Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — 2017 BMO Global Energy Leadership Forum
22 slides from Kosmos Energy's conference presentation, May 2017
Slide 1: 2017 BMO Global Energy Leadership Forum
2017 BMO Global Energy Leadership Forum NYSE: KOS May 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 Tortue project by 2018 Near-Term Exploration Potential
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: Substantial Drill Out in 2017-2018
Substantial Drill Out in 2017-2018 Kosmos’ 2017-2018 portfolio drill-out will test some of the largest prospects identified by industry. Only supermajors are testing more net resource… 4,000 3,500 Net Unrisked Resource (MMBoe) per REP 3,000 2,500 37 explorers represent 2,000 <1.8 BBOE combined 1,500
Slide 7: 2017-2018 Portfolio Drill Out in Context
2017-2018 Portfolio Drill Out in Context Kosmos has the highest impact exploration program in its peer group 2,000 1,800 Net Unrisked Resource Drill-Out 2017-18 (MMBoe) per REP 1,600 Higher Potential Higher Potential 1,400 Higher Impact Lower Impact 1,200 1,000 800 600 Lower Potential Lower Potentia
Slide 8: 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 9: 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 10: 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 11: Defined, Efficient Path to First Gas from Tortue
Defined, Efficient Path to First Gas from Tortue 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 targeting FID by 2018 2015 – 2017 milestones to FID: Guembeul-1 discovery
Slide 12: 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 13: Mauritania / Senegal Charge Model Summary
Mauritania / Senegal Charge Model Summary Hydrocarbon charge model explains results to date and predicts phase; we believe there is a strong chance of finding oil or liquid-rich gas on the outboard basin floor fan fairways, particularly in Mauritania Petroleum System Summary Three oil / gas sources
Slide 14: Yakaar Discovery
Yakaar Discovery Yakaar is the first successful test of the outboard basin floor fairway and continues 100% success rate in Mauritania / Senegal – Yakaar, combined with Teranga, discovered 20 Tcf Pmean gas resource, creating the C6 opportunity for a second cost competitive LNG hub in Senegal – De-ri
Slide 15: Hippocampe Prospect
Hippocampe Prospect 2 BBOE gross unrisked resource potential – Located in Block C-8, northwest and outboard of Marsouin discovery and believed to be C6 charged from more oil-prone / mature Neocomian-Valanginian, and potentially Albian, source kitchens C12 – Large basin floor fan with extensive, stac
Slide 16: Lamantin Prospect
Lamantin Prospect 2 – 3 BBOE gross unrisked resource potential – Located in the higher confidence Cenomanian-Turonian and Albian oil source C6 kitchen with increased probability for liquids Lamantin – C12 Large, basin floor fan of Upper Cretaceous (Campanian) age with stacked, amalgamated channel sy
Slide 17: Requin Tigre Prospect
Requin Tigre Prospect 60 TCFE gross unrisked resource potential – Located in northern Senegal, outboard of the Tortue gas discovery, charged from a C6 Neocomian-Valanginian source kitchen – C12 Very large basin floor fan on central arm of Senegal River, comprising stacked, amalgamated Lower Cenomani
Slide 18: Suriname-Guyana Basin
Suriname-Guyana Basin Up to two wells being matured to find oil in Suriname, including at least one in 2018 – ~11,000 km2 (~475 GoM blocks) position captures multiple plays – 3D seismic interpretation and prospect evaluation in progress / fairways on the south east margin of the Cretaceous Guyana- w
Slide 19: São Tomé
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 Began acquiring Kosmos’ largest ever 3D seismi
Slide 20: Financial Strength
Financial Strength Significant liquidity and strong free cash flow generation enable execution Substantial liquidity – $1.2 billion as of April 1st, 2017 2017E Cash Sources and Uses 2017E Capex decreasing >75% from 2016 – 2017E Capex budget of $150 million1 Substantial free cash flow generation – ~$
Slide 21: 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 22: Investor Presentation May 2017
Investor Presentation May 2017 22
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