Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE: KOS)
announced today its financial and operating results for the second
quarter of 2021. For the quarter, the Company generated a net loss
of $57 million, or $0.14 per diluted share. When adjusted for
certain items that impact the comparability of results, the Company
generated an adjusted net loss(1) of $10 million, or $0.03 per
diluted share for the second quarter of 2021.
SECOND QUARTER 2021 HIGHLIGHTS
- Net Production(2): 51,600 barrels of oil equivalent per day
(boepd) with sales of 66,200 boepd, resulting in a slight net
overlift position
- Post quarter end, successful completion of the Greater Tortue
Ahmeyim (GTA) floating production, storage and offloading vessel
(FPSO) sale and lease back transaction
- Successful reserve-based lending (RBL) amendment and
extension
- Revenues: $384 million, or $63.80 per boe (excluding the impact
of derivative cash settlements)
- Production expense: $116 million, or $19.24 per boe
- General and administrative expenses: $22 million, $14 million
cash expense and $8 million non-cash
- Capital expenditures:
- $68 million Base Business
- $83 million Mauritania and Senegal
- Net cash provided by operating activities: $289 million; Free
cash flow(1): $115 million
Commenting on the Company’s second quarter 2021 performance,
Chairman and Chief Executive Officer Andrew G. Inglis said: “Kosmos
delivered strong free cash flow in the second quarter. Through
further debt reduction and EBITDAX growth, we expect leverage to
continue to reduce through year-end 2021 and into 2022.
With strong cash generation, the successful RBL extension and
the recently completed GTA FPSO transaction, Kosmos’ financial
position has materially improved and we remain well positioned to
execute our remaining financing plans later this year.
Operationally, we remain on track to grow production towards our
year-end exit target of 60,000 boepd through our active infill
drilling program.
With cash generative assets, a solid financial position and
rising production, Kosmos is well positioned to generate
significant shareholder value through the second half of the year
and into 2022.”
FINANCIAL UPDATE
In May 2021, Kosmos successfully completed an amendment and
restatement of the RBL facility in conjunction with the spring
redetermination. The amendment extended the facility by two years,
with a final maturity of March 2027 and reduced the facility size
to $1.25 billion. The borrowing base was finalized, with a more
conservative price deck, at approximately $1.24 billion with $1.0
billion outstanding as of June 30, 2021.
The base business net capital expenditure for the second quarter
of 2021 was approximately $68 million, in-line with Company
guidance. Net capital expenditure related to Mauritania and Senegal
in the second quarter was $83 million.
Kosmos exited the second quarter of 2021 with $2.1 billion of
net debt(1) and available liquidity of approximately $0.8 billion.
The decrease in net debt in the quarter was primarily driven by
increased cash generation from higher sales volumes and improving
realized oil prices.
OPERATIONAL UPDATE
Production
Total net production(2) in the second quarter of 2021 averaged
approximately 51,600 boepd.
Ghana
Production in Ghana averaged approximately 21,900 barrels of oil
per day (bopd) net in the second quarter of 2021. As forecast,
Kosmos lifted three cargos from Ghana during the second
quarter.
At Jubilee, production averaged approximately 70,900 bopd gross
during the quarter. At TEN, production averaged approximately
35,000 bopd gross for the second quarter.
The first two wells in our four-well campaign were drilled in
the quarter with the first Jubilee producer well (J-56P) completed
and now online with Jubilee currently producing around 80,000 bopd.
The Jubilee injector well (J-55W) is expected online later this
quarter, which should further increase production.
The rig is then scheduled to drill and complete a TEN gas
injector well and a second Jubilee producer well later in the year
with the Jubilee producer well expected online around the end of
the year.
The reliability of the Ghana production facilities continues to
improve, with uptime of the Jubilee and TEN FPSOs averaging about
98% year-to-date. Consistently high levels of water injection
(>200,000 barrels/day) and gas offtake from the Government of
Ghana (>110 mmscf/day) are helping to optimize reservoir
performance at Jubilee, which is expected to support long-term
production levels.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
20,400 boepd net (82% oil) during the second quarter.
In April, the Kodiak-3 infill well was brought online with one
of two zones intermittently producing. The Company is currently
working with partners to evaluate the best intervention options to
enhance production from the well.
In late-July, Talos Energy (the operator) announced the
successful completion and start-up of the Tornado-5 infill well.
The well was expected to add around 8,000-10,000 boepd gross to
field production and is performing at the top end of expectations.
As the operator reported, injection rates in the structurally
downdip Tornado injector well were increased, now injecting at a
rate of over 30,000 barrels of water per day into the producing B-6
formation, providing pressure support to enhance overall production
and recovery efficiency.
In July, the Company commenced drilling the Zora
infrastructure-led exploration prospect located in Desoto Canyon
Block 266 (37.5% working interest). The well encountered reservoir
quality sands however did not find hydrocarbons. The well is
currently being plugged and abandoned and the well results will be
integrated into the ongoing evaluation of the surrounding area. The
company expects to record approximately $11 million of exploration
expense in the third quarter related to the well.
During the first half of the year, Kosmos worked with its
partners on an appraisal plan for Winterfell, which is expected to
begin with a well in the third quarter. The appraisal well is
planned to evaluate the adjacent fault block to the northwest of
the original discovery, which has the same seismic signature as
Winterfell, with an exploration tail into a deeper horizon. The
Winterfell discovery is located within tie back distance to several
existing and planned host facilities.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 29,100
bopd gross and 9,400 bopd net in the second quarter of 2021. As
forecast, Kosmos lifted 1.5 cargos from Equatorial Guinea during
the quarter.
The Okume upgrade project is expected to be completed in the
fourth quarter, contributing additional power, water injection and
gas lift capacity necessary for further de-bottlenecking of the
facilities and additional electrical submersible pumps (ESPs). In
April 2021, one ESP conversion was completed with additional ESP
conversions planned following completion of the Okume upgrade
project.
The first of three infill wells in the Okume Complex was spudded
in June 2021 with positive initial results. The rig will now move
to the second well location and hookup has commenced for the first
well. All three wells are expected online in the fourth quarter of
2021.
At Ceiba, a major infrastructure integrity project has been
completed, which is expected to improve reliability and allow
greater flexibility for gas lift to additional wells.
Mauritania & Senegal
The Greater Tortue Ahmeyim liquified natural gas (LNG) project
has made steady progress year-to-date with the following milestones
achieved in the second quarter and post quarter-end.
- Floating LNG vessel: The four remaining sponsons have been
integrated in the final dry dock
- FPSO: The living quarters have been installed
- Breakwater: seven caissons have now been transported offshore
with three caissons installed
- Subsea: All subsea trees have been constructed
As reported today in a separate press release, Kosmos announced
that the GTA FPSO sale and lease back transaction has been
successfully completed. Following the closing of this transaction,
the Company will now work to complete the re-financing of the
National Oil Company loans.
(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 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 2021 financial and operating results today 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 +1-877-407-3982. Callers in the
United Kingdom should call 0800 756 3429. Callers outside the
United States should dial 1-201-493-6780. 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. The
Company defines net debt as the sum of notes outstanding issued at
par and borrowings on the RBL Facility, Corporate revolver, and GoM
Term Loan less cash and cash equivalents and 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.
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,
2021
2020
2021
2020
Revenues and other income:
Oil and gas revenue
$
384,045
$
127,314
$
560,519
$
305,094
Gain on sale of assets
—
—
26
—
Other income, net
74
—
144
1
Total revenues and other income
384,119
127,314
560,689
305,095
Costs and expenses:
Oil and gas production
115,803
88,747
161,555
150,350
Facilities insurance modifications,
net
1,270
52
1,941
8,090
Exploration expenses
9,289
15,711
17,470
60,316
General and administrative
21,728
18,186
44,169
39,097
Depletion, depreciation and
amortization
151,161
121,857
227,702
215,159
Impairment of long-lived assets
—
—
—
150,820
Interest and other financing costs,
net
39,326
28,274
63,854
56,109
Derivatives, net
111,921
100,075
214,382
(35,963
)
Other expenses, net
(2,659
)
1,228
809
25,157
Total costs and expenses
447,839
374,130
731,882
669,135
Loss before income taxes
(63,720
)
(246,816
)
(171,193
)
(364,040
)
Income tax expense (benefit)
(6,533
)
(47,425
)
(23,238
)
18,118
Net loss
$
(57,187
)
$
(199,391
)
$
(147,955
)
$
(382,158
)
Net loss per share:
Basic
$
(0.14
)
$
(0.49
)
$
(0.36
)
$
(0.94
)
Diluted
$
(0.14
)
$
(0.49
)
$
(0.36
)
$
(0.94
)
Weighted average number of shares used to
compute net loss per share:
Basic
408,131
405,195
409,828
404,990
Diluted
408,131
405,195
409,828
404,990
Dividends declared per common share
$
—
$
—
$
—
$
0.0452
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
June 30,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
149,550
$
149,027
Receivables, net
89,423
78,813
Other current assets
204,493
172,451
Total current assets
443,466
400,291
Property and equipment, net
3,374,643
3,320,913
Other non-current assets
185,163
146,389
Total assets
$
4,003,272
$
3,867,593
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
272,588
$
221,430
Accrued liabilities
222,946
203,260
Current maturities of long-term debt
22,500
7,500
Other current liabilities
127,255
28,009
Total current liabilities
645,289
460,199
Long-term liabilities:
Long-term debt, net
2,223,912
2,103,931
Deferred tax liabilities
504,135
573,619
Other non-current liabilities
322,694
289,690
Total long-term liabilities
3,050,741
2,967,240
Total stockholders’ equity
307,242
440,154
Total liabilities and stockholders’
equity
$
4,003,272
$
3,867,593
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Operating activities:
Net loss
$
(57,187
)
$
(199,391
)
$
(147,955
)
$
(382,158
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
153,781
124,049
232,893
219,634
Deferred income taxes
(47,406
)
(48,527
)
(69,485
)
23,650
Unsuccessful well costs and leasehold
impairments
3,396
1,627
4,865
20,855
Impairment of long-lived assets
—
—
—
150,820
Change in fair value of derivatives
117,001
104,707
223,159
(31,615
)
Cash settlements on derivatives,
net(1)
(63,617
)
25,798
(96,615
)
34,814
Equity-based compensation
7,608
8,347
15,889
17,693
Gain on sale of assets
—
—
(26
)
—
Loss on extinguishment of debt
15,223
2,215
15,223
2,215
Other
224
2,555
(666
)
6,529
Changes in assets and liabilities:
Net changes in working capital
159,858
(67,253
)
64,973
(125,273
)
Net cash provided by (used in) operating
activities
288,881
(45,873
)
242,255
(62,836
)
Investing activities
Oil and gas assets
(161,951
)
(51,526
)
(290,399
)
(135,242
)
Other property
214
1
(140
)
(1,536
)
Proceeds on sale of assets
1,301
—
1,932
1,713
Notes receivable from partners
(13,765
)
(18,379
)
(36,181
)
(42,362
)
Net cash used in investing activities
(174,201
)
(69,904
)
(324,788
)
(177,427
)
Financing activities:
Borrowings on long-term debt
—
100,000
100,000
150,000
Payments on long-term debt
(50,000
)
—
(400,000
)
—
Advances under production prepayment
agreement
—
50,000
—
50,000
Net proceeds from issuance of senior
notes
—
—
444,375
—
Redemption of senior secured notes
—
—
—
—
Purchase of treasury stock / tax
withholdings
(19
)
—
(1,037
)
(4,947
)
Dividends
(14
)
(25
)
(444
)
(19,181
)
Deferred financing costs
(16,028
)
(136
)
(17,062
)
(136
)
Net cash provided by (used in) financing
activities
(66,061
)
149,839
125,832
175,736
Net increase (decrease) in cash, cash
equivalents and restricted cash
48,619
34,062
43,299
(64,527
)
Cash, cash equivalents and restricted cash
at beginning of period
144,444
130,757
149,764
229,346
Cash, cash equivalents and restricted cash
at end of period
$
193,063
$
164,819
$
193,063
$
164,819
____________________
(1)
Cash settlements on commodity hedges were
$(58.8) million and $30.4 million for the three months ended June
30, 2021 and 2020, respectively, and $(87.4) million and $42.4
million for the six months ended June 30, 2021 and 2020,
respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three months ended
Six months ended
Twelve Months Ended
June 30, 2021
June 30, 2020
June 30, 2021
June 30, 2020
June 30, 2021
Net loss
$
(57,187
)
$
(199,391
)
$
(147,955
)
$
(382,158
)
$
(177,383
)
Exploration expenses
9,289
15,711
17,470
60,316
41,770
Facilities insurance modifications,
net
1,270
52
1,941
8,090
7,012
Depletion, depreciation and
amortization
151,161
121,857
227,702
215,159
498,405
Impairment of long-lived assets
—
—
—
150,820
3,139
Equity-based compensation
7,608
8,347
15,889
17,693
30,902
Derivatives, net
111,921
100,075
214,382
(35,963
)
267,525
Cash settlements on commodity
derivatives
(58,823
)
30,430
(87,446
)
42,449
(132,609
)
Restructuring and other
233
(222
)
1,419
17,801
12,785
Other, net
(2,892
)
839
(610
)
3,930
5,675
Gain on sale of assets
—
—
(26
)
—
(92,189
)
Interest and other financing costs,
net
39,326
28,274
63,854
56,109
117,539
Income tax expense (benefit)
(6,533
)
(47,425
)
(23,238
)
18,118
(46,565
)
EBITDAX
195,373
$
58,547
$
283,382
$
172,364
$
536,006
Kosmos Energy Ltd.
Adjusted Net Income
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net loss
$
(57,187
)
$
(199,391
)
$
(147,955
)
$
(382,158
)
Derivatives, net
111,921
100,075
214,382
(35,963
)
Cash settlements on commodity
derivatives
(58,823
)
30,430
(87,446
)
42,449
Gain on sale of assets
—
—
(26
)
—
Facilities insurance modifications,
net
1,270
52
1,941
8,090
Impairment of long-lived assets
—
—
—
150,820
Restructuring and other
233
(222
)
1,419
17,801
Other, net
(3,110
)
839
(787
)
3,930
Loss on extinguishment of debt
15,223
2,215
15,223
2,215
Total selected items before tax
66,714
133,389
144,706
189,342
Income tax expense (benefit) on
adjustments(1)
(20,024
)
(29,031
)
(40,222
)
5,433
Impact of valuation adjustments and U.S.
tax law changes
—
—
—
26,001
Adjusted net loss
$
(10,497
)
(95,033
)
(43,471
)
(161,382
)
Net loss per diluted share
$
(0.14
)
$
(0.49
)
$
(0.36
)
$
(0.94
)
Derivatives, net
0.27
0.25
0.52
(0.09
)
Cash settlements on commodity
derivatives
(0.14
)
0.07
(0.21
)
0.10
Gain on sale of assets
—
—
—
—
Facilities insurance modifications,
net
—
—
—
0.02
Impairment of long-lived assets
—
—
—
0.37
Restructuring and other
—
—
—
0.05
Other, net
(0.01
)
—
—
0.01
Loss on extinguishment of debt
0.04
0.01
0.04
0.01
Total selected items before tax
0.16
0.33
0.35
0.47
Income tax expense (benefit) on
adjustments(1)
(0.05
)
(0.07
)
(0.10
)
0.01
Impact of valuation adjustments and U.S.
tax law changes
—
—
—
0.06
Adjusted net loss per diluted share
$
(0.03
)
$
(0.23
)
$
(0.11
)
$
(0.40
)
Weighted average number of diluted
shares
408,131
405,195
409,828
404,990
____________________
(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.
Kosmos Energy Ltd.
Free Cash Flow
(In thousands,
unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Reconciliation of net cash provided by
operating activities to free cash flow:
Net cash provided by (used in) operating
activities
$
288,881
$
(45,873
)
$
242,255
$
(62,836
)
Net cash used in investing activities -
base business
(68,845
)
(44,892
)
(116,728
)
(120,686
)
Net cash used in investing activities -
Mauritania/Senegal
(105,356
)
(25,012
)
(208,060
)
(56,741
)
Free cash flow
$
114,680
$
(115,777
)
$
(82,533
)
$
(240,263
)
Operational Summary
(In thousands, except barrel
and per barrel data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net Volume Sold
Oil (MMBbl)
5.689
5.751
8.630
9.202
Gas (MMcf)
1.221
1.303
2.547
3.284
NGL (MMBbl)
0.127
0.142
0.254
0.335
Total (MMBoe)
6.020
6.110
9.309
10.084
Total (Boepd)
66.150
67.145
51.428
55.408
Revenue
Oil sales
$
377,632
$
124,813
$
546,782
$
296,729
Gas sales
3,679
2,113
8,219
5,832
NGL sales
2,734
388
5,518
2,533
Total sales
384,045
127,314
560,519
305,094
Cash settlements on commodity
derivatives
(58,823
)
30,430
(87,446
)
42,449
Realized revenue
$
325,222
$
157,744
$
473,073
$
347,543
Oil and Gas Production Costs
$
115,803
$
88,747
$
161,555
$
150,350
Sales per Bbl/Mcf/Boe
Oil sales per Bbl
$
66.38
$
21.70
$
63.36
$
32.25
Gas sales per Mcf
3.01
1.62
3.23
1.78
NGL sales per Bbl
21.52
2.73
21.72
7.56
Total sales per Boe
63.80
20.84
60.22
30.25
Cash settlements on commodity derivatives
per oil Bbl(1)
(10.34
)
5.29
(10.13
)
4.61
Realized revenue per Boe
54.03
25.82
50.82
34.46
Oil and gas production costs per
Boe
$
19.24
$
14.53
$
17.36
$
14.91
____________________
(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 8 thousand barrels as
of June 30, 2021.
Hedging Summary
As of June 30, 2021(1)
(Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2021:
Swaps with sold puts
Dated Brent
3,000
$
53.96
$
42.92
$
—
Three-way collars
Dated Brent
1,500
40.00
32.50
53.47
Three-way collars
NYMEX WTI
500
45.00
37.50
55.00
2022:
Three-way collars
Dated Brent
2,500
54.00
42.00
74.00
Two-way collars
Dated Brent
3,000
55.00
—
76.67
____________________
(1)
Please see the Company’s filed 10-Q for
full disclosure on hedging material. Includes hedging position as
of June 30, 2021 and hedges added since quarter-end.
(2)
“Floor” represents floor price for collars
or swaps and strike price for purchased puts.
Note: Excludes 3.5 MMBbls of sold (short) calls with a
strike price of $70.09 per Bbl in 2021 and 1.6 MMBbls of sold
(short) calls with a strike price of $60.00 per Bbl in 2022.
2021 Guidance
3Q 2021
FY 2021
Production(1,2)
52,000 - 54,000 boe per day
53,000 - 57,000 boe per day
Opex
$15.00 - $17.00 per boe
$15.50 - $17.50 per boe
DD&A
$22.00 - $24.00 per boe
$23.00 - $25.00 per boe
G&A(3)
$23 - $25 million
$85 - $95 million
Exploration Expense(4)
$18 - $20 million
~$35 - $45 million
Net Interest
~$30 million per quarter
Tax
$1.00 - $3.00 per boe
Base Business Capex(5)
$225 - $275 million in FY
2021
____________________ Note: Ghana / Equatorial Guinea revenue
calculated by number of cargos.
(1)
3Q 2021 cargos forecast - Ghana: 1 cargo /
Equatorial Guinea: 0.5 cargos. FY 2021 Ghana: 8 cargos / Equatorial
Guinea 4.0 cargos. Average cargo sizes 950,000 barrels of oil.
(2)
U.S. Gulf of Mexico Production - 3Q 2021
forecast 20,000-22,000 boe per day. FY 2021: 20,000-22,000 boe per
day. Oil/Gas/NGL split for 2021: ~80%/~15%/~5%.
(3)
G&A - Approximately 60% cash.
(4)
Excludes dry hole costs (Approximately $11
million of dry hole costs associated with Zora expected in 3Q). 3Q
includes Gulf of Mexico seismic acquisition deferred from 2Q.
(5)
Excludes Mauritania and Senegal capital
expenditures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210808005020/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
Kosmos Energy (NYSE:KOS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kosmos Energy (NYSE:KOS)
Historical Stock Chart
From Sep 2023 to Sep 2024