TIDMKOS
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)
December
June 30, 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)
Twelve
Three Months Ended Six months ended Months Ended
---------------------------------------------- ---------------------------------------------- ----------------------
June 30, June 30, June 30, June 30, June 30,
2023 2022 2023 2022 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:
December
June 30, 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
------------------- -------------------
67,000 - 70,000 boe 65,000 - 69,000 boe
Production(1,2) per day per day
$20.00 - $22.00 per $13.50 - $15.50 per
Opex boe boe
$17.00 - $19.00 per $19.00 - $21.00 per
DD&A boe 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
$9.00 - $11.00 per $10.00 - $12.00 per
Tax boe 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
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END
IR EAXPKELLDEFA
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