Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35167 | |
Entity Registrant Name | Kosmos Energy Ltd. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0686001 | |
Entity Address, Address Line One | 8176 Park Lane | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75231 | |
Title of 12(b) Security | Common Stock $0.01 par value | |
Trading Symbol | KOS | |
Security Exchange Name | NYSE | |
Country Region | +1 | |
City Area Code | 214 | |
Local Phone Number | 445 9600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 460,109,397 | |
Entity Central Index Key | 0001509991 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 85,729 | $ 183,405 |
Receivables: | ||
Joint interest billings, net | 34,234 | 28,851 |
Oil sales | 47,411 | 67,483 |
Other | 16,853 | 23,401 |
Inventories | 191,412 | 133,515 |
Prepaid expenses and other | 32,639 | 24,722 |
Derivatives | 11,270 | 7,344 |
Total current assets | 419,548 | 468,721 |
Property and equipment: | ||
Oil and gas properties, net | 4,073,399 | 3,837,437 |
Other property, net | 4,422 | 5,210 |
Property and equipment, net | 4,077,821 | 3,842,647 |
Other assets: | ||
Restricted cash | 3,416 | 3,416 |
Long-term receivables | 278,744 | 235,696 |
Deferred financing costs, net of accumulated amortization of $14,423 and $13,263 at June 30, 2023 and December 31, 2022, respectively | 3,480 | 4,640 |
Derivatives | 3,505 | 1,725 |
Other | 21,105 | 23,143 |
Total assets | 4,807,619 | 4,579,988 |
Current liabilities: | ||
Accounts payable | 263,753 | 212,275 |
Accrued liabilities | 243,880 | 325,206 |
Current maturities of long-term debt | 15,000 | 30,000 |
Derivatives | 1,097 | 6,773 |
Total current liabilities | 523,730 | 574,254 |
Long-term liabilities: | ||
Long-term debt, net | 2,358,689 | 2,195,911 |
Derivatives | 138 | 778 |
Asset retirement obligations | 310,542 | 300,800 |
Deferred tax liabilities | 459,417 | 468,445 |
Other long-term liabilities | 251,199 | 251,952 |
Total long-term liabilities | 3,379,985 | 3,217,886 |
Stockholders’ equity: | ||
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at June 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.01 par value; 2,000,000,000 authorized shares; 504,344,893 and 500,161,421 issued at June 30, 2023 and December 31, 2022, respectively | 5,043 | 5,002 |
Additional paid-in capital | 2,515,055 | 2,505,694 |
Accumulated deficit | (1,379,187) | (1,485,841) |
Treasury stock, at cost, 44,263,269 shares at June 30, 2023 and December 31, 2022, respectively | (237,007) | (237,007) |
Total stockholders’ equity | 903,904 | 787,848 |
Total liabilities and stockholders’ equity | $ 4,807,619 | $ 4,579,988 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Deferred financing costs, accumulated amortization | $ 14,423 | $ 13,263 |
Preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preference shares, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Preference shares, issued shares (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized shares (in shares) | 2,000,000,000 | 2,000,000,000 |
Common shares, issued shares (in shares) | 504,344,893 | 500,161,421 |
Treasury stock shares (in shares) | 44,263,269 | 44,263,269 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues and other income: | ||||||
Oil and gas revenue | $ 273,255 | $ 620,368 | $ 667,495 | $ 1,279,383 | ||
Gain on sale of assets | 0 | 471 | 0 | 471 | ||
Other income, net | 60 | 43 | (313) | 95 | ||
Total revenues and other income | 273,315 | 620,882 | 667,182 | 1,279,949 | ||
Costs and expenses: | ||||||
Oil and gas production | 63,579 | 90,189 | 147,515 | 214,892 | ||
Facilities insurance modifications, net | 0 | (384) | 0 | 6,752 | ||
Exploration expenses | 11,015 | 89,565 | 23,015 | 101,441 | ||
General and administrative | 23,444 | 24,624 | 52,611 | 50,417 | ||
Depletion, depreciation and amortization | 89,913 | 121,679 | 199,287 | 280,648 | ||
Interest and other financing costs, net | 24,371 | 29,382 | 48,939 | 62,521 | ||
Derivatives, net | 3,031 | 75,204 | (3,809) | 357,376 | ||
Other expenses, net | 4,779 | (3,528) | 6,809 | (1,102) | ||
Total costs and expenses | 220,132 | 426,731 | 474,367 | 1,072,945 | ||
Income before income taxes | 53,183 | 194,151 | 192,815 | 207,004 | ||
Income tax expense | 29,838 | 76,978 | 86,161 | 88,431 | ||
Net income | $ 23,345 | $ 83,309 | $ 117,173 | $ 1,400 | $ 106,654 | $ 118,573 |
Net income per share: | ||||||
Basic (in dollars per share) | $ 0.05 | $ 0.26 | $ 0.23 | $ 0.26 | ||
Diluted (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.22 | $ 0.25 | ||
Weighted average number of shares used to compute net income per share: | ||||||
Basic (in shares) | 459,984 | 455,512 | 459,155 | 454,811 | ||
Diluted (in shares) | 479,016 | 475,645 | 478,902 | 473,471 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Balance at the beginning (in shares) at Dec. 31, 2021 | 496,152 | ||||
Balance at the beginning at Dec. 31, 2021 | $ 529,237 | $ 4,962 | $ 2,473,674 | $ (1,712,392) | $ (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Dividends | 12 | 12 | |||
Equity-based compensation | 8,425 | 8,425 | |||
Restricted stock units (in shares) | 3,377 | ||||
Restricted stock units | 0 | $ 33 | (33) | ||
Tax withholdings on restricted stock units | (2,753) | (2,753) | |||
Net income | 1,400 | 1,400 | |||
Balance at the end (in shares) at Mar. 31, 2022 | 499,529 | ||||
Balance at the end at Mar. 31, 2022 | 536,321 | $ 4,995 | 2,479,325 | (1,710,992) | (237,007) |
Balance at the beginning (in shares) at Dec. 31, 2021 | 496,152 | ||||
Balance at the beginning at Dec. 31, 2021 | 529,237 | $ 4,962 | 2,473,674 | (1,712,392) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 118,573 | ||||
Balance at the end (in shares) at Jun. 30, 2022 | 500,016 | ||||
Balance at the end at Jun. 30, 2022 | 662,366 | $ 5,000 | 2,488,192 | (1,593,819) | (237,007) |
Balance at the beginning (in shares) at Mar. 31, 2022 | 499,529 | ||||
Balance at the beginning at Mar. 31, 2022 | 536,321 | $ 4,995 | 2,479,325 | (1,710,992) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Dividends | (14) | (14) | |||
Equity-based compensation | 8,886 | 8,886 | |||
Restricted stock units (in shares) | 487 | ||||
Restricted stock units | 0 | $ 5 | (5) | ||
Net income | 117,173 | 117,173 | |||
Balance at the end (in shares) at Jun. 30, 2022 | 500,016 | ||||
Balance at the end at Jun. 30, 2022 | 662,366 | $ 5,000 | 2,488,192 | (1,593,819) | (237,007) |
Balance at the beginning (in shares) at Dec. 31, 2022 | 500,161 | ||||
Balance at the beginning at Dec. 31, 2022 | 787,848 | $ 5,002 | 2,505,694 | (1,485,841) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Equity-based compensation | 10,093 | 10,093 | |||
Restricted stock units (in shares) | 3,691 | ||||
Restricted stock units | 0 | $ 37 | (37) | ||
Tax withholdings on restricted stock units | (11,810) | (11,810) | |||
Net income | 83,309 | 83,309 | |||
Balance at the end (in shares) at Mar. 31, 2023 | 503,852 | ||||
Balance at the end at Mar. 31, 2023 | 869,440 | $ 5,039 | 2,503,940 | (1,402,532) | (237,007) |
Balance at the beginning (in shares) at Dec. 31, 2022 | 500,161 | ||||
Balance at the beginning at Dec. 31, 2022 | 787,848 | $ 5,002 | 2,505,694 | (1,485,841) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 106,654 | ||||
Balance at the end (in shares) at Jun. 30, 2023 | 504,345 | ||||
Balance at the end at Jun. 30, 2023 | 903,904 | $ 5,043 | 2,515,055 | (1,379,187) | (237,007) |
Balance at the beginning (in shares) at Mar. 31, 2023 | 503,852 | ||||
Balance at the beginning at Mar. 31, 2023 | 869,440 | $ 5,039 | 2,503,940 | (1,402,532) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Dividends | (1) | (1) | |||
Equity-based compensation | 11,121 | 11,121 | |||
Restricted stock units (in shares) | 493 | ||||
Restricted stock units | 0 | $ 4 | (4) | ||
Tax withholdings on restricted stock units | (1) | (1) | |||
Net income | 23,345 | 23,345 | |||
Balance at the end (in shares) at Jun. 30, 2023 | 504,345 | ||||
Balance at the end at Jun. 30, 2023 | $ 903,904 | $ 5,043 | $ 2,515,055 | $ (1,379,187) | $ (237,007) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net income | $ 106,654 | $ 118,573 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion, depreciation and amortization (including deferred financing costs) | 204,368 | 285,909 |
Deferred income taxes | (9,029) | (83,432) |
Unsuccessful well costs and leasehold impairments | 1,313 | 73,662 |
Change in fair value of derivatives | (220) | 367,374 |
Cash settlements on derivatives, net (including $(8.2) million and $(212.9) million on commodity hedges during 2023 and 2022) | (10,632) | (223,618) |
Equity-based compensation | 21,198 | 17,129 |
Gain on sale of assets | 0 | (471) |
Loss on extinguishment of debt | 0 | 192 |
Other | (1,474) | (3,742) |
Changes in assets and liabilities: | ||
(Increase) decrease in receivables | 16,330 | (103,589) |
(Increase) in inventories | (60,836) | (9,398) |
(Increase) in prepaid expenses and other | (5,988) | (4,261) |
Increase in accounts payable | 51,478 | 78,179 |
Increase (decrease) in accrued liabilities | (91,199) | 95,679 |
Net cash provided by operating activities | 221,963 | 608,186 |
Investing activities | ||
Oil and gas assets | (416,867) | (320,787) |
Acquisition of oil and gas properties | 0 | (21,205) |
Proceeds on sale of assets | 0 | 118,693 |
Notes receivable from partners | (33,295) | (11,428) |
Net cash used in investing activities | (450,162) | (234,727) |
Financing activities | ||
Borrowings under long-term debt | 150,000 | 0 |
Payments on long-term debt | (7,500) | (315,000) |
Tax withholdings on restricted stock units | (11,811) | (2,753) |
Dividends | (166) | (655) |
Deferred financing costs | 0 | (6,288) |
Net cash provided by (used in) financing activities | 130,523 | (324,696) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (97,676) | 48,763 |
Cash, cash equivalents and restricted cash at beginning of period | 186,821 | 174,896 |
Cash, cash equivalents and restricted cash at end of period | 89,145 | 223,659 |
Cash paid for: | ||
Interest, net of capitalized interest | 32,468 | 46,262 |
Income taxes, net of refund received | $ 145,365 | $ 137,099 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Cash settlements on commodity hedges derivatives | $ (8.2) | $ (212.9) |
Organization
Organization | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Kosmos Energy Ltd. is incorporated in the State of Delaware as a holding company for Kosmos Energy Delaware Holdings, LLC, a Delaware limited liability company. 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 full-cycle, deepwater, independent oil and gas exploration and production company focused along the offshore Atlantic Margins. Our key assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as world-class gas projects offshore Mauritania and Senegal. We also pursue a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. Kosmos is engaged in a single line of business, which is the exploration, development, and production of oil and natural gas. Substantially all of our long-lived assets and all of our product sales are related to operations in four geographic areas: Ghana, Equatorial Guinea, Mauritania/Senegal and the U.S. Gulf of Mexico. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies General The interim consolidated financial statements included in this report are unaudited and, in the opinion of management, include all adjustments of a normal recurring nature necessary for a fair presentation of the results for the interim periods. 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 interim consolidated financial statements were prepared in accordance with the requirements of the SEC for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by GAAP have been condensed or omitted from these interim consolidated financial statements. These interim consolidated financial statements and the accompanying notes should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2022, included in our annual report on Form 10-K. Reclassifications Certain prior period amounts have been reclassified to conform with the current presentation. Such reclassifications had no significant impact on our reported net income, current assets, total assets, current liabilities, total liabilities, stockholders’ equity or cash flows. Cash, Cash Equivalents and Restricted Cash June 30, December 31, (In thousands) Cash and cash equivalents $ 85,729 $ 183,405 Restricted cash - long-term 3,416 3,416 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 89,145 $ 186,821 Cash and cash equivalents include demand deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. 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 for shared costs. 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. Inventories Inventories consisted of $143.4 million and $125.3 million of materials and supplies and $48.0 million and $8.2 million of hydrocarbons as of June 30, 2023 and December 31, 2022, 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 net realizable value. Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or net realizable value. 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. Revenue Recognition Our oil and gas revenues are recognized when hydrocarbons have been sold to a purchaser at a fixed or determinable price, title has transferred and collection is probable. Certain revenues are based on provisional price contracts which contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from oil sales at the spot price on the date of sale. The embedded derivative, which is not designated as a hedge, is marked to market through oil and gas revenue each period until the final settlement occurs, which generally is limited to the month of or month after the sale. Oil and gas revenue is composed of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Revenues from contract with customers - Equatorial Guinea $ 37,542 $ 113,608 $ 107,739 $ 222,353 Revenues from contract with customers - Ghana 143,060 325,078 380,579 742,185 Revenues from contract with customers - U.S. Gulf of Mexico 91,740 183,046 182,766 324,843 Provisional oil sales contracts 913 (1,364) (3,589) (9,998) Oil and gas revenue $ 273,255 $ 620,368 $ 667,495 $ 1,279,383 Concentration of Credit Risk Our revenue can be materially affected by current economic conditions and the price of oil and natural gas. However, based on the current demand for crude oil and natural gas and the fact that alternative purchasers are readily available, we believe that the loss of our purchasers and/or marketing agents would not have a long‑term material adverse effect on our financial position or results of operations. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and DivestituresIn February 2023, Kosmos and Panoro Energy ASA (“Panoro”) entered into a petroleum contract covering Block EG-01 offshore Equatorial Guinea with the Republic of Equatorial Guinea. Kosmos holds a 24% participating interest in the block and the operator, Panoro, holds a 56% participating interest. The Equatorial Guinean national oil company, Guinea Equatorial De Petroles (“GEPetrol”), currently has a 20% carried participating interest during the exploration period. Should a commercial discovery be made, GEPetrol’s 20% carried interest will convert to a 20% participating interest. Block EG-01 currently comprises approximately 59,400 acres (240 square kilometers), with a first exploration period of three years from the effective date (March 1, 2023). In March 2023, we closed a farm-out agreement with Panoro, whereby Panoro acquired a 6.0% participating interest in Block S offshore Equatorial Guinea. As a result of the farm-out agreement, Kosmos’ participating interest in Block S was reduced to 34.0%. |
Long-term Receivables
Long-term Receivables | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Long-term Receivables | Long-term Receivables In February 2019, Kosmos and BP signed Carry Advance Agreements with the national oil companies of Mauritania and Senegal obligating us to finance a portion of the respective national oil company’s share of certain development costs incurred through first gas production for Greater Tortue Ahmeyim Phase 1, currently targeted in the first quarter of 2024. Kosmos’ share for the two agreements combined is originally estimated at approximately $240.0 million, which is to be repaid with interest through the national oil companies’ share of future revenues. As of June 30, 2023 and December 31, 2022, the balance due from the national oil companies (including interest) was $259.0 million and $218.4 million, respectively, which is classified as Long-term receivables on our consolidated balance sheets. Interest income on the long-term notes receivable was $3.8 million and $2.3 million for the three months ended June 30, 2023 and 2022, respectively, and $7.3 million and $4.3 million for the six months ended June 30, 2023 and 2022, respectively. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is stated at cost and consisted of the following: June 30, December 31, (In thousands) Oil and gas properties: Proved properties $ 7,358,007 $ 6,953,435 Unproved properties 356,288 341,334 Total oil and gas properties 7,714,295 7,294,769 Accumulated depletion (3,640,896) (3,457,332) Oil and gas properties, net 4,073,399 3,837,437 Other property 61,478 60,730 Accumulated depreciation (57,056) (55,520) Other property, net 4,422 5,210 Property and equipment, net $ 4,077,821 $ 3,842,647 We recorded depletion expense of $82.0 million and $114.7 million for the three months ended June 30, 2023 and 2022, respectively, and $183.6 million and $266.4 million for the six months ended June 30, 2023 and 2022, respectively. |
Suspended Well Costs
Suspended Well Costs | 6 Months Ended |
Jun. 30, 2023 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Suspended Well Costs | Suspended Well Costs The following table reflects the Company’s capitalized exploratory well costs on drilled wells as of and during the six months ended June 30, 2023. June 30, (In thousands) Beginning balance $ 145,957 Additions to capitalized exploratory well costs pending the determination of proved reserves 5,228 Reclassification due to determination of proved reserves — Capitalized exploratory well costs charged to expense — Ending balance $ 151,185 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, December 31, (In thousands, except project counts) Exploratory well costs capitalized for a period of one year or less $ — $ — Exploratory well costs capitalized for a period of one to three years 33,248 32,770 Exploratory well costs capitalized for a period of four to seven years 117,937 113,187 Ending balance $ 151,185 $ 145,957 Number of projects that have exploratory well costs that have been capitalized for a period greater than one year 2 2 As of June 30, 2023, the projects with exploratory well costs capitalized for more than one year since the completion of drilling are related to the Yakaar and Teranga discoveries in the Cayar Offshore Profond block offshore Senegal and the Asam discovery in Block S offshore Equatorial Guinea. Yakaar and Teranga Discoveries — In May 2016, we drilled the Teranga-1 exploration well in the Cayar Offshore Profond block offshore Senegal, which encountered hydrocarbon pay. In June 2017, we drilled the Yakaar-1 exploration well in the Cayar Offshore Profond block offshore Senegal, which encountered hydrocarbon pay. In November 2017, an integrated Yakaar-Teranga appraisal plan was submitted to the government of Senegal. In September 2019, we drilled the Yakaar-2 appraisal well which encountered hydrocarbon pay. The Yakaar-2 well was drilled approximately nine kilometers from the Yakaar-1 exploration well. In July 2021, the current phase of the Cayar Block exploration license was extended up to an additional three years to 2024. The Yakaar and Teranga discoveries are being analyzed as a joint development. During the first and second quarter of 2023 we have continued progressing appraisal studies and maturing concept design. Following additional evaluation, a decision regarding commerciality is expected to be made. Asam Discovery — In October 2019, we drilled the S-5 exploration well offshore Equatorial Guinea, which encountered hydrocarbon pay. The discovery was subsequently named Asam. In July 2020, an appraisal work program was approved by the government of Equatorial Guinea. The well is located within tieback range of the Ceiba FPSO and the appraisal work program is currently ongoing to integrate all available data into models to establish the scale of the discovered resource and evaluate the optimum development solution. During the fourth quarter of 2022, we received approval from the Government of Equatorial Guinea to enter the second sub-period phase of the Block S exploration license with a scheduled expiration in December 2024. Additionally, in December 2022 the Asam Field appraisal report was submitted to the Government of Equatorial Guinea. During the first and second quarter of 2023, studies and concept design continued to progress. Following additional evaluation, a decision regarding commerciality is expected to be made. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt June 30, December 31, (In thousands) Outstanding debt principal balances: Facility $ 775,000 $ 625,000 7.125% Senior Notes 650,000 650,000 7.750% Senior Notes 400,000 400,000 7.500% Senior Notes 450,000 450,000 GoM Term Loan 137,500 145,000 Total long-term debt 2,412,500 2,270,000 Unamortized deferred financing costs and discounts (38,811) (44,089) Total debt, net 2,373,689 2,225,911 Less: Current maturities of long-term debt (15,000) (30,000) Long-term debt, net $ 2,358,689 $ 2,195,911 Facility The Facility supports our oil and gas exploration, appraisal and development programs and corporate activities. As of June 30, 2023, borrowings under the Facility totaled $775.0 million and the undrawn availability under the Facility was $370.1 million. Final maturity of the Facility is in March 2027. In April 2023, during the Spring 2023 redetermination, the Company’s lending syndicate approved a borrowing base capacity of approximately $1.15 billion resulting in a reduction of approximately $100 million of availability under the Facility. The borrowing base amount is based on the sum of the net present values of net cash flows and relevant capital expenditures reduced by certain percentages as well as value attributable to certain assets’ reserves and/or resources in the Company’s production assets in Ghana (excluding the additional interests in Jubilee and TEN acquired in the acquisition of Anadarko WCTP in October 2021) and Equatorial Guinea. On November 23, 2022, the Company amended the Facility to update the interest rate benchmark from LIBOR to term SOFR, effective as of April 19, 2023. As amended, interest on the Facility is the aggregate of the applicable margin (3.75% to 5.00%, depending on the length of time that has passed from the date the Facility was entered into), plus the term SOFR reference rate administered by CME Group Benchmark Administration Limited for the relevant period published and a credit adjustment spread. Interest is payable on the last day of each interest period (and, if the interest period is longer than six months, on the dates falling at six-month intervals after the first day of the interest period). We pay commitment fees on the undrawn and unavailable portion of the total commitments, if any. Commitment fees are equal to 30% per annum of the then-applicable respective margin when a commitment is available for utilization and, equal to 20% per annum of the then-applicable respective margin when a commitment is not available for utilization. We recognize interest expense in accordance with ASC 835 — Interest, which requires interest expense to be recognized using the effective interest method. We determined the effective interest rate based on the estimated level of borrowings under the Facility. We were in compliance with the financial covenants contained in the Facility as of March 31, 2023 (the most recent assessment date). The Facility, as amended, contains customary cross default provisions. Corporate Revolver The Corporate Revolver is available for general corporate purposes and for oil and gas exploration, appraisal and development programs. As of June 30, 2023, there were no outstanding borrowings under the Corporate Revolver and the undrawn availability was $250.0 million with an expiration date of December 31, 2024. The Company capitalized $6.1 million of deferred financing costs associated with entering into the new revolving credit facility in March 2022, which is being amortized over the term of the new revolving credit facility. On November 23, 2022, the Company amended the Corporate Revolver to update the interest rate benchmark from compounded SOFR to term SOFR, effective as of April 19, 2023. As amended, interest on the Corporate Revolver is the aggregate of a 7.0% margin, the term SOFR reference rate administered by CME Group Benchmark Administration Limited for the relevant period published and a credit adjustment spread. Interest is payable on the last day of each interest period (and, if the interest period is longer than six months, on the dates falling at six-month intervals after the first day of the interest period). We pay commitment fees on the undrawn portion of the total commitments. Commitment fees for the lenders are equal to 30% per annum of the respective margin when a commitment is available for utilization. We were in compliance with the financial covenants contained in the Corporate Revolver as of March 31, 2023 (the most recent assessment date). The Corporate Revolver contains customary cross default provisions. 7.125% Senior Notes due 2026 In April 2019, the Company issued $650.0 million of 7.125% Senior Notes and received net proceeds of approximately $640.0 million after deducting commissions and other expenses. The 7.125% Senior Notes mature on April 4, 2026. Interest is payable in arrears each April 4 and October 4, commencing on October 4, 2019. The 7.125% Senior Notes are senior, unsecured obligations of Kosmos Energy Ltd. and rank equal in right of payment with all of its existing and future senior indebtedness (including all borrowings under the Corporate Revolver, 7.750% Senior Notes and the 7.500% Senior Notes) and rank effectively junior in right of payment to all of its existing and future secured indebtedness (including all borrowings under the Facility) and all borrowings under the GoM Term Loan. The 7.125% Senior Notes are guaranteed on a senior, unsecured basis by certain subsidiaries owning the Company's U.S. Gulf of Mexico assets and the interests acquired in the Anadarko WCTP acquisition, and on a subordinated, unsecured basis by certain subsidiaries that borrow under, or guarantee, the Facility and that guarantee the Corporate Revolver, the 7.750% Senior Notes and the 7.500% Senior Notes. The 7.125% Senior Notes contain customary cross default provisions. 7.750% Senior Notes due 2027 In October 2021, the Company issued $400.0 million of 7.750% Senior Notes and received net proceeds of approximately $395.0 million after deducting fees. The 7.750% Senior Notes mature on May 1, 2027. Interest is payable in arrears each May 1 and November 1, commencing on May 1, 2022. The 7.750% Senior Notes are senior, unsecured obligations of Kosmos Energy Ltd. and rank equal in right of payment with all of its existing and future senior indebtedness (including all borrowings under the Corporate Revolver, the 7.125% Senior Notes and the 7.500% Senior Notes) and rank effectively junior in right of payment to all of its existing and future secured indebtedness (including all borrowings under the Facility) and all borrowings under the GoM Term Loan. The 7.750% Senior Notes are guaranteed on a senior, unsecured basis by certain subsidiaries owning the Company's U.S. Gulf of Mexico assets and the interests acquired in the Anadarko WCTP acquisition, and on a subordinated, unsecured basis by certain subsidiaries that borrow under, or guarantee, the Facility and that guarantee the Corporate Revolver, the 7.125% Senior Notes and the 7.500% Senior Notes. The 7.750% Senior Notes contain customary cross default provisions. 7.500% Senior Notes due 2028 In March 2021, the Company issued $450.0 million of 7.500% Senior Notes and received net proceeds of approximately $444.4 million after deducting fees. The 7.500% Senior Notes mature on March 1, 2028. Interest is payable in arrears each March 1 and September 1, commencing on September 1, 2021. The 7.500% Senior Notes are senior, unsecured obligations of Kosmos Energy Ltd. and rank equal in right of payment with all of its existing and future senior indebtedness (including all borrowings under the Corporate Revolver, the 7.125% Senior Notes and the 7.750% Senior Notes) and rank effectively junior in right of payment to all of its existing and future secured indebtedness (including all borrowings under the Facility) and all borrowings under the GoM Term Loan. The 7.500% Senior Notes are guaranteed on a senior, unsecured basis by certain subsidiaries owning the Company's U.S. Gulf of Mexico assets and the interests in the Anadarko WCTP acquisition, and on a subordinated, unsecured basis by certain subsidiaries that borrow under, or guarantee, the Facility and that guarantee the Corporate Revolver, and the 7.125% Senior Notes and the 7.750% Senior Notes. The 7.500% Senior Notes contain customary cross default provisions. GoM Term Loan In September 2020, the Company entered into a five-year $200.0 million senior secured term-loan credit agreement secured against the Company's U.S. Gulf of Mexico assets with net proceeds received of $197.7 million after deducting fees and other expenses. The GoM Term Loan also includes an accordion feature providing for incremental commitments of up to $100.0 million subject to certain conditions. The GoM Term Loan bears interest at the weighted average margin of 5.9% per annum plus a benchmark rate of 0.35% and Federal Funds Rate and matures in 2025, with quarterly principal repayments having started since the fourth quarter of 2021. In June 2023, the Company amended the GoM Term Loan deferring the scheduled quarterly principal repayments through March 31, 2024 and extending the deferred repayments to the maturity date. As of June 30, 2023, $15.0 million of the total $137.5 million outstanding under the GoM Term Loan has been classified within Current maturities of long-term debt on our consolidated balance sheet. We were in compliance with the covenants, representations and warranties contained in the GoM Term Loan as of March 31, 2023 (the most recent assessment date). The GoM Term Loan contains customary cross default provisions. Principal Debt Repayments At June 30, 2023, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year Total 2023(2) 2024 2025 2026 2027 Thereafter (In thousands) Principal debt repayments(1) $ 2,412,500 $ — $ 123,047 $ 334,950 $ 929,282 $ 575,221 $ 450,000 __________________________________ (1) Includes the scheduled maturities for outstanding principal debt balances. The scheduled maturities of debt related to the Facility as of June 30, 2023 are based on our level of borrowings and our estimated future available borrowing base commitment levels in future periods. 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. (2) Represents payments for the period July 1, 2023 through December 31, 2023. Interest and other financing costs, net Interest and other financing costs, net incurred during the periods is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Interest expense $ 51,965 $ 43,016 $ 100,480 $ 86,178 Amortization—deferred financing costs 2,530 2,591 5,081 5,261 Loss on extinguishment of debt — — — 192 Capitalized interest (33,688) (19,187) (63,891) (35,326) Deferred interest 670 10 353 (1,440) Interest income (4,445) (3,344) (8,586) (4,884) Other, net 7,339 6,296 15,502 12,540 Interest and other financing costs, net $ 24,371 $ 29,382 $ 48,939 $ 62,521 Capitalized interest for the six months ended June 30, 2023 and 2022 primarily relates to spend on the Greater Tortue Ahmeyim Phase 1 project. After first gas production on the Greater Tortue Ahmeyim Phase 1 project, which is targeted in the first quarter of 2024, we will no longer capitalize interest on the project. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 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. We have included an estimate of non-performance risk in the fair value measurement of our derivative contracts as required by ASC 820 — Fair Value Measurement. Oil Derivative Contracts The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average prices per Bbl for those contracts as of June 30, 2023. Volumes and weighted average prices are net of any offsetting derivative contracts entered into. Weighted Average Price per Bbl Net Deferred Premium Payable/ Sold Term Type of Contract Index MBbl (Receivable) Put Floor Ceiling 2023: Jul - Dec Three-way collars Dated Brent 3,000 $ 1.34 $ 49.17 $ 71.67 $ 107.58 Jul - Dec Two-way collars Dated Brent 2,500 1.69 — 72.00 112.00 2024: Jan - Dec Three-way collars Dated Brent 2,000 1.35 45.00 70.00 97.50 Jan - Jun Two-way collars Dated Brent 2,000 1.24 — 65.00 85.00 __________________________________ In July 2023, we entered into Dated Brent three-way collar contracts for 2.0 MMBbl from January 2024 through December 2024 with sold put price of $45.00 per barrel, a floor price of $70.00 per barrel and a ceiling price of $95.00 per barrel. The following tables disclose the Company’s derivative instruments as of June 30, 2023 and December 31, 2022, and gain/(loss) from derivatives during the three and six months ended June 30, 2023 and 2022, respectively: Estimated Fair Value Asset (Liability) Type of Contract Balance Sheet Location June 30, December 31, (In thousands) Derivatives not designated as hedging instruments: Derivative assets: Commodity Derivatives assets—current $ 11,270 $ 7,344 Provisional oil sales Receivables: Oil sales — 1,170 Commodity Derivatives assets—long-term 3,505 1,725 Derivative liabilities: Commodity Derivatives liabilities—current (1,097) (6,773) Commodity Derivatives liabilities—long-term (138) (778) Total derivatives not designated as hedging instruments $ 13,540 $ 2,688 Amount of Gain/(Loss) Amount of Gain/(Loss) Three Months Ended Six Months Ended June 30, June 30, Type of Contract Location of Gain/(Loss) 2023 2022 2023 2022 (In thousands) Derivatives not designated as hedging instruments: Provisional oil sales Oil and gas revenue $ 913 $ (1,364) $ (3,589) $ (9,998) Commodity Derivatives, net (3,031) (75,204) 3,809 (357,376) Total derivatives not designated as hedging instruments $ (2,118) $ (76,568) $ 220 $ (367,374) 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, 2023 and December 31, 2022, 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with ASC 820 — Fair Value Measurement, 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, 2023 and December 31, 2022, for each fair value hierarchy level: Fair Value Measurements Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) June 30, 2023 Assets: Commodity derivatives $ — $ 14,775 $ — $ 14,775 Provisional oil sales — — — — Liabilities: Commodity derivatives — (1,235) — (1,235) Total $ — $ 13,540 $ — $ 13,540 December 31, 2022 Assets: Commodity derivatives $ — $ 9,069 $ — $ 9,069 Provisional oil sales — 1,170 — 1,170 Liabilities: Commodity derivatives — (7,551) — (7,551) Total $ — $ 2,688 $ — $ 2,688 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, after any allowances for credit losses, and other long-term assets 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 collars, put options and call options for notional barrels of oil at fixed Dated Brent or NYMEX WTI oil prices. The values attributable to our oil derivatives are based on (i) the contracted notional volumes, (ii) independent active futures price quotes for the respective index, (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 the respective index. 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 8 — Derivative Financial Instruments for additional information regarding the Company’s derivative instruments. Provisional Oil Sales The value attributable to provisional oil sales derivatives is based on (i) the sales volumes and (ii) the difference in the independent active futures price quotes for the respective index over the term of the pricing period designated in the sales contract and the spot price on the lifting date. Debt The following table presents the carrying values and fair values at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7.125% Senior Notes $ 646,294 $ 572,598 $ 645,699 $ 558,201 7.750% Senior Notes 396,297 343,516 395,893 335,592 7.500% Senior Notes 445,921 372,893 445,564 361,958 GoM Term Loan 137,500 137,500 145,000 145,000 Facility 775,000 775,000 625,000 625,000 Total $ 2,401,012 $ 2,201,507 $ 2,257,156 $ 2,025,751 The carrying values of our 7.125% Senior Notes, 7.750% Senior Notes and 7.500% Senior Notes represent the principal amounts outstanding less unamortized discounts. The fair values of our 7.125% Senior Notes, 7.750% Senior Notes and 7.500% Senior Notes are based on quoted market prices, which results in a Level 1 fair value measurement. The carrying values of the GoM Term Loan and Facility approximate fair value since they are subject to short-term floating interest rates that approximate the rates available to us for those periods. Nonrecurring Fair Value Measurements - Long-lived assets Certain long-lived assets are reported at fair value on a non-recurring basis on the Company's consolidated balance sheet. These long-lived assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Our long-lived assets are reviewed for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company calculates the estimated fair values of its long-lived assets using the income approach described in the ASC 820 — Fair Value Measurements. Significant inputs associated with the calculation of estimated discounted future net cash flows include anticipated future production, pricing estimates, capital and operating costs, market-based weighted average cost of capital, and risk adjustment factors applied to reserves. These are classified as Level 3 fair value assumptions. The Company utilizes an average of third-party industry forecasts of Dated Brent, adjusted for location and quality differentials, to determine our pricing assumptions. In order to evaluate the sensitivity of the assumptions, we analyze sensitivities to prices, production, and risk adjustment factors. During the three and six months ended June 30, 2023 and 2022, the Company did not recognize impairment of proved oil and gas properties as no impairment indicators were identified. If we experience material declines in oil pricing expectations |
Equity-based Compensation
Equity-based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-based Compensation | Equity-based Compensation Restricted Stock Units We record equity-based compensation expense equal to the fair value of share-based payments over the vesting periods of the LTIP awards. We recorded compensation expense from awards granted under our LTIP of $11.1 million and $8.7 million during the three months ended June 30, 2023 and 2022, respectively, and $21.2 million and $17.1 million during the six months ended June 30, 2023 and 2022, respectively. The total tax benefit for the three months ended June 30, 2023 and 2022 was $1.9 million and $1.5 million, respectively, and $3.7 million and $2.9 million during the six months ended June 30, 2023 and 2022, respectively. Additionally, we recorded a net tax shortfall (windfall) related to equity-based compensation of $(0.5) million and $(0.5) million for the three months ended June 30, 2023 and 2022, respectively, and $(3.1) million and $0.7 million during the six months ended June 30, 2023 and 2022, respectively. The fair value of awards vested during the three months ended June 30, 2023 and 2022 was $3.8 million and $4.0 million, respectively, and $44.8 million and $21.3 million during the six months ended June 30, 2023 and 2022, respectively. The Company granted restricted stock units with service vesting criteria and a combination of market and service vesting criteria under the LTIP. Substantially all of these grants vest over three years. Upon vesting, restricted stock units become issued and outstanding stock. In June 2023, the Company’s stockholders approved the Amended and Restated Kosmos Energy Ltd. Long Term Incentive Plan, which authorized an additional 17.0 million shares of common stock available for issuance under the LTIP. The following table reflects the outstanding restricted stock units as of June 30, 2023: Weighted- Market / Service Weighted- Service Vesting Average Vesting Average Restricted Stock Grant-Date Restricted Stock Grant-Date Units Fair Value Units Fair Value (In thousands) (In thousands) Outstanding at December 31, 2022 4,916 $ 4.18 12,041 $ 5.61 Granted(1) 2,687 7.60 3,415 12.25 Forfeited(1) (151) 5.46 (64) 8.47 Vested (2,728) 3.86 (2,949) 8.22 Outstanding at June 30, 2023 4,724 5.70 12,443 6.57 __________________________________ (1) The restricted stock units with a combination of market and service vesting criteria may vest between 0% and 200% of the originally granted units depending upon market performance conditions. Awards vesting over or under target shares of 100% results in additional shares granted or forfeited, respectively, in the period the market vesting criteria is determined . As of June 30, 2023, total equity-based compensation to be recognized on unvested restricted stock units is $49.7 million over a weighted average period of 1.92 years. At June 30, 2023, the Company had approximately 18.5 million shares that remain available for issuance under the LTIP. For 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 200% of the awards granted. The grant date fair value ranged from $1.06 to $12.33 per award. The Monte Carlo simulation model utilized multiple input variables that determined the probability of satisfying the market condition stipulated in the award grant and calculated the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies and ranged from 50.0% to 105.0%. 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 0.2% to 3.7%. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We evaluate our estimated annual effective income tax rate each quarter, based on current and forecasted business results and enacted tax laws, and apply this tax rate to our ordinary income or loss to calculate our estimated tax expense or benefit. The Company excludes zero statutory tax rate and tax-exempt jurisdictions from our evaluation of the estimated annual effective income tax rate. The tax effect of discrete items are recognized in the period in which they occur at the applicable statutory tax rate. Income before income taxes is composed of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) United States $ (24,529) $ 52,381 $ (49,123) $ 61,664 Foreign 77,712 141,770 241,938 145,340 Income before income taxes $ 53,183 $ 194,151 $ 192,815 $ 207,004 For the three months ended, June 30, 2023 and 2022, our effective tax rate was 56% and 40%, respectively. For the six months ended June 30, 2023 and 2022, our effective tax rate was 45% and 43%, respectively. For the three and six months ended June 30, 2023 and 2022, our overall effective tax rates were impacted by: • The difference in our 21% U.S. income tax reporting rate and the 35% statutory tax rates applicable to our Ghanaian and Equatorial Guinean operations, • Jurisdictions that have a 0% statutory tax rate or that are tax exempt, • Jurisdictions where we have incurred losses and have recorded valuation allowances against the corresponding deferred tax assets, and • Other non-deductible expenses, primarily in the U.S. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income 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 per share: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands, except per share data) Numerator: Net income allocable to common stockholders $ 23,345 $ 117,173 $ 106,654 $ 118,573 Denominator: Weighted average number of shares outstanding: Basic 459,984 455,512 459,155 454,811 Restricted stock units(1) 19,032 20,133 19,747 18,660 Diluted 479,016 475,645 478,902 473,471 Net income per share: Basic $ 0.05 $ 0.26 $ 0.23 $ 0.26 Diluted $ 0.05 $ 0.25 $ 0.22 $ 0.25 __________________________________ (1) We excluded restricted stock units of 1.8 million and 0.1 million for the three months ended June 30, 2023 and 2022, respectively, and 1.4 million and 0.1 million for the six months ended June 30, 2023 and 2022, 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. We have a commitment to drill three development wells and one exploration well in Equatorial Guinea. We have a $200.2 million FPSO Contract Liability in Other long-term liabilities related to the deferred sale of the Greater Tortue FPSO. Performance Obligations |
Additional Financial Informatio
Additional Financial Information | 6 Months Ended |
Jun. 30, 2023 | |
Additional Financial Information | |
Additional Financial Information | Additional Financial Information Accrued Liabilities Accrued liabilities consisted of the following: June 30, December 31, (In thousands) Accrued liabilities: Exploration, development and production $ 66,331 $ 80,598 Revenue payable 20,676 26,087 Current asset retirement obligations 9,504 1,732 General and administrative expenses 18,028 32,069 Interest 40,951 44,740 Income taxes 77,199 127,183 Taxes other than income 1,510 1,524 Derivatives 1,242 6,440 Other 8,439 4,833 $ 243,880 $ 325,206 Asset Retirement Obligations The following table summarizes the changes in the Company's asset retirement obligations as of and during the six months ended June 30, 2023: June 30, (In thousands) Asset retirement obligations: Beginning asset retirement obligations $ 302,534 Liabilities incurred during period 6,580 Liabilities settled during period (3,342) Revisions in estimated retirement obligations 88 Accretion expense 14,186 Ending asset retirement obligations $ 320,046 Other Expenses, Net Other expenses, net incurred during the period is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Loss on disposal of inventory $ 2,704 $ 68 $ 2,939 $ 285 Loss on asset retirement obligations liability settlements — 238 115 620 Restructuring charges — (9) — (4) Other, net 2,075 (3,825) 3,755 (2,003) Other expenses, net $ 4,779 $ (3,528) $ 6,809 $ (1,102) |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Kosmos is engaged in a single line of business, which is the exploration, development and production of oil and gas. At June 30, 2023, the Company had operations in four geographic reporting segments: Ghana, Equatorial Guinea, Mauritania/Senegal and the U.S. Gulf of Mexico. To assess performance of the reporting segments, the Chief Operating Decision Maker reviews capital expenditures. Capital expenditures, as defined by the Company, may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with our consolidated financial statements and notes thereto. Financial information for each area is presented below: Ghana Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Three months ended June 30, 2023 Revenues and other income: Oil and gas revenue $ 146,850 $ 34,665 $ — $ 91,740 $ — $ — $ 273,255 Other income, net — 10 — 1,067 42,940 (43,957) 60 Total revenues and other income 146,850 34,675 — 92,807 42,940 (43,957) 273,315 Costs and expenses: Oil and gas production 21,627 14,840 — 27,112 — — 63,579 Exploration expenses 163 1,796 3,605 3,552 1,899 — 11,015 General and administrative 3,284 1,151 1,830 4,673 53,431 (40,925) 23,444 Depletion, depreciation and amortization 42,347 8,557 207 38,449 353 — 89,913 Interest and other financing costs, net(1) 8,408 (699) (29,547) 3,000 43,209 — 24,371 Derivatives, net — — — — 3,031 — 3,031 Other expenses, net 2,903 383 1,516 1,678 1,331 (3,032) 4,779 Total costs and expenses 78,732 26,028 (22,389) 78,464 103,254 (43,957) 220,132 Income (loss) before income taxes 68,118 8,647 22,389 14,343 (60,314) — 53,183 Income tax expense 24,465 3,775 — 225 1,373 — 29,838 Net income (loss) $ 43,653 $ 4,872 $ 22,389 $ 14,118 $ (61,687) $ — $ 23,345 Consolidated capital expenditures, net $ 83,556 $ 17,823 $ 46,689 $ 19,639 $ 1,938 $ — $ 169,645 Ghana Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Six months ended June 30, 2023 Revenues and other income: Oil and gas revenue $ 380,100 $ 104,629 $ — $ 182,766 $ — $ — $ 667,495 Other income, net (425) 10 — 2,086 70,914 (72,898) (313) Total revenues and other income 379,675 104,639 — 184,852 70,914 (72,898) 667,182 Costs and expenses: Oil and gas production 51,236 43,923 — 52,356 — — 147,515 Exploration expenses 637 4,083 8,219 7,177 2,899 — 23,015 General and administrative 7,446 2,662 4,803 9,807 104,600 (76,707) 52,611 Depletion, depreciation and amortization 100,108 22,083 402 75,964 730 — 199,287 Interest and other financing costs, net(1) 28,167 (1,386) (55,649) 6,092 71,715 — 48,939 Derivatives, net — — — — (3,809) — (3,809) Other expenses, net (3,655) (47) 2,721 2,801 1,180 3,809 6,809 Total costs and expenses 183,939 71,318 (39,504) 154,197 177,315 (72,898) 474,367 Income (loss) before income taxes 195,736 33,321 39,504 30,655 (106,401) — 192,815 Income tax expense 69,864 13,360 — 1,065 1,872 — 86,161 Net income (loss) $ 125,872 $ 19,961 $ 39,504 $ 29,590 $ (108,273) $ — $ 106,654 Consolidated capital expenditures, net $ 149,478 $ 24,956 $ 149,751 $ 48,319 $ 3,574 $ — $ 376,078 As of June 30, 2023 Property and equipment, net $ 1,262,286 $ 401,672 $ 1,599,864 $ 797,556 $ 16,443 $ — $ 4,077,821 Total assets $ 3,198,853 $ 1,610,111 $ 2,340,829 $ 3,780,742 $ 20,248,788 $ (26,371,703) $ 4,807,619 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. Ghana(2) Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Three months ended June 30, 2022 Revenues and other income: Oil and gas revenue $ 326,091 $ 111,231 $ — $ 183,046 $ — $ — $ 620,368 Gain on sale of assets — — — 471 — — 471 Other income, net — — — 484 108,192 (108,633) 43 Total revenues and other income 326,091 111,231 — 184,001 108,192 (108,633) 620,882 Costs and expenses: Oil and gas production 37,776 25,839 — 26,574 — — 90,189 Facilities insurance modifications, net (384) — — — — — (384) Exploration expenses 1,903 1,366 74,975 10,520 801 — 89,565 General and administrative 3,444 1,415 2,270 3,433 47,491 (33,429) 24,624 Depletion, depreciation and amortization 62,376 15,050 61 43,753 439 — 121,679 Interest and other financing costs, net(1) 14,260 (607) (15,662) 2,734 28,657 — 29,382 Derivatives, net — — — — 75,204 — 75,204 Other expenses, net 66,235 4,894 (1,930) 4,295 (1,818) (75,204) (3,528) Total costs and expenses 185,610 47,957 59,714 91,309 150,774 (108,633) 426,731 Income (loss) before income taxes 140,481 63,274 (59,714) 92,692 (42,582) — 194,151 Income tax expense 49,798 24,719 — — 2,461 — 76,978 Net income (loss) $ 90,683 $ 38,555 $ (59,714) $ 92,692 $ (45,043) $ — $ 117,173 Consolidated capital expenditures, net $ 56,128 $ 14,074 $ 136,615 $ 39,940 $ 1,534 $ — $ 248,291 Ghana(2) Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico(3) Corporate & Other Eliminations Total (In thousands) Six months ended June 30, 2022 Revenues and other income: Oil and gas revenue $ 735,571 $ 218,969 $ — $ 324,843 $ — $ — $ 1,279,383 Gain on sale of assets — — — 471 — — 471 Other income, net 1 — — 1,028 423,304 (424,238) 95 Total revenues and other income 735,572 218,969 — 326,342 423,304 (424,238) 1,279,949 Costs and expenses: Oil and gas production 113,119 48,464 — 53,309 — — 214,892 Facilities insurance modifications, net 6,752 — — — — — 6,752 Exploration expenses 1,974 2,976 78,089 17,096 1,306 — 101,441 General and administrative 7,413 3,017 4,266 8,377 94,206 (66,862) 50,417 Depletion, depreciation and amortization 163,786 32,988 115 82,947 812 — 280,648 Interest and other financing costs, net(1) 29,286 (1,088) (28,501) 5,458 57,366 — 62,521 Derivatives, net — — — — 357,376 — 357,376 Other expenses, net 316,797 24,017 (1,344) 17,672 (868) (357,376) (1,102) Total costs and expenses 639,127 110,374 52,625 184,859 510,198 (424,238) 1,072,945 Income (loss) before income taxes 96,445 108,595 (52,625) 141,483 (86,894) — 207,004 Income tax expense 34,780 48,049 — 3,102 2,500 — 88,431 Net income (loss) $ 61,665 $ 60,546 $ (52,625) $ 138,381 $ (89,394) $ — $ 118,573 Consolidated capital expenditures, net $ (8,057) $ 24,296 $ 147,416 $ 64,244 $ 2,712 $ — $ 230,611 As of June 30, 2022 Property and equipment, net $ 1,661,177 $ 389,499 $ 1,092,873 $ 870,768 $ 18,010 $ — $ 4,032,327 Total assets $ 3,127,071 $ 1,097,801 $ 1,540,896 $ 3,605,374 $ 18,046,768 $ (22,486,720) $ 4,931,190 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. (2) Includes activity related to the interest pre-empted by Tullow prior to the March 17, 2022 closing date of the Tullow pre-emption transaction. Additionally, cash consideration of $118.2 million is included as reduction in Consolidated capital expenditures for the six months ended June 30, 2022. (3) Includes activity related to our acquisition of an additional interest in the Kodiak Oil Field commencing June 9, 2022, the acquisition date. Additionally, cash consideration paid of $29.0 million is included in consolidated capital expenditures for the three and six months ended June 30, 2022. Six Months Ended June 30, 2023 2022 (In thousands) Consolidated capital expenditures: Consolidated Statements of Cash Flows - Investing activities: Oil and gas assets $ 416,867 $ 320,787 Acquisition of oil and gas properties — 21,205 Proceeds on sale of assets — (118,693) Adjustments: Changes in capital accruals 1,290 7,061 Exploration expense, excluding unsuccessful well costs and leasehold impairments(1) 21,702 27,779 Capitalized interest (63,891) (35,326) Other 110 7,798 Total consolidated capital expenditures, net $ 376,078 $ 230,611 ______________________________________ (1) Unsuccessful well costs and leasehold impairments are included in oil and gas assets when incurred. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
General | General The interim consolidated financial statements included in this report are unaudited and, in the opinion of management, include all adjustments of a normal recurring nature necessary for a fair presentation of the results for the interim periods. 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 interim consolidated financial statements were prepared in accordance with the requirements of the SEC for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by GAAP have been condensed or omitted from these interim consolidated financial statements. These interim consolidated financial statements and the accompanying notes should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2022, included in our annual report on Form 10-K. |
Reclassifications | Reclassifications |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashCash and cash equivalents include demand deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. |
Joint Interest Billings | 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 for shared costs. 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. |
Inventories | InventoriesThe 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 net realizable value.Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or net realizable value. 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. |
Revenue Recognition | Revenue Recognition Our oil and gas revenues are recognized when hydrocarbons have been sold to a purchaser at a fixed or determinable price, title has transferred and collection is probable. Certain revenues are based on provisional price contracts which contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from oil sales at the spot price on the date of sale. The embedded derivative, which is not designated as a hedge, is marked to market through oil and gas revenue each period until the final settlement occurs, which generally is limited to the month of or month after the sale. |
Concentration of Credit Risk | Concentration of Credit Risk Our revenue can be materially affected by current economic conditions and the price of oil and natural gas. However, based on the current demand for crude oil and natural gas and the fact that alternative purchasers are readily available, we believe that the loss of our purchasers and/or marketing agents would not have a long‑term material adverse effect on our financial position or results of operations. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of cash and cash equivalents | June 30, December 31, (In thousands) Cash and cash equivalents $ 85,729 $ 183,405 Restricted cash - long-term 3,416 3,416 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 89,145 $ 186,821 |
Schedule of oil and gas revenue | Oil and gas revenue is composed of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Revenues from contract with customers - Equatorial Guinea $ 37,542 $ 113,608 $ 107,739 $ 222,353 Revenues from contract with customers - Ghana 143,060 325,078 380,579 742,185 Revenues from contract with customers - U.S. Gulf of Mexico 91,740 183,046 182,766 324,843 Provisional oil sales contracts 913 (1,364) (3,589) (9,998) Oil and gas revenue $ 273,255 $ 620,368 $ 667,495 $ 1,279,383 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment is stated at cost and consisted of the following: June 30, December 31, (In thousands) Oil and gas properties: Proved properties $ 7,358,007 $ 6,953,435 Unproved properties 356,288 341,334 Total oil and gas properties 7,714,295 7,294,769 Accumulated depletion (3,640,896) (3,457,332) Oil and gas properties, net 4,073,399 3,837,437 Other property 61,478 60,730 Accumulated depreciation (57,056) (55,520) Other property, net 4,422 5,210 Property and equipment, net $ 4,077,821 $ 3,842,647 |
Suspended Well Costs (Tables)
Suspended Well Costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Schedule of capitalized exploratory well costs | The following table reflects the Company’s capitalized exploratory well costs on drilled wells as of and during the six months ended June 30, 2023. June 30, (In thousands) Beginning balance $ 145,957 Additions to capitalized exploratory well costs pending the determination of proved reserves 5,228 Reclassification due to determination of proved reserves — Capitalized exploratory well costs charged to expense — Ending balance $ 151,185 |
Schedule of aging of capitalized exploratory well costs and number of projects for which exploratory well costs were capitalized for more than one year | 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, December 31, (In thousands, except project counts) Exploratory well costs capitalized for a period of one year or less $ — $ — Exploratory well costs capitalized for a period of one to three years 33,248 32,770 Exploratory well costs capitalized for a period of four to seven years 117,937 113,187 Ending balance $ 151,185 $ 145,957 Number of projects that have exploratory well costs that have been capitalized for a period greater than one year 2 2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 30, December 31, (In thousands) Outstanding debt principal balances: Facility $ 775,000 $ 625,000 7.125% Senior Notes 650,000 650,000 7.750% Senior Notes 400,000 400,000 7.500% Senior Notes 450,000 450,000 GoM Term Loan 137,500 145,000 Total long-term debt 2,412,500 2,270,000 Unamortized deferred financing costs and discounts (38,811) (44,089) Total debt, net 2,373,689 2,225,911 Less: Current maturities of long-term debt (15,000) (30,000) Long-term debt, net $ 2,358,689 $ 2,195,911 |
Schedule of estimated repayments of debt | At June 30, 2023, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year Total 2023(2) 2024 2025 2026 2027 Thereafter (In thousands) Principal debt repayments(1) $ 2,412,500 $ — $ 123,047 $ 334,950 $ 929,282 $ 575,221 $ 450,000 __________________________________ (1) Includes the scheduled maturities for outstanding principal debt balances. The scheduled maturities of debt related to the Facility as of June 30, 2023 are based on our level of borrowings and our estimated future available borrowing base commitment levels in future periods. 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. (2) Represents payments for the period July 1, 2023 through December 31, 2023. |
Schedule of interest and other financing costs, net | Interest and other financing costs, net incurred during the periods is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Interest expense $ 51,965 $ 43,016 $ 100,480 $ 86,178 Amortization—deferred financing costs 2,530 2,591 5,081 5,261 Loss on extinguishment of debt — — — 192 Capitalized interest (33,688) (19,187) (63,891) (35,326) Deferred interest 670 10 353 (1,440) Interest income (4,445) (3,344) (8,586) (4,884) Other, net 7,339 6,296 15,502 12,540 Interest and other financing costs, net $ 24,371 $ 29,382 $ 48,939 $ 62,521 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 prices per Bbl for those contracts as of June 30, 2023. Volumes and weighted average prices are net of any offsetting derivative contracts entered into. Weighted Average Price per Bbl Net Deferred Premium Payable/ Sold Term Type of Contract Index MBbl (Receivable) Put Floor Ceiling 2023: Jul - Dec Three-way collars Dated Brent 3,000 $ 1.34 $ 49.17 $ 71.67 $ 107.58 Jul - Dec Two-way collars Dated Brent 2,500 1.69 — 72.00 112.00 2024: Jan - Dec Three-way collars Dated Brent 2,000 1.35 45.00 70.00 97.50 Jan - Jun Two-way collars Dated Brent 2,000 1.24 — 65.00 85.00 __________________________________ |
Schedule of derivative instruments by balance sheet location | The following tables disclose the Company’s derivative instruments as of June 30, 2023 and December 31, 2022, and gain/(loss) from derivatives during the three and six months ended June 30, 2023 and 2022, respectively: Estimated Fair Value Asset (Liability) Type of Contract Balance Sheet Location June 30, December 31, (In thousands) Derivatives not designated as hedging instruments: Derivative assets: Commodity Derivatives assets—current $ 11,270 $ 7,344 Provisional oil sales Receivables: Oil sales — 1,170 Commodity Derivatives assets—long-term 3,505 1,725 Derivative liabilities: Commodity Derivatives liabilities—current (1,097) (6,773) Commodity Derivatives liabilities—long-term (138) (778) Total derivatives not designated as hedging instruments $ 13,540 $ 2,688 |
Schedule of derivative instruments by location of gain/(loss) | Amount of Gain/(Loss) Amount of Gain/(Loss) Three Months Ended Six Months Ended June 30, June 30, Type of Contract Location of Gain/(Loss) 2023 2022 2023 2022 (In thousands) Derivatives not designated as hedging instruments: Provisional oil sales Oil and gas revenue $ 913 $ (1,364) $ (3,589) $ (9,998) Commodity Derivatives, net (3,031) (75,204) 3,809 (357,376) Total derivatives not designated as hedging instruments $ (2,118) $ (76,568) $ 220 $ (367,374) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of company's assets and liabilities that are measured at fair value on a recurring basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022, for each fair value hierarchy level: Fair Value Measurements Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) June 30, 2023 Assets: Commodity derivatives $ — $ 14,775 $ — $ 14,775 Provisional oil sales — — — — Liabilities: Commodity derivatives — (1,235) — (1,235) Total $ — $ 13,540 $ — $ 13,540 December 31, 2022 Assets: Commodity derivatives $ — $ 9,069 $ — $ 9,069 Provisional oil sales — 1,170 — 1,170 Liabilities: Commodity derivatives — (7,551) — (7,551) Total $ — $ 2,688 $ — $ 2,688 |
Schedule of carrying values and fair values of financial instruments that are not carried at fair value | The following table presents the carrying values and fair values at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7.125% Senior Notes $ 646,294 $ 572,598 $ 645,699 $ 558,201 7.750% Senior Notes 396,297 343,516 395,893 335,592 7.500% Senior Notes 445,921 372,893 445,564 361,958 GoM Term Loan 137,500 137,500 145,000 145,000 Facility 775,000 775,000 625,000 625,000 Total $ 2,401,012 $ 2,201,507 $ 2,257,156 $ 2,025,751 |
Equity-based Compensation (Tabl
Equity-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of outstanding restricted stock units | The following table reflects the outstanding restricted stock units as of June 30, 2023: Weighted- Market / Service Weighted- Service Vesting Average Vesting Average Restricted Stock Grant-Date Restricted Stock Grant-Date Units Fair Value Units Fair Value (In thousands) (In thousands) Outstanding at December 31, 2022 4,916 $ 4.18 12,041 $ 5.61 Granted(1) 2,687 7.60 3,415 12.25 Forfeited(1) (151) 5.46 (64) 8.47 Vested (2,728) 3.86 (2,949) 8.22 Outstanding at June 30, 2023 4,724 5.70 12,443 6.57 __________________________________ (1) The restricted stock units with a combination of market and service vesting criteria may vest between 0% and 200% of the originally granted units depending upon market performance conditions. Awards vesting over or under target shares of 100% results in additional shares granted or forfeited, respectively, in the period the market vesting criteria is determined . |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income (loss) before income taxes | Income before income taxes is composed of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) United States $ (24,529) $ 52,381 $ (49,123) $ 61,664 Foreign 77,712 141,770 241,938 145,340 Income before income taxes $ 53,183 $ 194,151 $ 192,815 $ 207,004 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
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 | 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 per share: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands, except per share data) Numerator: Net income allocable to common stockholders $ 23,345 $ 117,173 $ 106,654 $ 118,573 Denominator: Weighted average number of shares outstanding: Basic 459,984 455,512 459,155 454,811 Restricted stock units(1) 19,032 20,133 19,747 18,660 Diluted 479,016 475,645 478,902 473,471 Net income per share: Basic $ 0.05 $ 0.26 $ 0.23 $ 0.26 Diluted $ 0.05 $ 0.25 $ 0.22 $ 0.25 __________________________________ (1) We excluded restricted stock units of 1.8 million and 0.1 million for the three months ended June 30, 2023 and 2022, respectively, and 1.4 million and 0.1 million for the six months ended June 30, 2023 and 2022, respectively from the computations of diluted net income per share because the effect would have been anti-dilutive. |
Additional Financial Informat_2
Additional Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Additional Financial Information | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: June 30, December 31, (In thousands) Accrued liabilities: Exploration, development and production $ 66,331 $ 80,598 Revenue payable 20,676 26,087 Current asset retirement obligations 9,504 1,732 General and administrative expenses 18,028 32,069 Interest 40,951 44,740 Income taxes 77,199 127,183 Taxes other than income 1,510 1,524 Derivatives 1,242 6,440 Other 8,439 4,833 $ 243,880 $ 325,206 |
Schedule of changes in asset retirement obligations | The following table summarizes the changes in the Company's asset retirement obligations as of and during the six months ended June 30, 2023: June 30, (In thousands) Asset retirement obligations: Beginning asset retirement obligations $ 302,534 Liabilities incurred during period 6,580 Liabilities settled during period (3,342) Revisions in estimated retirement obligations 88 Accretion expense 14,186 Ending asset retirement obligations $ 320,046 |
Schedule of other expenses, net incurred | Other expenses, net incurred during the period is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Loss on disposal of inventory $ 2,704 $ 68 $ 2,939 $ 285 Loss on asset retirement obligations liability settlements — 238 115 620 Restructuring charges — (9) — (4) Other, net 2,075 (3,825) 3,755 (2,003) Other expenses, net $ 4,779 $ (3,528) $ 6,809 $ (1,102) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of business segment information | Financial information for each area is presented below: Ghana Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Three months ended June 30, 2023 Revenues and other income: Oil and gas revenue $ 146,850 $ 34,665 $ — $ 91,740 $ — $ — $ 273,255 Other income, net — 10 — 1,067 42,940 (43,957) 60 Total revenues and other income 146,850 34,675 — 92,807 42,940 (43,957) 273,315 Costs and expenses: Oil and gas production 21,627 14,840 — 27,112 — — 63,579 Exploration expenses 163 1,796 3,605 3,552 1,899 — 11,015 General and administrative 3,284 1,151 1,830 4,673 53,431 (40,925) 23,444 Depletion, depreciation and amortization 42,347 8,557 207 38,449 353 — 89,913 Interest and other financing costs, net(1) 8,408 (699) (29,547) 3,000 43,209 — 24,371 Derivatives, net — — — — 3,031 — 3,031 Other expenses, net 2,903 383 1,516 1,678 1,331 (3,032) 4,779 Total costs and expenses 78,732 26,028 (22,389) 78,464 103,254 (43,957) 220,132 Income (loss) before income taxes 68,118 8,647 22,389 14,343 (60,314) — 53,183 Income tax expense 24,465 3,775 — 225 1,373 — 29,838 Net income (loss) $ 43,653 $ 4,872 $ 22,389 $ 14,118 $ (61,687) $ — $ 23,345 Consolidated capital expenditures, net $ 83,556 $ 17,823 $ 46,689 $ 19,639 $ 1,938 $ — $ 169,645 Ghana Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Six months ended June 30, 2023 Revenues and other income: Oil and gas revenue $ 380,100 $ 104,629 $ — $ 182,766 $ — $ — $ 667,495 Other income, net (425) 10 — 2,086 70,914 (72,898) (313) Total revenues and other income 379,675 104,639 — 184,852 70,914 (72,898) 667,182 Costs and expenses: Oil and gas production 51,236 43,923 — 52,356 — — 147,515 Exploration expenses 637 4,083 8,219 7,177 2,899 — 23,015 General and administrative 7,446 2,662 4,803 9,807 104,600 (76,707) 52,611 Depletion, depreciation and amortization 100,108 22,083 402 75,964 730 — 199,287 Interest and other financing costs, net(1) 28,167 (1,386) (55,649) 6,092 71,715 — 48,939 Derivatives, net — — — — (3,809) — (3,809) Other expenses, net (3,655) (47) 2,721 2,801 1,180 3,809 6,809 Total costs and expenses 183,939 71,318 (39,504) 154,197 177,315 (72,898) 474,367 Income (loss) before income taxes 195,736 33,321 39,504 30,655 (106,401) — 192,815 Income tax expense 69,864 13,360 — 1,065 1,872 — 86,161 Net income (loss) $ 125,872 $ 19,961 $ 39,504 $ 29,590 $ (108,273) $ — $ 106,654 Consolidated capital expenditures, net $ 149,478 $ 24,956 $ 149,751 $ 48,319 $ 3,574 $ — $ 376,078 As of June 30, 2023 Property and equipment, net $ 1,262,286 $ 401,672 $ 1,599,864 $ 797,556 $ 16,443 $ — $ 4,077,821 Total assets $ 3,198,853 $ 1,610,111 $ 2,340,829 $ 3,780,742 $ 20,248,788 $ (26,371,703) $ 4,807,619 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. Ghana(2) Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Three months ended June 30, 2022 Revenues and other income: Oil and gas revenue $ 326,091 $ 111,231 $ — $ 183,046 $ — $ — $ 620,368 Gain on sale of assets — — — 471 — — 471 Other income, net — — — 484 108,192 (108,633) 43 Total revenues and other income 326,091 111,231 — 184,001 108,192 (108,633) 620,882 Costs and expenses: Oil and gas production 37,776 25,839 — 26,574 — — 90,189 Facilities insurance modifications, net (384) — — — — — (384) Exploration expenses 1,903 1,366 74,975 10,520 801 — 89,565 General and administrative 3,444 1,415 2,270 3,433 47,491 (33,429) 24,624 Depletion, depreciation and amortization 62,376 15,050 61 43,753 439 — 121,679 Interest and other financing costs, net(1) 14,260 (607) (15,662) 2,734 28,657 — 29,382 Derivatives, net — — — — 75,204 — 75,204 Other expenses, net 66,235 4,894 (1,930) 4,295 (1,818) (75,204) (3,528) Total costs and expenses 185,610 47,957 59,714 91,309 150,774 (108,633) 426,731 Income (loss) before income taxes 140,481 63,274 (59,714) 92,692 (42,582) — 194,151 Income tax expense 49,798 24,719 — — 2,461 — 76,978 Net income (loss) $ 90,683 $ 38,555 $ (59,714) $ 92,692 $ (45,043) $ — $ 117,173 Consolidated capital expenditures, net $ 56,128 $ 14,074 $ 136,615 $ 39,940 $ 1,534 $ — $ 248,291 Ghana(2) Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico(3) Corporate & Other Eliminations Total (In thousands) Six months ended June 30, 2022 Revenues and other income: Oil and gas revenue $ 735,571 $ 218,969 $ — $ 324,843 $ — $ — $ 1,279,383 Gain on sale of assets — — — 471 — — 471 Other income, net 1 — — 1,028 423,304 (424,238) 95 Total revenues and other income 735,572 218,969 — 326,342 423,304 (424,238) 1,279,949 Costs and expenses: Oil and gas production 113,119 48,464 — 53,309 — — 214,892 Facilities insurance modifications, net 6,752 — — — — — 6,752 Exploration expenses 1,974 2,976 78,089 17,096 1,306 — 101,441 General and administrative 7,413 3,017 4,266 8,377 94,206 (66,862) 50,417 Depletion, depreciation and amortization 163,786 32,988 115 82,947 812 — 280,648 Interest and other financing costs, net(1) 29,286 (1,088) (28,501) 5,458 57,366 — 62,521 Derivatives, net — — — — 357,376 — 357,376 Other expenses, net 316,797 24,017 (1,344) 17,672 (868) (357,376) (1,102) Total costs and expenses 639,127 110,374 52,625 184,859 510,198 (424,238) 1,072,945 Income (loss) before income taxes 96,445 108,595 (52,625) 141,483 (86,894) — 207,004 Income tax expense 34,780 48,049 — 3,102 2,500 — 88,431 Net income (loss) $ 61,665 $ 60,546 $ (52,625) $ 138,381 $ (89,394) $ — $ 118,573 Consolidated capital expenditures, net $ (8,057) $ 24,296 $ 147,416 $ 64,244 $ 2,712 $ — $ 230,611 As of June 30, 2022 Property and equipment, net $ 1,661,177 $ 389,499 $ 1,092,873 $ 870,768 $ 18,010 $ — $ 4,032,327 Total assets $ 3,127,071 $ 1,097,801 $ 1,540,896 $ 3,605,374 $ 18,046,768 $ (22,486,720) $ 4,931,190 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. (2) Includes activity related to the interest pre-empted by Tullow prior to the March 17, 2022 closing date of the Tullow pre-emption transaction. Additionally, cash consideration of $118.2 million is included as reduction in Consolidated capital expenditures for the six months ended June 30, 2022. (3) Includes activity related to our acquisition of an additional interest in the Kodiak Oil Field commencing June 9, 2022, the acquisition date. Additionally, cash consideration paid of $29.0 million is included in consolidated capital expenditures for the three and six months ended June 30, 2022. Six Months Ended June 30, 2023 2022 (In thousands) Consolidated capital expenditures: Consolidated Statements of Cash Flows - Investing activities: Oil and gas assets $ 416,867 $ 320,787 Acquisition of oil and gas properties — 21,205 Proceeds on sale of assets — (118,693) Adjustments: Changes in capital accruals 1,290 7,061 Exploration expense, excluding unsuccessful well costs and leasehold impairments(1) 21,702 27,779 Capitalized interest (63,891) (35,326) Other 110 7,798 Total consolidated capital expenditures, net $ 376,078 $ 230,611 ______________________________________ (1) Unsuccessful well costs and leasehold impairments are included in oil and gas assets when incurred. |
Organization (Details)
Organization (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable geographic areas | 4 |
Accounting Policies - Cash, Cas
Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 85,729 | $ 183,405 | ||
Restricted cash - long-term | 3,416 | 3,416 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 89,145 | $ 186,821 | $ 223,659 | $ 174,896 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Materials and supplies inventory | $ 143.4 | $ 125.3 |
Hydrocarbons inventory | $ 48 | $ 8.2 |
Accounting Policies - Summary o
Accounting Policies - Summary of Oil and Gas Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Provisional oil sales contracts | $ (2,118) | $ (76,568) | $ 220 | $ (367,374) |
Oil and gas revenue | 273,255 | 620,368 | 667,495 | 1,279,383 |
Oil and gas revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Provisional oil sales contracts | 913 | (1,364) | (3,589) | (9,998) |
Oil and gas revenue | 273,255 | 620,368 | 667,495 | 1,279,383 |
Equatorial Guinea | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 37,542 | 113,608 | 107,739 | 222,353 |
Ghana | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 143,060 | 325,078 | 380,579 | 742,185 |
U.S. Gulf of Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 91,740 | $ 183,046 | $ 182,766 | $ 324,843 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) | 1 Months Ended | |||
Feb. 28, 2023 | Mar. 31, 2023 | Feb. 28, 2023 a | Feb. 28, 2023 km² | |
Block EG-01 Offshore Equatorial Guinea | Petroleum Contract | ||||
Property Plant and Equipment Acquisitions and Divestitures [Line Items] | ||||
Participation interest | 24% | |||
Area of block | 59,400 | 240 | ||
First exploration period | 3 years | |||
Block EG-01 Offshore Equatorial Guinea | Petroleum Contract | Panoro Energy ASA | ||||
Property Plant and Equipment Acquisitions and Divestitures [Line Items] | ||||
Participation interest | 56% | |||
Block EG-01 Offshore Equatorial Guinea | Petroleum Contract | Guinea Equatorial De Petroleos | ||||
Property Plant and Equipment Acquisitions and Divestitures [Line Items] | ||||
Carried participating interest | 20% | |||
Participating interest following conversion from carried participation interest | 20% | |||
Block S Offshore Equatorial Guinea | Farm Out Agreement | ||||
Property Plant and Equipment Acquisitions and Divestitures [Line Items] | ||||
Participation interest | 34% | |||
Block S Offshore Equatorial Guinea | Farm Out Agreement | Panoro Energy ASA | ||||
Property Plant and Equipment Acquisitions and Divestitures [Line Items] | ||||
Participation interest | 6% |
Long-term Receivables (Details)
Long-term Receivables (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2019 USD ($) agreement | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Oil and Gas Joint Interest Billing Receivables [Line Items] | ||||||
Long-term receivables | $ 278,744 | $ 278,744 | $ 235,696 | |||
National Oil Companies of Mauritania And Senegal | Carry Advance Agreements | ||||||
Oil and Gas Joint Interest Billing Receivables [Line Items] | ||||||
Number of agreements | agreement | 2 | |||||
Share of development costs to be financed, up to | $ 240,000 | |||||
Long-term receivables | 259,000 | 259,000 | $ 218,400 | |||
Interest income, long-term notes receivable | $ 3,800 | $ 2,300 | $ 7,300 | $ 4,300 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Oil and gas properties: | |||||
Proved properties | $ 7,358,007 | $ 7,358,007 | $ 6,953,435 | ||
Unproved properties | 356,288 | 356,288 | 341,334 | ||
Total oil and gas properties | 7,714,295 | 7,714,295 | 7,294,769 | ||
Accumulated depletion | (3,640,896) | (3,640,896) | (3,457,332) | ||
Oil and gas properties, net | 4,073,399 | 4,073,399 | 3,837,437 | ||
Other property | 61,478 | 61,478 | 60,730 | ||
Accumulated depreciation | (57,056) | (57,056) | (55,520) | ||
Other property, net | 4,422 | 4,422 | 5,210 | ||
Property and equipment, net | 4,077,821 | $ 4,032,327 | 4,077,821 | $ 4,032,327 | $ 3,842,647 |
Depletion expense | $ 82,000 | $ 114,700 | $ 183,600 | $ 266,400 |
Suspended Well Costs - Summary
Suspended Well Costs - Summary of Suspended Well Costs (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) project | Dec. 31, 2022 USD ($) project | |
Reconciliation of capitalized exploratory well costs on completed wells | ||
Beginning balance | $ 145,957 | |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 5,228 | |
Reclassification due to determination of proved reserves | 0 | |
Capitalized exploratory well costs charged to expense | 0 | |
Ending balance | 151,185 | |
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 | 0 | $ 0 |
Exploratory well costs capitalized for a period of one to three years | 33,248 | 32,770 |
Exploratory well costs capitalized for a period of four to seven years | 117,937 | 113,187 |
Ending balance | $ 151,185 | $ 145,957 |
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | project | 2 | 2 |
Suspended Well Costs - Narrativ
Suspended Well Costs - Narrative (Details) - Yakaar and Teranga Discoveries - km | 1 Months Ended | |
Jul. 31, 2021 | Sep. 30, 2019 | |
Capitalized Contract Cost [Line Items] | ||
Distance from Yakaar-2 well to Yakaar-1 exploration well | 9 | |
Additional term from exploration license extension | 3 years |
Debt - Schedule of Instruments
Debt - Schedule of Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 |
Line of Credit Facility [Line Items] | |||||
Outstanding debt principal | $ 2,412,500 | $ 2,270,000 | |||
Unamortized deferred financing costs and discounts | (38,811) | (44,089) | |||
Total debt, net | 2,373,689 | 2,225,911 | |||
Less: Current maturities of long-term debt | (15,000) | (30,000) | |||
Long-term debt, net | 2,358,689 | 2,195,911 | |||
Facility | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding debt principal | 775,000 | 625,000 | |||
7.125% Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (as a percent) | 7.125% | ||||
Outstanding debt principal | 650,000 | 650,000 | |||
7.750% Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (as a percent) | 7.75% | ||||
Outstanding debt principal | 400,000 | 400,000 | |||
7.500% Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (as a percent) | 7.50% | ||||
Outstanding debt principal | 450,000 | 450,000 | |||
GoM Term Loan | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding debt principal | 137,500 | $ 145,000 | |||
Less: Current maturities of long-term debt | $ (15,000) |
Debt - Facility (Details)
Debt - Facility (Details) - Facility - Revolving Credit Facility - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Apr. 19, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | |||
Amount outstanding | $ 775 | ||
Undrawn availability | $ 370.1 | ||
Maximum borrowing capacity | $ 1,150 | ||
Reduction of borrowing capacity | $ 100 | ||
Interval period for payment of interest (in months) | 6 months | ||
Commitment fees percentage | 30% | ||
Unavailable capacity commitment fee percentage | 20% | ||
Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Applicable margin (as a percent) | 3.75% | ||
Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Applicable margin (as a percent) | 5% |
Debt - Corporate Revolver (Deta
Debt - Corporate Revolver (Details) - Revolving Credit Facility - Corporate Revolver $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Amount outstanding | $ 0 |
Undrawn availability | 250 |
Deferred financing costs | $ 6.1 |
Interest payment interval period maximum | 6 months |
Commitment fee percentage | 30% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Applicable margin (as a percent) | 7% |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 | |
7.125% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 650 | ||
Interest rate (as a percent) | 7.125% | ||
Proceeds from debt, net of issuance costs | $ 640 | ||
7.750% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 400 | ||
Interest rate (as a percent) | 7.75% | ||
Proceeds from debt, net of issuance costs | $ 395 | ||
7.500% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 450 | ||
Interest rate (as a percent) | 7.50% | ||
Proceeds from debt, net of issuance costs | $ 444.4 |
Debt - GoM Term Loan (Details)
Debt - GoM Term Loan (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Current maturities of long-term debt | $ 15,000 | $ 30,000 | |
Outstanding debt principal | $ 2,412,500 | 2,270,000 | |
GoM Term Loan | Secured Debt | |||
Debt Instrument [Line Items] | |||
Debt term (in years) | 5 years | ||
Debt, face amount | $ 200,000 | ||
Net proceeds from issuance of secured debt | 197,700 | ||
Additional incremental commitments | $ 100,000 | ||
Applicable margin (as a percent) | 5.90% | ||
Current maturities of long-term debt | $ 15,000 | ||
Outstanding debt principal | $ 137,500 | $ 145,000 | |
GoM Term Loan | Secured Debt | Federal Funds Rate | |||
Debt Instrument [Line Items] | |||
Applicable margin (as a percent) | 0.35% |
Debt - Principal Debt Repayment
Debt - Principal Debt Repayments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Scheduled maturities of debt during the five year period and thereafter | ||
Total | $ 2,412,500 | $ 2,270,000 |
2023 | 0 | |
2024 | 123,047 | |
2025 | 334,950 | |
2026 | 929,282 | |
2027 | 575,221 | |
Thereafter | $ 450,000 |
Debt - Debt Interest (Details)
Debt - Debt Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 51,965 | $ 43,016 | $ 100,480 | $ 86,178 |
Amortization—deferred financing costs | 2,530 | 2,591 | 5,081 | 5,261 |
Loss on extinguishment of debt | 0 | 0 | 0 | 192 |
Capitalized interest | (33,688) | (19,187) | (63,891) | (35,326) |
Deferred interest | 670 | 10 | 353 | (1,440) |
Interest income | (4,445) | (3,344) | (8,586) | (4,884) |
Other, net | 7,339 | 6,296 | 15,502 | 12,540 |
Interest and other financing costs, net | $ 24,371 | $ 29,382 | $ 48,939 | $ 62,521 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Oil Derivative Contracts (Details) - Dated Brent | 1 Months Ended | 6 Months Ended |
Jul. 31, 2023 $ / bbl | Jun. 30, 2023 $ / bbl MBbls | |
Term July 2023 To December 2023 | Three-way collars | ||
Derivative Financial Instruments | ||
Volume | MBbls | 3,000 | |
Weighted Average Price per Bbl | ||
Net deferred premium payable/(receivable) (usd per bbl) | 1.34 | |
Sold Put (usd per bbl) | 49.17 | |
Floor (usd per bbl) | 71.67 | |
Ceiling (usd per bbl) | 107.58 | |
Term July 2023 To December 2023 | Two-way collars | ||
Derivative Financial Instruments | ||
Volume | MBbls | 2,500 | |
Weighted Average Price per Bbl | ||
Net deferred premium payable/(receivable) (usd per bbl) | 1.69 | |
Sold Put (usd per bbl) | 0 | |
Floor (usd per bbl) | 72 | |
Ceiling (usd per bbl) | 112 | |
Term January 2024 To December 2024 | Three-way collars | ||
Derivative Financial Instruments | ||
Volume | MBbls | 2,000 | |
Weighted Average Price per Bbl | ||
Net deferred premium payable/(receivable) (usd per bbl) | 1.35 | |
Sold Put (usd per bbl) | 45 | |
Floor (usd per bbl) | 70 | |
Ceiling (usd per bbl) | 97.50 | |
Term January 2024 To December 2024 | Three-way collars | Subsequent Event | ||
Weighted Average Price per Bbl | ||
Net deferred premium payable/(receivable) (usd per bbl) | 2 | |
Sold Put (usd per bbl) | 45 | |
Floor (usd per bbl) | 70 | |
Ceiling (usd per bbl) | 95 | |
Term January 2024 To June 2024 | Two-way collars | ||
Derivative Financial Instruments | ||
Volume | MBbls | 2,000 | |
Weighted Average Price per Bbl | ||
Net deferred premium payable/(receivable) (usd per bbl) | 1.24 | |
Sold Put (usd per bbl) | 0 | |
Floor (usd per bbl) | 65 | |
Ceiling (usd per bbl) | 85 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Derivative Instruments and Gain/(Loss) from Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | $ 11,270 | $ 7,344 |
Derivatives assets—long-term | 3,505 | 1,725 |
Derivatives liabilities—current | (1,097) | (6,773) |
Derivatives liabilities—long-term | (138) | (778) |
Derivatives not designated as hedging instruments | ||
Derivative instruments, Balance Sheet Location | ||
Total derivatives not designated as hedging instruments | 13,540 | 2,688 |
Derivatives not designated as hedging instruments | Commodity | ||
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | 11,270 | 7,344 |
Derivatives assets—long-term | 3,505 | 1,725 |
Derivatives liabilities—current | (1,097) | (6,773) |
Derivatives liabilities—long-term | (138) | (778) |
Derivatives not designated as hedging instruments | Provisional oil sales | ||
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | $ 0 | $ 1,170 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Location of Gain (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative instruments, Location of Gain/(Loss) | ||||
Amount of Gain/(Loss) | $ (2,118) | $ (76,568) | $ 220 | $ (367,374) |
Provisional oil sales | Oil and gas revenue | ||||
Derivative instruments, Location of Gain/(Loss) | ||||
Amount of Gain/(Loss) | 913 | (1,364) | (3,589) | (9,998) |
Commodity | Derivatives, net | ||||
Derivative instruments, Location of Gain/(Loss) | ||||
Amount of Gain/(Loss) | $ (3,031) | $ (75,204) | $ 3,809 | $ (357,376) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company's Assets and Liabilities (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Liabilities: | ||
Total derivatives not designated as hedging instruments | $ 13,540 | $ 2,688 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Liabilities: | ||
Total derivatives not designated as hedging instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Total derivatives not designated as hedging instruments | 13,540 | 2,688 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Total derivatives not designated as hedging instruments | 0 | 0 |
Commodity derivatives | ||
Assets: | ||
Derivative asset, fair value | 14,775 | 9,069 |
Liabilities: | ||
Derivative liability, fair value | (1,235) | (7,551) |
Commodity derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Liabilities: | ||
Derivative liability, fair value | 0 | 0 |
Commodity derivatives | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivative asset, fair value | 14,775 | 9,069 |
Liabilities: | ||
Derivative liability, fair value | (1,235) | (7,551) |
Commodity derivatives | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Liabilities: | ||
Derivative liability, fair value | 0 | 0 |
Provisional oil sales | ||
Assets: | ||
Derivative asset, fair value | 0 | 1,170 |
Provisional oil sales | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Provisional oil sales | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivative asset, fair value | 0 | 1,170 |
Provisional oil sales | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivative asset, fair value | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 |
Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 2,401,012 | $ 2,257,156 | |||
Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 2,201,507 | 2,025,751 | |||
7.125% Senior Notes | Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.125% | ||||
7.125% Senior Notes | Senior Notes | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 646,294 | 645,699 | |||
7.125% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 572,598 | 558,201 | |||
7.750% Senior Notes | Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.75% | ||||
7.750% Senior Notes | Senior Notes | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 396,297 | 395,893 | |||
7.750% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 343,516 | 335,592 | |||
7.500% Senior Notes | Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.50% | ||||
7.500% Senior Notes | Senior Notes | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 445,921 | 445,564 | |||
7.500% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 372,893 | 361,958 | |||
GoM Term Loan | Secured Debt | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 137,500 | 145,000 | |||
GoM Term Loan | Secured Debt | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 137,500 | 145,000 | |||
Facility | Revolving Credit Facility | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 775,000 | 625,000 | |||
Facility | Revolving Credit Facility | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 775,000 | $ 625,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 | |
Fair Value Measurements | |||||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 | |||
7.125% Senior Notes | Senior Notes | |||||||
Fair Value Measurements | |||||||
Interest rate (as a percent) | 7.125% | ||||||
7.750% Senior Notes | Senior Notes | |||||||
Fair Value Measurements | |||||||
Interest rate (as a percent) | 7.75% | ||||||
7.500% Senior Notes | Senior Notes | |||||||
Fair Value Measurements | |||||||
Interest rate (as a percent) | 7.50% |
Equity-based Compensation - Nar
Equity-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares, authorized shares (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||
LTIP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense recognized | $ 11.1 | $ 8.7 | $ 21.2 | $ 17.1 | |
Tax benefit | 1.9 | 1.5 | 3.7 | 2.9 | |
Net tax (windfall) shortfall related to equity-based compensation | (0.5) | (0.5) | (3.1) | 0.7 | |
Fair value of awards vested | $ 3.8 | $ 4 | $ 44.8 | $ 21.3 | |
Vesting period (in years) | 3 years | ||||
Common shares, authorized shares (in shares) | 17,000,000 | 17,000,000 | |||
Number of shares remaining available for grant (in shares) | 18,500,000 | 18,500,000 | |||
LTIP | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense not yet recognized | $ 49.7 | $ 49.7 | |||
Weighted average period over which compensation expense is to be recognized (in years) | 1 year 11 months 1 day | ||||
LTIP | Market/Service Vesting Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value of awards granted (in dollars per share) | $ 12.25 | ||||
LTIP | Market/Service Vesting Restricted Stock Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage of the awards granted (up to) | 0% | ||||
Grant date fair value of awards granted (in dollars per share) | $ 1.06 | ||||
Expected volatility | 50% | ||||
Risk-free interest rate (as a percent) | 0.20% | ||||
LTIP | Market/Service Vesting Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage of the awards granted (up to) | 200% | ||||
Grant date fair value of awards granted (in dollars per share) | $ 12.33 | ||||
Expected volatility | 105% | ||||
Risk-free interest rate (as a percent) | 3.70% |
Equity-based Compensation - Sch
Equity-based Compensation - Schedule of Awards (Details) - LTIP shares in Thousands | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Service Vesting Restricted Stock Units | |
Outstanding unvested awards activity | |
Outstanding at the beginning of the period (in shares) | shares | 4,916 |
Granted (in shares) | shares | 2,687 |
Forfeited (in shares) | shares | (151) |
Vested (in shares) | shares | (2,728) |
Outstanding at the end of the period (in shares) | shares | 4,724 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ 4.18 |
Granted (in dollars per share) | 7.60 |
Forfeited (in dollars per share) | 5.46 |
Vested (in dollars per share) | 3.86 |
Outstanding at the end of the period (in dollars per share) | $ 5.70 |
Market/Service Vesting Restricted Stock Units | |
Outstanding unvested awards activity | |
Outstanding at the beginning of the period (in shares) | shares | 12,041 |
Granted (in shares) | shares | 3,415 |
Forfeited (in shares) | shares | (64) |
Vested (in shares) | shares | (2,949) |
Outstanding at the end of the period (in shares) | shares | 12,443 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ 5.61 |
Granted (in dollars per share) | 12.25 |
Forfeited (in dollars per share) | 8.47 |
Vested (in dollars per share) | 8.22 |
Outstanding at the end of the period (in dollars per share) | 6.57 |
Market/Service Vesting Restricted Stock Units | Minimum | |
Weighted-Average Grant-Date Fair Value | |
Granted (in dollars per share) | $ 1.06 |
Vesting percentage of the awards granted (as a percent) | 0% |
Market/Service Vesting Restricted Stock Units | Maximum | |
Weighted-Average Grant-Date Fair Value | |
Granted (in dollars per share) | $ 12.33 |
Vesting percentage of the awards granted (as a percent) | 200% |
Percent threshold target for grants and forfeitures (as a percent) | 100% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes | ||||
Effective tax rate (as a percent) | 56% | 40% | 45% | 43% |
Statutory tax rate (as a percent) | 21% | 21% | ||
Ghanaian and Equatorial Guinean | ||||
Income Taxes | ||||
Statutory tax rate (as a percent) | 35% | 35% | ||
Foreign | ||||
Income Taxes | ||||
Statutory tax rate (as a percent) | 0% | 0% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes | ||||
Income before income taxes | $ 53,183 | $ 194,151 | $ 192,815 | $ 207,004 |
United States | ||||
Income Taxes | ||||
Income before income taxes | (24,529) | 52,381 | (49,123) | 61,664 |
Foreign | ||||
Income Taxes | ||||
Income before income taxes | $ 77,712 | $ 141,770 | $ 241,938 | $ 145,340 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||||
Net income allocable to common stockholders | $ 23,345 | $ 83,309 | $ 117,173 | $ 1,400 | $ 106,654 | $ 118,573 |
Weighted average number of shares outstanding: | ||||||
Basic (in shares) | 459,984 | 455,512 | 459,155 | 454,811 | ||
Restricted stock units (in shares) | 19,032 | 20,133 | 19,747 | 18,660 | ||
Diluted (in shares) | 479,016 | 475,645 | 478,902 | 473,471 | ||
Net income per share: | ||||||
Basic (in dollars per share) | $ 0.05 | $ 0.26 | $ 0.23 | $ 0.26 | ||
Diluted (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.22 | $ 0.25 | ||
Outstanding restricted stock units excluded from the computations of diluted net income per share (in shares) | 1,800 | 100 | 1,400 | 100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) well | Dec. 31, 2022 USD ($) | |
Greater Tortue FPSO | BP Operator | ||
Operating Leased Assets [Line Items] | ||
Contract liability, noncurrent | $ 200.2 | |
Equatorial Guinea | ||
Operating Leased Assets [Line Items] | ||
Number of development wells | well | 3 | |
Number of exploration wells | well | 1 | |
U.S. Gulf of Mexico | Bureau of Ocean Energy Management | Surety Bond | ||
Operating Leased Assets [Line Items] | ||
Required performance bonds | $ 195.5 | $ 195.5 |
U.S. Gulf of Mexico | Third Party | Surety Bond | ||
Operating Leased Assets [Line Items] | ||
Required performance bonds | $ 9.7 | $ 9.7 |
Additional Financial Informat_3
Additional Financial Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accrued liabilities: | ||
Exploration, development and production | $ 66,331 | $ 80,598 |
Revenue payable | 20,676 | 26,087 |
Current asset retirement obligations | 9,504 | 1,732 |
General and administrative expenses | 18,028 | 32,069 |
Interest | 40,951 | 44,740 |
Income taxes | 77,199 | 127,183 |
Taxes other than income | 1,510 | 1,524 |
Derivatives | 1,242 | 6,440 |
Other | 8,439 | 4,833 |
Accrued liabilities | $ 243,880 | $ 325,206 |
Additional Financial Informat_4
Additional Financial Information - Schedule of Changes in Asset Retirement Obligations (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Asset retirement obligations: | |
Beginning asset retirement obligations | $ 302,534 |
Liabilities incurred during period | 6,580 |
Liabilities settled during period | (3,342) |
Revisions in estimated retirement obligations | 88 |
Accretion expense | 14,186 |
Ending asset retirement obligations | $ 320,046 |
Additional Financial Informat_5
Additional Financial Information - Other Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Additional Financial Information | ||||
Loss on disposal of inventory | $ 2,704 | $ 68 | $ 2,939 | $ 285 |
Loss on asset retirement obligations liability settlements | 0 | 238 | 115 | 620 |
Restructuring charges | 0 | (9) | 0 | (4) |
Other, net | 2,075 | (3,825) | 3,755 | (2,003) |
Other expenses, net | $ 4,779 | $ (3,528) | $ 6,809 | $ (1,102) |
Business Segment Information -
Business Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Business Segment Information _2
Business Segment Information - Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | $ 273,255 | $ 620,368 | $ 667,495 | $ 1,279,383 | |||
Gain on sale of assets | 0 | 471 | 0 | 471 | |||
Other income, net | 60 | 43 | (313) | 95 | |||
Total revenues and other income | 273,315 | 620,882 | 667,182 | 1,279,949 | |||
Oil and gas production | 63,579 | 90,189 | 147,515 | 214,892 | |||
Facilities insurance modifications, net | 0 | (384) | 0 | 6,752 | |||
Exploration expenses | 11,015 | 89,565 | 23,015 | 101,441 | |||
General and administrative | 23,444 | 24,624 | 52,611 | 50,417 | |||
Depletion, depreciation and amortization | 89,913 | 121,679 | 199,287 | 280,648 | |||
Interest and other financing costs, net | 24,371 | 29,382 | 48,939 | 62,521 | |||
Derivatives, net | 3,031 | 75,204 | (3,809) | 357,376 | |||
Other expenses, net | 4,779 | (3,528) | 6,809 | (1,102) | |||
Total costs and expenses | 220,132 | 426,731 | 474,367 | 1,072,945 | |||
Income before income taxes | 53,183 | 194,151 | 192,815 | 207,004 | |||
Income tax expense | 29,838 | 76,978 | 86,161 | 88,431 | |||
Net income | 23,345 | $ 83,309 | 117,173 | $ 1,400 | 106,654 | 118,573 | |
Consolidated capital expenditures, net | 169,645 | 248,291 | 376,078 | 230,611 | |||
Property and equipment, net | 4,077,821 | 4,032,327 | 4,077,821 | 4,032,327 | $ 3,842,647 | ||
Total assets | 4,807,619 | 4,931,190 | 4,807,619 | 4,931,190 | $ 4,579,988 | ||
Proceeds on sale of assets | 0 | 118,693 | |||||
Jubilee Unit Area And Ten Fields | Tullow | |||||||
Segment Reporting Information [Line Items] | |||||||
Proceeds on sale of assets | 118,200 | ||||||
Kodiak Field | Marubeni | |||||||
Segment Reporting Information [Line Items] | |||||||
Business combination, consideration transferred | 29,000 | 29,000 | |||||
Operating Segments | Ghana | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 146,850 | 326,091 | 380,100 | 735,571 | |||
Gain on sale of assets | 0 | 0 | |||||
Other income, net | 0 | 0 | (425) | 1 | |||
Total revenues and other income | 146,850 | 326,091 | 379,675 | 735,572 | |||
Oil and gas production | 21,627 | 37,776 | 51,236 | 113,119 | |||
Facilities insurance modifications, net | (384) | 6,752 | |||||
Exploration expenses | 163 | 1,903 | 637 | 1,974 | |||
General and administrative | 3,284 | 3,444 | 7,446 | 7,413 | |||
Depletion, depreciation and amortization | 42,347 | 62,376 | 100,108 | 163,786 | |||
Interest and other financing costs, net | 8,408 | 14,260 | 28,167 | 29,286 | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | 2,903 | 66,235 | (3,655) | 316,797 | |||
Total costs and expenses | 78,732 | 185,610 | 183,939 | 639,127 | |||
Income before income taxes | 68,118 | 140,481 | 195,736 | 96,445 | |||
Income tax expense | 24,465 | 49,798 | 69,864 | 34,780 | |||
Net income | 43,653 | 90,683 | 125,872 | 61,665 | |||
Consolidated capital expenditures, net | 83,556 | 56,128 | 149,478 | (8,057) | |||
Property and equipment, net | 1,262,286 | 1,661,177 | 1,262,286 | 1,661,177 | |||
Total assets | 3,198,853 | 3,127,071 | 3,198,853 | 3,127,071 | |||
Operating Segments | Equatorial Guinea | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 34,665 | 111,231 | 104,629 | 218,969 | |||
Gain on sale of assets | 0 | 0 | |||||
Other income, net | 10 | 0 | 10 | 0 | |||
Total revenues and other income | 34,675 | 111,231 | 104,639 | 218,969 | |||
Oil and gas production | 14,840 | 25,839 | 43,923 | 48,464 | |||
Facilities insurance modifications, net | 0 | 0 | |||||
Exploration expenses | 1,796 | 1,366 | 4,083 | 2,976 | |||
General and administrative | 1,151 | 1,415 | 2,662 | 3,017 | |||
Depletion, depreciation and amortization | 8,557 | 15,050 | 22,083 | 32,988 | |||
Interest and other financing costs, net | (699) | (607) | (1,386) | (1,088) | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | 383 | 4,894 | (47) | 24,017 | |||
Total costs and expenses | 26,028 | 47,957 | 71,318 | 110,374 | |||
Income before income taxes | 8,647 | 63,274 | 33,321 | 108,595 | |||
Income tax expense | 3,775 | 24,719 | 13,360 | 48,049 | |||
Net income | 4,872 | 38,555 | 19,961 | 60,546 | |||
Consolidated capital expenditures, net | 17,823 | 14,074 | 24,956 | 24,296 | |||
Property and equipment, net | 401,672 | 389,499 | 401,672 | 389,499 | |||
Total assets | 1,610,111 | 1,097,801 | 1,610,111 | 1,097,801 | |||
Operating Segments | Mauritania/Senegal | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 0 | 0 | 0 | 0 | |||
Gain on sale of assets | 0 | 0 | |||||
Other income, net | 0 | 0 | 0 | 0 | |||
Total revenues and other income | 0 | 0 | 0 | 0 | |||
Oil and gas production | 0 | 0 | 0 | 0 | |||
Facilities insurance modifications, net | 0 | 0 | |||||
Exploration expenses | 3,605 | 74,975 | 8,219 | 78,089 | |||
General and administrative | 1,830 | 2,270 | 4,803 | 4,266 | |||
Depletion, depreciation and amortization | 207 | 61 | 402 | 115 | |||
Interest and other financing costs, net | (29,547) | (15,662) | (55,649) | (28,501) | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | 1,516 | (1,930) | 2,721 | (1,344) | |||
Total costs and expenses | (22,389) | 59,714 | (39,504) | 52,625 | |||
Income before income taxes | 22,389 | (59,714) | 39,504 | (52,625) | |||
Income tax expense | 0 | 0 | 0 | 0 | |||
Net income | 22,389 | (59,714) | 39,504 | (52,625) | |||
Consolidated capital expenditures, net | 46,689 | 136,615 | 149,751 | 147,416 | |||
Property and equipment, net | 1,599,864 | 1,092,873 | 1,599,864 | 1,092,873 | |||
Total assets | 2,340,829 | 1,540,896 | 2,340,829 | 1,540,896 | |||
Operating Segments | U.S. Gulf of Mexico | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 91,740 | 183,046 | 182,766 | 324,843 | |||
Gain on sale of assets | 471 | 471 | |||||
Other income, net | 1,067 | 484 | 2,086 | 1,028 | |||
Total revenues and other income | 92,807 | 184,001 | 184,852 | 326,342 | |||
Oil and gas production | 27,112 | 26,574 | 52,356 | 53,309 | |||
Facilities insurance modifications, net | 0 | 0 | |||||
Exploration expenses | 3,552 | 10,520 | 7,177 | 17,096 | |||
General and administrative | 4,673 | 3,433 | 9,807 | 8,377 | |||
Depletion, depreciation and amortization | 38,449 | 43,753 | 75,964 | 82,947 | |||
Interest and other financing costs, net | 3,000 | 2,734 | 6,092 | 5,458 | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | 1,678 | 4,295 | 2,801 | 17,672 | |||
Total costs and expenses | 78,464 | 91,309 | 154,197 | 184,859 | |||
Income before income taxes | 14,343 | 92,692 | 30,655 | 141,483 | |||
Income tax expense | 225 | 0 | 1,065 | 3,102 | |||
Net income | 14,118 | 92,692 | 29,590 | 138,381 | |||
Consolidated capital expenditures, net | 19,639 | 39,940 | 48,319 | 64,244 | |||
Property and equipment, net | 797,556 | 870,768 | 797,556 | 870,768 | |||
Total assets | 3,780,742 | 3,605,374 | 3,780,742 | 3,605,374 | |||
Corporate & Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 0 | 0 | 0 | 0 | |||
Gain on sale of assets | 0 | 0 | |||||
Other income, net | 42,940 | 108,192 | 70,914 | 423,304 | |||
Total revenues and other income | 42,940 | 108,192 | 70,914 | 423,304 | |||
Oil and gas production | 0 | 0 | 0 | 0 | |||
Facilities insurance modifications, net | 0 | 0 | |||||
Exploration expenses | 1,899 | 801 | 2,899 | 1,306 | |||
General and administrative | 53,431 | 47,491 | 104,600 | 94,206 | |||
Depletion, depreciation and amortization | 353 | 439 | 730 | 812 | |||
Interest and other financing costs, net | 43,209 | 28,657 | 71,715 | 57,366 | |||
Derivatives, net | 3,031 | 75,204 | (3,809) | 357,376 | |||
Other expenses, net | 1,331 | (1,818) | 1,180 | (868) | |||
Total costs and expenses | 103,254 | 150,774 | 177,315 | 510,198 | |||
Income before income taxes | (60,314) | (42,582) | (106,401) | (86,894) | |||
Income tax expense | 1,373 | 2,461 | 1,872 | 2,500 | |||
Net income | (61,687) | (45,043) | (108,273) | (89,394) | |||
Consolidated capital expenditures, net | 1,938 | 1,534 | 3,574 | 2,712 | |||
Property and equipment, net | 16,443 | 18,010 | 16,443 | 18,010 | |||
Total assets | 20,248,788 | 18,046,768 | 20,248,788 | 18,046,768 | |||
Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 0 | 0 | 0 | 0 | |||
Gain on sale of assets | 0 | 0 | |||||
Other income, net | (43,957) | (108,633) | (72,898) | (424,238) | |||
Total revenues and other income | (43,957) | (108,633) | (72,898) | (424,238) | |||
Oil and gas production | 0 | 0 | 0 | 0 | |||
Facilities insurance modifications, net | 0 | 0 | |||||
Exploration expenses | 0 | 0 | 0 | 0 | |||
General and administrative | (40,925) | (33,429) | (76,707) | (66,862) | |||
Depletion, depreciation and amortization | 0 | 0 | 0 | 0 | |||
Interest and other financing costs, net | 0 | 0 | 0 | 0 | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | (3,032) | (75,204) | 3,809 | (357,376) | |||
Total costs and expenses | (43,957) | (108,633) | (72,898) | (424,238) | |||
Income before income taxes | 0 | 0 | 0 | 0 | |||
Income tax expense | 0 | 0 | 0 | 0 | |||
Net income | 0 | 0 | 0 | 0 | |||
Consolidated capital expenditures, net | 0 | 0 | 0 | 0 | |||
Property and equipment, net | 0 | 0 | 0 | 0 | |||
Total assets | $ (26,371,703) | $ (22,486,720) | $ (26,371,703) | $ (22,486,720) |
Business Segment Information _3
Business Segment Information - Consolidated Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Oil and gas assets | $ 416,867 | $ 320,787 | ||
Acquisition of oil and gas properties | 0 | 21,205 | ||
Proceeds on sale of assets | 0 | (118,693) | ||
Changes in capital accruals | 1,290 | 7,061 | ||
Exploration expense, excluding unsuccessful well costs and leasehold impairments | 21,702 | 27,779 | ||
Capitalized interest | (63,891) | (35,326) | ||
Other | 110 | 7,798 | ||
Consolidated capital expenditures, net | $ 169,645 | $ 248,291 | $ 376,078 | $ 230,611 |