Kosmos Energy Successfully Completes Reserve Based Lending Facility Re-Determination
October 13 2020 - 5:30PM
Business Wire
Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”)
announced today that it has successfully completed the
re-determination of its reserve based lending credit facility
(“RBL”).
During the September re-determination, the Company’s lending
syndicate approved a borrowing base capacity of $1.32 billion, a
reduction of $130 million from the previous drawn amount of $1.45
billion. The reduction in borrowing base capacity is primarily the
result of lower oil price assumptions from those assumed at the
March re-determination, due to the continuing impact of COVID-19.
Repayment of the reduction in borrowing base will be made from
available liquidity in the fourth quarter.
The RBL is secured against the Company’s production assets in
Ghana and Equatorial Guinea with the first amortization payment
scheduled for March 2022. Kosmos’ gas assets in Mauritania and
Senegal remain unencumbered.
Following the RBL re-determination, the Company has
approximately $0.5 billion of available liquidity as of October 1,
2020.
“We are pleased to have successfully completed the September RBL
re-determination, and we thank our bank group for its continued
support. With the recently announced Gulf of Mexico facility and
this successful re-determination, the company has secured access to
multiple sources of low cost, flexible financing. Our balance sheet
is expected to be further strengthened by the proceeds of the Shell
transaction this quarter and free cash generated by our low-cost
production,” said Neal Shah, Chief Financial Officer.
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. 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 our Corporate Responsibility
Report. For additional information, visit www.kosmosenergy.com.
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’ 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20201013006090/en/
Kosmos Energy Ltd. 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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