KOSMOS ENERGY : ANNOUNCES FOURTH QUARTER AND FULL YEAR 2021 RESULTS - Form 8-K
February 28, 2022 at 05:35 pm IST
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KOSMOS ENERGY ANNOUNCES FOURTH QUARTER AND FULL YEAR 2021 RESULTS
Record Quarter for Sales and EBITDAX
Record Year for Reserves
DALLAS--(BUSINESS WIRE)-February 28, 2022-- Kosmos Energy Ltd. ("Kosmos" or the "Company") (NYSE/LSE: KOS) announced today its financial and operating results for the fourth quarter of 2021. For the quarter, the Company generated a net income of $99 million, or $0.22 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net income(1) of $61 million, or $0.13 per diluted share for the fourth quarter of 2021.
FOURTH QUARTER 2021 HIGHLIGHTS
•Completed the acquisition of additional interests in the Jubilee and TEN fields in Ghana for ~$550 million (~$460 million after post-closing adjustments)
•Net Production(2)(3): ~70,000 barrels of oil equivalent per day (boepd) with sales of 81,900 boepd, resulting in a net underlift position of approximately 0.3 million barrels of oil (including impact of Ghana acquisition as of October 1, 2021)
•Revenues: $573 million, or $76.02 per boe (excluding the impact of derivative cash settlements)
•Production expense: $134 million, or $17.81 per boe
•General and administrative expenses: $25 million, $17 million cash expense and $8 million non-cash
•Capital expenditures (excluding acquisitions):
•$104 million base business
•$2 million Mauritania and Senegal
•Generated free cash flow(1) of approximately $136 million
•Ended the quarter with record 1P reserves of approximately 300mmboe and record 2P reserves of approximately 580mmboe
Commenting on the Company's 2021 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: "In 2021, Kosmos rebuilt operational momentum across the portfolio and improved the balance sheet, finishing the year with a strong fourth quarter.
"Today, Kosmos has a differentiated portfolio that is fit for the future with high-quality, low-cost oil assets funding our growth in natural gas and LNG. Our record 2P reserves are balanced between oil and gas with a reserve life of over 20 years.
"With our existing assets and sanctioned projects, production is expected to grow around 50% in the next two years, and we plan to do that while further de-leveraging the balance sheet. As we deliver on this plan and new projects start up, sustainable free cash flow is expected to increase materially, creating the potential for meaningful shareholder returns.
"Our goal is to develop our portfolio in a responsible way, helping our host nations in Africa to expand access to affordable and reliable energy."
FINANCIAL UPDATE
In October 2021, Kosmos successfully completed the acquisition of additional interests in the Jubilee and TEN fields in Ghana from Occidental Petroleum ("Oxy") for approximately $550 million (~$460 million after post-closing adjustments). The company raised approximately $540 million through an equity and bond offering in October 2021 to fund the transaction. In November 2021, Tullow Oil and PetroSA exercised their pre-emption rights. Completion of the pre-emption transactions remains subject to finalizing definitive agreements and securing approval from the Government of Ghana.
Net capital expenditure for the fourth quarter of 2021, excluding acquisitions, was approximately $106 million, slightly below Company guidance.
Kosmos exited the fourth quarter of 2021 with $2.5 billion of net debt(1) and available liquidity of approximately $0.8 billion. While net debt increased in the quarter, primarily driven by the financing of the Oxy Ghana transaction, leverage improved materially to exit 2021 at around 2.5x.
OPERATIONAL UPDATE
Production
Total net production(2)(3) in the fourth quarter of 2021 averaged approximately 70,000 boepd.
Ghana
Production(3) in Ghana averaged approximately 39,400 barrels of oil per day (bopd) net in the fourth quarter of 2021. Kosmos lifted five cargos from Ghana during the quarter, one more than planned due to a late-December Jubilee lifting.
At Jubilee, production averaged approximately 80,400 bopd gross during the quarter. At TEN, production averaged approximately 27,200 bopd gross for the fourth quarter.
The Jubilee water injector well (J55-W) came online around the end of the third quarter and the second Jubilee producer well (J57-P) came online late in the fourth quarter, increasing Jubilee production to above 90,000 bopd gross. At TEN, a gas injector well came online early in the fourth quarter to add pressure support to the Ntomme field.
High reliability of the Ghana production facilities continues, with uptime of the Jubilee and TEN FPSOs averaging around 98% in the fourth quarter as well as high levels of water injection and gas offtake from the Government of Ghana. This performance has continued into 2022 with record levels of water injection seen at Jubilee (>235,000 barrels of water per day) helping to optimize reservoir performance.
Infill drilling is expected to continue in 2022 with a full year of activity underpinning planned production growth in 2022 and 2023.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately 20,800 boepd net (81% oil) during the fourth quarter, as production recovered from the impact of Hurricane Ida late in the third quarter.
Recently, Kosmos announced that the Winterfell-2 appraisal well encountered approximately 40 meters of net oil pay in the first and second horizons, with better oil saturation and porosity than pre-drill expectations. The exploration tail discovered an additional oil-bearing horizon in a deeper reservoir, which is also prospective in the blocks immediately to the north. The results of this appraisal well further define the resource potential in the central Winterfell area, with our current estimate around 100 million barrels gross. We are currently working with partners on a low cost, lower carbon development targeting sanction mid-year 2022, with first oil approximately 18 months after sanction.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 30,400 bopd gross and 9,800 bopd net in the fourth quarter of 2021. As forecast, Kosmos lifted 1.5 cargos from Equatorial Guinea during the quarter.
Two of three planned infill wells in the Okume Complex began producing in the fourth quarter of 2021. These wells were the first new wells since 2015 and have added approximately 2,500 bopd gross of additional production to the field in the fourth quarter, supporting an increase in gross production to around 35,000 bopd in early January. The third planned well has been deferred, as the rig was utilized to plug and abandon an existing well in Equatorial Guinea and was required to mobilize for its next contract before it could complete the drilling of the last well.
Mauritania & Senegal
The Greater Tortue Ahmeyim liquified natural gas (LNG) project has made steady progress in 2021 and was approximately 70% complete at year-end with the following milestones achieved in the quarter and post quarter-end.
•FPSO: All eight process modules have been lifted onto the deck and mechanical completion of the process sub-systems is underway
•Breakwater: Construction completed of the 21st (and final) caisson of the breakwater
•Subsea: Pipe laying vessel completed its nautical trials in preparation for the offshore installation campaign in the second quarter of 2022
•FLNG: All four mixed refrigerant compressors lifted onboard and pipe rack installation operations commenced
Reserves
At year-end 2021, Kosmos had 1P reserves of approximately 300 million barrels of oil equivalent, more than double the reserves at the end of 2020 reflecting robust reserves replacement from existing assets, recognition of Tortue 1P reserves and additional reserves from the acquired Ghana interests. 1P organic reserves replacement ratio was approximately 102%, and around 900% with the addition of Tortue Phase 1 and the acquired Ghana interests.
2022 Capital Expenditure Budget
Kosmos expects to spend approximately $700 million in capital expenditures in 2022. Around $400 million of the budget is related to the base business (Ghana, Equatorial Guinea and Gulf of Mexico assets) with around $300 million related to our assets in Mauritania and Senegal. The base business capex includes approximately $250-$300 million of maintenance capital expenditures for development drilling, as well as integrity management. In addition, we expect to spend approximately $100-$150 million of growth capital expenditures to fund pre-investment for infrastructure supporting growth in the base business in 2023 and beyond (i.e. Jubilee Southeast and Winterfell). In Mauritania and Senegal, we expect to spend approximately $250 million on Tortue Phase 1, with an incremental $50 million on increased activity on Tortue Phase 2 and the BirAllah and Yakaar-Teranga hubs to advance the commercialization of our substantial gas resources. If Ghana pre-emption is completed, we would expect capital expenditures to reduce by up to $40 million.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure
(2) Production means net entitlement volumes. In Ghana and Equatorial Guinea, this means those volumes net to Kosmos' working interest or participating interest and net of royalty or production sharing contract effect. In the Gulf of Mexico, this means those volumes net to Kosmos' working interest and net of royalty.
(3) 4Q net production numbers include pro forma impact from the Oxy Ghana acquisition assuming October 1, 2021 effective date
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss fourth quarter 2021 financial and operating results today at 10:00 a.m. Central time (11:00 a.m. Eastern time). The live webcast of the event can be accessed on the Investors page of Kosmos' website at http://investors.kosmosenergy.com/investor-events. The dial-in telephone number for the call is +1-877-407-0784. Callers in the United Kingdom should call 0800 756 3429. Callers outside the United States should dial +1-201-689-8560. A replay of the webcast will be available on the Investors page of Kosmos' website for approximately 90 days following the event.
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. Our key assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a world-class gas development offshore Mauritania and Senegal. We also maintain a proven basin exploration program in Equatorial Guinea, Ghana and the U.S. Gulf of Mexico. Kosmos is listed on the New York Stock Exchange and London Stock Exchange and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company's Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.
Non-GAAP Financial Measures
EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines EBITDAX as Net income (loss) plus (i) exploration expense, (ii) depletion, depreciation and amortization expense, (iii) equity based compensation expense, (iv) unrealized (gain) loss on commodity derivatives (realized losses are deducted and realized gains are added back), (v) (gain) loss on sale of oil and gas properties, (vi) interest (income) expense, (vii) income taxes, (viii) loss on extinguishment of debt, (ix) doubtful accounts expense and (x) similar other material items which management believes affect the comparability of operating results. The Company defines Adjusted net income (loss) as Net income (loss) adjusted for certain items that impact the
comparability of results. The Company defines free cash flow as net cash provided by operating activities less Oil and gas assets, Other property, and certain other items that may affect the comparability of results and excludes non-recurring activity such as acquisitions, divestitures and NOC financing. The Company defines net debt as the sum of notes outstanding issued at par and borrowings on the RBL Facility, Corporate revolver, and GoM Term Loan less cash and cash equivalents and restricted cash.
We believe that EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, Net debt and other similar measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the oil and gas sector and will provide investors with a useful tool for assessing the comparability between periods, among securities analysts, as well as company by company. EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt as presented by us may not be comparable to similarly titled measures of other companies.
Forward-Looking Statements
This press release 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 press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos' estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words "anticipate," "believe," "intend," "expect," "plan," "will" or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos (including, but not limited to, the impact of the COVID-19 pandemic), which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos' Securities and Exchange Commission ("SEC") filings.Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
###
Kosmos Energy Ltd.
Consolidated Statements of Operations
(In thousands, except per share amounts, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Revenues and other income:
Oil and gas revenue
$
572,558
$
274,153
$
1,332,013
$
804,033
Gain on sale of assets
-
92,163
1,564
92,163
Other income, net
52
-
262
2
Total revenues and other income
572,610
366,316
1,333,839
896,198
Costs and expenses:
Oil and gas production
134,135
103,850
346,006
338,477
Facilities insurance modifications, net
(5,081)
2,606
(1,586)
13,161
Exploration expenses
23,930
10,323
65,382
84,616
General and administrative
24,901
14,776
91,529
72,142
Depletion, depreciation and amortization
174,605
159,472
467,221
485,862
Impairment of long-lived assets
-
3,139
-
153,959
Interest and other financing costs, net
37,644
26,617
128,371
109,794
Derivatives, net
17,579
51,956
270,185
17,180
Other expenses, net
9,108
9,840
10,111
37,802
Total costs and expenses
416,821
382,579
1,377,219
1,312,993
Income (loss) before income taxes
155,789
(16,263)
(43,380)
(416,795)
Income tax expense (benefit)
57,073
(24,219)
34,456
(5,209)
Net income (loss)
$
98,716
$
7,956
$
(77,836)
$
(411,586)
Net income (loss) per share:
Basic
$
0.22
$
0.02
$
(0.19)
$
(1.02)
Diluted
$
0.22
$
0.02
$
(0.19)
$
(1.02)
Weighted average number of shares used to compute net income (loss) per share:
Basic
443,451
405,455
416,943
405,212
Diluted
456,557
406,388
416,943
405,212
Dividends declared per common share
$
-
$
-
$
-
$
0.0452
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
131,620
$
149,027
Receivables, net
177,526
78,813
Other current assets
232,806
172,451
Total current assets
541,952
400,291
Property and equipment, net
4,183,987
3,320,913
Other non-current assets
214,712
146,389
Total assets
$
4,940,651
$
3,867,593
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$
184,403
$
221,430
Accrued liabilities
250,670
203,260
Current maturities of long-term debt
30,000
7,500
Other current liabilities
65,879
28,009
Total current liabilities
530,952
460,199
Long-term liabilities:
Long-term debt, net
2,590,495
2,103,931
Deferred tax liabilities
711,038
573,619
Other non-current liabilities
578,929
289,690
Total long-term liabilities
3,880,462
2,967,240
Total stockholders' equity
529,237
440,154
Total liabilities and stockholders' equity
$
4,940,651
$
3,867,593
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Operating activities:
Net income (loss)
$
98,716
$
7,956
$
(77,836)
$
(411,586)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion, depreciation and amortization (including deferred financing costs)
177,397
162,089
477,801
495,209
Deferred income taxes
(808)
(46,302)
(69,174)
(42,587)
Unsuccessful well costs and leasehold impairments
2,047
(1,181)
18,819
23,157
Impairment of long-lived assets
-
3,139
-
153,959
Change in fair value of derivatives
18,416
54,956
277,705
22,800
Cash settlements on derivatives, net(1)
(81,512)
(27,848)
(231,767)
(10,944)
Equity-based compensation
7,640
6,314
31,651
32,706
Gain on sale of assets
-
(92,163)
(1,564)
(92,163)
Loss on extinguishment of debt
4,402
9
19,625
2,902
Other
(775)
9,249
(3,538)
15,922
Changes in assets and liabilities:
Net changes in working capital
4,980
99,270
(67,378)
6,770
Net cash provided by operating activities
230,503
175,488
374,344
196,145
Investing activities
Oil and gas assets
(94,781)
(162,330)
(472,631)
(379,593)
Acquisition of oil and gas properties
(465,367)
-
(465,367)
-
Proceeds on sale of assets
1,027
97,405
6,354
99,118
Notes receivable from partners
(21)
(11,538)
(41,733)
(65,112)
Net cash used in investing activities
(559,142)
(76,463)
(973,377)
(345,587)
Financing activities:
Borrowings on long-term debt
475,000
-
725,000
300,000
Payments on long-term debt
(650,000)
(250,000)
(1,050,000)
(250,000)
Advances under production prepayment agreement
-
-
-
50,000
Net proceeds from issuance of senior notes
395,000
-
839,375
-
Redemption of senior secured notes
-
-
-
-
Purchase of treasury stock / tax withholdings
-
-
(1,100)
(4,947)
Net proceeds from issuance of common stock
136,006
-
136,006
-
Dividends
-
(97)
(512)
(19,271)
Deferred financing costs
(7,313)
(1,352)
(24,604)
(5,922)
Net cash provided by (used in) financing activities
348,693
(251,449)
624,165
69,860
Net increase (decrease) in cash, cash equivalents and restricted cash
20,054
(152,424)
25,132
(79,582)
Cash, cash equivalents and restricted cash at beginning of period
154,842
302,188
149,764
229,346
Cash, cash equivalents and restricted cash at end of period
$
174,896
$
149,764
$
174,896
$
149,764
(1)Cash settlements on commodity hedges were $(81.5) million and $(25.5) million for the three months ended December 31, 2021 and 2020, respectively, and $(224.4) million and $(2.7) million for the years ended December 31, 2021 and 2020, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three months ended
Years ended
December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020
Net income (loss)
$
98,716
$
7,956
$
(77,836)
$
(411,586)
Exploration expenses
23,930
10,323
65,382
84,616
Facilities insurance modifications, net
(5,081)
2,606
(1,586)
13,161
Depletion, depreciation and amortization
174,605
159,472
467,221
485,862
Impairment of long-lived assets
-
3,139
-
153,959
Equity-based compensation
7,640
6,314
31,651
32,706
Derivatives, net
17,579
51,956
270,185
17,180
Cash settlements on commodity derivatives
(81,529)
(25,526)
(224,421)
(2,715)
Restructuring and other
2,811
10,208
3,823
29,167
Other, net
6,297
4,743
6,288
10,215
Gain on sale of assets
-
(92,163)
(1,564)
(92,163)
Interest and other financing costs, net
37,644
26,617
128,371
109,794
Income tax expense (benefit)
57,073
(24,219)
34,456
(5,209)
EBITDAX
339,685
$
141,426
$
701,970
$
424,987
Acquired Ghana Interest EBITDAX(1)
267,166
Pro Forma EBITDAX
$
969,136
(1)Twelve Months Ended December 31, 2021 EBITDAX for the Acquired Ghana Interest of $267.2 million is comprised of Revenues of $332.3 million less direct operating expenses of $65.1 million for the acquired properties. Consistent with the definition of EBITDAX, $1.9 million of Facilities insurance modifications, net has been excluded from the results to present the Acquired Ghana Interests Twelve Months Ended December 31, 2021 EBITDAX. The results are presented on the accrual basis of accounting, however as the acquired properties were not accounted for or operated as a separate segment, division, or entity, complete financial statements under U.S. generally accepted accounting principles are not available or practicable to produce. The results are not intended to be a complete presentation of the results of operations of the acquired properties and may not be representative of future operations as they do not include general and administrative expenses; interest expense; depreciation, depletion, and amortization; provision for income taxes; and certain other revenues and expenses not directly associated with revenues from the sale of crude oil.
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Net income (loss)
$
98,716
$
7,956
$
(77,836)
$
(411,586)
Derivatives, net
17,579
51,956
270,185
17,180
Cash settlements on commodity derivatives
(81,529)
(25,526)
(224,421)
(2,715)
Gain on sale of assets
-
(92,163)
(1,564)
(92,163)
Facilities insurance modifications, net
(5,081)
2,606
(1,586)
13,161
Impairment of long-lived assets
-
3,139
-
153,959
Restructuring and other
2,811
10,208
3,823
29,167
Other, net
6,310
4,743
6,102
10,215
Loss on extinguishment of debt
4,402
9
19,625
2,902
Total selected items before tax
(55,508)
(45,028)
72,164
131,706
Income tax expense (benefit) on adjustments(1)
17,716
(12,056)
(19,829)
(6,288)
Impact of valuation adjustments and U.S. tax law changes
556
-
556
26,001
Adjusted net income (loss)
$
61,480
(49,128)
(24,945)
(260,167)
Net income (loss) per diluted share
$
0.22
$
0.02
$
(0.19)
$
(1.02)
Derivatives, net
0.04
0.13
0.65
0.04
Cash settlements on commodity derivatives
(0.18)
(0.06)
(0.54)
(0.01)
Gain on sale of assets
-
(0.23)
-
(0.23)
Facilities insurance modifications, net
(0.01)
0.01
-
0.03
Impairment of long-lived assets
-
0.01
-
0.38
Restructuring and other
0.01
0.02
0.01
0.08
Other, net
0.01
0.01
0.01
0.03
Loss on extinguishment of debt
0.01
-
0.05
0.01
Total selected items before tax
(0.12)
(0.11)
0.18
0.33
Income tax expense (benefit) on adjustments(1)
0.03
(0.03)
(0.05)
(0.01)
Impact of valuation adjustments and U.S. tax law changes
-
-
-
0.06
Adjusted net income (loss) per diluted share
$
0.13
$
(0.12)
$
(0.06)
$
(0.64)
Weighted average number of diluted shares
456,557
406,388
416,943
405,212
(1)Income tax expense is calculated at the statutory rate in which such item(s) reside. Statutory rates for the U.S. and Ghana/Equatorial Guinea are 21% and 35%, respectively.
Kosmos Energy Ltd.
Free Cash Flow
(In thousands, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Reconciliation of free cash flow:
Net cash provided by operating activities
$
230,503
$
175,488
$
374,344
$
196,145
Net cash used for oil and gas assets - base business
(79,680)
(46,529)
(267,072)
(235,426)
Base business free cash flow
150,823
128,959
107,272
(39,281)
Net cash used for oil and gas assets - Mauritania/Senegal
(15,101)
(115,801)
(205,559)
(144,167)
Free cash flow(1)
$
135,722
$
13,158
$
(98,287)
$
(183,448)
(1)Commencing in the fourth quarter of 2021, the Company refined its definition of free cash flow to exclude non-recurring activity such as acquisitions, divestitures and NOC financing that may affect the comparability of results in order to better reflect cash flow of the underlying business, consistent with general industry practice.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021(2)
2020
2021(2)
2020
Net Volume Sold
Oil (MMBbl)
7.176
6.170
18.525
20.531
Gas (MMcf)
1.280
1.416
4.904
5.867
NGL (MMBbl)
0.142
0.146
0.508
0.602
Total (MMBoe)
7.531
6.552
19.850
22.111
Total (Boepd)
81.862
71.217
54.384
60.412
Revenue
Oil sales
$
561,196
$
268,777
$
1,298,577
$
786,159
Gas sales
6,171
3,560
18,898
11,706
NGL sales
5,191
1,816
14,538
6,168
Total sales
572,558
274,153
1,332,013
804,033
Cash settlements on commodity derivatives
(81,529)
(25,526)
(224,421)
(2,715)
Realized revenue
$
491,029
$
248,627
$
1,107,592
$
801,318
Oil and Gas Production Costs
$
134,135
$
103,850
$
346,006
$
338,477
Sales per Bbl/Mcf/Boe
Oil sales per Bbl
$
78.20
$
43.56
$
70.10
$
38.29
Gas sales per Mcf
4.82
2.51
3.85
2.00
NGL sales per Bbl
36.56
12.44
28.62
10.25
Total sales per Boe
76.02
41.84
67.10
36.36
Cash settlements on commodity derivatives per oil Bbl(1)
(11.36)
(4.14)
(12.11)
(0.13)
Realized revenue per Boe
65.20
37.95
55.80
36.24
Oil and gas production costs per Boe
$
17.81
$
15.85
$
17.44
$
15.31
(1)Cash settlements on commodity derivatives are only related to Kosmos and are calculated on a per barrel basis using Kosmos' Net Oil Volumes Sold.
(2)Includes activity related to our acquisition of additional interests in Ghana commencing after the acquisition date.
Kosmos was underlifted by approximately 0.3 million barrels as of December 31, 2021.
Hedging Summary
As of December 31, 2021(1)
(Unaudited)
Weighted Average Price per Bbl
Index
MBbl
Floor(2)
Sold Put
Ceiling
2022:
Three-way collars
Dated Brent
4,500
56.67
43.33
76.91
Three-way collars
NYMEX WTI
1,000
65.00
50.00
85.00
Two-way collars
Dated Brent
7,000
63.57
-
84.29
2023:
Three-way collars
Dated Brent
2,000
65.00
47.50
95.25
(1)Please see the Company's filed 10-K for full disclosure on hedging material. Includes hedging position as of December 31, 2021 and hedges added since year-end.
(2)"Floor" represents floor price for collars or swaps and strike price for purchased puts.
Note: Excludes 1.6 MMBbls of sold (short) calls with a strike price of $60.00 per Bbl in 2022.
2022 Guidance(1)
1Q2022
FY 2022 Guidance
Production(2,3)
70,000 - 73,000 boe per day
67,000 - 71,000 boe per day
Opex
$18.00 - $20.00 per boe
$16.00 - $18.00 per boe
DD&A
$21.00 - $23.00 per boe
G&A(~65% cash)
$24 - $26 million
$90 - $100 million
Exploration Expense
$5 - $10 million
$45 - $55 million
Net Interest
~$40 million/quarter
Tax
$10.00 - $12.00 per boe
Capital Expenditure
~$125 million
~$700 million
Note: Ghana / Equatorial Guinea revenue calculated by number of cargos.
(3)U.S. Gulf of Mexico Production - 1Q 2022 forecast 18,500-19,500 boe per day. FY2022: 18,500-20,500 boe per day. Oil/Gas/NGL split for 2022: ~80%/~12%/~8%.
Source: Kosmos Energy Ltd.
Investor Relations
Jamie Buckland
+44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations
Thomas Golembeski
+1-214-445-9674
tgolembeski@kosmosenergy.com
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Kosmos Energy Ltd. published this content on 28 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2022 12:04:08 UTC.
Kosmos Energy Ltd. is a full cycle, deepwater, independent oil and gas exploration and production company focused along the offshore Atlantic Margins. Its key assets include production offshore Ghana, Equatorial Guinea and the United States Gulf of Mexico, as well as gas projects offshore Mauritania and Senegal. The Company has operations in four geographic reporting segments: Ghana, Equatorial Guinea, Mauritania/Senegal and the U.S. Gulf of Mexico. The West Cape Three Points and Deepwater Tano Blocks are located within the Tano Basin, offshore Ghana. This basin contains a petroleum system. The EG-01, EG-21, EG-24 and S blocks are located in the southern part of the Gulf of Guinea, in the Republic of Equatorial Guinea, west of the Rio Muni petroleum province. It covers approximately 7,500 square kilometers, and it has over 6,400 square kilometers of 3D seismic over the blocks. The C8 and BirAllah blocks are located on the western margin of the Mauritania Salt Basin offshore Mauritania.