Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today the
financial and operating results for the fourth quarter of 2019. For
the quarter, the Company generated a net loss of $36 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 $37 million or $0.09 per diluted share for
the fourth quarter of 2019.
FOURTH QUARTER 2019 HIGHLIGHTS
- Net cash provided by operating activities - $228 million; free
cash flow1 (non-GAAP) - $139 million
- Sales - 7.5 million barrels of oil equivalent (boe)
- Realized oil and gas revenues, excluding the impact of hedging
program - $59.76 per boe
- Production expense - $136 million, or $18.12 per boe
- General and administrative expenses - $21 million, $16 million
cash expense and $5 million non-cash equity based compensation
expense
- Capital expenditure - $122 million
At quarter end, the Company was in a net overlift position of
approximately 0.3 million barrels of oil.
Fourth quarter results included a mark-to-market loss of $36
million related to the Company’s oil derivative contracts. As of
the quarter end and including recently executed hedges, Kosmos has
approximately 18.0 million barrels of Brent oil hedged covering
2020 and 2021.
Kosmos exited the fourth quarter of 2019 with approximately $825
million of liquidity, total debt of $2.05 billion, and $1.82
billion of net debt.
Commenting on the company’s 2019 performance, Chairman and Chief
Executive Officer Andrew G. Inglis said: “2019 was a strong year
for Kosmos with the business generating approximately $250 million
of free cash flow, the third successive year of material organic
cash generation. Our free cash flow enabled us to reduce our
leverage and initiate the payment of our dividend, in line with our
strategy of protecting the balance sheet and delivering shareholder
returns.
It was also one of the most active years in the company’s
history with over 1.7 million man hours operating five wells.
Importantly, this activity was executed with zero lost time or
recordable incidents, a best-in-class safety performance. Our
exploration and appraisal program delivered five successes from
seven wells drilled and we continue to make excellent progress with
our developments in Mauritania and Senegal with Tortue Phase 1
around 25 percent complete at year-end.
Kosmos is integrating climate risk into its business strategy
and we see the energy transition as a major opportunity for
progressive companies like Kosmos to play an important role. Today,
we will present our climate policy as part of our wider
environmental, social and governance responsibilities, with a
commitment to both transparency and emissions reduction. With a
diverse portfolio of advantaged oil and gas assets, Kosmos is
well-positioned to deliver shareholder value while advancing the
societies in which we work.”
OPERATIONAL UPDATE
Total net production in the fourth quarter of 2019 averaged
approximately 65,200 barrels of oil equivalent per day
(boepd)(2).
U.S. Gulf of Mexico
U.S. Gulf of Mexico production averaged approximately 26,000
boepd net (82% oil) during the fourth quarter. Record fourth
quarter production was driven by strong performance at Odd Job and
initial production from new wells from the Odd Job, Gladden, and
Nearly Headless Nick fields. During the fourth quarter, Kosmos
recorded approximately $75 million of exploration expense related
to the Resolution-1 and Oldfield-1 unsuccessful wells.
Ghana
During the fourth quarter of 2019, net production from Ghana
averaged approximately 27,800 barrels of oil per day (bopd). As
forecast, Kosmos lifted four cargos from Ghana during the fourth
quarter. The Jubilee gas enhancement work program that was
rescheduled from the fourth quarter of 2019 into the first quarter
of 2020, was completed in early February with production rates of
around 90,000 bopd now being achieved.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 11,400
bopd net in the fourth quarter of 2019 and Kosmos lifted one and a
half cargos from Equatorial Guinea during the quarter.
In late October, the S-5 well encountered approximately 39
meters of net oil pay in good-quality Santonian reservoir. The well
is located within tieback range of the Ceiba FPSO and work is
currently ongoing to establish the scale of the discovered resource
and evaluate the optimal development solution. The well was drilled
in approximately 800 meters of water to a total measured depth of
around 4,400 meters.
Mauritania & Senegal
The Greater Tortue Ahmeyim project located offshore Mauritania
and Senegal remains on track with Phase 1 approximately 25 percent
complete. Pre-FEED work is ongoing for Phases 2 and 3 and these
phases are expected to expand capacity to almost 10 MTPA of LNG
export capacity.
On February 11, 2020, Kosmos and its partners signed a Sale and
Purchase Agreement (SPA) with BP Gas Marketing Limited for 2.45
million tonnes per annum of liquified natural gas from Phase 1 of
the project for an initial term of up to 20 years. Signing the SPA
has allowed Kosmos to book approximately 100 mmboe of proven
reserves associated with the project.
In October, Kosmos announced that the Orca-1 exploration well
made a major gas discovery offshore Mauritania in the BirAllah
area. Orca was the largest deepwater hydrocarbon discovery in 2019
and the results continue the 100 percent success rate from nine
wells targeting the inboard gas trend in Mauritania/Senegal.
2020 Capital Expenditure Budget
Kosmos expects to spend approximately $325 to $375 million in
2020, excluding Mauritania and Senegal, with spending focused on
maintaining existing production and growth through infrastructure
led exploration. In Mauritania and Senegal, total 2020 capital
expenditure for Kosmos' approximately 30 percent working interest
is expected to be around $250 million and is expected to be funded
from proceeds from the previously announced and ongoing farm-down
process.
(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 2019 financial and operating results today at 10:00 a.m.
Central time (11:00 a.m. Eastern time). The live webcast of the
event is expected to last around 90 minutes and slides 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 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 U.S. Gulf of Mexico, as well as a world-class
gas development offshore Mauritania and Senegal. We also maintain a
sustainable exploration program balanced between proven basin
infrastructure-led exploration (Equatorial Guinea and U.S. Gulf of
Mexico), emerging basins (Mauritania, Senegal and Suriname) and
frontier basins (Cote d'Ivoire, Namibia, Sao Tome and Principe, and
South Africa). 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 2018
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, Change in
restricted cash, 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, 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,
2019
2018
2019
2018
Revenues and other income:
Oil and gas revenue
$
449,657
$
301,446
$
1,499,416
$
886,666
Gain on sale of assets
10,528
—
10,528
7,666
Other income, net
30
8,054
(35
)
8,037
Total revenues and other income
460,215
309,500
1,509,909
902,369
Costs and expenses:
Oil and gas production
136,297
73,066
402,613
224,727
Facilities insurance modifications,
net
(19,080
)
(14,857
)
(24,254
)
6,955
Exploration expenses
97,933
54,580
180,955
301,492
General and administrative
21,307
34,513
110,010
99,856
Depletion, depreciation and
amortization
147,675
121,228
563,861
329,835
Interest and other financing costs,
net
29,509
33,063
155,074
101,176
Derivatives, net
36,001
(267,537
)
71,885
(31,430
)
Gain on equity method investments, net
—
(13,244
)
—
(72,881
)
Other expenses, net
12,850
1,663
24,648
(6,501
)
Total costs and expenses
462,492
22,475
1,484,792
953,229
Income (loss) before income taxes
(2,277
)
287,025
25,117
(50,860
)
Income tax expense
33,496
101,460
80,894
43,131
Net income (loss)
$
(35,773
)
$
185,565
$
(55,777
)
$
(93,991
)
Net income (loss) per share:
Basic
$
(0.09
)
$
0.44
$
(0.14
)
$
(0.23
)
Diluted
$
(0.09
)
$
0.43
$
(0.14
)
$
(0.23
)
Weighted average number of shares used to
compute net income (loss) per share:
Basic
401,516
421,067
401,368
404,585
Diluted
401,516
426,826
401,368
404,585
Dividends declared per common share
$
0.0452
$
—
$
0.1808
$
—
Kosmos Energy Ltd.
Condensed Consolidated Balance
Sheets
(In thousands,
unaudited)
December 31,
December 31,
2019
2018
Assets
Current assets:
Cash and cash equivalents
$
224,502
$
173,515
Receivables, net
174,293
140,006
Other current assets
167,762
196,179
Total current assets
566,557
509,700
Property and equipment, net
3,642,332
3,459,701
Other non-current assets
108,343
118,788
Total assets
$
4,317,232
$
4,088,189
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
149,483
$
176,540
Accrued liabilities
380,704
195,596
Other current liabilities
8,914
12,172
Total current liabilities
539,101
384,308
Long-term liabilities:
Long-term debt, net
2,008,063
2,120,547
Deferred tax liabilities
653,221
477,179
Other non-current liabilities
275,145
164,677
Total long-term liabilities
2,936,429
2,762,403
Total stockholders’ equity
841,702
941,478
Total liabilities and stockholders’
equity
$
4,317,232
$
4,088,189
Kosmos Energy Ltd.
Condensed Consolidated
Statements of Cash Flow
(In thousands,
unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2019
2018
2019
2018
Operating activities:
Net income (loss)
$
(35,773
)
$
185,565
$
(55,777
)
$
(93,991
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depletion, depreciation and amortization
(including deferred financing costs)
149,958
123,538
573,118
339,214
Deferred income taxes
(20,530
)
93,240
(90,370
)
9,145
Unsuccessful well costs and leasehold
impairments
80,452
8,251
87,813
123,199
Change in fair value of derivatives
33,433
(262,017
)
67,436
(29,960
)
Cash settlements on derivatives,
net(1)
(6,757
)
(35,237
)
(31,458
)
(137,942
)
Equity-based compensation
4,988
9,255
32,370
35,230
Gain on sale of assets
(10,528
)
—
(10,528
)
(7,666
)
Loss on extinguishment of debt
—
—
24,794
4,324
Undistributed equity in earnings
—
(5,280
)
—
(45
)
Other
(531
)
1,628
9,069
2,865
Changes in assets and liabilities:
Net changes in working capital
33,162
51,301
21,683
16,118
Net cash provided by operating
activities
227,874
170,244
628,150
260,491
Investing activities
Oil and gas assets
(99,575
)
(64,501
)
(340,217
)
(213,806
)
Other property
(3,505
)
(4,375
)
(11,796
)
(7,935
)
Acquisition of oil and gas properties, net
of cash acquired
—
—
—
(961,764
)
Return of investment from KTIPI
—
42,036
—
184,664
Proceeds on sale of assets
15,000
—
15,000
13,703
Notes receivable from partners
(7,353
)
—
(26,918
)
—
Net cash used in investing activities
(95,433
)
(26,840
)
(363,931
)
(985,138
)
Financing activities:
Borrowings on long-term debt
—
175,000
175,000
1,175,000
Payments on long-term debt
(100,000
)
(150,000
)
(425,000
)
(325,000
)
Net proceeds from issuance of senior
notes
—
—
641,875
—
Redemption of senior secured notes
—
—
(535,338
)
—
Purchase of treasury stock / tax
withholdings
—
(188,356
)
(1,983
)
(206,051
)
Dividends
(18,152
)
—
(72,599
)
—
Deferred financing costs
(1
)
(1,927
)
(2,444
)
(38,672
)
Net cash provided by (used in) financing
activities
(118,153
)
(165,283
)
(220,489
)
605,277
Net increase (decrease) in cash, cash
equivalents and restricted cash
14,288
(21,879
)
43,730
(119,370
)
Cash, cash equivalents and restricted cash
at beginning of period
215,058
207,495
185,616
304,986
Cash, cash equivalents and restricted cash
at end of period
$
229,346
$
185,616
$
229,346
$
185,616
_____________________________________
(1)
Cash settlements on commodity hedges were
$(9.3) million and $(29.8) million for the three months ended
December 31, 2019 and 2018, respectively, and $(36.3) million and
$(137.1) million for the years ended December 31, 2019 and 2018,
respectively.
Kosmos Energy Ltd.
Equity Method
Investment
(In thousands,
unaudited)
Three months ended
Year ended
December 31, 2018
December 31, 2018
Revenues and other income:
Oil and gas revenue
$
121,141
$
721,299
Other income
(521
)
(477
)
Total revenues and other income
120,620
720,822
Costs and expenses:
Oil and gas production
32,319
147,685
Depletion and depreciation
17,988
126,983
Other expenses, net
639
429
Total costs and expenses
50,946
275,097
Income before income taxes
69,674
445,725
Income tax expense
22,933
156,981
Net income
$
46,741
$
288,744
Kosmos' share of net income
$
23,371
$
144,372
Basis difference amortization(1)
10,127
71,491
Equity in earnings - KTIPI
$
13,244
$
72,881
_____________________________________
(1)
The basis difference, which is associated
with oil and gas properties and subject to amortization, has been
allocated to the Ceiba Field and Okume Complex. We amortized the
basis difference using the unit-of-production method.
Kosmos Energy Ltd.
EBITDAX
(In thousands,
unaudited)
Three Months Ended
Three Months Ended
December 31, 2019
December 31, 2018
Kosmos
Kosmos
Equatorial Guinea (Equity
Method)(1)
Total
Net income (loss)
$
(35,773
)
$
185,565
$
13,244
$
198,809
Exploration expenses
97,933
54,580
352
54,932
Facilities insurance modifications,
net
(19,080
)
(14,857
)
—
(14,857
)
Depletion, depreciation and
amortization
147,675
121,228
19,120
140,348
Equity-based compensation
4,988
9,255
—
9,255
Derivatives, net
36,001
(267,537
)
—
(267,537
)
Cash settlements on commodity
derivatives
(9,324
)
(29,794
)
—
(29,794
)
Inventory impairment and other
17,182
295
—
295
Disputed charges and related costs
2,486
(32
)
—
(32
)
Gain on sale of assets
(10,528
)
—
—
—
Gain on equity method investment -
KTIPI
—
(13,244
)
—
(13,244
)
Interest and other financing costs,
net
29,509
33,063
—
33,063
Income tax expense
33,496
101,460
11,467
112,927
EBITDAX
$
294,565
$
179,982
$
44,183
$
224,165
Years ended
Years ended
December 31, 2019
December 31, 2018
Kosmos
Kosmos
Equatorial Guinea (Equity
Method)(2)
Total
Net income (loss)
$
(55,777
)
$
(93,991
)
$
72,881
$
(21,110
)
Exploration expenses
180,955
301,492
352
301,844
Facilities insurance modifications,
net
(24,254
)
6,955
—
6,955
Depletion, depreciation and
amortization
563,861
329,835
134,982
464,817
Equity-based compensation
32,370
35,230
—
35,230
Derivatives, net
71,885
(31,430
)
—
(31,430
)
Cash settlements on commodity
derivatives
(36,341
)
(137,053
)
—
(137,053
)
Inventory impairment and other
27,350
288
—
288
Disputed charges and related costs
4,149
(9,753
)
—
(9,753
)
Gain on sale of assets
(10,528
)
(7,666
)
—
(7,666
)
Gain on equity method investment -
KTIPI
—
(72,881
)
—
(72,881
)
Interest and other financing costs,
net
155,074
101,176
—
101,176
Income tax expense
80,894
43,131
78,491
121,622
EBITDAX
$
989,638
$
465,333
$
286,706
$
752,039
_____________________________________
(1)
For the three months ended December 31,
2018 we have presented separately our 50% share of the results from
operations and amortization of our basis difference for the
Equatorial Guinea investment as we accounted for such investment
under the equity method during this period.
(2)
For the year ended December 31, 2018, we
have presented separately our 50% share of the results from
operations and amortization of our basis difference for the
Equatorial Guinea investment, as we accounted for such investment
under the equity method through this date.
Kosmos Energy Ltd.
Adjusted Net Income
(In thousands, except per
share amounts, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2019
2018
2019
2018
Net income (loss)
$
(35,773
)
$
185,565
$
(55,777
)
$
(93,991
)
Derivatives, net
36,001
(267,537
)
71,885
(31,430
)
Cash settlements on commodity
derivatives
(9,324
)
(29,794
)
(36,341
)
(137,053
)
Gain on sale of assets
(10,528
)
—
(10,528
)
(7,666
)
Facilities insurance modifications,
net
(19,080
)
(14,857
)
(24,254
)
6,955
Inventory impairment and other
17,182
295
27,350
288
Disputed charges and related costs
2,486
(32
)
4,149
(9,753
)
Impairment of suspended well costs
—
—
—
57,772
Gain on exit of Essaouira
—
(8,043
)
0
(8,043
)
Loss on extinguishment of debt
—
—
24,794
4,324
Total selected items before tax
16,737
(319,968
)
57,055
(124,606
)
Income tax expense on adjustments(1)
(17,593
)
94,977
(22,573
)
29,653
Adjusted net loss
$
(36,629
)
$
(39,426
)
$
(21,295
)
$
(188,944
)
Net income (loss) per diluted share
$
(0.09
)
$
0.43
$
(0.14
)
$
(0.23
)
Derivatives, net
0.09
(0.62
)
0.18
(0.08
)
Cash settlements on commodity
derivatives
(0.02
)
(0.07
)
(0.09
)
(0.34
)
Gain on sale of assets
(0.03
)
—
(0.03
)
(0.02
)
Facilities insurance modifications,
net
(0.05
)
(0.03
)
(0.06
)
0.02
Inventory impairment and other
0.04
—
0.07
—
Disputed charges and related costs
0.01
—
0.01
(0.02
)
Impairment of suspended well costs
—
—
—
0.14
Gain on exit of Essaouira
—
(0.02
)
—
(0.02
)
Loss on extinguishment of debt
—
—
0.06
0.01
Total selected items before tax
0.04
(0.74
)
0.14
(0.31
)
Income tax expense on adjustments(1)
(0.04
)
0.22
(0.05
)
0.07
Adjusted net loss per diluted share
$
(0.09
)
$
(0.09
)
$
(0.05
)
$
(0.47
)
Weighted average number of diluted
shares
401,516
426,826
401,368
404,585
_____________________________________
(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
Year ended
December 31,
2019
December 31,
2019
Reconciliation of net cash provided by
operating activities to free cash flow:
Net cash provided by operating
activities
$
227,874
$
628,150
Net cash used in investing activities
(95,433
)
(363,931
)
Other cash used in financing
activities(1)
(1
)
(22,889
)
Change in restricted cash
6,568
7,256
Free cash flow (before
dividends)
$
139,008
$
248,586
_____________________________________
(1)
Amounts consist of costs related to the
redemption of the senior secured notes, issuance of senior notes
and other long-term debt and the purchase of treasury stock.
Operational Summary(1)
(In thousands, except barrel
and per barrel data, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2019
2018
2019
2018
Net Volume Sold
Oil (MMBbl)
Kosmos
7.092
4.596
23.331
12.673
Equity method investment - Equatorial
Guinea
—
0.950
—
5.228
Total Oil (MMBbl)
7.092
5.546
23.331
17.901
Gas (MMcf)
1.671
1.959
6.323
2.268
NGL (MMBbl)
0.154
0.154
0.548
0.179
Total (MMBoe)
7.525
6.027
24.933
18.458
Revenue
Oil sales:
Kosmos
$
444,019
$
290,856
$
1,475,706
$
874,382
Equity method investment - Equatorial
Guinea
—
60,570
—
360,649
Total Oil sales
444,019
351,426
1,475,706
1,235,031
Gas sales
3,823
6,126
15,599
7,101
NGL sales
1,815
4,464
8,111
5,183
Total sales
449,657
362,016
1,499,416
1,247,315
Cash settlements on commodity
derivatives
(9,324
)
(29,794
)
(36,341
)
(137,053
)
Realized revenue
$
440,333
$
332,222
$
1,463,075
$
1,110,262
Oil and Gas Production Costs
Kosmos
$
136,297
$
73,066
$
402,613
$
224,727
Equity method investment - Equatorial
Guinea
—
16,160
—
73,843
Total oil and gas production costs
$
136,297
$
89,226
$
402,613
$
298,570
Oil sales per Bbl:
Kosmos
$
62.61
$
63.28
$
63.25
$
69.00
Equity method investment - Equatorial
Guinea
—
63.76
—
68.98
Total Oil sales per Bbl
62.61
63.37
63.25
68.99
Gas sales per Mcf
2.29
3.13
2.47
3.13
NGL sales per Bbl
11.79
28.91
14.80
28.96
Total sales per Boe
59.76
60.06
60.14
67.58
Cash settlements on commodity derivatives
per oil Bbl(2)
(1.31
)
(6.48
)
(1.56
)
(10.81
)
Realized revenue per Boe(3)
58.52
55.12
58.68
60.15
Oil and gas production costs per Boe:
Kosmos
$
18.12
$
14.39
$
16.15
$
16.98
Equity method investment - Equatorial
Guinea
—
$
17.01
—
$
14.12
Total oil and gas production costs
18.12
14.80
16.15
16.18
_____________________________________
(1)
For the three months and year ended
December 31, 2018, we have presented separately our 50% share of
the results from operations for the Equatorial Guinea investment,
as we accounted for such investment under the equity method during
these periods.
(2)
Cash settlements on commodity derivatives
are only related to Kosmos and are calculated on a per barrel basis
using Kosmos' Net Oil Volumes Sold.
(3)
Realized revenue includes revenue from
Kosmos, Equatorial Guinea (equity method investment), and Cash
settlements on commodity derivatives; on a per Boe basis realized
revenue is calculated using the total Net Volume Sold from both
Kosmos and Equatorial Guinea (equity method investment).
Kosmos was overlifted by approximately 323
thousand barrels as of December 31, 2019.
Hedging Summary
As of December 31,
2019(1)
(Unaudited)
Weighted Average Price per
Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2020:
Three-way collars
Dated Brent
6,000
$
57.50
$
49.58
$
80.18
Swaps with sold puts
Dated Brent
2,000
60.53
48.75
—
Put spread
Dated Brent
6,000
59.17
50.00
—
2021:
Swaps with sold puts
Dated Brent
4,000
$
60.28
$
48.75
$
—
_____________________________________
(1)
Please see the Company’s filed 10-K for
full disclosure on hedging material. Includes hedging position as
of December 31, 2019 and hedges added since year-end.
(2)
“Floor” represents floor price for collars
or swaps and strike price for purchased puts.
Note: Excludes 8.0 MMBbls of sold (short)
calls with a strike price of $85.00 per Bbl in 2020 and 6.0 MMBbls
of sold (short) calls with a strike price of $71.67 per Bbl in
2021.
2020 Guidance
1Q2020
FY 2020
Production(1,2)
63,000 - 67,000 boe per day
62,000 - 70,000 boe per day
Opex
$14.50 - $16.50 per boe
$14.50 - $16.50 per boe
DD&A
$22.00 - $24.00 per boe
$22.00 - $24.00 per boe
G&A(3)
$30 - $34 million
$115 - $125 million
Exploration Expense
~$36 - $40 million(4)
~$120 million
Net Interest
$26 - $30 million per quarter
Tax
$2.00 - $4.00 per boe
Capex(5)
$325 - $375 million in FY
2020
_____________________________________
Note: Ghana / Equatorial Guinea revenue
calculated by number of cargos.
(1)
1Q 2020 cargo forecast - Ghana: 1 cargo /
Equatorial Guinea 1 cargo. FY 2020 Ghana: 10 cargos / Equatorial
Guinea 4.5 cargos. Average cargo sizes 950,000 barrels of oil.
(2)
GoM Production - 1Q 2020: 26,000-29,000
boe per day / FY 2020: 24,000 - 28,000 boe per day. Oil/Gas/NGL
split for 2020: GoM: ~80%/~15%/~5%.
(3)
G&A - Approximately 70% cash.
(4)
Excludes dry hole expense of approximately
$10 million in 1Q 2020 related to Oldfield.
(5)
Excludes Mauritania and Senegal
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200223005029/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Rhys Williams +1-214-445-9693 rwilliams@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
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