Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q3 2021 Earnings Presentation
13 slides from Kosmos Energy's earnings presentation, Nov 8, 2021
Slide 1: 3Q 2021 Results
3Q 2021 Results November 8 NYSE/LSE: KOS 2021
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: Recent Transactions Significantly Enhance Outlook
Recent Transactions Significantly Enhance Outlook Strategically consistent and financially transformative • Free cash flow from high-margin oil underpins portfolio transition to LNG at a Oxy Ghana accelerates time of increasing global natural gas demand strategic delivery • Compelling valuation and
Slide 4: Oxy Ghana Transaction Accelerates Kosmos' Strategic Delivery
Oxy Ghana Transaction Accelerates Kosmos’ Strategic Delivery Near-term, high-margin oil growth enhances cash flow and underpins transition to growing LNG Facilitates transition to advantaged gas Kosmos expects additional Ghana interest 150 to generate ~$1 billion in incremental free cash flow by YE
Slide 5: Oxy Ghana Funded
Oxy Ghana Funded Successful execution of the transaction strengthens financial position ~$140 Million Equity $400 Million Senior Notes • ~43 million shares priced at $3.30/share • 5.5 year NC2 senior notes, priced at 7.75% • Shares issued at a premium to previous closing price • Orderbook ~5x oversu
Slide 6: Base Business Delivery On Track
Base Business Delivery On Track Targeting year-end exit rate of >75,000 boepd Ghana Equatorial Guinea Gulf of Mexico 3Q net production 3Q net production 3Q net production ~22,700 bopd1 ~9,600 bopd ~17,000 boepd Production / Infill Drilling Production / Infill Drilling Production / Infill Drilling •
Slide 7: Tortue: Right Project, Right Time
Tortue: Right Project, Right Time Low cost Phase 2 supplying increasing global gas demand Right Project – Low Cost1 Right Time – Strengthening Gas Demand 10 35 30 8 25 6 20 $/mmbtu $/mmbtu 4 15 10 2 5 0 Tortue Project A Project B Project C Project D Project E US @$2 US @2.5 Project F 0 Phase 2 Tolli
Slide 8: Tortue Development: Project And Funding Progress
Tortue Development: Project And Funding Progress Continued progress with all major workstreams All Key Workstreams Making Progress Hub Terminal / Breakwater • FLNG: Mechanical completion activities have commenced with instrument loop checks – Control system commissioning expected to commence 1Q22 •
Slide 9: 3Q Financials
3Q Financials 3Q sales volumes impacted by low cargo liftings and Hurricane Ida in the Gulf of Mexico 2Q 2021A 3Q 2021A Net Production ~51,600 boe/day ~49,300 boe/day Realized Price1 ~$54.0/boe ~$47.7/boe Opex ~$19.2/boe ~$16.7/boe DD&A ~$25.1/boe ~$21.6/boe G&A2 $22 million $22 million Exploration
Slide 10: Strengthened Financial Position
Strengthened Financial Position As 2021 hedges roll off, increasing production at higher oil prices drives significant de-leveraging Significant De-Leveraging Expected 5.0 4.0 PF Leverage Increasing Production falls on Day 1 post Oxy Ghana acquisition Higher Oil Prices 3.0 Improving Hedging Outl
Slide 11: Strong Year Ahead
Strong Year Ahead Clear pathway to unlocking shareholder value Base business + Oxy Ghana expected to generate significant free cash flow Free cash flow to fund Tortue capex and reduce debt Tortue first gas coming into view with Phase 2 FID expected in 2022 2021 hedges rolling off / 2022 production h
Slide 12: Kosmos Energy
KOSM**S ENERGY.
Slide 13: 4Q21 Guidance
4Q21 Guidance Pro forma including Oxy Ghana for full quarter 4Q 20211 Production2,3 70,000 – 72,000 boe/day Opex $17.00 – 18.50/boe DD&A $23.00 – $25.00/boe G&A (~60% cash) $24 – $26 million Exploration Expense4 $20 – $22 million Net Interest5 ~$45 million Tax $7.00 – $9.00/boe Base Business Capex6