Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Investor Presentation (December 2014)
18 slides from Kosmos Energy's investor presentation, December 2014
Slide 1: Investor Presentation
Investor Presenta,on NYSE: KOS December 2014 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer Forward-‐Looking Statements This presenta,on contains forward-‐looking statements within the meaning of Sec,on 27A of the Securi,es Act of 1933 and Sec,on 21E of the Securi,es Exchange Act of 1934. All statements, other than statements of historical facts, included in this presenta,on t
Slide 3: Key Messages
Key Messages • The Right People – Track Record: Contrarian thinkers who are serial oil finders with a proven track record of deepwater exploration success • The Right Strategy – Discipline and Diligence: Identifying and accessing strategic opportunities in under-explored frontier / emerging basins w
Slide 4: The Challenge
The Challenge Recent lack of interna.onal deepwater success and the steady growth of U.S. shale have driven investors to the North American unconven.onal sector • Current view of unconven,onals: – Low geologic risk – Acceptable returns – Predictable, long term reserves / produc<on replacement and gr
Slide 5: The Opportunity
The Opportunity Kosmos focuses on the lowest por.on of the deepwater cost curve to create differen.ated value • Deepwater explora,on can deliver sustained, industry-‐leading returns – Kosmos “Second Inning” breakevens in $40-‐$60/bbl range – Average Shale breakeven of $80/bbl • Key to maximum value
Slide 6: How is Kosmos Differentiated?
How is Kosmos Differen,ated? Proven and repeatable business model targe.ng high-‐volume, high-‐value barrels 1ST INNING • Focused Strategy GEOGRAPHY GLOBAL OIL / GAS 2ND INNING TARGETED / OIL – Iden<fy and capture high-‐volume BASINS MATURE FRONTIER and high-‐value barrels MULTIPLE / SINGLE / GEO
Slide 7: Contrarian Perspective
Contrarian Perspec,ve Disciplined explora.on has posi.oned Kosmos to benefit from Industry failure • Industry Perspective: – Activity in the Atlantic Margin increased 1 significantly post pre-salt and Cretaceous discoveries (Brazil & Jubilee) – Despite increase in exploration activity, new play openi
Slide 8: "First Inning" Exploration Success – Ghana
“First Inning” Explora,on Success – Ghana Success in Ghana resulted from a well-‐executed explora.on strategy • Focused on West Africa Transform Margin Cretaceous play • Opened Tano Basin petroleum system offshore Ghana – Drilled 5 basin / play-‐opening wells with 20% success record – Delivered fol
Slide 9: Ghana Asset Growth
Ghana Asset Growth Ghana expected to deliver over 200 MBopd of produc.on (gross) providing con.nued reserves, produc.on and cash flow growth • Growing Produc,on – Jubilee FPSO deboZlenecking (>120 MBopd) § Greater Jubilee (including MTA) long-‐term produc<on plateau of 5-‐7 years – TEN development
Slide 10: Self-Funded Explorer
Self-‐Funded Explorer Unique business model enables us to execute our strategy and provides a compe..ve advantage • Strong cash flow genera,on from Jubilee – Significant cash margin due to first mover advantage • Disciplined financial management – Diversified sources of capital § Q3 2014 Liquidity ~ $1
Slide 11: Exploration "Second Inning"
Explora,on “Second Inning” Strategy being successfully executed to create an expanded “Second Inning” porTolio with substan.al hydrocarbon poten.al • Exported the core Cretaceous theme along the Atlan,c Margin – Established an industry-‐leading posi<on in Northwest Africa • “Second Inning” porqolio
Slide 12: Near-Term Transformational Catalysts
Near-‐Term Transforma,onal Catalysts Poised to drill 4 play opening wells over the next 18 months to test over 4 BBoe gross resource which, on success, would de-‐risk an addi.onal 18 BBoe of iden.fied, follow-‐on poten.al Play Opening Explora,on Schedule Pre-‐Drill Unrisked Prospect Pmean Target
Slide 13: Western Sahara – Aaiun Basin
Western Sahara – Aaiun Basin 1+ BBoe Al Khayr Prospect scheduled to spud late this year using the Atwood Achiever drillship • ~22,000 km2 posi,on captures undrilled, Cretaceous age delta (~950 GOM blocks) – 12+ BBoe poten<al in mul<ple plays / fairways – Strong evidence of reservoir and source • Key
Slide 14: Mauritania / Senegal
Mauritania / Senegal Farm-‐out process underway ahead of two poten.al play-‐opening wells next year • ~45,000 km2 con,guous posi,on captures mul,ple undrilled, Cretaceous age, petroleum systems – 8+ BBoe poten<al in mul<ple plays / fairways – Equivalent to ~1900 GOM blocks – Down-‐dip of proven w
Slide 15: Mauritania / Senegal Key Prospects
Mauritania / Senegal Key Prospects Two high poten.al prospects with AVO support to be tested in 2015 Tortue Prospect – 2.1BBoe Orca Prospect – 0.3BBoe Cretaceous age fan with AVO support Stacked, Cretaceous age channel with AVO support 0 10 0 10 km B A km Seismic abribute “switch-‐off” at common dep
Slide 16: Suriname – Guyana Basin
Suriname – Guyana Basin 3D seismic complete and farm-‐out in process ahead of a poten.al basin / play-‐opening well • ~11,000 km2 posi,on captures undrilled, Cretaceous-‐age, outboard Guyana petroleum system (~475 GOM blocks) – 1+ BBoe currently iden<fied poten<al in mul<ple deepwater plays / fair
Slide 17: The Right Time
The Right Time Kosmos is poised for transforma.onal value crea.on with a growing produc.on base, large “Second Inning” explora.on porTolio, strong balance sheet, and ac.ve play-‐opening drilling schedule 2012 2013 1H 2014 Next 18 Months Avg. Net Produc,on 18 23 25 25+ (MBopd) Liquidity ($Bn) / $1.1
Slide 18: Investor Presentation December 2014
Investor Presentation December 2014 18
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