Kosmos Energy (KOS) 10-Q 3 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 27, 2015
Document and Entity Information
Entity Registrant Name	Kosmos Energy Ltd.
Entity Central Index Key	1,509,991
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		387,407,506
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 252,611	$ 554,831
Restricted cash	31,500	15,926
Receivables:
Joint interest billings	54,569	60,592
Oil sales	59,338	61,731
Other	30,515	41,221
Inventories	70,078	55,354
Prepaid expenses and other	19,024	25,278
Deferred tax assets	8,160	32,268
Derivatives	110,674	163,275
Total current assets	636,469	1,010,476
Property and equipment:
Oil and gas properties, net	1,950,873	1,773,186
Other property, net	9,808	11,660
Property and equipment, net	1,960,681	1,784,846
Other assets:
Restricted cash	10,125	16,125
Long-term receivables - joint interest billings	24,922	14,174
Deferred financing costs, net of accumulated amortization of $37,778 and $33,389 at June 30, 2015 and December 31, 2014, respectively	52,300	48,753
Long-term deferred tax assets	12,515	9,182
Derivatives	44,251	89,210
Total assets	2,741,263	2,972,766
Current liabilities:
Accounts payable	149,719	184,400
Accrued liabilities	110,006	201,967
Deferred tax liability	43,316	61,683
Derivatives	924	721
Total current liabilities	303,965	448,771
Long-term liabilities:
Long-term debt	798,543	794,269
Derivatives	7,574	68
Asset retirement obligations	47,854	44,023
Deferred tax liability	358,569	337,961
Other long-term liabilities	9,565	8,715
Total long-term liabilities	$ 1,222,105	$ 1,185,036
Shareholders' equity:
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at June 30, 2015 and December 31, 2014
Common shares, $0.01 par value; 2,000,000,000 authorized shares; 393,742,864 and 392,443,048 issued at June 30, 2015 and December 31, 2014, respectively	$ 3,937	$ 3,924
Additional paid-in capital	1,906,718	1,860,190
Accumulated deficit	(648,951)	(494,850)
Accumulated other comprehensive income	378	767
Treasury stock, at cost, 8,797,511 and 5,555,088 shares at June 30, 2015 and December 31, 2014, respectively	(46,889)	(31,072)
Total shareholders' equity	1,215,193	1,338,959
Total liabilities and shareholders' equity	$ 2,741,263	$ 2,972,766

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Deferred financing costs, accumulated amortization (in dollars)	$ 37,788	$ 33,389
Preference shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preference shares, authorized shares	200,000,000	200,000,000
Preference shares, issued shares	0	0
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, authorized shares	2,000,000,000	2,000,000,000
Common shares, issued shares	393,742,864	392,443,048
Treasury stock, shares	8,797,511	5,555,088

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues and other income:
Oil and gas revenue	$ 119,200	$ 328,297	$ 228,364	$ 541,150
Gain on sale of assets	1,900		24,651	23,769
Other income	713	869	1,355	1,308
Total revenues and other income	121,813	329,166	254,370	566,227
Costs and expenses:
Oil and gas production	20,224	22,946	52,324	39,269
Exploration expenses	14,539	23,509	113,480	36,318
General and administrative	41,179	32,480	79,846	59,893
Depletion and depreciation	37,532	69,546	74,539	115,924
Interest and other financing costs, net	8,998	9,998	19,749	19,135
Derivatives, net	44,877	21,566	12,550	19,538
Restructuring charges		11,804		11,804
Other expenses, net	4,266	26	4,894	1,303
Total costs and expenses	171,615	191,875	357,382	303,184
Income (loss) before income taxes	(49,802)	137,291	(103,012)	263,043
Income tax expense	25,390	80,784	51,089	131,567
Net income (loss)	$ (75,192)	$ 56,507	$ (154,101)	$ 131,476
Net income (loss) per share:
Basic (in dollars per share)	$ (0.20)	$ 0.15	$ (0.40)	$ 0.34
Diluted (in dollars per share)	$ (0.20)	$ 0.15	$ (0.40)	$ 0.34
Weighted average number of shares used to compute net income (loss) per share:
Basic (in shares)	382,138	378,820	381,238	378,327
Diluted (in shares)	382,138	381,818	381,238	381,157

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (75,192)	$ 56,507	$ (154,101)	$ 131,476
Other comprehensive loss:
Reclassification adjustments for derivative gains included in net income (loss)	(195)	(405)	(389)	(811)
Other comprehensive loss	(195)	(405)	(389)	(811)
Comprehensive income (loss)	$ (75,387)	$ 56,102	$ (154,490)	$ 130,665

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Common Shares	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Treasury Stock	Total
Balance at Dec. 31, 2014	$ 3,924	$ 1,860,190	$ (494,850)	$ 767	$ (31,072)	$ 1,338,959
Balance (in shares) at Dec. 31, 2014	392,443
Increase (Decrease) in Shareholders' Equity
Equity-based compensation		48,679				48,679
Derivatives, net				(389)		(389)
Restricted stock awards and units	$ 13	(13)
Restricted stock awards and units (in shares)	1,300
Restricted stock forfeitures		15			(15)
Purchase of treasury stock		(2,153)			(15,802)	(17,955)
Net loss			(154,101)			(154,101)
Balance at Jun. 30, 2015	$ 3,937	$ 1,906,718	$ (648,951)	$ 378	$ (46,889)	$ 1,215,193
Balance (in shares) at Jun. 30, 2015	393,743

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net income (loss)	$ (154,101)	$ 131,476
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion, depreciation and amortization	79,758	121,269
Deferred income taxes	23,015	55,817
Unsuccessful well costs	86,603	2,815
Change in fair value of derivatives	11,605	22,301
Cash settlements on derivatives (including $93.5 million and $(0.02) million on commodity hedges)	93,275	(1,510)
Equity-based compensation	48,527	40,898
Gain on sale of assets	(24,651)	(23,769)
Loss on extinguishment of debt	165	2,898
Other	5,977	(4,132)
Changes in assets and liabilities:
(Increase) decrease in receivables	8,615	(135,631)
(Increase) decrease in inventories	(14,754)	7,519
(Increase) decrease in prepaid expenses and other	6,254	(24,696)
Decrease in accounts payable	(34,681)	(5,444)
Increase (decrease) in accrued liabilities	(52,154)	96,250
Net cash provided by operating activities	83,453	286,061
Investing activities
Oil and gas assets	(384,194)	(186,463)
Other property	(536)	(914)
Proceeds on sale of assets	28,603	58,315
Restricted cash	(9,574)	(1,827)
Net cash used in investing activities	(365,701)	(130,889)
Financing activities
Payments on long-term debt	(200,000)	(100,000)
Net proceeds from issuance of senior secured notes	206,774
Purchase of treasury stock	(17,955)	(10,940)
Deferred financing costs	(8,791)	(20,709)
Net cash used in financing activities	(19,972)	(131,649)
Net increase (decrease) in cash and cash equivalents	(302,220)	23,523
Cash and cash equivalents at beginning of period	554,831	598,108
Cash and cash equivalents at end of period	252,611	621,631
Cash paid for:
Interest	28,335	15,302
Income taxes	$ 17,119	$ 44,367

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash settlements on commodity derivatives	$ 93.5	$ (0.2)

Organization

Organization	6 Months Ended
	Jun. 30, 2015
Organization
Organization	1. Organization Kosmos Energy Ltd. was incorporated pursuant to the laws of Bermuda in January 2011 to become a holding company for Kosmos Energy Holdings. Kosmos Energy Holdings is a privately held Cayman Islands company that was formed in March 2004. As a holding company, Kosmos Energy Ltd.’s management operations are conducted through a wholly owned subsidiary, Kosmos Energy, LLC. The terms “Kosmos,” the “Company,” “we,” “us,” “our,” “ours,” and similar terms refer to Kosmos Energy Ltd. and its wholly owned subsidiaries, unless the context indicates otherwise. Kosmos is a leading independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. Our assets include existing production and other major development projects offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Ireland, Mauritania, Portugal, Senegal, Suriname, Morocco and Western Sahara. Kosmos is listed on the New York Stock Exchange and is traded under the ticker symbol KOS. We have one reportable segment, which is the exploration and production of oil and natural gas. Substantially all of our long-lived assets and product sales are currently related to production located offshore Ghana.

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies
Accounting Policies	2. Accounting Policies General The interim-period financial information presented in the consolidated financial statements included in this report is unaudited and, in the opinion of management, includes all adjustments of a normal recurring nature necessary to present fairly the consolidated financial position as of June 30, 2015, the changes in the consolidated statements of shareholders’ equity for the six months ended June 30, 2015, the consolidated results of operations for the three months and six ended June 30, 2015 and 2014, and consolidated cash flows for the six months ended June 30, 2015 and 2014. The results of the interim periods shown in this report are not necessarily indicative of the final results to be expected for the full year. The consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by Generally Accepted Accounting Principles in the United States of America (“GAAP”) have been condensed or omitted from these interim consolidated financial statements. These consolidated financial statements and the accompanying notes should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2014, included in our annual report on Form 10-K. Reclassifications Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net income (loss), current assets, total assets, current liabilities, total liabilities or shareholders’ equity. Restricted Cash In accordance with our commercial debt facility (the “Facility”), we are required to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period on the 7.875% Senior Secured Notes due 2021 (“Senior Notes”) plus the Corporate Revolver or the Facility, whichever is greater. As of June 30, 2015 and December 31, 2014, we had $24.3 million and $15.9 million, respectively, in current restricted cash to meet this requirement. In addition, in accordance with certain of our petroleum contracts, we have posted letters of credit related to performance guarantees for our minimum work obligations. These letters of credit are cash collateralized in accounts held by us and as such are classified as restricted cash. Upon completion of the minimum work obligations and/or entering into the next phase of the petroleum contract, the requirement to post the existing letters of credit will be satisfied and the cash collateral will be released. However, additional letters of credit may be required should we choose to move into the next phase of certain of our petroleum contracts. As of June 30, 2015 and December 31, 2014, we had $7.2 million and zero, respectively, of short-term restricted cash and $10.1 million and $16.1 million, respectively, of long-term restricted cash used to collateralize performance guarantees related to our petroleum contracts. Inventories Inventories consisted of $68.1 million and $55.3 million of materials and supplies and $2.0 million and $0.1 million of hydrocarbons as of June 30, 2015 and December 31, 2014, respectively. The Company’s materials and supplies inventory primarily consists of casing and wellheads and is stated at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory costs include expenditures and other charges incurred in bringing the inventory to its existing condition. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory costs. Recent Accounting Standards In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 modifies existing guidance related to the presentation of debt issuance costs which are currently capitalized and presented on the balance sheet as an asset. ASU 2015-03 requires these costs to be presented as a direct deduction from the face amount of the related debt. This guidance is effective for public companies for fiscal years beginning after December 15, 2015 and will be applied retrospectively for all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “ Consolidation (Topic 810) - Amendments to the Consolidation Analysis.” ASU 2015-02 modifies existing consolidation guidance related to limited partnerships and similar legal entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for public companies for fiscal years beginning after December 15, 2015 with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2015
Acquisitions and Divestitures
Acquisitions and Divestitures	3. Acquisitions and Divestitures In March 2015, we closed a farm-in agreement with Repsol Exploración, S.A. (“Repsol”), acquiring a non-operated interest in the Camarao, Ameijoa, Mexilhao and Ostra blocks in the Peniche Basin offshore Portugal. As part of the agreement, we will reimburse a portion of Repsol’s previously incurred exploration costs, as well as partially carry Repsol’s share of the costs of a planned 3D seismic program. After giving effect to the farm-in agreement, our participating interest is 31% in each of the blocks. In March 2015, we closed a farm-out agreement with Chevron Mauritania Exploration Limited, a wholly owned subsidiary of Chevron Corporation (“Chevron”), covering the C8, C12 and C13 petroleum contracts offshore Mauritania. Under the terms of the farm-out agreement, Chevron acquired a 30% non-operated working interest in each of the contract areas. Chevron will pay a disproportionate share of the costs of one exploration well and a second contingent exploration well, subject to maximum expenditure caps. In addition, Chevron paid its proportionate share of certain previously incurred exploration costs. Chevron did not fund drilling of the Tortue prospect, but retains the option to elect to participate in this prospect subject to Chevron paying a disproportionate share of its costs related to the Tortue prospect. After giving effect to the farm-out agreements, Kosmos, Chevron and Société Mauritanienne des Hydrocarbures et de Patrimoine Minier’s (“SMHPM”) (Mauritania’s national oil company) participating interest in Block C8, Block C12 and Block C13 is 60%, 30% and 10%, respectively, and we remain as operator. The final allocation resulted in sales proceeds of $28.7 million, which exceeded our book basis in the assets, resulting in a $24.7 million gain on the transaction.

Joint Interest Billings

Joint Interest Billings	6 Months Ended
	Jun. 30, 2015
Joint Interest Billings
Joint Interest Billings	4. Joint Interest Billings The Company’s joint interest billings consist of receivables from partners with interests in common oil and gas properties operated by the Company. Joint interest billings are classified on the face of the consolidated balance sheets as current and long-term receivables based on when collection is expected to occur. In 2014, the Ghana National Petroleum Corporation (“GNPC”) notified us and our block partners that it would exercise its right for the contractor group to pay its 5% share of the Tweneboa, Enyenra and Ntomme (“TEN”) development costs. We will be reimbursed for our portion of such costs plus interest from GNPC’s TEN production revenues under the terms of the Deepwater Tano (“DT”) petroleum contract. As of June 30, 2015 and December 31, 2014, the joint interest billing receivables due from GNPC for the TEN development costs were $24.9 million and $14.2 million, respectively, which are classified as long-term on the consolidated balance sheets.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2015
Property and Equipment
Property and Equipment	5. Property and Equipment Property and equipment is stated at cost and consisted of the following: June 30, December 31, 2015 2014 (In thousands) Oil and gas properties: Proved properties $ $ Unproved properties Support equipment and facilities Total oil and gas properties Less: accumulated depletion ) ) Oil and gas properties, net Other property Less: accumulated depreciation ) ) Other property, net Property and equipment, net $ $ We recorded depletion expense of $35.2 million and $67.2 million for the three months ended June 30, 2015 and 2014, respectively, and $69.8 million and $111.2 million for the six months ended June 30, 2014 and 2015, respectively.

Suspended Well Costs

Suspended Well Costs	6 Months Ended
	Jun. 30, 2015
Suspended Well Costs
Suspended Well Costs	6. Suspended Well Costs The following table reflects the Company’s capitalized exploratory well costs on completed wells as of and during the six months ended June 30, 2015. The table excludes $63.2 million in costs that were capitalized and subsequently expensed during the same period. Six Months Ended June 30, 2015 (In thousands) Beginning balance $ Additions to capitalized exploratory well costs pending the determination of proved reserves Reclassification due to determination of proved reserves — Capitalized exploratory well costs charged to expense ) Ending balance $ The following table provides an aging of capitalized exploratory well costs based on the date drilling was completed and the number of projects for which exploratory well costs have been capitalized for more than one year since the completion of drilling: June 30, 2015 December 31, 2014 (In thousands, except well counts) Exploratory well costs capitalized for a period of one year or less $ $ Exploratory well costs capitalized for a period of one to two years Exploratory well costs capitalized for a period of three to six years Ending balance $ $ Number of projects that have exploratory well costs that have been capitalized for a period greater than one year As of June 30, 2015, the projects with exploratory well costs capitalized for more than one year since the completion of drilling are related to the Mahogany, Teak (formerly Teak-1 and Teak-2) and Akasa discoveries in the West Cape Three Points (“WCTP”) Block and the Wawa discovery in the DT Block, which are all in Ghana. Mahogany— In March 2015, we submitted a declaration of commerciality to Ghana’s Ministry of Petroleum (formerly Ghana’s Ministry of Energy and Petroleum) and expect to submit a PoD concerning the Mahogany discovery later this year. Teak Discovery—We are currently in discussions with the government of Ghana regarding the declaration of commerciality for the Teak discovery. Upon resolution of such discussions and declaration of commerciality, a PoD would be prepared and submitted to Ghana’s Ministry of Petroleum, as required under the WCTP petroleum contract. The Teak-1 and Teak-2 discoveries are being treated as a single discovery area. Akasa Discovery—We are currently in discussions with the government of Ghana regarding additional technical studies and evaluation that we want to conduct before we are able to make a determination regarding commerciality of the discovery. If we determine the discovery to be commercial, a declaration of commerciality would be provided and a PoD would be prepared and submitted to Ghana’s Ministry of Petroleum, as required under the WCTP petroleum contract. Wawa Discovery—In April 2015, the Special Chamber of the International Tribunal of the Law of the Sea (“ITLOS”) issued an order in response to the provisional measures sought by the Government of Cote d’Ivoire in its pending maritime boundary dispute with the Government of Ghana. ITLOS rejected the request that Ghana suspend all ongoing exploration and development operations in the disputed area in which the Wawa Discovery is situated until ITLOS gives its decision on the maritime boundary dispute, which is expected in late 2017. ITLOS did order Ghana to suspend new drilling in the disputed area. We plan to discuss with the Government of Ghana the effects of the ITLOS order on the proposed Wawa appraisal activities so that we can more clearly define our future plans and corresponding timeline. In the meantime, we continue to reprocess seismic data and have acquired a high resolution seismic survey over the discovery area. Following additional evaluation and potential appraisal activities, a decision regarding commerciality of the Wawa discovery will be made by the DT Block partners. Within six months of a declaration of commerciality, a PoD would be prepared and submitted to Ghana’s Ministry of Petroleum, as required under the DT petroleum contract.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2015
Accrued Liabilities
Accrued Liabilities	7. Accrued Liabilities Accrued liabilities consisted of the following: June 30, December 31, 2015 2014 (In thousands) Accrued liabilities: Exploration, development and production $ $ General and administrative expenses Income taxes Interest Taxes other than income Other $ $

Debt

Debt	6 Months Ended
	Jun. 30, 2015
Debt
Debt	8. Debt Debt consists of the following : June 30, December 31, 2015 2014 (In thousands) Outstanding debt principal balances: Facility $ $ Senior Notes Total Unamortized issuance discounts ) ) Long-term debt $ $ Facility In March 2014, the Company amended and restated the Facility with a total commitment of $1.5 billion from a number of financial institutions, including the International Finance Corporation. The Facility supports our oil and gas exploration, appraisal and development programs and corporate activities. As part of the debt refinancing in March 2014, the repayment of borrowings under the existing facility attributable to financial institutions that did not participate in the amended Facility was accounted for as an extinguishment of debt, and existing unamortized debt issuance costs attributable to those participants were expensed. As a result, we recorded a $2.9 million loss on the extinguishment of debt. As of June 30, 2015, we have $41.0 million of net deferred financing costs related to the Facility, which will be amortized over the remaining term of the Facility, including certain costs related to the amendment. As of June 30, 2015, borrowings under the Facility totaled $300.0 million and the undrawn availability under the Facility was $1.2 billion. The Facility provides a revolving-credit and letter of credit facility. The availability period for the revolving-credit facility, as amended in March 2014 expires on March 31, 2018. However the Facility has a revolving-credit sublimit, which will be the lesser of $500.0 million and the total available facility at that time, that will be available for drawing until the date falling one month prior to the final maturity date. The letter of credit sublimit expires on the final maturity date. The available facility amount is subject to borrowing base constraints and, beginning on March 31, 2018, outstanding borrowings will be constrained by an amortization schedule. The Facility has a final maturity date of March 31, 2021. As of June 30, 2015, we had no letters of credit issued under the Facility. We were in compliance with the financial covenants contained in the Facility as of March 31, 2015 (the most recent assessment date). The Facility contains customary cross default provisions. Corporate Revolver In June 2015, we amended and restated the Corporate Revolver from a number of financial institutions, increasing the borrowing capacity to $400.0 million, extending the maturity date to November 2018 and lowering the commitment fees on the undrawn portion of the total commitments to 30% per annum of the respective margin. The Corporate Revolver is available for all subsidiaries for general corporate purposes and for oil and gas exploration; appraisal and development programs. As of June 30, 2015, we have $9.3 million of net deferred financing costs related to the Corporate Revolver, which will be amortized over the remaining term. Additionally, a negative covenant was added that restricts our ability to incur additional indebtedness that would not be permitted by the indenture governing our 7.875% senior secured notes due 2021. As of June 30, 2015, there were no borrowings outstanding under the Corporate Revolver and the undrawn availability under the Corporate Revolver was $400.0 million. We were in compliance with the financial covenants contained in the Corporate Revolver as of March 31, 2015 (the most recent assessment date). The Corporate Revolver contains customary cross default provisions. Revolving Letter of Credit Facility In July 2013, we entered into a revolving letter of credit facility agreement (“LC Facility”). The size of the LC Facility is $100.0 million, with additional commitments up to $50.0 million being available if the existing lender increases its commitment or if commitments from new financial institutions are added. As of June 30, 2015, there were eight outstanding letters of credit totaling $23.1 million under the LC Facility. The LC Facility contains customary cross default provisions. In July 2015, we reduced the size of our LC facility by $25.0 million to $75.0 million, with additional commitments up to $50.0 million being available if the existing lender increases its commitment or if commitments from new financial institutions are added. 7.875% Senior Secured Notes due 2021 In August 2014, the Company issued $300.0 million of Senior Notes and received net proceeds of approximately $292.5 million after deducting discounts, commissions and deferred financing costs. The Company used the net proceeds to repay a portion of the outstanding indebtedness under the Facility and for general corporate purposes. In April 2015, we issued an additional $225.0 million Senior Notes and received net proceeds of $206.8 million after deducting discounts, commissions and other expenses. The net proceeds were used to repay a portion of the outstanding indebtedness under the Facility and for general corporate purposes. The additional $225.0 million of Senior Notes have identical terms to the existing $300.0 million of Senior Notes, other than the date of issue, the initial price, the first interest payment date and the first date from which interest will accrue. The Senior Notes mature on August 1, 2021. Interest is payable semi-annually in arrears each February 1 and August 1 commencing on February 1, 2015 for the existing $300.0 million Senior Notes and August 1, 2015 for the additional $225.0 million Senior Notes. The Senior Notes are secured (subject to certain exceptions and permitted liens) by a first ranking fixed equitable charge on all shares held by us in our direct subsidiary, Kosmos Energy Holdings. The Senior Notes are currently guaranteed on a subordinated, unsecured basis by our existing restricted subsidiaries that guarantee the Facility and the Corporate Revolver, and, in certain circumstances, the Senior Notes will become guaranteed by certain of our other existing or future restricted subsidiaries. At June 30, 2015, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year 2015(2) 2016 2017 2018 2019 Thereafter (In thousands) Principal debt repayments(1) $ — $ — $ — $ — $ — $ (1) Includes the scheduled principal maturities for the $525.0 million aggregate principal amount of Senior Notes issued in August 2014 and April 2015 and the Facility. The scheduled maturities of debt related to the Facility are based on the level of borrowings and the estimated future available borrowing base as of June 30, 2015. Any increases or decreases in the level of borrowings or increases or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter. As of June 30, 2015, there were no borrowings under the Corporate Revolver. (2) Represents payments for the period July 1, 2015 through December 31, 2015. Interest and other financing costs, net Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest expense $ $ $ $ Amortization—deferred financing costs Deferred interest ) Loss on extinguishment of debt — Capitalized interest ) ) ) ) Interest income ) ) ) ) Other, net Interest and other financing costs, net $ $ $ $

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2015
Derivative Financial Instruments
Derivative Financial Instruments	9. Derivative Financial Instruments We use financial derivative contracts to manage exposures to commodity price and interest rate fluctuations. We do not hold or issue derivative financial instruments for trading purposes. We manage market and counterparty credit risk in accordance with our policies and guidelines. In accordance with these policies and guidelines, our management determines the appropriate timing and extent of derivative transactions. Oil Derivative Contracts The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average Dated Brent prices per Bbl for those contracts as of June 30, 2015. Weighted Average Dated Brent Price per Bbl Term Type of Contract MBbl Net Deferred Premium Payable Swap Put Floor Ceiling Call 2015: July — December Three-way collars $ $ — $ — $ $ $ July — December Swaps with calls — — — — 2016: January — December Purchased puts $ $ — $ — $ $ — $ — January — December Three-way collars — — — January — December Swaps with puts — — — — 2017: January — December Sold calls $ — $ — $ — $ — $ $ — January — December Swap with puts/calls — — Interest Rate Derivative Contracts The following table summarizes our open interest rate swaps, whereby we pay a fixed rate of interest and the counterparty pays a variable LIBOR-based rate, and our capped interest rate swaps whereby we pay a fixed rate of interest if LIBOR is below the cap, and pay the market rate less the spread between the cap (sold call) and the fixed rate of interest if LIBOR is above the cap as of June 30, 2015: Weighted Average Term Type of Contract Floating Rate Notional Swap Sold Call (In thousands) July 2015 — December 2015 Swap 6-month LIBOR $ % — January 2016 — June 2016 Swap 6-month LIBOR % — January 2016 — December 2018 Capped swap 1-month LIBOR % % The following tables disclose the Company’s derivative instruments as of June 30, 2015 and December 31, 2014 and gain/(loss) from derivatives during the three and six months ended June 30, 2015 and 2014, respectively: Estimated Fair Value Asset (Liability) June 30, December 31, Type of Contract Balance Sheet Location 2015 2014 (In thousands) Derivatives not designated as hedging instruments: Derivative assets: Commodity(1) Derivatives assets—current $ $ Commodity(2) Derivatives assets—long-term Interest rate Derivatives assets—long-term — Derivative liabilities: Interest rate Derivatives liabilities—current ) ) Commodity Derivatives liabilities—long-term ) — Interest rate Derivatives liabilities—long-term — ) Total derivatives not designated as hedging instruments $ $ (1) Includes net deferred premiums payable of $3.8 million and $1.8 million related to commodity derivative contracts as of June 30, 2015 and December 31, 2014, respectively. (2) Includes net deferred premiums payable of $8.1 million and $6.9 million related to commodity derivative contracts as of June 30, 2015 and December 31, 2014, respectively. Amount of Gain/(Loss) Amount of Gain/(Loss) Three Months Ended June 30, Six Months Ended June 30, Type of Contract Location of Gain/(Loss) 2015 2014 2015 2014 (In thousands) Derivatives in cash flow hedging relationships: Interest rate(1) Interest expense $ $ $ $ Total derivatives in cash flow hedging relationships $ $ $ $ Derivatives not designated as hedging instruments: Commodity(2) Oil and gas revenue $ ) $ ) $ $ ) Commodity Derivatives, net ) ) ) ) Interest rate Interest expense ) ) Total derivatives not designated as hedging instruments $ ) $ ) $ ) $ ) (1) Amounts were reclassified from accumulated other comprehensive income or loss (“AOCI”) into earnings upon settlement. (2) Amounts represent the mark-to-market portion of our provisional oil sales contracts. Offsetting of Derivative Assets and Derivative Liabilities Our derivative instruments which are subject to master netting arrangements with our counterparties only have the right of offset when there is an event of default. As of June 30, 2015 and December 31, 2014, there was not an event of default and, therefore, the associated gross asset or gross liability amounts related to these arrangements are presented on the consolidated balance sheets. Additionally, if an event of default occurred the offsetting amounts would be immaterial as of June 30, 2015 and December 31, 2014.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Fair Value Measurements	10. Fair Value Measurements In accordance with ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. We prioritize the inputs used in measuring fair value into the following fair value hierarchy: · Level 1—quoted prices for identical assets or liabilities in active markets. · Level 2—quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data by correlation or other means. · Level 3—unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, for each fair value hierarchy level: Fair Value Measurements Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) June 30, 2015 Assets: Commodity derivatives $ — $ $ — $ Interest rate derivatives — — Liabilities: Commodity derivatives — ) — ) Interest rate derivatives — ) — ) Total $ — $ $ — $ December 31, 2014 Assets: Commodity derivatives $ — $ $ — $ Liabilities: Interest rate derivatives — ) — ) Total $ — $ $ — $ The book values of cash and cash equivalents and restricted cash approximate fair value based on Level 1 inputs. Joint interest billings, oil sales and other receivables, and accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. Our long-term receivables, if any, after any allowances for doubtful accounts approximate fair value. The estimates of fair value of these items are based on Level 2 inputs. Commodity Derivatives Our commodity derivatives represent crude oil three-way collars, put options, call options and swaps for notional barrels of oil at fixed Dated Brent oil prices. The values attributable to the our oil derivatives are based on (i) the contracted notional volumes, (ii) independent active futures price quotes for Dated Brent, (iii) a credit-adjusted yield curve applicable to each counterparty by reference to the credit default swap (“CDS”) market and (iv) an independently sourced estimate of volatility for Dated Brent. The volatility estimate was provided by certain independent brokers who are active in buying and selling oil options and was corroborated by market-quoted volatility factors. The deferred premium is included in the fair market value of the commodity derivatives. See Note 9—Derivative Financial Instruments for additional information regarding the Company’s derivative instruments. Provisional Oil Sales The value attributable to the provisional oil sales derivative is based on (i) the sales volumes and (ii) the difference in the independent active futures price quotes for Dated Brent over the term of the pricing period designated in the sales contract and the spot price on the lifting date. Interest Rate Derivatives We have interest rate swaps, whereby the Company pays a fixed rate of interest and the counterparty pays a variable LIBOR-based rate. We also have capped interest rate swaps, whereby the Company pays a fixed rate of interest if LIBOR is below the cap, and pays the market rate less the spread between the cap and the fixed rate of interest if LIBOR is above the cap. The values attributable to the Company’s interest rate derivative contracts are based on (i) the contracted notional amounts, (ii) LIBOR yield curves provided by independent third parties and corroborated with forward active market-quoted LIBOR yield curves and (iii) a credit-adjusted yield curve as applicable to each counterparty by reference to the CDS market. Debt The following table presents the carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets: June 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt $ $ $ $ The carrying value of the Facility approximates fair value since it is subject to short-term floating interest rates that approximate the rates available to us for those periods. The fair value of our Senior Notes is based on quoted market prices, which results in a Level 1 fair value measurement.

Equity-based Compensation

Equity-based Compensation	6 Months Ended
	Jun. 30, 2015
Equity-based Compensation
Equity-based Compensation	11. Equity-based Compensation Restricted Stock Awards and Restricted Stock Units We record compensation expense equal to the fair value of share-based payments over the vesting periods of the Long-Term Incentive Plan (“LTIP”) awards. We recorded compensation expense from awards granted under our LTIP of $23.3 million and $18.0 million during the three months ended June 30, 2015 and 2014, respectively, and $48.5 million and $35.9 million for the six months ended June 30, 2015 and 2014, respectively. The total tax benefit for the three months ended June 30, 2015 and 2014 was $8.2 million and $8.0 million, respectively, and $17.0 million and $14.1 million for the six months ended June 30, 2015 and 2014, respectively. Additionally, we expensed a tax shortfall related to equity-based compensation of $18.3 million and $6.4 million for the three months ended June 30, 2015 and 2014 respectively, and $18.4 million and $6.5 million for the six months ended June 30, 2015 and 2014, respectively. The fair value of awards vested during the three months ended June 30, 2015 and 2014 was approximately $50.0 million and $31.9 million, respectively, and $50.8 million and $33.3 million for the six months ended June 30, 2015 and 2014, respectively. The Company granted both restricted stock awards and restricted stock units with service vesting criteria and granted both restricted stock awards and restricted stock units with a combination of market and service criteria under the LTIP. Our outstanding awards vest over a three or four year period. Restricted stock awards are issued and included in the number of outstanding shares upon the date of grant and, if such awards are forfeited, they become treasury stock. Upon vesting, restricted stock units become issued and outstanding stock. The following table reflects the outstanding restricted stock awards as of June 30, 2015: Weighted- Market / Service Weighted- Service Vesting Restricted Stock Average Grant-Date Vesting Restricted Stock Average Grant-Date Awards Fair Value Awards Fair Value (In thousands) (In thousands) Outstanding at December 31, 2014 $ $ Granted — — Forfeited ) ) Vested ) ) Outstanding at June 30, 2015 The following table reflects the outstanding restricted stock units as of June 30, 2015: Weighted- Market / Service Weighted- Service Vesting Restricted Stock Average Grant-Date Vesting Restricted Stock Average Grant-Date Units Fair Value Units Fair Value (In thousands) (In thousands) Outstanding at December 31, 2014 $ $ Granted Forfeited ) ) Vested ) — — Outstanding at June 30, 2015 As of June 30, 2015, total equity-based compensation to be recognized on unvested restricted stock awards and restricted stock units is $73.9 million over a weighted average period of 2.03 years. In January 2015, the board of directors approved an amendment to the May 16, 2011 LTIP to add 15.0 million shares to the plan, which was approved at the Annual General Meeting in June 2015. At June 30, 2015, the Company had approximately 11.8 million shares that remain available for issuance under the LTIP. For restricted stock awards and restricted stock units with a combination of market and service vesting criteria, the number of common shares to be issued is determined by comparing the Company’s total shareholder return with the total shareholder return of a predetermined group of peer companies over the performance period and can vest in up to 100% of the awards granted for restricted stock awards and up to 200% of the awards granted for restricted stock units. The grant date fair value of these awards ranged from $6.70 to $13.57 per award for restricted stock awards and $12.96 to $15.81 per award for restricted stock units. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using a combination of our historical volatility and implied volatility and the historical and implied volatilities of our peer companies and ranged from 30% to 76%. The risk-free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant and ranged from 0.5% to 1.1% for restricted stock awards and 0.5% to 1.2% for restricted stock units.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	12. Income Taxes Income tax expense was $25.4 million and $80.8 million for the three months ended June 30, 2015 and 2014, respectively, and $51.1 million and $131.6 million for the six months ended June 30, 2015 and 2014, respectively. The income tax provision consists of United States and Ghanaian income and Texas margin taxes. The components of income (loss) before income taxes were as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Bermuda $ ) $ ) $ ) $ ) United States Foreign—other ) ) Income (loss) before income taxes $ ) $ $ ) $ Our effective tax rate for the three months ended June 30, 2015 and 2014 is (51%) and 59%, respectively. For the six months ended June 30, 2015 and 2014, our effective tax rate is (50%) and 50%, respectively. The effective tax rate for the United States is approximately 511% and 193% for the three months ended June 30, 2015 and 2014, respectively, and 256% and 128% for the six months ended June 30, 2015 and 2014, respectively. The effective tax rate in the United States is impacted by the effect of tax shortfalls related to equity-based compensation. The effective tax rate for Ghana is approximately 43% and 36% for the three months ended June 30, 2015 and 2014, respectively and 36% for the six months ended June 30, 2015 and 2014, respectively. Our other foreign jurisdictions have a 0% effective tax rate because they reside in countries with a 0% statutory rate, or we have experienced losses in those countries and have a full valuation allowance reserved against the corresponding net deferred tax assets. A subsidiary of the Company files a U.S. federal income tax return and a Texas margin tax return. In addition to the United States, the Company files income tax returns in the countries in which we operate. The Company is open to U.S. federal income tax examinations for tax years 2012 through 2014 and to Texas margin tax examinations for the tax years 2010 through 2014. In addition, the Company is open to income tax examinations for years 2011 through 2014 in its significant other foreign jurisdictions. As of June 30, 2015, the Company had no material uncertain tax positions. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2015
Net Income (Loss) Per Share
Net Income (Loss) Per Share	13. Net Income (Loss) Per Share The following table is a reconciliation between net income and the amounts used to compute basic and diluted net income per share and the weighted average shares outstanding used to compute basic and diluted net income (loss) per share: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator: Net income (loss) $ ) $ $ ) $ Less: Basic income allocable to participating securities(1) — ) — ) Basic net income (loss) allocable to common shareholders ) ) Diluted adjustments to income allocable to participating securities(1) — — Diluted net income (loss) allocable to common shareholders $ ) $ $ ) $ Denominator: Weighted average number of shares used to compute net income (loss) per share: Basic Restricted stock awards and units(1)(2) — — Diluted Net income (loss) per share: Basic $ ) $ $ ) $ Diluted $ ) $ $ ) $ (1) Our service vesting restricted stock awards represent participating securities because they participate in non-forfeitable dividends with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Our restricted stock awards with market and service vesting criteria and all restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income per common share calculation. Our service vesting restricted stock awards do not participate in undistributed net losses and, therefore, are excluded from the basic net income per common share calculation in periods we are in a net loss position. (2) We excluded outstanding restricted stock awards and units of 11.4 million and 4.4 million for the three months and six months ended June 30, 2015 and 2014, respectively, from the computations of diluted net income per share because the effect would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies From time to time, we are involved in litigation, regulatory examinations and administrative proceedings primarily arising in the ordinary course of our business in jurisdictions in which we do business. Although the outcome of these matters cannot be predicted with certainty, management believes none of these matters, either individually or in the aggregate, would have a material effect upon the Company’s financial position; however, an unfavorable outcome could have a material adverse effect on our results from operations for a specific interim period or year. In June 2013, we signed a long-term rig agreement with a subsidiary of Atwood Oceanics, Inc. for the new build 6 th generation drillship “Atwood Achiever.” We took delivery of the Atwood Achiever in September 2014. The rig agreement covers an initial period of three years at a day rate of approximately $0.6 million, with an option to extend the agreement for an additional three-year term. We have entered into a rig sharing agreement, whereby one rig slot (estimated to be 51 days remaining in 2015) was assigned to a third-party. The estimated future minimum commitments as of June 30, 2015, are: Payments Due By Year(1) Total 2015(2) 2016 2017 2018 2019 Thereafter (In thousands) Operating leases(3) $ $ $ $ $ $ $ — Atwood Achiever drilling rig contract(4) — — — (1) Does not include purchase commitments for jointly owned fields and facilities where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts. (2) Represents payments for the period from July 1, 2015 through December 31, 2015. (3) Primarily relates to corporate office and foreign office leases. (4) Commitments calculated using a day rate of $0.6 million, excluding applicable taxes. The rig commitments reflect the execution of a rig sharing agreement, whereby one rig slot (estimated to 51 days remaining in 2015) was assigned to a third-party.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies
General	General The interim-period financial information presented in the consolidated financial statements included in this report is unaudited and, in the opinion of management, includes all adjustments of a normal recurring nature necessary to present fairly the consolidated financial position as of June 30, 2015, the changes in the consolidated statements of shareholders’ equity for the six months ended June 30, 2015, the consolidated results of operations for the three months and six ended June 30, 2015 and 2014, and consolidated cash flows for the six months ended June 30, 2015 and 2014. The results of the interim periods shown in this report are not necessarily indicative of the final results to be expected for the full year. The consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by Generally Accepted Accounting Principles in the United States of America (“GAAP”) have been condensed or omitted from these interim consolidated financial statements. These consolidated financial statements and the accompanying notes should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2014, included in our annual report on Form 10-K.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net income (loss), current assets, total assets, current liabilities, total liabilities or shareholders’ equity.
Restricted Cash	Restricted Cash In accordance with our commercial debt facility (the “Facility”), we are required to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period on the 7.875% Senior Secured Notes due 2021 (“Senior Notes”) plus the Corporate Revolver or the Facility, whichever is greater. As of June 30, 2015 and December 31, 2014, we had $24.3 million and $15.9 million, respectively, in current restricted cash to meet this requirement. In addition, in accordance with certain of our petroleum contracts, we have posted letters of credit related to performance guarantees for our minimum work obligations. These letters of credit are cash collateralized in accounts held by us and as such are classified as restricted cash. Upon completion of the minimum work obligations and/or entering into the next phase of the petroleum contract, the requirement to post the existing letters of credit will be satisfied and the cash collateral will be released. However, additional letters of credit may be required should we choose to move into the next phase of certain of our petroleum contracts. As of June 30, 2015 and December 31, 2014, we had $7.2 million and zero, respectively, of short-term restricted cash and $10.1 million and $16.1 million, respectively, of long-term restricted cash used to collateralize performance guarantees related to our petroleum contracts.
Inventories	Inventories Inventories consisted of $68.1 million and $55.3 million of materials and supplies and $2.0 million and $0.1 million of hydrocarbons as of June 30, 2015 and December 31, 2014, respectively. The Company’s materials and supplies inventory primarily consists of casing and wellheads and is stated at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory costs include expenditures and other charges incurred in bringing the inventory to its existing condition. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory costs.
Recent Accounting Standards	Recent Accounting Standards In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 modifies existing guidance related to the presentation of debt issuance costs which are currently capitalized and presented on the balance sheet as an asset. ASU 2015-03 requires these costs to be presented as a direct deduction from the face amount of the related debt. This guidance is effective for public companies for fiscal years beginning after December 15, 2015 and will be applied retrospectively for all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “ Consolidation (Topic 810) - Amendments to the Consolidation Analysis.” ASU 2015-02 modifies existing consolidation guidance related to limited partnerships and similar legal entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for public companies for fiscal years beginning after December 15, 2015 with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property and Equipment
Schedule of property and equipment	June 30, December 31, 2015 2014 (In thousands) Oil and gas properties: Proved properties $ $ Unproved properties Support equipment and facilities Total oil and gas properties Less: accumulated depletion ) ) Oil and gas properties, net Other property Less: accumulated depreciation ) ) Other property, net Property and equipment, net $ $

Suspended Well Costs (Tables)

Suspended Well Costs (Tables)	6 Months Ended
	Jun. 30, 2015
Suspended Well Costs
Schedule of capitalized exploratory well costs	Six Months Ended June 30, 2015 (In thousands) Beginning balance $ Additions to capitalized exploratory well costs pending the determination of proved reserves Reclassification due to determination of proved reserves — Capitalized exploratory well costs charged to expense ) Ending balance $
Schedule of aging of capitalized exploratory well costs and number of projects for which exploratory well costs were capitalized for more than one year	June 30, 2015 December 31, 2014 (In thousands, except well counts) Exploratory well costs capitalized for a period of one year or less $ $ Exploratory well costs capitalized for a period of one to two years Exploratory well costs capitalized for a period of three to six years Ending balance $ $ Number of projects that have exploratory well costs that have been capitalized for a period greater than one year

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Accrued Liabilities
Accrued Liabilities	June 30, December 31, 2015 2014 (In thousands) Accrued liabilities: Exploration, development and production $ $ General and administrative expenses Income taxes Interest Taxes other than income Other $ $

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt
Schedule of debt	June 30, December 31, 2015 2014 (In thousands) Outstanding debt principal balances: Facility $ $ Senior Notes Total Unamortized issuance discounts ) ) Long-term debt $ $
Schedule of estimated repayments of debt	At June 30, 2015, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year 2015(2) 2016 2017 2018 2019 Thereafter (In thousands) Principal debt repayments(1) $ — $ — $ — $ — $ — $ (1) Includes the scheduled principal maturities for the $525.0 million aggregate principal amount of Senior Notes issued in August 2014 and April 2015 and the Facility. The scheduled maturities of debt related to the Facility are based on the level of borrowings and the estimated future available borrowing base as of June 30, 2015. Any increases or decreases in the level of borrowings or increases or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter. As of June 30, 2015, there were no borrowings under the Corporate Revolver. (2) Represents payments for the period July 1, 2015 through December 31, 2015.
Schedule of interest and other financing costs, net	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest expense $ $ $ $ Amortization—deferred financing costs Deferred interest ) Loss on extinguishment of debt — Capitalized interest ) ) ) ) Interest income ) ) ) ) Other, net Interest and other financing costs, net $ $ $ $

Derivative Financial Instrume28

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Financial Instruments
Schedule of oil derivative contracts	The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average Dated Brent prices per Bbl for those contracts as of June 30, 2015. Weighted Average Dated Brent Price per Bbl Term Type of Contract MBbl Net Deferred Premium Payable Swap Put Floor Ceiling Call 2015: July — December Three-way collars $ $ — $ — $ $ $ July — December Swaps with calls — — — — 2016: January — December Purchased puts $ $ — $ — $ $ — $ — January — December Three-way collars — — — January — December Swaps with puts — — — — 2017: January — December Sold calls $ — $ — $ — $ — $ $ — January — December Swap with puts/calls — —
Schedule of interest rate derivative contracts	The following table summarizes our open interest rate swaps, whereby we pay a fixed rate of interest and the counterparty pays a variable LIBOR-based rate, and our capped interest rate swaps whereby we pay a fixed rate of interest if LIBOR is below the cap, and pay the market rate less the spread between the cap (sold call) and the fixed rate of interest if LIBOR is above the cap as of June 30, 2015: Weighted Average Term Type of Contract Floating Rate Notional Swap Sold Call (In thousands) July 2015 — December 2015 Swap 6-month LIBOR $ % — January 2016 — June 2016 Swap 6-month LIBOR % — January 2016 — December 2018 Capped swap 1-month LIBOR % %
Schedule of derivative instruments by balance sheet location	Estimated Fair Value Asset (Liability) June 30, December 31, Type of Contract Balance Sheet Location 2015 2014 (In thousands) Derivatives not designated as hedging instruments: Derivative assets: Commodity(1) Derivatives assets—current $ $ Commodity(2) Derivatives assets—long-term Interest rate Derivatives assets—long-term — Derivative liabilities: Interest rate Derivatives liabilities—current ) ) Commodity Derivatives liabilities—long-term ) — Interest rate Derivatives liabilities—long-term — ) Total derivatives not designated as hedging instruments $ $ (1) Includes net deferred premiums payable of $3.8 million and $1.8 million related to commodity derivative contracts as of June 30, 2015 and December 31, 2014, respectively. (2) Includes net deferred premiums payable of $8.1 million and $6.9 million related to commodity derivative contracts as of June 30, 2015 and December 31, 2014, respectively.
Schedule of derivative instruments by location of gain/(loss)	Amount of Gain/(Loss) Amount of Gain/(Loss) Three Months Ended June 30, Six Months Ended June 30, Type of Contract Location of Gain/(Loss) 2015 2014 2015 2014 (In thousands) Derivatives in cash flow hedging relationships: Interest rate(1) Interest expense $ $ $ $ Total derivatives in cash flow hedging relationships $ $ $ $ Derivatives not designated as hedging instruments: Commodity(2) Oil and gas revenue $ ) $ ) $ $ ) Commodity Derivatives, net ) ) ) ) Interest rate Interest expense ) ) Total derivatives not designated as hedging instruments $ ) $ ) $ ) $ ) (1) Amounts were reclassified from accumulated other comprehensive income or loss (“AOCI”) into earnings upon settlement. (2) Amounts represent the mark-to-market portion of our provisional oil sales contracts.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Schedule of Company's assets and liabilities that are measured at fair value on a recurring basis	Fair Value Measurements Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) June 30, 2015 Assets: Commodity derivatives $ — $ $ — $ Interest rate derivatives — — Liabilities: Commodity derivatives — ) — ) Interest rate derivatives — ) — ) Total $ — $ $ — $ December 31, 2014 Assets: Commodity derivatives $ — $ $ — $ Liabilities: Interest rate derivatives — ) — ) Total $ — $ $ — $
Schedule of carrying values and fair values of financial instruments that are not carried at fair value	June 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt $ $ $ $

Equity-based Compensation (Tabl

Equity-based Compensation (Tables) - LTIP	6 Months Ended
	Jun. 30, 2015
Restricted stock awards
Equity-based Compensation
Schedule of plan activity	Weighted- Market / Service Weighted- Service Vesting Restricted Stock Average Grant-Date Vesting Restricted Stock Average Grant-Date Awards Fair Value Awards Fair Value (In thousands) (In thousands) Outstanding at December 31, 2014 $ $ Granted — — Forfeited ) ) Vested ) ) Outstanding at June 30, 2015
Restricted stock units
Equity-based Compensation
Schedule of plan activity	Weighted- Market / Service Weighted- Service Vesting Restricted Stock Average Grant-Date Vesting Restricted Stock Average Grant-Date Units Fair Value Units Fair Value (In thousands) (In thousands) Outstanding at December 31, 2014 $ $ Granted Forfeited ) ) Vested ) — — Outstanding at June 30, 2015

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2015
Income Taxes
Schedule of components of income (loss) before income taxes	Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Bermuda $ ) $ ) $ ) $ ) United States Foreign—other ) ) Income (loss) before income taxes $ ) $ $ ) $

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Net Income (Loss) Per Share
Schedule of reconciliation between net income and the amounts used to compute basic and diluted net income per share and the weighted average shares outstanding used to compute basic and diluted net income per share	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator: Net income (loss) $ ) $ $ ) $ Less: Basic income allocable to participating securities(1) — ) — ) Basic net income (loss) allocable to common shareholders ) ) Diluted adjustments to income allocable to participating securities(1) — — Diluted net income (loss) allocable to common shareholders $ ) $ $ ) $ Denominator: Weighted average number of shares used to compute net income (loss) per share: Basic Restricted stock awards and units(1)(2) — — Diluted Net income (loss) per share: Basic $ ) $ $ ) $ Diluted $ ) $ $ ) $ (1) Our service vesting restricted stock awards represent participating securities because they participate in non-forfeitable dividends with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Our restricted stock awards with market and service vesting criteria and all restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income per common share calculation. Our service vesting restricted stock awards do not participate in undistributed net losses and, therefore, are excluded from the basic net income per common share calculation in periods we are in a net loss position. (2) We excluded outstanding restricted stock awards and units of 11.4 million and 4.4 million for the three months and six months ended June 30, 2015 and 2014, respectively, from the computations of diluted net income per share because the effect would have been anti-dilutive.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Schedule of estimated future minimum commitments	The estimated future minimum commitments as of June 30, 2015, are: Payments Due By Year(1) Total 2015(2) 2016 2017 2018 2019 Thereafter (In thousands) Operating leases(3) $ $ $ $ $ $ $ — Atwood Achiever drilling rig contract(4) — — — (1) Does not include purchase commitments for jointly owned fields and facilities where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts. (2) Represents payments for the period from July 1, 2015 through December 31, 2015. (3) Primarily relates to corporate office and foreign office leases. (4) Commitments calculated using a day rate of $0.6 million, excluding applicable taxes. The rig commitments reflect the execution of a rig sharing agreement, whereby one rig slot (estimated to 51 days remaining in 2015) was assigned to a third-party.

Organization (Details)

Organization (Details)	6 Months Ended
	Jun. 30, 2015segment
Organization
Number of reportable segments	1

Accounting Policies (Details)

Accounting Policies (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Restricted Cash
Current restricted cash	$ 31,500	$ 15,926
Long-term restricted cash	10,125	16,125
Inventories
Materials and supplies inventory	68,100	55,300
Hydrocarbons inventory	$ 2,000	100
Restricted Cash | Facility interest or the Senior Notes plus the Corporate Revolver interest
Restricted Cash
Restricted cash period required as per commercial debt facility to meet interest and commitment fee payments	6 months
Current restricted cash	$ 24,300	15,900
Restricted Cash | Petroleum agreements - performance guarantees
Restricted Cash
Current restricted cash	7,200	0
Long-term restricted cash	$ 10,100	$ 16,100
Senior Notes | 7.875% senior notes due 2021
Restricted Cash
Interest rate	7.875%

Acquisitions and Divestitures (

Acquisitions and Divestitures (Details) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Mar. 31, 2015USD ($)item	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Acquisitions and Divestitures
Proceeds on sale of assets			$ 28,603	$ 58,315
Gain on sale of assets		$ 1,900	$ 24,651	$ 23,769
Farm-in agreement | Camarao, Ameijoa, Mexilhao and Ostra blocks
Acquisitions and Divestitures
Participating interests (as a percent)	31.00%
Farm-out agreements | Block C8
Acquisitions and Divestitures
Participating interests (as a percent)	60.00%
Farm-out agreements | Block C12
Acquisitions and Divestitures
Participating interests (as a percent)	60.00%
Farm-out agreements | Block C13
Acquisitions and Divestitures
Participating interests (as a percent)	60.00%
Chevron | Farm-out agreements | Block C8, Block 12 and Block 13
Acquisitions and Divestitures
Participation interest acquired (as a percent)	30.00%
Number of exploration wells for which a third party will pay a disproportionate amount | item	1
Proceeds on sale of assets	$ 28,700
Gain on sale of assets	$ 24,700
Chevron | Farm-out agreements | Block C8
Acquisitions and Divestitures
Participating interests (as a percent)	30.00%
Chevron | Farm-out agreements | Block C12
Acquisitions and Divestitures
Participating interests (as a percent)	30.00%
Chevron | Farm-out agreements | Block C13
Acquisitions and Divestitures
Participating interests (as a percent)	30.00%
SMHPM | Farm-out agreements | Block C8
Acquisitions and Divestitures
Participating interests (as a percent)	10.00%
SMHPM | Farm-out agreements | Block C12
Acquisitions and Divestitures
Participating interests (as a percent)	10.00%
SMHPM | Farm-out agreements | Block C13
Acquisitions and Divestitures
Participating interests (as a percent)	10.00%

Joint Interest Billings (Detail

Joint Interest Billings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Joint interest billings
Long-term receivables - joint interest billings	$ 14,174	$ 24,922
TEN Discoveries | GNPC
Joint interest billings
Long-term receivables - joint interest billings	$ 14,200	$ 24,900
TEN Discoveries | GNPC
Joint interest billings
GNPC's paying interest (as a percent)	5.00%

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Oil and gas properties:
Proved properties	$ 1,223,514		$ 1,223,514		$ 1,156,868
Unproved properties	441,368		441,368		363,717
Support equipment and facilities	1,067,690		1,067,690		968,722
Total oil and gas properties	2,732,572		2,732,572		2,489,307
Less: accumulated depletion	(781,699)		(781,699)		(716,121)
Oil and gas properties, net	1,950,873		1,950,873		1,773,186
Other property	34,146		34,146		33,718
Less: accumulated depreciation	(24,338)		(24,338)		(22,058)
Other property, net	9,808		9,808		11,660
Property and equipment, net	1,960,681		1,960,681		$ 1,784,846
Depletion expense	$ 35,200	$ 67,200	$ 69,800	$ 111,200

Suspended Well Costs (Details)

Suspended Well Costs (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)project	Dec. 31, 2014USD ($)project
Suspended Well Costs
Capitalized exploratory well costs subsequently expensed in the same period	$ 63,200
Reconciliation of capitalized exploratory well costs on completed wells
Beginning balance	226,714
Additions to capitalized exploratory well costs pending the determination of proved reserves	149,450
Capitalized exploratory well costs charged to expense	(23,375)
Balance at the end of the period	352,789
Aging of capitalized exploratory well costs and number of projects for which exploratory well costs were capitalized for more than one year
Exploratory well costs capitalized for a period of one year or less		$ 138,882	$ 16,814
Exploratory well costs capitalized for a period one to two years		33,843	40,865
Exploratory well costs capitalized for a period three to six years		180,064	169,035
Ending balance	$ 226,714	$ 352,789	$ 226,714
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | project		4	5
Wawa Discovery | Maximum
Projects with exploratory well costs capitalized for more than one year
Submission of PoD to Ghana's Ministry of Energy, period	6 months

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accrued liabilities:
Exploration, development and production	$ 60,514	$ 139,393
General and administrative expenses	15,112	21,926
Income taxes	12,542	9,233
Interest	17,456	10,271
Taxes other than income	4,175	20,315
Other	207	829
Accrued liabilities	$ 110,006	$ 201,967

Debt (Details)

Debt (Details) $ in Thousands	1 Months Ended					3 Months Ended	6 Months Ended
	Jul. 31, 2015USD ($)	Jun. 30, 2015USD ($)item	Apr. 30, 2015USD ($)	Aug. 31, 2014USD ($)	Mar. 31, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Jul. 31, 2013USD ($)
Debt
Outstanding debt principal		$ 825,000				$ 825,000	$ 825,000		$ 800,000
Unamortized issuance discounts		(26,457)				(26,457)	(26,457)		(5,731)
Long-term debt		798,543				798,543	798,543		794,269
Loss on extinguishment of debt						165	165	$ 2,898
Net deferred financing costs		52,300				52,300	52,300		48,753
Scheduled maturities of debt during the five year period and thereafter
Thereafter		825,000				825,000	825,000
Facility
Debt
Outstanding debt principal		300,000				300,000	300,000		500,000
Total commitment					$ 1,500,000
Loss on extinguishment of debt					$ 2,900
Net deferred financing costs		41,000				41,000	41,000
Amount outstanding		300,000				300,000	300,000
Undrawn availability		1,200,000				1,200,000	1,200,000
Revolving-credit sublimit amount after March 31, 2018		500,000				500,000	$ 500,000
Availability period of revolving-credit sublimit							1 month
Amount outstanding under letters of credit		0				0	$ 0
Corporate Revolver
Debt
Total commitment		$ 400,000				400,000	400,000
Percentage of the margin used to calculate commitment fees		30.00%
Net deferred financing costs		$ 9,300				9,300	9,300
Amount outstanding		0				0	0
Undrawn availability		400,000				400,000	400,000
Revolving Letter of Credit Facility
Debt
Total commitment										$ 100,000
Amount outstanding		$ 23,100				$ 23,100	$ 23,100
Number of letters of credit | item		8				8	8
Revolving Letter of Credit Facility | Subsequent event
Debt
Total commitment	$ 75,000
Reduction in borrowing capacity	25,000
Additional commitments	$ 50,000
Revolving Letter of Credit Facility | Maximum
Debt
Additional commitments										$ 50,000
Senior Notes
Debt
Outstanding debt principal		$ 525,000				$ 525,000	$ 525,000		$ 300,000
Senior Notes | 7.875% senior notes due 2021
Debt
Interest rate		7.875%				7.875%	7.875%
Senior notes offering face amount			$ 225,000	$ 300,000
Proceeds, net of offering discounts and deferred financing costs			$ 206,800	$ 292,500

Debt (Details 2)

Debt (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Debt
Interest Expense	$ 19,260	$ 10,998	$ 34,657	$ 21,994
Amortization-deferred financing costs	2,609	2,559	5,219	5,345
Deferred interest	137	265	1,291	(3,846)
Loss on extinguishment of debt	165		165	2,898
Capitalized interest	(13,154)	(4,302)	(21,994)	(8,103)
Interest income	(172)	(196)	(340)	(254)
Other, net	153	674	751	1,101
Interest and other financing costs, net	$ 8,998	$ 9,998	$ 19,749	$ 19,135

Derivative Financial Instrume43

Derivative Financial Instruments (Details) - Jun. 30, 2015 - Price risk derivatives	$ / bblMBbls
Three-way Collars | Term July 2015 To December 2015
Derivative Financial Instruments
Volumes (in MBbl) | MBbls	2,129
Weighted average deferred premium payable per Bbl	0.46
Weighted average floor price per Bbl	87.43
Weighted average ceiling price per Bbl	110
Weighted average purchased call price per Bbl	133.82
Purchased puts | Term January 2016 to December 2016
Derivative Financial Instruments
Volumes (in MBbl) | MBbls	2,000
Weighted average deferred premium payable per Bbl	3.41
Weighted average floor price per Bbl	85
Swaps with calls | Term July 2015 To December 2015
Derivative Financial Instruments
Volumes (in MBbl) | MBbls	1,006
Weighted average swap price per Bbl	93.59
Weighted average purchased call price per Bbl	115
Three-way collars | Term January 2016 to December 2016
Derivative Financial Instruments
Volumes (in MBbl) | MBbls	2,000
Weighted average floor price per Bbl	85
Weighted average ceiling price per Bbl	110
Weighted average purchased call price per Bbl	135
Swaps with puts | Term January 2016 to December 2016
Derivative Financial Instruments
Volumes (in MBbl) | MBbls	2,000
Weighted average swap price per Bbl	75
Weighted average sold put price per Bbl	60
Sold calls | Term January 2017 to December 2017
Derivative Financial Instruments
Volumes (in MBbl) | MBbls	2,000
Weighted average ceiling price per Bbl	85
Swaps, sold puts and purchased call | Term January 2017 to December 2017
Derivative Financial Instruments
Volumes (in MBbl) | MBbls	2,000
Weighted average deferred premium payable per Bbl	2.13
Weighted average swap price per Bbl	72.50
Weighted average sold put price per Bbl	55
Weighted average purchased call price per Bbl	90

Derivative Financial Instrume44

Derivative Financial Instruments (Details 2) - Jun. 30, 2015 - Interest Rate Swap - USD ($) $ in Thousands	Total
6-month LIBOR | Term July 2015 To December 2015
Derivative Financial Instruments
Weighted Average Notional Amount	$ 25,000
Weighted Average Fixed Rate (as a percent)	2.27%
6-month LIBOR | Term January 2016 to June 2016
Derivative Financial Instruments
Weighted Average Notional Amount	$ 12,500
Weighted Average Fixed Rate (as a percent)	2.27%
1-month LIBOR | Interest Rate Cap | Term January 2016 to December 2018
Derivative Financial Instruments
Weighted Average Notional Amount	$ 200,000
Weighted Average Fixed Rate (as a percent)	1.23%
Interest rate cap	3.00%

Derivative Financial Instrume45

Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivative instruments, Balance Sheet Location
Derivatives assets - current	$ 110,674	$ 163,275
Derivatives assets-long-term	44,251	89,210
Derivatives liabilities - current	(924)	(721)
Derivatives liabilities - long-term	(7,574)	(68)
Not designated as hedging instruments
Derivative instruments, Balance Sheet Location
Total	146,427	251,696
Commodity derivatives | Not designated as hedging instruments
Derivative instruments, Balance Sheet Location
Derivatives assets - current	110,674	163,275
Derivatives assets-long-term	43,335	89,210
Derivatives liabilities - long-term	(7,574)
Net deferred premiums payable related to commodity derivative contracts	3,800	1,800
Net deferred premiums payable related to commodity derivative contracts	8,100	6,900
Interest rate contracts | Not designated as hedging instruments
Derivative instruments, Balance Sheet Location
Derivatives assets-long-term	916
Derivatives liabilities - current	$ (924)	(721)
Derivatives liabilities - long-term		$ (68)

Derivative Financial Instrume46

Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative instruments, Location of Gain/(Loss)
Amount of Gain/(Loss), derivatives not designated as hedging instruments	$ (46,780)	$ (23,516)	$ (11,994)	$ (23,112)
Commodity derivatives | Oil and gas revenue
Derivative instruments, Location of Gain/(Loss)
Amount of Gain/(Loss), derivatives not designated as hedging instruments	(2,336)	(1,841)	297	(3,367)
Commodity derivatives | Derivatives, net
Derivative instruments, Location of Gain/(Loss)
Amount of Gain/(Loss), derivatives not designated as hedging instruments	(44,877)	(21,566)	(12,550)	(19,538)
Interest rate contracts | Interest expense
Derivative instruments, Location of Gain/(Loss)
Amount of Gain/(Loss), derivatives not designated as hedging instruments	433	(109)	259	(207)
Derivatives in cash flow hedging relationships
Derivative instruments, Location of Gain/(Loss)
Interest rate derivatives, net	195	405	389	811
Derivatives in cash flow hedging relationships | Interest rate contracts | Interest expense
Derivative instruments, Location of Gain/(Loss)
Amount of Gain/(Loss) reclassified from AOCI into earnings	$ 195	$ 405	$ 389	$ 811

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Carrying Value
Liabilities:
Long-term debt	$ 798,543	$ 794,269
Total Fair Value
Liabilities:
Long-term debt	811,219	755,000
Recurring basis | Level 2
Liabilities:
Total fair value, net	146,427	251,696
Recurring basis | Level 2 | Commodity derivatives
Assets:
Derivative asset, fair value	154,009	252,485
Liabilities:
Derivative liability, fair value	(7,574)
Recurring basis | Level 2 | Interest rate contracts
Assets:
Derivative asset, fair value	916
Liabilities:
Derivative liability, fair value	(924)	(789)
Recurring basis | Total Fair Value
Liabilities:
Total fair value, net	146,427	251,696
Recurring basis | Total Fair Value | Commodity derivatives
Assets:
Derivative asset, fair value	154,009	252,485
Liabilities:
Derivative liability, fair value	(7,574)
Recurring basis | Total Fair Value | Interest rate contracts
Assets:
Derivative asset, fair value	916
Liabilities:
Derivative liability, fair value	$ (924)	$ (789)

Equity-based Compensation (Deta

Equity-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
LTIP
Compensation agreement
Compensation expense recognized		$ 23.3	$ 18	$ 48.5	$ 35.9
Tax benefit		8.2	8	17	14.1
Tax shortfall related to equity-based compensation		18.3	6.4	18.4	6.5
Fair value of awards vested		$ 50	$ 31.9	$ 50.8	$ 33.3
Other disclosures
Additional shares authorized	15,000
Number of shares remaining available for grant		11,800		11,800
Minimum | LTIP
Significant assumptions used to calculate fair values
Vesting period				3 years
Maximum | LTIP
Significant assumptions used to calculate fair values
Vesting period				4 years
Service Vesting Restricted Stock Awards | LTIP
Outstanding unvested awards activity
Outstanding at the beginning of the period (in shares)	3,240			3,240
Granted (in shares)				660
Forfeited (in shares)				(2)
Vested (in shares)				(3,054)
Outstanding at the end of the period (in shares)		844		844
Weighted-Average Grant-Date Fair Value
Outstanding at beginning of the period (in dollars per share)	$ 16.95			$ 16.95
Granted (in dollars per share)				8.64
Forfeited (in dollars per share)				8.85
Vested (in dollars per share)				17.27
Outstanding at the end of the period (in dollars per share)		$ 9.33		$ 9.33
Market/Service Vesting Restricted Stock Awards | LTIP
Outstanding unvested awards activity
Outstanding at the beginning of the period (in shares)	3,361			3,361
Forfeited (in shares)				(1,554)
Vested (in shares)				(1,546)
Outstanding at the end of the period (in shares)		261		261
Weighted-Average Grant-Date Fair Value
Outstanding at beginning of the period (in dollars per share)	$ 13			$ 13
Forfeited (in dollars per share)				13.29
Vested (in dollars per share)				13.30
Outstanding at the end of the period (in dollars per share)		$ 9.44		9.44
Market/Service Vesting Restricted Stock Awards | Minimum | LTIP
Weighted-Average Grant-Date Fair Value
Granted (in dollars per share)				$ 6.70
Significant assumptions used to calculate fair values
Expected volatility (as a percent)				30.00%
Risk-free interest rate (as a percent)				0.50%
Market/Service Vesting Restricted Stock Awards | Maximum | LTIP
Weighted-Average Grant-Date Fair Value
Granted (in dollars per share)				$ 13.57
Other disclosures
Vesting percentage of the awards granted				100.00%
Significant assumptions used to calculate fair values
Expected volatility (as a percent)				76.00%
Risk-free interest rate (as a percent)				1.10%
Service Vesting Restricted Stock Units | LTIP
Outstanding unvested awards activity
Outstanding at the beginning of the period (in shares)	3,367			3,367
Granted (in shares)				1,283
Forfeited (in shares)				(89)
Vested (in shares)				(884)
Outstanding at the end of the period (in shares)		3,677		3,677
Weighted-Average Grant-Date Fair Value
Outstanding at beginning of the period (in dollars per share)	$ 10.76			$ 10.76
Granted (in dollars per share)				8.64
Forfeited (in dollars per share)				10.22
Vested (in dollars per share)				10.87
Outstanding at the end of the period (in dollars per share)		$ 10		$ 10
Service Vesting Restricted Stock Units | Minimum | LTIP
Significant assumptions used to calculate fair values
Expected volatility (as a percent)				30.00%
Service Vesting Restricted Stock Units | Maximum | LTIP
Significant assumptions used to calculate fair values
Expected volatility (as a percent)				76.00%
Market/Service Vesting Restricted Stock Units | LTIP
Outstanding unvested awards activity
Outstanding at the beginning of the period (in shares)	3,246			3,246
Granted (in shares)				3,430
Forfeited (in shares)				(67)
Outstanding at the end of the period (in shares)		6,609		6,609
Weighted-Average Grant-Date Fair Value
Outstanding at beginning of the period (in dollars per share)	$ 15.66			$ 15.66
Granted (in dollars per share)				12.96
Forfeited (in dollars per share)				14.94
Outstanding at the end of the period (in dollars per share)		$ 14.27		14.27
Market/Service Vesting Restricted Stock Units | Minimum | LTIP
Weighted-Average Grant-Date Fair Value
Granted (in dollars per share)				$ 12.96
Significant assumptions used to calculate fair values
Risk-free interest rate (as a percent)				0.50%
Market/Service Vesting Restricted Stock Units | Maximum | LTIP
Weighted-Average Grant-Date Fair Value
Granted (in dollars per share)				$ 15.81
Other disclosures
Vesting percentage of the awards granted				200.00%
Significant assumptions used to calculate fair values
Risk-free interest rate (as a percent)				1.20%
Restricted Stock Awards and Restricted Stock Units
Other disclosures
Compensation expense not yet recognized		$ 73.9		$ 73.9
Weighted average period over which compensation expense is to be recognized				2 years 11 days

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes
Income tax expense	$ 25,390	$ 80,784	$ 51,089	$ 131,567
Income (loss) before income taxes	$ (49,802)	$ 137,291	$ (103,012)	$ 263,043
Effective tax rate (as a percent)	(51.00%)	59.00%	(50.00%)	50.00%
Bermuda
Income Taxes
Income (loss) before income taxes	$ (17,374)	$ (6,904)	$ (31,037)	$ (12,219)
United States
Income Taxes
Income (loss) before income taxes	$ 3,887	$ 4,207	$ 8,554	$ 7,494
Effective tax rate (as a percent)	511.00%	193.00%	256.00%	128.00%
Foreign-other
Income Taxes
Income (loss) before income taxes	$ (36,315)	$ 139,988	$ (80,529)	$ 267,768
Effective tax rate (as a percent)			0.00%
Statutory tax rate (as a percent)			0.00%
Ghana
Income Taxes
Effective tax rate (as a percent)	43.00%	36.00%	36.00%	36.00%

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net income (loss)	$ (75,192)	$ 56,507	$ (154,101)	$ 131,476
Less: Basic income allocable to participating securities		(721)		(1,920)
Basic net income (loss) allocable to common shareholders	(75,192)	55,786	(154,101)	129,556
Diluted adjustments to income allocable to participating securities		6		15
Diluted net income (loss) allocable to common shareholders	$ (75,192)	$ 55,792	$ (154,101)	$ 129,571
Weighted average number of shares used to compute net income (loss) per share:
Basic (in shares)	382,138	378,820	381,238	378,327
Restricted stock awards and units (in shares)		2,998		2,830
Diluted (in shares)	382,138	381,818	381,238	381,157
Net income (loss) per share:
Basic (in dollars per share)	$ (0.20)	$ 0.15	$ (0.40)	$ 0.34
Diluted (in dollars per share)	$ (0.20)	$ 0.15	$ (0.40)	$ 0.34
Outstanding restricted stock awards and units excluded from the computations of diluted net income per share (in shares)	11,400	4,400	11,400	4,400

Commitments and Contingencies51

Commitments and Contingencies (Details) - Jun. 30, 2015 $ in Thousands	USD ($)item
Operating leases
Future minimum rental commitments
Total	$ 14,469
2,015	1,634
2,016	3,158
2,017	3,223
2,018	3,323
2,019	$ 3,131
Atwood Achiever drilling rig contract
Offshore drilling rig contract commitments
Drilling rig contract period	3 years
Initial rig rate per day	$ 600
Optional extension period	3 years
Number of rig slots taken by third-party | item	1
Estimated number of days of rig slots assigned to third party in 2015	51 days
Future minimum rental commitments
Total	$ 443,275
2,015	79,135
2,016	217,770
2,017	146,370
Rig rate per day	$ 600