Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Investor Presentation (May 2013)
29 slides from Kosmos Energy's investor presentation, May 2013
Slide 1: Investor Presentation
Investor Presentation May 2013 BRAD WHITMARSH Investor Relations 214.445.9772 [email protected]
Slide 2: Compelling Value Proposition
Compelling Value Proposition Asymmetric risk / reward opportunity • World-Class Assets in Ghana – Significant, de-risked and visible production and cash flow growth – Long-term production plateau with potential further increases at Jubilee – Oil-focused additional developments at TEN & MTA • Robust
Slide 3: Proven and Disciplined Business Strategy
Proven and Disciplined Business Strategy Focus on high-volume, high- value petroleum systems Investor Presentation May 2013 3
Slide 4: High Quality, Oil-Levered Portfolio
High Quality, Oil-Levered Portfolio Meaningful production growth with transformational upside • Ghana Asset - Tano Basin Petroleum System – West Africa Transform Margin Cretaceous play – Significant long-term production and de- risked growth profile – Substantial cash flow generator to fund investme
Slide 5: Ghana - Tano Basin Petroleum System
Ghana - Tano Basin Petroleum System Foundation of the Company and platform for future growth • World-class Jubilee Field – Outstanding reservoir performance – Long-life production plateau – Debottlenecking opportunities to expand facility capacity • Other Developments Progressing – Submitted PoD for
Slide 6: Jubilee Field
Jubilee Field World-class find and landmark development • Discovery Mid-2007, First Oil Late 2010 • Strong Reservoir and Field Performance – 600 MMBbl +, dependent on ultimate recovery – Successful acid stimulation program enhanced Phase 1 well deliverability – Implementing Phase 1A development • Fi
Slide 7: Greater Jubilee Area Potential
Greater Jubilee Area Potential Substantial long-term production and cash flow to Kosmos • Multi-year Production Plateau Anticipated – Long-life profile supported by additional development at Jubilee and MTA resources – Focus on debottlenecking FPSO for long-term increase beyond 120 MBpd • Additional
Slide 8: Second Major Offshore Project
Second Major Offshore Project Defined production growth at Greater TEN area • FPSO Plan of Development Submitted – Pmean 360 MMBoe for TEN fields with approximately 70% oil • Targeted Initial Capacity of 80 MBpd, Gross – Flexible and expandable development – Ability to tie-in additional near-field r
Slide 9: Opening the Next Major Petroleum System
Opening the Next Major Petroleum System Expanding and optimizing portfolio of opportunities • Atlantic Margin Focus – First mover into NW Africa pre-salt (Morocco) – Initial entry into NE Latin America (Suriname) – Re-entry into West Africa Transform Margin (Mauritania) – Expanded theme and geograph
Slide 10: Rio Del Rey Petroleum System
Rio Del Rey Petroleum System Cameroon – near-term drilling opportunity • Extension of a Proven Offshore Play – Deepwater Tertiary trend onshore – Analogous to >1BBoe Alba oil and natural gas condensate field offshore • Built Substantial Acreage Position – 720 K gross acres – 100% WI, operated by KOS
Slide 11: Rio Del Rey Petroleum System
Rio Del Rey Petroleum System Near-term drilling opportunity with upside • Extension of a Proven Offshore Play – Toe-thrust anticline prospect – Proven oil shows in nearby location • Sipo-1 Prospect – Drilling operations ongoing – 150 MMBoe mean unrisked potential A B Munge-1 Oil Shows Sipo Sipo Sout
Slide 12: NW Africa Petroleum Systems
NW Africa Petroleum Systems Morocco – overlooked frontier opportunity with meaningful potential • Two High-potential Petroleum Systems – Offshore Agadir and Aaiun Basins – Equivalent to over 2,300 GOM blocks • Aggressively Advancing Plans – Processing and interpreting substantial seismic data – Secu
Slide 13: Offshore Agadir Basin Petroleum System
Offshore Agadir Basin Petroleum System First mover in NW Africa pre-salt play • Only Undrilled Salt Basin in South Atlantic Margin – All petroleum system elements present – Play diversity and prospect dependency – Quickly advancing seismic acquisition and processing B A • Substantial Recent Industry
Slide 14: Offshore Aaiun Basin Petroleum System
Offshore Aaiun Basin Petroleum System Cap Boujdour – game-changing exploration potential • Substantial Undrilled Cretaceous Delta – Similar in size to Niger Delta – Multiple independent play concepts – Combination stratigraphic traps and structural closures – AVO-supported Lower Cretaceous slope fan
Slide 15: Offshore Mauritania Petroleum System
Offshore Mauritania Petroleum System Mauritania – core geologic theme in same geography • Upper Cretaceous Play Concept – Second-cycle exploration opportunity – Untested position down-dip in a proven basin – Significant industry activity/drilling in 2013 • Substantial Deepwater Potential – 2D seismi
Slide 16: Suriname – Guyana Petroleum System
Suriname – Guyana Petroleum System Suriname – expansion of core geologic theme across the Atlantic • Premier Position in Proven Basin – Tambaredjo oil field charged by deepwater Cretaceous kitchen – Attracted Chevron as industry partner • Progressing Seismic Interpretation – Maturing initial prospec
Slide 17: Ireland – Porcupine Basin
Ireland – Porcupine Basin Core Cretaceous stratigraphic play in Atlantic Margin • Underexplored & Proven Petroleum System – Primary source rock Jurassic in age – Nearby existing oil and gas discoveries – Cretaceous-age reservoirs largely overlooked • Converting Licensing Options to Frontier Explorat
Slide 18: Exploration Drilling Calendar
Exploration Drilling Calendar Rifle-shot exploration - multiple petroleum system tests annually Note: Ireland pending assignment as Frontier Exploration License. Investor Presentation May 2013 18
Slide 19: Robust Financial Capacity
Robust Financial Capacity Fully funded to execute forward exploration and development • Conservative Capital Structure with Liquidity(1) Of $1.1 Billion as of 1Q 2013 • Substantial Annual Cash Flows – Anticipated sales of nine Jubilee cargoes in 2013, net to Kosmos • Disciplined, Returns-based Inves
Slide 20: 2013 Capital Program Investments
2013 Capital Program Investments Disciplined approach to growth • Sustaining and Expanding Production – Implementing Phase 1A at Jubilee – Debottlenecking Jubilee for upside – Initial spending for TEN development • Maturing Exploration Assets to Drilling – Cameroon Sipo prospect currently drilling –
Slide 21: Differentiated Investment Opportunity
Differentiated Investment Opportunity Asymmetric risk / reward opportunity • World-Class Ghana Assets Underpin Substantial Value – Significant, de-risked production and cash flow growth – Long-term production plateau at Jubilee • Exploration Program Delivers Material Value Upside Exposure – Near-ter
Slide 22: 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 23: Investor Presentation May 2013
Investor Presentation May 2013 23
Slide 24: Value Creation in Deepwater Exploration
Value Creation in Deepwater Exploration Focus on high-volume, high- value petroleum systems Kosmos’ Strategic Focus Note: Information from September 2012 Bernstein Research Report Investor Presentation May 2013 24
Slide 25: Early Mover in Morocco
Early Mover in Morocco • KOS Captured Cap Boujdour in Chevron 2006 and Agadir Basin in 2011 Plains • Other Deepwater Industry Entry Chevron – Total (2012) Cairn Genel – GALP (2012) Cairn, Genel – Cairn (2012) GALP – Genel (2012) Teredo Morocco – Plains (2013) – Chevron (2013) • Planned Near-term Act
Slide 26: Mauritania – KOS & Competitor Update
Mauritania – KOS & Competitor Update • KOS Captured Blocks C8, C12, C13 Chariot in 2012 Dana • Other Deepwater Industry Entry – Dana (1999) Tullow – Tullow (2011) – Total (2012) Total – Chariot (2012) • Planned Near-term Activity – Multiple industry wells planned in 2013 – KOS 2D seismic program cur
Slide 27: Suriname – KOS & Competitor Update
Suriname – KOS & Competitor Update Anadarko • KOS Captured Blocks 42 and 45 in 2011 Exxon, Shell Murphy Tullow • Other Deepwater Industry Entry Repsol – Tullow (2007) CGX Shell, Total, – Exxon (2008) Apache Tullow – Shell (2009) – Murphy (2011) – Chevron (2012) – Apache (2012) • Planned Near-term Ac
Slide 28: Serial Oil Finders Who Create Value
Serial Oil Finders Who Create Value Explorers with a long track record of super-major discoveries • Differentiated Strategy in Overlooked, Forgotten Petroleum Systems • Multi-Decade, Proven Track Record of Discovery and Development 1990 – 1992 1993 1994 – 1997 1999 – 2001 2002 – 2003 2003 – 2012 Col
Slide 29: Oil Developers Who Maximize Value
Oil Developers Who Maximize Value History of achieving first oil safely and efficiently • Oil Development Records Led by KOS Management Team • Jubilee Development Brought On-line in Half the Industry Average Time Major West African Offshore Developments Discovery to sanction Ceiba (1999) Triton Exec