TIDMKOS
RNS Number : 4152S
Kosmos Energy Limited
06 November 2023
KOSMOS ENERGY ANNOUNCES THIRD QUARTER 2023 RESULTS
DALLAS November 6, 2023-- Kosmos Energy Ltd. ("Kosmos" or the
"Company") (NYSE/LSE: KOS) announced today its financial and
operating results for the third quarter of 2023. For the quarter,
the Company generated a net income of $85 million, or $0.18 per
diluted share. When adjusted for certain items that impact the
comparability of results, the Company generated an adjusted net
income(1) of $126 million, or $0.26 per diluted share for the third
quarter of 2023.
THIRD QUARTER 2023 HIGHLIGHTS
-- Net Production(2) : 68,200 barrels of oil equivalent per day
(boepd), with sales of 73,100 boepd
-- Start up of the Jubilee South East development offshore Ghana
-- Post quarter-end, Tiberius infrastructure-led exploration
(ILX) oil discovery offshore U.S. Gulf of Mexico
-- Post quarter-end, assumption of operatorship and a greater
working interest at Yakaar-Teranga offshore Senegal, subject to
customary government approvals
-- Repayment of Gulf of Mexico Term Loan, reducing our cost of
capital and simplifying our capital structure
-- Revenues: $526 million, or $78.24 per boe (excluding the
impact of derivative cash settlements)
-- Production expense: $139 million, or $20.63 per boe
-- Capital expenditures: $193 million
Commenting on the Company's third quarter 2023 performance,
Chairman and Chief Executive Officer Andrew G. Inglis said: "Kosmos
continues to create value for its stakeholders through the
consistent delivery of its strategy to grow production, advance its
advantaged oil and LNG projects, and add resource through
infrastructure-led exploration.
"Production in the quarter increased by around 17% versus the
second quarter following the successful startup of the Jubilee
South East development, with three producers brought online taking
gross field production up to around 100,000 barrels of oil per day,
with continued growth expected.
"In addition, Kosmos advanced its two key development projects
at Winterfell and Tortue Phase 1. When online, these projects
together with Jubilee South East are expected to increase
production by around 50% from the second half of 2022, generating
the cash flow inflection we have been working towards.
"Looking to options for future growth, Kosmos recently announced
the Tiberius oil discovery in the U.S. Gulf of Mexico, as well as
the assumption of operatorship of the Yakaar-Teranga gas fields
offshore Senegal. These low cost, lower carbon oil and gas projects
are expected to provide the next phase of growth for the company
beyond 2024. We plan to balance the pace and working interest of
these future projects to ensure we can manage our growth and
generate material free cash flow."
FINANCIAL UPDATE
Kosmos exited the third 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 $0.6 billion.
The Company generated net cash provided by operating activities of
approximately $249 million and free cash flow(1) of approximately
$54 million in the third quarter, in line with expectations.
During the quarter, Kosmos repaid the Gulf of Mexico term loan,
simplifying the company's capital structure. The Company also
successfully completed the semi-annual redetermination of the
reserve-based lending facility and deferred the first amortization
period, which results in no scheduled debt maturities until 2025
and beyond.
Net capital expenditure for the third quarter of 2023 was $193
million, in line with guidance.
OPERATIONAL UPDATE
Production
Total net production(2) in the third quarter of 2023 averaged
approximately 68,200 boepd, a 17% increase from the second quarter,
in line with guidance. The Company exited the quarter in a net
underlift position of approximately 0.5 million barrels, which is
expected to partially reverse in the fourth quarter.
Ghana
Production in Ghana averaged approximately 43,600 boepd net in
the third quarter of 2023. Kosmos lifted four cargos from Ghana
during the quarter, in line with guidance.
At Jubilee, production averaged approximately 95,900 bopd gross
during the quarter, 32% higher compared to the previous
quarter.
Three producer wells were brought online during the third
quarter, taking gross field production up to around 100,000
bopd.
Post quarter-end, two water injection wells, which were delayed
due to operational issues, were brought online. This delay coupled
with higher than anticipated downtime of the water injection pumps
within the quarter, resulted in a slower ramp-up in Jubilee
production. This is expected to result in one Jubilee cargo lifting
originally planned for Kosmos in the fourth quarter of 2023, being
deferred into early 2024.
At TEN, production averaged approximately 15,100 bopd gross for
the third quarter, in line with expectations, and lower
quarter-on-quarter largely due to a planned two week shutdown.
The partnership has submitted a draft amended plan of
development for a high-graded activity set at TEN and a combined
gas sales agreement for Jubilee and TEN to the Government of Ghana
for approval. An interim gas sales agreement for Jubilee associated
gas has been extended through November 2023 at a price of
$2.90/mmbtu while discussions are ongoing on a longer-term
agreement.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
15,700 boepd net (82% oil) during the third quarter, above guidance
due to lower storm activity than anticipated during the period.
The Winterfell development continues to make good progress.
Drilling of the wells commenced in August and the first well has
now been successfully completed. Partners are targeting first oil
around the end of the first quarter of 2024.
As announced in October, the Tiberius ILX well in Keathley
Canyon, block 964 encountered approximately 250 feet (75 meters) of
net oil pay in the primary Wilcox target. The Tiberius well is
located in approximately 7,500 feet (2,300 meters) of water and was
drilled to a total vertical depth of approximately 25,800 feet
(7,800 meters).
Kosmos is undertaking rock and fluid analysis to confirm the
production potential of the reservoir, with results expected around
year-end. Kosmos is also working with partners on subsea
development options. The discovery is located approximately 6 miles
southeast of the Occidental-operated Lucius SPAR production
facility, enabling a short tie-back in the event of a
development.
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. The Odd Job field saw some
unplanned downtime in October and is expected back online in
November.
At Kodiak, workover plans have been developed for remediation
and are now expected to commence around the middle of 2024 given
the better than forecast performance of the well this year.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 25,400
bopd gross and 8,900 bopd net in the third quarter of 2023. Kosmos
lifted one cargo from Equatorial Guinea during the quarter, in line
with guidance.
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,
with all three wells expected online by the second quarter of
2024.
Akeng Deep, an ILX opportunity 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 workover and infill drilling campaign.
Mauritania & Senegal
On Greater Tortue Ahmeyim, the following milestones have been
achieved:
-- Drilling: Earlier in the year, the operator, successfully
drilled and completed all four wells with expected production
capacity significantly higher than what is required for first
gas.
-- Hub Terminal: Construction work is complete, and handover to
operations was completed in August 2023.
-- Subsea: Significant progress has been made on the revised
plan to complete installation of the infield flowlines and subsea
structures due to the previously announced delay in the subsea
workstream. Work on the revised plan is expected to commence later
this quarter with new contractors.
-- FLNG: Construction and mechanical completion activities are
finishing and pre-commissioning work is underway. The vessel is
expected to sail away later this quarter arriving on location early
next year when hookup work is expected to commence.
-- FPSO: Currently en route to Mauritania/Senegal and is now
expected to arrive on location in the first quarter of 2024.
The critical path to first gas on Phase 1 of the Greater Tortue
Ahmeyim project is now through the arrival, hookup and
commissioning of the FPSO. The delivery of first gas in the first
quarter of 2024, as signaled by BP (the operator) in its third
quarter results last week, depends on the execution of this
workstream, which has the potential to slip into the second quarter
of 2024.
On Yakaar-Teranga, Kosmos announced today that it had assumed
operatorship and increased its interest in the field to 90% (from
30%), subject to customary government approvals. Kosmos is working
closely with Senegal's national oil company (PETROSEN) and the
Government of Senegal on an innovative development concept that
prioritizes cost-competitive gas to the rapidly growing domestic
market, combined with an offshore liquefied natural gas facility
targeting exports into international LNG markets. The project
supports the country's 'Plan Sénégal Emergent' objective of
providing affordable, abundant, and cleaner energy.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP
measure.
(2) Production means net entitlement volumes. In Ghana and
Equatorial Guinea, this means those volumes net to Kosmos' working
interest or participating interest and net of royalty or production
sharing contract effect. In the U.S. Gulf of Mexico, this means
those volumes net to Kosmos' working interest and net of
royalty.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss third
quarter 2023 financial and operating results today, November 6,
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 Nine Months Ended
September 30, September 30,
------------------------------- ------------------------------
2023 2022 2023 2022
-------------- --------------- -------------- --------------
Revenues and other income:
Oil and gas revenue $ 526,348 $ 456,056 $ 1,193,843 $ 1,735,439
Gain on sale of assets - - - 471
Other income, net 198 48 (115) 143
-------------- --------------- -------------- --------------
Total revenues and other income 526,546 456,104 1,193,728 1,736,053
Costs and expenses:
Oil and gas production 138,782 62,372 286,297 277,264
Facilities insurance modifications, net - 494 - 7,246
Exploration expenses 10,290 17,215 33,305 118,656
General and administrative 25,120 24,007 77,731 74,424
Depletion, depreciation and amortization 132,347 106,313 331,634 386,961
Interest and other financing costs, net 25,440 29,796 74,379 92,317
Derivatives, net 45,971 (113,842) 42,162 243,534
Other expenses, net 11,055 (218) 17,864 (1,320)
-------------- --------------- -------------- --------------
Total costs and expenses 389,005 126,137 863,372 1,199,082
-------------- --------------- -------------- --------------
Income before income taxes 137,541 329,967 330,356 536,971
Income tax expense 52,356 107,713 138,517 196,144
-------------- --------------- -------------- --------------
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827
============== =============== ============== ==============
Net income per share:
Basic $ 0.19 $ 0.49 $ 0.42 $ 0.75
============== =============== ============== ==============
Diluted $ 0.18 $ 0.47 $ 0.40 $ 0.72
============== =============== ============== ==============
Weighted average number of shares used
to compute net income per share:
Basic 460,108 455,840 459,477 455,158
============== =============== ============== ==============
Diluted 481,099 476,431 479,738 474,820
============== =============== ============== ==============
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September December
30, 31,
2023 2022
--------------------- --------------------
Assets
Current assets:
Cash and cash equivalents $ 138,742 $ 183,405
Receivables, net 118,567 119,735
Other current assets 204,487 165,581
--------------------- --------------------
Total current assets 461,796 468,721
Property and equipment, net 4,179,969 3,842,647
Other non-current assets 327,636 268,620
--------------------- --------------------
Total assets $ 4,969,401 $ 4,579,988
===================== ====================
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 199,031 $ 212,275
Accrued liabilities 338,790 325,206
Current maturities of long-term debt - 30,000
Other current liabilities 26,597 6,773
--------------------- --------------------
Total current liabilities 564,418 574,254
Long-term liabilities:
Long-term debt, net 2,389,197 2,195,911
Deferred tax liabilities 433,628 468,445
Other non-current liabilities 582,489 553,530
--------------------- --------------------
Total long-term liabilities 3,405,314 3,217,886
Total stockholders' equity 999,669 787,848
--------------------- --------------------
Total liabilities and stockholders' equity $ 4,969,401 $ 4,579,988
===================== ====================
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ ------------------------------
2023 2022 2023 2022
-------------- -------------- -------------- --------------
Operating activities:
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion, depreciation and amortization
(including deferred financing costs) 134,809 108,890 339,177 394,799
Deferred income taxes (28,452) 45,987 (37,481) (37,445)
Unsuccessful well costs and leasehold
impairments 931 9,424 2,244 83,086
Change in fair value of derivatives 52,687 (110,262) 52,467 257,112
Cash settlements on derivatives, net(1) (10,846) (80,710) (21,478) (304,328)
Equity-based compensation 10,580 8,767 31,778 25,896
Gain on sale of assets - - - (471)
Loss on extinguishment of debt 1,503 - 1,503 192
Other 4,021 (2,198) 2,547 (5,940)
Changes in assets and liabilities:
Net changes in working capital (987) 52,898 (91,202) 109,508
-------------- -------------- -------------- --------------
Net cash provided by operating activities 249,431 255,050 471,394 863,236
Investing activities
Oil and gas assets (195,047) (222,562) (611,914) (543,349)
Acquisition of oil and gas properties - - - (21,205)
Proceeds on sale of assets - 10 - 118,703
Notes receivable from partners (13,337) (16,760) (46,632) (28,188)
-------------- -------------- -------------- --------------
Net cash used in investing activities (208,384) (239,312) (658,546) (474,039)
Financing activities:
Borrowings under long-term debt 150,000 - 300,000 -
Payments on long-term debt (137,500) (7,500) (145,000) (322,500)
Tax withholdings on restricted stock units - - (11,811) (2,753)
Dividends - - (166) (655)
Deferred financing costs (534) - (534) (6,288)
-------------- -------------- -------------- --------------
Net cash provided by (used in) financing
activities 11,966 (7,500) 142,489 (332,196)
-------------- -------------- -------------- --------------
Net increase (decrease) in cash, cash
equivalents
and restricted cash 53,013 8,238 (44,663) 57,001
Cash, cash equivalents and restricted cash
at beginning of period 89,145 223,659 186,821 174,896
-------------- -------------- -------------- --------------
Cash, cash equivalents and restricted cash
at end of period $ 142,158 $ 231,897 $ 142,158 $ 231,897
============== ============== ============== ==============
(1) Cash settlements on commodity hedges were $(4.1) million and
$(77.0) million for the three months ended September 30, 2023 and
2022, respectively, and $(12.3) million and $(289.9) million for
the nine months ended September 30, 2023 and 2022.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Twelve
Three Months Ended Nine months ended Months Ended
---------------------------------------------- ---------------------------------------------- ----------------------
September September September September September
30, 2023 30, 2022 30, 2023 30, 2022 30, 2023
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827 $ 77,563
Exploration
expenses 10,290 17,215 33,305 118,656 48,879
Facilities
insurance
modifications,
net - 494 - 7,246 (1,003)
Depletion,
depreciation
and
amortization 132,347 106,313 331,634 386,961 442,929
Impairment of
long-lived
assets - - - - 449,969
Equity-based
compensation 10,580 8,767 31,778 25,896 40,428
Derivatives,
net 45,971 (113,842) 42,162 243,534 59,520
Cash
settlements on
commodity
derivatives (4,130) (77,001) (12,343) (289,897) (50,318)
Other expenses,
net(2) 11,055 (218) 17,864 (1,320) 10,129
Gain on sale of
assets - - - (471) (50,000)
Interest and
other
financing
costs, net 25,440 29,796 74,379 92,317 100,322
Income tax
expense 52,356 107,713 138,517 196,144 52,889
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
EBITDAX $ 369,094 $ 301,491 $ 849,135 $ 1,119,893 $ 1,181,307
Sold Ghana &
acquired Kodiak
interests
EBITDAX Adj(1) - - - (15,723) -
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Pro Forma EBITDAX $ 369,094 $ 301,491 $ 849,135 $ 1,104,170 $ 1,181,307
====================== ====================== ====================== ====================== ======================
(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 September 30,
2023 and December 31, 2022:
September December
30, 31,
---------------------- ----------------------
2023 2022
---------------------- ----------------------
Total long-term debt $ 2,425,000 $ 2,270,000
Cash and cash equivalents 138,742 183,405
Total restricted cash 3,416 3,416
---------------------- ----------------------
Net debt $ 2,282,842 $ 2,083,179
====================== ======================
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------- --------------------------------------
2023 2022 2023 2022
------------------ ------------------- ------------------ ------------------
Net income $ 85,185 $ 222,254 $ 191,839 $ 340,827
Derivatives, net 45,971 (113,842) 42,162 243,534
Cash settlements on commodity
derivatives (4,130) (77,001) (12,343) (289,897)
Gain on sale of assets - - - (471)
Facilities insurance
modifications,
net - 494 - 7,246
Other, net(2) 11,117 (90) 17,854 (1,162)
Impairment of suspended well
costs - (355) - 63,894
Loss on extinguishment of
debt 1,503 - 1,503 192
Total selected items before tax 54,461 (190,794) 49,176 23,336
------------------ ------------------- ------------------ ------------------
Income tax (expense) benefit on
adjustments(1) (13,630) 59,739 (9,845) 12,923
Impact of valuation adjustments
and
U.S. tax law changes - (1,354) - (12,745)
------------------ ------------------- ------------------ ------------------
Adjusted net income $ 126,016 89,845 231,170 364,341
================== =================== ================== ==================
Net income per diluted share $ 0.18 $ 0.47 $ 0.40 $ 0.72
Derivatives, net 0.10 (0.24) 0.09 0.51
Cash settlements on commodity
derivatives (0.01) (0.16) (0.03) (0.61)
Gain on sale of assets - - - -
Facilities insurance
modifications,
net - - - 0.02
Other, net(2) 0.02 - 0.04 -
Impairment of suspended well
costs - - - 0.13
Loss on extinguishment of
debt - - - -
Total selected items before tax 0.11 (0.40) 0.10 0.05
------------------ ------------------- ------------------ ------------------
Income tax (expense) benefit on
adjustments(1) (0.03) 0.12 (0.02) 0.03
Impact of valuation adjustments
and
U.S. tax law changes - - - (0.03)
------------------ ------------------- ------------------ ------------------
Adjusted net income per diluted
share $ 0.26 $ 0.19 $ 0.48 $ 0.77
================== =================== ================== ==================
Weighted average number of
diluted
shares 481,099 476,431 479,738 474,820
(1) Income tax expense is calculated at the statutory rate in
which such item(s) reside. Statutory rates for the U.S. and
Ghana/Equatorial Guinea are 21% and 35%, respectively.
(2) Commencing in the first quarter of 2023, the Company
combined the lines for "Restructuring and other" and "Other, net"
in its presentation of Adjusted net income into a single line
titled "Other, net."
Kosmos Energy Ltd.
Free Cash Flow
(In thousands, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ------------------------
2023 2022 2023 2022
------------ ------------ ----------- -----------
Reconciliation of free cash flow:
Net cash provided by operating activities $ 249,431 $ 255,050 $ 471,394 $ 863,236
Net cash used for oil and gas assets - base
business (122,542) (89,811) (337,488) (243,899)
------------ ------------ ----------- -----------
Base business free cash flow 126,889 165,239 133,906 619,337
Net cash used for oil and gas assets -
Mauritania/Senegal (72,505) (132,751) (274,426) (299,450)
------------ ------------ ----------- -----------
Free cash flow $ 54,384 $ 32,488 $ (140,520) $ 319,887
============ ============ =========== ===========
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------------- ------------------------------------------------
2023 2022 2023 2022
---------------------- --------------------- ----------------------- -----------------------
Net Volume Sold
Oil (MMBbl) 5.956 4.458 14.448 16.028
Gas (MMcf) 4.046 0.859 9.582 3.115
NGL (MMBbl) 0.097 0.084 0.299 0.330
---------------------- --------------------- ----------------------- -----------------------
Total
(MMBoe) 6.727 4.685 16.344 16.877
====================== ===================== ======================= =======================
Total
(Mboepd) 73.123 50.926 59.868 61.821
====================== ===================== ======================= =======================
Revenue
Oil sales $ 511,735 $ 444,491 $ 1,166,983 $ 1,699,167
Gas sales 13,080 8,595 20,514 23,802
NGL sales 1,533 2,970 6,346 12,470
---------------------- --------------------- ----------------------- -----------------------
Total oil and
gas revenue 526,348 456,056 1,193,843 1,735,439
Cash
settlements
on commodity
derivatives (4,130) (77,001) (12,343) (289,897)
---------------------- --------------------- ----------------------- -----------------------
Realized
revenue $ 522,218 $ 379,055 $ 1,181,500 $ 1,445,542
====================== ===================== ======================= =======================
Oil and Gas
Production
Costs $ 138,782 $ 62,372 $ 286,297 $ 277,264
Sales per
Bbl/Mcf/Boe
Average
oil
sales
price
per Bbl $ 85.92 $ 99.71 $ 80.77 $ 106.01
Average
gas
sales
price
per Mcf 3.23 10.01 2.14 7.64
Average
NGL
sales
price
per Bbl 15.80 35.36 21.22 37.79
Average total
sales price
per Boe 78.24 97.34 73.04 102.83
Cash
settlements
on commodity
derivatives
per Boe (0.61) (16.44) (0.76) (17.18)
Realized
revenue per
Boe 77.63 80.91 72.29 85.65
Oil and gas
production
costs per
Boe $ 20.63 $ 13.31 $ 17.51 $ 16.43
(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 494.7 thousand barrels
as of September 30, 2023.
Kosmos Energy Ltd.
Hedging Summary
As of September 30, 2023(1)
(Unaudited)
Weighted Average Price per
Bbl
-----------------------------------------------------
Index MBbl Floor(2) Sold Put Ceiling
----------- ------------ -------------- --------------- --------------
2023:
Three-way collars Dated Brent 1,500 $ 71.67 $ 49.17 $ 107.58
Two-way collars Dated Brent 1,250 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
Two-way collars Dated Brent 2,000 70.00 - 100.00
(1) Please see the Company's filed 10-Q for additional
disclosure on hedging material. Includes hedging position as of
September 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
4Q 2023 FY 2023 Guidance
------------------- -------------------
66,000 - 69,000 boe
Production(1,2) per day 63,000 boe per day
Opex $12 - $14 per boe $16 per boe
DD&A $18 - $20 per boe $20 per boe
G&A(60% cash) $31 - $33 million $110 million
Exploration Expense(3) $10 million $40 million
Net Interest Expense(4) $25 million / quarter
Tax $14 - $16 per boe $10 - $11 per boe
Capital Expenditure(5) $225 - $250 million $800 million
Note: Ghana / Equatorial Guinea revenue calculated by number of
cargos.
(1) 4Q 2023 cargo forecast - Ghana: 4 cargos / Equatorial Guinea
1 cargo. FY 2023 Ghana: 13 cargos / Equatorial Guinea 3.5 cargos.
Average cargo sizes 950,000 barrels of oil.
(2) U.S. Gulf of Mexico Production: 4Q 2023 forecast
13,500-14,500 boe per day. FY2023: 15,000-15,500 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
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END
QRTDGBDBISGDGXU
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November 06, 2023 02:00 ET (07:00 GMT)
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