Kosmos Energy Signs Production Prepayment Agreement for up to $200 Million
June 29 2020 - 1:00AM
Business Wire
Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”)
announced today that it has entered into a crude oil prepayment
agreement (“Prepayment Agreement”) with Trafigura Trading LLC
(“Trafigura”).
The Prepayment Agreement provides up to $200 million of crude
oil sales primarily related to a portion of the Company's 2022 and
2023 Gulf of Mexico production, with $150 million committed by
Trafigura. Kosmos expects to execute $50 million of advance crude
oil sales in June 2020. Later this year, following the completion
of the Prepayment Agreement conditions subsequent, an additional
$100-150 million of advance crude oil sales is expected, subject to
finalizing additional commitments for $50 million.
“At the start of the market downturn, Kosmos took decisive
action to reduce costs, restructure hedges, and preserve liquidity.
With this Prepayment Agreement, we have secured up to $200 million
in additional liquidity to help us manage the business during this
time of unprecedented volatility. This liquidity also gives us the
flexibility to take advantage of opportunities that may arise in a
dislocated market,” said Neal Shah, Chief Financial Officer.
Kosmos is evaluating the classification of the Prepayment
Agreement as deferred revenue on its balance sheet, although such
accounting treatment is subject to final analysis.
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 U.S. Gulf of Mexico, as well as a world-class
gas development offshore Mauritania and Senegal. We also maintain a
sustainable exploration program balanced between proven basin
infrastructure-led exploration (Equatorial Guinea and U.S. Gulf of
Mexico), emerging basins (Mauritania, Senegal and Suriname) and
frontier basins (Namibia, Sao Tome and Principe and South Africa).
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 2018
Corporate Responsibility Report. For additional information, visit
www.kosmosenergy.com.
About Trafigura
Founded in 1993, Trafigura is one of the largest physical
commodities trading groups in the world. Trafigura sources, stores,
transports and delivers a range of raw materials (including oil and
refined products and metals and minerals) to clients around the
world. The trading business is supported by industrial and
financial assets, including 49.3 percent owned global oil products
storage and distribution company Puma Energy; global terminals,
warehousing and logistics operator Impala Terminals; Trafigura's
Mining Group; and Galena Asset Management. The Company is owned by
over 700 of its 8,000 employees who work in 80 offices in 41
countries around the world. For additional information, visit
https://www.trafigura.com
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200628005045/en/
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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