REG - Kosmos Energy Ltd - Second Quarter Results
07/08/2023 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:20230807:nRSG4290Ia&default-theme=true
RNS Number : 4290I Kosmos Energy Limited 07 August 2023
KOSMOS ENERGY ANNOUNCES SECOND QUARTER 2023 RESULTS
DALLAS--(BUSINESS WIRE)-August 7, 2023-- Kosmos Energy Ltd. ("Kosmos" or the
"Company") (NYSE/LSE: KOS) announced today its financial and operating results
for the second quarter of 2023. For the quarter, the Company generated a net
income of $23 million, or $0.05 per diluted share. When adjusted
for certain items that impact the comparability of results, the Company
generated an adjusted net income((1)) of $27 million, or $0.06 per diluted
share for the second quarter of 2023.
SECOND QUARTER 2023 HIGHLIGHTS
• Net Production((2)): ~58,000 barrels of oil equivalent per day
(boepd), with sales of ~45,200 boepd
• Revenues: $273 million, or $66.38 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $64 million, or $15.45 per boe
• Capital expenditures: $170 million
• Post-quarter end, start-up of the Jubilee South East development
with the field now producing ~100,000 barrels of oil per day gross
Commenting on the Company's second quarter 2023 performance, Chairman and
Chief Executive Officer Andrew G. Inglis said: "Kosmos continued to deliver on
its strategy with the commencement of production from the Jubilee South East
development in July. The start up of the first of three key development
projects for Kosmos is an important step to realizing the free cash flow
inflection point we expect as production rises and capital spending starts to
fall. With the additional production from Jubilee year-to-date, we are
currently around half way to achieving our 50% production growth target from
2022 levels.
"Further production growth is expected later in the year as additional Jubilee
wells come online. Our other key projects, Greater Tortue Ahmeyim Phase 1 in
Mauritania and Senegal, and Winterfell in the U.S. Gulf of Mexico continue to
progress with first gas at Tortue expected in the first quarter of 2024 and
first oil at Winterfell expected around the end of the first quarter of 2024.
We are approaching an exciting time for the business as we begin to benefit
from the delivery of our multi-year investment program."
FINANCIAL UPDATE
Net capital expenditure for the second quarter of 2023 was $170 million, below
guidance primarily due to lower accruals related to the delay in the subsea
workscope on Tortue Phase 1.
Realized pricing for the quarter of $65.40 per boe, including derivative cash
settlements, was lower compared to the first quarter due to lower commodity
prices during the period.
Kosmos exited the second 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 $0.7 billion. The Company generated net
cash provided by operating activities of approximately $18 million and free
cash flow((1)) of approximately $(175) million in the second quarter, in line
with expectations, largely as a result of the underlift position at the end of
the second quarter.
OPERATIONAL UPDATE
Production
Total net production((2)) in the second quarter of 2023 averaged approximately
58,000 boepd, in line with company guidance, with current production around
25% higher post the startup of Jubilee South East. The Company exited the
quarter in a net material underlift position of approximately 1 million
barrels, which is expected to reverse in the second half of the year.
Ghana
Production in Ghana averaged approximately 33,700 boepd net in the second
quarter of 2023. Kosmos lifted two cargos from Ghana during the quarter, in
line with guidance.
At Jubilee, production averaged approximately 72,700 bopd gross during the
quarter, in line with the previous quarter.
Post the end of the second quarter, the Jubilee South East (JSE) development
commenced production with two wells coming online, approximately a month
behind schedule. The two new JSE wells took gross Jubilee production to around
100,000 bopd. An additional Jubilee producer well and two water injector wells
are expected online later in the year, which should further enhance production
levels towards the facility limit.
At TEN, production averaged approximately 19,700 bopd gross for the second
quarter, in line with expectations.
A draft amended plan of development for a high-graded activity set at TEN and
a combined gas sales agreement for Jubilee and TEN are currently being
progressed with the Government of Ghana for approval. To allow the Government
of Ghana time to secure the necessary approvals, an interim gas sales
agreement for Jubilee associated gas has been signed through September 2023 at
a price of $2.90/mmbtu.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately 15,900 boepd net
(~81% oil) during the second quarter, in line with guidance.
The Winterfell project continues to make good progress with drilling of the
first phase of the development wells expected to start in the third quarter.
Partners are targeting first oil around the end of the first quarter of 2024.
Tiberius, an infrastructure-led exploration (ILX) well, targeting a four-way
structural trap with a pre-drill gross resource estimate of ~135 million
barrels of oil, commenced drilling early in the third quarter with initial
results expected late in the quarter.
Production from the Kodiak ST-3 well has improved over the quarter and, as a
result, the timing for the well workover is being optimized to include a third
producing zone and is now expected to complete mid-2024.
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.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 24,000 bopd gross and
8,400 bopd net in the second quarter of 2023. Kosmos lifted 0.5 cargos from
Equatorial Guinea during the quarter, in line with guidance. In July, the
partnership lifted the 500th cargo from the FPSO, a major milestone for the
fields.
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.
The Akeng Deep ILX opportunity, a well 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 infill drilling
campaign.
Mauritania & Senegal
As communicated with the Company's first quarter 2023 results, critical path
to first gas on Phase 1 of the Greater Tortue project is through the
completion of the subsea work scope. As a result of a delay in these
activities, first gas for the project is now targeted in the first quarter of
2024, with the delivery of the other work scopes being optimized for the
updated project schedule. The following milestones were achieved during the
period:
• FLNG: Construction and mechanical completion activities are
finishing and pre-commissioning work is underway. Sailaway is targeted around
the end of the third quarter of 2023 with the vessel expected to arrive on
location around the end of 2023 when hookup work is expected to commence.
• FPSO: In January 2023, the FPSO vessel departed China making a
planned stopover in Singapore to install the fair leads. Arrival on location
offshore Mauritania/Senegal is expected in the fourth quarter of 2023 to align
with the revised schedule for the subsea work scope.
• Hub Terminal: Construction work is complete, and activity is
focused on progressing handover to operations in the third quarter of 2023.
• Subsea: Due to a delay in the subsea workstream, the operator has
put in place a plan to finish installation of the infield flowlines and subsea
structures in the first quarter of 2024.
• Drilling: Successfully drilled and completed all four wells with
expected production capacity significantly higher than what is required for
first gas.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure.
(2) Production means net entitlement volumes. In Ghana and Equatorial Guinea,
this means those volumes net to Kosmos' working interest or participating
interest and net of royalty or production sharing contract effect. In the U.S.
Gulf of Mexico, this means those volumes net to Kosmos' working interest and
net of royalty.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss second quarter 2023
financial and operating results today, August 7, 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 Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Revenues and other income:
Oil and gas revenue $ 273,255 $ 620,368 $ 667,495 $ 1,279,383
Gain on sale of assets - 471 - 471
Other income, net 60 43 (313) 95
Total revenues and other income 273,315 620,882 667,182 1,279,949
Costs and expenses:
Oil and gas production 63,579 90,189 147,515 214,892
Facilities insurance modifications, net - (384) - 6,752
Exploration expenses 11,015 89,565 23,015 101,441
General and administrative 23,444 24,624 52,611 50,417
Depletion, depreciation and amortization 89,913 121,679 199,287 280,648
Interest and other financing costs, net 24,371 29,382 48,939 62,521
Derivatives, net 3,031 75,204 (3,809) 357,376
Other expenses, net 4,779 (3,528) 6,809 (1,102)
Total costs and expenses 220,132 426,731 474,367 1,072,945
Income before income taxes 53,183 194,151 192,815 207,004
Income tax expense 29,838 76,978 86,161 88,431
Net income $ 23,345 $ 117,173 $ 106,654 $ 118,573
Net income per share:
Basic $ 0.05 $ 0.26 $ 0.23 $ 0.26
Diluted $ 0.05 $ 0.25 $ 0.22 $ 0.25
Weighted average number of shares used to compute net income per share:
Basic 459,984 455,512 459,155 454,811
Diluted 479,016 475,645 478,902 473,471
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
June 30, December 31,
2023 2022
Assets
Current assets:
Cash and cash equivalents $ 85,729 $ 183,405
Receivables, net 98,498 119,735
Other current assets 235,321 165,581
Total current assets 419,548 468,721
Property and equipment, net 4,077,821 3,842,647
Other non-current assets 310,250 268,620
Total assets $ 4,807,619 $ 4,579,988
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 263,753 $ 212,275
Accrued liabilities 243,880 325,206
Current maturities of long-term debt 15,000 30,000
Other current liabilities 1,097 6,773
Total current liabilities 523,730 574,254
Long-term liabilities:
Long-term debt, net 2,358,689 2,195,911
Deferred tax liabilities 459,417 468,445
Other non-current liabilities 561,879 553,530
Total long-term liabilities 3,379,985 3,217,886
Total stockholders' equity 903,904 787,848
Total liabilities and stockholders' equity $ 4,807,619 $ 4,579,988
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Operating activities:
Net income $ 23,345 $ 117,173 $ 106,654 $ 118,573
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depletion, depreciation and amortization (including deferred financing costs) 92,443 124,270 204,368 285,909
Deferred income taxes (997) 2,360 (9,029) (83,432)
Unsuccessful well costs and leasehold impairments 9 71,261 1,313 73,662
Change in fair value of derivatives 2,118 76,568 (220) 367,374
Cash settlements on derivatives, net(1) 725 (130,568) (10,632) (223,618)
Equity-based compensation 11,105 8,737 21,198 17,129
Gain on sale of assets - (471) - (471)
Loss on extinguishment of debt - - - 192
Other 799 (1,454) (1,474) (3,742)
Changes in assets and liabilities:
Net changes in working capital (111,437) 10,682 (90,215) 56,610
Net cash provided by operating activities 18,110 278,558 221,963 608,186
Investing activities
Oil and gas assets (193,182) (211,953) (416,867) (320,787)
Acquisition of oil and gas properties - (21,205) - (21,205)
Proceeds on sale of assets - 471 - 118,693
Notes receivable from partners (17,624) (11,428) (33,295) (11,428)
Net cash used in investing activities (210,806) (244,115) (450,162) (234,727)
Financing activities:
Borrowings under long-term debt 150,000 - 150,000 -
Payments on long-term debt - (207,500) (7,500) (315,000)
Tax withholdings on restricted stock units (1) - (11,811) (2,753)
Dividends (1) (13) (166) (655)
Deferred financing costs - (550) - (6,288)
Net cash provided by (used in) financing activities 149,998 (208,063) 130,523 (324,696)
Net increase (decrease) in cash, cash equivalents and restricted cash (42,698) (173,620) (97,676) 48,763
Cash, cash equivalents and restricted cash at beginning of period 131,843 397,279 186,821 174,896
Cash, cash equivalents and restricted cash at end of period $ 89,145 $ 223,659 $ 89,145 $ 223,659
(1) Cash settlements on commodity hedges were $(4.0) million and $(129.3)
million for the three months ended June 30, 2023 and 2022, respectively, and
$(8.2) million and $(212.9) million for the six months ended June 30, 2023
and 2022.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Six months ended Twelve Months Ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 June 30, 2023
Net income $ 23,345 $ 117,173 $ 106,654 $ 118,573 $ 214,632
Exploration expenses 11,015 89,565 23,015 101,441 55,804
Facilities insurance modifications, net - (384) - 6,752 (509)
Depletion, depreciation and amortization 89,913 121,679 199,287 280,648 416,895
Impairment of long-lived assets - - - - 449,969
Equity-based compensation 11,105 8,737 21,198 17,129 38,615
Derivatives, net 3,031 75,204 (3,809) 357,376 (100,293)
Cash settlements on commodity derivatives (4,030) (129,333) (8,213) (212,896) (123,189)
Other expenses, net(2) 4,779 (3,528) 6,809 (1,102) (1,144)
Gain on sale of assets - (471) - (471) (50,000)
Interest and other financing costs, net 24,371 29,382 48,939 62,521 104,678
Income tax expense 29,838 76,978 86,161 88,431 108,246
EBITDAX $ 193,367 $ 385,002 $ 480,041 $ 818,402 $ 1,113,704
Sold Ghana & acquired Kodiak interests EBITDAX Adj(1) - 2,969 - (15,723) -
Pro Forma EBITDAX $ 193,367 $ 387,971 $ 480,041 $ 802,679 $ 1,113,704
(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 June 30, 2023 and
December 31, 2022:
June 30, December 31,
2023 2022
Total long-term debt $ 2,412,500 $ 2,270,000
Cash and cash equivalents 85,729 183,405
Total restricted cash 3,416 3,416
Net debt $ 2,323,355 $ 2,083,179
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Net income $ 23,345 $ 117,173 $ 106,654 $ 118,573
Derivatives, net 3,031 75,204 (3,809) 357,376
Cash settlements on commodity derivatives (4,030) (129,333) (8,213) (212,896)
Gain on sale of assets - (471) - (471)
Facilities insurance modifications, net - (384) - 6,752
Other, net(2) 4,838 (3,403) 6,737 (1,072)
Impairment of suspended well costs - 64,249 - 64,249
Loss on extinguishment of debt - - - 192
Total selected items before tax 3,839 5,862 (5,285) 214,130
Income tax (expense) benefit on adjustments(1) 277 17,163 3,785 (46,816)
Impact of valuation adjustments and U.S. tax law changes - (8,096) - (11,391)
Adjusted net income $ 27,461 132,102 105,154 274,496
Net income per diluted share $ 0.05 $ 0.25 $ 0.22 $ 0.25
Derivatives, net 0.01 0.16 (0.01) 0.75
Cash settlements on commodity derivatives (0.01) (0.27) (0.02) (0.45)
Gain on sale of assets - - - -
Facilities insurance modifications, net - - - 0.01
Other, net(2) 0.01 (0.01) 0.01 -
Impairment of suspended well costs - 0.14 - 0.14
Loss on extinguishment of debt - - - -
Total selected items before tax 0.01 0.02 (0.02) 0.45
Income tax (expense) benefit on adjustments(1) - 0.03 0.02 (0.10)
Impact of valuation adjustments and U.S. tax law changes - (0.02) - (0.02)
Adjusted net income per diluted share $ 0.06 $ 0.28 $ 0.22 $ 0.58
Weighted average number of diluted shares 479,016 475,645 478,902 473,471
(1) Income tax expense is calculated at the statutory rate in which such
item(s) reside. Statutory rates for the U.S. and Ghana/Equatorial Guinea are
21% and 35%, respectively.
(2) Commencing in the first quarter of 2023, the Company combined the
lines for "Restructuring and other" and "Other, net" in its presentation of
Adjusted net income into a single line titled "Other, net."
Kosmos Energy Ltd.
Free Cash Flow
(In thousands, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Reconciliation of free cash flow:
Net cash provided by operating activities $ 18,110 $ 278,558 $ 221,963 $ 608,186
Net cash used for oil and gas assets - base business (117,772) (68,163) (214,946) (154,088)
Base business free cash flow (99,662) 210,395 7,017 454,098
Net cash used for oil and gas assets - Mauritania/Senegal (75,410) (143,790) (201,921) (166,699)
Free cash flow $ (175,072) $ 66,605 $ (194,904) $ 287,399
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Net Volume Sold
Oil (MMBbl) 3.547 5.339 8.492 11.569
Gas (MMcf) 2.774 1.252 5.535 2.256
NGL (MMBbl) 0.107 0.129 0.203 0.246
Total (MMBoe) 4.116 5.677 9.618 12.191
Total (Mboepd) 45.234 62.381 53.135 67.354
Revenue
Oil sales $ 267,149 $ 604,668 $ 655,248 $ 1,254,676
Gas sales 3,568 10,271 7,434 15,207
NGL sales 2,538 5,429 4,813 9,500
Total oil and gas revenue 273,255 620,368 667,495 1,279,383
Cash settlements on commodity derivatives (4,030) (129,333) (8,213) (212,896)
Realized revenue $ 269,225 $ 491,035 $ 659,282 $ 1,066,487
Oil and Gas Production Costs $ 63,579 $ 90,189 $ 147,515 $ 214,892
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 75.32 $ 113.25 $ 77.16 $ 108.45
Average gas sales price per Mcf 1.29 8.20 1.34 6.74
Average NGL sales price per Bbl 23.72 42.09 23.71 38.62
Average total sales price per Boe 66.38 109.28 69.40 104.94
Cash settlements on commodity derivatives per Boe (0.98) (22.78) (0.85) (17.46)
Realized revenue per Boe 65.40 86.50 68.55 87.48
Oil and gas production costs per Boe $ 15.45 $ 15.88 $ 15.34 $ 17.63
(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 943.9 thousand barrels as of June 30,
2023.
Kosmos Energy Ltd.
Hedging Summary
As of June 30, 2023((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Floor(2) Sold Put Ceiling
2023:
Three-way collars Dated Brent 3,000 $ 71.67 $ 49.17 $ 107.58
Two-way collars Dated Brent 2,500 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
(1) Please see the Company's filed 10-Q for additional disclosure on
hedging material. Includes hedging position as of June 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
3Q 2023 FY 2023 Guidance
Production(1,2) 67,000 - 70,000 boe per day 65,000 - 69,000 boe per day
Opex $20.00 - $22.00 per boe $13.50 - $15.50 per boe
DD&A $17.00 - $19.00 per boe $19.00 - $21.00 per boe
G&A(~60% cash) $28 - $30 million $110 - $120 million
Exploration Expense(3) ~$10 million ~$40 million
Net Interest Expense(4) ~$25 million / quarter
Tax $9.00 - $11.00 per boe $10.00 - $12.00 per boe
Capital Expenditure(5) $175 - $200 million $700 - $750 million
Note: Ghana / Equatorial Guinea revenue calculated by number of cargos.
(1) 3Q 2023 cargo forecast - Ghana: 4 cargos / Equatorial Guinea 1 cargo.
FY 2023 Ghana: 14 cargos / Equatorial Guinea 3.5 cargos. Average cargo sizes
950,000 barrels of oil.
(2) U.S. Gulf of Mexico Production: 3Q 2023 forecast 13,500-14,500 boe per
day. FY2023: 14,000-15,500 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 IR EAXPKELLDEFARecent 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