Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q3 2020 Earnings Presentation
12 slides from Kosmos Energy's earnings presentation, Nov 9, 2020
Slide 1: 3Q 2020 Results
3Q 2020 Results November 9 2020 NYSE/LSE: KOS 0 Strictly Private and Confidential
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: 3Q 2020 Key Messages
3Q 2020 Key Messages Business performing, balance sheet strengthened and portfolio optimized • Production ~57,000 boepd slightly lower than guidance due to elevated Gulf of Mexico storm activity Robust 3Q • Ghana and Equatorial Guinea production steady, performance in-line with operational expectati
Slide 4: 3Q 2020: Solid Operational Performance
3Q 2020: Solid Operational Performance Annual production at low end of guidance due to COVID-19 and Gulf of Mexico hurricane impacts Ghana Equatorial Guinea Gulf of Mexico • 3Q net production of ~28,000 bopd • 3Q net production of ~11,000 bopd • 3Q net production of ~18,000 boepd; below guidance due
Slide 5: 3Q 2020 Financials
3Q 2020 Financials Production slightly lower. Material improvement in realizations 3Q 2020A • Ghana/EG in line. Gulf of Mexico Net Production ~57,000 boe/day impacted by elevated storm activity • Realizations ~2x higher than 2Q, Realized Price ~$41/boe due to higher oil prices and normalized differe
Slide 6: Tortue: Right project, right time
Tortue: Right project, right time The Tortue project has been transformed over the last twelve months The macro outlook for gas and LNG continues to improve Woodmac Global LNG Supply/Demand1 • Wood Mackenzie forecasts continuing improvement in LNG 600 prices into 2022/23 500 • Global LNG supply grow
Slide 7: Tortue Phase 1 Ramping Up
Tortue Phase 1 Ramping Up Greater Tortue project ramping up in Mauritania/Senegal 3Q 2020 Subsea FPSO FLNG Breakwater ~37% complete ~47% complete ~58% complete ~37% complete Main static umbilical Shipyard resources have Concrete pouring for the Hull construction now over prototype completed testing
Slide 8: Optimization of Tortue Phase 2
Optimization of Tortue Phase 2 Optimization of the scope of Phase 2 is expected to deliver the most competitive brownfield project globally Landed Breakeven Cost Stack Shipping to Asia1 10 8 US$/mmbtu 6 4 2 0 Tortue Phase 2 Project A Project B Project C Project D Project E US @$2 Tolling US @2.5 Tol
Slide 9: Tortue Project Funding
Tortue Project Funding Financing path established which funds Kosmos’ capital to first gas. Optimized project expected to deliver ~7x ROI • Path to fund Kosmos’ capital to first gas with phase 2 Remaining Tortue Phase 1 Capex ($m) Net to Kosmos financed from phase 1 cash flows 800 – Engaged with BP
Slide 10: Strengthening the Balance Sheet
Strengthening the Balance Sheet Gulf of Mexico facility and Shell transaction proceeds further improve liquidity Liquidity ($ million)1 • Closing of Shell transaction progressing. Key approvals received 900 – Expected to close this quarter with ~$100 million 800 proceeds upfront – A further $100 mil
Slide 11: A Portfolio to Deliver Sustainable FCF and Shareholder Value
A Portfolio to Deliver Sustainable FCF and Shareholder Value High quality conventional portfolio with strong ESG credentials World Class Growing Conventional Assets FCF Generation • Atlantic Margin, conventional deepwater strategy • Low cost assets, ~$35/bbl corporate FCF breakeven1 • Reached a cash
Slide 12: Kosmos Energy
KOSM<*S ENERGY.