Kosmos Energy Announces Third Quarter 2024 Results
THIRD QUARTER 2024 HIGHLIGHTS
- Net Production(2): ~65,400 barrels of oil equivalent per day (boepd), with sales of ~63,200 boepd
-
Revenues:
$408 million , or$70.18 per boe (excluding the impact of derivative cash settlements)
-
Production expense:
$133 million ($16.14 per boe excluding$39.7 million of production expenses associated with the Greater Tortue Ahmeyim (GTA) project)
-
Capital expenditures:
$210 million
-
Successfully issued
$500 million of new Senior Notes due 2031, with proceeds refinancing near-term bond maturities
-
In the US
Gulf of Mexico , achieved first oil at Winterfell, successfully completed the operated Kodiak-3 workover and the startup of the Odd Job subsea pump
-
Post quarter end, in
Equatorial Guinea startup of the first infill well, with gross production now around 30,000 barrels of oil per day (bopd)
Commenting on the Company’s third quarter 2024 performance, Chairman and Chief Executive Officer
Looking ahead to 2025, we are prioritizing cash generation from the business through disciplined capital allocation, and expect to use cash generated to de-lever the balance sheet. As a result, we are reducing our previously communicated 2025 capex guidance from
FINANCIAL UPDATE
In September, Kosmos successfully issued
In
Kosmos exited the third quarter of 2024 with approximately
Net capital expenditure for the third quarter of 2024 was
For 2025, the Company is focused on maximizing cash generation through disciplined capital allocation. As a result, the Company expects total capital expenditure for 2025, to be approximately
The Company generated net cash provided by operating activities of approximately
OPERATIONAL UPDATE
Production
Total net production(2) in the third quarter of 2024 averaged approximately 65,400 boepd, representing a ~5% increase compared to the prior quarter. This growth reflects higher production in the US
Production in
At Jubilee (38.6% working interest), oil production in the third quarter averaged approximately 87,600 bopd gross with year-to-date production averaging approximately 89,300 bopd gross. Voidage replacement during the third quarter was approximately 90%, below target as a result of lower than planned power generation uptime. Water injection has been restored to record levels of around 300,000 barrels of water per day and should enhance voidage replacement. Jubilee FPSO reliability remains high with uptime approximately 99% for the third quarter.
The three year drilling campaign in
In the third quarter, Jubilee gas production net to Kosmos was approximately 4,700 boepd. As previously communicated, the onshore gas processing plant that receives Jubilee gas was offline for approximately two weeks for planned maintenance during the quarter. Gas production is now back at approximately 6,000 boepd net to Kosmos.
At TEN (20.4% working interest), oil production averaged approximately 18,500 bopd gross for the third quarter, slightly above expectations. Uptime on the TEN FPSO was approximately 99% for the third quarter.
Production in the
The first two wells at Winterfell (25% working interest) were brought online in early July with the third development well online in early October, successfully confirming the extension of the main Winterfell reservoir to the south and ~20,000 boepd gross production capacity from the first three wells. Shortly after startup of the third well, production at the field was curtailed due to sand production from the third well seen at the production facility. We are currently working with the operator to restart production from the first two wells (~13,000 boepd gross) and to evaluate options to remediate the third well.
Kosmos-operated production enhancement projects for 2024 concluded in July, with the successful completion of the Kodiak-3 well workover and startup of the Odd Job subsea pump project, both outperforming forecasts.
Current production in the
On Tiberius, Kosmos (50% working interest and operator) and Occidental (50% working interest) have agreed to defer project sanction to the second half of 2025 to prioritize cash generation in 2025. Kosmos continues to progress the farm down of the field with good levels of interest. Estimated gross resource at Tiberius is approximately 100 million boe.
Production in
The Noble Venturer rig arrived on location in July and resumed the two well infill campaign to be followed by drilling the Akeng Deep ILX prospect. Early in the fourth quarter, the rig successfully completed the first infill well at Ceiba and achieved first oil in mid-October, approximately two months later than originally planned. Drilling activity has commenced on the second infill well which is expected online later this month. Following completion of the infill campaign, the rig is contracted to drill the Kosmos-operated Akeng Deep ILX prospect in Block S, with results expected around the end of the year.
The Greater Tortue Ahmeyim liquefied natural gas (LNG) project continues to make good progress. The following milestones have been achieved:
- Drilling: The first batch of four wells has been completed with expected production capacity significantly higher than is required for first gas.
-
Hub Terminal :The Hub Terminal has been handed over to operations.
- Subsea: The subsea workscope for first gas is mechanically complete.
- FPSO: Ready for startup shortly with first gas expected thereafter.
- FLNG: Cool down and commissioning of the FLNG vessel has commenced with first LNG expected around the end of the fourth quarter of 2024.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure.
(2) Production means net entitlement volumes. In
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss third quarter 2024 financial and operating results today,
About
Kosmos is a full-cycle, deepwater, independent oil and gas exploration and production company focused along the offshore Atlantic Margins. Our key assets include production offshore
Non-GAAP Financial Measures
EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines EBITDAX as Net income (loss) plus (i) exploration expense, (ii) depletion, depreciation and amortization expense, (iii) equity based compensation expense, (iv) unrealized (gain) loss on commodity derivatives (realized losses are deducted and realized gains are added back), (v) (gain) loss on sale of oil and gas properties, (vi) interest (income) expense, (vii) income taxes, (viii) debt modifications and extinguishments, (ix) doubtful accounts expense and (x) similar other material items which management believes affect the comparability of operating results. The Company defines Adjusted net income (loss) as Net income (loss) adjusted for certain items that impact the comparability of results. The Company defines free cash flow as net cash provided by operating activities less Oil and gas assets, Other property, and certain other items that may affect the comparability of results and excludes non-recurring activity such as acquisitions, divestitures and
We believe that EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, Net debt and other similar measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the oil and gas sector and will provide investors with a useful tool for assessing the comparability between periods, among securities analysts, as well as company by company. EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt as presented by us may not be comparable to similarly titled measures of other companies.
This release also contains certain forward-looking non-GAAP financial measures, including free cash flow. Due to the forward-looking nature of the aforementioned non-GAAP financial measures, management cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Amounts excluded from these non-GAAP measures in future periods could be significant.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’
|
Consolidated Statements of Operations (In thousands, except per share amounts, unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Revenues and other income: |
|
|
|
|
|
|
|
|
||||||||
|
Oil and gas revenue |
|
$ |
407,794 |
|
|
$ |
526,348 |
|
$ |
1,277,797 |
|
$ |
1,193,843 |
|
||
|
Other income, net |
|
|
37 |
|
|
|
198 |
|
|
109 |
|
|
(115 |
) |
||
|
Total revenues and other income |
|
|
407,831 |
|
|
|
526,546 |
|
|
1,277,906 |
|
|
1,193,728 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Oil and gas production |
|
|
133,471 |
|
|
|
138,782 |
|
|
377,822 |
|
|
286,297 |
|
||
|
Exploration expenses |
|
|
14,697 |
|
|
|
10,290 |
|
|
39,992 |
|
|
33,305 |
|
||
|
General and administrative |
|
|
23,298 |
|
|
|
25,120 |
|
|
76,724 |
|
|
77,731 |
|
||
|
Depletion, depreciation and amortization |
|
|
120,728 |
|
|
|
132,347 |
|
|
311,750 |
|
|
331,634 |
|
||
|
Interest and other financing costs, net |
|
|
22,112 |
|
|
|
25,440 |
|
|
75,839 |
|
|
74,379 |
|
||
|
Derivatives, net |
|
|
(15,254 |
) |
|
|
45,971 |
|
|
5,716 |
|
|
42,162 |
|
||
|
Other expenses, net |
|
|
2,227 |
|
|
|
11,055 |
|
|
6,418 |
|
|
17,864 |
|
||
|
Total costs and expenses |
|
|
301,279 |
|
|
|
389,005 |
|
|
894,261 |
|
|
863,372 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income before income taxes |
|
|
106,552 |
|
|
|
137,541 |
|
|
383,645 |
|
|
330,356 |
|
||
|
Income tax expense |
|
|
61,578 |
|
|
|
52,356 |
|
|
187,215 |
|
|
138,517 |
|
||
|
Net income |
|
$ |
44,974 |
|
|
$ |
85,185 |
|
$ |
196,430 |
|
$ |
191,839 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income per share: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
0.10 |
|
|
$ |
0.19 |
|
$ |
0.42 |
|
$ |
0.42 |
|
||
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.18 |
|
$ |
0.41 |
|
$ |
0.40 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of shares used to compute net income per share: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
471,816 |
|
|
|
460,108 |
|
|
470,491 |
|
|
459,477 |
|
||
|
Diluted |
|
|
479,190 |
|
|
|
481,099 |
|
|
478,701 |
|
|
479,738 |
|
||
|
Condensed Consolidated Balance Sheets (In thousands, unaudited) |
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|
|
|
|
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||||
|
|
|
2024 |
|
2023 |
||||
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Assets |
|
|
|
|
||||
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Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
51,581 |
|
$ |
95,345 |
||
|
Receivables, net |
|
|
161,967 |
|
|
|
120,733 |
|
|
Other current assets |
|
|
207,540 |
|
|
|
206,635 |
|
|
Total current assets |
|
|
421,088 |
|
|
|
422,713 |
|
|
|
|
|
|
|
||||
|
Property and equipment, net |
|
|
4,694,435 |
|
|
|
4,160,229 |
|
|
Other non-current assets |
|
|
355,423 |
|
|
|
355,192 |
|
|
Total assets |
|
$ |
5,470,946 |
|
|
$ |
4,938,134 |
|
|
|
|
|
|
|
||||
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
$ |
284,954 |
|
|
$ |
248,912 |
|
|
Accrued liabilities |
|
|
277,752 |
|
|
|
302,815 |
|
|
Other current liabilities |
|
|
527 |
|
|
|
3,103 |
|
|
Total current liabilities |
|
|
563,233 |
|
|
|
554,830 |
|
|
|
|
|
|
|
||||
|
Long-term liabilities: |
|
|
|
|
||||
|
Long-term debt, net |
|
|
2,691,912 |
|
|
|
2,390,914 |
|
|
Deferred tax liabilities |
|
|
376,885 |
|
|
|
363,918 |
|
|
Other non-current liabilities |
|
|
642,016 |
|
|
|
596,135 |
|
|
Total long-term liabilities |
|
|
3,710,813 |
|
|
|
3,350,967 |
|
|
|
|
|
|
|
||||
|
Total stockholders’ equity |
|
|
1,196,900 |
|
|
|
1,032,337 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
5,470,946 |
|
|
$ |
4,938,134 |
|
|
Condensed Consolidated Statements of Cash Flow (In thousands, unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating activities: |
|
|
|
|
|
|
|
|
||||||||
|
Net income |
|
$ |
44,974 |
|
|
$ |
85,185 |
|
|
$ |
196,430 |
|
|
$ |
191,839 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
|
Depletion, depreciation and amortization (including deferred financing costs) |
|
|
122,887 |
|
|
|
134,809 |
|
|
|
318,564 |
|
|
|
339,177 |
|
|
Deferred income taxes |
|
|
6,081 |
|
|
|
(28,452 |
) |
|
|
11,280 |
|
|
|
(37,481 |
) |
|
Unsuccessful well costs and leasehold impairments |
|
|
1,187 |
|
|
|
931 |
|
|
|
3,872 |
|
|
|
2,244 |
|
|
Change in fair value of derivatives |
|
|
(9,298 |
) |
|
|
52,687 |
|
|
|
11,808 |
|
|
|
52,467 |
|
|
Cash settlements on derivatives, net(1) |
|
|
(7,388 |
) |
|
|
(10,846 |
) |
|
|
(14,754 |
) |
|
|
(21,478 |
) |
|
Equity-based compensation |
|
|
10,034 |
|
|
|
10,580 |
|
|
|
27,849 |
|
|
|
31,778 |
|
|
Debt modifications and extinguishments |
|
|
2,263 |
|
|
|
1,503 |
|
|
|
24,794 |
|
|
|
1,503 |
|
|
Other |
|
|
(138 |
) |
|
|
4,021 |
|
|
|
(12,126 |
) |
|
|
2,547 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
|
Net changes in working capital |
|
|
(164,320 |
) |
|
|
(987 |
) |
|
|
(65,215 |
) |
|
|
(91,202 |
) |
|
Net cash provided by operating activities |
|
|
6,282 |
|
|
|
249,431 |
|
|
|
502,502 |
|
|
|
471,394 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Investing activities |
|
|
|
|
|
|
|
|
||||||||
|
Oil and gas assets |
|
|
(219,245 |
) |
|
|
(195,047 |
) |
|
|
(772,238 |
) |
|
|
(611,914 |
) |
|
Notes receivable from partners |
|
|
— |
|
|
|
(13,337 |
) |
|
|
(2,575 |
) |
|
|
(46,632 |
) |
|
Net cash used in investing activities |
|
|
(219,245 |
) |
|
|
(208,384 |
) |
|
|
(774,813 |
) |
|
|
(658,546 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Financing activities: |
|
|
|
|
|
|
|
|
||||||||
|
Borrowings under long-term debt |
|
|
100,000 |
|
|
|
150,000 |
|
|
|
275,000 |
|
|
|
300,000 |
|
|
Payments on long-term debt |
|
|
— |
|
|
|
(137,500 |
) |
|
|
(350,000 |
) |
|
|
(145,000 |
) |
|
Net proceeds from issuance of senior notes |
|
|
494,855 |
|
|
|
— |
|
|
|
885,285 |
|
|
|
— |
|
|
Purchase of capped call transactions |
|
|
— |
|
|
|
— |
|
|
|
(49,800 |
) |
|
|
— |
|
|
Repurchase of senior notes |
|
|
(499,515 |
) |
|
|
— |
|
|
|
(499,515 |
) |
|
|
— |
|
|
Net proceeds from issuance of common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(166 |
) |
|
Other financing costs |
|
|
(4,609 |
) |
|
|
(534 |
) |
|
|
(35,534 |
) |
|
|
(12,345 |
) |
|
Net cash provided by financing activities |
|
|
90,731 |
|
|
|
11,966 |
|
|
|
225,436 |
|
|
|
142,489 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(122,232 |
) |
|
|
53,013 |
|
|
|
(46,875 |
) |
|
|
(44,663 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
174,118 |
|
|
|
89,145 |
|
|
|
98,761 |
|
|
|
186,821 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
51,886 |
|
|
$ |
142,158 |
|
|
$ |
51,886 |
|
|
$ |
142,158 |
|
______________________________________
| (1) |
Cash settlements on commodity hedges were |
|
EBITDAX (In thousands, unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
Nine months ended |
|
Twelve Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income |
$ |
44,974 |
|
|
$ |
85,185 |
|
|
$ |
196,430 |
|
|
$ |
191,839 |
|
|
$ |
218,111 |
|
|
Exploration expenses |
|
14,697 |
|
|
|
10,290 |
|
|
|
39,992 |
|
|
|
33,305 |
|
|
|
48,965 |
|
|
Depletion, depreciation and amortization |
|
120,728 |
|
|
|
132,347 |
|
|
|
311,750 |
|
|
|
331,634 |
|
|
|
425,043 |
|
|
Impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
222,278 |
|
|
Equity-based compensation |
|
10,034 |
|
|
|
10,580 |
|
|
|
27,849 |
|
|
|
31,778 |
|
|
|
38,764 |
|
|
Derivatives, net |
|
(15,254 |
) |
|
|
45,971 |
|
|
|
5,716 |
|
|
|
42,162 |
|
|
|
(25,318 |
) |
|
Cash settlements on commodity derivatives |
|
(2,532 |
) |
|
|
(4,130 |
) |
|
|
(9,956 |
) |
|
|
(12,343 |
) |
|
|
(14,061 |
) |
|
Other expenses, net(1) |
|
2,227 |
|
|
|
11,055 |
|
|
|
6,418 |
|
|
|
17,864 |
|
|
|
12,210 |
|
|
Interest and other financing costs, net |
|
22,112 |
|
|
|
25,440 |
|
|
|
75,839 |
|
|
|
74,379 |
|
|
|
97,364 |
|
|
Income tax expense |
|
61,578 |
|
|
|
52,356 |
|
|
|
187,215 |
|
|
|
138,517 |
|
|
|
206,913 |
|
|
EBITDAX |
$ |
258,564 |
|
|
$ |
369,094 |
|
|
$ |
841,253 |
|
|
$ |
849,135 |
|
|
$ |
1,230,269 |
|
______________________________________
| (1) |
Commencing in the first quarter of 2023, the Company combined the lines for "Restructuring and other" and "Other, net" in its presentation of EBITDAX into a single line titled "Other expenses, net." |
The following table presents our net debt as of
|
|
|
|
|
|
||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Total long-term debt |
|
$ |
2,750,274 |
|
$ |
2,425,000 |
||
|
Cash and cash equivalents |
|
|
51,581 |
|
|
|
95,345 |
|
|
Total restricted cash |
|
|
305 |
|
|
|
3,416 |
|
|
Net debt |
|
$ |
2,698,388 |
|
|
$ |
2,326,239 |
|
|
Adjusted Net Income (Loss) (In thousands, except per share amounts, unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income |
$ |
44,974 |
|
|
$ |
85,185 |
|
|
$ |
196,430 |
|
|
$ |
191,839 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Derivatives, net |
|
(15,254 |
) |
|
|
45,971 |
|
|
|
5,716 |
|
|
|
42,162 |
|
|
Cash settlements on commodity derivatives |
|
(2,532 |
) |
|
|
(4,130 |
) |
|
|
(9,956 |
) |
|
|
(12,343 |
) |
|
Other, net(2) |
|
1,965 |
|
|
|
11,117 |
|
|
|
5,892 |
|
|
|
17,854 |
|
|
Debt modifications and extinguishments |
|
2,263 |
|
|
|
1,503 |
|
|
|
24,794 |
|
|
|
1,503 |
|
|
Total selected items before tax |
|
(13,558 |
) |
|
|
54,461 |
|
|
|
26,446 |
|
|
|
49,176 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income tax (expense) benefit on adjustments(1) |
|
6,186 |
|
|
|
(13,630 |
) |
|
|
2,269 |
|
|
|
(9,845 |
) |
|
Impact of valuation adjustments and other tax items |
|
— |
|
|
|
— |
|
|
|
(7,963 |
) |
|
|
— |
|
|
Adjusted net income |
$ |
37,602 |
|
|
|
126,016 |
|
|
|
217,182 |
|
|
|
231,170 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income per diluted share |
$ |
0.09 |
|
|
$ |
0.18 |
|
|
$ |
0.41 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Derivatives, net |
|
(0.03 |
) |
|
|
0.10 |
|
|
|
0.01 |
|
|
|
0.09 |
|
|
Cash settlements on commodity derivatives |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
Other, net(2) |
|
— |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
Debt modifications and extinguishments |
|
— |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
|
Total selected items before tax |
|
(0.03 |
) |
|
|
0.11 |
|
|
|
0.06 |
|
|
|
0.10 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income tax (expense) benefit on adjustments(1) |
|
0.02 |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
Impact of valuation adjustments and other tax items |
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
Adjusted net income per diluted share |
$ |
0.08 |
|
|
$ |
0.26 |
|
|
$ |
0.45 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of diluted shares |
|
479,190 |
|
|
|
481,099 |
|
|
|
478,701 |
|
|
|
479,738 |
|
______________________________________
|
(1) |
Income tax expense is calculated at the statutory rate in which such item(s) reside. Statutory rates for the |
|
(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." |
|
Free Cash Flow (In thousands, unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of free cash flow: |
|
|
|
|
|
|
|
||||||||
|
Net cash provided by operating activities |
$ |
6,282 |
|
|
$ |
249,431 |
|
|
$ |
502,502 |
|
|
$ |
471,394 |
|
|
Net cash used for oil and gas assets - base business |
|
(108,441 |
) |
|
|
(122,542 |
) |
|
|
(383,826 |
) |
|
|
(337,488 |
) |
|
Base business free cash flow |
|
(102,159 |
) |
|
|
126,889 |
|
|
|
118,676 |
|
|
|
133,906 |
|
|
Net cash used for oil and gas assets - |
|
(110,804 |
) |
|
|
(72,505 |
) |
|
|
(388,412 |
) |
|
|
(274,426 |
) |
|
Free cash flow |
$ |
(212,963 |
) |
|
$ |
54,384 |
|
|
$ |
(269,736 |
) |
|
$ |
(140,520 |
) |
______________________________________
|
Operational Summary (In thousands, except barrel and per barrel data, unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net Volume Sold |
|
|
|
|
|
|
|
||||||||
|
Oil (MMBbl) |
|
5.135 |
|
|
|
5.956 |
|
|
|
15.234 |
|
|
|
14.448 |
|
|
Gas (MMcf) |
|
3.554 |
|
|
|
4.046 |
|
|
|
11.991 |
|
|
|
9.582 |
|
|
NGL (MMBbl) |
|
0.084 |
|
|
|
0.097 |
|
|
|
0.232 |
|
|
|
0.299 |
|
|
Total (MMBoe) |
|
5.811 |
|
|
|
6.727 |
|
|
|
17.465 |
|
|
|
16.344 |
|
|
Total (Mboepd) |
|
63.167 |
|
|
|
73.123 |
|
|
|
63.739 |
|
|
|
59.868 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenue |
|
|
|
|
|
|
|
||||||||
|
Oil sales |
$ |
393,555 |
|
|
$ |
511,735 |
|
|
$ |
1,230,772 |
|
|
$ |
1,166,983 |
|
|
Gas sales |
|
12,586 |
|
|
|
13,080 |
|
|
|
42,218 |
|
|
|
20,514 |
|
|
NGL sales |
|
1,653 |
|
|
|
1,533 |
|
|
|
4,807 |
|
|
|
6,346 |
|
|
Total oil and gas revenue |
|
407,794 |
|
|
|
526,348 |
|
|
|
1,277,797 |
|
|
|
1,193,843 |
|
|
Cash settlements on commodity derivatives |
|
(2,532 |
) |
|
|
(4,130 |
) |
|
|
(9,956 |
) |
|
|
(12,343 |
) |
|
Realized revenue |
$ |
405,262 |
|
|
$ |
522,218 |
|
|
$ |
1,267,841 |
|
|
$ |
1,181,500 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil and Gas Production Costs |
$ |
133,471 |
|
|
$ |
138,782 |
|
|
$ |
377,822 |
|
|
$ |
286,297 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Sales per Bbl/Mcf/Boe |
|
|
|
|
|
|
|
||||||||
|
Average oil sales price per Bbl |
$ |
76.64 |
|
|
$ |
85.92 |
|
|
$ |
80.79 |
|
|
$ |
80.77 |
|
|
Average gas sales price per Mcf |
|
3.54 |
|
|
|
3.23 |
|
|
|
3.52 |
|
|
|
2.14 |
|
|
Average NGL sales price per Bbl |
|
19.68 |
|
|
|
15.80 |
|
|
|
20.72 |
|
|
|
21.22 |
|
|
Average total sales price per Boe |
|
70.18 |
|
|
|
78.24 |
|
|
|
73.16 |
|
|
|
73.04 |
|
|
Cash settlements on commodity derivatives per Boe |
|
(0.44 |
) |
|
|
(0.61 |
) |
|
|
(0.57 |
) |
|
|
(0.76 |
) |
|
Realized revenue per Boe |
|
69.74 |
|
|
|
77.63 |
|
|
|
72.59 |
|
|
|
72.29 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Oil and gas production costs per Boe |
$ |
22.97 |
|
|
$ |
20.63 |
|
|
$ |
21.64 |
|
|
$ |
17.51 |
|
______________________________________
|
(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 0.1 million barrels as of |
|
|
Hedging Summary
As of (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
Weighted Average Price per Bbl |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
Index |
|
MBbl |
|
Swap |
Floor(2) |
|
Ceiling |
|||||||
|
2024: |
|
|
|
|
|
|
|
|
|
|||||||
|
Three-way collars |
|
Dated Brent |
|
2,000 |
|
$ |
— |
$ |
70.00 |
|
$ |
93.12 |
||||
|
Two-way collars |
|
Dated Brent |
|
500 |
|
|
— |
|
70.00 |
|
|
100.00 |
||||
|
2025: |
|
|
|
|
|
|
|
|
|
|||||||
|
Two-way collars 1H25 (3) |
|
Dated Brent |
|
2,000 |
|
|
— |
|
70.00 |
|
|
85.00 |
||||
|
Two-way collars FY25 |
|
Dated Brent |
|
2,000 |
|
|
— |
|
70.00 |
|
|
85.00 |
||||
|
Swaps 1H25 |
|
Dated Brent |
|
2,000 |
|
|
75.48 |
|
— |
|
|
— |
||||
______________________________________
| (1) |
Please see the Company’s filed 10-Q for additional disclosure on hedging material. Includes hedging position as of |
|
(2) |
“Floor” represents floor price for collars and strike price for purchased puts. |
|
(3) |
We entered into Dated Brent call spread contracts with a purchased price of |
|
2024 Guidance |
||
|
|
4Q 2024 |
FY 2024 Guidance |
|
|
|
|
|
Production(1,2) |
70,000 - 74,000 boe per day |
~67,000 boe per day |
|
|
|
|
|
Opex(3) |
|
|
|
|
|
|
|
DD&A |
|
|
|
|
|
|
|
G&A(~60% cash) |
|
|
|
|
|
|
|
Exploration Expense(4) |
|
|
|
|
|
|
|
Net Interest Expense(5) |
|
|
|
|
|
|
|
Tax |
|
|
|
|
|
|
|
Capital Expenditure |
|
|
______________________________________
|
Note: |
|
|
(1) |
4Q 2024 cargo forecast – |
|
(2) |
|
|
(3) |
FY 2024 opex excludes operating costs associated with GTA, which are expected to total approximately |
|
(4) |
Excludes leasehold impairments and dry hole costs |
|
(5) |
Includes impact of capitalized interest; |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241103032302/en/
Investor Relations
+44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations
+1-214-445-9674
tgolembeski@kosmosenergy.com
Source: