Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Investor Presentation (November 2017)
26 slides from Kosmos Energy's investor presentation, November 2017
Slide 1: Investor Presentation
Investor Presentation NYSE/LSE: KOS November 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 and Equatorial Guinea World-Class Basin Opened in Mauritania and Senegal with FID on Tortue project by 2018 Near-Term Transformational Exploration Catalysts and Long Term Port
Slide 4: Kosmos' Strategy
Kosmos’ Strategy Proven strategy targets frontier basins at the low end of the industry cost curve, maximizing returns in a low commodity price environment – no change since inception Business Objectives – Efficiency: Deliver high success rate – Effectiveness: Discover high-value / high- volume barr
Slide 5: How is Kosmos Differentiated?
How is Kosmos Differentiated? Self-funded explorer with preeminent exploration track record • Focused Strategy GEOGRAPHY GLOBAL OIL / GAS ATLANTIC MARGIN – Identify and capture high-volume BASINS MATURE FRONTIER and high-value barrels MULTIPLE / SINGLE / GEOLOGY DIVERSE FOCUSED FIRST MOVER / TIMING
Slide 6: Kosmos' Track Record of Success
Kosmos’ Track Record of Success Track record of opening new basins efficiently through disciplined execution of strategy… Frontier Commercial Success Rate 35 35% 30 30% 25 25% 20 20% 15 15% 10 10% Median Commercial Success Rate 5 5% 0 0% A B C D E F G H I J K L M N O Kosmos Commercial Discovery Non-
Slide 7: Development Pathfinders
Development Pathfinders …and history of using accelerated, phased development plans that utilize proven concepts and contractors to mitigate the risks to deliver early production and cash flow and enhance the returns of our projects Discovery to First Oil (years)1 Discovery to First Gas (years)2 Avg
Slide 8: 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 9: 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 10: Financial Strength
Financial Strength Significant liquidity and strong free cash flow generation enable execution Kosmos Liquidity2 $1,500 Substantial liquidity $1,250 – ~$1.3 billion as of 3Q:17 $1,000 $mm 2017E Capex decreasing >75% from 2016 $750 – 2017E Capex budget of $100 million1 $500 $250 Substantial free cash
Slide 11: The Foundation Production Assets
The Foundation Production Assets Strictly Private and Confidential
Slide 12: Ghana Overview
Ghana Overview Foundation long-life assets delivering increasing production and free cash flow positions Kosmos at low end of cost curve Strong, growing reserve base Jubilee Oil (Gross) TEN Oil (Gross) ‒ Greater than 100% RRR last four years Reserves Potential Resources 782 MMBbls1 275 MMBbls1 1+ Bn
Slide 13: High-Margin Production & Upside
High-Margin Production & Upside Demonstration of counter-cyclical strategy of reentry into the Transform Margin accessing world-class discovered resource providing additional cash flow with multiple sources of upside Ceiba & Okume – Ultimate Recovery Potential (MMBO) 2,000 ~2,000 Potential Resource
Slide 14: The Exploration Opportunity
The Exploration Opportunity Strictly Private and Confidential
Slide 15: 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 16: 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 BP operates development of Tortue project targeting FID by 2018 Tortue-1 discovery – Partnership benefits from BP’s extensive LNG 2015 ma
Slide 17: 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 Lamantin Three oil / gas sources – Older, deeper,
Slide 18: 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 opportunity for a second cost competitive LNG hub in Senegal C18 – De-r
Slide 19: Lamantin Prospect
Lamantin Prospect 2 – 3 BBOE gross unrisked resource potential – Located in the higher confidence Cenomanian-Turonian and Albian oil source kitchen with increased probability for liquids – Large, basin floor fan of Upper Cretaceous (Campanian) age with stacked, C18 Lamantin amalgamated channel syste
Slide 20: 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 Neocomian-Valanginian source kitchen – Very large basin floor fan on central arm of Senegal River, comprising stacked, amalgamated Lower Cenomanian chan
Slide 21: Suriname-Guyana Basin
Suriname-Guyana Basin Two wells being matured to find oil in Suriname starting in 2Q 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- with other industry
Slide 22: Substantial Drill Out in 2017-2018
Substantial Drill Out in 2017-2018 Drilling four wells over the next 12 months that are amongst the industry’s most significant exploration wells in the world’s two most promising offshore hotspots 4,000 3,500 Net Unrisked Resource (MMBoe) per REP 3,000 2,500 37 explorers represent <1.8 BBOE combine
Slide 23: Rio Muni Basin Exploration Opportunity
Rio Muni Basin Exploration Opportunity Material position in an underdeveloped petroleum system with significant, untested potential Two primary Cretaceous fairways in Rio Muni Basin: Basin Floor Fan Play Slope Play Basin floor / lower slope fans: Sao Tome / Equatorial Guinea – Potential early and la
Slide 24: Underexplored Rio Muni Basin
Underexplored Rio Muni Basin Petroleum system originally opened by members of Kosmos exploration team has been overlooked by the industry since early 2000s Rio Muni Basin Activity Ceiba and Okume Complex discovered in 1999 by Well Count members of Kosmos exploration team while at 10 Triton Energy (a
Slide 25: Kosmos' Future Value Growth
Kosmos’ Future Value Growth Growing cash flow in Ghana and Equatorial Guinea combined with defined and funded growth in Mauritania/Senegal creates a unique investment opportunity – Growing production / cash flow with decreasing Growing cash flow in Ghana committed capex – ~40% production growth expe
Slide 26: Investor Presentation November 2017
Investor Presentation November 2017 26
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