Kosmos Energy Announces Third Quarter 2024 Results
Kosmos Energy reported Q3 2024 financial results with net income of $45 million ($0.09 per share). Key metrics include net production of 65,400 boepd, revenues of $408 million, and capital expenditures of $210 million. The company successfully issued $500 million in Senior Notes due 2031 and achieved first oil at Winterfell. Production highlights include Ghana averaging 40,500 boepd, US Gulf of Mexico at 16,900 boepd, and Equatorial Guinea at 8,000 boepd. The company plans to reduce 2025 capital expenditure guidance from $550 million to $400 million, focusing on cash generation and debt reduction.
Kosmos Energy ha riportato i risultati finanziari del terzo trimestre 2024 con un reddito netto di $45 milioni ($0,09 per azione). I principali indicatori includono una produzione netta di 65.400 boepd, ricavi di $408 milioni e spese in conto capitale di $210 milioni. L'azienda ha emesso con successo $500 milioni in Note Senior con scadenza nel 2031 e ha raggiunto il primo olio a Winterfell. Tra i punti salienti della produzione, il Ghana ha registrato una media di 40.500 boepd, il Golfo del Messico degli Stati Uniti ha raggiunto 16.900 boepd e la Guinea Equatoriale ha prodotto 8.000 boepd. L'azienda prevede di ridurre la guida delle spese in conto capitale per il 2025 da $550 milioni a $400 milioni, concentrandosi sulla generazione di cassa e sulla riduzione del debito.
Kosmos Energy reportó los resultados financieros del tercer trimestre de 2024 con un ingreso neto de $45 millones ($0.09 por acción). Los indicadores clave incluyen una producción neta de 65,400 boepd, ingresos de $408 millones y gastos de capital de $210 millones. La empresa emitió con éxito $500 millones en Notas Senior con vencimiento en 2031 y logró el primer petróleo en Winterfell. Los aspectos destacados de la producción incluyen Ghana con un promedio de 40,500 boepd, el Golfo de México de EE. UU. con 16,900 boepd y Guinea Ecuatorial con 8,000 boepd. La empresa planea reducir la guía de gastos de capital para 2025 de $550 millones a $400 millones, enfocándose en la generación de efectivo y la reducción de deudas.
Kosmos Energy는 2024년 3분기 재무 결과를 보고하고 순이익이 4,500만 달러($0.09 per share)를 기록했습니다. 주요 지표로는 하루 평균 65,400 boepd의 순 생산량, 4억 8백만 달러의 수익, 그리고 2억 1천만 달러의 자본 지출이 있습니다. 이 회사는 2031년에 만기가 도래하는 Senior Notes를 5억 달러 발행했으며 Winterfell에서 첫 번째 오일을 달성했습니다. 생산 하이라이트로는 가나가 하루 평균 40,500 boepd, 미국 멕시코만이 16,900 boepd, 적도 기니가 8,000 boepd를 기록했습니다. 이 회사는 2025년 자본 지출 가이드를 5억 5천만 달러에서 4억 달러로 줄일 계획이며, 현금 창출과 부채 감소에 집중하고 있습니다.
Kosmos Energy a annoncé les résultats financiers du troisième trimestre 2024 avec un revenu net de 45 millions de dollars (0,09 $ par action). Les indicateurs clés comprennent une production nette de 65 400 boepd, des revenus de 408 millions de dollars et des dépenses d'investissement de 210 millions de dollars. L'entreprise a réussi à émettre 500 millions de dollars en Obligations Senior arrivant à échéance en 2031 et a atteint le premier pétrole à Winterfell. Les points forts de la production incluent le Ghana avec une moyenne de 40 500 boepd, le Golfe du Mexique aux États-Unis avec 16 900 boepd, et la Guinée Équatoriale avec 8 000 boepd. L'entreprise prévoit de réduire les prévisions de dépenses d'investissement pour 2025 de 550 millions de dollars à 400 millions de dollars, en se concentrant sur la génération de liquidités et la réduction de la dette.
Kosmos Energy hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Nettogewinn von 45 Millionen US-Dollar (0,09 US-Dollar pro Aktie). Zu den wichtigen Kennzahlen gehören eine Nettoproduktion von 65.400 boepd, Erlöse von 408 Millionen US-Dollar und Investitionsausgaben von 210 Millionen US-Dollar. Das Unternehmen hat erfolgreich 500 Millionen US-Dollar an Senior Notes mit Fälligkeit 2031 begeben und erreichte das erste Öl in Winterfell. Produktionshighlights sind Ghana mit durchschnittlich 40.500 boepd, der US-Golf von Mexiko mit 16.900 boepd und Äquatorialguinea mit 8.000 boepd. Das Unternehmen plant, die Investitionsausgabenprognose für 2025 von 550 Millionen US-Dollar auf 400 Millionen US-Dollar zu senken und sich auf die Cash-Generierung und Schuldenreduzierung zu konzentrieren.
- Net income of $45 million ($0.09 per share) in Q3 2024
- 5% quarter-over-quarter production increase to 65,400 boepd
- Revenue generation of $408 million
- Successful $500 million Senior Notes issuance strengthening balance sheet
- Reduction in planned 2025 capex from $550M to $400M
- Increased RBL facility commitments by $145M to $1.35B
- Free cash flow negative at $(213) million in Q3
- Total long-term debt of $2.8 billion
- Higher costs in Equatorial Guinea infill drilling program
- Production issues at Winterfell third well due to sand production
- Delayed project sanction for Tiberius to second half 2025
Insights
Q3 results show mixed performance with
Operational metrics reveal encouraging trends across key assets. Ghana's Jubilee field maintains strong
THIRD QUARTER 2024 HIGHLIGHTS
- Net Production(2): ~65,400 barrels of oil equivalent per day (boepd), with sales of ~63,200 boepd
-
Revenues:
, or$408 million per boe (excluding the impact of derivative cash settlements)$70.18
-
Production expense:
($133 million per boe excluding$16.14 of production expenses associated with the Greater Tortue Ahmeyim (GTA) project)$39.7 million
-
Capital expenditures:
$210 million
-
Successfully issued
of new Senior Notes due 2031, with proceeds refinancing near-term bond maturities$500 million
-
In the US Gulf of
Mexico , achieved first oil at Winterfell, successfully completed the operated Kodiak-3 workover and the startup of the Odd Job subsea pump
-
Post quarter end, in
Equatorial Guinea startup of the first infill well, with gross production now around 30,000 barrels of oil per day (bopd)
Commenting on the Company’s third quarter 2024 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: "We continue to make good progress across the portfolio towards our production goal of ~90,000 boepd around the end of the year. As production rises and projects are completed, we plan to significantly reduce capital expenditure.
Looking ahead to 2025, we are prioritizing cash generation from the business through disciplined capital allocation, and expect to use cash generated to de-lever the balance sheet. As a result, we are reducing our previously communicated 2025 capex guidance from
FINANCIAL UPDATE
In September, Kosmos successfully issued
In September 2024, we added two new lenders to the Reserve Based Lending Facility (RBL) syndicate, increasing total commitments by approximately
Kosmos exited the third quarter of 2024 with approximately
Net capital expenditure for the third quarter of 2024 was
For 2025, the Company is focused on maximizing cash generation through disciplined capital allocation. As a result, the Company expects total capital expenditure for 2025, to be approximately
The Company generated net cash provided by operating activities of approximately
OPERATIONAL UPDATE
Production
Total net production(2) in the third quarter of 2024 averaged approximately 65,400 boepd, representing a ~
Production in
At Jubilee (
The three year drilling campaign in
In the third quarter, Jubilee gas production net to Kosmos was approximately 4,700 boepd. As previously communicated, the onshore gas processing plant that receives Jubilee gas was offline for approximately two weeks for planned maintenance during the quarter. Gas production is now back at approximately 6,000 boepd net to Kosmos.
At TEN (
Production in the
The first two wells at Winterfell (
Kosmos-operated production enhancement projects for 2024 concluded in July, with the successful completion of the Kodiak-3 well workover and startup of the Odd Job subsea pump project, both outperforming forecasts.
Current production in the
On Tiberius, Kosmos (
Production in
The Noble Venturer rig arrived on location in July and resumed the two well infill campaign to be followed by drilling the Akeng Deep ILX prospect. Early in the fourth quarter, the rig successfully completed the first infill well at Ceiba and achieved first oil in mid-October, approximately two months later than originally planned. Drilling activity has commenced on the second infill well which is expected online later this month. Following completion of the infill campaign, the rig is contracted to drill the Kosmos-operated Akeng Deep ILX prospect in Block S, with results expected around the end of the year.
The Greater Tortue Ahmeyim liquefied natural gas (LNG) project continues to make good progress. The following milestones have been achieved:
- Drilling: The first batch of four wells has been completed with expected production capacity significantly higher than is required for first gas.
- Hub Terminal: The Hub Terminal has been handed over to operations.
- Subsea: The subsea workscope for first gas is mechanically complete.
- FPSO: Ready for startup shortly with first gas expected thereafter.
- FLNG: Cool down and commissioning of the FLNG vessel has commenced with first LNG expected around the end of the fourth quarter of 2024.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure.
(2) Production means net entitlement volumes. In
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss third quarter 2024 financial and operating results today, November 4, 2024, 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
About Kosmos Energy
Kosmos is a full-cycle, deepwater, independent oil and gas exploration and production company focused along the offshore Atlantic Margins. Our key assets include production offshore
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) debt modifications and extinguishments, (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 National Oil Company ("NOC") financing. NOC financing refers to the amounts funded by Kosmos under the Carry Advance Agreements that the Company has in place with the national oil companies of each of
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.
This release also contains certain forward-looking non-GAAP financial measures, including free cash flow. Due to the forward-looking nature of the aforementioned non-GAAP financial measures, management cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Amounts excluded from these non-GAAP measures in future periods could be significant.
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 |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues and other income: |
|
|
|
|
|
|
|
|
||||||||
Oil and gas revenue |
|
$ |
407,794 |
|
|
$ |
526,348 |
|
$ |
1,277,797 |
|
$ |
1,193,843 |
|
||
Other income, net |
|
|
37 |
|
|
|
198 |
|
|
109 |
|
|
(115 |
) |
||
Total revenues and other income |
|
|
407,831 |
|
|
|
526,546 |
|
|
1,277,906 |
|
|
1,193,728 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Oil and gas production |
|
|
133,471 |
|
|
|
138,782 |
|
|
377,822 |
|
|
286,297 |
|
||
Exploration expenses |
|
|
14,697 |
|
|
|
10,290 |
|
|
39,992 |
|
|
33,305 |
|
||
General and administrative |
|
|
23,298 |
|
|
|
25,120 |
|
|
76,724 |
|
|
77,731 |
|
||
Depletion, depreciation and amortization |
|
|
120,728 |
|
|
|
132,347 |
|
|
311,750 |
|
|
331,634 |
|
||
Interest and other financing costs, net |
|
|
22,112 |
|
|
|
25,440 |
|
|
75,839 |
|
|
74,379 |
|
||
Derivatives, net |
|
|
(15,254 |
) |
|
|
45,971 |
|
|
5,716 |
|
|
42,162 |
|
||
Other expenses, net |
|
|
2,227 |
|
|
|
11,055 |
|
|
6,418 |
|
|
17,864 |
|
||
Total costs and expenses |
|
|
301,279 |
|
|
|
389,005 |
|
|
894,261 |
|
|
863,372 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
|
106,552 |
|
|
|
137,541 |
|
|
383,645 |
|
|
330,356 |
|
||
Income tax expense |
|
|
61,578 |
|
|
|
52,356 |
|
|
187,215 |
|
|
138,517 |
|
||
Net income |
|
$ |
44,974 |
|
|
$ |
85,185 |
|
$ |
196,430 |
|
$ |
191,839 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
Net income per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.10 |
|
|
$ |
0.19 |
|
$ |
0.42 |
|
$ |
0.42 |
|
||
Diluted |
|
$ |
0.09 |
|
|
$ |
0.18 |
|
$ |
0.41 |
|
$ |
0.40 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares used to compute net income per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
471,816 |
|
|
|
460,108 |
|
|
470,491 |
|
|
459,477 |
|
||
Diluted |
|
|
479,190 |
|
|
|
481,099 |
|
|
478,701 |
|
|
479,738 |
|
Kosmos Energy Ltd. Condensed Consolidated Balance Sheets (In thousands, unaudited) |
||||||||
|
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
51,581 |
|
$ |
95,345 |
||
Receivables, net |
|
|
161,967 |
|
|
|
120,733 |
|
Other current assets |
|
|
207,540 |
|
|
|
206,635 |
|
Total current assets |
|
|
421,088 |
|
|
|
422,713 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
4,694,435 |
|
|
|
4,160,229 |
|
Other non-current assets |
|
|
355,423 |
|
|
|
355,192 |
|
Total assets |
|
$ |
5,470,946 |
|
|
$ |
4,938,134 |
|
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
284,954 |
|
|
$ |
248,912 |
|
Accrued liabilities |
|
|
277,752 |
|
|
|
302,815 |
|
Other current liabilities |
|
|
527 |
|
|
|
3,103 |
|
Total current liabilities |
|
|
563,233 |
|
|
|
554,830 |
|
|
|
|
|
|
||||
Long-term liabilities: |
|
|
|
|
||||
Long-term debt, net |
|
|
2,691,912 |
|
|
|
2,390,914 |
|
Deferred tax liabilities |
|
|
376,885 |
|
|
|
363,918 |
|
Other non-current liabilities |
|
|
642,016 |
|
|
|
596,135 |
|
Total long-term liabilities |
|
|
3,710,813 |
|
|
|
3,350,967 |
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
1,196,900 |
|
|
|
1,032,337 |
|
Total liabilities and stockholders’ equity |
|
$ |
5,470,946 |
|
|
$ |
4,938,134 |
|
Kosmos Energy Ltd. Condensed Consolidated Statements of Cash Flow (In thousands, unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
44,974 |
|
|
$ |
85,185 |
|
|
$ |
196,430 |
|
|
$ |
191,839 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depletion, depreciation and amortization (including deferred financing costs) |
|
|
122,887 |
|
|
|
134,809 |
|
|
|
318,564 |
|
|
|
339,177 |
|
Deferred income taxes |
|
|
6,081 |
|
|
|
(28,452 |
) |
|
|
11,280 |
|
|
|
(37,481 |
) |
Unsuccessful well costs and leasehold impairments |
|
|
1,187 |
|
|
|
931 |
|
|
|
3,872 |
|
|
|
2,244 |
|
Change in fair value of derivatives |
|
|
(9,298 |
) |
|
|
52,687 |
|
|
|
11,808 |
|
|
|
52,467 |
|
Cash settlements on derivatives, net(1) |
|
|
(7,388 |
) |
|
|
(10,846 |
) |
|
|
(14,754 |
) |
|
|
(21,478 |
) |
Equity-based compensation |
|
|
10,034 |
|
|
|
10,580 |
|
|
|
27,849 |
|
|
|
31,778 |
|
Debt modifications and extinguishments |
|
|
2,263 |
|
|
|
1,503 |
|
|
|
24,794 |
|
|
|
1,503 |
|
Other |
|
|
(138 |
) |
|
|
4,021 |
|
|
|
(12,126 |
) |
|
|
2,547 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Net changes in working capital |
|
|
(164,320 |
) |
|
|
(987 |
) |
|
|
(65,215 |
) |
|
|
(91,202 |
) |
Net cash provided by operating activities |
|
|
6,282 |
|
|
|
249,431 |
|
|
|
502,502 |
|
|
|
471,394 |
|
|
|
|
|
|
|
|
|
|
||||||||
Investing activities |
|
|
|
|
|
|
|
|
||||||||
Oil and gas assets |
|
|
(219,245 |
) |
|
|
(195,047 |
) |
|
|
(772,238 |
) |
|
|
(611,914 |
) |
Notes receivable from partners |
|
|
— |
|
|
|
(13,337 |
) |
|
|
(2,575 |
) |
|
|
(46,632 |
) |
Net cash used in investing activities |
|
|
(219,245 |
) |
|
|
(208,384 |
) |
|
|
(774,813 |
) |
|
|
(658,546 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Financing activities: |
|
|
|
|
|
|
|
|
||||||||
Borrowings under long-term debt |
|
|
100,000 |
|
|
|
150,000 |
|
|
|
275,000 |
|
|
|
300,000 |
|
Payments on long-term debt |
|
|
— |
|
|
|
(137,500 |
) |
|
|
(350,000 |
) |
|
|
(145,000 |
) |
Net proceeds from issuance of senior notes |
|
|
494,855 |
|
|
|
— |
|
|
|
885,285 |
|
|
|
— |
|
Purchase of capped call transactions |
|
|
— |
|
|
|
— |
|
|
|
(49,800 |
) |
|
|
— |
|
Repurchase of senior notes |
|
|
(499,515 |
) |
|
|
— |
|
|
|
(499,515 |
) |
|
|
— |
|
Net proceeds from issuance of common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(166 |
) |
Other financing costs |
|
|
(4,609 |
) |
|
|
(534 |
) |
|
|
(35,534 |
) |
|
|
(12,345 |
) |
Net cash provided by financing activities |
|
|
90,731 |
|
|
|
11,966 |
|
|
|
225,436 |
|
|
|
142,489 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(122,232 |
) |
|
|
53,013 |
|
|
|
(46,875 |
) |
|
|
(44,663 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
174,118 |
|
|
|
89,145 |
|
|
|
98,761 |
|
|
|
186,821 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
51,886 |
|
|
$ |
142,158 |
|
|
$ |
51,886 |
|
|
$ |
142,158 |
|
______________________________________
(1) |
Cash settlements on commodity hedges were |
Kosmos Energy Ltd. EBITDAX (In thousands, unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Nine months ended |
|
Twelve Months Ended |
||||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Net income |
$ |
44,974 |
|
|
$ |
85,185 |
|
|
$ |
196,430 |
|
|
$ |
191,839 |
|
|
$ |
218,111 |
|
Exploration expenses |
|
14,697 |
|
|
|
10,290 |
|
|
|
39,992 |
|
|
|
33,305 |
|
|
|
48,965 |
|
Depletion, depreciation and amortization |
|
120,728 |
|
|
|
132,347 |
|
|
|
311,750 |
|
|
|
331,634 |
|
|
|
425,043 |
|
Impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
222,278 |
|
Equity-based compensation |
|
10,034 |
|
|
|
10,580 |
|
|
|
27,849 |
|
|
|
31,778 |
|
|
|
38,764 |
|
Derivatives, net |
|
(15,254 |
) |
|
|
45,971 |
|
|
|
5,716 |
|
|
|
42,162 |
|
|
|
(25,318 |
) |
Cash settlements on commodity derivatives |
|
(2,532 |
) |
|
|
(4,130 |
) |
|
|
(9,956 |
) |
|
|
(12,343 |
) |
|
|
(14,061 |
) |
Other expenses, net(1) |
|
2,227 |
|
|
|
11,055 |
|
|
|
6,418 |
|
|
|
17,864 |
|
|
|
12,210 |
|
Interest and other financing costs, net |
|
22,112 |
|
|
|
25,440 |
|
|
|
75,839 |
|
|
|
74,379 |
|
|
|
97,364 |
|
Income tax expense |
|
61,578 |
|
|
|
52,356 |
|
|
|
187,215 |
|
|
|
138,517 |
|
|
|
206,913 |
|
EBITDAX |
$ |
258,564 |
|
|
$ |
369,094 |
|
|
$ |
841,253 |
|
|
$ |
849,135 |
|
|
$ |
1,230,269 |
|
______________________________________
(1) | Commencing in the first quarter of 2023, the Company combined the lines for "Restructuring and other" and "Other, net" in its presentation of EBITDAX into a single line titled "Other expenses, net." |
The following table presents our net debt as of September 30, 2024 and December 31, 2023:
|
|
September 30, |
|
December 31, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
Total long-term debt |
|
$ |
2,750,274 |
|
$ |
2,425,000 |
||
Cash and cash equivalents |
|
|
51,581 |
|
|
|
95,345 |
|
Total restricted cash |
|
|
305 |
|
|
|
3,416 |
|
Net debt |
|
$ |
2,698,388 |
|
|
$ |
2,326,239 |
|
Kosmos Energy Ltd. Adjusted Net Income (Loss) (In thousands, except per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
44,974 |
|
|
$ |
85,185 |
|
|
$ |
196,430 |
|
|
$ |
191,839 |
|
|
|
|
|
|
|
|
|
||||||||
Derivatives, net |
|
(15,254 |
) |
|
|
45,971 |
|
|
|
5,716 |
|
|
|
42,162 |
|
Cash settlements on commodity derivatives |
|
(2,532 |
) |
|
|
(4,130 |
) |
|
|
(9,956 |
) |
|
|
(12,343 |
) |
Other, net(2) |
|
1,965 |
|
|
|
11,117 |
|
|
|
5,892 |
|
|
|
17,854 |
|
Debt modifications and extinguishments |
|
2,263 |
|
|
|
1,503 |
|
|
|
24,794 |
|
|
|
1,503 |
|
Total selected items before tax |
|
(13,558 |
) |
|
|
54,461 |
|
|
|
26,446 |
|
|
|
49,176 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax (expense) benefit on adjustments(1) |
|
6,186 |
|
|
|
(13,630 |
) |
|
|
2,269 |
|
|
|
(9,845 |
) |
Impact of valuation adjustments and other tax items |
|
— |
|
|
|
— |
|
|
|
(7,963 |
) |
|
|
— |
|
Adjusted net income |
$ |
37,602 |
|
|
|
126,016 |
|
|
|
217,182 |
|
|
|
231,170 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per diluted share |
$ |
0.09 |
|
|
$ |
0.18 |
|
|
$ |
0.41 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
||||||||
Derivatives, net |
|
(0.03 |
) |
|
|
0.10 |
|
|
|
0.01 |
|
|
|
0.09 |
|
Cash settlements on commodity derivatives |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
Other, net(2) |
|
— |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.04 |
|
Debt modifications and extinguishments |
|
— |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Total selected items before tax |
|
(0.03 |
) |
|
|
0.11 |
|
|
|
0.06 |
|
|
|
0.10 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax (expense) benefit on adjustments(1) |
|
0.02 |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.02 |
) |
Impact of valuation adjustments and other tax items |
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
Adjusted net income per diluted share |
$ |
0.08 |
|
|
$ |
0.26 |
|
|
$ |
0.45 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of diluted shares |
|
479,190 |
|
|
|
481,099 |
|
|
|
478,701 |
|
|
|
479,738 |
|
______________________________________
(1) |
Income tax expense is calculated at the statutory rate in which such item(s) reside. Statutory rates for the |
(2) |
Commencing in the first quarter of 2023, the Company combined the lines for "Restructuring and other" and "Other, net" in its presentation of Adjusted net income into a single line titled "Other, net." |
Kosmos Energy Ltd. Free Cash Flow (In thousands, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of free cash flow: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
6,282 |
|
|
$ |
249,431 |
|
|
$ |
502,502 |
|
|
$ |
471,394 |
|
Net cash used for oil and gas assets - base business |
|
(108,441 |
) |
|
|
(122,542 |
) |
|
|
(383,826 |
) |
|
|
(337,488 |
) |
Base business free cash flow |
|
(102,159 |
) |
|
|
126,889 |
|
|
|
118,676 |
|
|
|
133,906 |
|
Net cash used for oil and gas assets - |
|
(110,804 |
) |
|
|
(72,505 |
) |
|
|
(388,412 |
) |
|
|
(274,426 |
) |
Free cash flow |
$ |
(212,963 |
) |
|
$ |
54,384 |
|
|
$ |
(269,736 |
) |
|
$ |
(140,520 |
) |
______________________________________
Kosmos Energy Ltd. Operational Summary (In thousands, except barrel and per barrel data, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net Volume Sold |
|
|
|
|
|
|
|
||||||||
Oil (MMBbl) |
|
5.135 |
|
|
|
5.956 |
|
|
|
15.234 |
|
|
|
14.448 |
|
Gas (MMcf) |
|
3.554 |
|
|
|
4.046 |
|
|
|
11.991 |
|
|
|
9.582 |
|
NGL (MMBbl) |
|
0.084 |
|
|
|
0.097 |
|
|
|
0.232 |
|
|
|
0.299 |
|
Total (MMBoe) |
|
5.811 |
|
|
|
6.727 |
|
|
|
17.465 |
|
|
|
16.344 |
|
Total (Mboepd) |
|
63.167 |
|
|
|
73.123 |
|
|
|
63.739 |
|
|
|
59.868 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Oil sales |
$ |
393,555 |
|
|
$ |
511,735 |
|
|
$ |
1,230,772 |
|
|
$ |
1,166,983 |
|
Gas sales |
|
12,586 |
|
|
|
13,080 |
|
|
|
42,218 |
|
|
|
20,514 |
|
NGL sales |
|
1,653 |
|
|
|
1,533 |
|
|
|
4,807 |
|
|
|
6,346 |
|
Total oil and gas revenue |
|
407,794 |
|
|
|
526,348 |
|
|
|
1,277,797 |
|
|
|
1,193,843 |
|
Cash settlements on commodity derivatives |
|
(2,532 |
) |
|
|
(4,130 |
) |
|
|
(9,956 |
) |
|
|
(12,343 |
) |
Realized revenue |
$ |
405,262 |
|
|
$ |
522,218 |
|
|
$ |
1,267,841 |
|
|
$ |
1,181,500 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Oil and Gas Production Costs |
$ |
133,471 |
|
|
$ |
138,782 |
|
|
$ |
377,822 |
|
|
$ |
286,297 |
|
|
|
|
|
|
|
|
|
||||||||
Sales per Bbl/Mcf/Boe |
|
|
|
|
|
|
|
||||||||
Average oil sales price per Bbl |
$ |
76.64 |
|
|
$ |
85.92 |
|
|
$ |
80.79 |
|
|
$ |
80.77 |
|
Average gas sales price per Mcf |
|
3.54 |
|
|
|
3.23 |
|
|
|
3.52 |
|
|
|
2.14 |
|
Average NGL sales price per Bbl |
|
19.68 |
|
|
|
15.80 |
|
|
|
20.72 |
|
|
|
21.22 |
|
Average total sales price per Boe |
|
70.18 |
|
|
|
78.24 |
|
|
|
73.16 |
|
|
|
73.04 |
|
Cash settlements on commodity derivatives per Boe |
|
(0.44 |
) |
|
|
(0.61 |
) |
|
|
(0.57 |
) |
|
|
(0.76 |
) |
Realized revenue per Boe |
|
69.74 |
|
|
|
77.63 |
|
|
|
72.59 |
|
|
|
72.29 |
|
|
|
|
|
|
|
|
|
||||||||
Oil and gas production costs per Boe |
$ |
22.97 |
|
|
$ |
20.63 |
|
|
$ |
21.64 |
|
|
$ |
17.51 |
|
______________________________________
(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 0.1 million barrels as of September 30, 2024. |
Kosmos Energy Ltd. Hedging Summary As of September 30, 2024(1) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
Weighted Average Price per Bbl |
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Index |
|
MBbl |
|
Swap |
Floor(2) |
|
Ceiling |
|||||||
2024: |
|
|
|
|
|
|
|
|
|
|||||||
Three-way collars |
|
Dated Brent |
|
2,000 |
|
$ |
— |
$ |
70.00 |
|
$ |
93.12 |
||||
Two-way collars |
|
Dated Brent |
|
500 |
|
|
— |
|
70.00 |
|
|
100.00 |
||||
2025: |
|
|
|
|
|
|
|
|
|
|||||||
Two-way collars 1H25 (3) |
|
Dated Brent |
|
2,000 |
|
|
— |
|
70.00 |
|
|
85.00 |
||||
Two-way collars FY25 |
|
Dated Brent |
|
2,000 |
|
|
— |
|
70.00 |
|
|
85.00 |
||||
Swaps 1H25 |
|
Dated Brent |
|
2,000 |
|
|
75.48 |
|
— |
|
|
— |
______________________________________
(1) | Please see the Company’s filed 10-Q for additional disclosure on hedging material. Includes hedging position as of September 30, 2024 and hedges put in place through filing date. |
(2) |
“Floor” represents floor price for collars and strike price for purchased puts. |
(3) |
We entered into Dated Brent call spread contracts with a purchased price of |
2024 Guidance |
||
|
4Q 2024 |
FY 2024 Guidance |
|
|
|
Production(1,2) |
70,000 - 74,000 boe per day |
~67,000 boe per day |
|
|
|
Opex(3) |
|
|
|
|
|
DD&A |
|
|
|
|
|
G&A(~ |
|
|
|
|
|
Exploration Expense(4) |
|
|
|
|
|
Net Interest Expense(5) |
|
|
|
|
|
Tax |
|
|
|
|
|
Capital Expenditure |
|
|
______________________________________
Note: |
|
(1) |
4Q 2024 cargo forecast – |
(2) |
|
(3) |
FY 2024 opex excludes operating costs associated with GTA, which are expected to total approximately |
(4) |
Excludes leasehold impairments and dry hole costs |
(5) |
Includes impact of capitalized interest; |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241103032302/en/
Investor Relations
Jamie Buckland
+44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations
Thomas Golembeski
+1-214-445-9674
tgolembeski@kosmosenergy.com
Source: Kosmos Energy Ltd.
FAQ
What was Kosmos Energy's (KOS) net income in Q3 2024?
What is Kosmos Energy's (KOS) production guidance for end of 2024?
How much did Kosmos Energy (KOS) reduce its 2025 capex guidance?