Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Merger or Acquisition (October 2021)
13 slides from Kosmos Energy's merger presentation, Oct 13, 2021
Slide 1: Acquisition of Additional Interests in Ghana
Acquisition of Additional Interests in Ghana 13 October 2021 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: Acquiring Additional Interests in Ghana from Occidental
Acquiring Additional Interests in Ghana from Occidental Strategically consistent and financially transformative Accelerates • Delivers significant additional near-term cash generation from high-margin oil strategic delivery which underpins portfolio transition to growing LNG • 2P reserves expected t
Slide 4: Transaction Overview: Unique, Compelling, Accretive
Transaction Overview: Unique, Compelling, Accretive… An opportunity to grow our position in Ghana at a compelling valuation Transaction in Numbers Ghana Assets $550m ~$460m Consideration Paid at Close ~$325m1 1.4x1 2022E EBITDAX 2022E EBITDAX ~$140m1 ~30%1 2022E FCF 2022E FCF Yield ~17,000bopd ~$27,
Slide 5: Well Understood Opportunity with Improving Performance
Well Understood Opportunity with Improving Performance Operational improvements enhancing field production rates Reliability Water Injection Gas Offtake • High reliability at TEN now being • Consistent water injection • Increased gas offtake levels matched by Jubilee into the reservoir at Jubilee to
Slide 6: Growing High-Margin Production
Growing High-Margin Production Increasing production while improving costs Jubilee growing back to ~100,000 bopd Near-term Jubilee Production Growth Forecast (boepd) • Current rate of ~80,000 bopd 120,000 100,000 • Expect an additional well in 2021 will allow Jubilee Production (boepd) 80,000 to exi
Slide 7: Accelerates Kosmos' Strategic Delivery
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 to generate ~$1 billion in incremental free 150 cash flow by YE 2026 @ $65/barrel Bren
Slide 8: Acquiring Assets at Compelling Valuation
Acquiring Assets at Compelling Valuation Significant remaining resource to be produced • Proved Reserves – Purchase price implies an attractive 23% 1 rate of return Jubilee Gross Oil Volumes2 (billion barrels) on just Proved reserves 2.0 • Proved + Probable Reserves ~16% recovery to date 1.5 Expect
Slide 9: Transaction Accretive on All Key Financial Metrics
Transaction Accretive on All Key Financial Metrics Transaction expected to drive material increase in EBITDAX, FCF and NAV/share, while accelerating de-leveraging Highly Accretive Free Cash Flow Enhancing Significant increase in cash flow expected Cash flow • Accelerates de-leveraging Leverage • Fun
Slide 10: Transaction Fits our Disciplined Financial Approach
Transaction Fits our Disciplined Financial Approach Deal supports our financial objectives by adding high-margin production and growing cash flow Committed path • Targeting <2.0x by year-end 2022 at $65 Brent to low leverage Returns focused • Highly disciplined investment process capital allocation
Slide 11: Supporting Ghana's Economic and Social Development
Supporting Ghana’s Economic and Social Development Kosmos has been a trusted partner in Ghana since 2004 Long history of successfully operating in Ghana • Kosmos and partners discovered Jubilee in 2007 – The first commercial hydrocarbon discovery in Ghana’s history • Positive relationships with the
Slide 12: Conclusion
Conclusion Accelerates strategic delivery Acquiring assets at compelling valuation Highly accretive across all metrics Accelerates de-leveraging and enhances FCF Supports ESG agenda 11
Slide 13: KOSM**S
KOSM**S ENERGY.