Record Quarter for Sales and EBITDAX
Record Year for Reserves
Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS)
announced today its financial and operating results for the fourth
quarter of 2021. For the quarter, the Company generated a net
income of $99 million, or $0.22 per diluted share. When adjusted
for certain items that impact the comparability of results, the
Company generated an adjusted net income(1) of $61 million, or
$0.13 per diluted share for the fourth quarter of 2021.
FOURTH QUARTER 2021 HIGHLIGHTS
- Completed the acquisition of additional interests in the
Jubilee and TEN fields in Ghana for ~$550 million (~$460 million
after post-closing adjustments)
- Net Production(2)(3): ~70,000 barrels of oil equivalent per day
(boepd) with sales of 81,900 boepd, resulting in a net underlift
position of approximately 0.3 million barrels of oil (including
impact of Ghana acquisition as of October 1, 2021)
- Revenues: $573 million, or $76.02 per boe (excluding the impact
of derivative cash settlements)
- Production expense: $134 million, or $17.81 per boe
- General and administrative expenses: $25 million, $17 million
cash expense and $8 million non-cash
- Capital expenditures (excluding acquisitions):
- $104 million base business
- $2 million Mauritania and Senegal
- Generated free cash flow(1) of approximately $136 million
- Ended the quarter with record 1P reserves of approximately
300mmboe and record 2P reserves of approximately 580mmboe
Commenting on the Company’s 2021 performance, Chairman and Chief
Executive Officer Andrew G. Inglis said: “In 2021, Kosmos rebuilt
operational momentum across the portfolio and improved the balance
sheet, finishing the year with a strong fourth quarter.
“Today, Kosmos has a differentiated portfolio that is fit for
the future with high-quality, low-cost oil assets funding our
growth in natural gas and LNG. Our record 2P reserves are balanced
between oil and gas with a reserve life of over 20 years.
"With our existing assets and sanctioned projects, production is
expected to grow around 50% in the next two years, and we plan to
do that while further de-leveraging the balance sheet. As we
deliver on this plan and new projects start up, sustainable free
cash flow is expected to increase materially, creating the
potential for meaningful shareholder returns.
“Our goal is to develop our portfolio in a responsible way,
helping our host nations in Africa to expand access to affordable
and reliable energy.”
FINANCIAL UPDATE
In October 2021, Kosmos successfully completed the acquisition
of additional interests in the Jubilee and TEN fields in Ghana from
Occidental Petroleum ("Oxy") for approximately $550 million (~$460
million after post-closing adjustments). The company raised
approximately $540 million through an equity and bond offering in
October 2021 to fund the transaction. In November 2021, Tullow Oil
and PetroSA exercised their pre-emption rights. Completion of the
pre-emption transactions remains subject to finalizing definitive
agreements and securing approval from the Government of Ghana.
Net capital expenditure for the fourth quarter of 2021,
excluding acquisitions, was approximately $106 million, slightly
below Company guidance.
Kosmos exited the fourth quarter of 2021 with $2.5 billion of
net debt(1) and available liquidity of approximately $0.8 billion.
While net debt increased in the quarter, primarily driven by the
financing of the Oxy Ghana transaction, leverage improved
materially to exit 2021 at around 2.5x.
OPERATIONAL UPDATE
Production
Total net production(2)(3) in the fourth quarter of 2021
averaged approximately 70,000 boepd.
Ghana
Production(3) in Ghana averaged approximately 39,400 barrels of
oil per day (bopd) net in the fourth quarter of 2021. Kosmos lifted
five cargos from Ghana during the quarter, one more than planned
due to a late-December Jubilee lifting.
At Jubilee, production averaged approximately 80,400 bopd gross
during the quarter. At TEN, production averaged approximately
27,200 bopd gross for the fourth quarter.
The Jubilee water injector well (J55-W) came online around the
end of the third quarter and the second Jubilee producer well
(J57-P) came online late in the fourth quarter, increasing Jubilee
production to above 90,000 bopd gross. At TEN, a gas injector well
came online early in the fourth quarter to add pressure support to
the Ntomme field.
High reliability of the Ghana production facilities continues,
with uptime of the Jubilee and TEN FPSOs averaging around 98% in
the fourth quarter as well as high levels of water injection and
gas offtake from the Government of Ghana. This performance has
continued into 2022 with record levels of water injection seen at
Jubilee (>235,000 barrels of water per day) helping to optimize
reservoir performance.
Infill drilling is expected to continue in 2022 with a full year
of activity underpinning planned production growth in 2022 and
2023.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately
20,800 boepd net (81% oil) during the fourth quarter, as production
recovered from the impact of Hurricane Ida late in the third
quarter.
Recently, Kosmos announced that the Winterfell-2 appraisal well
encountered approximately 40 meters of net oil pay in the first and
second horizons, with better oil saturation and porosity than
pre-drill expectations. The exploration tail discovered an
additional oil-bearing horizon in a deeper reservoir, which is also
prospective in the blocks immediately to the north. The results of
this appraisal well further define the resource potential in the
central Winterfell area, with our current estimate around 100
million barrels gross. We are currently working with partners on a
low cost, lower carbon development targeting sanction mid-year
2022, with first oil approximately 18 months after sanction.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 30,400
bopd gross and 9,800 bopd net in the fourth quarter of 2021. As
forecast, Kosmos lifted 1.5 cargos from Equatorial Guinea during
the quarter.
Two of three planned infill wells in the Okume Complex began
producing in the fourth quarter of 2021. These wells were the first
new wells since 2015 and have added approximately 2,500 bopd gross
of additional production to the field in the fourth quarter,
supporting an increase in gross production to around 35,000 bopd in
early January. The third planned well has been deferred, as the rig
was utilized to plug and abandon an existing well in Equatorial
Guinea and was required to mobilize for its next contract before it
could complete the drilling of the last well.
Mauritania & Senegal
The Greater Tortue Ahmeyim liquified natural gas (LNG) project
has made steady progress in 2021 and was approximately 70% complete
at year-end with the following milestones achieved in the quarter
and post quarter-end.
- FPSO: All eight process modules have been lifted onto the deck
and mechanical completion of the process sub-systems is
underway
- Breakwater: Construction completed of the 21st (and final)
caisson of the breakwater
- Subsea: Pipe laying vessel completed its nautical trials in
preparation for the offshore installation campaign in the second
quarter of 2022
- FLNG: All four mixed refrigerant compressors lifted onboard and
pipe rack installation operations commenced
Reserves
At year-end 2021, Kosmos had 1P reserves of approximately 300
million barrels of oil equivalent, more than double the reserves at
the end of 2020 reflecting robust reserves replacement from
existing assets, recognition of Tortue 1P reserves and additional
reserves from the acquired Ghana interests. 1P organic reserves
replacement ratio was approximately 102%, and around 900% with the
addition of Tortue Phase 1 and the acquired Ghana interests.
2P reserves as of year-end 2021 are approximately 580 million
barrels, representing a 2P reserves-to-production life of over 20
years. 2P organic reserves replacement ratio was approximately
114%, and around 600% with the addition of the acquired Ghana
interests. Kosmos’ year-end reserves have been independently
evaluated by Ryder Scott.
2022 Capital Expenditure Budget
Kosmos expects to spend approximately $700 million in capital
expenditures in 2022. Around $400 million of the budget is related
to the base business (Ghana, Equatorial Guinea and Gulf of Mexico
assets) with around $300 million related to our assets in
Mauritania and Senegal. The base business capex includes
approximately $250-$300 million of maintenance capital expenditures
for development drilling, as well as integrity management. In
addition, we expect to spend approximately $100-$150 million of
growth capital expenditures to fund pre-investment for
infrastructure supporting growth in the base business in 2023 and
beyond (i.e. Jubilee Southeast and Winterfell). In Mauritania and
Senegal, we expect to spend approximately $250 million on Tortue
Phase 1, with an incremental $50 million on increased activity on
Tortue Phase 2 and the BirAllah and Yakaar-Teranga hubs to advance
the commercialization of our substantial gas resources. If Ghana
pre-emption is completed, we would expect capital expenditures to
reduce by up to $40 million.
(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) 4Q
net production numbers include pro forma impact from the Oxy Ghana
acquisition assuming October 1, 2021 effective date
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss fourth
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 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 and
excludes non-recurring activity such as acquisitions, divestitures
and NOC financing. 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
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Revenues and other income:
Oil and gas revenue
$
572,558
$
274,153
$
1,332,013
$
804,033
Gain on sale of assets
—
92,163
1,564
92,163
Other income, net
52
—
262
2
Total revenues and other income
572,610
366,316
1,333,839
896,198
Costs and expenses:
Oil and gas production
134,135
103,850
346,006
338,477
Facilities insurance modifications,
net
(5,081
)
2,606
(1,586
)
13,161
Exploration expenses
23,930
10,323
65,382
84,616
General and administrative
24,901
14,776
91,529
72,142
Depletion, depreciation and
amortization
174,605
159,472
467,221
485,862
Impairment of long-lived assets
—
3,139
—
153,959
Interest and other financing costs,
net
37,644
26,617
128,371
109,794
Derivatives, net
17,579
51,956
270,185
17,180
Other expenses, net
9,108
9,840
10,111
37,802
Total costs and expenses
416,821
382,579
1,377,219
1,312,993
Income (loss) before income taxes
155,789
(16,263
)
(43,380
)
(416,795
)
Income tax expense (benefit)
57,073
(24,219
)
34,456
(5,209
)
Net income (loss)
$
98,716
$
7,956
$
(77,836
)
$
(411,586
)
Net income (loss) per share:
Basic
$
0.22
$
0.02
$
(0.19
)
$
(1.02
)
Diluted
$
0.22
$
0.02
$
(0.19
)
$
(1.02
)
Weighted average number of shares used to
compute net income (loss) per share:
Basic
443,451
405,455
416,943
405,212
Diluted
456,557
406,388
416,943
405,212
Dividends declared per common share
$
—
$
—
$
—
$
0.0452
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
December 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
131,620
$
149,027
Receivables, net
177,526
78,813
Other current assets
232,806
172,451
Total current assets
541,952
400,291
Property and equipment, net
4,183,987
3,320,913
Other non-current assets
214,712
146,389
Total assets
$
4,940,651
$
3,867,593
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
184,403
$
221,430
Accrued liabilities
250,670
203,260
Current maturities of long-term debt
30,000
7,500
Other current liabilities
65,879
28,009
Total current liabilities
530,952
460,199
Long-term liabilities:
Long-term debt, net
2,590,495
2,103,931
Deferred tax liabilities
711,038
573,619
Other non-current liabilities
578,929
289,690
Total long-term liabilities
3,880,462
2,967,240
Total stockholders’ equity
529,237
440,154
Total liabilities and stockholders’
equity
$
4,940,651
$
3,867,593
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Operating activities:
Net income (loss)
$
98,716
$
7,956
$
(77,836
)
$
(411,586
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
177,397
162,089
477,801
495,209
Deferred income taxes
(808
)
(46,302
)
(69,174
)
(42,587
)
Unsuccessful well costs and leasehold
impairments
2,047
(1,181
)
18,819
23,157
Impairment of long-lived assets
—
3,139
—
153,959
Change in fair value of derivatives
18,416
54,956
277,705
22,800
Cash settlements on derivatives,
net(1)
(81,512
)
(27,848
)
(231,767
)
(10,944
)
Equity-based compensation
7,640
6,314
31,651
32,706
Gain on sale of assets
—
(92,163
)
(1,564
)
(92,163
)
Loss on extinguishment of debt
4,402
9
19,625
2,902
Other
(775
)
9,249
(3,538
)
15,922
Changes in assets and liabilities:
Net changes in working capital
4,980
99,270
(67,378
)
6,770
Net cash provided by operating
activities
230,503
175,488
374,344
196,145
Investing activities
Oil and gas assets
(94,781
)
(162,330
)
(472,631
)
(379,593
)
Acquisition of oil and gas properties
(465,367
)
—
(465,367
)
—
Proceeds on sale of assets
1,027
97,405
6,354
99,118
Notes receivable from partners
(21
)
(11,538
)
(41,733
)
(65,112
)
Net cash used in investing activities
(559,142
)
(76,463
)
(973,377
)
(345,587
)
Financing activities:
Borrowings on long-term debt
475,000
—
725,000
300,000
Payments on long-term debt
(650,000
)
(250,000
)
(1,050,000
)
(250,000
)
Advances under production prepayment
agreement
—
—
—
50,000
Net proceeds from issuance of senior
notes
395,000
—
839,375
—
Redemption of senior secured notes
—
—
—
—
Purchase of treasury stock / tax
withholdings
—
—
(1,100
)
(4,947
)
Net proceeds from issuance of common
stock
136,006
—
136,006
—
Dividends
—
(97
)
(512
)
(19,271
)
Deferred financing costs
(7,313
)
(1,352
)
(24,604
)
(5,922
)
Net cash provided by (used in) financing
activities
348,693
(251,449
)
624,165
69,860
Net increase (decrease) in cash, cash
equivalents and restricted cash
20,054
(152,424
)
25,132
(79,582
)
Cash, cash equivalents and restricted cash
at beginning of period
154,842
302,188
149,764
229,346
Cash, cash equivalents and restricted cash
at end of period
$
174,896
$
149,764
$
174,896
$
149,764
_____________________________________
(1)
Cash settlements on commodity hedges were $(81.5) million
and $(25.5) million for the three months ended December 31, 2021
and 2020, respectively, and $(224.4) million and $(2.7) million for
the years ended December 31, 2021 and 2020, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three months ended
Years ended
December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020
Net income (loss)
$
98,716
$
7,956
$
(77,836
)
$
(411,586
)
Exploration expenses
23,930
10,323
65,382
84,616
Facilities insurance modifications,
net
(5,081
)
2,606
(1,586
)
13,161
Depletion, depreciation and
amortization
174,605
159,472
467,221
485,862
Impairment of long-lived assets
—
3,139
—
153,959
Equity-based compensation
7,640
6,314
31,651
32,706
Derivatives, net
17,579
51,956
270,185
17,180
Cash settlements on commodity
derivatives
(81,529
)
(25,526
)
(224,421
)
(2,715
)
Restructuring and other
2,811
10,208
3,823
29,167
Other, net
6,297
4,743
6,288
10,215
Gain on sale of assets
—
(92,163
)
(1,564
)
(92,163
)
Interest and other financing costs,
net
37,644
26,617
128,371
109,794
Income tax expense (benefit)
57,073
(24,219
)
34,456
(5,209
)
EBITDAX
339,685
$
141,426
$
701,970
$
424,987
Acquired Ghana Interest EBITDAX(1)
267,166
Pro Forma EBITDAX
$
969,136
________________________________________
(1)
Twelve Months Ended December 31, 2021 EBITDAX for the
Acquired Ghana Interest of $267.2 million is comprised of Revenues
of $332.3 million less direct operating expenses of $65.1 million
for the acquired properties. Consistent with the definition of
EBITDAX, $1.9 million of Facilities insurance modifications, net
has been excluded from the results to present the Acquired Ghana
Interests Twelve Months Ended December 31, 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
(Loss)
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Net income (loss)
$
98,716
$
7,956
$
(77,836
)
$
(411,586
)
Derivatives, net
17,579
51,956
270,185
17,180
Cash settlements on commodity
derivatives
(81,529
)
(25,526
)
(224,421
)
(2,715
)
Gain on sale of assets
—
(92,163
)
(1,564
)
(92,163
)
Facilities insurance modifications,
net
(5,081
)
2,606
(1,586
)
13,161
Impairment of long-lived assets
—
3,139
—
153,959
Restructuring and other
2,811
10,208
3,823
29,167
Other, net
6,310
4,743
6,102
10,215
Loss on extinguishment of debt
4,402
9
19,625
2,902
Total selected items before tax
(55,508
)
(45,028
)
72,164
131,706
Income tax expense (benefit) on
adjustments(1)
17,716
(12,056
)
(19,829
)
(6,288
)
Impact of valuation adjustments and U.S.
tax law changes
556
—
556
26,001
Adjusted net income (loss)
$
61,480
(49,128
)
(24,945
)
(260,167
)
Net income (loss) per diluted share
$
0.22
$
0.02
$
(0.19
)
$
(1.02
)
Derivatives, net
0.04
0.13
0.65
0.04
Cash settlements on commodity
derivatives
(0.18
)
(0.06
)
(0.54
)
(0.01
)
Gain on sale of assets
—
(0.23
)
—
(0.23
)
Facilities insurance modifications,
net
(0.01
)
0.01
—
0.03
Impairment of long-lived assets
—
0.01
—
0.38
Restructuring and other
0.01
0.02
0.01
0.08
Other, net
0.01
0.01
0.01
0.03
Loss on extinguishment of debt
0.01
—
0.05
0.01
Total selected items before tax
(0.12
)
(0.11
)
0.18
0.33
Income tax expense (benefit) on
adjustments(1)
0.03
(0.03
)
(0.05
)
(0.01
)
Impact of valuation adjustments and U.S.
tax law changes
—
—
—
0.06
Adjusted net income (loss) per diluted
share
$
0.13
$
(0.12
)
$
(0.06
)
$
(0.64
)
Weighted average number of diluted
shares
456,557
406,388
416,943
405,212
______________________________________
(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,
2021
2020
2021
2020
Reconciliation of free cash
flow:
Net cash provided by operating
activities
$
230,503
$
175,488
$
374,344
$
196,145
Net cash used for oil and gas assets -
base business
(79,680
)
(46,529
)
(267,072
)
(235,426
)
Base business free cash flow
150,823
128,959
107,272
(39,281
)
Net cash used for oil and gas assets -
Mauritania/Senegal
(15,101
)
(115,801
)
(205,559
)
(144,167
)
Free cash flow(1)
$
135,722
$
13,158
$
(98,287
)
$
(183,448
)
_____________________________________
(1)
Commencing in the fourth quarter
of 2021, the Company refined its definition of free cash flow to
exclude non-recurring activity such as acquisitions, divestitures
and NOC financing that may affect the comparability of results in
order 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,
2021(2)
2020
2021(2)
2020
Net Volume Sold
Oil (MMBbl)
7.176
6.170
18.525
20.531
Gas (MMcf)
1.280
1.416
4.904
5.867
NGL (MMBbl)
0.142
0.146
0.508
0.602
Total (MMBoe)
7.531
6.552
19.850
22.111
Total (Boepd)
81.862
71.217
54.384
60.412
Revenue
Oil sales
$
561,196
$
268,777
$
1,298,577
$
786,159
Gas sales
6,171
3,560
18,898
11,706
NGL sales
5,191
1,816
14,538
6,168
Total sales
572,558
274,153
1,332,013
804,033
Cash settlements on commodity
derivatives
(81,529
)
(25,526
)
(224,421
)
(2,715
)
Realized revenue
$
491,029
$
248,627
$
1,107,592
$
801,318
Oil and Gas Production Costs
$
134,135
$
103,850
$
346,006
$
338,477
Sales per Bbl/Mcf/Boe
Oil sales per Bbl
$
78.20
$
43.56
$
70.10
$
38.29
Gas sales per Mcf
4.82
2.51
3.85
2.00
NGL sales per Bbl
36.56
12.44
28.62
10.25
Total sales per Boe
76.02
41.84
67.10
36.36
Cash settlements on commodity derivatives
per oil Bbl(1)
(11.36
)
(4.14
)
(12.11
)
(0.13
)
Realized revenue per Boe
65.20
37.95
55.80
36.24
Oil and gas production costs per
Boe
$
17.81
$
15.85
$
17.44
$
15.31
_____________________________________
(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.
(2)
Includes activity related to our
acquisition of additional interests in Ghana commencing after the
acquisition date.
Kosmos was underlifted by approximately
0.3 million barrels as of December 31, 2021.
Hedging Summary
As of December 31,
2021(1)
(Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2022:
Three-way collars
Dated Brent
4,500
56.67
43.33
76.91
Three-way collars
NYMEX WTI
1,000
65.00
50.00
85.00
Two-way collars
Dated Brent
7,000
63.57
—
84.29
2023:
Three-way collars
Dated Brent
2,000
65.00
47.50
95.25
_______________________________________
(1)
Please see the Company’s filed 10-K for full disclosure on
hedging material. Includes hedging position as of December 31, 2021
and hedges added since year-end.
(2)
“Floor” represents floor price for collars or swaps and
strike price for purchased puts.
Note: Excludes 1.6 MMBbls of sold (short)
calls with a strike price of $60.00 per Bbl in 2022.
2022 Guidance(1)
1Q2022
FY 2022 Guidance
Production(2,3)
70,000 - 73,000 boe per day
67,000 - 71,000 boe per day
Opex
$18.00 - $20.00 per boe
$16.00 - $18.00 per boe
DD&A
$21.00 - $23.00 per boe
G&A(~65% cash)
$24 - $26 million
$90 - $100 million
Exploration Expense
$5 - $10 million
$45 - $55 million
Net Interest
~$40 million/quarter
Tax
$10.00 - $12.00 per boe
Capital Expenditure
~$125 million
~$700 million
Note: Ghana / Equatorial Guinea revenue
calculated by number of cargos.
(1)
Assumes no pre-emption.
(2)
1Q 2022 cargos forecast - Ghana: 4 cargos / Equatorial
Guinea: 1 cargo. FY 2022 Ghana: 15 cargos / Equatorial Guinea 3.5
cargos. Average cargo size ~950,000 barrels of oil.
(3)
U.S. Gulf of Mexico Production - 1Q 2022 forecast
18,500-19,500 boe per day. FY2022: 18,500-20,500 boe per day.
Oil/Gas/NGL split for 2022: ~80%/~12%/~8%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220227005123/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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