Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Investor Presentation (January 2017)
20 slides from Kosmos Energy's investor presentation, January 2017
Slide 1: Investor Presentation
Investor Presentation NYSE: KOS January 2017 Strictly Private and Confidential
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: Kosmos – A Unique Investment Thesis
Kosmos – A Unique Investment Thesis Proven, Repeatable, Differentiated Strategy that Delivers Value Firm Foundation in Ghana Visible & Funded Growth from Tortue Gas World-Class Basin Opened in Mauritania and Senegal Transformational with FID on first project by 2018 Near-Term Exploration Potential N
Slide 4: Differentiated Strategy
Differentiated Strategy Kosmos targets large resources with good fiscal terms which positions our assets at the low end of the cost curve and enables us to create value throughout the commodity cycle New Basin Creaming Curve Since 2000 25 Consistent execution of strategy since inception has Mauritan
Slide 5: Kosmos' Strategy is Delivering Value
Kosmos’ Strategy is Delivering Value Farm-out transaction demonstrates that Kosmos’ unique business model can deliver competitive returns when executed correctly Minimum returns of ~2.5x proportionate back Kosmos Exploration Returns 2 costs1 – Based solely on fixed consideration reflecting the value
Slide 6: Ghana Asset Inflection Point Has Arrived
Ghana Asset Inflection Point Has Arrived Foundation asset delivering increasing production and cash flow as capex declines, providing free cash flow for growth 35 Ghana Net Production Volumes1 Production expected to grow ~40% as capex falls ~80% from 2015-2017 30 ‒ TEN first oil achieved in August 2
Slide 7: Opening Mauritania / Senegal
Opening Mauritania / Senegal The outboard Cretaceous petroleum system offshore Mauritania and Senegal is a super-major scale hydrocarbon province with world-class discovered gas resource and substantial follow-on potential, including for liquids Completed 1st Exploration Phase – Inboard • 5 wells wi
Slide 8: 1st Exploration Phase – Inboard
1st Exploration Phase – Inboard ~25 Tcf of discovered gas resource along inboard Senegal River fairway of northern Senegal and southern Mauritania with total potential of over 50 Tcf in well-delineated and calibrated sands Successfully tested three major fairways of Senegal River Trend Charge, trap,
Slide 9: Defined, Efficient Path to First Gas from Mauritania/Senegal
Defined, Efficient Path to First Gas from Mauritania/Senegal Simple and aligned partnership with shared vision for fast-tracked gas development provides foundation for delivery of funded growth Tortue-1 discovery BP operates development of Tortue project 2015 – Targeting FID by 2018 – First gas expe
Slide 10: Finding Oil
Finding Oil Analysis of liquids and cores provides compelling evidence of three oil-prone source rocks Chinguetti Field C-T Source C-T Source – Proven in Chinguetti Field C-T / Albian Oil Albian Source Mature – Upper Albian side wall cores Teranga Liquids and liquids sampled in Albian Source Teran
Slide 11: 2nd Exploration Phase – Outboard
2nd Exploration Phase – Outboard Second phase exploration program with a focus on finding liquids is underway to mature and test up to four prospects on each basin floor fan fairway in Mauritania / Senegal with an aggregate potential of 10-15 BBoe Multiple, new 3D seismic surveys are ongoing to matu
Slide 12: Finding Oil in Suriname
Finding Oil in Suriname High-graded opportunity to find oil in proven Guyana-Suriname Basin ready for 2018 drilling A’ Play extension of proven oil province Farm-out attracted interest of Liza partner, leverages learnings – 3D seismic acquisition in Block 42 completed in January 2017 Key prospects w
Slide 13: Finding Oil in São Tomé
Finding Oil in São Tomé Leveraging learnings and using industry down-cycle to re-enter Gulf of Guinea and find oil in an area we know well Play extension of proven Rio Muni oil province offshore Equatorial Guinea – Play diversity with follow-on dependent prospectivity Acquiring Kosmos’ largest ever
Slide 14: Financial Strength
Financial Strength Significant liquidity and strong free cash flow generation enable execution Substantial liquidity – $1.2 billion at year-end 2016 2017E Cash Sources and Uses 2017E Capex decreasing >75% from 2015 – 2017E Capex budget of $175 million 1 Substantial free cash flow generation – ~$250
Slide 15: Kosmos' Future Value Growth
Kosmos’ Future Value Growth Growing cash flow in Ghana combined with defined and funded growth in Mauritania/Senegal creates a unique investment opportunity – Growing production / cash flow with decreasing committed capex Growing cash flow in Ghana – ~40% production growth expected from 2016-171 – E
Slide 16: Appendix
Appendix Strictly Private and Confidential
Slide 17: Mauritania / Senegal Farm-Out
Mauritania / Senegal Farm-Out Transformative transaction effectively funds 100% of Kosmos’ portion of Mauritania / Senegal expenditures for next several years 1 Fixed Consideration: $916 million – $162 million up front Simple, Aligned Partnership – Kosmos retains exploration operatorship – $221 mi
Slide 18: Developing Discovered Gas
Developing Discovered Gas Project moving forward with significant below and above ground progress made Quality Resource Deliver ~15 Tcf with high resource density, high well deliverability Supportive Governments Anticipate signing of Intergovernmental Cooperation Agreement (ICA) by both governments
Slide 19: 2nd Exploration Phase – Outboard
2nd Exploration Phase – Outboard Second phase exploration program will focus on significant additional prospectivity for liquids outboard of existing slope/channel discoveries Tortue-1 Teranga-1 Marsouin-1 Requin-Tigre-1 C-T / Albian Lamantin Oil Mature Chinguetti Apto- Barremian Oil Mature Marsouin
Slide 20: Investor Presentation January 2017
Investor Presentation January 2017 20