Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE: KOS)
announced today its financial and operating results for the third
quarter of 2021. For the quarter, the Company generated a net loss
of $29 million, or $0.07 per diluted share. When adjusted for
certain items that impact the comparability of results, the Company
generated an adjusted net loss(1) of $43 million, or $0.11 per
diluted share for the third quarter of 2021.
Commenting on the Company’s third quarter 2021 performance and
subsequent events, Chairman and Chief Executive Officer Andrew G.
Inglis said: “With the recently executed transactions, Kosmos has
significantly enhanced the outlook for the Company. The Oxy Ghana
transaction accelerates our strategic delivery with increased
near-term production and cash flow driving down leverage. The cash
flow from the acquired assets also supports our portfolio
transition to LNG at a time of increasing global gas demand.
"Operationally, Kosmos delivered in line with expectations for
the quarter, taking account of the impact of Hurricane Ida in the
Gulf of Mexico. At Tortue, the project continued to make good
progress, and we now have a clear funding path to first gas
following the successful completion of the FPSO sale and leaseback
announced in the third quarter. This transaction materially reduces
our outstanding capital to first gas with the remainder expected to
be funded through organic free cash flow.
"Looking forward, growing production and increased exposure to
current oil prices as 2021 hedges roll off give us visibility to
materially higher EBITDAX and cash flow in 2022, with leverage
expected to continue to fall. Over the next year, we also expect to
substantially de-risk the delivery of Tortue Phase 1 while
advancing Phase 2 to maximize the value of our significant gas
resources in Mauritania and Senegal. With the right portfolio for
the future and a strengthened balance sheet, we are excited about
the outlook for Kosmos.”
THIRD QUARTER 2021 HIGHLIGHTS
- Completed Greater Tortue Ahmeyim (GTA) floating production,
storage and offloading vessel (FPSO) transaction, reducing GTA
project capital expenditure to first gas
- Net Production(2): 49,300 barrels of oil equivalent per day
(boepd) with sales of 32,700 boepd, resulting in a material net
underlift position of approximately 1.5 million barrels of oil
(excluding impact of Ghana acquisition)
- Revenues: $199 million, or $66.10 per boe (excluding the impact
of derivative cash settlements)
- Production expense: $50 million, or $16.72 per boe
- General and administrative expenses: $22 million, $14 million
cash expense and $8 million non-cash
- Capital expenditures:
- $72 million Base Business
- $14 million Mauritania and Senegal
- Post quarter end, announced and completed the acquisition of
additional interests in Ghana from Occidental Petroleum ("Oxy") for
approximately $550 million
FINANCIAL UPDATE
In August 2021, Kosmos successfully completed the GTA FPSO
transaction, a major step in the funding path for the project. The
transaction significantly reduces the outstanding capital
expenditures net to Kosmos with any remaining cash calls for the
project in 2021 covered by the proceeds. The remaining benefits of
the transaction reduce project cash calls in 2022.
The base business net capital expenditure for the third quarter
of 2021 was approximately $72 million, in-line with Company
guidance. Net capital expenditure related to Mauritania and Senegal
in the third quarter was $14 million.
Kosmos exited the third quarter of 2021 with $2.3 billion of net
debt(1) and available liquidity of approximately $0.6 billion. The
increase in net debt in the quarter was primarily driven by the low
sales volumes in the quarter, in line with previous guidance, as
well as a working capital outflow largely due to the material
underlift position and cash calls relating to the GTA project prior
to the conclusion of the FPSO transaction.
Post quarter end, Kosmos announced the acquisition of additional
interests in the Jubilee and TEN fields in Ghana from Oxy for
approximately $550 million. Consideration due to Oxy at completion
was approximately $460 million after taking into account closing
adjustments.
To fund the transaction, Kosmos successfully announced and
closed an equity offering of approximately $140 million and a $400
million senior notes offering.
OPERATIONAL UPDATE
Production
Total net production(2) in the third quarter of 2021 averaged
approximately 49,300 boepd. Pro forma net production including the
additional interest acquired in Ghana would have been approximately
65,800 boepd.
Ghana(3)
Production in Ghana averaged approximately 22,700 barrels of oil
per day (bopd) net in the third quarter of 2021. As forecast,
Kosmos lifted one cargo from Ghana during the third quarter.
At Jubilee, production averaged approximately 77,800 bopd gross
during the quarter. At TEN, production averaged approximately
30,400 bopd gross for the third quarter.
The first Jubilee producer well (J-56P) came online early in the
third quarter, adding around 10,000 bopd gross with Jubilee
currently producing above 80,000 bopd. The Jubilee injector well
(J-55W) came online around the end of the third quarter and is
already supporting increased production levels. The second Jubilee
producer well is expected to be drilled in the fourth quarter, with
gross Jubilee production expected to rise to over 85,000 bopd gross
once this well is online around the end of the year.
At TEN, a gas injector well came online early in the fourth
quarter and is expected to add pressure support to the Ntomme field
going forwards.
High reliability of the Ghana production facilities continues,
with uptime of the Jubilee and TEN FPSOs averaging around 98% to
the end of the third quarter. Consistently high levels of water
injection (>200,000 barrels/day) and gas offtake from the
Government of Ghana (>110 mmscf/day) over the same period are
helping to optimize reservoir performance at Jubilee.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
17,000 boepd net (81% oil) during the third quarter, including the
previously announced impact of Hurricane Ida, which shut in
production across the Gulf of Mexico for several weeks. The net
impact for the quarter was around 4,000 boepd. Gulf of Mexico
production was restored to around pre-hurricane levels in
September.
In September, Kosmos and its partners started drilling an
appraisal well on the Winterfell discovery. The appraisal well will
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 29,900
bopd gross and 9,600 bopd net in the third quarter of 2021. As
forecast, Kosmos lifted 0.5 cargos from Equatorial Guinea during
the quarter.
The first of three planned infill wells in the Okume Complex was
completed in August 2021 with hookup currently in progress. In the
third quarter of 2021, the operator commenced drilling an
additional well, which is expected to be online in the fourth
quarter of 2021. The third planned well is now expected to be
deferred, as the rig is being utilized to plug and abandon an
existing well in Equatorial Guinea and is required to mobilize for
its next contract before it can complete the drilling of the last
well.
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 third quarter and post quarter-end.
- FLNG: Mechanical completion activities have commenced with
instrument loop checks
- FPSO: Topsides integration and hull and living quarters
mechanical completion activities have commenced
- Breakwater: Commenced fabrication of the 20th caisson (of 21)
with 12 installed
- Subsea: Nouakchott and Dakar marine supply bases
established
The Company is currently working to re-finance 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.
(3) 3Q net production numbers exclude any impact from the Oxy
Ghana acquisition
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss third
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 +1-877-407-0784. Callers in the
United Kingdom should call 0800 756 3429. Callers outside the
United States should dial +1-201-689-8560. 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
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Revenues and other income:
Oil and gas revenue
$
198,936
$
224,786
$
759,455
$
529,880
Gain on sale of assets
1,538
—
1,564
—
Other income, net
66
1
210
2
Total revenues and other income
200,540
224,787
761,229
529,882
Costs and expenses:
Oil and gas production
50,316
84,277
211,871
234,627
Facilities insurance modifications,
net
1,554
2,465
3,495
10,555
Exploration expenses
23,982
13,977
41,452
74,293
General and administrative
22,459
18,269
66,628
57,366
Depletion, depreciation and
amortization
64,914
111,231
292,616
326,390
Impairment of long-lived assets
—
—
—
150,820
Interest and other financing costs,
net
26,873
27,068
90,727
83,177
Derivatives, net
38,224
1,187
252,606
(34,776
)
Other expenses, net
194
2,805
1,003
27,962
Total costs and expenses
228,516
261,279
960,398
930,414
Loss before income taxes
(27,976
)
(36,492
)
(199,169
)
(400,532
)
Income tax expense (benefit)
621
892
(22,617
)
19,010
Net loss
$
(28,597
)
$
(37,384
)
$
(176,552
)
$
(419,542
)
Net loss per share:
Basic
$
(0.07
)
$
(0.09
)
$
(0.43
)
$
(1.04
)
Diluted
$
(0.07
)
$
(0.09
)
$
(0.43
)
$
(1.04
)
Weighted average number of shares used to
compute net loss per share:
Basic
408,520
405,409
408,009
405,131
Diluted
408,520
405,409
408,009
405,131
Dividends declared per common share
$
—
$
—
$
—
$
0.0452
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
September 30,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
111,329
$
149,027
Receivables, net
75,857
78,813
Other current assets
228,735
172,451
Total current assets
415,921
400,291
Property and equipment, net
3,442,897
3,320,913
Other non-current assets
294,906
146,389
Total assets
$
4,153,724
$
3,867,593
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
143,155
$
221,430
Accrued liabilities
180,725
203,260
Current maturities of long-term debt
30,000
7,500
Other current liabilities
107,863
28,009
Total current liabilities
461,743
460,199
Long-term liabilities:
Long-term debt, net
2,368,240
2,103,931
Deferred tax liabilities
505,253
573,619
Other non-current liabilities
531,736
289,690
Total long-term liabilities
3,405,229
2,967,240
Total stockholders’ equity
286,752
440,154
Total liabilities and stockholders’
equity
$
4,153,724
$
3,867,593
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Operating activities:
Net loss
$
(28,597
)
$
(37,384
)
$
(176,552
)
$
(419,542
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
67,511
113,486
300,404
333,120
Deferred income taxes
1,119
(19,935
)
(68,366
)
3,715
Unsuccessful well costs and leasehold
impairments
11,907
3,483
16,772
24,338
Impairment of long-lived assets
—
—
—
150,820
Change in fair value of derivatives
36,130
(541
)
259,289
(32,156
)
Cash settlements on derivatives,
net(1)
(53,640
)
(17,910
)
(150,255
)
16,904
Equity-based compensation
8,122
8,699
24,011
26,392
Gain on sale of assets
(1,538
)
—
(1,564
)
—
Loss on extinguishment of debt
—
678
15,223
2,893
Other
(2,097
)
144
(2,763
)
6,673
Changes in assets and liabilities:
Net changes in working capital
(137,331
)
32,773
(72,358
)
(92,500
)
Net cash provided by (used in) operating
activities
(98,414
)
83,493
143,841
20,657
Investing activities
Oil and gas assets
(86,726
)
(80,183
)
(377,125
)
(215,425
)
Other property
(585
)
(302
)
(725
)
(1,838
)
Proceeds on sale of assets
3,395
—
5,327
1,713
Notes receivable from partners
(5,531
)
(11,212
)
(41,712
)
(53,574
)
Net cash used in investing activities
(89,447
)
(91,697
)
(414,235
)
(269,124
)
Financing activities:
Borrowings on long-term debt
150,000
150,000
250,000
300,000
Payments on long-term debt
—
—
(400,000
)
—
Advances under production prepayment
agreement
—
—
—
50,000
Net proceeds from issuance of senior
notes
—
—
444,375
—
Redemption of senior secured notes
—
—
—
—
Purchase of treasury stock / tax
withholdings
(63
)
—
(1,100
)
(4,947
)
Dividends
(68
)
7
(512
)
(19,174
)
Deferred financing costs
(229
)
(4,434
)
(17,291
)
(4,570
)
Net cash provided by financing
activities
149,640
145,573
275,472
321,309
Net increase (decrease) in cash, cash
equivalents and restricted cash
(38,221
)
137,369
5,078
72,842
Cash, cash equivalents and restricted cash
at beginning of period
193,063
164,819
149,764
229,346
Cash, cash equivalents and restricted cash
at end of period
$
154,842
$
302,188
$
154,842
$
302,188
____________________
(1)
Cash settlements on commodity hedges were
$(55.4) million and $(19.6) million for the three months ended
September 30, 2021 and 2020, respectively, and $(142.9) million and
$22.8 million for the nine months ended September 30, 2021 and
2020, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three months ended
Nine months ended
Twelve Months Ended
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
September 30, 2021
Net loss
$
(28,597
)
$
(37,384
)
$
(176,552
)
$
(419,542
)
$
(168,596
)
Exploration expenses
23,982
13,977
41,452
74,293
51,775
Facilities insurance modifications,
net
1,554
2,465
3,495
10,555
6,101
Depletion, depreciation and
amortization
64,914
111,231
292,616
326,390
452,088
Impairment of long-lived assets
—
—
—
150,820
3,139
Equity-based compensation
8,122
8,699
24,011
26,392
30,325
Derivatives, net
38,224
1,187
252,606
(34,776
)
304,562
Cash settlements on commodity
derivatives
(55,446
)
(19,637
)
(142,892
)
22,811
(168,418
)
Restructuring and other
(407
)
1,158
1,012
18,959
11,220
Other, net
601
1,542
(9
)
5,472
4,734
Gain on sale of assets
(1,538
)
—
(1,564
)
—
(93,727
)
Interest and other financing costs,
net
26,873
27,068
90,727
83,177
117,344
Income tax expense (benefit)
621
892
(22,617
)
19,010
(46,836
)
EBITDAX
78,903
$
111,198
$
362,285
$
283,561
$
503,711
Acquired Ghana Interest EBITDAX(1)
315,485
Pro Forma EBITDAX
$
819,196
____________________
(1)
Twelve Months Ended September 30, 2021
EBITDAX for the Acquired Ghana Interest of $315.5 million is
comprised of Revenues of $410.8 million less direct operating
expenses of $95.3 million for the acquired properties. Consistent
with the definition of EBITDAX, $3.6 million of Facilities
insurance modifications, net has been excluded from the results to
present the Acquired Ghana Interests Twelve Months Ended September
30, 2021 EBITDAX. The results are presented on the accrual basis of
accounting, however as the acquired properties were not accounted
for or operated as a separate segment, division, or entity,
complete financial statements under U.S. generally accepted
accounting principles are not available or practicable to produce.
The results are not intended to be a complete presentation of the
results of operations of the acquired properties and may not be
representative of future operations as they do not include general
and administrative expenses; interest expense; depreciation,
depletion, and amortization; provision for income taxes; and
certain other revenues and expenses not directly associated with
revenues from the sale of crude oil.
Kosmos Energy Ltd.
Adjusted Net Income
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net loss
$
(28,597
)
$
(37,384
)
$
(176,552
)
$
(419,542
)
Derivatives, net
38,224
1,187
252,606
(34,776
)
Cash settlements on commodity
derivatives
(55,446
)
(19,637
)
(142,892
)
22,811
Gain on sale of assets
(1,538
)
—
(1,564
)
—
Facilities insurance modifications,
net
1,554
2,465
3,495
10,555
Impairment of long-lived assets
—
—
—
150,820
Restructuring and other
(407
)
1,158
1,012
18,959
Other, net
579
1,542
(208
)
5,472
Loss on extinguishment of debt
—
678
15,223
2,893
Total selected items before tax
(17,034
)
(12,607
)
127,672
176,734
Income tax expense (benefit) on
adjustments(1)
2,677
335
(37,545
)
5,768
Impact of valuation adjustments and U.S.
tax law changes
—
—
—
26,001
Adjusted net loss
$
(42,954
)
(49,656
)
(86,425
)
(211,039
)
Net loss per diluted share
$
(0.07
)
$
(0.09
)
$
(0.43
)
$
(1.04
)
Derivatives, net
0.09
—
0.62
(0.09
)
Cash settlements on commodity
derivatives
(0.14
)
(0.04
)
(0.35
)
0.06
Gain on sale of assets
—
—
—
—
Facilities insurance modifications,
net
—
0.01
—
0.03
Impairment of long-lived assets
—
—
—
0.37
Restructuring and other
—
—
—
0.06
Other, net
—
—
—
0.01
Loss on extinguishment of debt
—
—
0.04
0.01
Total selected items before tax
(0.05
)
(0.03
)
0.31
0.45
Income tax expense (benefit) on
adjustments(1)
0.01
—
(0.09
)
0.01
Impact of valuation adjustments and U.S.
tax law changes
—
—
—
0.06
Adjusted net loss per diluted share
$
(0.11
)
$
(0.12
)
$
(0.21
)
$
(0.52
)
Weighted average number of diluted
shares
408,520
405,409
408,009
405,131
____________________
(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
Nine Months Ended
September 30,
September 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
$
(98,414
)
$
83,493
$
143,841
$
20,657
Net cash used in investing activities -
base business
(65,337
)
(66,498
)
(182,065
)
(187,184
)
Net cash used in investing activities -
Mauritania/Senegal
(24,110
)
(25,199
)
(232,170
)
(81,940
)
Free cash flow
$
(187,861
)
$
(8,204
)
$
(270,394
)
$
(248,467
)
Operational Summary
(In thousands, except barrel
and per barrel data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net Volume Sold
Oil (MMBbl)
2.719
5.160
11.349
14.361
Gas (MMcf)
1.078
1.167
3.624
4.451
NGL (MMBbl)
0.111
0.122
0.365
0.457
Total (MMBoe)
3.010
5.477
12.318
15.560
Total (Boepd)
32.714
59.527
45.121
56.788
Revenue
Oil sales
$
190,599
$
220,653
$
737,381
$
517,382
Gas sales
4,508
2,314
12,727
8,146
NGL sales
3,829
1,819
9,347
4,352
Total sales
198,936
224,786
759,455
529,880
Cash settlements on commodity
derivatives
(55,446
)
(19,637
)
(142,892
)
22,811
Realized revenue
$
143,490
$
205,149
$
616,563
$
552,691
Oil and Gas Production Costs
$
50,316
$
84,277
$
211,871
$
234,627
Sales per Bbl/Mcf/Boe
Oil sales per Bbl
$
70.10
$
42.76
$
64.97
$
36.03
Gas sales per Mcf
4.18
1.98
3.51
1.83
NGL sales per Bbl
34.50
14.91
25.61
9.52
Total sales per Boe
66.10
41.05
61.65
34.05
Cash settlements on commodity derivatives
per oil Bbl(1)
(20.39
)
(3.81
)
(12.59
)
1.59
Realized revenue per Boe
47.68
37.46
50.05
35.52
Oil and gas production costs per
Boe
$
16.72
$
15.39
$
17.20
$
15.08
____________________
(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
1.5 million barrels as of September 30, 2021.
Hedging Summary
As of September 30,
2021(1)
(Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2021:
Swaps with sold puts
Dated Brent
1,500
$
53.96
$
42.92
$
—
Three-way collars
Dated Brent
750
40.00
32.50
53.47
Three-way collars
NYMEX WTI
250
45.00
37.50
55.00
2022:
Three-way collars
Dated Brent
4,500
56.67
43.33
76.91
Two-way collars
Dated Brent
5,000
61.00
—
82.00
____________________
(1)
Please see the Company’s filed 10-Q for
full disclosure on hedging material. Includes hedging position as
of September 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 1.8 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
4Q 2021(1)
Production(2,3)
70,000 - 72,000 boe per day
Opex
$17.00 - $18.50 per boe
DD&A
$23.00 - $25.00 per boe
G&A(~60% cash)
$24 - $26 million
Exploration Expense(4)
$20 - $22 million
Net Interest(5)
~$45 million
Tax
$7.00 - $9.00 per boe
Base Business Capex(6)
~$115 million
____________________
Note: Ghana / Equatorial Guinea revenue
calculated by number of cargos.
(1)
Assumes no pre-emption.
(2)
Production assumes Oxy Ghana contribution
from October 1, 2021. 4Q 2021 cargos forecast - Ghana: 4 cargos /
Equatorial Guinea: 1.5 cargos. FY 2021 Ghana: 9 cargos (includes 1
Oxy Ghana cargo in 4Q) / Equatorial Guinea 4.0 cargos. Average 4Q
cargo size ~900,000 barrels of oil (accounting for one Oxy Ghana
cargo that was co-lifted)
(3)
U.S. Gulf of Mexico Production - 4Q 2021
forecast 20,000-21,500 boe per day. Oil/Gas/NGL split for 2021:
~80%/~15%/~5%.
(4)
Excludes dry hole costs. Includes Gulf of
Mexico seismic acquisition deferred from 3Q.
(5)
Includes ~$5 million of one off financing
costs associated with the Oxy Ghana acquisition
(6)
Excludes Mauritania and Senegal capital
expenditures of ~$10 million and includes capital expenditures
associated with the additional Ghana interests.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211107005125/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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