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