Production and Revenue - In Q1 2025, total production averaged approximately 49,393 Boepd, a decrease of 21% from 62,645 Boepd in Q1 2024[135] - Oil and gas revenue decreased by $129 million to $290.1 million in Q1 2025, compared to $419.1 million in Q1 2024, primarily due to lower production and prices[139] - Average realized oil sales price per barrel decreased to $73.90 in Q1 2025 from $82.23 in Q1 2024, reflecting a 10% decline[135] - Production in Ghana averaged approximately 99,300 Boepd gross (33,000 Boepd net) in Q1 2025, impacted by a two-week scheduled shutdown[126] Financial Performance and Debt - Net cash used in operating activities for the three months ended March 31, 2025 was $0.9 million, a significant decrease from $272.6 million in the same period of 2024[151] - Total long-term debt as of March 31, 2025 was $2.9 billion, an increase from $2.8 billion as of December 31, 2024[152] - The company has a total principal debt repayment obligation of $2,900.274 million, with significant repayments due in 2025 and 2026[170] - The company has outstanding borrowings totaling $1.0 billion with a weighted average interest rate of 8.4% as of March 31, 2025[191] Capital Expenditures and Budget - The company estimates capital expenditures for 2025 will be $400 million or less, focusing on drilling, exploitation, and production activities[154] - Approximately $275 million of the capital budget is allocated for maintenance activities across producing assets in Ghana, Equatorial Guinea, and the Gulf of America[155] - The company plans to spend less than $75 million on appraisal and development programs in the Gulf of America, Mauritania, and Senegal[156] Projects and Operations - The Greater Tortue Ahmeyim LNG project achieved first gas production on December 31, 2024, with first LNG cargo completed in April 2025[132] - The drilling campaign in the Jubilee Field is expected to commence in Q2 2025, including two in-fill wells[127] - Winterfell-3 well has been temporarily plugged and abandoned while options for restoring production are evaluated[129] - The company has a commitment to drill one development well in Equatorial Guinea as of March 31, 2025[172] Tax and Regulatory Changes - The corporate tax rate in Equatorial Guinea was reduced from 35% to 25%, effective January 1, 2025[130] Commodity Prices and Sensitivity - Oil prices in the first three months of 2025 ranged between $69.83 and $83.06 per Bbl for Dated Brent, indicating significant price volatility[183] - The company's commodity price sensitivity indicates significant exposure to fluctuations in oil prices, impacting earnings projections[188] Derivative Instruments and Interest Rates - The fair value of the company's outstanding derivative contracts as of March 31, 2025, is $3.590 million, down from $11.670 million as of December 31, 2024[181] - The fair market value of the company's interest rate swaps was a net asset of approximately $1.3 million as of March 31, 2025[192] - The company's interest rate derivative instruments are sensitive to changes in market interest rates, affecting future borrowings and payments[191] Financial Covenants and Compliance - The company is in compliance with the financial covenants contained in the Facility as of March 31, 2025[160] Other Financial Commitments - As of March 31, 2025, the company has incurred approximately $312.7 million of its estimated $370.0 million share for the Carry Advance Agreements with national oil companies[173] - The company has a decommissioning trust agreement with estimated total commitments of approximately $126.1 million as of March 31, 2025[172] - The company's liabilities for asset retirement obligations are not included in the purchase obligations, which total $20.3 million[172] Interest Rate Projections - The weighted average interest rate on variable rate debt is projected to increase from 8.32% in 2025 to 9.52% in 2029[170] - If the floating market interest rate increased by 10%, the estimated additional interest expense would be $4.3 million per year, reduced to $1.6 million due to a fixed interest rate swap[191] - The impact of the 2025 fixed interest rate swap would mitigate additional interest expenses associated with floating rate debt[191] Risk Assessment - A hypothetical 10% increase in commodity futures prices would decrease future pre-tax earnings by approximately $18.6 million, while a 10% decrease would increase future pre-tax earnings by approximately $21.6 million[188]

Kosmos Energy (KOS) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Speaker0 Day, everyone. Welcome to Kosmos Energy's First Quarter twenty twenty five Conference Call. As a reminder, today's call is being recorded. At this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Kosmos Energy. Speaker1 Thank you, operator, and thanks to everyone for joining us today. This morning, we issued our first quarter twenty twenty five earnings release. This release and the slide pr ...

First Quarter 2025 Results May 6, 2025 NYSE/LSE: KOS Strictly Private and Confidential 1 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 that address activities, events or developments that Kosmos Energy Ltd. ("Kosmos" or the "Company") expects, believes or a ...

Exhibit 99.1 NEWS RELEASE KOSMOS ENERGY ANNOUNCES FIRST QUARTER 2025 RESULTS DALLAS - May 6, 2025-- Kosmos Energy Ltd. ("Kosmos" or the "Company") (NYSE/LSE: KOS) announced today its financial and operating results for the first quarter of 2025. For the quarter, the Company generated a net loss of $111 million, or $0.23 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net loss of $105 million, or $0.22 per diluted share for the fi ...

Group 1 - The current stock market is experiencing volatility due to earnings season surprises and trade war impacts, making it challenging to predict future directions [1] - The author has extensive experience in investment analysis, focusing on identifying underappreciated companies that can provide value to investors [1] Group 2 - The article does not provide specific company or industry insights, focusing instead on the author's background and investment philosophy [2][3]

Financial Data and Key Metrics Changes - Kosmos Energy Ltd. reported a significant reduction in capital expenditures (CapEx) expected to fall from over $800 million in 2023 and 2024 to $400 million in 2025, representing a decrease of over 50% [10][28] - The company achieved a year-end 2024 2P reserves of 513 million barrels of oil equivalent, with a reserve replacement ratio of 137%, indicating strong reserve growth [13][15] - The company maintained a strong financial position by raising $900 million in new bonds and refinancing its reserve-based lending facility, extending average debt maturity to around four years [20][25] Business Line Data and Key Metrics Changes - Production for Q4 2024 was lower than guidance due to issues at the Jubilee field, but actions have been taken to resolve these issues, and production is expected to stabilize [21][22] - The company achieved first oil at Winterfell in summer 2024 and expects production to rise as new wells come online [18][19] - The Gulf of America business unit is projected to see a 20% year-over-year increase in production, with full-year guidance of 17,000 barrels of oil equivalent per day net [49] Market Data and Key Metrics Changes - The company is focusing on the Gulf of America for exploration efforts, leveraging advanced seismic imaging and reservoir management tools [12][44] - The GTA project is expected to ramp up production in Q1 2025, with first LNG production achieved in early February 2025 [34][36] - The company is actively managing oil price volatility through a rolling hedging program, with around 60% of first-half oil production hedged [26][27] Company Strategy and Development Direction - Kosmos Energy Ltd. aims to prioritize cash generation through maximizing revenue and rigorous cost management, with a focus on reducing overhead costs by $25 million by the end of 2025 [11][28] - The company plans to use generated cash flow primarily for debt paydown until reaching a leverage goal of below 1.5 times at mid-cycle oil prices [12][13] - The strategic focus includes enhancing the reserve base and transitioning 2C resources into 2P reserves through improved technology and drilling [15][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable cash generation due to a strong reserve base and disciplined cost management [15][53] - The company is optimistic about the future potential of the GTA project and its ability to meet local market gas needs while driving low-cost expansions [38][39] - Management acknowledged challenges in production reliability at Jubilee but emphasized ongoing efforts to improve power generation reliability and water injection [111][112] Other Important Information - Kosmos Energy Ltd. achieved zero lost time injuries or total recordable injuries in 2024, maintaining a strong safety performance [17] - The company is not planning to revisit discussions with Tullow, focusing instead on free cash flow accretion and maintaining a strong portfolio [120][121] Q&A Session Summary Question: Discussion on startup costs and their nature - Management indicated that startup and commissioning costs are expected to be one-time in nature, with costs trending lower as production ramps up [56][58] Question: CapEx guidance and potential for lower spending - Management confirmed a CapEx ceiling of $400 million for 2025, emphasizing a focus on capital efficiency and free cash flow generation [63][64] Question: Clarification on GTA phase one plus - Management explained that phase one plus involves fully utilizing existing infrastructure with minimal additional CapEx, aiming for increased production capacity [75][76] Question: Jubilee production assumptions - Management highlighted the importance of achieving 100% voidage replacement and reliable power generation to meet production guidance for Jubilee [82][86] Question: Confidence in Jubilee's performance - Management expressed confidence in addressing past issues and achieving production targets through effective reservoir management and additional drilling [110][112] Question: Future M&A considerations - Management stated that there are no current plans to revisit discussions with Tullow, focusing instead on free cash flow and value accretion [120][121] Question: Timeline for achieving leverage goals - Management anticipates reaching a leverage level of around 1.5 times by the latter half of 2026, with a focus on debt paydown and production growth [127][128] Question: Tortue project CapEx implications - Management indicated that future CapEx for Tortue will be minimal, focusing on sustaining current production levels and maximizing revenue [102][103]

Kosmos Energy Ltd. (NYSE:KOS) Q4 2024 Earnings Conference Call February 24, 2025 11:00 AM ET Company Participants Jamie Buckland - VP, IR Andy Inglis - Chairman and CEO Neal Shah - CFO Conference Call Participants Neil Mehta - Goldman Sachs Charles Meade - Johnson Rice Matthew Smith - Bank of America David Round - Stifel Nicolaus Mark Wilson - Jefferies Operator Good day, everyone. Welcome to Kosmos Energy Ltd.'s fourth quarter and full year 2024 conference call. As a reminder, today's call is being recorde ...

Fourth Quarter & Full Year 2024 Results February 24, 2025 NYSE/LSE: KOS 1 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 that address activities, events or developments that Kosmos Energy Ltd. ("Kosmos" or the "Company") expects, believes or anticipates will ...

Financial Performance - Oil and gas revenue for the year ended December 31, 2024, was $1,675.36 million, a decrease of 1.5% from $1,701.61 million in 2023[471]. - Net income for 2024 was $189.85 million, down from $213.52 million in 2023, representing a decline of about 11.1%[471]. - The company's total assets increased to $5,308.99 million as of December 31, 2024, compared to $4,938.13 million in 2023, reflecting a growth of approximately 7.5%[469]. - The company's asset retirement obligations totaled $406.89 million as of December 31, 2024, an increase from $343.98 million in 2023, indicating a rise of approximately 18.3%[469]. - Total current liabilities increased to $594.95 million in 2024 from $554.83 million in 2023, marking an increase of about 7.2%[469]. - The company reported a basic net income per share of $0.40 for 2024, down from $0.46 in 2023, reflecting a decrease of approximately 13.0%[471]. - Long-term debt increased to $2,744.71 million in 2024 from $2,390.91 million in 2023, representing an increase of about 14.8%[469]. - Operating cash flow for 2024 was $678.249 million, down from $765.170 million in 2023, reflecting a decline of 11.4%[478]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $85.277 million, compared to $98.761 million in 2023, a decrease of 13.4%[487]. - The total costs and expenses for 2024 were $1,325.75 million, slightly down from $1,329.80 million in 2023, showing a marginal decrease of about 0.3%[471]. Debt and Financing - Outstanding borrowings under the Facility totaled $900.0 million as of December 31, 2024, with a weighted average interest rate of approximately 8.4%[437]. - The Facility size and borrowing base capacity increased to $1.35 billion from $1.25 billion, with borrowings totaling $900.0 million and undrawn availability of $450 million as of December 31, 2024[550][552]. - The net leverage ratio as of December 31, 2024, was 2.54x, indicating a need to restrict approximately $66.0 million in cash unless waived by lenders[487]. - The Company recognized a loss on debt modifications of approximately $22.0 million during the second quarter of 2024 due to the amendment and restatement of the Facility[550]. - The 7.125% Senior Notes outstanding principal decreased to $250.0 million from $650.0 million, reflecting a significant reduction in debt obligations[548]. - The Company issued $450.0 million of 7.500% Senior Notes in March 2021, receiving net proceeds of approximately $444.4 million after fees, which were used to repay outstanding indebtedness and for general corporate purposes[570]. - The Company completed the repurchase of approximately $49.7 million of the 7.500% Senior Notes on September 24, 2024, pursuant to the Tender Offers[571]. - In September 2024, the Company issued $500.0 million of 8.750% Senior Notes, receiving net proceeds of approximately $494.9 million after fees, which were used to fund Tender Offers and related expenses[577]. - The Company issued $400.0 million of 3.125% Convertible Senior Notes in March 2024, receiving net proceeds of $390.4 million after fees[584]. - The carrying value of total debt as of December 31, 2024, is $2,781,497,000, an increase from $2,414,921,000 in 2023, representing a growth of approximately 15.1%[619]. Commodity and Derivative Instruments - Oil prices during 2024 ranged between $70.56 and $93.35 per barrel for Dated Brent, indicating significant volatility in commodity prices[431]. - The company is exposed to risks from changes in commodity prices and interest rates, which could impact revenues and cash flows[425]. - The company has various oil derivative contracts, including collars, put options, call options, and swaps, to mitigate exposure to commodity price risk[432]. - The company entered into Dated Brent three-way collar contracts for 2.0 million barrels from January 2025 through December 2025, with a sold put price of $55.00 per barrel[435]. - The estimated fair value of derivative assets was $11,670,000, compared to $6,765,000 in 2023[605]. - Total derivatives not designated as hedging instruments resulted in a loss of $14,747,000 for the year ended December 31, 2024[607]. - The company has a notional fixed rate of 3.645% on interest rate swaps with a notional amount of $500,000, effective January to December 2025[603]. - The total fair value of the company's liabilities related to commodity derivatives is $(3,103,000) as of December 31, 2023[611]. - The company’s provisional oil sales derivative is valued at $2,242,000, based on sales volumes and pricing differences over the contract term[613]. Exploration and Development - The company’s ability to find and develop new oil and gas prospects is critical for future growth and operational success[21]. - Exploration expenses rose significantly to $119.91 million in 2024, compared to $42.28 million in 2023, indicating an increase of approximately 183.5%[471]. - The company completed the acquisition of an additional 5.5% interest in the Winterfell area for $9.6 million in March 2022[520]. - The acquisition of an additional 3.2% interest in the Winterfell area was completed for $6.6 million in September 2022, raising the total interest to 25.0%[521]. - Kosmos increased its participating interest in the Tiberius area from 33.3% to 50.0% following the acquisition of an additional 16.7% interest in March 2024[517]. - The company holds a 24% non-operated participating interest in Block EG-01 offshore Equatorial Guinea, covering approximately 59,400 acres[518]. - Kosmos assumed BP's participating interest in the Cayar Offshore Profond Block, increasing its interest to 90% effective January 18, 2024[519]. - The Yakaar and Teranga discoveries in Senegal continue to progress, with a final investment decision for development expected to be made following additional evaluations[541]. Asset Management - The company follows the successful efforts method of accounting for its oil and gas properties, with proved properties being depleted using the unit-of-production method based on estimated proved oil and gas reserves[449]. - Proved oil and gas reserves are estimated by independent petroleum engineering consultants, affecting depletion calculations and impairment assessments[504]. - The company recorded depletion expense of $419.3 million in 2024, compared to $411.6 million in 2023, and no proved property impairments were recorded in 2024[533]. - The company capitalizes asset retirement costs by increasing the carrying amount of the related long-lived asset by the same amount as the liability[497]. - The company recognized tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination[512]. - The company contributed $11.5 million to the decommissioning trust fund in 2024, with investments primarily in US Treasury debt securities valued at $10,653,000[616]. - The estimated fair value of the decommissioning trust fund investments is $10,653,000, with unrealized losses of $55,000 recorded for the year[617]. - The company’s long-lived assets are subject to fair value adjustments based on impairment reviews when circumstances indicate potential recoverability issues[620].

Group 1: Merger and Acquisition Insights - Kosmos Energy (KOS) has decided not to proceed with the acquisition of Tullow Oil (TUWOY), which was initially discussed as an all-share deal [8][10] - The potential merger was projected to create a combined entity with a production capacity exceeding 130,000 barrels of oil equivalent per day (boe/d) [9] - Analysts noted that the merger could have provided operational synergies and improved financials for Tullow Oil, given both companies' shared assets in Ghana [3][4] Group 2: Financial and Operational Context - Both Kosmos Energy and Tullow Oil are currently facing significant debt burdens, which has raised concerns about their financial stability [4] - Tullow Oil's management expressed confidence in the company's ability to operate independently, while Kosmos Energy is seen as well-positioned to enhance its capital structure [5] - The deadline for Kosmos Energy to make an acquisition offer was set for January 9, 2025, but the company retains the option to reconsider its decision under certain circumstances [10] Group 3: Industry Performance Indicators - TechnipFMC plc reported a total backlog of $14.7 million in Q3 2024, reflecting an 11.1% increase year-over-year, indicating strong revenue growth potential [7] - Zacks Rank indicates that TechnipFMC plc holds a strong buy rating, while Nine Energy Service is rated as a buy, suggesting positive market sentiment towards these companies [11]