Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today the
financial and operating results for the second quarter of 2020. For
the quarter, the Company generated a net loss of $199 million, or
$0.49 per diluted share. When adjusted for certain items that
impact the comparability of results, the Company generated an
adjusted net loss(1) of $95 million or $0.23 per diluted share for
the second quarter of 2020.
SECOND QUARTER 2020 HIGHLIGHTS
- Net Production(2) - 60,100 barrels of oil equivalent per day
(boepd) with sales of 67,100 boepd
- Realized oil and gas revenues, including the impact of hedging
program - $25.82 per boe
- Production expense - $89 million, or $14.53 per boe
- General and administrative expenses - $18 million, $10 million
cash expense and $8 million non-cash equity-based compensation
expense
- Capital expenditure - $66 million
At quarter end, the Company was in a net underlift position of
approximately 1.1 million barrels of oil.
Commenting on the company’s 2Q 2020 performance, Chairman and
Chief Executive Officer Andrew G. Inglis said: “Kosmos delivered
strong operational performance in the second quarter, despite a
challenging backdrop for our industry. Production was in line with
guidance and we are on track to deliver the cost reductions we set
out earlier in the year.
“We have added an additional source of liquidity with the
prepayment agreement, and total liquidity stood at over $600
million at the end of the second quarter. At current oil prices,
the company has reached a free cash flow inflection point and we
expect to generate positive free cash flow through the second half
of the year and into 2021.
“Looking forward, we continue to make good progress in
Mauritania & Senegal despite the COVID-19 mitigations, with
Phase 1 of the Tortue project now around 40% complete, a 7%
increase in the quarter, which supports the sell down process. We
continue to mature our exploration portfolio focusing on high
return, fast payback opportunities with several proven basin,
infrastructure-led exploration targets and a self-funded
basin-opening exploration program expected in 2021.”
FINANCIAL UPDATE
In June 2020, the Company entered into a Production Prepayment
Agreement with Trafigura Trading LLC (“Trafigura”) for up to $200
million of crude oil sales related primarily to a portion of
Kosmos' 2022 and 2023 U.S. Gulf of Mexico production. The Company
received $50 million from Trafigura under the Production Prepayment
Agreement in June, and the Company may elect for Trafigura to
advance two additional tranches of crude oil for up to $150
million, subject to finalizing additional commitments for $50
million.
Kosmos exited the second quarter of 2020 with approximately $614
million of liquidity(3) and $2.0 billion of net debt. Net debt
increased by $66 million in the second quarter, largely driven by a
build in working capital.
OPERATIONAL UPDATE
COVID-19 Update
Despite the recent stabilizing of oil prices, the COVID-19
pandemic and its economic impact continue to create a challenging
environment for the oil and gas sector. Kosmos’ response remains
focused on safe and reliable operations by protecting the health of
our employees and contractors, reducing the risk of the virus
spreading in our operations, and minimizing the impact on our
business. We are also working closely with the local communities in
the countries we operate in around the world to fight the
virus.
Production
Total net production in the second quarter of 2020 averaged
approximately 60,100 boepd(2), as expected, due to the previously
announced shut-in of some U.S. Gulf of Mexico production during May
(~6,000 boepd second quarter impact). Approximately 60% of total
production during the quarter was sold during the month of April,
which experienced particularly low oil prices and therefore had an
impact on the Company's realized oil prices for the second
quarter.
Ghana
Production in Ghana continued to be unaffected by COVID-19,
despite the previously disclosed offshore cases, and averaged
approximately 28,700 barrels of oil per day (bopd) net in the
second quarter of 2020, at the top end of guidance. As forecasted,
Kosmos lifted three cargos from Ghana during the second
quarter.
Jubilee continues to perform well with high reliability. Gross
production rates averaged approximately 90,000 bopd during the
quarter with consistent water injection and gas offtake since the
work to enhance gas handling capacity was completed during the
first quarter.
TEN production averaged approximately 50,000 bopd gross for the
second quarter. The Ntomme-09 producer well is expected to come
online shortly, which is expected to increase production rates.
Full year net production guidance in Ghana of 27,000-29,000 bopd
and ten cargos is unchanged.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
20,200 boepd net (80% oil) during the second quarter, including the
impact of approximately 6,000 boepd shut-in during the quarter.
As a result of market conditions in the second quarter, the
operator of the Delta House platform in the U.S. Gulf of Mexico
shut-in the facility during the month of May 2020 and accelerated
planned maintenance. The shut-ins were primarily limited to May
2020 and all shut-in fields were brought back online by early June
2020, allowing Kosmos to exit the second quarter at a rate of
approximately 29,000 boepd net.
Full year net production guidance in the U.S. Gulf of Mexico
remains at the low end of the of 24,000-28,000 boepd range.
Equatorial Guinea
Production in Equatorial Guinea continued to be unaffected by
COVID-19 and averaged approximately 34,000 bopd gross and 11,200
bopd net in the second quarter of 2020. Kosmos lifted 1.5 cargos
from Equatorial Guinea during the quarter, which includes half a
cargo pushed from late-March into early April, as disclosed
previously. Full year net production guidance of 11,000-13,000 bopd
and cargo guidance of 4.5 cargos is unchanged.
Mauritania & Senegal
Phase 1 of the Greater Tortue Ahmeyim project continued to
advance in the quarter despite COVID-19 mitigation measures in
Mauritania and Senegal. The project is now approximately 40%
complete. While the breakwater installation was disrupted as a
result of COVID-19, other areas of development continue to progress
well. The BP development carry is expected to cover all cash
requirements through 2020.
The planned sell down process of our interests in Mauritania and
Senegal remains ongoing.
(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. (3)
Liquidity includes additional committed prepayments under the
Production Prepayment Agreement with Trafigura.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss second
quarter 2020 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 U.S. Gulf of Mexico, as well as a world-class
gas development offshore Mauritania and Senegal. We also maintain a
sustainable exploration program balanced between proven basin
infrastructure-led exploration (Equatorial Guinea and U.S. Gulf of
Mexico), emerging basins (Mauritania, Senegal and Suriname) and
frontier basins (Namibia, Sao Tome and Principe, and South Africa).
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 2018
Corporate Responsibility 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 Facility and Corporate revolver 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,
2020
2019
2020
2019
Revenues and other income:
Oil and gas revenue
$
127,314
$
395,933
$
305,094
$
692,723
Other income, net
—
1
1
1
Total revenues and other income
127,314
395,934
305,095
692,724
Costs and expenses:
Oil and gas production
88,747
90,977
150,350
170,776
Facilities insurance modifications,
net
52
2,278
8,090
(17,743
)
Exploration expenses
15,711
29,905
60,316
60,249
General and administrative
18,186
28,072
39,097
63,980
Depletion, depreciation and
amortization
121,857
151,438
215,159
269,533
Impairment of long-lived assets
—
—
150,820
—
Interest and other financing costs,
net
28,274
59,803
56,109
94,844
Derivatives, net
100,075
(14,185
)
(35,963
)
62,900
Other expenses, net
1,228
(1,793
)
25,157
326
Total costs and expenses
374,130
346,495
669,135
704,865
Income (loss) before income taxes
(246,816
)
49,439
(364,040
)
(12,141
)
Income tax expense (benefit)
(47,425
)
32,602
18,118
23,928
Net income (loss)
$
(199,391
)
$
16,837
$
(382,158
)
$
(36,069
)
Net income (loss) per share:
Basic
$
(0.49
)
$
0.04
$
(0.94
)
$
(0.09
)
Diluted
$
(0.49
)
$
0.04
$
(0.94
)
$
(0.09
)
Weighted average number of shares used to
compute net income (loss) per share:
Basic
405,195
401,323
404,990
401,244
Diluted
405,195
408,230
404,990
401,244
Dividends declared per common share
$
—
$
0.0452
$
0.0452
$
0.0904
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
June 30,
December 31,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
164,091
$
224,502
Receivables, net
116,561
174,293
Other current assets
200,347
167,762
Total current assets
480,999
566,557
Property and equipment, net
3,378,665
3,642,332
Other non-current assets
126,827
108,343
Total assets
$
3,986,491
$
4,317,232
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
145,670
$
149,483
Accrued liabilities
203,275
380,704
Current maturities of long-term debt
56,000
—
Other current liabilities
43,974
8,914
Total current liabilities
448,919
539,101
Long-term liabilities:
Long-term debt, net
2,107,653
2,008,063
Production prepayment agreement, net
49,333
—
Deferred tax liabilities
644,091
653,221
Other non-current liabilities
282,308
275,145
Total long-term liabilities
3,083,385
2,936,429
Total stockholders’ equity
454,187
841,702
Total liabilities and stockholders’
equity
$
3,986,491
$
4,317,232
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Operating activities:
Net income (loss)
$
(199,391
)
$
16,837
$
(382,158
)
$
(36,069
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
124,049
153,740
219,634
274,222
Deferred income taxes
(48,527
)
(16,897
)
23,650
(56,730
)
Unsuccessful well costs and leasehold
impairments
1,627
1,593
20,855
7,099
Impairment of long-lived assets
—
—
150,820
—
Change in fair value of derivatives
104,707
(8,121
)
(31,615
)
65,686
Cash settlements on derivatives,
net(1)
25,798
(17,468
)
34,814
(21,044
)
Equity-based compensation
8,347
9,491
17,693
17,932
Loss on extinguishment of debt
2,215
24,794
2,215
24,794
Other
2,555
2,436
6,529
7,417
Changes in assets and liabilities:
Net changes in working capital
(67,253
)
73,332
(125,273
)
(60,917
)
Net cash provided by (used in) operating
activities
(45,873
)
239,737
(62,836
)
222,390
Investing activities
Oil and gas assets
(51,526
)
(74,891
)
(135,242
)
(153,268
)
Other property
1
(4,159
)
(1,536
)
(5,230
)
Proceeds on sale of assets
—
—
1,713
—
Notes receivable from partners
(18,379
)
(5,983
)
(42,362
)
(5,983
)
Net cash used in investing activities
(69,904
)
(85,033
)
(177,427
)
(164,481
)
Financing activities:
Borrowings on long-term debt
100,000
—
150,000
175,000
Payments on long-term debt
—
(200,000
)
—
(300,000
)
Advances under production prepayment
agreement
50,000
—
50,000
—
Net proceeds from issuance of senior
notes
—
641,875
—
641,875
Redemption of senior secured notes
—
(535,338
)
—
(535,338
)
Purchase of treasury stock / tax
withholdings
—
(3
)
(4,947
)
(1,983
)
Dividends
(25
)
(18,142
)
(19,181
)
(36,289
)
Deferred financing costs
(136
)
(821
)
(136
)
(1,981
)
Net cash provided by (used in) financing
activities
149,839
(112,429
)
175,736
(58,716
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
34,062
42,275
(64,527
)
(807
)
Cash, cash equivalents and restricted cash
at beginning of period
130,757
142,534
229,346
185,616
Cash, cash equivalents and restricted cash
at end of period
$
164,819
$
184,809
$
164,819
$
184,809
___________________________
(1)
Cash settlements on commodity
hedges were $30.4 million and $(11.4) million for the three months
ended, June 30, 2020 and 2019, respectively, and $42.4 million and
$(18.7) million for the six months ended June 30, 2020 and 2019,
respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three months ended
Six months ended
Twelve Months Ended
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
June 30, 2020
Net income (loss)
$
(199,391
)
$
16,837
$
(382,158
)
$
(36,069
)
$
(401,866
)
Exploration expenses
15,711
29,905
60,316
60,249
181,022
Facilities insurance modifications,
net
52
2,278
8,090
(17,743
)
1,579
Depletion, depreciation and
amortization
121,857
151,438
215,159
269,533
509,487
Impairment of long-lived assets
—
—
150,820
—
150,820
Equity-based compensation
8,347
9,491
17,693
17,932
32,131
Derivatives, net
100,075
(14,185
)
(35,963
)
62,900
(26,978
)
Cash settlements on commodity
derivatives
30,430
(11,403
)
42,449
(18,692
)
24,800
Restructuring and other
(222
)
—
17,801
187
44,964
Other, net
839
—
3,930
(14
)
8,093
Gain on sale of assets
—
—
—
—
(10,528
)
Interest and other financing costs,
net
28,274
59,803
56,109
94,844
116,339
Income tax expense (benefit)
(47,425
)
32,602
18,118
23,928
75,084
EBITDAX
$
58,547
$
276,766
$
172,364
$
457,055
$
704,947
Kosmos Energy Ltd.
Adjusted Net Income
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Net income (loss)
$
(199,391
)
$
16,837
$
(382,158
)
$
(36,069
)
Derivatives, net
100,075
(14,185
)
(35,963
)
62,900
Cash settlements on commodity
derivatives
30,430
(11,403
)
42,449
(18,692
)
Facilities insurance modifications,
net
52
2,278
8,090
(17,743
)
Impairment of long-lived assets
—
—
150,820
—
Restructuring and other
(222
)
—
17,801
187
Other, net
839
—
3,930
(14
)
Loss on extinguishment of debt
2,215
24,794
2,215
24,794
Total selected items before tax
133,389
1,484
189,342
51,432
Income tax expense (benefit) on
adjustments(1)
(29,031
)
3,463
5,433
(16,578
)
Impact of valuation adjustments and U.S.
tax law changes
—
—
26,001
—
Adjusted net income (loss)
$
(95,033
)
$
21,784
$
(161,382
)
$
(1,215
)
Net income (loss) per diluted share
$
(0.49
)
$
0.04
$
(0.94
)
$
(0.09
)
Derivatives, net
0.25
(0.03
)
(0.09
)
0.16
Cash settlements on commodity
derivatives
0.07
(0.03
)
0.10
(0.05
)
Facilities insurance modifications,
net
—
—
0.02
(0.04
)
Impairment of long-lived assets
—
—
0.37
—
Restructuring and other
—
—
0.05
—
Other, net
—
—
0.01
—
Loss on extinguishment of debt
0.01
0.06
0.01
0.06
Total selected items before tax
0.33
0.00
0.47
0.13
Income tax expense (benefit) on
adjustments(1)
(0.07
)
0.01
0.01
(0.04
)
Impact of valuation adjustments and U.S.
tax law changes
—
—
0.06
—
Adjusted net income (loss) per diluted
share
$
(0.23
)
$
0.05
$
(0.40
)
$
0.00
Weighted average number of diluted
shares
405,195
408,230
404,990
401,244
___________________________
(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,
2020
2019
2020
2019
Reconciliation of net cash provided by
operating activities to free cash flow:
Net cash provided by (used in) operating
activities
$
(45,873
)
$
239,737
$
(62,836
)
$
222,390
Net cash used in investing activities
(69,904
)
(85,033
)
(177,427
)
(164,481
)
Free cash flow(1)
$
(115,777
)
$
154,704
$
(240,263
)
$
57,909
___________________________
(1)
Commencing this quarter, the Company no
longer includes restricted cash and other cash used in financing
activities (deferred financing costs, the purchase of treasury
stock and costs related to the redemption of the senior secured
notes and issuance of senior notes) in its calculation of free cash
flow to better reflect cash flow of the underlying business,
consistent with general industry practice. Accordingly, free cash
flow excludes change in restricted cash of $3.5 million and $0.2
million for the three months ended, June 30, 2020 and 2019,
respectively, and $4.1 million and $4.2 million for the six months
ended June 30, 2020 and 2019, respectively, and other cash used in
financing activities of $(0.1) million and $(19.3) million for the
three months ended, June 30, 2020 and 2019, respectively, and
$(5.1) million and $(22.4) million for the six months ended June
30, 2020 and 2019, respectively.
Operational Summary
(In thousands, except barrel
and per barrel data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Net Volume Sold
Oil (MMBbl)
5.751
5.851
9.202
10.541
Gas (MMcf)
1.303
1.663
3.284
3.464
NGL (MMBbl)
0.142
0.139
0.335
0.251
Total (MMBoe)
6.110
6.267
10.084
11.369
Total (Boepd)
67.145
68.870
55.408
62.814
Revenue
Oil sales
$
124,813
$
389,286
$
296,729
$
680,150
Gas sales
2,113
4,145
5,832
7,807
NGL sales
388
2,502
2,533
4,766
Total sales
127,314
395,933
305,094
692,723
Cash settlements on commodity
derivatives
30,430
(11,403
)
42,449
(18,692
)
Realized revenue
$
157,744
$
384,530
$
347,543
$
674,031
Oil and Gas Production Costs
$
88,747
$
90,977
$
150,350
$
170,776
Sales per Bbl/Mcf/Boe
Oil sales per Bbl
$
21.70
$
66.53
$
32.25
$
64.52
Gas sales per Mcf
1.62
2.49
1.78
2.25
NGL sales per Bbl
2.73
18.01
7.56
19.00
Total sales per Boe
20.84
63.18
30.25
60.93
Cash settlements on commodity derivatives
per oil Bbl(1)
5.29
(1.95
)
4.61
(1.77
)
Realized revenue per Boe
25.82
61.36
34.46
59.28
Oil and gas production costs per
Boe
$
14.53
$
14.52
$
14.91
$
15.02
___________________________
(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
1,097 thousand barrels as of June 30, 2020.
Hedging Summary
As of June 30, 2020(1)
(Unaudited)
Weighted Average Price per
Bbl
Purchased
Index
MBbl
Floor(3)
Sold Put
Ceiling
Call
2020:
Swaps
Dated Brent
5,275
$
42.67
$
—
$
—
$
—
Swaps
Argus LLS
3,000
29.98
—
—
—
Call spreads
NYMEX WTI
(2
)
—
—
45.00
35.00
Swaps with sold puts
Dated Brent
333
35.00
25.00
—
—
Three-way collars
Dated Brent
1,000
32.50
25.00
40.00
—
2021:
Swaps with sold puts
Dated Brent
5,000
54.70
43.50
—
—
Three-way collars
Dated Brent
2,000
40.00
30.00
55.20
—
___________________________
(1)
Please see the Company’s filed 10-K for
full disclosure on hedging material. Includes hedging position as
of June 30, 2020 and hedges added since quarter-end.
(2)
Added call spreads on 1.0 million barrels
to open upside for U.S. Gulf of Mexico production.
(3)
“Floor” represents floor price for collars
or swaps and strike price for purchased puts.
Note: Excludes 4.8 MMBbls of sold (short)
calls with a strike price of $80.83 per Bbl in 2020, 7.0 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.
2020 Guidance
FY 2020 Guidance
Production(1,2)
62,000 - 70,000 boe per day
Opex
$12.00 - $14.00 per boe
DD&A
$20.00 - $22.00 per boe
G&A(3)
$80-90 million
Exploration Expense(4)
~$60 million
Net Interest
$26 - $30 million per quarter
Tax
$2.00 - $4.00 per boe
Base Business Capex(5)
$200 - $225 million in FY
2020
___________________________
Note: Ghana / Equatorial Guinea revenue calculated by number of
cargos.
(1)
3Q 2020 cargos forecast - Ghana: 3 cargos
/ Equatorial Guinea 1 cargo. FY 2020 Ghana: 10 cargos / Equatorial
Guinea 4.5 cargos. Average cargo sizes 950,000 barrels of oil.
(2)
U.S. Gulf of Mexico Production - 3Q 2020:
20,000-22,000 boe per day. Oil/Gas/NGL split for 2020:
80%/12%/8%
(3)
G&A - Approximately 60% cash.
(4)
Excludes dry hole expense of approximately
$10 million primarily related to Oldfield.
(5)
Excludes Mauritania and Senegal
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200802005040/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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