Kosmos Energy Announces First Quarter 2015 Results
Highlights for the quarter ended
- Sold 1.9 million barrels of oil, net to Kosmos
- Increased gas exports from Jubilee to approximately 75 MMcfpd by quarter end
- Completed more than 55% of the development of the TEN project
- Safely drilled the CB-1 exploration well
- Reaffirmed borrowing base under the reserve-based lending facility and included TEN
-
Closed farm-out agreement of
Mauritania licenses withChevron
“Kosmos is off to a good start in 2015,” said
Commenting on the recent success of Kosmos’ exploration program, Mr.
Inglis said: “The quality of our exploration portfolio was validated by
our recent play-opening gas discovery offshore
First quarter 2015 oil revenues were
Production expense for the first quarter of 2015 was
Exploration expenses in the first quarter of 2015 totaled
Depletion and depreciation expense was
General and administrative expenses were
The first quarter results included a mark-to-market gain of
Income tax expense for the first quarter of 2015 was
Total capital expenditures in the first quarter were
Kosmos exited the first quarter of 2015 with
Operational Update
In the first quarter of 2015, Jubilee field gross production averaged over 103,000 bopd. Gas exports continued to ramp up during the quarter and by the end of March were approximately 75 MMcfpd and the gas export facilities continue to operate reliably.
The Tweneboa, Enyenra and Ntomme (TEN) project, the second major oil
development project in
During the first quarter, the Company submitted a declaration of
commerciality on the Mahogany discovery. The Company expects to submit a
plan of development concerning the Mahogany discovery area later this
year. Kosmos is currently in discussions with the government of
In
In April, the Company announced the Tortue-1 exploration well made a
significant gas discovery offshore
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss first quarter
2015 financial and operating results today at
About
Forward-Looking Statements
This press release 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 press release that
address activities, events or developments that Kosmos expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Kosmos’ estimates and forward-looking statements are
mainly based on its current expectations and estimates of future events
and trends, which affect or may affect its businesses and operations.
Although Kosmos believes that these estimates and forward-looking
statements are based upon reasonable assumptions, they are subject to
several risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or
other similar words are intended to identify forward-looking statements.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Kosmos, which may
cause actual results to differ materially from those implied or
expressed by the forward-looking statements. Further information on such
assumptions, risks and uncertainties is available in Kosmos’
| Kosmos Energy Ltd. | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| (In thousands, except per share amounts) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| (unaudited) | ||||||||||
| Revenues and other income: | ||||||||||
| Oil and gas revenue | $ | 109,164 | $ | 212,853 | ||||||
| Gain on sale of assets | 22,751 | 23,769 | ||||||||
| Other income | 642 | 439 | ||||||||
| Total revenues and other income | 132,557 | 237,061 | ||||||||
| Costs and expenses: | ||||||||||
| Oil and gas production | 32,100 | 16,323 | ||||||||
| Exploration expenses | 98,941 | 12,809 | ||||||||
| General and administrative | 38,667 | 27,413 | ||||||||
| Depletion and depreciation | 37,007 | 46,378 | ||||||||
| Interest and other financing costs, net | 10,751 | 9,137 | ||||||||
| Derivatives, net | (32,327 | ) | (2,028 | ) | ||||||
| Other expenses, net | 628 | 1,277 | ||||||||
| Total costs and expenses | 185,767 | 111,309 | ||||||||
| Income (loss) before income taxes | (53,210 | ) | 125,752 | |||||||
| Income tax expense | 25,699 | 50,783 | ||||||||
| Net income (loss) | $ | (78,909 | ) | $ | 74,969 | |||||
| Net income (loss) per share: | ||||||||||
| Basic | $ | (0.21 | ) | $ | 0.20 | |||||
| Diluted | $ | (0.21 | ) | $ | 0.19 | |||||
| Weighted average number of shares used to compute net income (loss) per share: | ||||||||||
| Basic | 380,355 | 377,830 | ||||||||
| Diluted | 380,355 | 381,472 | ||||||||
| Kosmos Energy Ltd. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands, unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 360,465 | $ | 554,831 | ||||
| Receivables | 153,229 | 163,544 | ||||||
| Other current assets | 317,743 | 292,101 | ||||||
| Total current assets | 831,437 | 1,010,476 | ||||||
| Property and equipment, net | 1,821,154 | 1,784,846 | ||||||
| Other non-current assets | 169,301 | 177,444 | ||||||
| Total assets | $ | 2,821,892 | $ | 2,972,766 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 126,114 | $ | 184,400 | ||||
| Accrued liabilities | 133,333 | 201,967 | ||||||
| Deferred tax liability | 63,211 | 61,683 | ||||||
| Other current liabilities | 9,312 | 721 | ||||||
| Total current liabilities | 331,970 | 448,771 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt | 794,434 | 794,269 | ||||||
| Deferred tax liability | 346,465 | 337,961 | ||||||
| Other non-current liabilities | 64,073 | 52,806 | ||||||
| Total long-term liabilities | 1,204,972 | 1,185,036 | ||||||
| Total shareholders’ equity | 1,284,950 | 1,338,959 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,821,892 | $ | 2,972,766 | ||||
| Kosmos Energy Ltd. | ||||||||||
| Condensed Consolidated Statements of Cash Flow | ||||||||||
| (In thousands, unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2015 | 2014 | |||||||||
|
Operating activities: |
||||||||||
| Net income (loss) | $ | (78,909 | ) | $ | 74,969 | |||||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||
| Depletion, depreciation and amortization | 39,617 | 49,164 | ||||||||
| Deferred income taxes | 5,783 | 30,267 | ||||||||
| Unsuccessful well costs | 83,627 | (245 | ) | |||||||
| Change in fair value of derivatives | (34,980 | ) | (810 | ) | ||||||
| Cash settlements on derivatives | 53,932 | (1,555 | ) | |||||||
| Equity-based compensation | 25,183 | 17,900 | ||||||||
| Gain on sale of assets | (22,751 | ) | (23,769 | ) | ||||||
| Loss on extinguishment of debt | — | 2,898 | ||||||||
| Other | 1,171 | (4,220 | ) | |||||||
| Changes in assets and liabilities: | ||||||||||
| Net changes in working capital | (81,653 | ) | (31,013 | ) | ||||||
| Net cash provided by (used in) operating activities | (8,980 | ) | 113,586 | |||||||
| Investing activities: | ||||||||||
| Oil and gas assets | (184,899 | ) | (96,486 | ) | ||||||
| Other property | (280 | ) | (428 | ) | ||||||
| Proceeds from sale of assets | — | 34,581 | ||||||||
| Restricted cash | (59 | ) | (2,410 | ) | ||||||
| Net cash used in investing activities | (185,238 | ) | (64,743 | ) | ||||||
| Financing activities: | ||||||||||
| Payments on long-term debt | — | (100,000 | ) | |||||||
| Purchase of treasury stock | (148 | ) | (71 | ) | ||||||
| Deferred financing costs | — | (18,852 | ) | |||||||
| Net cash used in financing activities | (148 | ) | (118,923 | ) | ||||||
| Net decrease in cash and cash equivalents | (194,366 | ) | (70,080 | ) | ||||||
| Cash and cash equivalents at beginning of period | 554,831 | 598,108 | ||||||||
| Cash and cash equivalents at end of period | $ | 360,465 | $ | 528,028 | ||||||
| Kosmos Energy Ltd. | |||||||||||||||
| EBITDAX | |||||||||||||||
| (In thousands, unaudited) | |||||||||||||||
|
Three Months Ended
March 31, |
Twelve Months Ended March 31, |
||||||||||||||
| 2015 | 2014 | 2015 | |||||||||||||
| Net income (loss) | $ | (78,909 | ) | $ | 74,969 | $ | 125,492 | ||||||||
| Exploration expenses | 98,941 | 12,809 | 179,651 | ||||||||||||
| Depletion and depreciation | 37,007 | 46,378 | 188,709 | ||||||||||||
| Equity-based compensation | 25,183 | 17,900 | 81,870 | ||||||||||||
| Unrealized (gain) loss on commodity derivatives | 18,971 |
(2,056 |
) |
|
(242,474 | ) | |||||||||
| Gain on sale of oil and gas properties | (22,751 | ) |
(23,769 |
) |
|
(22,751 | ) | ||||||||
| Interest and other financing costs, net | 10,751 | 9,137 | 47,162 | ||||||||||||
| Income tax expense | 25,699 | 50,783 | 273,814 | ||||||||||||
| Restructuring charges | — | — | 11,742 | ||||||||||||
| EBITDAX | $ | 114,892 | $ | 186,151 | $ | 643,215 | |||||||||
| We define EBITDAX as net income (loss) plus (i) depletion and depreciation, (ii) exploration expenses, (iii) interest and other financing costs, net, (iv) unrealized (gain) loss on commodity derivatives, (v) income tax expense, (vi) equity-based compensation, (vii) (gain) loss on sale of oil and gas properties, (viii) restructuring charges and (ix) similar other material items, which management believes affect the comparability of operating results. |
| Oil Revenue Summary | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2015 | 2014 | |||||||
| Net Oil Volume Sold (MMBbl) | 1.9 | 1.9 | ||||||
| Realized Oil Price (per Bbl) | $ | 57.47 | $ | 109.87 | ||||
| Oil Revenue (thousands) | $ | 109,164 | $ | 212,853 | ||||
| Underlifted by approximately 325 thousand barrels as of March 31, 2015. |
| Hedging Summary | |||||||||||||||||
| As of April 30, 2015 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| 2015 | 2016 (1) | 2017 (2) | Total | ||||||||||||||
| Hedging Position (MMBbl) | 4.7 | 6.0 | 2.0 | 12.7 | |||||||||||||
| Weighted Average Floor Price ($/Bbl) | $ | 89.41 | $ | 81.67 | $ | 72.50 | |||||||||||
| (1) | Includes 2.0 MMBbl of hedged volumes in 2016 where we swapped 2.0 MMBbl at $75/Bbl and a corresponding put was sold at $60/Bbl. Average floor price reflects the swap price. | |
| (2) | Includes 2.0 MMBbl of hedged volumes in 2017 that were executed in April 2015. We swapped 2.0 MMBbl at $72.50/Bbl, a corresponding put was sold at $55/Bbl and a call was purchased at $90/Bbl. The contracts have a weighted average net deferred premium payable of $2.13/Bbl. Excludes 2.0 MMBbl of calls sold at $85/Bbl. |
Source:
Kosmos Energy Ltd.
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+1-214-445-9628
nshah@kosmosenergy.com
or
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