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Kosmos Energy Ltd. First Quarter 2023 Results

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   |    Tuesday,May 09,2023

Kosmos Energy Ltd. announced first quarter 2023 results.


  • Net Production(2): ~58,800 barrels of oil equivalent per day (boepd), with sales of ~61,100 boepd
  • Revenues: $394 million, or $71.67 per boe (excluding the impact of derivative cash settlements)
  • Production expense: $84 million, or $15.26 per boe
  • Capital expenditures: $206 million
  • On Phase 2 of the Greater Tortue Ahmeyim LNG project, partners confirmed a gravity-based structure development concept
Kosmos Energy announced its financial and operating results for the first quarter of 2023. For the quarter, the Company generated a net income of $83 million, or $0.17 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net income(1) of $78 million, or $0.16 per diluted share for the first quarter of 2023.

Chairman and Chief Executive Officer Andrew G. Inglis said: "Kosmos delivered solid performance in the first quarter and moved the company closer to the expected mid-year free cash flow inflection point. We have three development projects underway that aim to increase production by around 50% from current levels.

"New oil production from Jubilee is expected online shortly, with capital expenditure starting to fall through the rest of the year. We have also made good progress in the quarter on Phase 1 of the Tortue project and drilling at Winterfell is planned to begin next quarter."

"Kosmos has a busy year of catalysts ahead, having already delivered key milestones in the first quarter. We remain focused on execution and realizing the full potential of our distinctive assets."


Net capital expenditures for the first quarter of 2023 was $206 million, in line with guidance.

Realized pricing for the quarter of $70.91 per boe, including derivative cash settlements, was lower compared to the fourth quarter due to lower commodity prices during the period, and was partially offset by a reduction in operating expenses to $15.26 per boe.

Kosmos exited the first quarter of 2023 with approximately $2.3 billion of total long-term debt and approximately $2.1 billion of net debt(1) and available liquidity of approximately $1.0 billion. The Company generated net cash provided by operating activities of approximately $204 million and free cash flow(1) of approximately $(20) million in the first quarter.

At the end of the quarter, the company completed its semi-annual re-determination of the RBL facility. As expected, the borrowing base decreased by ~$100 million, effective April 1, due to the reduction in loan life.



Total net production(2) in the first quarter of 2023 averaged approximately 58,800 boepd, in line with company guidance. The Company exited the quarter in a net overlift position.


Production in Ghana averaged approximately 33,600 boepd net in the first quarter of 2023. Kosmos lifted three cargos from Ghana during the quarter, in line with guidance.

At Jubilee, production averaged approximately 72,200 bopd gross during the quarter. Lower production during the quarter, compared to the previous quarter, was largely due to reduced water injection to manage reservoir pressure during Jubilee Southeast drilling. Normal water injection at Jubilee resumed late February.

Drilling on the Jubilee field continues to make good progress with five wells across the Jubilee main reservoir and Jubilee Southeast development expected online from the end of the second quarter through to the end of the third quarter (four producer wells and one injector well). Production at the Jubilee field is expected to rise through to year-end as these new wells come online. The partnership expects new wells to increase gross production at Jubilee by over 50% from the first quarter to more than 110,000 bopd by the end of 2023.

At TEN, production averaged approximately 20,300 bopd gross for the first quarter.

Two cargos are expected in Ghana in the second quarter of 2023, which would lead to an underlift position at the end of the second quarter, ahead of an anticipated increase in cargo liftings during the second half of the year as Jubilee production ramps up.

U.S. Gulf of Mexico

Production in the U.S. Gulf of Mexico averaged approximately 15,900 boepd net (~82% oil) during the first quarter, in line with guidance.

The workover plan for the Kodiak ST3 well has progressed and a vessel has been contracted. Work is expected to begin in the fourth quarter.

The Odd Job subsea pump project, intended to sustain long-term production from the field, is 45% complete and is on track to be in service by mid-year 2024.

The Winterfell development project continues to progress. Drilling is expected to start in the third quarter of 2023, with first oil targeted around the end of the first quarter of 2024. Host facility and export agreements are expected to be executed around mid-year 2023.

The Tiberius infrastructure-led exploration (ILX) well, a four-way structural trap targeting a pre-drill gross resource of ~135 million barrels of oil, is scheduled to spud in the third quarter.

Equatorial Guinea

Production in Equatorial Guinea averaged approximately 27,200 bopd gross and 9,300 bopd net in the first quarter of 2023. Kosmos lifted 1 cargo from Equatorial Guinea during the quarter, in line with guidance.

The infill drilling campaign is scheduled to commence in the fourth quarter of 2023 with the first of three infill wells expected to be online around the end of the year.

The Akeng Deep ILX opportunity, a well targeting a pre-drill gross resource of ~180 million barrels of oil in the deeper Albian trend, is expected to spud next year following the completion of the infill drilling campaign.

Mauritania & Senegal

Phase 1 of the Greater Tortue Ahmeyim liquified natural gas (LNG) project continues to make good progress. First gas is targeted at the end of 2023 with continued progress across the four major work streams:

  • Hub Terminal: Construction work is complete, and activity is focused on progressing the final commissioning for handover to operations around the end of the second quarter of 2023.
  • Subsea: Laying of the deepwater section of the pipeline from the field to the FPSO is currently underway. This will be followed by the installation of the infield flowlines and subsea structures. Timely execution of this subsea work scope is the critical path to first gas by the end of the year.
  • FPSO: Arrival on location offshore Mauritania/Senegal is expected around the end of the second quarter of 2023 when the hookup and commissioning work will commence.
  • FLNG: Construction and mechanical completion activities are finishing and commissioning work is underway. Sailaway is targeted for mid-year 2023.

Further progress has also been made across the company's other future gas developments:

  • Tortue Phase 2: In late February, the company announced that the partnership had selected a gravity-based structure development concept, a key step to advancing the project into pre-FEED.
  • BirAllah: Kosmos is working with the partnership and Government of Mauritania on project optimization and concept selection.
  • Yakaar-Teranga: The partnership is continuing to progress the first phase domestic gas scheme with the Government of Senegal, with the potential for LNG export in future phases.

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