Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS)
announced today its financial and operating results for the second
quarter of 2023. For the quarter, the Company generated a net
income of $23 million, or $0.05 per diluted share. When adjusted
for certain items that impact the comparability of results, the
Company generated an adjusted net income(1) of $27 million, or
$0.06 per diluted share for the second quarter of 2023.
SECOND QUARTER 2023 HIGHLIGHTS
- Net Production(2): ~58,000 barrels of oil equivalent per day
(boepd), with sales of ~45,200 boepd
- Revenues: $273 million, or $66.38 per boe (excluding the impact
of derivative cash settlements)
- Production expense: $64 million, or $15.45 per boe
- Capital expenditures: $170 million
- Post-quarter end, start-up of the Jubilee South East
development with the field now producing ~100,000 barrels of oil
per day gross
Commenting on the Company’s second quarter 2023 performance,
Chairman and Chief Executive Officer Andrew G. Inglis said: “Kosmos
continued to deliver on its strategy with the commencement of
production from the Jubilee South East development in July. The
start up of the first of three key development projects for Kosmos
is an important step to realizing the free cash flow inflection
point we expect as production rises and capital spending starts to
fall. With the additional production from Jubilee year-to-date, we
are currently around half way to achieving our 50% production
growth target from 2022 levels.
“Further production growth is expected later in the year as
additional Jubilee wells come online. Our other key projects,
Greater Tortue Ahmeyim Phase 1 in Mauritania and Senegal, and
Winterfell in the U.S. Gulf of Mexico continue to progress with
first gas at Tortue expected in the first quarter of 2024 and first
oil at Winterfell expected around the end of the first quarter of
2024. We are approaching an exciting time for the business as we
begin to benefit from the delivery of our multi-year investment
program.”
FINANCIAL UPDATE
Net capital expenditure for the second quarter of 2023 was $170
million, below guidance primarily due to lower accruals related to
the delay in the subsea workscope on Tortue Phase 1.
Realized pricing for the quarter of $65.40 per boe, including
derivative cash settlements, was lower compared to the first
quarter due to lower commodity prices during the period.
Kosmos exited the second quarter of 2023 with approximately $2.4
billion of total long-term debt and approximately $2.3 billion of
net debt(1) and available liquidity of approximately $0.7 billion.
The Company generated net cash provided by operating activities of
approximately $18 million and free cash flow(1) of approximately
$(175) million in the second quarter, in line with expectations,
largely as a result of the underlift position at the end of the
second quarter.
OPERATIONAL UPDATE
Production
Total net production(2) in the second quarter of 2023 averaged
approximately 58,000 boepd, in line with company guidance, with
current production around 25% higher post the startup of Jubilee
South East. The Company exited the quarter in a net material
underlift position of approximately 1 million barrels, which is
expected to reverse in the second half of the year.
Ghana
Production in Ghana averaged approximately 33,700 boepd net in
the second quarter of 2023. Kosmos lifted two cargos from Ghana
during the quarter, in line with guidance.
At Jubilee, production averaged approximately 72,700 bopd gross
during the quarter, in line with the previous quarter.
Post the end of the second quarter, the Jubilee South East (JSE)
development commenced production with two wells coming online,
approximately a month behind schedule. The two new JSE wells took
gross Jubilee production to around 100,000 bopd. An additional
Jubilee producer well and two water injector wells are expected
online later in the year, which should further enhance production
levels towards the facility limit.
At TEN, production averaged approximately 19,700 bopd gross for
the second quarter, in line with expectations.
A draft amended plan of development for a high-graded activity
set at TEN and a combined gas sales agreement for Jubilee and TEN
are currently being progressed with the Government of Ghana for
approval. To allow the Government of Ghana time to secure the
necessary approvals, an interim gas sales agreement for Jubilee
associated gas has been signed through September 2023 at a price of
$2.90/mmbtu.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
15,900 boepd net (~81% oil) during the second quarter, in line with
guidance.
The Winterfell project continues to make good progress with
drilling of the first phase of the development wells expected to
start in the third quarter. Partners are targeting first oil around
the end of the first quarter of 2024.
Tiberius, an infrastructure-led exploration (ILX) well,
targeting a four-way structural trap with a pre-drill gross
resource estimate of ~135 million barrels of oil, commenced
drilling early in the third quarter with initial results expected
late in the quarter.
Production from the Kodiak ST-3 well has improved over the
quarter and, as a result, the timing for the well workover is being
optimized to include a third producing zone and is now expected to
complete mid-2024.
The Odd Job subsea pump project, intended to sustain long-term
production from the field, continues to progress and remains on
track to be in service by mid-2024.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 24,000
bopd gross and 8,400 bopd net in the second quarter of 2023. Kosmos
lifted 0.5 cargos from Equatorial Guinea during the quarter, in
line with guidance. In July, the partnership lifted the 500th cargo
from the FPSO, a major milestone for the fields.
The infill drilling campaign is scheduled to commence in the
fourth quarter of 2023 following a two well workover program
utilizing the drilling rig. The first of three infill wells is
expected to be online around the end of the first quarter 2024.
The Akeng Deep ILX opportunity, a well targeting an estimated
pre-drill gross resource of ~180 million barrels of oil in the
deeper Albian trend, is expected to spud next year following the
completion of the infill drilling campaign.
Mauritania & Senegal
As communicated with the Company's first quarter 2023 results,
critical path to first gas on Phase 1 of the Greater Tortue project
is through the completion of the subsea work scope. As a result of
a delay in these activities, first gas for the project is now
targeted in the first quarter of 2024, with the delivery of the
other work scopes being optimized for the updated project schedule.
The following milestones were achieved during the period:
- FLNG: Construction and mechanical completion activities are
finishing and pre-commissioning work is underway. Sailaway is
targeted around the end of the third quarter of 2023 with the
vessel expected to arrive on location around the end of 2023 when
hookup work is expected to commence.
- FPSO: In January 2023, the FPSO vessel departed China making a
planned stopover in Singapore to install the fair leads. Arrival on
location offshore Mauritania/Senegal is expected in the fourth
quarter of 2023 to align with the revised schedule for the subsea
work scope.
- Hub Terminal: Construction work is complete, and activity is
focused on progressing handover to operations in the third quarter
of 2023.
- Subsea: Due to a delay in the subsea workstream, the operator
has put in place a plan to finish installation of the infield
flowlines and subsea structures in the first quarter of 2024.
- Drilling: Successfully drilled and completed all four wells
with expected production capacity significantly higher than what is
required for first gas.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP
measure. (2) Production means net entitlement volumes. In Ghana and
Equatorial Guinea, this means those volumes net to Kosmos' working
interest or participating interest and net of royalty or production
sharing contract effect. In the U.S. Gulf of Mexico, this means
those volumes net to Kosmos' working interest and net of
royalty.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss second
quarter 2023 financial and operating results today, August 7, 2023,
at 10:00 a.m. Central time (11:00 a.m. Eastern time). The live
webcast of the event can be accessed on the Investors page of
Kosmos’ website at
http://investors.kosmosenergy.com/investor-events. The dial-in
telephone number for the call is +1-877-407-0784. Callers in the
United Kingdom should call 0800 756 3429. Callers outside the
United States should dial +1-201-689-8560. A replay of the webcast
will be available on the Investors page of Kosmos’ website for
approximately 90 days following the event.
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas
exploration and production company focused along the Atlantic
Margins. Our key assets include production offshore Ghana,
Equatorial Guinea and the U.S. Gulf of Mexico, as well as a
world-class gas development offshore Mauritania and Senegal. We
also maintain a sustainable proven basin exploration program in
Equatorial Guinea, Ghana and the U.S. Gulf of Mexico. Kosmos is
listed on the New York Stock Exchange and London Stock Exchange and
is traded under the ticker symbol KOS. As an ethical and
transparent company, Kosmos is committed to doing things the right
way. The Company’s Business Principles articulate our commitment to
transparency, ethics, human rights, safety and the environment.
Read more about this commitment in the Kosmos Sustainability
Report. For additional information, visit www.kosmosenergy.com.
Non-GAAP Financial Measures
EBITDAX, Adjusted net income (loss), Adjusted net income (loss)
per share, free cash flow, and net debt are supplemental non-GAAP
financial measures used by management and external users of the
Company's consolidated financial statements, such as industry
analysts, investors, lenders and rating agencies. The Company
defines EBITDAX as Net income (loss) plus (i) exploration expense,
(ii) depletion, depreciation and amortization expense, (iii) equity
based compensation expense, (iv) unrealized (gain) loss on
commodity derivatives (realized losses are deducted and realized
gains are added back), (v) (gain) loss on sale of oil and gas
properties, (vi) interest (income) expense, (vii) income taxes,
(viii) loss on extinguishment of debt, (ix) doubtful accounts
expense and (x) similar other material items which management
believes affect the comparability of operating results. The Company
defines Adjusted net income (loss) as Net income (loss) adjusted
for certain items that impact the comparability of results. The
Company defines free cash flow as net cash provided by operating
activities less Oil and gas assets, Other property, and certain
other items that may affect the comparability of results and
excludes non-recurring activity such as acquisitions, divestitures
and National Oil Company ("NOC") financing. NOC financing refers to
the amounts funded by Kosmos under the Carry Advance Agreements
that the Company has in place with the national oil companies of
each of Mauritania and Senegal related to the financing of the
respective national oil companies’ share of certain development
costs at Greater Tortue Ahmeyim. The Company defines net debt as
total long-term debt less cash and cash equivalents and total
restricted cash.
We believe that EBITDAX, Adjusted net income (loss), Adjusted
net income (loss) per share, free cash flow, Net debt and other
similar measures are useful to investors because they are
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in the oil and
gas sector and will provide investors with a useful tool for
assessing the comparability between periods, among securities
analysts, as well as company by company. EBITDAX, Adjusted net
income (loss), Adjusted net income (loss) per share, free cash
flow, and net debt as presented by us may not be comparable to
similarly titled measures of other companies.
This release also contains certain forward-looking non-GAAP
financial measures, including free cash flow. Due to the
forward-looking nature of the aforementioned non-GAAP financial
measures, management cannot reliably or reasonably predict certain
of the necessary components of the most directly comparable
forward-looking GAAP measures, such as future impairments and
future changes in working capital. Accordingly, we are unable to
present a quantitative reconciliation of such forward-looking
non-GAAP financial measures to their most directly comparable
forward-looking GAAP financial measures. Amounts excluded from
these non-GAAP measures in future periods could be significant.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that Kosmos
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Kosmos’ estimates and
forward-looking statements are mainly based on its current
expectations and estimates of future events and trends, which
affect or may affect its businesses and operations. Although Kosmos
believes that these estimates and forward-looking statements are
based upon reasonable assumptions, they are subject to several
risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will”
or other similar words are intended to identify forward-looking
statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
Kosmos (including, but not limited to, the impact of the COVID-19
pandemic), which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements.
Further information on such assumptions, risks and uncertainties is
available in Kosmos’ Securities and Exchange Commission (“SEC”)
filings. Kosmos undertakes no obligation and does not intend to
update or correct these forward-looking statements to reflect
events or circumstances occurring after the date of this press
release, except as required by applicable law. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
Kosmos Energy Ltd.
Consolidated Statements of
Operations
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Revenues and other income:
Oil and gas revenue
$
273,255
$
620,368
$
667,495
$
1,279,383
Gain on sale of assets
—
471
—
471
Other income, net
60
43
(313
)
95
Total revenues and other income
273,315
620,882
667,182
1,279,949
Costs and expenses:
Oil and gas production
63,579
90,189
147,515
214,892
Facilities insurance modifications,
net
—
(384
)
—
6,752
Exploration expenses
11,015
89,565
23,015
101,441
General and administrative
23,444
24,624
52,611
50,417
Depletion, depreciation and
amortization
89,913
121,679
199,287
280,648
Interest and other financing costs,
net
24,371
29,382
48,939
62,521
Derivatives, net
3,031
75,204
(3,809
)
357,376
Other expenses, net
4,779
(3,528
)
6,809
(1,102
)
Total costs and expenses
220,132
426,731
474,367
1,072,945
Income before income taxes
53,183
194,151
192,815
207,004
Income tax expense
29,838
76,978
86,161
88,431
Net income
$
23,345
$
117,173
$
106,654
$
118,573
Net income per share:
Basic
$
0.05
$
0.26
$
0.23
$
0.26
Diluted
$
0.05
$
0.25
$
0.22
$
0.25
Weighted average number of shares used to
compute net income per share:
Basic
459,984
455,512
459,155
454,811
Diluted
479,016
475,645
478,902
473,471
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
June 30,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
85,729
$
183,405
Receivables, net
98,498
119,735
Other current assets
235,321
165,581
Total current assets
419,548
468,721
Property and equipment, net
4,077,821
3,842,647
Other non-current assets
310,250
268,620
Total assets
$
4,807,619
$
4,579,988
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
263,753
$
212,275
Accrued liabilities
243,880
325,206
Current maturities of long-term debt
15,000
30,000
Other current liabilities
1,097
6,773
Total current liabilities
523,730
574,254
Long-term liabilities:
Long-term debt, net
2,358,689
2,195,911
Deferred tax liabilities
459,417
468,445
Other non-current liabilities
561,879
553,530
Total long-term liabilities
3,379,985
3,217,886
Total stockholders’ equity
903,904
787,848
Total liabilities and stockholders’
equity
$
4,807,619
$
4,579,988
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Operating activities:
Net income
$
23,345
$
117,173
$
106,654
$
118,573
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
92,443
124,270
204,368
285,909
Deferred income taxes
(997
)
2,360
(9,029
)
(83,432
)
Unsuccessful well costs and leasehold
impairments
9
71,261
1,313
73,662
Change in fair value of derivatives
2,118
76,568
(220
)
367,374
Cash settlements on derivatives,
net(1)
725
(130,568
)
(10,632
)
(223,618
)
Equity-based compensation
11,105
8,737
21,198
17,129
Gain on sale of assets
—
(471
)
—
(471
)
Loss on extinguishment of debt
—
—
—
192
Other
799
(1,454
)
(1,474
)
(3,742
)
Changes in assets and liabilities:
Net changes in working capital
(111,437
)
10,682
(90,215
)
56,610
Net cash provided by operating
activities
18,110
278,558
221,963
608,186
Investing activities
Oil and gas assets
(193,182
)
(211,953
)
(416,867
)
(320,787
)
Acquisition of oil and gas properties
—
(21,205
)
—
(21,205
)
Proceeds on sale of assets
—
471
—
118,693
Notes receivable from partners
(17,624
)
(11,428
)
(33,295
)
(11,428
)
Net cash used in investing activities
(210,806
)
(244,115
)
(450,162
)
(234,727
)
Financing activities:
Borrowings under long-term debt
150,000
—
150,000
—
Payments on long-term debt
—
(207,500
)
(7,500
)
(315,000
)
Tax withholdings on restricted stock
units
(1
)
—
(11,811
)
(2,753
)
Dividends
(1
)
(13
)
(166
)
(655
)
Deferred financing costs
—
(550
)
—
(6,288
)
Net cash provided by (used in) financing
activities
149,998
(208,063
)
130,523
(324,696
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(42,698
)
(173,620
)
(97,676
)
48,763
Cash, cash equivalents and restricted cash
at beginning of period
131,843
397,279
186,821
174,896
Cash, cash equivalents and restricted cash
at end of period
$
89,145
$
223,659
$
89,145
$
223,659
_____________________________________ (1)
Cash settlements on commodity hedges were
$(4.0) million and $(129.3) million for the three months ended June
30, 2023 and 2022, respectively, and $(8.2) million and $(212.9)
million for the six months ended June 30, 2023 and 2022.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three Months Ended
Six months ended
Twelve Months Ended
June 30, 2023
June 30, 2022
June 30, 2023
June 30, 2022
June 30, 2023
Net income
$
23,345
$
117,173
$
106,654
$
118,573
$
214,632
Exploration expenses
11,015
89,565
23,015
101,441
55,804
Facilities insurance modifications,
net
—
(384
)
—
6,752
(509
)
Depletion, depreciation and
amortization
89,913
121,679
199,287
280,648
416,895
Impairment of long-lived assets
—
—
—
—
449,969
Equity-based compensation
11,105
8,737
21,198
17,129
38,615
Derivatives, net
3,031
75,204
(3,809
)
357,376
(100,293
)
Cash settlements on commodity
derivatives
(4,030
)
(129,333
)
(8,213
)
(212,896
)
(123,189
)
Other expenses, net(2)
4,779
(3,528
)
6,809
(1,102
)
(1,144
)
Gain on sale of assets
—
(471
)
—
(471
)
(50,000
)
Interest and other financing costs,
net
24,371
29,382
48,939
62,521
104,678
Income tax expense
29,838
76,978
86,161
88,431
108,246
EBITDAX
$
193,367
$
385,002
$
480,041
$
818,402
$
1,113,704
Sold Ghana & acquired Kodiak interests
EBITDAX Adj(1)
—
2,969
—
(15,723
)
—
Pro Forma EBITDAX
$
193,367
$
387,971
$
480,041
$
802,679
$
1,113,704
_______________________________________ (1)
Adjustment to present Pro Forma EBITDAX
for the impact of the revenues less direct operating expenses from
the sold Ghana interest associated with the Ghana pre-emption and
the acquired Kodiak interest, for the respective period. The
results are presented on the accrual basis of accounting, however
as the acquired properties were not accounted for or operated as a
separate segment, division, or entity, complete financial
statements under U.S. generally accepted accounting principles are
not available or practicable to produce. The results are not
intended to be a complete presentation of the results of operations
of the acquired properties and may not be representative of future
operations as they do not include general and administrative
expenses; interest expense; depreciation, depletion, and
amortization; provision for income taxes; and certain other
revenues and expenses not directly associated with revenues from
the sale of crude oil and natural gas.
(2)
Commencing in the first quarter of 2023,
the Company combined the lines for "Restructuring and other" and
"Other, net" in its presentation of EBITDAX into a single line
titled "Other expenses, net."
The following table presents our net debt as of June 30, 2023
and December 31, 2022:
June 30,
December 31,
2023
2022
Total long-term debt
$
2,412,500
$
2,270,000
Cash and cash equivalents
85,729
183,405
Total restricted cash
3,416
3,416
Net debt
$
2,323,355
$
2,083,179
Kosmos Energy Ltd.
Adjusted Net Income
(Loss)
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net income
$
23,345
$
117,173
$
106,654
$
118,573
Derivatives, net
3,031
75,204
(3,809
)
357,376
Cash settlements on commodity
derivatives
(4,030
)
(129,333
)
(8,213
)
(212,896
)
Gain on sale of assets
—
(471
)
—
(471
)
Facilities insurance modifications,
net
—
(384
)
—
6,752
Other, net(2)
4,838
(3,403
)
6,737
(1,072
)
Impairment of suspended well costs
—
64,249
—
64,249
Loss on extinguishment of debt
—
—
—
192
Total selected items before tax
3,839
5,862
(5,285
)
214,130
Income tax (expense) benefit on
adjustments(1)
277
17,163
3,785
(46,816
)
Impact of valuation adjustments and U.S.
tax law changes
—
(8,096
)
—
(11,391
)
Adjusted net income
$
27,461
132,102
105,154
274,496
Net income per diluted share
$
0.05
$
0.25
$
0.22
$
0.25
Derivatives, net
0.01
0.16
(0.01
)
0.75
Cash settlements on commodity
derivatives
(0.01
)
(0.27
)
(0.02
)
(0.45
)
Gain on sale of assets
—
—
—
—
Facilities insurance modifications,
net
—
—
—
0.01
Other, net(2)
0.01
(0.01
)
0.01
—
Impairment of suspended well costs
—
0.14
—
0.14
Loss on extinguishment of debt
—
—
—
—
Total selected items before tax
0.01
0.02
(0.02
)
0.45
Income tax (expense) benefit on
adjustments(1)
—
0.03
0.02
(0.10
)
Impact of valuation adjustments and U.S.
tax law changes
—
(0.02
)
—
(0.02
)
Adjusted net income per diluted share
$
0.06
$
0.28
$
0.22
$
0.58
Weighted average number of diluted
shares
479,016
475,645
478,902
473,471
_____________________________________ (1)
Income tax expense is calculated at the
statutory rate in which such item(s) reside. Statutory rates for
the U.S. and Ghana/Equatorial Guinea are 21% and 35%,
respectively.
(2)
Commencing in the first quarter of 2023,
the Company combined the lines for "Restructuring and other" and
"Other, net" in its presentation of Adjusted net income into a
single line titled "Other, net."
Kosmos Energy Ltd.
Free Cash Flow
(In thousands,
unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Reconciliation of free cash
flow:
Net cash provided by operating
activities
$
18,110
$
278,558
$
221,963
$
608,186
Net cash used for oil and gas assets -
base business
(117,772
)
(68,163
)
(214,946
)
(154,088
)
Base business free cash flow
(99,662
)
210,395
7,017
454,098
Net cash used for oil and gas assets -
Mauritania/Senegal
(75,410
)
(143,790
)
(201,921
)
(166,699
)
Free cash flow
$
(175,072
)
$
66,605
$
(194,904
)
$
287,399
____________________________________
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel
and per barrel data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net Volume Sold
Oil (MMBbl)
3.547
5.339
8.492
11.569
Gas (MMcf)
2.774
1.252
5.535
2.256
NGL (MMBbl)
0.107
0.129
0.203
0.246
Total (MMBoe)
4.116
5.677
9.618
12.191
Total (Mboepd)
45.234
62.381
53.135
67.354
Revenue
Oil sales
$
267,149
$
604,668
$
655,248
$
1,254,676
Gas sales
3,568
10,271
7,434
15,207
NGL sales
2,538
5,429
4,813
9,500
Total oil and gas revenue
273,255
620,368
667,495
1,279,383
Cash settlements on commodity
derivatives
(4,030
)
(129,333
)
(8,213
)
(212,896
)
Realized revenue
$
269,225
$
491,035
$
659,282
$
1,066,487
Oil and Gas Production Costs
$
63,579
$
90,189
$
147,515
$
214,892
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl
$
75.32
$
113.25
$
77.16
$
108.45
Average gas sales price per Mcf
1.29
8.20
1.34
6.74
Average NGL sales price per Bbl
23.72
42.09
23.71
38.62
Average total sales price per Boe
66.38
109.28
69.40
104.94
Cash settlements on commodity derivatives
per Boe
(0.98
)
(22.78
)
(0.85
)
(17.46
)
Realized revenue per Boe
65.40
86.50
68.55
87.48
Oil and gas production costs per
Boe
$
15.45
$
15.88
$
15.34
$
17.63
____________________________________ (1)
Cash settlements on commodity derivatives
are only related to Kosmos and are calculated on a per barrel basis
using Kosmos' Net Oil Volumes Sold.
Kosmos was underlifted by approximately 943.9 thousand barrels
as of June 30, 2023.
Kosmos Energy Ltd.
Hedging Summary
As of June 30, 2023(1)
(Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2023:
Three-way collars
Dated Brent
3,000
$
71.67
$
49.17
$
107.58
Two-way collars
Dated Brent
2,500
72.00
—
112.00
2024:
Three-way collars
Dated Brent
4,000
70.00
45.00
96.25
Two-way collars
Dated Brent
2,000
65.00
—
85.00
_______________________________________ (1)
Please see the Company’s filed 10-Q for
additional disclosure on hedging material. Includes hedging
position as of June 30, 2023 and hedges put in place through filing
date.
(2)
“Floor” represents floor price for collars
and strike price for purchased puts.
2023 Guidance
3Q 2023
FY 2023 Guidance
Production(1,2)
67,000 - 70,000 boe per day
65,000 - 69,000 boe per day
Opex
$20.00 - $22.00 per boe
$13.50 - $15.50 per boe
DD&A
$17.00 - $19.00 per boe
$19.00 - $21.00 per boe
G&A(~60% cash)
$28 - $30 million
$110 - $120 million
Exploration Expense(3)
~$10 million
~$40 million
Net Interest Expense(4)
~$25 million / quarter
Tax
$9.00 - $11.00 per boe
$10.00 - $12.00 per boe
Capital Expenditure(5)
$175 - $200 million
$700 - $750 million
______________________________________
Note: Ghana / Equatorial Guinea revenue
calculated by number of cargos.
(1)
3Q 2023 cargo forecast – Ghana: 4 cargos /
Equatorial Guinea 1 cargo. FY 2023 Ghana: 14 cargos / Equatorial
Guinea 3.5 cargos. Average cargo sizes 950,000 barrels of oil.
(2)
U.S. Gulf of Mexico Production: 3Q 2023
forecast 13,500-14,500 boe per day. FY2023: 14,000-15,500 boe per
day. Oil/Gas/NGL split for 2023: ~81%/~12%/~7%.
(3)
Excludes leasehold impairments and dry
hole costs
(4)
Includes impact of capitalized interest
through year-end 2023 of ~$30 million/quarter
(5)
Excludes acquisitions/sales of oil &
gas assets
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230806109164/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
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