Kosmos Energy Announces Successful RCF Re-Financing and RBL Re-Determination
April 01 2022 - 2:00AM
Business Wire
Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”)
announced today that it has successfully re-financed its revolving
credit facility (“RCF”) and completed the semi-annual
re-determination of its reserve-based lending (“RBL”) facility.
Through these financing activities and strong free cash flow in the
first quarter of 2022, liquidity has been further strengthened.
Revolving Credit
Facility
Kosmos has re-financed its RCF with a total capacity of $250
million while extending the maturity to the end of 2024. The
reduced RCF size will offset an increase in the margin, resulting
in slightly lower interest expenses going forward. In anticipation
of the cessation of the London Interbank Offered Rate (“LIBOR”),
this is one of the energy industry’s first credit facilities linked
to the Secured Overnight Financing Rate (“SOFR”). The facility
remains undrawn.
Reserve-Based Lending
Facility
Kosmos also announced today that in conjunction with the spring
re-determination of the RBL, the Company’s lending syndicate
approved a borrowing base capacity of $1.25 billion with current
outstanding borrowings of $0.9 billion. Total commitments as of
April 1, 2022 were $1.25 billion.
The RBL facility is secured against the Company’s production
assets in Ghana (excluding the incremental interests acquired from
Occidental Petroleum in October 2021) and Equatorial Guinea with
the first amortization payment scheduled for March 2024.
Liquidity
Total liquidity at the end of the first quarter of 2022
increased to approximately $0.9 billion, including the impact of
the reduced RCF size.
“We are pleased to have successfully completed the RCF
re-financing and our RBL redetermination, which secures the
liquidity necessary to support the growth of our differentiated
portfolio. We appreciate the continued support of our key
relationship banks. With strong free cash flow generation, coupled
with the recent receipt of pre-emption proceeds, we are making
excellent progress in reducing both leverage and absolute debt
while growing liquidity. At current oil prices we expect leverage
to be below our 1.5x target by year-end 2022 and are well on the
way to achieving that outcome” said Neal Shah, Chief Financial
Officer.
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas
exploration and production company focused along the Atlantic
Margins. Our key assets include production offshore Ghana,
Equatorial Guinea and U.S. Gulf of Mexico, as well as a world-class
gas development offshore Mauritania and Senegal. Kosmos is listed
on the New York Stock Exchange and London Stock Exchange and is
traded under the ticker symbol KOS. As an ethical and transparent
company, Kosmos is committed to doing things the right way. The
Company’s Business Principles articulate our commitment to
transparency, ethics, human rights, safety and the environment.
Read more about this commitment in our Sustainability Report. For
additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that Kosmos
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Kosmos’ estimates and
forward-looking statements are mainly based on its current
expectations and estimates of future events and trends, which
affect or may affect its businesses and operations. Although Kosmos
believes that these estimates and forward-looking statements are
based upon reasonable assumptions, they are subject to several
risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will”
or other similar words are intended to identify forward-looking
statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
Kosmos, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements.
Further information on such assumptions, risks and uncertainties is
available in Kosmos’ Securities and Exchange Commission (“SEC”)
filings. Kosmos undertakes no obligation and does not intend to
update or correct these forward-looking statements to reflect
events or circumstances occurring after the date of this press
release, except as required by applicable law. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
Management does not provide a reconciliation for forward looking
non GAAP financial measures where it is unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
occurrence and the financial impact of various items that have not
yet occurred, are out of our control or cannot be reasonably
predicted. For the same reasons, management is unable to address
the probable significance of the unavailable information. Forward
looking non GAAP financial measures provided without the most
directly comparable GAAP financial measures may vary materially
from the corresponding GAAP financial measures.
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version on businesswire.com: https://www.businesswire.com/news/home/20220331005972/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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