Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today its
financial and operating results for the fourth quarter of 2020. For
the quarter, the Company generated a net income of $8 million, or
$0.02 per diluted share. When adjusted for certain items that
impact the comparability of results, the Company generated an
adjusted net loss(1) of $49 million or $0.12 per diluted share for
the fourth quarter of 2020.
FOURTH QUARTER 2020 HIGHLIGHTS
- Net Production(2) - 60,200 barrels of oil equivalent per day
(boepd) with sales of 71,200 boepd
- Revenues - $274 million, or $41.84 per boe
- Production expense - $104 million, or $15.85 per boe
- General and administrative expenses - $15 million, $9 million
cash expense and $6 million non-cash
- Capital expenditures:
- $46 million Base Business capital expenditures
- $75 million Mauritania and Senegal, primarily accrued non-cash
capital expenditures
- Net cash provided by operating activities - $175 million; free
cash flow1 - $99 million
At quarter end, the Company was in a net overlift position of
approximately 0.2 million barrels of oil.
Commenting on the company’s fourth quarter and full year 2020
performance, Chairman and Chief Executive Officer Andrew G. Inglis
said: “Kosmos delivered on its key strategic priorities in 2020,
despite the challenges faced by the sector during the year. With
focus on safe and reliable operations across the portfolio, we
delivered robust production performance. In Mauritania and Senegal,
Phase 1 of the Tortue project maintained momentum and finished the
year around 50% complete with a financing path established. We
monetized a portfolio of exploration assets in 2020 to focus
activity on fast payback, high-return opportunities in proven
basins we know well. We also took quick, decisive steps to protect
the balance sheet and reduce costs.
Importantly, Kosmos reaffirmed its commitment to sustainability
during the year by publishing its first Climate Risk &
Resilience Report, setting a goal to be carbon neutral for Scope 1
and Scope 2 emissions by 2030 or sooner, and by publishing the
latest edition of our annual Sustainability Report, which reports
transparently on our strong environmental, social, and governance
credentials.
Operational momentum is building in 2021, with a significant
uptick in forecast activity across the portfolio. We expect the
nine planned infill wells in the base business to provide near-term
production growth and the ramp up in activity at Phase 1 of Tortue
to reach 80% completion by year-end. In addition, we plan to
selectively invest in the best ILX projects across our diverse
portfolio, as evidenced by the early success we had with the
Winterfell discovery well last month.
With the strategic actions we took in 2020, we enter 2021 with a
lower cost base, a solid balance sheet, healthy liquidity and the
operational momentum to deliver value to our shareholders from a
portfolio of assets that are low cost and lower carbon.”
FINANCIAL UPDATE
Kosmos returned to positive free cash flow with approximately
$100 million in the fourth quarter, driven by increased oil sales,
lower costs and completion of the Shell transaction.
Kosmos exited the fourth quarter of 2020 with approximately $2.0
billion of net debt and available liquidity of around $570
million.
The base business net capital expenditure for 2020 was
approximately $147 million, in-line with company guidance.
OPERATIONAL UPDATE
Production
Total net production in the fourth quarter of 2020 averaged
approximately 60,200 boepd(2). Full year net production of
approximately 60,800 boepd is consistent with the Company’s updated
guidance.
Ghana
Production in Ghana averaged approximately 24,300 barrels of oil
per day (bopd) net in the fourth quarter of 2020. As forecasted,
Kosmos lifted three cargos from Ghana during the fourth quarter for
a total of 10 cargos in 2020.
Gross production rates at Jubilee averaged approximately 75,500
bopd during the quarter with FPSO uptime of around 95%. TEN
production averaged approximately 43,200 bopd gross for the fourth
quarter with FPSO uptime of 98%.
In early 2021, the Catenary Anchor Leg Mooring (CALM) buoy was
commissioned with the first offloading taking place in February.
The CALM buoy will replace the need for shuttle tankers and is
expected to reduce operating expenses going forward. Infill
drilling is also expected to resume in the second quarter with
drilling planned for three wells on Jubilee and one on TEN in 2021.
The partnership entered into a rig contract of up to four years for
the Maersk Venturer, which is expected to arrive on location in the
second quarter.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
25,500 boepd net (84% oil) during the fourth quarter, including
recognition of contractual royalty relief of approximately 3,600
boepd.
In the fourth quarter, the Company commenced the Kodiak-2
completion, which is expected to begin production in March. Also
during the quarter, drilling operations began on the Winterfell
infrastructure-led exploration (ILX) well (Kosmos working interest
17.5%). In January 2021, the Company announced an oil discovery at
Winterfell, which encountered approximately 26 meters (85 feet) of
net oil pay in two intervals. Kosmos is now working with partners
on an appraisal plan and development options. The discovery is
located within tie back distance to several existing and planned
host facilities. The Company plans to drill a second ILX well at
Zora in the second half of the year.
After the encouraging results from the Tornado-4 water injection
well in 2020, another infill well at Tornado is planned by the
Operator in the middle of this year.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 31,200
bopd gross and 10,500 bopd net in the fourth quarter of 2020. As
forecasted, Kosmos lifted 1.5 cargos from Equatorial Guinea during
the quarter for a total of 4.5 cargos net in 2020.
In 2021, partners have commenced the second phase of the planned
electrical submersible pump program as well an infrastructure
enhancement campaign to increase operational uptime across the
assets. Our first infill drilling campaign is expected to start in
the second quarter with three wells planned.
Mauritania & Senegal
Phase 1 of the Greater Tortue Ahmeyim project made good progress
in the quarter and was around 50% complete by year end. The project
remains on track for first gas in the first half of 2023.
To fund its current interest, Kosmos has established a financing
path to first gas including the sale of the Company’s interest in
the FPSO, the re-financing of the National Oil Company loans and a
direct investment in Kosmos’ Mauritania and Senegal position. Good
progress has been made with the FPSO sale with Kosmos and BP
signing a Memorandum of Understanding this month outlining the key
terms of the transaction. Closing is now targeted within the second
quarter of 2021. The sale of the FPSO is expected to reduce Kosmos’
cash requirements to first gas by approximately $320 million as
previously communicated.
The strong progress with Phase 1 is enabling the advancement of
Phase 2 towards final investment decision, which is targeted for
the end of 2022. Kosmos continues to collaborate with operator BP
and the National Oil Companies of Mauritania and Senegal on a more
capital efficient project, which leverages the infrastructure built
in Phase 1 to reduce costs and enhance the returns of future
phases. With lower capital requirements from an optimized scheme,
Kosmos expects to fund its interest in Phase 2 largely from Phase 1
cash flows.
Closing of the sale of a portfolio of exploration assets to
Shell
In December 2020, the Company successfully completed the
previously announced transaction with B.V. Dordtsche Petroleum
Maatschappij (“Shell”), a wholly-owned subsidiary of Royal Dutch
Shell PLC (LSE: RDSA), to farm down interests in Suriname, Sao Tome
& Principe and Namibia for approximately $95 million, plus
future contingent payments of up to $100 million. The transfer of
interests in South Africa is expected to take place in 2021.
2021 Capital Expenditure Budget
Kosmos expects to spend approximately $225 to $275 million in
2021, excluding Mauritania and Senegal, around 80% of which will
target maintaining and growing existing production and up to 20%
targeting growth activities, mainly through infrastructure-led
exploration.
In Mauritania and Senegal, total 2021 capital expenditure for
Kosmos' working interest is expected to be around $350 million and
is expected to be funded primarily from proceeds of the previously
mentioned FPSO sale ($250 million in 2021) and National Oil Company
loan financing ($100 million).
Reserves
At year end 2020, Kosmos had 2P reserves of around 480 million
barrels, a reserves-to-production life of over 20 years, and 1P SEC
reserves of around 140 million barrels (which excludes Tortue Phase
1), a reserves-to-production life of around 7 years, as certified
by an independent third party.
Environmental, Social and Governance (ESG) Performance
As part of our commitment to strong Environmental, Social and
Governance (ESG) performance, Kosmos recently published a Climate
Risk and Resilience Report that adheres to the recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD). The
report reviews how Kosmos is identifying and managing
climate-related risks and opportunities across four categories:
Governance, Strategy, Risk Management, and Metrics and Targets. In
addition, the report includes a commitment to achieve Scope 1 and
Scope 2 carbon neutrality by 2030 or sooner, a full scenario
analysis demonstrating the resilience of our portfolio including a
scenario fully compliant with the goals of the Paris Agreement, and
a description of innovative nature-based carbon capture projects
used to mitigate emissions that cannot be eliminated.
During the fourth quarter Kosmos also published its annual
Sustainability Report (previously known as the Corporate
Responsibility Report) which reports on the company’s ESG
performance and illustrates our commitment to supporting the United
Nations Sustainable Development Goals, including our leading
position on transparency and in-country social investment
innovation, and operating in accordance with our Business
Principles.
(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 fourth
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 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 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
Years Ended
December 31,
December 31,
2020
2019
2020
2019
Revenues and other income:
Oil and gas revenue
$
274,153
$
449,657
$
804,033
$
1,499,416
Gain on sale of assets
92,163
10,528
92,163
10,528
Other income, net
—
30
2
(35
)
Total revenues and other income
366,316
460,215
896,198
1,509,909
Costs and expenses:
Oil and gas production
103,850
136,297
338,477
402,613
Facilities insurance modifications,
net
2,606
(19,080
)
13,161
(24,254
)
Exploration expenses
10,323
97,933
84,616
180,955
General and administrative
14,776
21,307
72,142
110,010
Depletion, depreciation and
amortization
159,472
147,675
485,862
563,861
Impairment of long-lived assets
3,139
—
153,959
—
Interest and other financing costs,
net
26,617
29,509
109,794
155,074
Derivatives, net
51,956
36,001
17,180
71,885
Other expenses, net
9,840
12,850
37,802
24,648
Total costs and expenses
382,579
462,492
1,312,993
1,484,792
Income (loss) before income taxes
(16,263
)
(2,277
)
(416,795
)
25,117
Income tax expense (benefit)
(24,219
)
33,496
(5,209
)
80,894
Net income (loss)
$
7,956
$
(35,773
)
$
(411,586
)
$
(55,777
)
Net income (loss) per share:
Basic
$
0.02
$
(0.09
)
$
(1.02
)
$
(0.14
)
Diluted
$
0.02
$
(0.09
)
$
(1.02
)
$
(0.14
)
Weighted average number of shares used to
compute net income (loss) per share:
Basic
405,455
401,516
405,212
401,368
Diluted
406,388
401,516
405,212
401,368
Dividends declared per common share
$
—
$
0.0452
$
0.0452
$
0.1808
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
December 31,
December 31,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
149,027
$
224,502
Receivables, net
78,813
174,293
Other current assets
172,451
167,762
Total current assets
400,291
566,557
Property and equipment, net
3,320,913
3,642,332
Other non-current assets
146,389
108,343
Total assets
$
3,867,593
$
4,317,232
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
221,430
$
149,483
Accrued liabilities
203,260
380,704
Current maturities of long-term debt
7,500
—
Other current liabilities
28,009
8,914
Total current liabilities
460,199
539,101
Long-term liabilities:
Long-term debt, net
2,103,931
2,008,063
Deferred tax liabilities
573,619
653,221
Other non-current liabilities
289,690
275,145
Total long-term liabilities
2,967,240
2,936,429
Total stockholders’ equity
440,154
841,702
Total liabilities and stockholders’
equity
$
3,867,593
$
4,317,232
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2020
2019
2020
2019
Operating activities:
Net income (loss)
$
7,956
$
(35,773
)
$
(411,586
)
$
(55,777
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
162,089
149,958
495,209
573,118
Deferred income taxes
(46,302
)
(20,530
)
(42,587
)
(90,370
)
Unsuccessful well costs and leasehold
impairments
(1,181
)
80,452
23,157
87,813
Impairment of long-lived assets
3,139
—
153,959
—
Change in fair value of derivatives
54,956
33,433
22,800
67,436
Cash settlements on derivatives,
net(1)
(27,848
)
(6,757
)
(10,944
)
(31,458
)
Equity-based compensation
6,314
4,988
32,706
32,370
Gain on sale of assets
(92,163
)
(10,528
)
(92,163
)
(10,528
)
Loss on extinguishment of debt
9
—
2,902
24,794
Other
9,249
(531
)
15,922
9,069
Changes in assets and liabilities:
Net changes in working capital
99,270
33,162
6,770
21,683
Net cash provided by operating
activities
175,488
227,874
196,145
628,150
Investing activities
Oil and gas assets
(162,066
)
(99,575
)
(377,491
)
(340,217
)
Other property
(264
)
(3,505
)
(2,102
)
(11,796
)
Acquisition of oil and gas properties, net
of cash acquired
—
—
—
—
Proceeds on sale of assets
97,405
15,000
99,118
15,000
Notes receivable from partners
(11,538
)
(7,353
)
(65,112
)
(26,918
)
Net cash used in investing activities
(76,463
)
(95,433
)
(345,587
)
(363,931
)
Financing activities:
Borrowings on long-term debt
—
—
300,000
175,000
Payments on long-term debt
(250,000
)
(100,000
)
(250,000
)
(425,000
)
Advances under production prepayment
agreement
—
—
50,000
—
Net proceeds from issuance of senior
notes
—
—
—
641,875
Redemption of senior secured notes
—
—
—
(535,338
)
Purchase of treasury stock / tax
withholdings
—
—
(4,947
)
(1,983
)
Dividends
(97
)
(18,152
)
(19,271
)
(72,599
)
Deferred financing costs
(1,352
)
(1
)
(5,922
)
(2,444
)
Net cash provided by (used in) financing
activities
(251,449
)
(118,153
)
69,860
(220,489
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(152,424
)
14,288
(79,582
)
43,730
Cash, cash equivalents and restricted cash
at beginning of period
302,188
215,058
229,346
185,616
Cash, cash equivalents and restricted cash
at end of period
$
149,764
$
229,346
$
149,764
$
229,346
____________________
(1)
Cash settlements on commodity
hedges were $(25.5) million and $(9.3) million for the three months
ended, December 31, 2020 and 2019, respectively, and $(2.7) million
and $(36.3) million for the years ended December 31, 2020 and 2019,
respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three months ended
Years ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
Net income (loss)
$
7,956
$
(35,773
)
$
(411,586
)
$
(55,777
)
Exploration expenses
10,323
97,933
84,616
180,955
Facilities insurance modifications,
net
2,606
(19,080
)
13,161
(24,254
)
Depletion, depreciation and
amortization
159,472
147,675
485,862
563,861
Impairment of long-lived assets
3,139
—
153,959
—
Equity-based compensation
6,314
4,988
32,706
32,370
Derivatives, net
51,956
36,001
17,180
71,885
Cash settlements on commodity
derivatives
(25,526
)
(9,324
)
(2,715
)
(36,341
)
Restructuring and other
10,208
17,182
29,167
27,350
Other, net
4,743
2,486
10,215
4,149
Gain on sale of assets
(92,163
)
(10,528
)
(92,163
)
(10,528
)
Interest and other financing costs,
net
26,617
29,509
109,794
155,074
Income tax expense (benefit)
(24,219
)
33,496
(5,209
)
80,894
EBITDAX
$
141,426
$
294,565
$
424,987
$
989,638
Kosmos Energy Ltd.
Adjusted Net Income
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2020
2019
2020
2019
Net income (loss)
$
7,956
$
(35,773
)
$
(411,586
)
$
(55,777
)
Derivatives, net
51,956
36,001
17,180
71,885
Cash settlements on commodity
derivatives
(25,526
)
(9,324
)
(2,715
)
(36,341
)
Gain on sale of assets
(92,163
)
(10,528
)
(92,163
)
(10,528
)
Facilities insurance modifications,
net
2,606
(19,080
)
13,161
(24,254
)
Impairment of long-lived assets
3,139
—
153,959
—
Restructuring and other
10,208
17,182
29,167
27,350
Other, net
4,743
2,486
10,215
4,149
Loss on extinguishment of debt
9
—
2,902
24,794
Total selected items before tax
(45,028
)
16,737
131,706
57,055
Income tax expense (benefit) on
adjustments(1)
(12,056
)
(17,593
)
(6,288
)
(22,573
)
Impact of valuation adjustments and U.S.
tax law changes
—
—
26,001
—
Adjusted net loss
$
(49,128
)
$
(36,629
)
$
(260,167
)
$
(21,295
)
Net income (loss) per diluted share
$
0.02
$
(0.09
)
$
(1.02
)
$
(0.14
)
Derivatives, net
0.13
0.09
0.04
0.18
Cash settlements on commodity
derivatives
(0.06
)
(0.02
)
(0.01
)
(0.09
)
Gain on sale of assets
(0.23
)
(0.03
)
(0.23
)
(0.03
)
Facilities insurance modifications,
net
0.01
(0.05
)
0.03
(0.06
)
Impairment of long-lived assets
0.01
—
0.38
—
Restructuring and other
0.02
0.04
0.08
0.07
Other, net
0.01
0.01
0.03
0.01
Loss on extinguishment of debt
—
—
0.01
0.06
Total selected items before tax
(0.11
)
0.04
0.33
0.14
Income tax expense (benefit) on
adjustments(1)
(0.03
)
(0.04
)
(0.01
)
(0.05
)
Impact of valuation adjustments and U.S.
tax law changes
—
—
0.06
—
Adjusted net loss per diluted share
$
(0.12
)
$
(0.09
)
$
(0.64
)
$
(0.05
)
Weighted average number of diluted
shares
406,388
401,516
405,212
401,368
____________________
(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
Years Ended
December 31,
December 31,
2020
2019
2020
2019
Reconciliation of net cash provided by
operating activities to free cash flow:
Net cash provided by operating
activities
$
175,488
$
227,874
$
196,145
$
628,150
Net cash used in investing activities
(76,463
)
(95,433
)
(345,587
)
(363,931
)
Free cash flow(1)
$
99,025
$
132,441
$
(149,442
)
$
264,219
____________________
(1)
Commencing in the second quarter
of 2020, the Company no longer included 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.
Operational Summary
(In thousands, except barrel
and per barrel data, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2020
2019
2020
2019
Net Volume Sold
Oil (MMBbl)
6.170
7.092
20.531
23.331
Gas (MMcf)
1.416
1.671
5.867
6.323
NGL (MMBbl)
0.146
0.154
0.602
0.548
Total (MMBoe)
6.552
7.525
22.111
24.933
Total (Boepd)
71.217
81.788
60.412
68.309
Revenue
Oil sales
$
268,777
$
444,019
$
786,159
$
1,475,706
Gas sales
3,560
3,823
11,706
15,599
NGL sales
1,816
1,815
6,168
8,111
Total sales
274,153
449,657
804,033
1,499,416
Cash settlements on commodity
derivatives
(25,526
)
(9,324
)
(2,715
)
(36,341
)
Realized revenue
$
248,627
$
440,333
$
801,318
$
1,463,075
Oil and Gas Production Costs
$
103,850
$
136,297
$
338,477
$
402,613
Sales per Bbl/Mcf/Boe
Oil sales per Bbl
$
43.56
$
62.61
$
38.29
$
63.25
Gas sales per Mcf
2.51
2.29
2.00
2.47
NGL sales per Bbl
12.44
11.79
10.25
14.80
Total sales per Boe
41.84
59.76
36.36
60.14
Cash settlements on commodity derivatives
per oil Bbl(1)
(4.14
)
(1.31
)
(0.13
)
(1.56
)
Realized revenue per Boe
37.95
58.52
36.24
58.68
Oil and gas production costs per
Boe
$
15.85
$
18.12
$
15.31
$
16.15
____________________
(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 176 thousand barrels
as of December 31, 2020.
Hedging Summary
As of December 31,
2020(1)
(Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2021:
Swaps with sold puts
Dated Brent
6,000
$
53.96
$
42.92
$
—
Swaps with sold puts
NYMEX WTI
1,000
47.50
37.50
—
Three-way collars
Dated Brent
4,000
40.63
33.13
52.60
Three-way collars
NYMEX WTI
1,000
45.00
37.50
55.00
2022:
Three-way collars
Dated Brent
1,500
50.00
40.00
70.00
____________________
(1)
Please see the Company’s filed
10-K for full disclosure on hedging material. Includes hedging
position as of December 31, 2020 and hedges added since
quarter-end.
(2)
“Floor” represents floor price
for collars or swaps and strike price for purchased puts.
Note: Excludes 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.
2021 Guidance
FY 2021 Guidance
Production(1,2)
53,000 - 57,000 boe per day
Opex
$14.50 - $16.50 per boe
DD&A
$21.00 - $23.00 per boe
G&A(3)
$85 - $95 million
Exploration Expense(4)
~$35 - $45 million
Net Interest
$25 - $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)
1Q 2021 cargos forecast - Ghana:
1 cargo / Equatorial Guinea: 0.5 cargos. FY 2021 Ghana: 8 cargos /
Equatorial Guinea 4.5 cargos. Average cargo sizes 950,000 barrels
of oil.
(2)
U.S. Gulf of Mexico Production -
1Q 2021: 20,000-22,000 boe per day. FY 2021: 21,000-23,000 boe per
day. Oil/Gas/NGL split for 2021: 80%/15%/5%.
(3)
G&A - Approximately 60%
cash.
(4)
Excludes dry hole costs.
(5)
Excludes Mauritania and Senegal
capital expenditures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210221005048/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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