Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS)
announced today its financial and operating results for the second
quarter of 2024. For the quarter, the Company generated a net
income of $60 million, or $0.12 per diluted share. When adjusted
for certain items that impact the comparability of results, the
Company generated an adjusted net income(1) of $80 million, or
$0.17 per diluted share for the second quarter of 2024.
SECOND QUARTER 2024 HIGHLIGHTS
- Net Production(2): ~62,100 barrels of oil equivalent per day
(boepd), representing ~7% growth year over year, with sales of
~65,400 boepd
- Revenues: $451 million, or $75.73 per boe (excluding the impact
of derivative cash settlements)
- Production expense: $151 million or $25.32 per boe ($22.27 per
boe excluding $18 million of production expenses associated with
the Greater Tortue Ahmeyim (GTA) project)
- Capital expenditures: $215 million
- Arrival on location and successful mooring of the floating
production, storage and offtake (FPSO) vessel for the GTA
project
- Post quarter end, in the US Gulf of Mexico achieved first oil
at Winterfell (with the first two wells online in early July),
successfully completed the operated Kodiak-3 well workover and the
startup of the Odd Job subsea pump project
- Post quarter end, in Equatorial Guinea the drilling rig for the
infill and infrastructure-led exploration (ILX) campaign arrived on
location and successfully drilled the first infill well
Commenting on the Company’s second quarter 2024 performance,
Chairman and Chief Executive Officer Andrew G. Inglis said: "It has
been a busy period for Kosmos with significant progress in the
delivery of our development projects. Production is rising in the
US Gulf of Mexico with the startup of Winterfell and the successful
completion of our production optimization activities. The drilling
campaign in Equatorial Guinea has now commenced and we continue to
see good progress across all major workstreams on the GTA project
in Mauritania and Senegal. With these projects online, we expect to
exit the year at our production goal of around 90,000 boepd. In
addition, we have completed the concept development work on
Yakaar-Teranga in Senegal and are progressing Tiberius in the US
Gulf of Mexico towards final investment decision, providing
high-quality investment opportunities beyond 2024.
As production ramps up and capital expenditures are expected to
fall, we remain committed to delivering free cash flow within a
disciplined capital framework, to further enhance the financial
resilience of the company, after which we will consider shareholder
returns."
FINANCIAL UPDATE
Net capital expenditure for the second quarter of 2024 was $215
million, below our guidance range primarily due to the timing of
capital expenditures accruals related to GTA in Mauritania and
Senegal, which we now expect will be recognized in the third
quarter. With the completion of the Ghana infill drilling program
and the startup of Winterfell, capital expenditures in the second
half of the year are expected to be materially lower than the first
half. As previously guided, with the resumption of the drilling
campaign in Equatorial Guinea, full year capital expenditure is
expected to be around $750 million.
Kosmos exited the second quarter of 2024 with approximately $2.7
billion of total long-term debt and approximately $2.5 billion of
net debt(1) and available liquidity of approximately $793
million.
The Company generated net cash provided by operating activities
of approximately $224 million and free cash flow(1) of
approximately $(15) million in the second quarter.
OPERATIONAL UPDATE
Production
Total net production(2) in the second quarter of 2024 averaged
approximately 62,100 boepd, within guidance range, representing a
~7% increase compared to the second quarter of 2023. This growth
largely reflects higher production in Ghana following completion of
the infill drilling campaign offset by lower production in the US
Gulf of Mexico due to planned downtime and a delay to startup of
the Winterfell project. The Company exited the quarter in a net
overlift position of approximately 0.1 million barrels.
Ghana
Production in Ghana averaged approximately 41,900 boepd net in
the second quarter of 2024. Kosmos lifted four cargos from Ghana
during the quarter, in line with guidance.
At Jubilee (38.6% working interest), oil production in the
second quarter averaged approximately 87,300 bopd gross with one
producer well brought online in April and one water injector well
brought online in June. As the operator in Ghana recently
communicated, the ramp up in production at Jubilee has been slower
than expected, primarily as a result of one producer well (J-69)
under performing expectations and a temporary reduction in water
injection. Voidage replacement during the second quarter was
approximately 80% (compared to the 100% target). The Jubilee FPSO
reliability remains high with uptime approximately 99% for the
second quarter.
Following the completion of the water injector well in June, the
three-year drilling campaign has concluded. The partnership now
plans to conduct a new 4D seismic survey in early 2025. This
survey, using enhanced seismic technology, will support the
partnership in high grading the optimal drilling locations for the
planned 2025/2026 drilling campaign.
In the second quarter, Jubilee gas production net to Kosmos was
approximately 6,200 boepd. The onshore gas plant that receives
Jubilee gas was originally expected to be offline for approximately
two weeks for planned routine maintenance during the second
quarter. This is now expected in the third quarter, with the impact
included in third quarter guidance. Following the J-69 well
underperformance, we now expect Jubilee production for the full
year to be around 90,000 bopd gross. Longer-term, with enhanced 4D
seismic imaging and a material 2P reserve base remaining, we remain
confident of the field’s production potential through the end of
the decade.
At TEN (20.4% working interest), production averaged
approximately 19,300 bopd gross for the second quarter, slightly
above expectations. Uptime on the TEN FPSO was approximately 99%
for the second quarter.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
11,700 boepd net (~83% oil) during the second quarter.
The first two wells at Winterfell (25% working interest) were
drilled and completed by April with startup occurring in early
July, later than planned impacting production in the quarter. The
third development well was successfully drilled in the second
quarter, encountering approximately 50 feet of net oil pay, in line
with expectations. First production from this well is expected by
the end of this quarter. Gross production from the first phase of
Winterfell is expected to be around 20,000 boepd when the initial
three wells are online.
Enhanced imaging from recent ocean bottom node (OBN) seismic,
calibrated with data from the first three Winterfell wells, gives
Kosmos increased confidence in the recovery of approximately 100
million boe gross in the first phase of the project (5 wells in
total) and greater visibility to additional upside potential in
adjacent prospectivity.
The Company’s production enhancement activities for 2024
concluded in July, with the completion of the Kodiak-3 well
workover and startup of the Odd Job subsea pump project, both
operated by Kosmos. Current production in the US Gulf of Mexico has
increased to approximately 20,000 boepd, a 40% increase over the
first quarter of the year.
The Tiberius project, (50% working interest and operator)
continues to progress as a phased development, with final
investment decision expected later this year. Long lead items and a
drilling rig have been secured to manage the development timeline
and project costs. Kosmos plans to farm down to optimize its
working interest to fit within the targeted 2025+ capital program.
Estimated gross resource at Tiberius is approximately 100 million
boe.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 24,200
bopd gross and 8,500 bopd net in the second quarter. Kosmos lifted
0.5 cargos from Equatorial Guinea during the quarter, in line with
guidance.
As previously announced, the Noble Venturer rig was contracted
to resume the infill and ILX drilling campaign and arrived on
location in July. The rig has successfully completed drilling the
first infill well in Block G with positive initial results. Post
completion, we plan to drill the second infill well. Both wells are
expected online in the fourth quarter, after which the rig is
contracted to drill the 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 what is
required for first gas.
- Hub Terminal: The Hub Terminal has been handed over to
operations.
- Subsea: The subsea workscope is progressing in line with
expectations with final connection work ongoing. Mechanical
completion for first gas is expected this month.
- FPSO: The vessel arrived on location offshore Mauritania and
Senegal during the second quarter of 2024 with mooring now
complete. All risers were installed in June and commissioning of
the FPSO is ongoing with handover to operations targeted in
September with first gas expected shortly thereafter.
- FLNG: The vessel arrived on location offshore Mauritania and
Senegal during the first quarter of 2024 and is now moored to the
Hub Terminal. The partnership is working with the vessel operator
to advance commissioning work and plans to bring in a
pre-commissioning cargo to accelerate the cool down of the vessel
later this month. First LNG is expected in the fourth quarter of
2024.
On Yakaar-Teranga in Senegal, Kosmos has completed the concept
development work, which supports a cost competitive LNG/domestic
gas project. Work will now transition towards finalizing the
partnership to support advancement of the project.
(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 2024 financial and operating results today, August 5, 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
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Revenues and other income:
Oil and gas revenue
$
450,900
$
273,255
$
870,003
$
667,495
Other income, net
36
60
72
(313
)
Total revenues and other income
450,936
273,315
870,075
667,182
Costs and expenses:
Oil and gas production
150,733
63,579
244,351
147,515
Exploration expenses
13,235
11,015
25,295
23,015
General and administrative
25,161
23,444
53,426
52,611
Depletion, depreciation and
amortization
90,094
89,913
191,022
199,287
Interest and other financing costs,
net
37,279
24,371
53,727
48,939
Derivatives, net
(2,852
)
3,031
20,970
(3,809
)
Other expenses, net
2,162
4,779
4,191
6,809
Total costs and expenses
315,812
220,132
592,982
474,367
Income before income taxes
135,124
53,183
277,093
192,815
Income tax expense
75,354
29,838
125,637
86,161
Net income
$
59,770
$
23,345
$
151,456
$
106,654
Net income per share:
Basic
$
0.13
$
0.05
$
0.32
$
0.23
Diluted
$
0.12
$
0.05
$
0.32
$
0.22
Weighted average number of shares used to
compute net income per share:
Basic
471,599
459,984
469,821
459,155
Diluted
480,172
479,016
479,824
478,902
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
173,813
$
95,345
Receivables, net
113,124
120,733
Other current assets
190,694
206,635
Total current assets
477,631
422,713
Property and equipment, net
4,558,313
4,160,229
Other non-current assets
353,366
355,192
Total assets
$
5,389,310
$
4,938,134
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
345,258
$
248,912
Accrued liabilities
302,903
302,815
Other current liabilities
6,710
3,103
Total current liabilities
654,871
554,830
Long-term liabilities:
Long-term debt, net
2,595,296
2,390,914
Deferred tax liabilities
370,840
363,918
Other non-current liabilities
626,412
596,135
Total long-term liabilities
3,592,548
3,350,967
Total stockholders’ equity
1,141,891
1,032,337
Total liabilities and stockholders’
equity
$
5,389,310
$
4,938,134
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Operating activities:
Net income
$
59,770
$
23,345
$
151,456
$
106,654
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
92,350
92,443
195,677
204,368
Deferred income taxes
12,515
(997
)
5,199
(9,029
)
Unsuccessful well costs and leasehold
impairments
2,219
9
2,685
1,313
Change in fair value of derivatives
(5,904
)
2,118
21,106
(220
)
Cash settlements on derivatives,
net(1)
(1,172
)
725
(7,366
)
(10,632
)
Equity-based compensation
10,487
11,105
17,815
21,198
Debt modifications and extinguishments
22,531
—
22,531
—
Other
(6,280
)
799
(11,988
)
(1,474
)
Changes in assets and liabilities:
Net changes in working capital
37,141
(111,437
)
99,105
(90,215
)
Net cash provided by operating
activities
223,657
18,110
496,220
221,963
Investing activities
Oil and gas assets
(238,171
)
(193,182
)
(552,993
)
(416,867
)
Notes receivable from partners
(47
)
(17,624
)
(2,575
)
(33,295
)
Net cash used in investing activities
(238,218
)
(210,806
)
(555,568
)
(450,162
)
Financing activities:
Borrowings under long-term debt
—
150,000
175,000
150,000
Payments on long-term debt
(50,000
)
—
(350,000
)
(7,500
)
Net proceeds from issuance of senior
notes
—
—
390,430
—
Purchase of capped call transactions
—
—
(49,800
)
—
Dividends
—
(1
)
—
(166
)
Other financing costs
(19,234
)
(1
)
(30,925
)
(11,811
)
Net cash provided by (used in) financing
activities
(69,234
)
149,998
134,705
130,523
Net increase (decrease) in cash, cash
equivalents and restricted cash
(83,795
)
(42,698
)
75,357
(97,676
)
Cash, cash equivalents and restricted cash
at beginning of period
257,913
131,843
98,761
186,821
Cash, cash equivalents and restricted cash
at end of period
$
174,118
$
89,145
$
174,118
$
89,145
______________________________
(1)
Cash settlements on commodity hedges were
$(4.5) million and $(4.0) million for the three months ended June
30, 2024 and 2023, respectively, and $(7.4) million and $(8.2)
million for the six months ended June 30, 2024 and 2023,
respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three Months Ended
Six months ended
Twelve Months Ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
June 30, 2024
Net income
$
59,770
$
23,345
$
151,456
$
106,654
$
258,322
Exploration expenses
13,235
11,015
25,295
23,015
44,558
Depletion, depreciation and
amortization
90,094
89,913
191,022
199,287
436,662
Impairment of long-lived assets
—
—
—
—
222,278
Equity-based compensation
10,487
11,105
17,815
21,198
39,310
Derivatives, net
(2,852
)
3,031
20,970
(3,809
)
35,907
Cash settlements on commodity
derivatives
(4,489
)
(4,030
)
(7,423
)
(8,213
)
(15,658
)
Other expenses, net(1)
2,162
4,779
4,191
6,809
21,038
Interest and other financing costs,
net
37,279
24,371
53,727
48,939
100,692
Income tax expense
75,354
29,838
125,637
86,161
197,691
EBITDAX
$
281,040
$
193,367
$
582,690
$
480,041
$
1,340,800
______________________________
(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 June 30, 2024
and December 31, 2023:
June 30,
December 31,
2024
2023
Total long-term debt
$
2,650,000
$
2,425,000
Cash and cash equivalents
173,813
95,345
Total restricted cash
305
3,416
Net debt
$
2,475,882
$
2,326,239
Kosmos Energy Ltd.
Adjusted Net Income
(Loss)
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net income
$
59,770
$
23,345
$
151,456
$
106,654
Derivatives, net
(2,852
)
3,031
20,970
(3,809
)
Cash settlements on commodity
derivatives
(4,489
)
(4,030
)
(7,423
)
(8,213
)
Other, net(2)
2,130
4,838
3,927
6,737
Debt modifications and extinguishments
22,531
—
22,531
—
Total selected items before tax
17,320
3,839
40,005
(5,285
)
Income tax (expense) benefit on
adjustments(1)
3,392
277
(3,917
)
3,785
Impact of valuation adjustments and other
tax items
—
—
(7,963
)
—
Adjusted net income
$
80,482
27,461
179,581
105,154
Net income per diluted share
$
0.12
$
0.05
$
0.32
$
0.22
Derivatives, net
(0.01
)
0.01
0.04
(0.01
)
Cash settlements on commodity
derivatives
(0.01
)
(0.01
)
(0.02
)
(0.02
)
Other, net(2)
—
0.01
0.01
0.01
Debt modifications and extinguishments
0.05
—
0.05
—
Total selected items before tax
0.03
0.01
0.08
(0.02
)
Income tax (expense) benefit on
adjustments(1)
0.02
—
(0.01
)
0.02
Impact of valuation adjustments and other
tax items
—
—
(0.02
)
—
Adjusted net income per diluted share
$
0.17
$
0.06
$
0.37
$
0.22
Weighted average number of diluted
shares
480,172
479,016
479,824
478,902
______________________________
(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,
2024
2023
2024
2023
Reconciliation of free cash
flow:
Net cash provided by operating
activities
$
223,657
$
18,110
$
496,220
$
221,963
Net cash used for oil and gas assets -
base business
(120,525
)
(117,772
)
(275,385
)
(214,946
)
Base business free cash flow
103,132
(99,662
)
220,835
7,017
Net cash used for oil and gas assets -
Mauritania/Senegal
(117,646
)
(75,410
)
(277,608
)
(201,921
)
Free cash flow
$
(14,514
)
$
(175,072
)
$
(56,773
)
$
(194,904
)
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel
and per barrel data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net Volume Sold
Oil (MMBbl)
5.210
3.547
10.099
8.492
Gas (MMcf)
4.101
2.774
8.437
5.535
NGL (MMBbl)
0.060
0.107
0.148
0.203
Total (MMBoe)
5.954
4.116
11.653
9.618
Total (Mboepd)
65.423
45.234
64.028
53.135
Revenue
Oil sales
$
435,100
$
267,149
$
837,217
$
655,248
Gas sales
14,494
3,568
29,632
7,434
NGL sales
1,306
2,538
3,154
4,813
Total oil and gas revenue
450,900
273,255
870,003
667,495
Cash settlements on commodity
derivatives
(4,489
)
(4,030
)
(7,423
)
(8,213
)
Realized revenue
$
446,411
$
269,225
$
862,580
$
659,282
Oil and Gas Production Costs
$
150,733
$
63,579
$
244,351
$
147,515
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl
$
83.51
$
75.32
$
82.90
$
77.16
Average gas sales price per Mcf
3.53
1.29
3.51
1.34
Average NGL sales price per Bbl
21.77
23.72
21.31
23.71
Average total sales price per Boe
75.73
66.38
74.66
69.40
Cash settlements on commodity derivatives
per Boe
(0.75
)
(0.98
)
(0.64
)
(0.85
)
Realized revenue per Boe
74.98
65.40
74.02
68.55
Oil and gas production costs per
Boe
$
25.31
$
15.45
$
20.97
$
15.34
______________________________
(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 overlifted by approximately 0.1 million barrels as of
June 30, 2024.
Kosmos Energy Ltd.
Hedging Summary
As of June 30, 2024(1)
(Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2024:
Three-way collars
Dated Brent
4,000
$
70.00
$
45.00
$
93.12
Two-way collars
Dated Brent
1,000
70.00
—
100.00
1H 2025:
Two-way collars
Dated Brent
2,000
70.00
—
95.00
______________________________
(1)
Please see the Company’s filed 10-Q for
additional disclosure on hedging material. Includes hedging
position as of June 30, 2024 and hedges put in place through filing
date.
(2)
“Floor” represents floor price for collars
and strike price for purchased puts.
2024 Guidance
3Q 2024
FY 2024 Guidance
Production(1,2)
65,000 - 69,000 boe per day
67,000 - 71,000 boe per day
Opex(3)
$17.50 - $19.50 per boe
$16.50 - $18.50 per boe
DD&A
$19.50 - $21.50 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)
$25 - $30 million
~$140 million
Tax
$9.00 - $11.00 per boe
$10.00 - $12.00 per boe
Capital Expenditure
$175 - $200 million
~$750 million
______________________________
Note: Ghana / Equatorial Guinea revenue
calculated by number of cargos.
(1)
3Q 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: 3Q 2024
forecast 15,500-16,500 boe per day; includes assumed downtime for
weather. FY 2024: 15,500-17,000 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 ($50 - $70 million in 3Q 2024)
(4)
Excludes leasehold impairments and dry
hole costs
(5)
Includes impact of capitalized interest;
~$35 million related to GTA in 3Q 2024
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240804056117/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
Kosmos Energy (NYSE:KOS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kosmos Energy (NYSE:KOS)
Historical Stock Chart
From Sep 2023 to Sep 2024