,620
Total assets $ 4,969,401 $ 4,579,988
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 199,031 $ 212,275
Accrued liabilities 338,790 325,206
Current maturities of long-term debt - 30,000
Other current liabilities 26,597 6,773
Total current liabilities 564,418 574,254
Long-term liabilities:
Long-term debt, net 2,389,197 2,195,911
Deferred tax liabilities 433,628 468,445
Other non-current liabilities 582,489 553,530
Total long-term liabilities 3,405,314 3,217,886
Total stockholders' equity 999,669 787,848
Total liabilities and stockholders' equity $ 4,969,401 $ 4,579,988
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Operating activities:
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827
Adjustments to reconcile net income to net cash provided by operating
activities:
Depletion, depreciation and amortization (including deferred financing costs) 134,809 108,890 339,177 394,799
Deferred income taxes (28,452) 45,987 (37,481) (37,445)
Unsuccessful well costs and leasehold impairments 931 9,424 2,244 83,086
Change in fair value of derivatives 52,687 (110,262) 52,467 257,112
Cash settlements on derivatives, net(1) (10,846) (80,710) (21,478) (304,328)
Equity-based compensation 10,580 8,767 31,778 25,896
Gain on sale of assets - - - (471)
Loss on extinguishment of debt 1,503 - 1,503 192
Other 4,021 (2,198) 2,547 (5,940)
Changes in assets and liabilities:
Net changes in working capital (987) 52,898 (91,202) 109,508
Net cash provided by operating activities 249,431 255,050 471,394 863,236
Investing activities
Oil and gas assets (195,047) (222,562) (611,914) (543,349)
Acquisition of oil and gas properties - - - (21,205)
Proceeds on sale of assets - 10 - 118,703
Notes receivable from partners (13,337) (16,760) (46,632) (28,188)
Net cash used in investing activities (208,384) (239,312) (658,546) (474,039)
Financing activities:
Borrowings under long-term debt 150,000 - 300,000 -
Payments on long-term debt (137,500) (7,500) (145,000) (322,500)
Tax withholdings on restricted stock units - - (11,811) (2,753)
Dividends - - (166) (655)
Deferred financing costs (534) - (534) (6,288)
Net cash provided by (used in) financing activities 11,966 (7,500) 142,489 (332,196)
Net increase (decrease) in cash, cash equivalents and restricted cash 53,013 8,238 (44,663) 57,001
Cash, cash equivalents and restricted cash at beginning of period 89,145 223,659 186,821 174,896
Cash, cash equivalents and restricted cash at end of period $ 142,158 $ 231,897 $ 142,158 $ 231,897
(1) Cash settlements on commodity hedges were $(4.1) million and $(77.0)
million for the three months ended September 30, 2023 and 2022, respectively,
and $(12.3) million and $(289.9) million for the nine months ended
September 30, 2023 and 2022.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Nine months ended Twelve Months Ended
September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 September 30, 2023
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827 $ 77,563
Exploration expenses 10,290 17,215 33,305 118,656 48,879
Facilities insurance modifications, net - 494 - 7,246 (1,003)
Depletion, depreciation and amortization 132,347 106,313 331,634 386,961 442,929
Impairment of long-lived assets - - - - 449,969
Equity-based compensation 10,580 8,767 31,778 25,896 40,428
Derivatives, net 45,971 (113,842) 42,162 243,534 59,520
Cash settlements on commodity derivatives (4,130) (77,001) (12,343) (289,897) (50,318)
Other expenses, net(2) 11,055 (218) 17,864 (1,320) 10,129
Gain on sale of assets - - - (471) (50,000)
Interest and other financing costs, net 25,440 29,796 74,379 92,317 100,322
Income tax expense 52,356 107,713 138,517 196,144 52,889
EBITDAX $ 369,094 $ 301,491 $ 849,135 $ 1,119,893 $ 1,181,307
Sold Ghana & acquired Kodiak interests EBITDAX Adj(1) - - - (15,723) -
Pro Forma EBITDAX $ 369,094 $ 301,491 $ 849,135 $ 1,104,170 $ 1,181,307
(1) Adjustment to present Pro Forma EBITDAX for the impact of the revenues
less direct operating expenses from the sold Ghana interest associated with
the Ghana pre-emption and the acquired Kodiak interest, for the respective
period. The results are presented on the accrual basis of accounting, however
as the acquired properties were not accounted for or operated as a separate
segment, division, or entity, complete financial statements under U.S.
generally accepted accounting principles are not available or practicable to
produce. The results are not intended to be a complete presentation of the
results of operations of the acquired properties and may not be representative
of future operations as they do not include general and administrative
expenses; interest expense; depreciation, depletion, and amortization;
provision for income taxes; and certain other revenues and expenses not
directly associated with revenues from the sale of crude oil and natural gas.
(2) 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 September 30, 2023 and
December 31, 2022:
September 30, December 31,
2023 2022
Total long-term debt $ 2,425,000 $ 2,270,000
Cash and cash equivalents 138,742 183,405
Total restricted cash 3,416 3,416
Net debt $ 2,282,842 $ 2,083,179
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827
Derivatives, net 45,971 (113,842) 42,162 243,534
Cash settlements on commodity derivatives (4,130) (77,001) (12,343) (289,897)
Gain on sale of assets - - - (471)
Facilities insurance modifications, net - 494 - 7,246
Other, net(2) 11,117 (90) 17,854 (1,162)
Impairment of suspended well costs - (355) - 63,894
Loss on extinguishment of debt 1,503 - 1,503 192
Total selected items before tax 54,461 (190,794) 49,176 23,336
Income tax (expense) benefit on adjustments(1) (13,630) 59,739 (9,845) 12,923
Impact of valuation adjustments and U.S. tax law changes - (1,354) - (12,745)
Adjusted net income $ 126,016 89,845 231,170 364,341
Net income per diluted share $ 0.18 $ 0.47 $ 0.40 $ 0.72
Derivatives, net 0.10 (0.24) 0.09 0.51
Cash settlements on commodity derivatives (0.01) (0.16) (0.03) (0.61)
Gain on sale of assets - - - -
Facilities insurance modifications, net - - - 0.02
Other, net(2) 0.02 - 0.04 -
Impairment of suspended well costs - - - 0.13
Loss on extinguishment of debt - - - -
Total selected items before tax 0.11 (0.40) 0.10 0.05
Income tax (expense) benefit on adjustments(1) (0.03) 0.12 (0.02) 0.03
Impact of valuation adjustments and U.S. tax law changes - - - (0.03)
Adjusted net income per diluted share $ 0.26 $ 0.19 $ 0.48 $ 0.77
Weighted average number of diluted shares 481,099 476,431 479,738 474,820
(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 Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Reconciliation of free cash flow:
Net cash provided by operating activities $ 249,431 $ 255,050 $ 471,394 $ 863,236
Net cash used for oil and gas assets - base business (122,542) (89,811) (337,488) (243,899)
Base business free cash flow 126,889 165,239 133,906 619,337
Net cash used for oil and gas assets - Mauritania/Senegal (72,505) (132,751) (274,426) (299,450)
Free cash flow $ 54,384 $ 32,488 $ (140,520) $ 319,887
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Net Volume Sold
Oil (MMBbl) 5.956 4.458 14.448 16.028
Gas (MMcf) 4.046 0.859 9.582 3.115
NGL (MMBbl) 0.097 0.084 0.299 0.330
Total (MMBoe) 6.727 4.685 16.344 16.877
Total (Mboepd) 73.123 50.926 59.868 61.821
Revenue
Oil sales $ 511,735 $ 444,491 $ 1,166,983 $ 1,699,167
Gas sales 13,080 8,595 20,514 23,802
NGL sales 1,533 2,970 6,346 12,470
Total oil and gas revenue 526,348 456,056 1,193,843 1,735,439
Cash settlements on commodity derivatives (4,130) (77,001) (12,343) (289,897)
Realized revenue $ 522,218 $ 379,055 $ 1,181,500 $ 1,445,542
Oil and Gas Production Costs $ 138,782 $ 62,372 $ 286,297 $ 277,264
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 85.92 $ 99.71 $ 80.77 $ 106.01
Average gas sales price per Mcf 3.23 10.01 2.14 7.64
Average NGL sales price per Bbl 15.80 35.36 21.22 37.79
Average total sales price per Boe 78.24 97.34 73.04 102.83
Cash settlements on commodity derivatives per Boe (0.61) (16.44) (0.76) (17.18)
Realized revenue per Boe 77.63 80.91 72.29 85.65
Oil and gas production costs per Boe $ 20.63 $ 13.31 $ 17.51 $ 16.43
(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 494.7 thousand barrels as of
September 30, 2023.
Kosmos Energy Ltd.
Hedging Summary
As of September 30, 2023((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Floor(2) Sold Put Ceiling
2023:
Three-way collars Dated Brent 1,500 $ 71.67 $ 49.17 $ 107.58
Two-way collars Dated Brent 1,250 72.00 - 112.00
2024:
Three-way collars Dated Brent 4,000 70.00 45.00 96.25
Two-way collars Dated Brent 2,000 65.00 - 85.00
Two-way collars Dated Brent 2,000 70.00 - 100.00
(1) Please see the Company's filed 10-Q for additional disclosure on
hedging material. Includes hedging position as of September 30, 2023 and
hedges put in place through filing date.
(2) "Floor" represents floor price for collars and strike price for
purchased puts.
2023 Guidance
4Q 2023 FY 2023 Guidance
Production(1,2) 66,000 - 69,000 boe per day ~63,000 boe per day
Opex $12 - $14 per boe ~$16 per boe
DD&A $18 - $20 per boe ~$20 per boe
G&A(~60% cash) $31 - $33 million ~$110 million
Exploration Expense(3) ~$10 million ~$40 million
Net Interest Expense(4) ~$25 million / quarter
Tax $14 - $16 per boe $10 - $11 per boe
Capital Expenditure(5) $225 - $250 million ~$800 million
Note: Ghana / Equatorial Guinea revenue calculated by number of cargos.
(1) 4Q 2023 cargo forecast - Ghana: 4 cargos / Equatorial Guinea 1 cargo.
FY 2023 Ghana: 13 cargos / Equatorial Guinea 3.5 cargos. Average cargo sizes
950,000 barrels of oil.
(2) U.S. Gulf of Mexico Production: 4Q 2023 forecast 13,500-14,500 boe per
day. FY2023: 15,000-15,500 boe per day. Oil/Gas/NGL split for 2023:
~81%/~12%/~7%.
(3) Excludes leasehold impairments and dry hole costs
(4) Includes impact of capitalized interest through year-end 2023 of ~$30
million/quarter
(5) Excludes acquisitions/sales of oil & gas assets
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
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRTDGBDBISGDGXURecent news on Kosmos Energy
See all newsREG - Kosmos Energy Ltd - 1st Quarter Results
AnnouncementREG - Kosmos Energy Ltd - Reserve-Based Lending Facility Refinancing
AnnouncementREG - Kosmos Energy Ltd - Publication of Proxy Statement
AnnouncementREG - Kosmos Energy Ltd - First Quarter 2024 Results Date
AnnouncementREG - Kosmos Energy Ltd - Pricing of Senior Notes Offering
Announcement