Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q4 2022 Earnings Presentation
24 slides from Kosmos Energy's earnings presentation, Feb 27, 2023
Slide 1: 4Q22 & FY22 Results
4Q22 & FY22 Results 27 February 2023 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 Role In Responding To Global Energy Challenges
Our Role In Responding To Global Energy Challenges Kosmos has the right strategy and portfolio at the right time… Global Energy Affordability Challenges KOSMOS’ • Growing energy supply to meet increasing global demand ROLE • Providing affordable gas to Africa Security • Growing domestic production i
Slide 4: A Differentiated Company: Five Years In The Making
A Differentiated Company: Five Years In The Making… Delivered through a consistent and countercyclical strategy Industry Kosmos Increased focus onshore/shale Focus on world-class offshore fields Portfolio 3 strategic acquisitions Minimal/no organic growth Quality organic growth projects Growth T
Slide 5: YE22 Reserve Base Supports Ongoing Growth
YE22 Reserve Base Supports Ongoing Growth 2P reserves-to-production life of >20 years Reserves: Liquids vs. Gas1 Kosmos 2P Reserves +2C Resources (mmboe) 1,2 2P 1P Gas Liquids Ghana EG GoM Mauritania Senegal 1P Reserves of ~280mmboe 2P Reserves + 2C Resources ~740mmboe • 1P reserves-to-production of
Slide 6: A Unique Investment Case
A Unique Investment Case… A differentiated strategy, quality portfolio and proven track record of delivery Quality reserve base Unique Gas/LNG Portfolio >20 Year 2P Reserves/Production Tortue, BirAllah, Yakaar-Teranga Differentiated Growth Focused Mgt. Team Targeting +50% 2022-24 Strong track record
Slide 7: Supported By A Leading ESG Story
…Supported By A Leading ESG Story Strong focus on ESG recognized by MSCI in late-2022 with an AAA rating Reducing Emissions • Carbon neutrality for Scope 1&2 operated emissions in 2021 and 2022 Environment • New equity emissions disclosure and targets in this year’s Sustainability Report • Gas weigh
Slide 8: 2022: A Year Of Continued Delivery
2022: A Year Of Continued Delivery Strictly Private and Confidential
Slide 9: 2022: Strong Operational Delivery
2022: Strong Operational Delivery Strong operational delivery in support of our strategic goals Safe Production LNG developments operations on track progressing Zero LTI’s / TRIR’s ~64,000 boepd in line Tortue Phase 1 ~90% No spills with guidance complete at YE22 Other developments Accretive, Strong
Slide 10: 2022: A Record Year
2022: A Record Year Growth and diversification continue to enhance the company’s financial performance and resilience Record Revenue and EBITDAX ($bn) Leverage Falling, Liquidity Rising1 1.2 5.0x 2.5 4.7x 4.0x 1.0 2.3 Liquidity ($bn) 3.0x Leverage 0.8 2.6x 2.6x 2.0 2.0x 1.8x <1.5x 0.6 1.0x 0.6 0.8 0
Slide 11: 2022: Growing Financial Resilience
2022: Growing Financial Resilience Strong free cash flow, leverage falling, ample liquidity, no near-term maturities Record Record Strong free Revenue EBITDAX cash flow ~$2.3 billion ~$1.4 billion ~$350 million Material debt Increase Achieved YE22 paydown liquidity leverage target ~$400 >$1.0 billio
Slide 12: 4Q22 Financials
4Q22 Financials In line with guidance 4Q 2022A Net Production ~58,700 boe/day Realized Price1 ~$75.6/boe Opex ~$20.2/boe DD&A ~$17.8/boe G&A2 $26 million Exploration Expense3 $12 million Net Interest $26 million Tax Exp. / (Benefit)4 $11.5/boe Capex5 $228 million 1. Includes derivatives cash settlem
Slide 13: 2023: A Year Of Inflection
2023: A Year Of Inflection Strictly Private and Confidential
Slide 14: Growth in Ghana – Jubilee Southeast A Key Value Driver
Growth in Ghana – Jubilee Southeast A Key Value Driver Delivering sanctioned projects to access significant reserve base Ghana Jubilee – Big Fields Get Bigger (bn boe) 3.0 50% • FY23 guidance: ~115,000 bopd gross (+7.5% growth YoY) • Oxy Ghana acquisition: ~14 month payback 2.0 40% – Acquired increm
Slide 15: Equatorial Guinea – 2H23 Infill Campaign
Equatorial Guinea – 2H23 Infill Campaign Investing to maintain production with infill drilling and future ILX growth potential 2023/24 Drilling Campaign Equatorial Guinea • FY23 guidance: 27,000 – 29,000 bopd gross • Significant further upside unlocked through block G extension executed in Q2 2022 –
Slide 16: Growth In The Gulf of Mexico – Winterfell Progressing
Growth In The Gulf of Mexico – Winterfell Progressing Targeting first oil at Winterfell end of 1Q24 Gulf of Mexico Greater Winterfell Area • FY23 guidance: 14,000 – 15,000 boepd net Production Optimization • Kodiak workover planned for 2H23 – Expected production impact 4Q23 • Odd Job subsea pump pro
Slide 17: Tiberius: The Next GoM ILX Opportunity
Tiberius: The Next GoM ILX Opportunity Outboard Wilcox four-way structure with high historical success rate Tiberius Wilcox Trend (GoM) • Kosmos: 33% working interest and operator • Four-way structural trap in the outboard Wilcox trend • Other four-way structures drilled in the outer Wilcox have his
Slide 18: Mauritania & Senegal: Tortue Phase 1
Mauritania & Senegal: Tortue Phase 1 Tortue Phase 1: ~90% complete with first gas targeted 4Q23 1 2 3 4 1 Subsea/Wells 2 FPSO 4 Floating LNG • Subsea pipelines transport the 3 Hub Terminal gas from the field to the FPSO • 4 wells drilled and completed • Well tests demonstrated significantly higher r
Slide 19: Long Term Gas/LNG Growth
Long Term Gas/LNG Growth Kosmos has a deep hopper of future gas and LNG opportunities with growing exposure to international gas prices • Current 2P+2C gas reserves ~400 mmboe YE22 2P+2C / Recoverable Gas (mmboe net to KOS)1 – Significant potential for future growth • Tortue Phase 2 progressing with
Slide 20: Capital Allocation Priorities
Capital Allocation Priorities Continued debt paydown, disciplined investment in growth and shareholder returns when appropriate • FY23E capex of $700-750 million in line with FY22 FY23 Capex ($700-750 million) • 40% maintenance / 60% growth – Jubilee Southeast – Tortue Phase 1 – Winterfell • $100-20
Slide 21: 2023 Planned Activity Set / Key Catalysts
2023 Planned Activity Set / Key Catalysts Multiple catalysts expected across all areas of the portfolio 1Q23 2Q23 3Q23 4Q23 1Q24 Ghana JSE wells JSE wells online drilled EG Infill drilling campaign Akeng Deep GoM Winterfell/Tiberius drilling Winterfell First Oil FPSO Sailaway Tortue Wells dr
Slide 22: 2023 – Foundation For The Next Five Years
2023 – Foundation For The Next Five Years… A differentiated strategy, quality portfolio and well set up for the future ~50% Production Growth Expected 2022-24 Quality Reserve Base 140 Differentiated Growth Highly Cash Generative Tortue Phase 2 Group production (boepd) Access To Premium Markets Tortu
Slide 23: KOSM:*S
KOSM:*S ENERGY.
Slide 24: Appendix: FY23 Detailed Guidance
Appendix: FY23 Detailed Guidance 1Q 2023 FY 2023 Production1,2 58,000 – 61,000 boe/day 65,000 – 69,000 boe/day Opex3 $14.50 – $16.50/boe $13.50 – $15.50/boe DD&A $19.00 – $21.00/boe G&A (~60% cash) $28 – $30 million $110 – $120 million Exploration Expense4 $5 – $10 million $20 - $30 million Net Inte