Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today the
financial and operating results for the third quarter of 2020. For
the quarter, the Company generated a net loss of $37 million, or
$0.09 per diluted share. When adjusted for certain items that
impact the comparability of results, the Company generated an
adjusted net loss(1) of $50 million or $0.12 per diluted share for
the third quarter of 2020.
THIRD QUARTER 2020 HIGHLIGHTS
- Net Production(2) - 56,700 barrels of oil equivalent per day
(boepd) with sales of 59,500 boepd
- Revenues - $225 million, or $41.05 per boe
- Production expense - $84 million, or $15.39 per boe
- General and administrative expenses - $18 million, $9 million
cash expense and $9 million non-cash equity-based compensation
expense
- Capital expenditures:
- $53 million Base Business capital expenditures
- $47 million Mauritania and Senegal accrued non-cash capital
expenditures
At quarter end, the Company was in a net underlift position of
approximately 0.8 million barrels of oil.
Commenting on the company’s 3Q 2020 performance, Chairman and
Chief Executive Officer Andrew G. Inglis said: “Kosmos delivered
robust operational performance in the third quarter, despite
elevated storm activity driving temporary shut-ins in the Gulf of
Mexico. Production in Ghana and Equatorial Guinea was in line with
expectations, with the reliability improvements seen in the first
half of the year continuing into the second half. With the impact
of COVID-19 and one of the worst storm seasons on record in the
Gulf of Mexico, full year production is expected to come in at
61,000 - 62,000 barrels of oil equivalent per day.
In Mauritania and Senegal, the partnership continues to make
good progress with Phase 1 of the Tortue project expected to be
around 50% complete by year end. The operator has put significant
effort into optimizing Phase 2, which we believe is now the most
competitive brownfield LNG expansion globally. With the prospect of
enhanced future returns, now is not the optimal time to reduce our
interest in the project and we have established a financing path
which funds Kosmos' capital obligations to first gas. This enables
Kosmos to retain its current equity stake through to production.
With lower costs and an improving LNG market backdrop, the Tortue
project is expected to provide an excellent return on investment
for Kosmos.
With the recently announced Gulf of Mexico financing facility
and frontier exploration asset sale to Shell, we have taken
additional steps to bolster the balance sheet and have ample
liquidity to navigate the current period of low and volatile
commodity prices."
FINANCIAL UPDATE
In September 2020, the Company closed a five-year $200 million
Gulf of Mexico term loan with Beal Bank USA and Trafigura Trading
LLC, restructuring the previously announced Gulf of Mexico
prepayment facility. The agreement includes an accordion feature
allowing the term loan to be expanded up to $300 million.
In October 2020, the Company successfully completed its reserve
based lending (RBL) re-determination, agreeing with its bank group
a borrowing base of $1.32 billion. Following the completion of the
Gulf of Mexico term loan and the RBL re-determination, the company
had approximately $0.5 billion of available liquidity.
Third quarter cash flow improved by over $100 million versus the
second quarter due to higher realized prices, lower costs and a
benefit in working capital, offset by the impact of the elevated
storms in the Gulf of Mexico. Looking forward to the fourth
quarter, with continued reduction in costs, high reliability in
Ghana and Equatorial Guinea and improved uptime in the Gulf of
Mexico, we expect positive free cash flow from the base business,
enhanced by the proceeds from the Shell transaction.
Kosmos exited the third quarter of 2020 with approximately $2.1
billion of net debt. Net debt slightly increased in the third
quarter, largely driven by a recategorization of the Gulf of Mexico
prepayment facility as debt post restructuring.
Our base business net capital expenditure for 2020 is expected
to be approximately $140-$150 million and includes the impact of
the Shell proceeds, partially offset by the Winterfell
infrastructure-led exploration well in the Gulf of Mexico (formerly
Monarch) and the acceleration of the Kodiak completion into the
fourth quarter (~$20 million).
OPERATIONAL UPDATE
COVID-19 Update
Kosmos’ response to the COVID-19 pandemic 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 with local communities in our host countries to
fight transmission of the virus.
Production
Total net production in the third quarter of 2020 averaged
approximately 56,700 boepd(2), slightly lower than previous
guidance due to the elevated storm activity in the Gulf of Mexico
with 2020 being one of the most active years for tropical storms on
record. With the impact of COVID-19 and the Gulf of Mexico storms,
full year net production is expected to be in the range of 61,000
to 62,000 boepd.
Ghana
Production in Ghana continued to be unaffected by COVID-19 and
averaged approximately 28,100 barrels of oil per day (bopd) net in
the third quarter of 2020, in line with guidance. As forecasted,
Kosmos lifted three cargos from Ghana during the third quarter.
Jubilee continues to perform well with high reliability. Gross
production rates averaged approximately 87,700 bopd during the
quarter with FPSO uptime of around 98%. TEN production averaged
approximately 49,600 bopd gross for the third quarter with FPSO
uptime of 98%.
Full year guidance of ten cargos is unchanged.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
17,500 boepd net (80% oil) during the third quarter, including the
impact of 17 days of production shut-ins during the quarter due to
the impact of increased tropical storm activity, which caused the
shutdown of platforms and infrastructure with personnel
evacuated.
During the quarter, the Tornado-4 water injection well came
online and initial results have been positive, with the injection
providing pressure support to the producing updip wells. Management
also took the decision to accelerate the Kodiak completion, which
will commence in the fourth quarter. The Winterfell
infrastructure-led exploration well (previously named Monarch) is
expected to spud this quarter with results early next year.
Equatorial Guinea
Production in Equatorial Guinea continued to be unaffected by
COVID-19 and averaged approximately 33,000 bopd gross and 11,100
bopd net in the third quarter of 2020. Kosmos lifted 1 cargo from
Equatorial Guinea during the quarter. Full year guidance of 4.5
cargos is unchanged.
Mauritania & Senegal
Phase 1 of the Greater Tortue Ahmeyim project continued to make
good progress in the quarter and is expected to be around 50%
complete by year end. Throughout 2020, Kosmos has collaborated with
operator BP and the national oil companies of Mauritania and
Senegal on the optimization of Phase 2. By targeting expansion to 5
million tonnes per annum and leveraging all the major
infrastructure from Phase 1, capital costs for Phase 2 have been
reduced and the expected returns from the project enhanced.
To fund its current interest, Kosmos has established a financing
path for its capital obligations to first gas. Kosmos and BP are
engaged in the sale of the FPSO to a Special Purpose Vehicle (SPV)
which we plan to close in the first quarter of 2021 for the capital
costs paid so far, which total approximately $160 million net, and
the FPSO leased back to the project. The SPV is expected to take on
the future capital obligations for the FPSO, meaning Kosmos’ future
obligations are reduced by a further $160 million. In addition,
Kosmos intends to re-finance the national oil company loans with
commercial banks in 2021, which should result in a reimbursement of
an additional $100 million to Kosmos. The funds provided from these
two activities are expected to fund Kosmos’ capital obligations in
Mauritania and Senegal through 2021. The outstanding capital
balance for Phase 1 is planned to be funded by a direct investment
in Kosmos’ Mauritania and Senegal position with Phase 2 largely
funded through Phase 1 cash flows. Kosmos plans to secure this
financing by the middle of 2021.
Climate Risk and Resilience Report
As part of our commitment to strong Environmental, Social and
Governance (ESG) performance, and in accordance with our Climate
Change Policy, 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
discusses how we are 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, and a description of
innovative nature-based carbon capture projects used to mitigate
emissions that cannot be eliminated.
(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 third
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 on 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 proven basin
exploration program in Equatorial Guinea, Ghana and 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
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
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Revenues and other income:
Oil and gas revenue
$
224,786
$
357,036
$
529,880
$
1,049,759
Other income, net
1
(66)
2
(65)
Total revenues and other income
224,787
356,970
529,882
1,049,694
Costs and expenses:
Oil and gas production
84,277
95,540
234,627
266,316
Facilities insurance modifications,
net
2,465
12,569
10,555
(5,174)
Exploration expenses
13,977
22,773
74,293
83,022
General and administrative
18,269
24,723
57,366
88,703
Depletion, depreciation and
amortization
111,231
146,653
326,390
416,186
Impairment of long-lived assets
—
—
150,820
—
Interest and other financing costs,
net
27,068
30,721
83,177
125,565
Derivatives, net
1,187
(27,016)
(34,776)
35,884
Other expenses, net
2,805
11,472
27,962
11,798
Total costs and expenses
261,279
317,435
930,414
1,022,300
Income (loss) before income taxes
(36,492)
39,535
(400,532)
27,394
Income tax expense
892
23,470
19,010
47,398
Net income (loss)
$
(37,384)
$
16,065
$
(419,542)
$
(20,004)
Net income (loss) per share:
Basic
$
(0.09)
$
0.04
$
(1.04)
$
(0.05)
Diluted
$
(0.09)
$
0.04
$
(1.04)
$
(0.05)
Weighted average number of shares used to
compute net income (loss) per share:
Basic
405,409
401,466
405,131
401,319
Diluted
405,409
410,992
405,131
401,319
Dividends declared per common share
$
—
$
0.0452
$
0.0452
$
0.1356
Kosmos Energy Ltd. Condensed
Consolidated Balance Sheets (In thousands, unaudited)
September 30,
2020
December 31,
2019
Assets
Current assets:
Cash and cash equivalents
$
300,819
$
224,502
Receivables, net
85,283
174,293
Other current assets
206,364
167,762
Total current assets
592,466
566,557
Property and equipment, net
3,366,304
3,642,332
Other non-current assets
134,731
108,343
Total assets
$
4,093,501
$
4,317,232
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
184,086
$
149,483
Accrued liabilities
186,630
380,704
Current maturities of long-term debt
169,905
—
Other current liabilities
24,589
8,914
Total current liabilities
565,210
539,101
Long-term liabilities:
Long-term debt, net
2,191,433
2,008,063
Deferred tax liabilities
624,156
653,221
Other non-current liabilities
287,138
275,145
Total long-term liabilities
3,102,727
2,936,429
Total stockholders’ equity
425,564
841,702
Total liabilities and stockholders’
equity
$
4,093,501
$
4,317,232
Kosmos Energy Ltd. Condensed
Consolidated Statements of Cash Flow (In thousands,
unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Operating activities:
Net income (loss)
$
(37,384)
$
16,065
$
(419,542)
$
(20,004)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
113,486
148,938
333,120
423,160
Deferred income taxes
(19,935)
(13,110)
3,715
(69,840)
Unsuccessful well costs and leasehold
impairments
3,483
262
24,338
7,361
Impairment of long-lived assets
—
—
150,820
—
Change in fair value of derivatives
(541)
(31,683)
(32,156)
34,003
Cash settlements on derivatives,
net(1)
(17,910)
(3,657)
16,904
(24,701)
Equity-based compensation
8,699
9,450
26,392
27,382
Loss on extinguishment of debt
678
—
2,893
24,794
Other
144
2,183
6,673
9,600
Changes in assets and liabilities:
Net changes in working capital
32,773
49,438
(92,500)
(11,479)
Net cash provided by operating
activities
83,493
177,886
20,657
400,276
Investing activities
Oil and gas assets
(80,183)
(87,374)
(215,425)
(240,642)
Other property
(302)
(3,061)
(1,838)
(8,291)
Proceeds on sale of assets
—
—
1,713
—
Notes receivable from partners
(11,212)
(13,582)
(53,574)
(19,565)
Net cash used in investing activities
(91,697)
(104,017)
(269,124)
(268,498)
Financing activities:
Borrowings on long-term debt
150,000
—
300,000
175,000
Payments on long-term debt
—
(25,000)
—
(325,000)
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
7
(18,158)
(19,174)
(54,447)
Deferred financing costs
(4,434)
(462)
(4,570)
(2,443)
Net cash provided by (used in) financing
activities
145,573
(43,620)
321,309
(102,336)
Net increase in cash, cash equivalents and
restricted cash
137,369
30,249
72,842
29,442
Cash, cash equivalents and restricted cash
at beginning of period
164,819
184,809
229,346
185,616
Cash, cash equivalents and restricted cash
at end of period
$
302,188
$
215,058
$
302,188
$
215,058
____________
(1) Cash settlements on commodity hedges were $(19.6) million
and $(8.3) million for the three months ended, September 30, 2020
and 2019, respectively, and $22.8 million and $(27.0) million for
the nine months ended September 30, 2020 and 2019,
respectively.
Kosmos Energy Ltd. EBITDAX (In
thousands, unaudited)
Three months ended
Nine months ended
Twelve Months Ended
September 30, 2020
September 30, 2019
September 30, 2020
September 30, 2019
September 30, 2020
Net income (loss)
$
(37,384)
$
16,065
$
(419,542)
$
(20,004)
$
(455,315)
Exploration expenses
13,977
22,773
74,293
83,022
172,226
Facilities insurance modifications,
net
2,465
12,569
10,555
(5,174)
(8,525)
Depletion, depreciation and
amortization
111,231
146,653
326,390
416,186
474,065
Impairment of long-lived assets
—
—
150,820
—
150,820
Equity-based compensation
8,699
9,450
26,392
27,382
31,380
Derivatives, net
1,187
(27,016)
(34,776)
35,884
1,225
Cash settlements on commodity
derivatives
(19,637)
(8,325)
22,811
(27,017)
13,487
Restructuring and other
1,158
9,981
18,959
10,168
36,141
Other, net
1,542
1,677
5,472
1,663
7,958
Gain on sale of assets
—
—
—
—
(10,528)
Interest and other financing costs,
net
27,068
30,721
83,177
125,565
112,686
Income tax expense
892
23,470
19,010
47,398
52,506
EBITDAX
$
111,198
$
238,018
$
283,561
$
695,073
$
578,126
Kosmos Energy Ltd.Adjusted Net Income(In thousands, except per
share amounts, unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Net income (loss)
$
(37,384)
$
16,065
$
(419,542)
$
(20,004)
Derivatives, net
1,187
(27,016)
(34,776)
35,884
Cash settlements on commodity
derivatives
(19,637)
(8,325)
22,811
(27,017)
Facilities insurance modifications,
net
2,465
12,569
10,555
(5,174)
Impairment of long-lived assets
—
—
150,820
—
Restructuring and other
1,158
9,981
18,959
10,168
Other, net
1,542
1,677
5,472
1,663
Loss on extinguishment of debt
678
—
2,893
24,794
Total selected items before tax
(12,607)
(11,114)
176,734
40,318
Income tax expense (benefit) on
adjustments(1)
335
11,594
5,768
(4,980)
Impact of valuation adjustments and U.S.
tax law changes
—
—
26,001
—
Adjusted net income (loss)
$
(49,656)
$
16,545
$
(211,039)
$
15,334
Net income (loss) per diluted share
$
(0.09)
$
0.04
$
(1.04)
$
(0.05)
Derivatives, net
—
(0.06)
(0.09)
0.09
Cash settlements on commodity
derivatives
(0.04)
(0.02)
0.06
(0.07)
Facilities insurance modifications,
net
0.01
0.03
0.03
(0.01)
Impairment of long-lived assets
—
—
0.37
—
Restructuring and other
—
0.02
0.06
0.03
Other, net
—
—
0.01
—
Loss on extinguishment of debt
—
—
0.01
0.06
Total selected items before tax
(0.03)
(0.03)
0.45
0.10
Income tax expense (benefit) on
adjustments(1)
0.00
0.03
0.01
(0.01)
Impact of valuation adjustments and U.S.
tax law changes
—
—
0.06
—
Adjusted net income (loss) per diluted
share
$
(0.12)
$
0.04
$
(0.52)
$
0.04
Weighted average number of diluted
shares
405,409
410,992
405,131
401,319
____________
(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
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Reconciliation of net cash provided by
operating activities to free cash flow:
Net cash provided by operating
activities
$
83,493
$
177,886
$
20,657
$
400,276
Net cash used in investing activities
(91,697)
(104,017)
(269,124)
(268,498)
Free cash flow(1)
$
(8,204)
$
73,869
$
(248,467)
$
131,778
____________
(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
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Net Volume Sold
Oil (MMBbl)
5.160
5.698
14.361
16.239
Gas (MMcf)
1.167
1.189
4.451
4.653
NGL (MMBbl)
0.122
0.142
0.457
0.393
Total (MMBoe)
5.477
6.038
15.560
17.408
Total (Boepd)
59.527
65.632
56.788
63.764
Revenue
Oil sales
$
220,653
$
351,537
$
517,382
$
1,031,687
Gas sales
2,314
3,969
8,146
11,776
NGL sales
1,819
1,530
4,352
6,296
Total sales
224,786
357,036
529,880
1,049,759
Cash settlements on commodity
derivatives
(19,637)
(8,325)
22,811
(27,017)
Realized revenue
$
205,149
$
348,711
$
552,691
$
1,022,742
Oil and Gas Production Costs
$
84,277
$
95,540
$
234,627
$
266,316
Sales per Bbl/Mcf/Boe
Oil sales per Bbl
$
42.76
$
61.69
$
36.03
$
63.53
Gas sales per Mcf
1.98
3.34
1.83
2.53
NGL sales per Bbl
14.91
10.77
9.52
16.02
Total sales per Boe
41.05
59.13
34.05
60.30
Cash settlements on commodity derivatives
per oil Bbl(1)
(3.81)
(1.46)
1.59
(1.66)
Realized revenue per Boe
37.46
57.75
35.52
58.75
Oil and gas production costs per
Boe
$
15.39
$
15.83
$
15.08
$
15.30
____________
(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 834 thousand barrels as
of September 30, 2020.
Hedging Summary As of
September 30, 2020(1) (Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(3)
Sold Put
Ceiling
Purchased Call
2020:
Swaps
Dated Brent
2,637
$
42.67
$
—
$
—
$
—
Swaps
Argus LLS
1,500
29.98
—
—
—
Call spreads
NYMEX WTI
(2)
—
—
45.00
35.00
Swaps with sold puts
Dated Brent
167
35.00
25.00
—
—
Three-way collars
Dated Brent
500
32.50
25.00
40.00
—
2021:
Swaps with sold puts
Dated Brent
6,000
53.96
42.92
—
—
Three-way collars
Dated Brent
3,000
40.00
30.83
53.47
—
____________
(1) Please see the Company’s filed 10-K for full disclosure on
hedging material. Includes hedging position as of September 30,
2020 and hedges added since quarter-end. (2) Added call spreads on
0.5 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 2.4 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)
61,000 - 62,000 boe per day
Opex
$14.50 - $15.00 per boe
DD&A
$20.00 - $22.00 per boe
G&A(3)
$75 - $80 million
Exploration Expense(4)
~$60 million
Net Interest
$26 - $30 million per quarter
Tax
$1.00 - $2.00 per boe
Base Business Capex(5)
$140 - $150 million in FY
2020
____________
Note: Ghana / Equatorial Guinea revenue calculated by number of
cargos. (1) 4Q 2020 cargos forecast - Ghana: 3 cargos / Equatorial
Guinea: 1.5 cargos. 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 - 4Q 2020: 25,000-27,000 boe per day.
Oil/Gas/NGL split for 2020: 80%/12%/8% (3) G&A - Approximately
50% cash. (4) Excludes dry hole expense of approximately $13
million primarily related to Oldfield. (5) Excludes Mauritania and
Senegal, net of Shell proceeds
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201108005050/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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