Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 $0.01 par value | |
Trading Symbol | KOS | |
Security Exchange Name | NYSE | |
Country Region | +1 | |
City Area Code | 214 | |
Local Phone Number | 445 9600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 471,816,671 | |
Entity Central Index Key | 0001509991 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 173,813 | $ 95,345 |
Receivables | 113,124 | 120,733 |
Inventories | 149,492 | 152,054 |
Prepaid expenses and other | 41,202 | 46,235 |
Derivatives | 0 | 8,346 |
Total current assets | 477,631 | 422,713 |
Property and equipment, net | 4,558,313 | 4,160,229 |
Other assets: | ||
Restricted cash | 305 | 3,416 |
Long-term receivables | 328,533 | 325,181 |
Deferred tax assets | 4,757 | 3,033 |
Derivatives | 0 | 1,594 |
Other | 19,771 | 21,968 |
Total assets | 5,389,310 | 4,938,134 |
Current liabilities: | ||
Accounts payable | 345,258 | 248,912 |
Accrued liabilities | 302,903 | 302,815 |
Derivatives | 6,710 | 3,103 |
Total current liabilities | 654,871 | 554,830 |
Long-term liabilities: | ||
Long-term debt, net | 2,595,296 | 2,390,914 |
Asset retirement obligations | 371,075 | 343,979 |
Deferred tax liabilities | 370,840 | 363,918 |
Other long-term liabilities | 255,337 | 252,156 |
Total long-term liabilities | 3,592,548 | 3,350,967 |
Stockholders’ equity: | ||
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.01 par value; 2,000,000,000 authorized shares; 516,006,508 and 504,392,980 issued at June 30, 2024 and December 31, 2023, respectively | 5,160 | 5,044 |
Additional paid-in capital | 2,494,603 | 2,536,621 |
Accumulated deficit | (1,120,865) | (1,272,321) |
Treasury stock, at cost, 44,263,269 shares at June 30, 2024 and December 31, 2023, respectively | (237,007) | (237,007) |
Total stockholders’ equity | 1,141,891 | 1,032,337 |
Total liabilities and stockholders’ equity | $ 5,389,310 | $ 4,938,134 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
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) | 516,006,508 | 504,392,980 |
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, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues and other income: | ||||||
Oil and gas revenue | $ 450,900 | $ 273,255 | $ 870,003 | $ 667,495 | ||
Other income, net | 36 | 60 | 72 | (313) | ||
Total revenues and other income | 450,936 | 273,315 | 870,075 | 667,182 | ||
Costs and expenses: | ||||||
Oil and gas production | 150,733 | 63,579 | 244,351 | 147,515 | ||
Exploration expenses | 13,235 | 11,015 | 25,295 | 23,015 | ||
General and administrative | 25,161 | 23,444 | 53,426 | 52,611 | ||
Depletion, depreciation and amortization | 90,094 | 89,913 | 191,022 | 199,287 | ||
Interest and other financing costs, net | 37,279 | 24,371 | 53,727 | 48,939 | ||
Derivatives, net | (2,852) | 3,031 | 20,970 | (3,809) | ||
Other expenses, net | 2,162 | 4,779 | 4,191 | 6,809 | ||
Total costs and expenses | 315,812 | 220,132 | 592,982 | 474,367 | ||
Income before income taxes | 135,124 | 53,183 | 277,093 | 192,815 | ||
Income tax expense | 75,354 | 29,838 | 125,637 | 86,161 | ||
Net income | $ 59,770 | $ 91,686 | $ 23,345 | $ 83,309 | $ 151,456 | $ 106,654 |
Net income per share: | ||||||
Basic (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.32 | $ 0.23 | ||
Diluted (in dollars per share) | $ 0.12 | $ 0.05 | $ 0.32 | $ 0.22 | ||
Weighted average number of shares used to compute net income per share: | ||||||
Basic (in shares) | 471,599 | 459,984 | 469,821 | 459,155 | ||
Diluted (in shares) | 480,172 | 479,016 | 479,824 | 478,902 |
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, 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 and cash settlements 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 and cash settlements 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) |
Balance at the beginning (in shares) at Dec. 31, 2023 | 504,393 | ||||
Balance at the beginning at Dec. 31, 2023 | 1,032,337 | $ 5,044 | 2,536,621 | (1,272,321) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Capped call transactions | (49,800) | (49,800) | |||
Equity-based compensation | 7,333 | 7,333 | |||
Restricted stock units (in shares) | 11,373 | ||||
Restricted stock units | 0 | $ 114 | (114) | ||
Tax withholdings and cash settlements on restricted stock units | (9,921) | (9,921) | |||
Net income | 91,686 | 91,686 | |||
Balance at the end (in shares) at Mar. 31, 2024 | 515,766 | ||||
Balance at the end at Mar. 31, 2024 | 1,071,635 | $ 5,158 | 2,484,119 | (1,180,635) | (237,007) |
Balance at the beginning (in shares) at Dec. 31, 2023 | 504,393 | ||||
Balance at the beginning at Dec. 31, 2023 | 1,032,337 | $ 5,044 | 2,536,621 | (1,272,321) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 151,456 | ||||
Balance at the end (in shares) at Jun. 30, 2024 | 516,007 | ||||
Balance at the end at Jun. 30, 2024 | 1,141,891 | $ 5,160 | 2,494,603 | (1,120,865) | (237,007) |
Balance at the beginning (in shares) at Mar. 31, 2024 | 515,766 | ||||
Balance at the beginning at Mar. 31, 2024 | 1,071,635 | $ 5,158 | 2,484,119 | (1,180,635) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Equity-based compensation | 10,487 | 10,487 | |||
Restricted stock units (in shares) | 241 | ||||
Restricted stock units | 0 | $ 2 | (2) | ||
Tax withholdings and cash settlements on restricted stock units | (1) | (1) | |||
Net income | 59,770 | 59,770 | |||
Balance at the end (in shares) at Jun. 30, 2024 | 516,007 | ||||
Balance at the end at Jun. 30, 2024 | $ 1,141,891 | $ 5,160 | $ 2,494,603 | $ (1,120,865) | $ (237,007) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||
Net income | $ 151,456 | $ 106,654 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion, depreciation and amortization (including deferred financing costs) | 195,677 | 204,368 |
Deferred income taxes | 5,199 | (9,029) |
Unsuccessful well costs and leasehold impairments | 2,685 | 1,313 |
Change in fair value of derivatives | 21,106 | (220) |
Cash settlements on derivatives, net (including $(7.4) million and $(8.2) million on commodity hedges during 2024 and 2023) | (7,366) | (10,632) |
Equity-based compensation | 17,815 | 21,198 |
Debt modifications and extinguishments | (22,531) | 0 |
Other | (11,988) | (1,474) |
Changes in assets and liabilities: | ||
Decrease in receivables | 16,506 | 16,330 |
(Increase) decrease in inventories and prepaid expenses | 3,653 | (66,824) |
Increase (decrease) in accounts payable and accrued liabilities | 78,946 | (39,721) |
Net cash provided by operating activities | 496,220 | 221,963 |
Investing activities | ||
Oil and gas assets | (552,993) | (416,867) |
Notes receivable from partners | (2,575) | (33,295) |
Net cash used in investing activities | (555,568) | (450,162) |
Financing activities | ||
Borrowings under long-term debt | 175,000 | 150,000 |
Payments on long-term debt | (350,000) | (7,500) |
Net proceeds from issuance of senior notes | 390,430 | 0 |
Purchase of capped call transactions | (49,800) | 0 |
Dividends | 0 | (166) |
Other financing costs | (30,925) | (11,811) |
Net cash provided by financing activities | 134,705 | 130,523 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 75,357 | (97,676) |
Cash, cash equivalents and restricted cash at beginning of period | 98,761 | 186,821 |
Cash, cash equivalents and restricted cash at end of period | 174,118 | 89,145 |
Cash paid for: | ||
Income taxes, net of refund received | $ 152,255 | $ 145,365 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Cash settlements on commodity hedges derivatives | $ (7.4) | $ (8.2) |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 | |
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, 2023, 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 $ 173,813 $ 95,345 Restricted cash - long-term 305 3,416 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 174,118 $ 98,761 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 $143.9 million and $143.0 million of materials and supplies and $5.6 million and $9.1 million of hydrocarbons as of June 30, 2024 and December 31, 2023, 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 contracts with provisional pricing and quantity optionality which contain a derivative that is 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 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, 2024 2023 2024 2023 (In thousands) Revenues from contracts with customers: Equatorial Guinea $ 36,831 $ 37,542 $ 116,061 $ 107,739 Ghana 334,917 143,060 590,554 380,579 U.S. Gulf of Mexico 76,100 91,740 163,524 182,766 Total revenues from contracts with customers 447,848 272,342 870,139 671,084 Provisional oil sales contracts 3,052 913 (136) (3,589) Oil and gas revenue $ 450,900 $ 273,255 $ 870,003 $ 667,495 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. Recent Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures (Topic 740).” The amendments focus on income tax disclosures around effective tax rates and cash income taxes paid. The amendments in the ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted, however, we do not plan to early adopt ASU 2023-09. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures In March 2024, Kosmos completed the acquisition of an additional 16.7% participating interest in the Keathley Canyon Blocks 920 and 964, offshore U.S. Gulf of Mexico. As a result of the transaction, Kosmos’ participating interest in the Tiberius discovery area increased from 33.3% to 50.0%. |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following: June 30, December 31, (In thousands) Joint interest billings, net 28,192 35,632 Oil sales 73,042 64,958 Other current receivables 11,890 20,143 Total receivables 113,124 120,733 Long-term receivables 328,533 325,181 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 as current and long-term receivables based on when collection is expected to occur. 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 and production costs incurred through first gas production for Greater Tortue Ahmeyim Phase 1. The amount financed by Kosmos is to be repaid with interest through the national oil companies’ share of future revenues. As of June 30, 2024 and December 31, 2023, the principal balance due from the national oil companies was $261.8 million and $259.2 million, respectively, which is classified as Long-term receivables in our consolidated balance sheets. As of June 30, 2024 and December 31, 2023, accrued interest on the balance due from the national oil companies was $46.7 million and $37.3 million, respectively, which is classified as Long-term receivables in our consolidated balance sheets. Interest income on the long-term notes receivable was $4.7 million and $3.8 million for the three months ended June 30, 2024 and 2023, respectively, and $9.4 million and $7.3 million for the six months ended June 30, 2024 and 2023, respectively. In August 2021, BP as the operator of the Greater Tortue project (“BP Operator”), with the consent of the Greater Tortue Unit participants and the respective States, agreed to sell the Greater Tortue FPSO to an affiliate of BP Operator (“BP Buyer”) once construction is completed by Technip Energies and the Greater Tortue FPSO has been commissioned (the “FPSO Handover”). The Greater Tortue FPSO will be leased back to BP Operator under a long-term lease agreement, for exclusive use in the Greater Tortue project. Delivery of the Greater Tortue FPSO to BP Buyer will occur upon the FPSO Handover, with the lease to BP Operator becoming effective on the same date, currently targeted to be in September 2024. In Ghana, the foreign contractor group funded GNPC’s 5% share of TEN development costs. The foreign contractor group is being reimbursed for such costs plus interest out of a portion of GNPC’s TEN production revenues. As of June 30, 2024 and December 31, 2023, the long-term portions of joint interest billing receivables due from GNPC for the TEN Fields development costs were $20.1 million and $28.7 million. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 8,113,221 $ 7,600,252 Unproved properties 482,460 423,050 Total oil and gas properties 8,595,681 8,023,302 Accumulated depletion (4,042,252) (3,868,946) Oil and gas properties, net 4,553,429 4,154,356 Other property 65,488 65,095 Accumulated depreciation (60,604) (59,222) Other property, net 4,884 5,873 Property and equipment, net $ 4,558,313 $ 4,160,229 We recorded depletion expense of $81.1 million and $82.0 million for the three months ended June 30, 2024 and 2023, respectively, and $173.3 million and $183.6 million for the six months ended June 30, 2024 and 2023, respectively. During the six months ended June 30, 2024, additions to our proved properties primarily related to continued infill development in the Jubilee Field in Ghana, development costs associated with the Greater Tortue Ahmeyim project in Mauritania/Senegal, and the Winterfell development project and Odd Job Field subsea pump installation in the U.S. Gulf of Mexico. |
Suspended Well Costs
Suspended Well Costs | 6 Months Ended |
Jun. 30, 2024 | |
Oil and Gas Disclosure [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, 2024. June 30, (In thousands) Beginning balance $ 211,959 Additions to capitalized exploratory well costs pending the determination of proved reserves 16,004 Reclassification due to determination of proved reserves — Capitalized exploratory well costs charged to expense — Ending balance $ 227,963 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 $ 63,795 $ 54,274 Exploratory well costs capitalized for a period of one to five years 36,396 34,775 Exploratory well costs capitalized for a period of six to ten years 127,772 122,910 Ending balance $ 227,963 $ 211,959 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, 2024, 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 March 2024, the current phase of the Cayar Block exploration license was extended an additional two years to July 2026. The Yakaar and Teranga discoveries are being analyzed as a joint development. During 2024, we have continued progressing appraisal studies and maturing concept design. Following additional evaluation, a final investment decision for the development of the project 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 2024, 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, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt June 30, December 31, (In thousands) Outstanding debt principal balances: Facility $ 750,000 $ 925,000 7.125% Senior Notes 650,000 650,000 7.750% Senior Notes 400,000 400,000 7.500% Senior Notes 450,000 450,000 3.125% Convertible Senior Notes 400,000 — Total long-term debt 2,650,000 2,425,000 Unamortized deferred financing costs and discounts(1) (54,704) (34,086) Long-term debt, net $ 2,595,296 $ 2,390,914 (1) Includes $31.3 million and $20.8 million of unamortized deferred financing costs related to the Facility, $11.2 million and $13.3 million of unamortized deferred financing costs and discounts related to the Senior Notes, and $12.2 million and nil of unamortized deferred financing costs related to the 3.125% Convertible Senior Notes as of June 30, 2024 and December 31, 2023, respectively. Facility The Facility supports our oil and gas exploration, appraisal and development programs and corporate activities. In April 2024, in conjunction with the spring borrowing base redetermination, the Company executed an amendment and restatement of the Facility. The amendment includes the following material changes: an increase in the Facility size and borrowing base capacity to $1.35 billion (from $1.25 billion), an increase in the interest margin by 0.25% or 0.50%, depending on the length of time that has passed from the date the Facility was entered into, and an extension in the tenor by approximately three years (final maturity date now occurs December 31, 2029). The amended Facility size and borrowing base capacity of approximately $1.35 billion is currently capped by total commitments of approximately $1.21 billion. 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 and Equatorial Guinea. As part of the amendment, the Company recognized a loss on debt modifications and extinguishments of approximately $22.0 million during the second quarter of 2024. As of June 30, 2024, the undrawn availability under the Facility was $455.0 million. As amended, interest on the Facility is the aggregate of the applicable margin (4.00% to 5.50%, 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. 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. The Facility provides a revolving credit and letter of credit facility. As of June 30, 2024, we had no letters of credit issued under the Facility. We were in compliance with the financial covenants contained in the Facility as of March 31, 2024 (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. In April 2024, in connection with the amendment and restatement of the Facility, we amended the Corporate Revolver reducing the borrowing capacity from $250.0 million to approximately $165 million. All of the commitments that were cancelled (either in full or in part) under the Corporate Revolver were transferred to the Facility as part of the amendment and restatement. There is no change to the final maturity date of December 31, 2024. As of June 30, 2024, there were no outstanding borrowings under the Corporate Revolver and the undrawn availability was approximately $165 million with an expiration date of December 31, 2024. The Company capitalized $6.1 million of deferred financing costs associated with entering into the revolving credit facility in March 2022, which is being amortized over the term of the new revolving credit facility. 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, 2024 (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 fees. 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, the 7.500% Senior Notes and the 3.125% Convertible 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). 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, the 7.500% Senior Notes and the 3.125% Convertible 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, the 7.500% Senior Notes and the 3.125% Convertible 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). 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, the 7.500% Senior Notes and the 3.125% Convertible 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, the 7.750% Senior Notes and the 3.125% Convertible 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). 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, the 7.750% Senior Notes and the 3.125% Convertible Senior Notes. The 7.500% Senior Notes contain customary cross default provisions. 3.125% Convertible Senior Notes due 2030 In March 2024, the Company issued $400.0 million of 3.125% Convertible Senior Notes (the “3.125% Convertible Senior Notes”) and received net proceeds of $390.4 million after deducting fees. The 3.125% Convertible Senior Notes mature on March 15, 2030, unless earlier converted, redeemed or repurchased. Interest is payable in arrears each March 15 and September 15, commencing September 15, 2024. The 3.125% Convertible 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, the 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, to the extent of the value of the assets securing such indebtedness). The 3.125% Convertible Senior Notes are guaranteed on a senior, unsecured basis by certain of our existing subsidiaries that guarantee on a senior basis the Corporate Revolver, the 7.125% Senior Notes, the 7.750% Senior Notes and the 7.500% Senior Notes, and, in certain circumstances, certain of our other existing or future subsidiaries. The 3.125% Convertible Senior Notes are guaranteed on a subordinated, unsecured basis by certain of our existing subsidiaries that borrow under or guarantee the Facility and guarantee on a subordinated basis the Corporate Revolver and the 7.125% Senior Notes, the 7.750% Senior Notes and the 7.500% Senior Notes, and, in certain circumstances, certain of our other existing or future subsidiaries. Holders of the 3.125% Convertible Senior Notes may convert all or any portion of their 3.125% Convertible Senior Notes at their option at any time prior to the close of business on the business day immediately preceding December 15, 2029 only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on June 30, 2024 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • if we call any or all of the 3.125% Convertible Senior Notes for redemption, the 3.125% Convertible Senior Notes called (or deemed called) for redemption may be converted at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of certain specified corporate events. On or after December 15, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert at any time all or any portion of their 3.125% Convertible Senior Notes at the option of the holder. The conversion rate for the 3.125% Convertible Senior Notes is initially 142.4501 shares of our common stock per $1,000 principal amount of 3.125% Convertible Senior Notes (which is equivalent to an initial conversion price of approximately $7.02 per share of our common stock), subject to adjustments. Upon conversion, we will pay cash up to the aggregate principal amount of the 3.125% Convertible Senior Notes to be converted and pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the 3.125% Convertible Senior Notes being converted. The amount of cash and shares of our common stock, if any, due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 40 consecutive trading day observation period. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 3.125% Convertible Senior Notes in connection with such a corporate event or to convert its 3.125% Convertible Senior Notes called (or deemed called) for redemption in connection with such notice of redemption, as the case may be. Other than in connection with certain tax law changes, we may not redeem the notes prior to March 22, 2027. We may redeem for cash all or any portion of the 3.125% Convertible Senior Notes, at our option, on or after March 22, 2027 and prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide the related notice of redemption, at a redemption price equal to 100% of the principal amount of the 3.125% Convertible Senior Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. We are not required to redeem or retire the 3.125% Convertible Senior Notes periodically. We may not elect to redeem less than all of the outstanding 3.125% Convertible Senior Notes unless at least $75.0 million aggregate principal amount of 3.125% Convertible Senior Notes are outstanding and not subject to redemption as of the time we send the related redemption notice. The 3.125% Convertible Senior Notes indenture contains customary terms and covenants. The Company recorded the 3.125% Convertible Senior Notes, including the debt itself and all embedded derivatives, at cost less debt issuance costs of $9.6 million and has presented the 3.125% Convertible Senior Notes as a single financial instrument in Long-term debt, net in our consolidated balance sheet. No portion of the embedded derivatives required bifurcation from the host debt contract. As of June 30, 2024, the effective annual interest rate on the 3.125% Convertible Senior Notes is approximately 3.57%, including amortization of debt issuance costs. Capped Call Transactions In connection with the issuance of the 3.125% Convertible Senior Notes, the Company used $49.8 million of the net proceeds from the issuance of the 3.125% Convertible Senior Notes to enter into capped call transactions (the “Capped Call Transactions”). The Capped Call Transactions are generally expected to reduce potential dilution to holders of our common stock upon any conversion of the 3.125% Convertible Senior Notes and/or offset any cash payments that we are required to make in excess of the principal amount of any 3.125% Convertible Senior Notes that are converted, as the case may be, with such reduction and/or offset subject to a cap. The Capped Call Transactions have an initial cap price of $10.80 per share, which represents a premium of 100% over the last reported sale price of our common stock on March 5, 2024, and is subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions cover, initially, the number of shares of our common stock underlying the 3.125% Convertible Senior Notes, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 3.125% Convertible Senior Notes. The Capped Call Transactions qualify for a derivative scope exception as they are indexed to our common stock and are not required to be accounted for as a separate derivative. Consequently, the Capped Call Transactions have been included as a net reduction to additional-paid-in-capital within stockholders’ equity in our consolidated balance sheet and do not require subsequent remeasurement. Principal Debt Repayments At June 30, 2024, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year Total 2024(2) 2025 2026 2027 2028 Thereafter (In thousands) Principal debt repayments(1) $ 2,650,000 $ — $ — $ 650,000 $ 400,000 $ 642,130 $ 957,870 __________________________________ (1) Includes the scheduled maturities for outstanding principal debt balances. The scheduled maturities of debt related to the Facility as of June 30, 2024 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, 2024 through December 31, 2024. 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, 2024 2023 2024 2023 (In thousands) Interest expense $ 53,168 $ 51,965 $ 107,937 $ 100,480 Amortization—deferred financing costs 2,256 2,530 4,655 5,081 Debt modifications and extinguishments 22,531 — 22,531 — Capitalized interest (41,525) (33,688) (83,926) (63,891) Deferred interest (1,010) 670 (2,982) 353 Interest income (6,233) (4,445) (10,874) (8,586) Other, net 8,092 7,339 16,386 15,502 Interest and other financing costs, net $ 37,279 $ 24,371 $ 53,727 $ 48,939 Cash payments for interest totaled $61.0 million and $61.0 million for the three months ended June 30, 2024 and 2023, respectively, and $91.4 million and $96.4 million for the six months ended June 30, 2024 and 2023, respectively. Capitalized interest of $41.5 million and $33.7 million for the three months ended June 30, 2024 and 2023, respectively, and $83.9 million and $63.9 million for the six months ended June 30, 2024 and 2023, respectively, primarily relates to spend on the Greater Tortue Ahmeyim Phase 1 project. We will no longer capitalize interest on the Greater Tortue Ahmeyim Phase 1 project after first gas production. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024. 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 2024: Jul - Dec Three-way collars Dated Brent 4,000 $ 1.15 $ 45.00 $ 70.00 $ 93.12 Jul - Dec Two-way collars Dated Brent 1,000 0.46 — 70.00 100.00 __________________________________ In July 2024, we entered into Dated Brent two-way collar contracts for 2.0 MMBbl from January 2025 through June 2025 with 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, 2024 and December 31, 2023, and gain/(loss) from derivatives during the three and six months ended June 30, 2024 and 2023, 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 $ — $ 8,346 Commodity Derivatives assets—long-term — 1,594 Derivative liabilities: Commodity Derivatives liabilities—current (6,710) (3,103) Provisional oil sales Receivables: Oil sales (265) (72) Total derivatives not designated as hedging instruments $ (6,975) $ 6,765 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) 2024 2023 2024 2023 (In thousands) Derivatives not designated as hedging instruments: Provisional oil sales Oil and gas revenue $ 3,052 $ 913 $ (136) $ (3,589) Commodity Derivatives, net 2,852 (3,031) (20,970) 3,809 Total derivatives not designated as hedging instruments $ 5,904 $ (2,118) $ (21,106) $ 220 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, 2024 and December 31, 2023, 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, 2024 | |
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, 2024 and December 31, 2023, 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, 2024 Assets: Commodity derivatives $ — $ — $ — $ — Liabilities: Commodity derivatives — (6,710) — (6,710) Provisional oil sales — (265) — (265) Total $ — $ (6,975) $ — $ (6,975) December 31, 2023 Assets: Commodity derivatives $ — $ 9,940 $ — $ 9,940 Provisional oil sales — (72) — (72) Liabilities: Commodity derivatives — (3,103) — (3,103) Total $ — $ 6,765 $ — $ 6,765 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, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7.125% Senior Notes $ 647,553 $ 642,733 $ 646,912 $ 622,824 7.750% Senior Notes 397,156 391,556 396,718 374,764 7.500% Senior Notes 446,675 429,255 446,291 412,461 3.125% Convertible Senior Notes 390,880 418,664 — — Facility 750,000 750,000 925,000 925,000 Total $ 2,632,264 $ 2,632,208 $ 2,414,921 $ 2,335,049 The carrying values of our 7.125% Senior Notes, 7.750% Senior Notes, 7.500% Senior Notes and 3.125% Convertible Senior Notes represent the principal amounts outstanding less unamortized discounts. The fair values of our 7.125% Senior Notes, 7.750% Senior Notes, 7.500% Senior Notes and 3.125% Convertible Senior Notes are based on quoted market prices, which results in a Level 1 fair value measurement. The carrying value of the Facility approximates 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, 2024 and 2023, 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 in the future, significant increases in our estimated future expenditures or a significant decrease in our estimated production profile, our long-lived assets could be at risk of impairment. |
Equity-based Compensation
Equity-based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
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 $10.5 million and $11.1 million during the three months ended June 30, 2024 and 2023, respectively, and $17.8 million and $21.2 million during the six months ended June 30, 2024 and 2023, respectively. The total tax benefit for the three months ended June 30, 2024 and 2023 was $1.7 million and $1.9 million, respectively, and $2.8 million and $3.7 million during the six months ended June 30, 2024 and 2023, respectively. Additionally, we recorded a net tax shortfall (windfall) related to equity-based compensation of nil and $(0.5) million for the three months ended June 30, 2024 and 2023, respectively, and $(9.5) million and $(3.1) million during the six months ended June 30, 2024 and 2023, respectively. The fair value of awards vested during the three months ended June 30, 2024 and 2023 was $1.4 million and $3.8 million, respectively, and $81.6 million and $44.8 million during the six months ended June 30, 2024 and 2023, 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. 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 $13.06 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 4.1%. The following table reflects the outstanding restricted stock units as of June 30, 2024: 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, 2023 4,710 $ 5.77 12,370 $ 6.59 Granted(1) 4,314 6.31 6,152 8.64 Forfeited(1) (306) 6.27 (423) 9.58 Vested (3,966) 2.95 (9,286) 3.91 Outstanding at June 30, 2024 4,752 6.41 8,813 9.05 __________________________________ (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, 2024, total equity-based compensation to be recognized on unvested restricted stock units is $47.5 million over a weighted average period of 1.96 years. At June 30, 2024, the Company had approximately 10.5 million shares that remain available for issuance under the LTIP. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 2023 2024 2023 (In thousands) United States $ (40,629) $ (24,529) $ (75,042) $ (49,123) Foreign 175,753 77,712 352,135 241,938 Income before income taxes $ 135,124 $ 53,183 $ 277,093 $ 192,815 For the three months ended, June 30, 2024 and 2023, our effective tax rate was 56% and 56%, respectively. For the six months ended June 30, 2024 and 2023, our effective tax rate was 45% and 45%, respectively. For the three and six months ended June 30, 2024 and 2023, our overall effective tax rates were impacted by: • The difference in our 21% U.S. income tax reporting rate and the statutory income tax rates applicable to our foreign operations, primarily in Ghana and Equatorial Guinea, • 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, 2024 | |
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. Potentially dilutive securities include shares issuable upon conversion of our 3.125% Convertible Senior Notes using the if-converted method and restricted stock units awards under our equity-based compensation plan. Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands, except per share data) Numerator: Net income allocable to common stockholders $ 59,770 $ 23,345 $ 151,456 $ 106,654 Denominator: Weighted average number of shares outstanding: Basic 471,599 459,984 469,821 459,155 Restricted stock units(1) 8,573 19,032 10,003 19,747 Shares issuable assuming conversion of 3.125% Convertible Senior Notes(2) — — — — Diluted 480,172 479,016 479,824 478,902 Net income per share: Basic $ 0.13 $ 0.05 $ 0.32 $ 0.23 Diluted $ 0.12 $ 0.05 $ 0.32 $ 0.22 __________________________________ (1) We excluded restricted stock units of 1.2 million and 1.8 million for the three months ended June 30, 2024 and 2023, respectively, and 2.8 million and 1.4 million for the six months ended June 30, 2024 and 2023, respectively from the computations of diluted net income per share because the effect would have been anti-dilutive. (2) Represents the dilutive impact for the Company’s 3.125% Convertible Senior Notes due 2030. As of June 30, 2024, the if-converted value is less than the outstanding principal of the 3.125% Convertible Senior Notes and therefore anti-dilutive. The 3.125% Convertible Senior Notes are subject to a capped call arrangement that potentially reduces the dilutive effect as described in “Note 7 - Debt”. Any potential impact of the capped call arrangement is excluded from this table as any proceeds under the capped call arrangement are considered anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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. In February 2019, Kosmos and BP signed Carry Advance Agreements with the national oil companies of Mauritania and Senegal, which obligate us separately to finance the respective national oil companies’ share of certain development and production costs. Kosmos’ total share for the two agreements combined is currently estimated at approximately $370.0 million, of which $261.8 million has been incurred through June 30, 2024, excluding accrued interest. In April 2024, a Decommissioning Trust agreement with the Jubilee unit partners to cash fund future retirement obligations associated with the Jubilee Field was finalized. The operator currently estimates the total commitment to be approximately $148.9 million, net to Kosmos, which will be funded annually by Kosmos over an estimated 13 year period. The contributions will be accounted for as trading securities and reported as a long-term investment in our consolidated balance sheet and as operating activities in our statement of cash flows. Performance Obligations |
Additional Financial Informatio
Additional Financial Information | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 111,735 $ 90,054 Revenue payable 12,785 20,506 Current asset retirement obligations 1,357 2,808 General and administrative expenses 20,443 29,766 Interest 51,222 36,410 Income taxes 87,357 111,212 Taxes other than income 1,578 1,029 Derivatives 924 1,372 Other 15,502 9,658 $ 302,903 $ 302,815 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, 2024: June 30, (In thousands) Asset retirement obligations: Beginning asset retirement obligations $ 346,786 Liabilities incurred during period 10,762 Liabilities settled during period (638) Revisions in estimated retirement obligations (812) Accretion expense 16,334 Ending asset retirement obligations $ 372,432 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, 2024 2023 2024 2023 (In thousands) (Gain) loss on disposal of inventory $ (105) $ 2,704 $ 27 $ 2,939 (Gain) loss on asset retirement obligations liability settlements (2,341) — (3,187) 115 Other, net 4,608 2,075 7,351 3,755 Other expenses, net $ 2,162 $ 4,779 $ 4,191 $ 6,809 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024, 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, 2024 Revenues and other income: Oil and gas revenue $ 336,388 $ 38,412 $ — $ 76,100 $ — $ — $ 450,900 Other income, net — — — 975 34,773 (35,712) 36 Total revenues and other income 336,388 38,412 — 77,075 34,773 (35,712) 450,936 Costs and expenses: Oil and gas production 78,248 19,679 18,166 34,640 — — 150,733 Exploration expenses 2,312 2,196 4,071 3,125 1,531 — 13,235 General and administrative 3,289 1,205 2,101 5,514 51,616 (38,564) 25,161 Depletion, depreciation and amortization 48,402 9,298 227 31,811 356 — 90,094 Interest and other financing costs, net(1) 12,528 (801) (34,933) (4,301) 64,786 — 37,279 Derivatives, net — — — — (2,852) — (2,852) Other expenses, net (2,856) (2,350) 3,627 1,012 (123) 2,852 2,162 Total costs and expenses 141,923 29,227 (6,741) 71,801 115,314 (35,712) 315,812 Income (loss) before income taxes 194,465 9,185 6,741 5,274 (80,541) — 135,124 Income tax expense 71,165 4,138 — — 51 — 75,354 Net income (loss) $ 123,300 $ 5,047 $ 6,741 $ 5,274 $ (80,592) $ — $ 59,770 Consolidated capital expenditures $ 47,188 $ 33,621 $ 84,622 $ 48,454 $ 1,531 $ — $ 215,416 Ghana Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Six months ended June 30, 2024 Revenues and other income: Oil and gas revenue $ 588,532 $ 117,947 $ — $ 163,524 $ — $ — $ 870,003 Other income, net 1 — — 1,485 100,514 (101,928) 72 Total revenues and other income 588,533 117,947 — 165,009 100,514 (101,928) 870,075 Costs and expenses: Oil and gas production 96,295 60,705 18,166 69,185 — — 244,351 Exploration expenses 2,252 3,382 9,247 8,012 2,402 — 25,295 General and administrative 6,878 2,745 5,266 11,372 108,123 (80,958) 53,426 Depletion, depreciation and amortization 96,690 23,892 451 69,269 720 — 191,022 Interest and other financing costs, net(1) 25,797 (1,595) (70,765) (8,393) 108,683 — 53,727 Derivatives, net — — — — 20,970 — 20,970 Other expenses, net 20,983 (2,353) 5,230 1,318 (17) (20,970) 4,191 Total costs and expenses 248,895 86,776 (32,405) 150,763 240,881 (101,928) 592,982 Income (loss) before income taxes 339,638 31,171 32,405 14,246 (140,367) — 277,093 Income tax expense 114,710 12,563 — 80 (1,716) — 125,637 Net income (loss) $ 224,928 $ 18,608 $ 32,405 $ 14,166 $ (138,651) $ — $ 151,456 Consolidated capital expenditures, net $ 111,664 $ 78,240 $ 211,196 $ 97,735 $ 2,809 $ — $ 501,644 As of June 30, 2024 Property and equipment, net $ 1,063,384 $ 483,773 $ 2,065,242 $ 928,566 $ 17,348 $ — $ 4,558,313 Total assets $ 3,492,701 $ 2,217,658 $ 3,008,000 $ 4,052,704 $ 24,601,589 $ (31,983,342) $ 5,389,310 ______________________________________ (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 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 $ 20,248,787 $ (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. Six Months Ended June 30, 2024 2023 (In thousands) Consolidated capital expenditures: Consolidated Statements of Cash Flows - Investing activities: Oil and gas assets $ 552,993 $ 416,867 Adjustments: Changes in capital accruals 7,945 1,290 Exploration expense, excluding unsuccessful well costs and leasehold impairments(1) 22,610 21,702 Capitalized interest (83,926) (63,891) Other 2,022 110 Total consolidated capital expenditures, net $ 501,644 $ 376,078 ______________________________________ (1) Costs related to unsuccessful exploratory wells and leaseholds that are subsequently written off to Exploration expense are included in oil and gas assets when incurred. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023, included in our annual report on Form 10-K. |
Reclassifications | Reclassifications |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash 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 | 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 | 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 | 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 contracts with provisional pricing and quantity optionality which contain a derivative that is 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 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. |
Recent Accounting Standards | Recent Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures (Topic 740).” The amendments focus on income tax disclosures around effective tax rates and cash income taxes paid. The amendments in the ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted, however, we do not plan to early adopt ASU 2023-09. |
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. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | June 30, December 31, (In thousands) Cash and cash equivalents $ 173,813 $ 95,345 Restricted cash - long-term 305 3,416 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 174,118 $ 98,761 |
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, 2024 2023 2024 2023 (In thousands) Revenues from contracts with customers: Equatorial Guinea $ 36,831 $ 37,542 $ 116,061 $ 107,739 Ghana 334,917 143,060 590,554 380,579 U.S. Gulf of Mexico 76,100 91,740 163,524 182,766 Total revenues from contracts with customers 447,848 272,342 870,139 671,084 Provisional oil sales contracts 3,052 913 (136) (3,589) Oil and gas revenue $ 450,900 $ 273,255 $ 870,003 $ 667,495 |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables consisted of the following: June 30, December 31, (In thousands) Joint interest billings, net 28,192 35,632 Oil sales 73,042 64,958 Other current receivables 11,890 20,143 Total receivables 113,124 120,733 Long-term receivables 328,533 325,181 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 8,113,221 $ 7,600,252 Unproved properties 482,460 423,050 Total oil and gas properties 8,595,681 8,023,302 Accumulated depletion (4,042,252) (3,868,946) Oil and gas properties, net 4,553,429 4,154,356 Other property 65,488 65,095 Accumulated depreciation (60,604) (59,222) Other property, net 4,884 5,873 Property and equipment, net $ 4,558,313 $ 4,160,229 |
Suspended Well Costs (Tables)
Suspended Well Costs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Oil and Gas Disclosure [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, 2024. June 30, (In thousands) Beginning balance $ 211,959 Additions to capitalized exploratory well costs pending the determination of proved reserves 16,004 Reclassification due to determination of proved reserves — Capitalized exploratory well costs charged to expense — Ending balance $ 227,963 |
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 $ 63,795 $ 54,274 Exploratory well costs capitalized for a period of one to five years 36,396 34,775 Exploratory well costs capitalized for a period of six to ten years 127,772 122,910 Ending balance $ 227,963 $ 211,959 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, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | June 30, December 31, (In thousands) Outstanding debt principal balances: Facility $ 750,000 $ 925,000 7.125% Senior Notes 650,000 650,000 7.750% Senior Notes 400,000 400,000 7.500% Senior Notes 450,000 450,000 3.125% Convertible Senior Notes 400,000 — Total long-term debt 2,650,000 2,425,000 Unamortized deferred financing costs and discounts(1) (54,704) (34,086) Long-term debt, net $ 2,595,296 $ 2,390,914 (1) Includes $31.3 million and $20.8 million of unamortized deferred financing costs related to the Facility, $11.2 million and $13.3 million of unamortized deferred financing costs and discounts related to the Senior Notes, and $12.2 million and nil of unamortized deferred financing costs related to the 3.125% Convertible Senior Notes as of June 30, 2024 and December 31, 2023, respectively. |
Schedule of Estimated Repayments of Debt | At June 30, 2024, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year Total 2024(2) 2025 2026 2027 2028 Thereafter (In thousands) Principal debt repayments(1) $ 2,650,000 $ — $ — $ 650,000 $ 400,000 $ 642,130 $ 957,870 __________________________________ (1) Includes the scheduled maturities for outstanding principal debt balances. The scheduled maturities of debt related to the Facility as of June 30, 2024 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, 2024 through December 31, 2024. |
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, 2024 2023 2024 2023 (In thousands) Interest expense $ 53,168 $ 51,965 $ 107,937 $ 100,480 Amortization—deferred financing costs 2,256 2,530 4,655 5,081 Debt modifications and extinguishments 22,531 — 22,531 — Capitalized interest (41,525) (33,688) (83,926) (63,891) Deferred interest (1,010) 670 (2,982) 353 Interest income (6,233) (4,445) (10,874) (8,586) Other, net 8,092 7,339 16,386 15,502 Interest and other financing costs, net $ 37,279 $ 24,371 $ 53,727 $ 48,939 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024. 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 2024: Jul - Dec Three-way collars Dated Brent 4,000 $ 1.15 $ 45.00 $ 70.00 $ 93.12 Jul - Dec Two-way collars Dated Brent 1,000 0.46 — 70.00 100.00 __________________________________ |
Schedule of Derivative Instruments by Balance Sheet Location | The following tables disclose the Company’s derivative instruments as of June 30, 2024 and December 31, 2023, and gain/(loss) from derivatives during the three and six months ended June 30, 2024 and 2023, 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 $ — $ 8,346 Commodity Derivatives assets—long-term — 1,594 Derivative liabilities: Commodity Derivatives liabilities—current (6,710) (3,103) Provisional oil sales Receivables: Oil sales (265) (72) Total derivatives not designated as hedging instruments $ (6,975) $ 6,765 |
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) 2024 2023 2024 2023 (In thousands) Derivatives not designated as hedging instruments: Provisional oil sales Oil and gas revenue $ 3,052 $ 913 $ (136) $ (3,589) Commodity Derivatives, net 2,852 (3,031) (20,970) 3,809 Total derivatives not designated as hedging instruments $ 5,904 $ (2,118) $ (21,106) $ 220 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and December 31, 2023, 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, 2024 Assets: Commodity derivatives $ — $ — $ — $ — Liabilities: Commodity derivatives — (6,710) — (6,710) Provisional oil sales — (265) — (265) Total $ — $ (6,975) $ — $ (6,975) December 31, 2023 Assets: Commodity derivatives $ — $ 9,940 $ — $ 9,940 Provisional oil sales — (72) — (72) Liabilities: Commodity derivatives — (3,103) — (3,103) Total $ — $ 6,765 $ — $ 6,765 |
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, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7.125% Senior Notes $ 647,553 $ 642,733 $ 646,912 $ 622,824 7.750% Senior Notes 397,156 391,556 396,718 374,764 7.500% Senior Notes 446,675 429,255 446,291 412,461 3.125% Convertible Senior Notes 390,880 418,664 — — Facility 750,000 750,000 925,000 925,000 Total $ 2,632,264 $ 2,632,208 $ 2,414,921 $ 2,335,049 |
Equity-based Compensation (Tabl
Equity-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Outstanding Restricted Stock Units | The following table reflects the outstanding restricted stock units as of June 30, 2024: 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, 2023 4,710 $ 5.77 12,370 $ 6.59 Granted(1) 4,314 6.31 6,152 8.64 Forfeited(1) (306) 6.27 (423) 9.58 Vested (3,966) 2.95 (9,286) 3.91 Outstanding at June 30, 2024 4,752 6.41 8,813 9.05 __________________________________ (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, 2024 | |
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, 2024 2023 2024 2023 (In thousands) United States $ (40,629) $ (24,529) $ (75,042) $ (49,123) Foreign 175,753 77,712 352,135 241,938 Income before income taxes $ 135,124 $ 53,183 $ 277,093 $ 192,815 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation Between Compute Basic and Diluted Net Income Per Share and Weighted Average Share Outstanding | 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. Potentially dilutive securities include shares issuable upon conversion of our 3.125% Convertible Senior Notes using the if-converted method and restricted stock units awards under our equity-based compensation plan. Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands, except per share data) Numerator: Net income allocable to common stockholders $ 59,770 $ 23,345 $ 151,456 $ 106,654 Denominator: Weighted average number of shares outstanding: Basic 471,599 459,984 469,821 459,155 Restricted stock units(1) 8,573 19,032 10,003 19,747 Shares issuable assuming conversion of 3.125% Convertible Senior Notes(2) — — — — Diluted 480,172 479,016 479,824 478,902 Net income per share: Basic $ 0.13 $ 0.05 $ 0.32 $ 0.23 Diluted $ 0.12 $ 0.05 $ 0.32 $ 0.22 __________________________________ (1) We excluded restricted stock units of 1.2 million and 1.8 million for the three months ended June 30, 2024 and 2023, respectively, and 2.8 million and 1.4 million for the six months ended June 30, 2024 and 2023, respectively from the computations of diluted net income per share because the effect would have been anti-dilutive. (2) Represents the dilutive impact for the Company’s 3.125% Convertible Senior Notes due 2030. As of June 30, 2024, the if-converted value is less than the outstanding principal of the 3.125% Convertible Senior Notes and therefore anti-dilutive. The 3.125% Convertible Senior Notes are subject to a capped call arrangement that potentially reduces the dilutive effect as described in “Note 7 - Debt”. Any potential impact of the capped call arrangement is excluded from this table as any proceeds under the capped call arrangement are considered anti-dilutive. |
Additional Financial Informat_2
Additional Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 111,735 $ 90,054 Revenue payable 12,785 20,506 Current asset retirement obligations 1,357 2,808 General and administrative expenses 20,443 29,766 Interest 51,222 36,410 Income taxes 87,357 111,212 Taxes other than income 1,578 1,029 Derivatives 924 1,372 Other 15,502 9,658 $ 302,903 $ 302,815 |
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, 2024: June 30, (In thousands) Asset retirement obligations: Beginning asset retirement obligations $ 346,786 Liabilities incurred during period 10,762 Liabilities settled during period (638) Revisions in estimated retirement obligations (812) Accretion expense 16,334 Ending asset retirement obligations $ 372,432 |
Schedule of 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, 2024 2023 2024 2023 (In thousands) (Gain) loss on disposal of inventory $ (105) $ 2,704 $ 27 $ 2,939 (Gain) loss on asset retirement obligations liability settlements (2,341) — (3,187) 115 Other, net 4,608 2,075 7,351 3,755 Other expenses, net $ 2,162 $ 4,779 $ 4,191 $ 6,809 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 Revenues and other income: Oil and gas revenue $ 336,388 $ 38,412 $ — $ 76,100 $ — $ — $ 450,900 Other income, net — — — 975 34,773 (35,712) 36 Total revenues and other income 336,388 38,412 — 77,075 34,773 (35,712) 450,936 Costs and expenses: Oil and gas production 78,248 19,679 18,166 34,640 — — 150,733 Exploration expenses 2,312 2,196 4,071 3,125 1,531 — 13,235 General and administrative 3,289 1,205 2,101 5,514 51,616 (38,564) 25,161 Depletion, depreciation and amortization 48,402 9,298 227 31,811 356 — 90,094 Interest and other financing costs, net(1) 12,528 (801) (34,933) (4,301) 64,786 — 37,279 Derivatives, net — — — — (2,852) — (2,852) Other expenses, net (2,856) (2,350) 3,627 1,012 (123) 2,852 2,162 Total costs and expenses 141,923 29,227 (6,741) 71,801 115,314 (35,712) 315,812 Income (loss) before income taxes 194,465 9,185 6,741 5,274 (80,541) — 135,124 Income tax expense 71,165 4,138 — — 51 — 75,354 Net income (loss) $ 123,300 $ 5,047 $ 6,741 $ 5,274 $ (80,592) $ — $ 59,770 Consolidated capital expenditures $ 47,188 $ 33,621 $ 84,622 $ 48,454 $ 1,531 $ — $ 215,416 Ghana Equatorial Guinea Mauritania/Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (In thousands) Six months ended June 30, 2024 Revenues and other income: Oil and gas revenue $ 588,532 $ 117,947 $ — $ 163,524 $ — $ — $ 870,003 Other income, net 1 — — 1,485 100,514 (101,928) 72 Total revenues and other income 588,533 117,947 — 165,009 100,514 (101,928) 870,075 Costs and expenses: Oil and gas production 96,295 60,705 18,166 69,185 — — 244,351 Exploration expenses 2,252 3,382 9,247 8,012 2,402 — 25,295 General and administrative 6,878 2,745 5,266 11,372 108,123 (80,958) 53,426 Depletion, depreciation and amortization 96,690 23,892 451 69,269 720 — 191,022 Interest and other financing costs, net(1) 25,797 (1,595) (70,765) (8,393) 108,683 — 53,727 Derivatives, net — — — — 20,970 — 20,970 Other expenses, net 20,983 (2,353) 5,230 1,318 (17) (20,970) 4,191 Total costs and expenses 248,895 86,776 (32,405) 150,763 240,881 (101,928) 592,982 Income (loss) before income taxes 339,638 31,171 32,405 14,246 (140,367) — 277,093 Income tax expense 114,710 12,563 — 80 (1,716) — 125,637 Net income (loss) $ 224,928 $ 18,608 $ 32,405 $ 14,166 $ (138,651) $ — $ 151,456 Consolidated capital expenditures, net $ 111,664 $ 78,240 $ 211,196 $ 97,735 $ 2,809 $ — $ 501,644 As of June 30, 2024 Property and equipment, net $ 1,063,384 $ 483,773 $ 2,065,242 $ 928,566 $ 17,348 $ — $ 4,558,313 Total assets $ 3,492,701 $ 2,217,658 $ 3,008,000 $ 4,052,704 $ 24,601,589 $ (31,983,342) $ 5,389,310 ______________________________________ (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 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 $ 20,248,787 $ (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. Six Months Ended June 30, 2024 2023 (In thousands) Consolidated capital expenditures: Consolidated Statements of Cash Flows - Investing activities: Oil and gas assets $ 552,993 $ 416,867 Adjustments: Changes in capital accruals 7,945 1,290 Exploration expense, excluding unsuccessful well costs and leasehold impairments(1) 22,610 21,702 Capitalized interest (83,926) (63,891) Other 2,022 110 Total consolidated capital expenditures, net $ 501,644 $ 376,078 ______________________________________ (1) Costs related to unsuccessful exploratory wells and leaseholds that are subsequently written off to Exploration expense are included in oil and gas assets when incurred. |
Organization (Details)
Organization (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable geographic areas | 4 |
Accounting Policies - Schedule
Accounting Policies - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 173,813 | $ 95,345 | ||
Restricted cash - long-term | 305 | 3,416 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 174,118 | $ 98,761 | $ 89,145 | $ 186,821 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Materials and supplies inventory | $ 143.9 | $ 143 |
Hydrocarbons inventory | $ 5.6 | $ 9.1 |
Accounting Policies - Schedul_2
Accounting Policies - Schedule of Oil and Gas Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 447,848 | $ 272,342 | $ 870,139 | $ 671,084 |
Provisional oil sales contracts | 5,904 | (2,118) | (21,106) | 220 |
Oil and gas revenue | 450,900 | 273,255 | 870,003 | 667,495 |
Oil and gas revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Provisional oil sales contracts | 3,052 | 913 | (136) | (3,589) |
Oil and gas revenue | 450,900 | 273,255 | 870,003 | 667,495 |
Equatorial Guinea | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 36,831 | 37,542 | 116,061 | 107,739 |
Ghana | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 334,917 | 143,060 | 590,554 | 380,579 |
U.S. Gulf of Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 76,100 | $ 91,740 | $ 163,524 | $ 182,766 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - Keathley Canyon Blocks 920 And 964 - Tiberius | 1 Months Ended | |
Mar. 31, 2024 | Feb. 29, 2024 | |
Business Acquisition [Line Items] | ||
Participating interest percentage acquired (as a percent) | 16.70% | |
Participation interest (as a percent) | 50% | 33.30% |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Joint interest billings, net | $ 28,192 | $ 35,632 |
Oil sales | 73,042 | 64,958 |
Other current receivables | 11,890 | 20,143 |
Total receivables | 113,124 | 120,733 |
Long-term receivables | $ 328,533 | $ 325,181 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Oil and Gas Joint Interest Billing Receivables [Line Items] | |||||
Long-term receivables | $ 328,533 | $ 328,533 | $ 325,181 | ||
Tweneboa Enyenra And Ntomme Discoveries | Ghana National Petroleum Corporation | |||||
Oil and Gas Joint Interest Billing Receivables [Line Items] | |||||
Paying interest, percentage | 5% | ||||
National Oil Companies of Mauritania And Senegal | Carry Advance Agreements | |||||
Oil and Gas Joint Interest Billing Receivables [Line Items] | |||||
Long-term receivables | 261,800 | $ 261,800 | 259,200 | ||
Accrued interest on balance due | 46,700 | 46,700 | 37,300 | ||
Interest income, long-term notes receivable | 4,700 | $ 3,800 | 9,400 | $ 7,300 | |
Ghana National Petroleum Corporation | Tweneboa Enyenra And Ntomme Discoveries | |||||
Oil and Gas Joint Interest Billing Receivables [Line Items] | |||||
Long-term receivables | $ 20,100 | $ 20,100 | $ 28,700 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Oil and gas properties: | |||||
Proved properties | $ 8,113,221 | $ 8,113,221 | $ 7,600,252 | ||
Unproved properties | 482,460 | 482,460 | 423,050 | ||
Total oil and gas properties | 8,595,681 | 8,595,681 | 8,023,302 | ||
Accumulated depletion | (4,042,252) | (4,042,252) | (3,868,946) | ||
Oil and gas properties, net | 4,553,429 | 4,553,429 | 4,154,356 | ||
Other property | 65,488 | 65,488 | 65,095 | ||
Accumulated depreciation | (60,604) | (60,604) | (59,222) | ||
Other property, net | 4,884 | 4,884 | 5,873 | ||
Property and equipment, net | 4,558,313 | $ 4,077,821 | 4,558,313 | $ 4,077,821 | $ 4,160,229 |
Depletion expense | $ 81,100 | $ 82,000 | $ 173,300 | $ 183,600 |
Suspended Well Costs - Schedule
Suspended Well Costs - Schedule of Suspended Well Costs (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) project | Dec. 31, 2023 USD ($) project | |
Reconciliation of capitalized exploratory well costs on completed wells | ||
Beginning balance | $ 211,959 | |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 16,004 | |
Reclassification due to determination of proved reserves | 0 | |
Capitalized exploratory well costs charged to expense | 0 | |
Ending balance | 227,963 | |
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 | 63,795 | $ 54,274 |
Exploratory well costs capitalized for a period of one to five years | 36,396 | 34,775 |
Exploratory well costs capitalized for a period of six to ten years | 127,772 | 122,910 |
Ending balance | $ 227,963 | $ 211,959 |
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 | |
Mar. 31, 2024 | 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 | 2 years |
Debt - Schedule of Instruments
Debt - Schedule of Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 |
Line of Credit Facility [Line Items] | |||||
Total long-term debt | $ 2,650,000 | $ 2,425,000 | |||
Unamortized deferred financing costs and discounts | (54,704) | (34,086) | |||
Long-term debt, net | 2,595,296 | 2,390,914 | |||
Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Unamortized deferred financing costs and discounts | 11,200 | 13,300 | |||
Facility | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Unamortized deferred financing costs and discounts | 31,300 | 20,800 | |||
Facility | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Total long-term debt | 750,000 | 925,000 | |||
7.125% Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (as a percent) | 7.125% | ||||
Total long-term debt | 650,000 | 650,000 | |||
7.750% Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (as a percent) | 7.75% | ||||
Total long-term debt | 400,000 | 400,000 | |||
$7.500% Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (as a percent) | 7.50% | ||||
Total long-term debt | $ 450,000 | $ 450,000 | |||
3.125% Convertible Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (as a percent) | 3.125% | 3.125% | |||
Total long-term debt | $ 400,000 | $ 0 | |||
Unamortized deferred financing costs and discounts | $ 12,200 | $ 0 |
Debt - Facility (Details)
Debt - Facility (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Oct. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt modifications and extinguishments | $ 22,531 | $ 0 | $ 22,531 | $ 0 | ||
Revolving Credit Facility | Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,350,000 | $ 1,250,000 | ||||
Debt extension (in years) | 3 years | |||||
Available borrowing base | $ 1,210,000 | |||||
Debt modifications and extinguishments | 22,000 | |||||
Undrawn availability | $ 455,000 | $ 455,000 | ||||
Interval period for payment of interest (in months) | 6 months | |||||
Commitment fees percentage | 30% | |||||
Unavailable capacity commitment fee percentage | 20% | |||||
Revolving Credit Facility | Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Increase in interest margin (as a percent) | 0.0025 | |||||
Applicable margin (as a percent) | 4% | |||||
Revolving Credit Facility | Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Increase in interest margin (as a percent) | 0.0050 | |||||
Applicable margin (as a percent) | 5.50% |
Debt - Corporate Revolver (Deta
Debt - Corporate Revolver (Details) - Revolving Credit Facility - Corporate Revolver - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Apr. 30, 2024 | Apr. 01, 2024 | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 165,000,000 | $ 250,000,000 | |
Amount outstanding | $ 0 | ||
Undrawn availability | 165,000,000 | ||
Deferred financing costs | $ 6,100,000 | ||
Applicable margin (as a percent) | 7% | ||
Interest payment interval period maximum | 6 months | ||
Commitment fee percentage | 30% |
Debt - Senior Notes and Capped
Debt - Senior Notes and Capped Call Transaction (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |||||||||
Mar. 31, 2024 USD ($) | Oct. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | Apr. 30, 2019 USD ($) | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) well_option $ / shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) tradingDay $ / shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||||||||
Purchase of capped call transactions | $ 49,800 | $ 0 | |||||||||
7.125% Senior Notes | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 7.125% | ||||||||||
Debt, face amount | $ 650,000 | ||||||||||
Proceeds from debt, net of issuance costs | $ 640,000 | ||||||||||
7.750% Senior Notes | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 7.75% | ||||||||||
Debt, face amount | $ 400,000 | ||||||||||
Proceeds from debt, net of issuance costs | $ 395,000 | ||||||||||
$7.500% Senior Notes | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 7.50% | ||||||||||
Debt, face amount | $ 450,000 | ||||||||||
Proceeds from debt, net of issuance costs | $ 444,400 | ||||||||||
3.125% Convertible Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, conversion price (in dollars per share) | $ / shares | $ 7.02 | $ 7.02 | $ 7.02 | $ 7.02 | $ 7.02 | ||||||
3.125% Convertible Senior Notes | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | |||||
Debt, face amount | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | ||||||
Proceeds from debt, net of issuance costs | $ 390,400 | ||||||||||
Threshold trading days | 20 | 20 | |||||||||
Threshold consecutive trading days | well_option | 30 | ||||||||||
Threshold percentage of stock price trigger | 130% | ||||||||||
Debt instrument, number of business days | 5 days | 5 days | 5 days | 5 days | 5 days | ||||||
Debt instrument, consecutive trading period | 5 days | 5 days | 5 days | 5 days | 5 days | ||||||
Percent of measurement period of conversion rate (as a percent) | 0.98 | 0.98 | 0.98 | 0.98 | 0.98 | ||||||
Debt instrument, conversion ratio | 0.1424501 | ||||||||||
Debt instrument, consecutive trading period based on daily conversion value | well_option | 40 | ||||||||||
Redemption price percentage | 100% | ||||||||||
Aggregate amount outstanding and not subject to redemption | $ 75,000 | $ 75,000 | $ 75,000 | $ 75,000 | $ 75,000 | ||||||
Unamortized deferred financing costs | $ 9,600 | $ 9,600 | $ 9,600 | $ 9,600 | $ 9,600 | ||||||
Debt instrument, interest rate (as a percent) | 3.57% | 3.57% | 3.57% | 3.57% | 3.57% | ||||||
Purchase of capped call transactions | $ 49,800 | ||||||||||
Debt instrument, capped call transactions, initial cap price (in dollars per share) | $ / shares | $ 10.80 | ||||||||||
Premium over last reported price of common stock (as a percent) | 100% | ||||||||||
3.125% Convertible Senior Notes | Senior Notes | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold trading days | tradingDay | 41 |
Debt - Principal Debt Repayment
Debt - Principal Debt Repayments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Total | $ 2,650,000 | $ 2,425,000 |
2024 | 0 | |
2025 | 0 | |
2026 | 650,000 | |
2027 | 400,000 | |
2028 | 642,130 | |
Thereafter | $ 957,870 |
Debt - Interest and Other Finan
Debt - Interest and Other Financing Costs, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 53,168 | $ 51,965 | $ 107,937 | $ 100,480 |
Amortization—deferred financing costs | 2,256 | 2,530 | 4,655 | 5,081 |
Debt modifications and extinguishments | 22,531 | 0 | 22,531 | 0 |
Capitalized interest | (41,525) | (33,688) | (83,926) | (63,891) |
Deferred interest | (1,010) | 670 | (2,982) | 353 |
Interest income | (6,233) | (4,445) | (10,874) | (8,586) |
Other, net | 8,092 | 7,339 | 16,386 | 15,502 |
Interest and other financing costs, net | $ 37,279 | $ 24,371 | $ 53,727 | $ 48,939 |
Debt - Interest and Financing C
Debt - Interest and Financing Costs, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||||
Cash payments for interest | $ 61,000 | $ 61,000 | $ 91,400 | $ 96,400 |
Capitalized interest | $ 41,525 | $ 33,688 | $ 83,926 | $ 63,891 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Oil Derivative Contracts (Details) - Dated Brent - Term July 2024 To December 2024 | 6 Months Ended |
Jun. 30, 2024 $ / bbl MBbls | |
Three-way collars | |
Derivative Financial Instruments | |
Volume | MBbls | 4,000 |
Weighted Average Price per Bbl | |
Net deferred premium payable/(receivable) (usd per bbl) | 1.15 |
Sold Put (usd per bbl) | 45 |
Floor (usd per bbl) | 70 |
Ceiling (usd per bbl) | 93.12 |
Two-way collars | |
Derivative Financial Instruments | |
Volume | MBbls | 1,000 |
Weighted Average Price per Bbl | |
Net deferred premium payable/(receivable) (usd per bbl) | 0.46 |
Sold Put (usd per bbl) | 0 |
Floor (usd per bbl) | 70 |
Ceiling (usd per bbl) | 100 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - Dated Brent - Term January 2025 To June 2025 - Two-way collars - Subsequent Event | 1 Months Ended |
Jul. 31, 2024 $ / bbl MBbls | |
Derivative Financial Instruments | |
Volume | MBbls | 0.0020 |
Floor (usd per bbl) | 70 |
Ceiling (usd per bbl) | 95 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Derivative Instruments and Gain/(Loss) from Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | $ 0 | $ 8,346 |
Derivatives assets—long-term | 0 | 1,594 |
Derivatives liabilities—current | (6,710) | (3,103) |
Derivatives not designated as hedging instruments | ||
Derivative instruments, Balance Sheet Location | ||
Total derivatives not designated as hedging instruments | (6,975) | 6,765 |
Derivatives not designated as hedging instruments | Commodity | ||
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | 0 | 8,346 |
Derivatives assets—long-term | 0 | 1,594 |
Derivatives liabilities—current | (6,710) | (3,103) |
Derivatives not designated as hedging instruments | Provisional oil sales | ||
Derivative instruments, Balance Sheet Location | ||
Derivatives liabilities—current | $ (265) | $ (72) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Location of Gain (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative instruments, Location of Gain/(Loss) | ||||
Amount of Gain/(Loss) | $ 5,904 | $ (2,118) | $ (21,106) | $ 220 |
Provisional oil sales | Oil and gas revenue | ||||
Derivative instruments, Location of Gain/(Loss) | ||||
Amount of Gain/(Loss) | 3,052 | 913 | (136) | (3,589) |
Commodity | Derivatives, net | ||||
Derivative instruments, Location of Gain/(Loss) | ||||
Amount of Gain/(Loss) | $ 2,852 | $ (3,031) | $ (20,970) | $ 3,809 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company's Assets and Liabilities (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Liabilities: | ||
Total derivatives not designated as hedging instruments | $ (6,975) | $ 6,765 |
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 | (6,975) | 6,765 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Total derivatives not designated as hedging instruments | 0 | 0 |
Commodity derivatives | ||
Assets: | ||
Derivative asset, fair value | 0 | 9,940 |
Liabilities: | ||
Derivative liability, fair value | (6,710) | (3,103) |
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 | 0 | 9,940 |
Liabilities: | ||
Derivative liability, fair value | (6,710) | (3,103) |
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 | (72) | |
Liabilities: | ||
Derivative liability, fair value | 265 | |
Provisional oil sales | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Liabilities: | ||
Derivative liability, fair value | 0 | |
Provisional oil sales | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivative asset, fair value | (72) | |
Liabilities: | ||
Derivative liability, fair value | 265 | |
Provisional oil sales | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivative asset, fair value | $ 0 | |
Liabilities: | ||
Derivative liability, fair value | $ 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, 2024 | Dec. 31, 2023 | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 |
Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 2,632,264 | $ 2,414,921 | |||
Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 2,632,208 | 2,335,049 | |||
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 | 647,553 | 646,912 | |||
7.125% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 642,733 | 622,824 | |||
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 | 397,156 | 396,718 | |||
7.750% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 391,556 | 374,764 | |||
$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 | 446,675 | 446,291 | |||
$7.500% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 429,255 | $ 412,461 | |||
3.125% Convertible Senior Notes | Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 3.125% | 3.125% | |||
3.125% Convertible Senior Notes | Senior Notes | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 390,880 | $ 0 | |||
3.125% Convertible Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 418,664 | 0 | |||
Facility | Revolving Credit Facility | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 750,000 | 925,000 | |||
Facility | Revolving Credit Facility | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 750,000 | $ 925,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | 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% | |||||||
$7.500% Senior Notes | Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 7.50% | |||||||
3.125% Convertible Senior Notes | Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% |
Equity-based Compensation - Nar
Equity-based Compensation - Narrative (Details) - LTIP - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense recognized | $ 10,500,000 | $ 11,100,000 | $ 17,800,000 | $ 21,200,000 |
Tax benefit | 1,700,000 | 1,900,000 | 2,800,000 | 3,700,000 |
Net tax (windfall) shortfall related to equity-based compensation | 0 | (500,000) | (9,500,000) | (3,100,000) |
Fair value of awards vested | $ 1,400,000 | $ 3,800,000 | $ 81,600,000 | $ 44,800,000 |
Vesting period (in years) | 3 years | |||
Number of shares remaining available for grant (in shares) | 10.5 | 10.5 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense not yet recognized | $ 47,500,000 | $ 47,500,000 | ||
Weighted average period over which compensation expense is to be recognized (in years) | 1 year 11 months 15 days | |||
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) | $ 8.64 | |||
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% | |||
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) | $ 13.06 | |||
Expected volatility | 105% | |||
Risk-free interest rate (as a percent) | 4.10% |
Equity-based Compensation - Sch
Equity-based Compensation - Schedule of Awards (Details) - LTIP shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Service Vesting Restricted Stock Units | |
Outstanding unvested awards activity | |
Outstanding at the beginning of the period (in shares) | shares | 4,710 |
Granted (in shares) | shares | 4,314 |
Forfeited (in shares) | shares | (306) |
Vested (in shares) | shares | (3,966) |
Outstanding at the end of the period (in shares) | shares | 4,752 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ 5.77 |
Granted (in dollars per share) | 6.31 |
Forfeited (in dollars per share) | 6.27 |
Vested (in dollars per share) | 2.95 |
Outstanding at the end of the period (in dollars per share) | $ 6.41 |
Market/Service Vesting Restricted Stock Units | |
Outstanding unvested awards activity | |
Outstanding at the beginning of the period (in shares) | shares | 12,370 |
Granted (in shares) | shares | 6,152 |
Forfeited (in shares) | shares | (423) |
Vested (in shares) | shares | (9,286) |
Outstanding at the end of the period (in shares) | shares | 8,813 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ 6.59 |
Granted (in dollars per share) | 8.64 |
Forfeited (in dollars per share) | 9.58 |
Vested (in dollars per share) | 3.91 |
Outstanding at the end of the period (in dollars per share) | 9.05 |
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) | $ 13.06 |
Vesting percentage of the awards granted (as a percent) | 200% |
Percent threshold target for grants and forfeitures (as a percent) | 100% |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Taxes | ||||
Income before income taxes | $ 135,124 | $ 53,183 | $ 277,093 | $ 192,815 |
United States | ||||
Income Taxes | ||||
Income before income taxes | (40,629) | (24,529) | (75,042) | (49,123) |
Foreign | ||||
Income Taxes | ||||
Income before income taxes | $ 175,753 | $ 77,712 | $ 352,135 | $ 241,938 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 56% | 56% | 45% | 45% |
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, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Numerator: | |||||||
Net income allocable to common stockholders | $ 59,770 | $ 91,686 | $ 23,345 | $ 83,309 | $ 151,456 | $ 106,654 | |
Weighted average number of shares outstanding: | |||||||
Basic (in shares) | 471,599 | 459,984 | 469,821 | 459,155 | |||
Restricted stock units (in shares) | 8,573 | 19,032 | 10,003 | 19,747 | |||
Shares issuable assuming conversion of Convertible Senior Notes (in shares) | 0 | 0 | 0 | 0 | |||
Diluted (in shares) | 480,172 | 479,016 | 479,824 | 478,902 | |||
Net income per share: | |||||||
Basic (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.32 | $ 0.23 | |||
Diluted (in dollars per share) | $ 0.12 | $ 0.05 | $ 0.32 | $ 0.22 | |||
Outstanding restricted stock units excluded from the computations of diluted net income per share (in shares) | 1,200 | 1,800 | 2,800 | 1,400 | |||
3.125% Convertible Senior Notes | Senior Notes | |||||||
Net income per share: | |||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2024 USD ($) | Feb. 28, 2019 USD ($) agreement | Jun. 30, 2024 USD ($) well | Dec. 31, 2023 USD ($) | |
Operating Leased Assets [Line Items] | ||||
Estimated decommissioning costs | $ 148.9 | |||
Commitments estimated period | 13 years | |||
Greater Tortue FPSO | BP Operator | ||||
Operating Leased Assets [Line Items] | ||||
Contract liability, noncurrent | $ 200.2 | |||
National Oil Companies of Mauritania And Senegal | Carry Advance Agreements | ||||
Operating Leased Assets [Line Items] | ||||
Number of agreements | agreement | 2 | |||
Share of development costs to be financed, up to | $ 370 | |||
Long-term receivables | $ 261.8 | $ 259.2 | ||
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 | $ 172.9 | $ 194.1 |
Additional Financial Informat_3
Additional Financial Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued liabilities: | ||
Exploration, development and production | $ 111,735 | $ 90,054 |
Revenue payable | 12,785 | 20,506 |
Current asset retirement obligations | 1,357 | 2,808 |
General and administrative expenses | 20,443 | 29,766 |
Interest | 51,222 | 36,410 |
Income taxes | 87,357 | 111,212 |
Taxes other than income | 1,578 | 1,029 |
Derivatives | 924 | 1,372 |
Other | 15,502 | 9,658 |
Accrued liabilities | $ 302,903 | $ 302,815 |
Additional Financial Informat_4
Additional Financial Information - Schedule of Changes in Asset Retirement Obligations (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Asset retirement obligations: | |
Beginning asset retirement obligations | $ 346,786 |
Liabilities incurred during period | 10,762 |
Liabilities settled during period | (638) |
Revisions in estimated retirement obligations | (812) |
Accretion expense | 16,334 |
Ending asset retirement obligations | $ 372,432 |
Additional Financial Informat_5
Additional Financial Information - Other Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Additional Financial Information | ||||
(Gain) loss on disposal of inventory | $ (105) | $ 2,704 | $ 27 | $ 2,939 |
(Gain) loss on asset retirement obligations liability settlements | (2,341) | 0 | (3,187) | 115 |
Other, net | 4,608 | 2,075 | 7,351 | 3,755 |
Other expenses, net | $ 2,162 | $ 4,779 | $ 4,191 | $ 6,809 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 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, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | $ 450,900 | $ 273,255 | $ 870,003 | $ 667,495 | |||
Other income, net | 36 | 60 | 72 | (313) | |||
Total revenues and other income | 450,936 | 273,315 | 870,075 | 667,182 | |||
Oil and gas production | 150,733 | 63,579 | 244,351 | 147,515 | |||
Exploration expenses | 13,235 | 11,015 | 25,295 | 23,015 | |||
General and administrative | 25,161 | 23,444 | 53,426 | 52,611 | |||
Depletion, depreciation and amortization | 90,094 | 89,913 | 191,022 | 199,287 | |||
Interest and other financing costs, net | 37,279 | 24,371 | 53,727 | 48,939 | |||
Derivatives, net | (2,852) | 3,031 | 20,970 | (3,809) | |||
Other expenses, net | 2,162 | 4,779 | 4,191 | 6,809 | |||
Total costs and expenses | 315,812 | 220,132 | 592,982 | 474,367 | |||
Income (loss) before income taxes | 135,124 | 53,183 | 277,093 | 192,815 | |||
Income tax expense | 75,354 | 29,838 | 125,637 | 86,161 | |||
Net income | 59,770 | $ 91,686 | 23,345 | $ 83,309 | 151,456 | 106,654 | |
Consolidated capital expenditures, net | 215,416 | 169,645 | 501,644 | 376,078 | |||
Property and equipment, net | 4,558,313 | 4,077,821 | 4,558,313 | 4,077,821 | $ 4,160,229 | ||
Total assets | 5,389,310 | 4,807,619 | 5,389,310 | 4,807,619 | $ 4,938,134 | ||
Operating Segments | Ghana | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 336,388 | 146,850 | 588,532 | 380,100 | |||
Other income, net | 0 | 0 | 1 | (425) | |||
Total revenues and other income | 336,388 | 146,850 | 588,533 | 379,675 | |||
Oil and gas production | 78,248 | 21,627 | 96,295 | 51,236 | |||
Exploration expenses | 2,312 | 163 | 2,252 | 637 | |||
General and administrative | 3,289 | 3,284 | 6,878 | 7,446 | |||
Depletion, depreciation and amortization | 48,402 | 42,347 | 96,690 | 100,108 | |||
Interest and other financing costs, net | 12,528 | 8,408 | 25,797 | 28,167 | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | (2,856) | 2,903 | 20,983 | (3,655) | |||
Total costs and expenses | 141,923 | 78,732 | 248,895 | 183,939 | |||
Income (loss) before income taxes | 194,465 | 68,118 | 339,638 | 195,736 | |||
Income tax expense | 71,165 | 24,465 | 114,710 | 69,864 | |||
Net income | 123,300 | 43,653 | 224,928 | 125,872 | |||
Consolidated capital expenditures, net | 47,188 | 83,556 | 111,664 | 149,478 | |||
Property and equipment, net | 1,063,384 | 1,262,286 | 1,063,384 | 1,262,286 | |||
Total assets | 3,492,701 | 3,198,853 | 3,492,701 | 3,198,853 | |||
Operating Segments | Equatorial Guinea | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 38,412 | 34,665 | 117,947 | 104,629 | |||
Other income, net | 0 | 10 | 0 | 10 | |||
Total revenues and other income | 38,412 | 34,675 | 117,947 | 104,639 | |||
Oil and gas production | 19,679 | 14,840 | 60,705 | 43,923 | |||
Exploration expenses | 2,196 | 1,796 | 3,382 | 4,083 | |||
General and administrative | 1,205 | 1,151 | 2,745 | 2,662 | |||
Depletion, depreciation and amortization | 9,298 | 8,557 | 23,892 | 22,083 | |||
Interest and other financing costs, net | (801) | (699) | (1,595) | (1,386) | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | (2,350) | 383 | (2,353) | (47) | |||
Total costs and expenses | 29,227 | 26,028 | 86,776 | 71,318 | |||
Income (loss) before income taxes | 9,185 | 8,647 | 31,171 | 33,321 | |||
Income tax expense | 4,138 | 3,775 | 12,563 | 13,360 | |||
Net income | 5,047 | 4,872 | 18,608 | 19,961 | |||
Consolidated capital expenditures, net | 33,621 | 17,823 | 78,240 | 24,956 | |||
Property and equipment, net | 483,773 | 401,672 | 483,773 | 401,672 | |||
Total assets | 2,217,658 | 1,610,111 | 2,217,658 | 1,610,111 | |||
Operating Segments | Mauritania/Senegal | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 0 | 0 | 0 | 0 | |||
Other income, net | 0 | 0 | 0 | 0 | |||
Total revenues and other income | 0 | 0 | 0 | 0 | |||
Oil and gas production | 18,166 | 0 | 18,166 | 0 | |||
Exploration expenses | 4,071 | 3,605 | 9,247 | 8,219 | |||
General and administrative | 2,101 | 1,830 | 5,266 | 4,803 | |||
Depletion, depreciation and amortization | 227 | 207 | 451 | 402 | |||
Interest and other financing costs, net | (34,933) | (29,547) | (70,765) | (55,649) | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | 3,627 | 1,516 | 5,230 | 2,721 | |||
Total costs and expenses | (6,741) | (22,389) | (32,405) | (39,504) | |||
Income (loss) before income taxes | 6,741 | 22,389 | 32,405 | 39,504 | |||
Income tax expense | 0 | 0 | 0 | 0 | |||
Net income | 6,741 | 22,389 | 32,405 | 39,504 | |||
Consolidated capital expenditures, net | 84,622 | 46,689 | 211,196 | 149,751 | |||
Property and equipment, net | 2,065,242 | 1,599,864 | 2,065,242 | 1,599,864 | |||
Total assets | 3,008,000 | 2,340,829 | 3,008,000 | 2,340,829 | |||
Operating Segments | U.S. Gulf of Mexico | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 76,100 | 91,740 | 163,524 | 182,766 | |||
Other income, net | 975 | 1,067 | 1,485 | 2,086 | |||
Total revenues and other income | 77,075 | 92,807 | 165,009 | 184,852 | |||
Oil and gas production | 34,640 | 27,112 | 69,185 | 52,356 | |||
Exploration expenses | 3,125 | 3,552 | 8,012 | 7,177 | |||
General and administrative | 5,514 | 4,673 | 11,372 | 9,807 | |||
Depletion, depreciation and amortization | 31,811 | 38,449 | 69,269 | 75,964 | |||
Interest and other financing costs, net | (4,301) | 3,000 | (8,393) | 6,092 | |||
Derivatives, net | 0 | 0 | 0 | 0 | |||
Other expenses, net | 1,012 | 1,678 | 1,318 | 2,801 | |||
Total costs and expenses | 71,801 | 78,464 | 150,763 | 154,197 | |||
Income (loss) before income taxes | 5,274 | 14,343 | 14,246 | 30,655 | |||
Income tax expense | 0 | 225 | 80 | 1,065 | |||
Net income | 5,274 | 14,118 | 14,166 | 29,590 | |||
Consolidated capital expenditures, net | 48,454 | 19,639 | 97,735 | 48,319 | |||
Property and equipment, net | 928,566 | 797,556 | 928,566 | 797,556 | |||
Total assets | 4,052,704 | 3,780,742 | 4,052,704 | 3,780,742 | |||
Corporate & Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 0 | 0 | 0 | 0 | |||
Other income, net | 34,773 | 42,940 | 100,514 | 70,914 | |||
Total revenues and other income | 34,773 | 42,940 | 100,514 | 70,914 | |||
Oil and gas production | 0 | 0 | 0 | 0 | |||
Exploration expenses | 1,531 | 1,899 | 2,402 | 2,899 | |||
General and administrative | 51,616 | 53,431 | 108,123 | 104,600 | |||
Depletion, depreciation and amortization | 356 | 353 | 720 | 730 | |||
Interest and other financing costs, net | 64,786 | 43,209 | 108,683 | 71,715 | |||
Derivatives, net | (2,852) | 3,031 | 20,970 | (3,809) | |||
Other expenses, net | (123) | 1,331 | (17) | 1,180 | |||
Total costs and expenses | 115,314 | 103,254 | 240,881 | 177,315 | |||
Income (loss) before income taxes | (80,541) | (60,314) | (140,367) | (106,401) | |||
Income tax expense | 51 | 1,373 | (1,716) | 1,872 | |||
Net income | (80,592) | (61,687) | (138,651) | (108,273) | |||
Consolidated capital expenditures, net | 1,531 | 1,938 | 2,809 | 3,574 | |||
Property and equipment, net | 17,348 | 16,443 | 17,348 | 16,443 | |||
Total assets | 24,601,589 | 20,248,787 | 24,601,589 | 20,248,787 | |||
Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Oil and gas revenue | 0 | 0 | 0 | 0 | |||
Other income, net | (35,712) | (43,957) | (101,928) | (72,898) | |||
Total revenues and other income | (35,712) | (43,957) | (101,928) | (72,898) | |||
Oil and gas production | 0 | 0 | 0 | 0 | |||
Exploration expenses | 0 | 0 | 0 | 0 | |||
General and administrative | (38,564) | (40,925) | (80,958) | (76,707) | |||
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 | 2,852 | (3,032) | (20,970) | 3,809 | |||
Total costs and expenses | (35,712) | (43,957) | (101,928) | (72,898) | |||
Income (loss) 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 | $ (31,983,342) | $ (26,371,703) | $ (31,983,342) | $ (26,371,703) |
Business Segment Information _3
Business Segment Information - Consolidated Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting [Abstract] | ||||
Oil and gas assets | $ 552,993 | $ 416,867 | ||
Changes in capital accruals | 7,945 | 1,290 | ||
Exploration expense, excluding unsuccessful well costs and leasehold impairments | 22,610 | 21,702 | ||
Capitalized interest | (83,926) | (63,891) | ||
Other | 2,022 | 110 | ||
Total consolidated capital expenditures, net | $ 215,416 | $ 169,645 | $ 501,644 | $ 376,078 |