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EQUITY Investor Presentation – Kosmos Energy

Kosmos Energy · Nov 14, 2013 · 63 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. EQUITY Investor Presentation – Kosmos Energy – slide 1
    Kosmos Technical Update New York City November 2013 JON CAPPON Manager, Investor Relations 214.445.9669 jcapponkosmosenergy.com
  2. EQUITY Investor Presentation – Kosmos Energy – slide 2
    Agenda 1. CEO Message 4 2. Ghana Asset 9 3. Exploration Strategy 21 4. Exploration Opportunity 31 5. Financial Review 44 6. Managing Above Ground Risk 54 7. Closing Remarks 61 8. Q&A 63 Kosmos Energy Technical Update…
  3. EQUITY Investor Presentation – Kosmos Energy – slide 3
    CEO Message Kosmos Differentiated Brian Maxted Kosmos Energy Technical Update November 14, 2013 4
  4. EQUITY Investor Presentation – Kosmos Energy – slide 4
    What Differentiates Kosmos An asymmetric risk / reward opportunity Self-funded explorer World-class production / development asset in Ghana Same team, same exploration strategy, new transformational portfolio Morocco Coastline…
  5. EQUITY Investor Presentation – Kosmos Energy – slide 5
    A Self-funded Explorer World-class, de-risked Jubilee field organically funds ongoing development and transformational exploration program Jubilee Production Long-life production plateau and significant production / reserve growth…
  6. EQUITY Investor Presentation – Kosmos Energy – slide 6
    Executing the Second Inning Kosmos poised to create substantial value Kosmos Energy Technical Update November 14, 2013 7
  7. EQUITY Investor Presentation – Kosmos Energy – slide 7
    Corporate Responsibility Statement of Business Principles reflects how we conduct our business and interact with stakeholders, employees and the environment Defined across six key areas: Ethical conduct The environment Our workplaces…
  8. EQUITY Investor Presentation – Kosmos Energy – slide 8
    Ghana Asset The Foundation to Build Upon Darrell McKenna, COO Eric Haas, SVP, Production and Technical Services Kosmos Energy Technical Update November 14, 2013 9
  9. EQUITY Investor Presentation – Kosmos Energy – slide 9
    Ghana Discoveries Kosmos First Inning grand slam Opening the Tano Basin Architect of the basin-opening Jubilee discovery Substantiates the business strategy Eight proven hydrocarbon discovery areas High value barrels with 2+ to 4…
  10. EQUITY Investor Presentation – Kosmos Energy – slide 10
    World-class Jubilee Field A giant field with upside potential Footprint the size of Manhattan Phase 1 Development Phase 1A Development Jubilee Reservoirs 3400m 443m JUBILEE 250m Giant field 3650m Empire State…
  11. EQUITY Investor Presentation – Kosmos Energy – slide 11
    Jubilee Field Summary World-class, de-risked asset Field history First oil late 2010 Phased development approach Produced over 82 MMBO to date High facility reliability First quartile HSES record Strong reservoir and field…
  12. EQUITY Investor Presentation – Kosmos Energy – slide 12
    Capacity Overview Working to determine optimum oil off-take rate from the field Pre-turnaround YE 2013E Kosmos Energy Technical Update November 14, 2013 13
  13. EQUITY Investor Presentation – Kosmos Energy – slide 13
    Western Corridor Gas Infrastructure Construction progressing Power generation facility T Hydroelectric power facility H WGCI three main elements Map: African Energy 2013 Pipeline from Jubilee FPSO to Atuabo Gas processing…
  14. EQUITY Investor Presentation – Kosmos Energy – slide 14
    Jubilee Field Highlights Well deliverability exceeds FPSO capacity Consistent field performance 100 MBopd average production Well deliverability currently 155 MBopd Water injection restored Phase 1 productivity resolved…
  15. EQUITY Investor Presentation – Kosmos Energy – slide 15
    Phase 1 Well Productivity Treatment cost significantly reduced, no major impact to operating expense Treatment history Productivity fully restored One sidetrack operation in 2011 Confirms near-wellbore scale precipitation Seven…
  16. EQUITY Investor Presentation – Kosmos Energy – slide 16
    Horizontal Well Delivery Potential to reduce ultimate well count with horizontal wells First Jubilee horizontal well Successfully completed in Phase 1A program Tubing constrained at 27,500 Bopd Horizontal well benefits Highest…
  17. EQUITY Investor Presentation – Kosmos Energy – slide 17
    Appraisal of Greater Jubilee High value barrels found in multiple discoveries to be tied back into Jubilee FPSO Multiple discoveries Mahogany oil discovery Teak oil and gas condensate discovery Akasa oil discovery Refining…
  18. EQUITY Investor Presentation – Kosmos Energy – slide 18
    TEN Development Project Second major deepwater oil development project in Ghana TEN Plan of Development (PoD) approved Development of three discovery areas P50 Case 250 MMBO Second FPSO-based development in Ghana Additional gas…
  19. EQUITY Investor Presentation – Kosmos Energy – slide 19
    TEN Development Phases 1 and 2 PoD envisions Phases 1 and 2 oil development and field expansion Phase 1 Phase 2 Enyenra / Ntomme / Tweneboa NAG Infill of Enyenra and Ntomme Anchor volumes for initial infrastructure Minimal…
  20. EQUITY Investor Presentation – Kosmos Energy – slide 20
    Exploration Strategy The Path to Growth Brian Maxted, CEO and CXO Paul Dailly, SVP and Chief Geoscientist Kosmos Energy Technical Update November 14, 2013 21
  21. EQUITY Investor Presentation – Kosmos Energy – slide 21
    Proven Exploration Strategy Exploration strategy focused on maximizing value by discovering and developing high volume, high value barrels Ireland Business Frontier and emerging basins New Ventures Mauritania Geography Suriname…
  22. EQUITY Investor Presentation – Kosmos Energy – slide 22
    Top Quartile Explorer Disciplined exploration strategy has allowed us to operate efficiently and with high success First Inning results Emerging / frontier basin petroleum system success rate was 1 in 5 in initial portfolio…
  23. EQUITY Investor Presentation – Kosmos Energy – slide 23
    Executing the Strategy Poised to deliver the Second Inning Identified and captured transformational opportunities through first-mover advantage in frontier and emerging basins Established a controlling position in multiple…
  24. EQUITY Investor Presentation – Kosmos Energy – slide 24
    Kosmos Second Inning Continuing to capture transformational exploration upside in a brutally competitive environment Atlantic Margin focus Export of core Cretaceous theme Latin America (Suriname) North Atlantic (Ireland) Export of…
  25. EQUITY Investor Presentation – Kosmos Energy – slide 25
    Transformational Exploration Portfolio Strong execution discipline in frontier and emerging basins and expanded geography and geology to create substantial opportunity Kosmos Energy Technical Update November 14, 2013 26
  26. EQUITY Investor Presentation – Kosmos Energy – slide 26
    Super Major Scale Portfolio Maturation of opportunities to the drilling stage Significant exploration upside Total gross recoverable resource Pmean of 30 BBoe un-risked (5 BBoe risked) Substantial follow-on potential Select…
  27. EQUITY Investor Presentation – Kosmos Energy – slide 27
    Poised to Commence Drilling Annual exposure to giant exploration upside Four year drilling schedule Up to nine play-opening tests Drill-out 2.3 BBoe net un-risked inventory New ventures initiatives Aim to replace inventory at…
  28. EQUITY Investor Presentation – Kosmos Energy – slide 28
    Exploration Drilling Calendar Plan to drill two to four petroleum systems per year Rig capacity secured Capable of drilling entire portfolio Atwood Achiever drillship Finalizing rig of opportunity Atwood Achiever New-build 6th…
  29. EQUITY Investor Presentation – Kosmos Energy – slide 29
    New Ventures Building the Portfolio Leveraging learning to build quality portfolio through first cycle exploration of Atlantic Margin and second cycle exploration of Transform Margin Selectively rebuilding portfolio Frontier and…
  30. EQUITY Investor Presentation – Kosmos Energy – slide 30
    Exploration Opportunity Our Second Inning Portfolio Paul Dailly, SVP and Chief Geoscientist Jesse Noah, VP Exploration NW Africa Kosmos Energy Technical Update November 14, 2013 31
  31. EQUITY Investor Presentation – Kosmos Energy – slide 31
    Northwest Africa Portfolio Major acreage position offers several significant frontier basin opportunities Three large potential petroleum systems First-mover advantage Strategic positions of choice Competitive fiscal terms Moroccos…
  32. EQUITY Investor Presentation – Kosmos Energy – slide 32
    Significant Activity Recently in Morocco High level of licensing and farm-in activity Heightened industry interest Numerous farm-in transactions recently executed All available acreage acquired Active drilling campaigns Up to 10…
  33. EQUITY Investor Presentation – Kosmos Energy – slide 33
    Successful Morocco Farm-out Farm-out results validate potential of Kosmos Moroccan portfolio Highly successful farm-out initiative Among the best terms in West Africa Agadir farm-out (KOS 30%) BP farmed into all three Agadir Basin…
  34. EQUITY Investor Presentation – Kosmos Energy – slide 34
    Offshore Agadir Basin Petroleum System One of the last undrilled salt basins along the Atlantic Margin An unexplored salt basin Evidence of a working petroleum system Play diversity and prospect dependency Multiple exploration wells…
  35. EQUITY Investor Presentation – Kosmos Energy – slide 35
    Offshore Agadir Basin Prospect Portfolio High volume, high value prospect portfolio Extensive Kosmos portfolio Wide diversity of play types Similar to the Gulf of Mexico Tarhazoute Petroleum Agreement signed 3D seismic planned 1H…
  36. EQUITY Investor Presentation – Kosmos Energy – slide 36
    Foum Assaka Block Eagle-1 Well Eagle prospect is a large, salt-cored structure with significant resource potential Eagle-1 SW NE Eagle-1 well summary - Pmean 360 MMBO Targeting lower Cretaceous reservoirs Multiple deepwater…
  37. EQUITY Investor Presentation – Kosmos Energy – slide 37
    Essaouira Block Boilers-1 Well Boilers Prospect is a well-defined structure with multiple stacked objectives Boilers-1 SW NE Boilers-1 well summary - Pmean 465 MMBO Test upper / lower Cretaceous interval Multiple, deepwater…
  38. EQUITY Investor Presentation – Kosmos Energy – slide 38
    Offshore Aaiun Basin Petroleum System One of the last undrilled Cretaceous Basins along the South Atlantic Margin High impact exploration potential Unexplored Cretaceous Delta Similar in size to the Niger Fan Evidence for a working…
  39. EQUITY Investor Presentation – Kosmos Energy – slide 39
    Cap Boujdour Block Gargaa-1 Well Gargaa Prospect is a very large, simple four-way anticline with AVO support Gargaa-1 well summary - Pmean 1+ BBO Test lower Cretaceous deepwater reservoirs with AVO support Multiple, independent…
  40. EQUITY Investor Presentation – Kosmos Energy – slide 40
    Offshore Mauritania Petroleum System Second cycle West Africa Transform Margin exploration opportunity Structural / stratigraphic Cretaceous basin-floor fan traps Significant untested potential down-dip of proven working petroleum…
  41. EQUITY Investor Presentation – Kosmos Energy – slide 41
    Suriname Guyana Petroleum System Expansion of our core geologic theme west across the Atlantic Key position in a proven basin Down-dip of the producing Tambaredjo oil field 2D / 3D seismic acquired Seismic processing and…
  42. EQUITY Investor Presentation – Kosmos Energy – slide 42
    Ireland Porcupine Basin Exploring the North Atlantic with a South Atlantic perspective strategic position in forgotten basin FEL 1/13 Premier basin-flank acreage position Under-explored basin with existing nearby discoveries FEL…
  43. EQUITY Investor Presentation – Kosmos Energy – slide 43
    Financial Review Greg Dunlevy, CFO Paul Nobel, SVP and CAO Kosmos Energy Technical Update November 14, 2013 44
  44. EQUITY Investor Presentation – Kosmos Energy – slide 44
    A Position of Financial Strength Current financial strength of Kosmos is the best in our history Increased liquidity and flexibility under current capital structure Stable free cash flow stream from Jubilee contributes to our…
  45. EQUITY Investor Presentation – Kosmos Energy – slide 45
    Fully-funded Financial Strategy Maturing our capital structure to build a platform for long-term, cost-efficient capital access Kosmos is currently in the best liquidity position it has been in, with total liquidity forecasted to be 1B…
  46. EQUITY Investor Presentation – Kosmos Energy – slide 46
    Current Capital Structure Focused on flexibility, being well-positioned for future capital access and funding success in the business Kosmos manages its interest coverage and leverage ratio with significant headroom under its debt…
  47. EQUITY Investor Presentation – Kosmos Energy – slide 47
    Finance Objectives De-risk the cash flow / financial elements of the business plan Increase overall financial flexibility and access to markets Reducing price risk: increase hedging activities, particularly in oil Build the…
  48. EQUITY Investor Presentation – Kosmos Energy – slide 48
    Growing Cash Flow Generation (Forecast) Solid cash flow from Jubilee production drives self-funded exploration business model and development of future projects Kosmos Energy Technical Update November 14, 2013 49
  49. EQUITY Investor Presentation – Kosmos Energy – slide 49
    Capital Expenditures Outlook 2014 program is focused on continuing to develop Ghana as well as advancing our high impact drilling program Ghana capital expenditures centered on Greater Jubilee and TEN Morocco capital expenditures…
  50. EQUITY Investor Presentation – Kosmos Energy – slide 50
    De-risking Cash Flows Reducing oil price exposure through robust commodity hedging program Kosmos hedges significant forward production in order to reduce near-term cash flow volatility Also adds capacity to our debt facilitys…
  51. EQUITY Investor Presentation – Kosmos Energy – slide 51
    Shifting Risk: Insurance Programs Broad insurance coverage in line with partners / international deepwater peers; further reduces operating risk Business interruption: up to 500MM for 12 month period Loss of production income…
  52. EQUITY Investor Presentation – Kosmos Energy – slide 52
    Oil Marketing Higher quality Jubilee crude generally sells at a premium to Dated Brent Jubilee quality is reflected in the premium that it generally commands as compared to Brent Average 0.31/Bbl since first oil Kosmos utilizes…
  53. EQUITY Investor Presentation – Kosmos Energy – slide 53
    Managing Above Ground Risk Bill Hayes, SVP External Affairs Kosmos Energy Technical Update November 14, 2013 54
  54. EQUITY Investor Presentation – Kosmos Energy – slide 54
    Managing Above Ground Risk Competitive advantage in analyzing and mitigating risk where others cannot *Map source: International Finance Corporation Above Ground Risk (AGR) refers to issues affecting our license to operate Social,…
  55. EQUITY Investor Presentation – Kosmos Energy – slide 55
    Why Do We Emphasize AGR Proficiency at managing AGR separates us from our peers, and we believe placing a high value on AGR mitigation is the right thing to do Witness changes in Ghana and elsewhere; force for good Thought leader and…
  56. EQUITY Investor Presentation – Kosmos Energy – slide 56
    Kosmos Above Ground Policy Coverage Number of above ground policy areas covered by Kosmos, its peer- Policy areas covered by research: 1. Corruption & business integrity group companies and its partners* 2. Safety & occupational health…
  57. EQUITY Investor Presentation – Kosmos Energy – slide 57
    Business Principles Began a process post-IPO to strengthen AGR mitigation and supporting management frameworks Transparency Responsibilities Grievance mechanisms Contractor to expectations Stakeholders Supplier due Anti-corruption…
  58. EQUITY Investor Presentation – Kosmos Energy – slide 58
    Kosmos AGR Mitigation in Practice Different approach to AGR mitigation by establishing an early presence in country, planning for success, focusing our social efforts on building capacity and mitigating political risks Capacity…
  59. EQUITY Investor Presentation – Kosmos Energy – slide 59
    AGR Management Summary AGR assessment and strategy development occurs at each stage of the exploration process to ensure an integrated view of above ground and below ground risks Contrarian but methodical approach Dedicated…
  60. EQUITY Investor Presentation – Kosmos Energy – slide 60
    Closing Remarks Brian Maxted, CEO and CXO Kosmos Energy Technical Update November 14, 2013 61
  61. EQUITY Investor Presentation – Kosmos Energy – slide 61
    Key Messages Forging ahead Delivered our Ghana development / production asset Highly visible near-term and long-term reserves, production, and cash flow growth Focused on Second Inning exploration Differentiated strategy and…
  62. EQUITY Investor Presentation – Kosmos Energy – slide 62
    Q&A Kosmos Energy Technical Update November 14, 2013 63
  63. EQUITY Investor Presentation – Kosmos Energy – slide 63
    Kosmos Energy Technical Update November 14, 2013 64

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