Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q4 2021 Earnings Presentation
26 slides from Kosmos Energy's earnings presentation, Feb 28, 2022
Slide 1: 4Q 2021 Results
4Q 2021 Results February 2022 NYSE/LSE: KOS 0
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation 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 presentation
Slide 3: A Differentiated Portfolio Fit For The Future
A Differentiated Portfolio Fit For The Future Near-term leverage to strong oil prices, long-term leverage to growing gas demand Strong Growth Expected Low cost, high quality assets 140 Growing gas/ Company production (kboepd) LNG exposure Tortue Phase 2 Tortue Phase 3+ Robust balance sheet 70 ~50% B
Slide 4: Growth Underpinned By Significant Reserves Base
Growth Underpinned By Significant Reserves Base Record reserves base: 2P reserves-to-production life of >20 years Reserves: Liquids vs. Gas1 1P Reserves of ~300mmboe 2P • More than double YE2020, reflecting: 1P – Robust replacement ratio from existing assets – Recognition of Tortue 1P reserves – Oxy
Slide 5: Clear Path To De-leveraging
Clear Path To De-leveraging YE2021 leverage of ~2.5x in line with expectations...on track for below pre-COVID levels by YE2022 Growing EBITDAX Significant De-Leveraging Expected in 2022 • 2022 EBITDAX expected to be materially enhanced Increasing – Higher production in Ghana 5.0 Production – Highe
Slide 6: Highly Cash Generative Portfolio
Highly Cash Generative Portfolio Material, sustainable FCF generation as Tortue Phase 1, Jubilee Southeast and Winterfell are delivered 2022E 2024E Near-term funding focused on delivering Tortue Phase 1, Jubilee Southeast and Winterfell… 67-71,000 >100,000 Production +50% …expected to increase group
Slide 7: Commitment to Sustainability and a 'Just' Energy Transition
Commitment to Sustainability and a ‘Just’ Energy Transition Strong ESG performance is an indicator of a business capable of delivering long term value Reducing Emissions • Accelerating timeline to achieve carbon neutrality for Scope 1 and Scope 2 Environment operated emissions • Planning for new equ
Slide 8: 2021: A Year of Momentum
2021: A Year of Momentum Strictly Private and Confidential
Slide 9: 2021: Operational Momentum
2021: Operational Momentum Operational LNG development momentum building progressing >75,000 boepd exit Tortue Phase 1 ~70% rate achieved by YE21 complete at YE21 Enhanced Accretive, Strong reserves base value-additive M&A ESG agenda >20-year 2P Successful OXY Ghana Supporting a “Just reserves/produ
Slide 10: 2021: Ghana – A Pivotal Year
2021: Ghana – A Pivotal Year Increased activity and reliable operations are delivering Production Jubilee Drilling Enhances Performance2 • 4Q Production: 95,000 – Jubilee: ~80,000 bopd (~32,000 net1) – TEN: ~27,000 bopd (~7,000 net1) • FY21 Production: 90,000 – Jubilee: ~75,000 bopd (~21,000 net1) P
Slide 11: 2021: Oxy Ghana Transaction Accelerates Strategy
2021: Oxy Ghana Transaction Accelerates Strategy Strategic, value-accretive M&A Right transaction, right time Ghana Assets • Kosmos was uniquely positioned to execute the transaction ⎯ Strong track record in Ghana ⎯ Equity and bond investor support Strong operational and financial performance • The
Slide 12: 2021: Equatorial Guinea – Return To Drilling
2021: Equatorial Guinea – Return To Drilling First infill wells drilled on the assets since 2015 Production 2H21 Drilling Enhances Ceiba & Okume Performance1 • 4Q Production: ~30,000 bopd (~10,000 net) 35,000 • FY21 Production: ~30,000 bopd (~10,000 net) 33,000 Production (bopd) 31,000 Successful in
Slide 13: 2021: U.S. Gulf of Mexico – ILX Success
2021: U.S. Gulf of Mexico – ILX Success Winterfell unlocks ~100 mmboe gross resource potential with further upside Production Successful Tornado Dump Flood 1 26,000 • 4Q Production: ~21,000 boepd 22,000 • FY21 Production: ~20,000 boepd Production (bopd) 18,000 14,000 Infill drilling campaign Hurrica
Slide 14: 2021: Tortue Development – Significant Progress
2021: Tortue Development – Significant Progress All key workstreams making progress: ~70% complete at YE21 FPSO FPSO – Topsides Installation • The last four of the eight process modules were successfully lifted onto the deck at year-end • Mechanical completion of the process sub- systems is underway
Slide 15: 2021: Financial Delivery
2021: Financial Delivery Re-Financed Tortue FPSO Sale Strong FCF1 RBL Facility & Leaseback from base business $1.25bn ~$375m net FY21 base business Facility Size capex saving FCF of ~$175m 1. Excludes working capital Increased Materially Raised Hedge Liquidity Reduced Leverage Floors/Ceilings Ave. 2
Slide 16: 4Q21 Financials
4Q21 Financials A record quarter: sales volumes and EBITDAX at all time highs 3Q 2021A 4Q 2021A Net Production1 ~49,300 boe/day ~70,000 boe/day Sales ~33,000 boe/day ~82,000 boe/day Realized Price2 $47.7/boe $65.2/boe EBITDAX ~$79 million ~$340 million Opex $16.7/boe $17.8/boe DD&A $21.6/boe $23.2/b
Slide 17: 2021: Strengthened Financial Position
2021: Strengthened Financial Position Continuing to optimize the capital structure Significant Liquidity No Near-Term Maturities $785 $765 $767 $235 $235 $596 $569 $320 $85 $650 $120 $400 $400 $85 $300 $400 $400 $350 $450 $357 $357 $30 $149 $150 $132 $179 $95 $111 $107 $25 $30 $30 Q4 20 Q1 21 Q2 21
Slide 18: 2022: A Year of Delivery
2022: A Year of Delivery Strictly Private and Confidential
Slide 19: 2022: Ghana – Investing For Growth
2022: Ghana – Investing For Growth Delivering sanctioned projects to access significant reserve base Jubilee Investment FY22E Ghana Capex • Maintenance – Three wells: one producer, two water injectors • Growth – Investment in Jubilee Southeast facilities to add Jubilee Maintenance (~2/3) lower GoR w
Slide 20: 2022: Equatorial Guinea / Gulf of Mexico – High-Graded Program
2022: Equatorial Guinea / Gulf of Mexico – High-Graded Program Investing to maintain production with future growth potential Equatorial Guinea Investment Okume Golf Tripod Platform • Maintenance – Three-to-four well ESP conversion program planned in 2022 – Ceiba/Okume production optimization project
Slide 21: 2022: Tortue Phase 1 – A Year Of Execution
2022: Tortue Phase 1 – A Year Of Execution First gas expected in 3Q 2023 Tortue Phase 1 – Key Planned 2022 Milestones Hub Terminal Living Quarters • Wells: Commence drilling in 2Q22 • Subsea: Kick-off offshore installation in 2Q22 • Hub Terminal: Commence facilities hook-up in 3Q22 • FPSO: Sail-away
Slide 22: 2022: Beyond Tortue Phase 1…
2022: Beyond Tortue Phase 1… Working to commercialize substantial gas resource in Mauritania & Senegal Tortue Phase 2 ~100 TCF Gas Initially In-Place De-Risked Across 3 Hubs • Optimization of upstream facilities expected to deliver expansion from 2.5mtpa to 5.0mtpa • At an estimated cost of less tha
Slide 23: 2022: Guidance and Capital Program
2022: Guidance and Capital Program Focused capital program in 2022 Key FY22 Guidance Items1 Potential Debt Free Cash Flow2 Net Production Total Capex Paydown3 (@$75 Brent) (@$75 Brent) 67-71,000 boepd ~$700 million ~$200 million Up to $500 million Base business capex focused on growing production an
Slide 24: A Differentiated Portfolio Fit For The Future
A Differentiated Portfolio Fit For The Future Low cost, high quality assets Growing gas/LNG exposure Robust balance sheet with rapid de-leveraging Potential for material shareholder returns Strong ESG credentials. A portfolio fit for the future 23
Slide 25: Kosmos Energy
KOSM**S ENERGY.
Slide 26: Appendix: FY22 Detailed Guidance
Appendix: FY22 Detailed Guidance 1Q 2022 FY 2022 Production1,2 70,000 – 73,000 boe/day 67,000 – 71,000 boe/day Opex $18.00 – $20.00/boe $16.00 – $18.00/boe DD&A $21.00 – $23.00/boe G&A (~65% cash) $24 – $26 million $90 – $100 million Exploration Expense $5 – $10 million $45 – $55 million Net Interes