KOS - Earnings call transcript Q1 2019

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Operator

Greetings, and welcome to the Kosmos Energy First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jamie Buckland, Vice President, Investor Relations. you. Thank

begin. may You

Jamie Buckland

materials and we all earnings issued presentation website. call. the operator, page the today. the of release joining This slide kosmosenergy.com Both today's accompany morning, our to available thank you, on for Investors you us and are Thank first quarter

particular Our February our made portfolio. on The strategy against to focus presentation XX-Q we with with Capital the Mexico, reviews set addition today. be SEC filed at Markets the in Day progress a will out of latest Gulf the slide we the have the Kosmos the

Joining today and that Chief on Chief to Chairman material and Officer; go Tom Chambers, me through the call Executive Financial Inglis, are Andy Officer. and

conference expectations. Andy. and certain the performance, our statements at our measures SEC also and outlined I in we in certain historical included based on filings. risks and statements in The in such call and filings. prepared this be may turn important accordance SEC to includes At discussion. Management referred statements Before I'd conjunction the measures that are started, future metrics. time, in will get Company's and have provided addition commonly current these forward-looking call should in our looking believes We with GAAP are read to information the to with contained like industry non-GAAP with are These our associated forward-looking to in release over financial in been measures our the in to earnings this refer mention

Andrew Inglis

with Beginning everyone. X. morning, good and Jamie Thanks, Slide

take delivered for of remind Capital highlights Day at the in talk to key about Before the to quarter, we the you I'd Markets February. our messages moment I a like

cash This any provide a business model and free our we significant capital upside. proceeds barrel $X Brent. planned program, sell $XX three disciplined to and which across Mauritania With our portfolio down excludes billion generate margins will over of years generates at flow the per in approximately expect First, our next strong cash. significant from Senegal,

to CAGR at a Over same X% period, XX%. we expect the to grow production of

of Second, ILX we infrastructure-led exploration deep growth. expect we have drive to that near-term a opportunities inventory or

program later year Mexico Gulf four-well we our of expect drill in this Guinea. the prospects first in begun, and ILX to has XXXX Our Equatorial ILX

resource Tcf Third, in XXX gross we world-scale place and have the to a basin. Mauritania with gas of Senegal gas XX in in

around December, interest to opening been interest. the basin the Day, basin point. Our discovery remains final in which our at XX%, to inflection Markets open investment model. in we've value sell a down from XX% Capital and very the exploration Tortue intention through our asymmetric industry creating announced of At value heart basin our reached business the with level decision at pleased created Fourth, we of

to equal roughly million net exploration XXXX And changed. oil which of a one-well have opportunities, year not our finally, prospective to drilling deep to six we're We of an and our XXXX, portfolio mature resources approximately XXXX-XP amount drill to sheet will includes equivalent, Orca expect prudent per Overall, basin opening management continue high two In XXX our XXXX program targeting year-end onwards. from tests wells grade diverse test. balance and barrels has approach reserves.

medium-term return Our short balance and value sheet strength create invest and flexibility business to gives of manage commodity shareholder projects us to cycles. irrespective price the to high properly financial the in

XX,XXX barrels producing high-pressure in February, of delivered spare compressor achieve gave addressed by to around the we which guidance I'll to around gas been Capital against the will now progress oil year, first have XX,XXX update our day. guidance X. now midpoints provide of reliability Day a system quarter, we is agenda. per XX,XXX issues the we per made on that above Slide for about day later with of to the remain with our equivalent mentioned which in currently oil In Turning XXX,XXX I production Markets and available. the Tom In the is at an we've of the barrels Jubilee operator talk full reliability presentation. enhanced The the Ghana, on-track of

rates gas However, remain oil production handling. constrained by

We when oil day. is throughput per per increased field EN-XX and continue are capacity we'll Jubilee of handling to XX,XXX brought increase barrels to TEN, the producing At XXX,XXX day. FPSO the of and opportunities was reach well the enabling to barrels these of the oil gas present the we thereby oil capacity implement production that currently online around to enhancements, nameplate operator hopeful

were to is completed brought reach the when of the producer adding oil adding In capacity well increased of middle XX,XXX offset of online the further dry barrels the expect the day Equatorial further brought to once on-stream dock In Tornado-X ASP successfully on-time, X,XXX on-track our of per back Gulf a gross. is Mexico, facility the levels Production on year. per X,XXX program was decline. oil barrels Helix We barrels the of the gross routine around bought when day was production day was Guinea, the vessel around GOM work of from equivalent Producer around online. oil per increasing

flow dividends, deliver the to on-track cash free to around two free of We generate cash around the Brent. per million Brent, of before approximately barrel at XXXX. more $XX middle Shifting ASP to $XXX amount conversions generation; we significant complete cash $XX flow per in we to $XXX expect increasing At of expect million remain year. to barrel

around within range guidance remain of million. At to on-track forecast million $XXX $XXX was be million, $XXX range target current year-end year our any Mauritania-Senegal the net X.X sell leverage prices, full will the First CapEx XXXX quarter contribution we within our spend down. from to CapEx times, and without

share to the supports free strong and paid which shareholder for per dividend generation year. $X.XXX first the the $X.XX Company quarterly Our it's in returns, approximately quarter flow cash full first of equates

in which with started year on the has Golar pre-FEED now the equivalent rig option has approval expect Mauritania KBR, FPSO and progress of staying Gladden for late Keppel secured million commence with Mexico a G-XX Gladden exploration awarded, program III and work demonstrating we In Deep late third Furthermore, of XXX later we well In Phase in the Turning below Deep. in Phases drilling phases four Equatorial the momentum our mature received In continues Sale from to results final the expected discovery II month. to on of this infrastructure-led the on subsequent barrels vessel. was Kosmos. are together horizon blocks in X apparent commenced is on our Tortue we're the Gulf which to quarter. March, year. Slide that targeting construction well around a first The XXX potential. March We've spud the [ph] target participate awarded million reach prospect FID to and of should XXX Senegal, Guinea, X; next in FLNG bidder recently Tortue wells the to Gimi on Lease is to work December. Gladden construction continuing X million net targeting BP the upon highlights more the Tortue oil spud of recently the well XX high which later. quarter, XX we for this to existing bid, on-track, deeper where the FID from all and barrels in contracts those

assets credible our highly previously would industry prove bids our which in the and around the formally strategy companies; offshore summer. around in and to LNG large Basin-Opening of remains another from announced the would hub strategic central from well and XX so plan XX%, drill ton end to we Mauritania down launched, at the expect considerable the plans see rooms Exploration size The and been Southern interest our Mauritania data open, per significant Regarding in quality sell Mauritania. of process XX XQ, to resource. the has We if interest Senegal you million up Kosmos. annum successful Orca by the to formal gas we our in current XX% value received

signing interest entered the XXI block. and by on quarter, Guinea Congo the PSC the we deepened we a in in During Equatorial EG-XX acquiring Ophir's Brazzaville remainder our position block, Marine the

the debt a to I've first decreased increased sheet as borrowing costs our quarter, before, by and our were approach notes coupon -- XXXX. new Lastly, in has maturities the we notes changed the pushed XXXX refinancing balance not manage with that our our in and due said borrowing costs due lower

recent portfolio. most Moving on the the Kosmos Mexico Gulf addition the of X; to to is Slide

the and and I'd to maturity, the been positioned resource We Gulf to leading our the has development. new significant expectations and unit, of high more basin in better the possessing basin the Kosmos's one focused yet to transaction right costs the has that XXXX. and Gulf time of that, right been far well infrastructure to So oil oil ideas fewer makes a now business is landscape the new like of some so of the Mexico the attractive. gas time; yield are few entered continue and where be service Kosmos density become never it's under basin at is most exceeded. Mexico. capabilities color With in and broaden is amount there technology the have economics of basins; activity the in September, is on in more and on attractive. This despite and competitive been to The lot to of underutilized GOMs world's and is discovered the deepwater a explore independent prolific companies of new There discoveries basin provide portfolio,

acquired made in at have barrels lease expanded participating hopper and inventory keep net with deepening of In strong like Headless commitment developing the of already Sale seismic of participant very securing of of an through equivalent XXXX five X recent last these six Kosmos barrels we pipeline of years Mexico. sales. four oil drill Gulf potential We're or equivalent made and year the which amount shows funding that significant in wells the are I'd months the oil were we on opportunity option is on progress sales we've The development last subsequent entered and the The DGE lease the since the bottom lease XXX of bidder our to multiple we bid Nick we our significant cost. X; of targeting The integrated support bringing for focus estimated since growth attractive in the team are Slide to XXX, in prospects. business. million an of Slide held was through Nearly the to successfully exploration the XX will the and million sale partnerships of transaction, many organically online, resource cultures, Shortly XXX unrest ILX Combined, team; entrepreneurial parent a on, to opportunities and adding significant sale. we enhances of new five we XXX prospect hubs. we prospects shows at that come. quickly million XX dataset. per unrisked similar chart active slide the low-cost a equivalent low per our to discovery wells our providing plan generate DGE, year. new barrels lease driving basin the Turning resource. increase also prospects to so to capturing were strong and million closed production the after X we resource semi-annual we growth able blocks gross oil Mexico to net on bidding a of capability significant March activity the of high bid in prospects Kosmos full a on to Gulf Lease

call inventory years in hub of million Slide is at approximately resource around we targeting five more hub in lease over with field underpinned new the XQ by this the the recent will to depth build the well which year for shows hubs; require this commencing immediate to year. and Zora prospect We're of success, of And list like planned hub in Mississippi net I CapEx first balance and planned three sale guidance. last our sheet, drilling base X million to with now sale lease Mexico shareholder the per which Resolution Capital over turn A the the detail. prospect area. in by of Day, Central planned finally, XQ in I'd strong described resolution assets prospects With to the Gulf Tom the initially the of Markets $XXX the test, supported exploration have inventory, also Tom? Canyon discuss XXXX. to future $XX Vida, oil year. test our

Thomas Chambers

Good everyone. morning, Andy. Thanks,

this financial team in underpins decreasing paid and due healthy Being maturities debt financial Kosmos sheet base substantial in balance par of asset X, our mature high yield of and no that ensures so our our portion plans strength notes X% XXXX. credit to of of liquidity X%. our a at Turning were with facility, stewards significant In oversubscribed revolving X% our same base good commodity two through this last million means have on and over We fees. cost just price discussed, the our margins ability our revolving XX that in utilized over Slide proceeds XXXX, fluctuation, we yield capital enduring successfully that business high the XXXX; executing is pay-off evolution down coupon can and the we XXXX mirrors refinanced reserve strategy. to year, and the facility, $XXX our our shift notes for were reserve Andy until illustrates our this of maturity of the and Kosmos. a lending a both to Slide debt April the resulted both and of properly our focus issued years, In a of of shareholder to execute moving in credit strength rapid lower which in and near-term X.X% bond we managing change keeping facility period. and to

With that domicile; with more significant meaningful the base. soon inclusion float, of Kosmos be shareholder increase heavily broader float. eligible public we believe weighted should private of transitioned a for shareholder changing that will equity to from benefits investors equity this set investors our the index a assets U.S. During in towards U.S. to and now being has our more enhanced base with guard, that bring diverse

production our XX; averaged of at guidance Andy the midpoint first as our quarter Looking Slide said, above range.

quarter oil Equatorial Helix two was still with first guidance above Ghana, lifted drydock day barrels of million. X.X in guidance. Producer impacting financial production, CapEx approximately Tornado cargos first first the results scheduled the our As cargos in equivalent and during averaged we XX,XXX our quarter with of expected, of were production approximately but in Gulf Likewise, Guinea, Mexico $XXX quarter the range. per line

quarter first flow timing tax in before the by still first accruals We we $XXX approximately prior The quarter cash was of working at expect payments, million including between $XXX cash large capital million dividends, adjustment; payment of the and to quarter this cash $XX generate impacted free Brent Guinea. $XX cash and differences expect at a of year of result fourth before flow year. would Brent dividends approximately to generate free Equatorial

generation second the of free the heavily such, towards cash half weighted As flow XXXX. is

Mexico during of the to at per slide. XXXX remarks, ramp bottom up continually Gulf prepared of operator, XXXX open cargo the quarter coming remains up at well, a During for like short questions. Delta expect production the average day. XX,XXX the is currently we'd shutdown wells In between TEN for the no And production per and planned Equatorial Gulf the second concludes day. that With full expected of each XX,XXX as to we we at our House barrels the full equivalent of shown lift year there Ghana cargoes and in guidance levels. shutdowns and planned, to and call new expected while ramp is XX,XXX footnote our expect Mexico and first to quarter equivalent production is to on online, in XXXX second guidance oil the and quarter, one and of quarter, year three further XX,XXX unchanged production oil barrels in from specific Guinea, The to is

Operator

you. Thank

Thank session. be will a Instructions] conducting We now question-and-answer [Operator you.

question first David from comes proceed your BMO question. of the Our line with with Markets. Please Round Capital

David Round

and wondered Oxy questions I've And with a for [ph], other lot announced were start through of and mentioned actually. in that majors the Hi, I read Dayton with as some one doing with thoughts was are a partner that just in your actually, well, what with the region? as but BP super of of Ghana? the just in opportunities terms relevant obvious of got couple second Chevron last a with you're one could Gulf night there the work pretty to If Mexico the on transaction there of active obviously statement

Andrew Inglis

Yes, David. Thanks, well, Total we're the of obviously news offer for Ghana, digesting potential Algeria. the Oxy's from [ph] contingent and in Mozambique assets

world's take you I I $X billion. got X.X, of for probably think headline a of the view me, think, the Algeria worth if being number around

for know, assets point large attaching a -- Ghana, the Mozambique and So, obvious value you flowing Ghana the cash it the and what world real against $X.X is I me assets in billion is quality Africa. think to and assets gas the resource in that,

are very a has clearly, have is portfolio reached and assets We forward. we project our perspective, in gas in from similar -- moving which a have FID and Mozambique

So I it think Kosmos of places the key on portfolio. simply me, parts demonstrates the industry value some the that strategic to

the Gulf say of Chevron. Mexico, point In an picked as BP, exploration you bring, to the of And our important with work as business real that with demonstrating Shell, terms of on second think you and that We're model we now is question think, partner with I our on majors. an expertise. part the exploration I with ability

that the demonstrated prospect which in And with there think at we've pace players bring the and the with of of the built also is, see we new opportunity in in think the And as the think months in their on landscape majors inventory. to competitive few I see today. we've fundamental sales the six opportunity the demonstrated very is underpins portfolios. Gulf So that Mexico point picture are that lease to work we we've really something but good, Mexico, the I we I the Gulf last

my So, in. transaction and the as really I that remarks, felt build said portfolio really has ability exceeded expectations, move our to exceeded But fronts in the prepared our really the but has all going -- our we expectations. on

David Round

makes Thanks, Great, Andy. sense.

Operator

question Mehta your question. line Sachs. with next with the Neil of comes Goldman Our Please proceed from

Emily Chang

Chang Emily behalf here. on it's Hi, of Neil

spend guys First to question flow maybe talk that cash and to allocation expect down; I exploratory strategy, or cash or the any could spend? can a that's environment, for about you the sell the from development you high Mauritania-Senegal capital capital potential potential have we for at we dividend little injection the about Brent when payments think bit $XX potential see, guys flow is, whether acceleration high

AndrewInglis

Yes, Emily. thanks

at Capital As first we I the sheet of the into discussed X to of cash flow Markets will get range the the use Day, think the balance X.X. to target be

beyond Our the we at allow of top to to said that barrel sustain lower range, per it. get the prices Mauritania proceeds range, were of range, end get I potentially $XX in would to that additional the to us so end

think capital. those are think success and in of high-quality shareholders of think second rate-of-return; Mexico Gulf we and to has obvious one to -- these worse the that important we're we planning I for -- do of use than the which spend. I I if planning drill place on rate-of-return And quality to I if successful, be; say see our to is organic to wanted done average. capital two demand be that wells source to have we we the I a rate over increase go -- years, -- next success think, But back there XX% XX% would the projects, then them slightly and had we're would us that got sort the on we've XX% wells for portfolio the more high could cap some were successful capital opportunities

respond got to debt do and areas we we're respond that which to then So to to going on end to opportunities gives initially, the range flexibility I are that generate think get focus to us to the some those organically. external down the the bottom ourselves work environment we've of and the appropriately

Emily Chang

how been can on follow-up, Jubilee, Great, guys production of improvements you tracking we see past -- that's the made during and quarter have gas And just helpful. should expect just asset the that a that handling discuss quick throughout to we capacity yield? the can

AndrewInglis

sure. Yes,

XQ be rate. as around then on sustain per again, think, doing sort of I is it I wells that added they'll day. couple is around barrels was around help oil the XXX,XXX in and of -- said in to more a There real are late that The XQ; oil challenge come of sort remarks will capacity. my in gas

the moment, feet of in constrained the work the improve have done first system; million gas But has at now per compressor an gas high is the operator we additional available. the handling the so pressure cubic at day. to quarter Now, around XXX standard reliability

day, they you if the in Capital million -- day. go and to plan think Day think, to objective, an back operators, Markets cubic to get per feet than better was get I the I to be feet had XXX XXX December, cubic that million per

So, that's the feet it's XXX to and hard million in capacity the to cubic work that XXX we're will from million doing now unlock oil get additional per that facility. with the operators, day,

Emily Chang

Thank Great. you.

Operator

Our with question Brackett proceed Research. of question. from the with comes Bob Please next your Bernstein line

Bob Brackett

had a the down. Mauritania-Senegal sell around question I

could You that of; like of you making mentioned And your idea terms that Capital partner you large A) of in talk Markets XX BP. companies. a of changed than Day refresh any efficient? B), Has different transaction type about, the finding Can technology thinking? a potentially partner from credible tax

Andrew Inglis

Bob, No, hasn't. it

of I Day, the of the Markets think sort at we four when sort asset. we buyers of Capital are groups talked potential of about

gas the for very there our are in with a development future interested the strong in think of resource. particularly is companies there they a operator -- pool them of participate non-operated see an of this NOCs, in I to -- the that the ability position

IOCs. obvious IOCs of involved. a there are pool second number The And is

large, then, is and see -- that to third see aging the And get resource buyers, we'd potential upstream access the sort independent. trading gas gas of around large is The buyers, asset. to bucket access fourth the around bucket

I the the that And is has depth kicked the as So said room our the result remarks, have mix industry we've my -- of off, data by policies got potential in process management response. come and genuinely open, the real we're presentations started, data through. encouraged have a of

Bob Brackett

ILX notion ILX, they or think i.e. is on way be hubs. that be would right talk about you about to producing it? would future of A assets; and back follow-up this to future still clear, hubs, the be the tied near To when existing

Andrew Inglis

Yes, to the that know, of capital yes. said, is is a infrastructure And, unsold -- was infrastructure think as amount is there again over infrastructure full. you right it's that XX% and in markets about I think way XX% than significant I of I the it Bob, used statistic less XX% the the

there is those and opportunities opportunity targeting multiple and the you there advantage. create competitive tie-backs, significant that we're So so around clearly opportunities sit hubs

Bob Brackett

you. Great, thank

Operator

Our next your with line proceed One the Securities. with question. Capital Tullis Richard question of comes from Please

Richard Tullis

of Just questions. quick a couple

recently couple a the year you available, next see we've about of M&A say, in Mexico. So heard meaningful so? transactions Do Gulf of or the over deals remaining

Andrew Inglis

about we not actually to inventory. there be will of I capability our that a further opportunities. a rate transaction which Look, I company, deepened at think done of with we're DGE, intended very great will addition from But what further perspective, assets. at a consolidation, which was DGE be do, we've think built we've the We set prospect there pleased Yes. the the and was

organically, this is opportunity of today bias growing than our the given rather our doing around organically inorganically, think I set. depth So,

we've business think Portfolio But the our of quality the I in messages today to is built we across Depth there. from of and So, all clearly activity portfolio, to out executing to of we the and Gulf strategy. Mexico one ability grow significantly our will get that's continue want screen the

six we've in to first inorganic activity. view biases obviously and So I'm our achieved what the really pleased that at months, future

Richard Tullis

of helpful. are side that's compared you, Thank over half say, quarters, Gulf of to, couple second the planned the Mexico what wells of on next several XXXX? trend cost have seeing you And you

Andrew Inglis

Jamie on competitive We've just that as XQ operated rates. some we're [ph] -- speak very we'll in we're got seeing and but XQ, the actually we change. will wells rigs lead for drill the taking

seeing we're So not supply the increase in any costs.

Operator

your Please next the of Johnson Instructions] comes Meade proceed Charles Our question. question [Operator Rice. from with with line

Charles Meade

or Good features? down, to -- sell morning, you. so, Andy is like price whereby you through sell relevant thin go to the there process decide or that the would team is whole have scenario this rest whatever and of actually Andy, reasonably a the out what the there. Tom, Thank exit wise can And and you imagine and completely if you position? Mauritania-Senegal other look to on

Andrew Inglis

Yes.

I think, Charles, commercial than it's strategy is it more basis. around the

and I add a think, stay there as both through be the that like to to that will both operator with actually this unlocking we think a message value forward, continuing it's Mauritania-Senegal. governments governments. whole an We to the we to BP continue important beginning deal important start both we're as see about you here and in partnership our relationships And of an with the we're basin. role to the to partner in at were in the process moving

we think temps the around comfortable XX% feel and I So, holding, very holding.

size. per position, it of Our grow self-financing a annum no Kosmos's a small objective ton $XX for company is is option, sort XX% can where significant thing that of we it's potential a million

remain positive Mauritania Senegal. very I and So, about

further I gas There potential the drilling, the have exploration a for still while. resource We big is around there. think,

So we to the something as for see remaining value add partnership. we of that this good the for it's and that country is and will buy good the part partnership

for value the more coming create in will we as partner think result. I a

Charles Meade

kind whether an what process going old a then should XD you should for or of sense going about exists in question currently be is where step if of it's or us I we to Republic could and and Congo. Can your to give a about? first what your new And XD offshore data you're think we perhaps position timeline ask that what

Andrew Inglis

the XX. as and base entered on one Marine PSC with we've and say the you So

There that Kosmos done. shoot of the a process. We play genre so -- from the we is seismic, is reasonable shoot the is what be existing the in XD. much sort step XD will but will in the of database of new very new will first a And

we see and new that potential has concept under excited been explored have about, We and the industry. for a an area which by we're

the important is build queue -- way the out code So the an Congo with And now option. of typical costs in at say go, go link be. cyber may in baby a will then The it Guinea may we outboard link seismic then of do the which [indiscernible]. opportunities a it's is of it's low-entry to is ILX of in to is range the

a year two part quality can be portfolio wells per this will Congo disease is that. So that of support and

Charles Meade

detail. the for Thanks

Andrew Inglis

John. Thanks, Great.

Operator

James. next question. question with the Please Our your comes with proceed from Pavel Raymond line Molchanov of

Pavel Molchanov

that; words footprint or for you taking realistically other just Suriname three that's the countries, one; more, guys kind handle? eight a Is a total. as producing is you high level three so two want beyond that and of operating would and Thanks you for in to so another enough? where about I like, in countries at you've geographic I today of that Congo then Sao are in diversified as you're size your maybe at XXXX, Tome drilling ask have think In up a the question. and -- then countries, Can company level, much are

Andrew Inglis

Pavel. question, Good

from Mexico, diversified Equatorial country, barrels this Gulf production a the Ghana target at so we XX,XXX; the a the Markets XXXX you to XX,XXX today Capital significant of as that look and a day growth, from slide base but and was we've XX,XXX the know Guinea at it this over one had production to grown think, it I Ghana. to Day, of -- at actually simply up just you we year

so there, Guinea, at And I perspective, got Mexico, the we've diversification Gulf So built now look if the the diversification and from to portfolio of guidance from the despite a know having in production the our keep multiple from enables as two we've that Equatorial fields us well. necessary distribution. the we've that think same; the production you And in year fields Ghana you right actually. challenges to Ghana gone literally for

and a about has a focus. So, it's of source class Mauritania growth as I through got a the is world development near-term it discussed, we and going and opportunity sell-down feel which be Senegal, in long-term but that has process We've value-add good that. scale to

many do lead remain a Basin-Opening you've can't and the And multiple in these about of opportunities. the you we So to way we focused rightly having what is depth talked where for of Exploration company projects then, us it big is a do. sort like have of -- BP

drilling gives from of production we've five about -- XP the come has depth portfolio deliver years the to I'm wells opportunities. we're long-term while to -- XX upside how inventory and targeting the which gas, production excited going XXX resource, the now. from barrels think you So, which in it's the retaining is of bit growth to Gulf clear near-term the I asymmetric prospect most ILX and is now. is a continuing the million, of a growth the but million is the we it sense opening -- five come right growth real can is Mexico from I going XX clear where about of about where think, now ILX portfolio, clear to depths got four And thematic. about that million We're currently a per year, talking from, got I about, that diversification We're we're real we've got think of base

point now the yes, the and we're today, the So, cash, need got pretty well-balanced I we've and we managing is programmatically capital. a means believe great That's the just to that portfolio, hope to important deliver deliver. balance, right?

Pavel Molchanov

and in that fiscal moment, which you're places that you've of even is now And in eight you're others; past the from at a most context, I and the had a term the all in in the perspective, suppose footprint in advantaged? countries

Andrew Inglis

on we our Look, to I'm go an But actually, look equivalent. terms, the up pick important Pavel, all as there deepwater point, we large acreage the nature across -- is in. all frontier into a because that portfolio. can part where not at get all depends It that early we're good they when fiscal sort the entry, depends pick child going favorite capital them we top going compete. of is screening know positions because price, of regard we on going quartile we of is they're it in areas can we and We criteria

Pavel Molchanov

Appreciate enough. Fair it.

Andrew Inglis

Great. Pavel. Thanks,

Operator

Our your the RBC. next with Please Al Stanton of question. line question with comes proceed from

Al Stanton

a Good quick question, afternoon. actually. It's very just

Slide sort the key wondering talking so On for what balanced also about suggest potential hubs? used of type to and in was be Mexico. the portfolio or seem talking will the you your Gulf deals of X, a further portfolio working additions You're I target interest; down rationalization for you that title

Andrew Inglis

-- this think, look talked Gulf about of was I I is of very Al. corporate different, What around the Mexico. deals

it exploration with So, depends. clearly prospect, any

a don't of get licenses; several As prospect be it. so on you you over of can always XXX% know, Mexico, split Gulf the

partner it from we some that bring So, partnerships come will the have Others, want may infrastructure. of access a us to a in prospects give because piece may of natural to it.

that interest So, there this access we ability well swap will core which is around a want to creating prospect is way the infrastructure where working acreage hits blocks, you're and there pre-drill, of way be a to piece position as into several get may the of a the win-win. to get prospect the always the of or aware, a and be a optimization

to of intent will Mexico. is -- that the one will there working is any way the the we of titling obviously we're the material vary that's commerce the in of say Gulf So that but in just done because positions, interest prospect targeting

Operator

you. Thank

at over comments. questions like I have We further closing back this time. to the management turn would to now no floor for

Andrew Inglis

IR joining clarifications. for offices today, need further everyone Thanks be have and in we'll you it. Appreciate us their the team if will any

Operator

teleconference. conclude does gentlemen, and this today's Ladies

have this disconnect a your Thank may wonderful for participation You and day. lines your you at time.

Kosmos Energy (KOS) 6 May 192019 Q1 Earnings call transcript