Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q1 2022 Earnings Presentation
18 slides from Kosmos Energy's earnings presentation, May 9, 2022
Slide 1: 1Q 2022 Results
1Q 2022 Results 9 May 2022 NYSE/LSE: KOS 1
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: Right Portfolio, Right Time
Right Portfolio, Right Time Near-term leverage to strong oil prices, long-term leverage to growing gas demand Strong Growth Expected Low cost, 140 high quality assets Growing gas/ LNG exposure Tortue Company production (kboepd) Phase 2 Tortue Robust balance sheet 70 ~50% Phase 3+ Rapid de-leveraging
Slide 4: LNG Market Dynamics
LNG Market Dynamics Tightening global LNG markets The situation in Europe has brought forward / increased the LNG shortfall LNG Supply / Demand Gap Emerging1 • The market was already short prior to the Ukraine war due to 700 underinvestment in supply and growing demand • Incremental demand from Euro
Slide 5: Mauritania/Senegal: Cost Advantaged LNG Into Europe
Mauritania/Senegal: Cost Advantaged LNG Into Europe Lower upstream and transportation costs to Europe from Mauritania & Senegal Geographically Advantaged Gas Into Europe US East Coast/Gulf Coast to Europe: 4,500 – 6,000 miles (12-15 days sailing) Mauritania & Senegal to Europe: 2,000 – 2,500 miles (
Slide 6: Highly Cash Generative Portfolio
Highly Cash Generative Portfolio Material, sustainable FCF generation as Tortue Phase 1, Jubilee Southeast and Winterfell are delivered • 1Q22 demonstrated the free cash flow (“FCF”) 2022E1 2024E potential of the portfolio… • …~$220 million of FCF with minimal capex for 63-67,000 ~100,000 Mauritania
Slide 7: 1Q Results
1Q Results KOSMwWsS ENERGY.
Slide 8: 1Q22: Execution & Delivery
1Q22: Execution & Delivery Production performing strongly and developments progressing while balance sheet continues to improve • Production at the upper end of guidance: ~72,600 boepd net Production • Jubilee production >90,000 bopd gross • Tortue Phase 1 and Jubilee Southeast remain on track in a
Slide 9: Strong Operational Performance
Strong Operational Performance 1Q production of ~72,600 boepd at the upper end of guidance Ghana Equatorial Guinea Gulf of Mexico 1Q net production 1Q net production 1Q net production ~42,300 bopd 1 ~11,500 bopd ~18,800 boepd Production / Operations Production Production / Operations • Jubilee produ
Slide 10: Low-Cost Resource Additions
Low-Cost Resource Additions Continuing to deepen in existing asset base on attractive terms GoM – Winterfell Low Cost, High Value Resource Additions1 • Acquired additional 5.5% working interest in Winterfell from Red Willow – Net working interest now ~22% in central Winterfell blocks and 36.5% inter
Slide 11: Mauritania & Senegal: Gas Developments Progressing
Mauritania & Senegal: Gas Developments Progressing Tortue Phase 1 ~75% complete 1Q22. Progressing next development projects Phase 1: All Key Workstreams Making Progress Hub Terminal (Jetty Piling) • Hub Terminal: Construction continues on schedule with the 21st and final caisson shipped offshore in
Slide 12: 1Q22: Strong Financial Performance
1Q22: Strong Financial Performance Business delivering substantial and sustainable cash generation 1Q22 EBITDAX ~$430 million (4Q21: ~$340 million) 1Q22 Net Debt ~$2.2 billion (4Q21: $2.5 billion) 1Q22 Leverage ~1.9x (4Q21: ~2.5x) 1Q22 Free Cash Flow ~$220 million (4Q21: $136 million) 1Q22 Liquidity
Slide 13: Enhanced Liquidity
Enhanced Liquidity RBL re-determination and RCF re-financing complete Liquidity Improving1 No Material Near-Term Maturities (End-1Q22) 1. 1Q22 based on cash balance at 31 March 22; RBL availability increased from $335 million to $350 million in early April 2022 13
Slide 14: 1Q22 Financials
1Q22 Financials 1Q 2022A 1Q 2021A Net Production1 ~72,600 boe/day ~53,100 boe/day Realized Price2 ~$88.3/boe ~$45.0/boe Opex ~$19.1/boe ~$13.9/boe DD&A ~$24.4/boe ~$23.3/boe G&A3 $26 million $22 million Exploration Expense4 $9 million $7 million Net Interest $33 million $25 million Tax Exp. / (Benef
Slide 15: Further De-leveraging Expected in FY22
Further De-leveraging Expected in FY22 ~1.9x leverage at quarter end with further progress expected in near-term Increased Debt Reduction Potential Significant De-Leveraging Expected in 2022 Increasing Expect ~$550-600 million total debt reduction 3.0 Production in 2022 at current prices Higher Oi
Slide 16: Delivering Today, Building For The Future
Delivering Today, Building For The Future Producing Assets Generating Meaningful Free Cash Flow Defined Growth Projects Progressing Growing Exposure to International LNG Leverage Falling Rapidly, Liquidity Enhanced Portfolio for Energy Security / Energy Transition 16
Slide 17: KOSM*“*S
KOSM*“*S ENERGY.
Slide 18: Appendix: FY22 Detailed Guidance
Appendix: FY22 Detailed Guidance 2Q 2022 FY 2022 Production1,2 60,000 – 63,000 boe/day 63,000 – 67,000 boe/day Opex $17.00 – $19.00/boe $16.00 – $18.00/boe DD&A $21.00 – $23.00/boe G&A (~65% cash) $24 – 26 million $90 – 100 million Exploration Expense3 $10 – 15 million ~$45 – $55 million Net Interes