Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q4 2023 Earnings Presentation
21 slides from Kosmos Energy's earnings presentation, Feb 26, 2024
Slide 1: Fourth Quarter & Full Year 2023 Results
Fourth Quarter & Full Year 2023 Results February 26, 2024 NYSE/LSE: KOS 1
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: Our Purpose Is Clear
Our Purpose Is Clear Leading independent, deepwater E&P company focused on meeting the world’s growing demand for cleaner energy Supply the energy the world needs today Increasing low cost, lower carbon oil production in Ghana, Gulf of Mexico and Equatorial Guinea Consider Gimi Find and develop clea
Slide 4: A Unique Investment Case
A Unique Investment Case • Diversified portfolio of world class assets • Advantaged oil portfolio today… World Class Portfolio • …Growing an advantaged gas position With Longevity • >20 year 2P reserves-to-production life, before further discovered resource growth (e.g. Tiberius, Yakaar-Teranga) • P
Slide 5: World Class Portfolio With Longevity Of Resource Base
World Class Portfolio With Longevity Of Resource Base Diverse portfolio across emerging geographies / OECD and across oil / gas World Class, Diverse Portfolio Reserves: Liquids vs. Gas1 1P Reserves of ~280mmboe 2P – 1P reserves-to-production of ~12 years 1P – Robust replacement ratio of >100% in 202
Slide 6: Differentiated Growth
Differentiated Growth Material growth planned for 2024 with operated growth opportunities for further value creation Differentiated Near-term Growth: Targeting +50% Production Growth to YE24 (boepd) 100,000 75,000 50,000 2H22A Jubilee ramp up Winterfell Tortue Phase 1 YE24E 2025+ Quality Opportunity
Slide 7: Strengthening FCF Profile
Strengthening FCF Profile As production grows and capex falls, free cash flow generation is expected to grow sharply with continued growth 2025+ 2H22A YE24E Production increasing with additional Jubilee wells, first oil ~60,000 ~90,000 Production from Winterfell, and first gas boepd boepd from Tortu
Slide 8: A Leading ESG Story
A Leading ESG Story Strong focus on ESG recognized by MSCI with an AAA rating maintained in 2023 Reducing Emissions – Maintained carbon neutrality for Scope 1&2 operated emissions since 2021 Environment – Announced a new target to reduce absolute Scope 1 equity emissions 25% in 2026, compared to our
Slide 9: Fourth Quarter and Full Year 2023
Fourth Quarter and Full Year 2023 Strictly Private and Confidential
Slide 10: 2023: Continued Delivery
2023: Continued Delivery Another year of progress in the delivery of our strategic goals Safe Developments Production growth operations progressing on track LTI/TRIR remain well JSE online and ramping ~66,000 boepd 4Q23 below industry Winterfell early 2Q24 +12% year-on-year averages GTA Ph.1 ~90% Fu
Slide 11: 4Q & FY 2023 Financials
4Q & FY 2023 Financials 4Q 2023A FY 2023A Net Production ~66,000boe/day ~63,000boe/day Realized Price1 ~$75.0/boe ~$73.1/boe Opex ~$15.5/boe ~$16.9/boe DD&A ~$16.9/boe ~$19.3/boe G&A2 $22 million $100 million Exploration Expense3 $9 million $40 million Net Interest Expense4 $22 million $96 million T
Slide 12: 2024 Outlook
2024 Outlook Strictly Private and Confidential
Slide 13: Growth In Ghana
Growth In Ghana Efficient drilling and enhanced reservoir management supporting higher production through 2024 Ghana Greater Jubilee • FY24 oil guidance: ~116,500 bopd gross – ~40,000 bopd net to Kosmos • FY24 gas guidance: ~6,000 boepd net to Kosmos Jubilee • FY24 oil guidance (per the operator): ~
Slide 14: Growth In The Gulf of Mexico
Growth In The Gulf of Mexico Targeting first oil at Winterfell early 2Q24 Gulf of Mexico Greater Winterfell Area • FY24 guidance: 15,500 – 17,000 boepd net Production optimization • Odd Job subsea pump project startup expected mid-year • Kodiak-3 workover planned for mid-year Winterfell • Kosmos: 25
Slide 15: Equatorial Guinea
Equatorial Guinea Steady production; drilling program deferred Equatorial Guinea Drilling Campaign • FY24 guidance: ~8,000 bopd net – Guidance does not include production uplift from the infill drilling campaign Infill Well Campaign & Workover • Campaign commenced with workovers in 4Q23 • The Operat
Slide 16: Tortue Phase 1
Tortue Phase 1 First gas expected 3Q24 Hub Terminal Floating LNG vessel FPSO • Key workstreams continue to progress: – Hub terminal: complete and handed over to operations – Floating LNG vessel arrived on location and mooring/connection to hub terminal ongoing. Golar working with the operator to adv
Slide 17: Solid Financial Position
Solid Financial Position Enhancing the company’s financial resilience Scheduled Debt Maturities (pre RBL re-financing) No near-term debt maturities • Repayment of Gulf of Mexico term loan in 2023 • Improves weighted average maturity and lowers cost of debt < RBL re-financing ongoing $650 • Expected
Slide 18: Capital Allocation Priorities
Capital Allocation Priorities Debt paydown, disciplined investment in growth, and shareholder returns when appropriate Expected Capex • FY24E capex of ~$700-$750 million FY24E Steady State 2025+ • Maintenance (~35-40%) – Ghana: Jubilee/JSE infill campaign – GoM: Odd Job subsea pump • Growth (~60-65%
Slide 19: Continued Value Creation
Continued Value Creation Growing production with reducing capex expected to drive significant growth in free cash flow 2023 2024 2025+ FY23A production FY24E production Production target ~63,000 boepd 71,000 - 77,000 boepd >100,000 boepd Continued Execution A Year of Delivery Differentiated, operate
Slide 20: Kosmos Energy
KOSM**S ENERGY.
Slide 21: Appendix: FY24 Detailed Guidance
Appendix: FY24 Detailed Guidance 1Q 2024 FY2024 Production1,2 65,000 - 68,000 boe/day 71,000 - 77,000 boe/day Opex3 $16.50 - $18.00/boe ~$15.00 - $17.00/boe DD&A $18.00 - $20.00/boe G&A4 $25 - $30 million ~$100 - $120 million Exploration Expense5 ~$10 - $15 million ~$40 - $60 million Net Interest Ex