REG - Kosmos Energy Ltd - 3rd Quarter Results
04/11/2024 07:00
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RNS Number : 7505K Kosmos Energy Limited 04 November 2024
KOSMOS ENERGY ANNOUNCES THIRD QUARTER 2024 RESULTS
DALLAS - November 4, 2024 - Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for the
third quarter of 2024. For the quarter, the Company generated a net income of
$45 million, or $0.09 per diluted share. When adjusted for certain items that
impact the comparability of results, the Company generated an adjusted net
income((1)) of $38 million, or $0.08 per diluted share for the third quarter
of 2024.
THIRD QUARTER 2024 HIGHLIGHTS
• Net Production((2)): ~65,400 barrels of oil equivalent per day
(boepd), with sales of ~63,200 boepd
• Revenues: $408 million, or $70.18 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $133 million ($16.14 per boe excluding $39.7
million of production expenses associated with the Greater Tortue Ahmeyim
(GTA) project)
• Capital expenditures: $210 million
• Successfully issued $500 million of new Senior Notes due 2031,
with proceeds refinancing near-term bond maturities
• In the US Gulf of Mexico, achieved first oil at Winterfell,
successfully completed the operated Kodiak-3 workover and the startup of the
Odd Job subsea pump
• Post quarter end, in Equatorial Guinea startup of the first infill
well, with gross production now around 30,000 barrels of oil per day (bopd)
Commenting on the Company's third quarter 2024 performance, Chairman and Chief
Executive Officer Andrew G. Inglis said: "We continue to make good progress
across the portfolio towards our production goal of ~90,000 boepd around the
end of the year. As production rises and projects are completed, we plan to
significantly reduce capital expenditure.
Looking ahead to 2025, we are prioritizing cash generation from the business
through disciplined capital allocation, and expect to use cash generated to
de-lever the balance sheet. As a result, we are reducing our previously
communicated 2025 capex guidance from ~$550 million to ~$400 million. With the
actions taken this year to strengthen the balance sheet, we are well
positioned entering 2025 to enhance shareholder value and further improve the
financial resilience of the company."
FINANCIAL UPDATE
In September, Kosmos successfully issued $500 million of new senior notes due
2031 at 8.75%. Alongside the new issue, Kosmos completed a series of tender
offers to repurchase approximately $500 million of its outstanding senior
notes across multiple maturities. Following these transactions, the company
has paid down the majority of its senior notes due 2026 and also reduced the
quantum of the senior notes due 2027 and 2028, thereby reducing all near-term
debt maturities.
In September 2024, we added two new lenders to the Reserve Based Lending
Facility (RBL) syndicate, increasing total commitments by approximately $145.0
million to the full facility size and borrowing base capacity of $1.35
billion. Post quarter-end, we cancelled the undrawn Revolving Credit Facility
(RCF) ahead of schedule.
Kosmos exited the third quarter of 2024 with approximately $2.8 billion of
total long-term debt and approximately $2.7 billion of net debt((1)) and
available liquidity of approximately $715 million.
Net capital expenditure for the third quarter of 2024 was $210 million,
slightly above guidance primarily due to higher costs associated with the
infill drilling program in Equatorial Guinea. With the completion of the Ghana
infill drilling program earlier this year, delivery of multiple Gulf of Mexico
projects during the third quarter, and startup of GTA expected this quarter,
capital expenditures in the fourth quarter are expected to step down to around
$100 million, a steep reduction from previous quarters.
For 2025, the Company is focused on maximizing cash generation through
disciplined capital allocation. As a result, the Company expects total capital
expenditure for 2025, to be approximately ~$400 million, lower than the
previous guidance of ~$550 million, largely from a reduction in growth
capital.
The Company generated net cash provided by operating activities of
approximately $6 million and free cash flow((1)) of approximately $(213)
million in the third quarter. Free cash flow in the quarter was negatively
impacted by the timing of working capital, largely related to completion
payments associated with projects delivered across the portfolio.
OPERATIONAL UPDATE
Production
Total net production((2)) in the third quarter of 2024 averaged approximately
65,400 boepd, representing a ~5% increase compared to the prior quarter. This
growth reflects higher production in the US Gulf of Mexico due to the startup
of the first two Winterfell wells and production enhancement projects at the
operated Kodiak and Odd Job fields. The Company exited the quarter in a net
underlift position of approximately 0.1 million barrels.
Ghana
Production in Ghana averaged approximately 40,500 boepd net in the third
quarter of 2024. Kosmos lifted three cargos from Ghana during the quarter, in
line with guidance.
At Jubilee (38.6% working interest), oil production in the third quarter
averaged approximately 87,600 bopd gross with year-to-date production
averaging approximately 89,300 bopd gross. Voidage replacement during the
third quarter was approximately 90%, below target as a result of lower than
planned power generation uptime. Water injection has been restored to record
levels of around 300,000 barrels of water per day and should enhance voidage
replacement. Jubilee FPSO reliability remains high with uptime approximately
99% for the third quarter.
The three year drilling campaign in Ghana concluded in June following the
completion of a final water injector well. The partnership has contracted a
new 4D seismic survey over the Jubilee field in early 2025, which is expected
to take approximately two months. This seismic data will be processed with
state of the art technology to support the high grading of drilling locations
for the next phases of drilling. Kosmos is currently working with the operator
in Ghana to optimize the 2025 drilling schedule with a rig targeted to arrive
in country around the middle of the year.
In the third quarter, Jubilee gas production net to Kosmos was approximately
4,700 boepd. As previously communicated, the onshore gas processing plant that
receives Jubilee gas was offline for approximately two weeks for planned
maintenance during the quarter. Gas production is now back at approximately
6,000 boepd net to Kosmos.
At TEN (20.4% working interest), oil production averaged approximately 18,500
bopd gross for the third quarter, slightly above expectations. Uptime on the
TEN FPSO was approximately 99% for the third quarter.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately 16,900 boepd net
(~84% oil) during the third quarter, ahead of expectations.
The first two wells at Winterfell (25% working interest) were brought online
in early July with the third development well online in early October,
successfully confirming the extension of the main Winterfell reservoir to the
south and ~20,000 boepd gross production capacity from the first three wells.
Shortly after startup of the third well, production at the field was curtailed
due to sand production from the third well seen at the production facility. We
are currently working with the operator to restart production from the first
two wells (~13,000 boepd gross) and to evaluate options to remediate the third
well.
Kosmos-operated production enhancement projects for 2024 concluded in July,
with the successful completion of the Kodiak-3 well workover and startup of
the Odd Job subsea pump project, both outperforming forecasts.
Current production in the U.S. Gulf of Mexico has increased to approximately
20,000 boepd, in line with expectations, and ~50% higher than the first half
of the year.
On Tiberius, Kosmos (50% working interest and operator) and Occidental (50%
working interest) have agreed to defer project sanction to the second half of
2025 to prioritize cash generation in 2025. Kosmos continues to progress the
farm down of the field with good levels of interest. Estimated gross
resource at Tiberius is approximately 100 million boe.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 22,900 bopd gross and
8,000 bopd net in the third quarter. Kosmos lifted one cargo from Equatorial
Guinea during the quarter, in line with guidance.
The Noble Venturer rig arrived on location in July and resumed the two well
infill campaign to be followed by drilling the Akeng Deep ILX prospect. Early
in the fourth quarter, the rig successfully completed the first infill well at
Ceiba and achieved first oil in mid-October, approximately two months later
than originally planned. Drilling activity has commenced on the second infill
well which is expected online later this month. Following completion of the
infill campaign, the rig is contracted to drill the Kosmos-operated 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 is required for first
gas.
• Hub Terminal: The Hub Terminal has been handed over to operations.
• Subsea: The subsea workscope for first gas is mechanically
complete.
• FPSO: Ready for startup shortly with first gas expected
thereafter.
• FLNG: Cool down and commissioning of the FLNG vessel has commenced
with first LNG expected around the end of the fourth quarter of 2024.
(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 2024
financial and operating results today, November 4, 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 Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Revenues and other income:
Oil and gas revenue $ 407,794 $ 526,348 $ 1,277,797 $ 1,193,843
Other income, net 37 198 109 (115)
Total revenues and other income 407,831 526,546 1,277,906 1,193,728
Costs and expenses:
Oil and gas production 133,471 138,782 377,822 286,297
Exploration expenses 14,697 10,290 39,992 33,305
General and administrative 23,298 25,120 76,724 77,731
Depletion, depreciation and amortization 120,728 132,347 311,750 331,634
Interest and other financing costs, net 22,112 25,440 75,839 74,379
Derivatives, net (15,254) 45,971 5,716 42,162
Other expenses, net 2,227 11,055 6,418 17,864
Total costs and expenses 301,279 389,005 894,261 863,372
Income before income taxes 106,552 137,541 383,645 330,356
Income tax expense 61,578 52,356 187,215 138,517
Net income $ 44,974 $ 85,185 $ 196,430 $ 191,839
Net income per share:
Basic $ 0.10 $ 0.19 $ 0.42 $ 0.42
Diluted $ 0.09 $ 0.18 $ 0.41 $ 0.40
Weighted average number of shares used to compute net income per share:
Basic 471,816 460,108 470,491 459,477
Diluted 479,190 481,099 478,701 479,738
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September 30, December 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $ 51,581 $ 95,345
Receivables, net 161,967 120,733
Other current assets 207,540 206,635
Total current assets 421,088 422,713
Property and equipment, net 4,694,435 4,160,229
Other non-current assets 355,423 355,192
Total assets $ 5,470,946 $ 4,938,134
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 284,954 $ 248,912
Accrued liabilities 277,752 302,815
Other current liabilities 527 3,103
Total current liabilities 563,233 554,830
Long-term liabilities:
Long-term debt, net 2,691,912 2,390,914
Deferred tax liabilities 376,885 363,918
Other non-current liabilities 642,016 596,135
Total long-term liabilities 3,710,813 3,350,967
Total stockholders' equity 1,196,900 1,032,337
Total liabilities and stockholders' equity $ 5,470,946 $ 4,938,134
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Operating activities:
Net income $ 44,974 $ 85,185 $ 196,430 $ 191,839
Adjustments to reconcile net income to net cash provided by operating
activities:
Depletion, depreciation and amortization (including deferred financing costs) 122,887 134,809 318,564 339,177
Deferred income taxes 6,081 (28,452) 11,280 (37,481)
Unsuccessful well costs and leasehold impairments 1,187 931 3,872 2,244
Change in fair value of derivatives (9,298) 52,687 11,808 52,467
Cash settlements on derivatives, net(1) (7,388) (10,846) (14,754) (21,478)
Equity-based compensation 10,034 10,580 27,849 31,778
Debt modifications and extinguishments 2,263 1,503 24,794 1,503
Other (138) 4,021 (12,126) 2,547
Changes in assets and liabilities:
Net changes in working capital (164,320) (987) (65,215) (91,202)
Net cash provided by operating activities 6,282 249,431 502,502 471,394
Investing activities
Oil and gas assets (219,245) (195,047) (772,238) (611,914)
Notes receivable from partners - (13,337) (2,575) (46,632)
Net cash used in investing activities (219,245) (208,384) (774,813) (658,546)
Financing activities:
Borrowings under long-term debt 100,000 150,000 275,000 300,000
Payments on long-term debt - (137,500) (350,000) (145,000)
Net proceeds from issuance of senior notes 494,855 - 885,285 -
Purchase of capped call transactions - - (49,800) -
Repurchase of senior notes (499,515) - (499,515) -
Net proceeds from issuance of common stock - - - -
Dividends - - - (166)
Other financing costs (4,609) (534) (35,534) (12,345)
Net cash provided by financing activities 90,731 11,966 225,436 142,489
Net increase (decrease) in cash, cash equivalents and restricted cash (122,232) 53,013 (46,875) (44,663)
Cash, cash equivalents and restricted cash at beginning of period 174,118 89,145 98,761 186,821
Cash, cash equivalents and restricted cash at end of period $ 51,886 $ 142,158 $ 51,886 $ 142,158
(1) Cash settlements on commodity hedges were $(2.5) million and $(4.1)
million for the three months ended September 30, 2024 and 2023, respectively,
and $(10.0) million and $(12.3) million for the nine months ended
September 30, 2024 and 2023, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Nine months ended Twelve Months Ended
September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 September 30, 2024
Net income $ 44,974 $ 85,185 $ 196,430 $ 191,839 $ 218,111
Exploration expenses 14,697 10,290 39,992 33,305 48,965
Depletion, depreciation and amortization 120,728 132,347 311,750 331,634 425,043
Impairment of long-lived assets - - - - 222,278
Equity-based compensation 10,034 10,580 27,849 31,778 38,764
Derivatives, net (15,254) 45,971 5,716 42,162 (25,318)
Cash settlements on commodity derivatives (2,532) (4,130) (9,956) (12,343) (14,061)
Other expenses, net(1) 2,227 11,055 6,418 17,864 12,210
Interest and other financing costs, net 22,112 25,440 75,839 74,379 97,364
Income tax expense 61,578 52,356 187,215 138,517 206,913
EBITDAX $ 258,564 $ 369,094 $ 841,253 $ 849,135 $ 1,230,269
(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 September 30, 2024 and
December 31, 2023:
September 30, December 31,
2024 2023
Total long-term debt $ 2,750,274 $ 2,425,000
Cash and cash equivalents 51,581 95,345
Total restricted cash 305 3,416
Net debt $ 2,698,388 $ 2,326,239
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Net income $ 44,974 $ 85,185 $ 196,430 $ 191,839
Derivatives, net (15,254) 45,971 5,716 42,162
Cash settlements on commodity derivatives (2,532) (4,130) (9,956) (12,343)
Other, net(2) 1,965 11,117 5,892 17,854
Debt modifications and extinguishments 2,263 1,503 24,794 1,503
Total selected items before tax (13,558) 54,461 26,446 49,176
Income tax (expense) benefit on adjustments(1) 6,186 (13,630) 2,269 (9,845)
Impact of valuation adjustments and other tax items - - (7,963) -
Adjusted net income $ 37,602 126,016 217,182 231,170
Net income per diluted share $ 0.09 $ 0.18 $ 0.41 $ 0.40
Derivatives, net (0.03) 0.10 0.01 0.09
Cash settlements on commodity derivatives - (0.01) (0.01) (0.03)
Other, net(2) - 0.02 0.01 0.04
Debt modifications and extinguishments - - 0.05 -
Total selected items before tax (0.03) 0.11 0.06 0.10
Income tax (expense) benefit on adjustments(1) 0.02 (0.03) - (0.02)
Impact of valuation adjustments and other tax items - - (0.02) -
Adjusted net income per diluted share $ 0.08 $ 0.26 $ 0.45 $ 0.48
Weighted average number of diluted shares 479,190 481,099 478,701 479,738
(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,
2024 2023 2024 2023
Reconciliation of free cash flow:
Net cash provided by operating activities $ 6,282 $ 249,431 $ 502,502 $ 471,394
Net cash used for oil and gas assets - base business (108,441) (122,542) (383,826) (337,488)
Base business free cash flow (102,159) 126,889 118,676 133,906
Net cash used for oil and gas assets - Mauritania/Senegal (110,804) (72,505) (388,412) (274,426)
Free cash flow $ (212,963) $ 54,384 $ (269,736) $ (140,520)
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Net Volume Sold
Oil (MMBbl) 5.135 5.956 15.234 14.448
Gas (MMcf) 3.554 4.046 11.991 9.582
NGL (MMBbl) 0.084 0.097 0.232 0.299
Total (MMBoe) 5.811 6.727 17.465 16.344
Total (Mboepd) 63.167 73.123 63.739 59.868
Revenue
Oil sales $ 393,555 $ 511,735 $ 1,230,772 $ 1,166,983
Gas sales 12,586 13,080 42,218 20,514
NGL sales 1,653 1,533 4,807 6,346
Total oil and gas revenue 407,794 526,348 1,277,797 1,193,843
Cash settlements on commodity derivatives (2,532) (4,130) (9,956) (12,343)
Realized revenue $ 405,262 $ 522,218 $ 1,267,841 $ 1,181,500
Oil and Gas Production Costs $ 133,471 $ 138,782 $ 377,822 $ 286,297
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 76.64 $ 85.92 $ 80.79 $ 80.77
Average gas sales price per Mcf 3.54 3.23 3.52 2.14
Average NGL sales price per Bbl 19.68 15.80 20.72 21.22
Average total sales price per Boe 70.18 78.24 73.16 73.04
Cash settlements on commodity derivatives per Boe (0.44) (0.61) (0.57) (0.76)
Realized revenue per Boe 69.74 77.63 72.59 72.29
Oil and gas production costs per Boe $ 22.97 $ 20.63 $ 21.64 $ 17.51
(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 0.1 million barrels as of
September 30, 2024.
Kosmos Energy Ltd.
Hedging Summary
As of September 30, 2024((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Swap Floor(2) Ceiling
2024:
Three-way collars Dated Brent 2,000 $ - $ 70.00 $ 93.12
Two-way collars Dated Brent 500 - 70.00 100.00
2025:
Two-way collars 1H25 ((3)) Dated Brent 2,000 - 70.00 85.00
Two-way collars FY25 Dated Brent 2,000 - 70.00 85.00
Swaps 1H25 Dated Brent 2,000 75.48 - -
(1) Please see the Company's filed 10-Q for additional disclosure on
hedging material. Includes hedging position as of September 30, 2024 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.
2024 Guidance
4Q 2024 FY 2024 Guidance
Production(1,2) 70,000 - 74,000 boe per day ~67,000 boe per day
Opex(3) $17.50 - $19.50 per boe $16.50 - $18.50 per boe
DD&A $20.50 - $22.50 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) $30 - $40 million ~$110 million
Tax $8.00 - $10.00 per boe $10.00 - $12.00 per boe
Capital Expenditure ~$100 million ~$800 million
Note: Ghana / Equatorial Guinea revenue calculated by number of cargos.
(1) 4Q 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: 4Q 2024 forecast 19,000 - 20,000 boe
per day. FY 2024: 15,500-16,500 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 net ($60 - $80 million in
4Q 2024)
(4) Excludes leasehold impairments and dry hole costs
(5) Includes impact of capitalized interest; ~$20 million related to GTA
in 4Q 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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