REG - Kosmos Energy Ltd - Fourth Quarter Results
24/02/2025 07:00
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RNS Number : 1751Y Kosmos Energy Limited 24 February 2025
KOSMOS ENERGY ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS
DALLAS - February 24, 2025-- Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for
the fourth quarter of 2024. For the quarter, the Company generated a net loss
of $7 million, or $0.01 per diluted share. When adjusted for certain items
that impact the comparability of results, the Company generated an adjusted
net loss((1)) of $16 million, or $0.03 per diluted share for the fourth
quarter of 2024.
FOURTH QUARTER 2024 HIGHLIGHTS
• Zero lost-time injuries or total recordable injuries in 2024
• Net Production((2)): ~66,800 barrels of oil equivalent per day
(boepd), with sales of ~65,700 boepd
• Revenues: $398 million, or $65.80 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $153 million ($19.39 per boe excluding $35.6
million of production expenses associated with the Greater Tortue Ahmeyim
(GTA) liquefied natural gas (LNG) project)
• Capital expenditures: $117 million
• Achieved first gas production at the GTA LNG project in December;
first LNG production achieved in February 2025
• Secured the Noble Venturer drilling rig for the 2025/2026 Jubilee
drilling campaign; commenced a 4D seismic survey over Jubilee and TEN in
January 2025
• ~137% 2P reserve replacement ratio with year-end 2024 2P reserves
of ~528 million barrels of oil equivalent (mmboe), representing a 22-year
reserves-to-production ratio
• Maintained AAA rating with MSCI
Commenting on the Company's 2024 performance, Chairman and Chief Executive
Officer Andrew G. Inglis said: "In 2022, we set out a goal to materially grow
production from several key projects across our portfolio. 2024 was a year of
delivering those projects, with continued 2P reserve growth and production now
increasing as the projects ramp up. With the end of this highly
capital-intensive period for the company we will now prioritize the generation
of free cash flow from our increased production base together with disciplined
capital investment. Our forecast 2025 capex budget of $400 million is a
reduction of over 50% from recent years.
Operationally, we were pleased to see first gas production at GTA at the end
of 2024, followed earlier this month by first LNG production, two significant
milestones for the project, its partners and the people of Mauritania and
Senegal. The first cargo is currently being prepared for loading. GTA is a
world-scale asset in the Kosmos portfolio and with the initial capital
intensive phase complete, we can focus on delivering the full potential of the
asset with significant room to grow production and cash flow.
In the Gulf of America, we expect production to further increase from the
Winterfell 3&4 wells in the coming months and have been pleased by the
production optimization projects undertaken during 2024. In Ghana, with the
Jubilee 4D seismic and the upcoming infill drilling program, we expect to see
production increasing. Jubilee is a world-class oil field and with the
appropriate field management, sustained water injection and high facility
reliability, the asset is capable of delivering strong production volumes for
many years to come."
FINANCIAL UPDATE
The Company generated net cash provided by operating activities of
approximately $176 million and free cash flow((1)) of approximately $14
million in the fourth quarter.
Kosmos exited the fourth 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 $535 million. The Company has minimal
near-term debt maturities with only $250 million in 2026, which it intends to
fund from free cash flow.
Net capital expenditure for the fourth quarter of 2024 was $117 million,
slightly higher than guidance primarily due to higher startup costs associated
with GTA. In 2025 capital expenditure is expected to be $400 million or below,
more than 50% lower than the previous year as we prioritize cash generation
through disciplined capital allocation. Additionally, as a part of this
ongoing rigorous cost management, the Company is targeting a reduction in
annual overhead of around $25 million by year-end 2025.
RESERVES UPDATE
At year-end 2024, Kosmos 2P reserves were approximately 530 million boe,
representing a reserve replacement ratio of 137% and a 2P
reserves-to-production ratio of approximately 22 years, demonstrating the
longevity of the portfolio. The positive 2P reserve replacement was largely
driven by upward revisions in Mauritania and Senegal. Kosmos 2P reserves do
not include any recognition for the Tiberius and Yakaar-Teranga discoveries.
Kosmos 1P reserves were approximately 250 million barrels of oil equivalent
(boe), representing a 1P reserves to production ratio of around 11 years and a
reserve replacement ratio of -11% driven primarily by annual production.
Kosmos' year-end reserves on all assets have been independently evaluated by
Ryder Scott.
OPERATIONAL UPDATE
Production
Total net production((2)) in the fourth quarter of 2024 averaged approximately
66,800 boepd. Production was below guidance primarily due to lower production
at Jubilee (flagged by the operator in January) and the timing impact of new
project startups. The Company exited the quarter in a net underlift position
of approximately 0.2 million barrels. While these projects are close to
completing their ramp-up within the next month, first quarter 2025 production
is also impacted by planned shut-downs at Jubilee in Ghana and at the Devils
Tower facility, which hosts Kodiak field, in the Gulf of America.
Ghana
Production in Ghana averaged approximately 38,600 boepd net in the fourth
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 fourth quarter
averaged approximately 80,200 bopd gross with full year production averaging
approximately 87,000 bopd gross. Fourth quarter production versus guidance was
impacted by insufficient water injection and reliability, primarily related to
power generation, and we are working with the operator to address these field
management issues. To moderate decline ahead of the upcoming drilling
campaign, a combination of high FPSO uptime, improved facility reliability and
voidage replacement in excess of 100% are required, consistent with what has
been delivered through the first two months of 2025.
The Noble Venturer rig has been contracted to drill two wells in 2025 and is
expected to arrive in May. The two wells, one Jubilee producer and one Jubilee
injector, are expected online in the third quarter of 2025. The rig will then
undergo scheduled maintenance before returning for a planned four-well
drilling campaign on Jubilee in 2026.
In the fourth quarter of 2024, Jubilee gas production net to Kosmos was
approximately 5,700 boepd in line with expectations.
At TEN (20.4% working interest), oil production averaged approximately 17,800
bopd gross for the fourth quarter.
Gulf of America
Production in the Gulf of America averaged approximately 18,200 boepd net
(~83% oil) during the fourth quarter with Winterfell shut in for most of the
quarter due to previously communicated Winterfell-3 issues. The Winterfell
1&2 wells were brought back online in late-December. The rig contracted to
drill the Winterfell-4 well starting later this quarter is currently being
used for remediation of the Winterfell-3 well. Winterfell-3 is expected online
later this quarter with Winterfell-4 expected online in the third quarter.
On Tiberius, Kosmos continues to progress the development and expects to
complete a farm down of the field around the time of project sanction.
Kosmos has an attractive portfolio of infrastructure-led exploration (ILX)
opportunities that we will high-grade through 2025.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 28,500 bopd gross and
10,000 bopd net in the fourth quarter. Kosmos lifted one cargo from Equatorial
Guinea during the quarter, in line with guidance. The Noble Venturer rig
successfully completed the infill drilling campaign with both wells now
online.
The drilling campaign also included drilling of the S-6 "Akeng Deep" ILX
prospect in Block S offshore Equatorial Guinea in the fourth quarter of 2024.
The well was drilled to a total vertical depth of approximately 13,225 feet
(~4030 meters) and encountered sub-commercial quantities of hydrocarbons.
Kosmos recorded $28 million of exploration expense related to the well in the
fourth quarter and the well has now been plugged and abandoned. Kosmos also
wrote off $37.2 million of exploration expense off related to the Asam
discovery in Block S offshore Equatorial Guinea which was successfully drilled
in 2019, but is now not expected to be developed in the near-term.
Mauritania and Senegal
The GTA LNG project achieved first gas production during the fourth quarter, a
significant milestone for the project partners and the governments and people
of Mauritania and Senegal, establishing a new LNG production hub in the
Atlantic basin.
Post quarter-end, the project achieved first LNG production, another key
milestone, which is when Kosmos will now start to recognize entitlement
production. The first LNG cargo is expected later this quarter, with an LNG
tanker currently standing by the Hub Terminal ready for loading. Loading the
first cargo is when the partnership will start to recognize revenue from the
project.
In addition, the partnership is working collaboratively to prioritize both the
low-cost brownfield expansion of the development to fully utilize the existing
infrastructure, and future cost optimization for the first phase of GTA with
the near-term focus on the re-financing of the FPSO leaseback arrangement.
(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 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 fourth quarter 2024
financial and operating results today, February 24, 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 (formerly the U.S. Gulf of
Mexico). 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 Years Ended
December 31, December 31,
2024 2023 2024 2023
Revenues and other income:
Oil and gas revenue $ 397,561 $ 507,765 $ 1,675,358 $ 1,701,608
Gain on sale of assets - - - -
Other income, net 95 42 204 (73)
Total revenues and other income 397,656 507,807 1,675,562 1,701,535
Costs and expenses:
Oil and gas production 152,692 103,800 530,514 390,097
Exploration expenses 79,915 8,973 119,907 42,278
General and administrative 23,431 21,801 100,155 99,532
Depletion, depreciation and amortization 145,024 113,293 456,774 444,927
Impairment of long-lived assets - 222,278 - 222,278
Interest and other financing costs, net 12,759 21,525 88,598 95,904
Derivatives, net 6,383 (31,034) 12,099 11,128
Other expenses, net 11,285 5,792 17,703 23,656
Total costs and expenses 431,489 466,428 1,325,750 1,329,800
Income (loss) before income taxes (33,833) 41,379 349,812 371,735
Income tax expense (benefit) (27,254) 19,698 159,961 158,215
Net income (loss) $ (6,579) $ 21,681 $ 189,851 $ 213,520
Net income (loss) per share:
Basic $ (0.01) $ 0.05 $ 0.40 $ 0.46
Diluted $ (0.01) $ 0.04 $ 0.40 $ 0.44
Weighted average number of shares used to compute net income (loss) per share:
Basic 471,894 460,129 470,844 459,641
Diluted 471,894 483,252 476,691 481,070
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December 31, December 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $ 84,972 $ 95,345
Receivables, net 164,959 120,733
Other current assets 196,201 206,635
Total current assets 446,132 422,713
Property and equipment, net 4,444,221 4,160,229
Other non-current assets 418,635 355,192
Total assets $ 5,308,988 $ 4,938,134
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 349,994 $ 248,912
Accrued liabilities 244,954 302,815
Other current liabilities - 3,103
Total current liabilities 594,948 554,830
Long-term liabilities:
Long-term debt, net 2,744,712 2,390,914
Deferred tax liabilities 313,433 363,918
Other non-current liabilities 455,471 596,135
Total long-term liabilities 3,513,616 3,350,967
Total stockholders' equity 1,200,424 1,032,337
Total liabilities and stockholders' equity $ 5,308,988 $ 4,938,134
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Years Ended
December 31, December 31,
2024 2023 2024 2023
Operating activities:
Net income (loss) $ (6,579) $ 21,681 $ 189,851 $ 213,520
Adjustments to reconcile net income to net cash provided by operating
activities:
Depletion, depreciation and amortization (including deferred financing costs) 146,919 115,671 465,483 454,848
Deferred income taxes (63,454) (70,079) (52,174) (107,560)
Unsuccessful well costs and leasehold impairments 70,617 (36) 74,489 2,208
Impairment of long-lived assets - 222,278 - 222,278
Change in fair value of derivatives 2,939 (24,118) 14,747 28,349
Cash settlements on derivatives, net(1) (4,898) (10,948) (19,652) (32,426)
Equity-based compensation 10,102 10,915 37,951 42,693
Debt modifications and extinguishments 379 - 25,173 1,503
Other (1,609) 3,162 (13,735) 5,709
Changes in assets and liabilities:
Net changes in working capital 21,331 25,250 (43,884) (65,952)
Net cash provided by operating activities 175,747 293,776 678,249 765,170
Investing activities
Oil and gas assets (161,421) (320,689) (933,659) (932,603)
Notes receivable and other investing activities (29,822) (15,615) (32,397) (62,247)
Net cash used in investing activities (191,243) (336,304) (966,056) (994,850)
Financing activities:
Borrowings under long-term debt 50,000 - 325,000 300,000
Payments on long-term debt - - (350,000) (145,000)
Net proceeds from issuance of senior notes - - 885,285 -
Purchase of capped call transactions - - (49,800) -
Repurchase of senior notes - - (499,515) -
Dividends - - - (166)
Other financing costs (1,113) (869) (36,647) (13,214)
Net cash provided by (used in) financing activities 48,887 (869) 274,323 141,620
Net increase (decrease) in cash, cash equivalents and restricted cash 33,391 (43,397) (13,484) (88,060)
Cash, cash equivalents and restricted cash at beginning of period 51,886 142,158 98,761 186,821
Cash, cash equivalents and restricted cash at end of period $ 85,277 $ 98,761 $ 85,277 $ 98,761
(1) Cash settlements on commodity hedges were $(2.5) million and $(4.1)
million for the three months ended December 31, 2024 and 2023, respectively,
and $(12.5) million and $(16.4) million for the years ended December 31, 2024
and 2023, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Years ended
December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
Net income (loss) $ (6,579) $ 21,681 $ 189,851 $ 213,520
Exploration expenses 79,915 8,973 119,907 42,278
Depletion, depreciation and amortization 145,024 113,293 456,774 444,927
Impairment of long-lived assets - 222,278 - 222,278
Equity-based compensation 10,102 10,915 37,951 42,693
Derivatives, net 6,383 (31,034) 12,099 11,128
Cash settlements on commodity derivatives (2,532) (4,105) (12,488) (16,448)
Other expenses, net(1) 11,285 5,792 17,703 23,656
Interest and other financing costs, net 12,759 21,525 88,598 95,904
Income tax expense (benefit) (27,254) 19,698 159,961 158,215
EBITDAX $ 229,103 $ 389,016 $ 1,070,356 $ 1,238,151
(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 December 31, 2024 and
December 31, 2023:
December 31, December 31,
2024 2023
Total long-term debt $ 2,800,274 $ 2,425,000
Cash and cash equivalents 84,972 95,345
Total restricted cash 305 3,416
Net debt $ 2,714,997 $ 2,326,239
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Years Ended
December 31, December 31,
2024 2023 2024 2023
Net income (loss) $ (6,579) $ 21,681 $ 189,851 $ 213,520
Derivatives, net 6,383 (31,034) 12,099 11,128
Cash settlements on commodity derivatives (2,532) (4,105) (12,488) (16,448)
Impairment of long-lived assets - 222,278 - 222,278
Other, net(2) 8,178 5,744 14,070 23,598
Impairment of suspended well costs 37,175 - 37,175 -
Debt modifications and extinguishments 379 - 25,173 1,503
Total selected items before tax 49,583 192,883 76,029 242,059
Income tax (expense) benefit on adjustments(1) (2,291) (65,763) (22) (75,608)
Impact of valuation adjustments and other tax items (56,295) - (64,258) -
Adjusted net income (loss) $ (15,582) 148,801 201,600 379,971
Net income (loss) per diluted share $ (0.01) $ 0.04 $ 0.40 $ 0.44
Derivatives, net 0.01 (0.06) 0.03 0.02
Cash settlements on commodity derivatives (0.01) (0.01) (0.03) (0.03)
Impairment of long-lived assets - 0.46 - 0.46
Other, net(2) 0.03 0.01 0.03 0.05
Impairment of suspended well costs 0.08 - 0.08 -
Debt modifications and extinguishments - - 0.05 -
Total selected items before tax 0.11 0.40 0.16 0.50
Income tax (expense) benefit on adjustments(1) - (0.13) - (0.15)
Impact of valuation adjustments and other tax items (0.13) - (0.14) -
Adjusted net income (loss) per diluted share $ (0.03) $ 0.31 $ 0.42 $ 0.79
Weighted average number of diluted shares 471,894 483,252 476,691 481,070
(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 Years Ended
December 31, December 31,
2024 2023 2024 2023
Reconciliation of free cash flow:
Net cash provided by operating activities $ 175,747 $ 293,776 $ 678,249 $ 765,170
Net cash used for oil and gas assets - base business (85,921) (204,177) (469,747) (541,665)
Base business free cash flow 89,826 89,599 208,502 223,505
Net cash used for oil and gas assets - Mauritania/Senegal (75,500) (116,512) (463,912) (390,938)
Free cash flow $ 14,326 $ (26,913) $ (255,410) $ (167,433)
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Years Ended
December 31, December 31,
2024 2023 2024 2023
Net Volume Sold
Oil (MMBbl) 5.238 5.937 20.472 20.385
Gas (MMcf) 4.189 4.155 16.180 13.737
NGL (MMBbl) 0.106 0.083 0.338 0.382
Total (MMBoe) 6.042 6.713 23.507 23.057
Total (Mboepd) 65.676 72.962 64.226 63.168
Revenue
Oil sales $ 380,397 $ 491,438 $ 1,611,169 $ 1,658,421
Gas sales 15,025 14,793 57,243 35,307
NGL sales 2,139 1,534 6,946 7,880
Total oil and gas revenue 397,561 507,765 1,675,358 1,701,608
Cash settlements on commodity derivatives (2,532) (4,105) (12,488) (16,448)
Realized revenue $ 395,029 $ 503,660 $ 1,662,870 $ 1,685,160
Oil and Gas Production Costs $ 152,692 $ 103,800 $ 530,514 $ 390,097
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 72.62 $ 82.78 $ 78.70 $ 81.35
Average gas sales price per Mcf 3.59 3.56 3.54 2.57
Average NGL sales price per Bbl 20.18 18.48 20.55 20.61
Average total sales price per Boe 65.80 75.64 71.27 73.80
Cash settlements on commodity derivatives per Boe (0.42) (0.61) (0.53) (0.71)
Realized revenue per Boe 65.38 75.03 70.74 73.09
Oil and gas production costs per Boe $ 25.27 $ 15.46 $ 22.57 $ 16.92
(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 0.2 million barrels as of
December 31, 2024.
Kosmos Energy Ltd.
Hedging Summary
As of December 31, 2024((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Swap Floor(2) Ceiling
2025:
Two-way collars 1H25 ((3)) Dated Brent 2,000 $ - $ 70.00 $ 85.00
Swaps 1H25 Dated Brent 2,000 75.48 - -
Two-way collars FY25 Dated Brent 2,000 - 70.00 85.00
Three-way collars FY25 Dated Brent 2,000 - 70.00 85.00
(1) Please see the Company's filed 10-K for additional disclosure on
hedging material. Includes hedging position as of December 31, 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.
2025 Guidance
1Q 2025 FY 2025 Guidance
Production(1,2,3) 62,000 - 66,000 boe per day 70,000 - 80,000 boe per day
Opex(4) $23.00 - $25.00 per boe $18.00 - $20.00 per boe
DD&A $25.00 - $27.00 per boe $22.00 - $24.00 per boe
G&A(~65% cash) ~$25 million $80 - $100 million
Exploration Expense(5) ~$10 million $25 - $45 million
Net Interest Expense ~$45 million $180 - $200 million
Tax $3.00 - $5.00 per boe $6.00 - $8.00 per boe
Capital Expenditure $100 - $120 million <$400 million
Note: Ghana / Equatorial Guinea / Mauritania & Senegal revenue calculated
by number of cargos.
(1) 1Q 2025 net cargo forecast - Ghana: 2 cargos / Equatorial Guinea: 0.5
cargo. FY 2025 Ghana: 11-12 cargos / Equatorial Guinea 3.5 cargos. Average
cargo sizes 950,000 barrels of oil.
(2) 1Q 2025 gross cargo forecast - Mauritania & Senegal: 2 cargos. FY
2025: 20-25 cargos. Average cargo size ~170,000 m(3) with Kosmos NRI of ~24%.
1Q 2025 cargo sizes likely impacted by project commissioning.
(3) Gulf of America Production: 1Q 2025 forecast 16,500 - 18,500 boe per
day. FY 2025: 17,000-20,000 boe per day. Oil/Gas/NGL split for 2025:
~84%/~10%/~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
1Q 2025).These values include cost associated with the FPSO lease which total
approximately $60 million FY 2025 and $15 million 1Q 2025.
(5) Excludes leasehold impairments and dry hole costs
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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