Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q1 2020 Earnings Presentation
13 slides from Kosmos Energy's earnings presentation, May 11, 2020
Slide 1: 1Q 2020 Results
1Q 2020 Results May 11 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: Q1 2020 Highlights and Key Items
Q1 2020 Highlights and Key Items • Q1 production unaffected by COVID-19 and averaged ~66,300 boepd Strong – – Gulf of Mexico averaged ~28,300 boepd net during quarter – top end of guidance Ghana averaged ~26,500 bopd net during quarter – ahead of expectations Production – Equatorial Guinea averaged
Slide 4: COVID-19 Response
COVID-19 Response Kosmos taking decisive actions to protect the business in 2020, positioning for increased activity in 2021 • Employee health and safety remains our primary concern Protect People • All offices and production hubs currently unaffected by COVID-19 & Assets • With low cost, low declin
Slide 5: Protect Assets: Safe and reliable operations
Protect Assets Safe and reliable operations Ghana Equatorial Guinea Gulf of Mexico • 1Q net production of ~26,000bopd; • 1Q net production of ~12,000bopd; • 1Q net production of ~28,000boepd; slightly ahead of expectations and in line with expectations at the top end of guidance includes the impact
Slide 6: Advantaged Portfolio
Advantaged Portfolio Kosmos has an advantaged portfolio in a lower price world Low Decline Rates Low Cost, Low Breakeven 60 Kosmos 400 80 Portfolio Half Cycle Breakeven $ / bb (WTI to Henry Hub @ Breakeven1 300 60 <$25/bbl WTI 40 $ million Mboepd 200 40 20:1) 100 20 20 - - 2019 2020 2021 0 Maintenan
Slide 7: Maintain Balance Sheet
Maintain Balance Sheet We have taken decisive actions to lower the cash flow breakeven of the business in 2020 Reduced 2020 Costs (~$250 million) Cost Reductions 1,400 • Reducing base business capital expenditure by 40%; Q2-Q4 2020 from $325-375 million to $200-225 million Cash Flow Breakeven1 in lo
Slide 8: Maintain Balance Sheet
Maintain Balance Sheet We have taken the necessary actions to maintain liquidity in the business in 2020 Liquidity ($ million)1 RBL Re-Determination Complete $1,000 • Re-determination completed in early April with $1.5 billion borrowing capacity ($1.4 billion drawn) $800 -$100 Post RBL re-determ. No
Slide 9: Mauritania & Senegal Update
Mauritania & Senegal Update Tortue project delayed by 12 months with capital deferred and Kosmos’s share covered by carry in 2020 Greater Tortue Ahmeyim • Phase 1 execution: ~33% complete • Following the signing of the Phase 1 SPA, Kosmos booked additional 1P reserves of ~100 MMBoe • Disruption to t
Slide 10: Prepare For The Future
Prepare For The Future Kosmos continues to progress high quality exploration catalysts for 2021 Basin-Opening Exploration • High quality portfolio in attractive basins – Three high-quality basin-opening wells are being progressed for drilling for 2021 Suriname – AVO supported. Cretaceous and carbo
Slide 11: Appendix
Appendix Strictly Private and Confidential
Slide 12: Q1 2020 Highlights and Key Items
Q1 2020 Highlights and Key Items Q1 2020E Q1 2020A Strong Net Production 63,000 – 67,000 boe/day ~66,300 boe/day Production for the Sales Volumes 4.5 MMBoe 4.0 MMBoe • Q1 ended 1.7 MMBoe underlift Quarter Opex $14.50-$16.50/boe $15.50/boe Cost in-line DD&A $22.00-$24.00/boe $23.50/boe or below
Slide 13: Kosmos Energy
KOSM“<*S ENERGY.