Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Investor Presentation (October 2016)
17 slides from Kosmos Energy's investor presentation, October 2016
Slide 1: Investor Presentation
Investor Presentation NYSE: KOS October 2016 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: Leader in Exploration
Leader in Exploration – Differentiated strategy finds and develops large Proven, Repeatable, and quantities of high-value resource efficiently, and Value-Focused Strategy repeatedly – Delivered top-quartile full-cycle returns since inception – Inflection point has arrived: Growing production / cash
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 25,000 Responsible for opening 2 of 3 new Mauritania / Atlantic
Slide 5: Delivering Top-Quartile Returns
Delivering Top-Quartile Returns Growing oil demand will require new sources of supply from both conventional and unconventional resources, and only the best assets combined with the best management teams have created value on a full-cycle basis Sources of incremental production 10 Year Full-Cycle Ex
Slide 6: 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 40 Ghana Net Production Volumes1 Production expected to grow ~50% as capex falls ~90% from 2015-2017 ‒ TEN first oil achieved in August 2016
Slide 7: Jubilee Cash Flow and Value Intact
Jubilee Cash Flow and Value Intact Financial impact of turret bearing issue expected to be mitigated through continued field production and comprehensive insurance coverages Projected Jubilee Cash Flow Summary1 Revised operating procedures implemented and working Long-term solution moving toward imp
Slide 8: 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 9: 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 10: 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 Tortue Cooperation Agreement (ICA) by both Devel
Slide 11: Finding Oil
Finding Oil Analysis of liquids and cores provides compelling evidence of three oil-prone source rocks Chinguetti Field C-T Source C-T Source – Proven in Chinguetti Field C-T / Albian Oil Albian Source Mature – Upper Albian side wall cores Teranga Liquids and liquids sampled in Albian Source Teran
Slide 12: 2nd Exploration Phase – Outboard
2nd Exploration Phase – Outboard Second phase exploration program will focus on significant additional prospectivity for liquids outboard of existing slope/channel discoveries Tortue-1 Teranga-1 Marsouin-1 Requin-Tigre-1 C-T / Albian Oil Mature Chinguetti Apto- Barremian Oil Mature Marsouin MAURITAN
Slide 13: Finding Oil in Suriname
Finding Oil in Suriname High-graded opportunity to find oil in proven Guyana-Suriname Basin ready for late 2017 / 2018 drilling A’ Play extension of proven oil province Farm-out attracted interest of Liza partner, leverages learnings – 3D seismic acquisition in Block 42 commenced in September 2016 K
Slide 14: Finding Oil in São Tomé
Finding Oil in 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 Acquiring Kosmos’ largest ever
Slide 15: Financial Strength To Execute Through Cycle
Financial Strength To Execute Through Cycle Significant liquidity and hedge-protected cash flows enable execution Kosmos Liquidity1 $1,500 Substantial liquidity $1,250 – $1.2 billion1 $1,000 $ in millions $750 Low leverage $500 – No near-term maturities $250 $- Strong hedging program RBL RCF Cash Li
Slide 16: Leader in Exploration
Leader in Exploration – Differentiated strategy finds and develops large Proven, Repeatable, and quantities of high-value resource efficiently, and Value-Focused Strategy repeatedly – Delivered top-quartile full-cycle returns since inception – Inflection point has arrived: Growing production / cash
Slide 17: Investor Presentation October 2016
Investor Presentation October 2016