KOS - Earnings call transcript Q3 2019

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Operator

Greetings. Welcome to Kosmos Energy Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

the Investor to Relations. turn Buckland, host, now President, Vice will conference your over Jamie I Mr. Buckland, may you begin.

Jamie Buckland

our SEC release Thank anticipate And you, accompany the today. the issued Investors us for all today's filing for quarter later operator, and are with the quarter, thanks our This to call. Both Page morning, XX-Q available presentation of a we slide on you today. materials joining third the to earnings on we website. kosmosenergy.com

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

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

to call Andy. At over this the I'll time, turn

Andy Inglis

a by reinforcing generates characteristics strong have portfolio underpins and Jamie Kosmos X:XX)Thanks, accretive and have catalysts, key good morning, the everyone. strategy. the that Start sheet rich and call to define (Auidt investment we our like Kosmos' I'd that balance cash, proposition. distinctive we value start

in our through we Day those with I'd February, detail. Markets consistent Capital them like in to are set out and themes at go more These

over $XX of a a has deliver cash cash of positive free on million flow. approximately current prices, year and million quarter First, in in row In third generated our track at delivers we third to remain $XXX XXXX portfolio flow cash. we the Kosmos that free

context be yield free represents XXXX other E&P cash continues which to competitive in very with indeed this other flow For and a compared sectors. around XX%, companies

or two since Today we're first the ILX Both total. in is Second, pleased ILX the our alongside success discoveries program year, to acquired three our discoveries on Equatorial four in DGE Guinea last in from we GoM infrastructure-led exploration now announce this Kosmos production have wells year. made working. ILX

unsuccessful. was inexpensive With our morning, results announced around The Job which exploration the an million that this targeting resources Kosmos. and X was designed of test was as Moneypenny tail the to well equivalent net the oil barrels we around of of Odd net prospect well, million $X.X costs development

XXXX we more, the ILX in ILX the GoM. event the These prospects have of We're spud success. in near-term and oilfield for resolution GoM both could December. drilling campaign will We be transformational in currently largest two the wells are and our in drilling business

has helped Third, XX announced has around world discovery exploration and hydrocarbon the gas the so deepwater BirAllah the is believe TCF in area. to we’ve impact has largest TCF high field year. in de-risk demonstrated far of this in Kosmos well with recently Orca the a focused We an Orca that the program. discovery place estimated XX Orca the

the the gas year, XX TCF XXX the has a Fourth, of recent a the Mauritania/ increased significant this and with Yakaar basin plus place top range. success Tortue resource the Senegal of total end success had Orca appraisal for we've in estimate to

the into extended As additions, resource we data. of process to a to time the the selldown buyer XXXX allow new more major result pool have evaluate these

balance the has And changed. sheet finally, our conservative approach to managing not

company's down cash to fund free debt. dividend flow the use and to pay continue We

leverage expect with times. X.X around We year of to the end

quarter third Turning to like now in detail. I’d to the discuss three. slide more

$XX generated remains of Kosmos for As million the and within mentioned year quarter expectations, cash targeted in previous in free full with the CapEx line CapEx XQ. the range. was slide, on

cash free the quarter. flat the generated, resulted of revolving facility, impact for quarter. around versus oil XQ XQ Production of barrels our dividend lost day for off Barry, paid taking for With of was will credit production which $X.XXX we the of pay and a equivalent out per the X,XXX we Hurricane in

downtime impacted is program X also now offset Okume was with at at the by slightly It negatively successful completed. by which partially ESP unplanned ESPs Ceiba,

due versus XXXX. deferral enhancement of XQ gas the flat by expect of on first XQ We for work Jubilee company the quarter operator to to the be the to

XX,XXX we year expect by XXXX, a Ghana, around equivalent result, partially in volumes the for lower Gulf per outperformance of than be the Mexico. oil in expected to production barrels As full with day offset

Our we strong the In progress. Guinea, the Gladden Deep. with ILX make we moment; to had assets first from of Mexico, had in Equatorial more on well, and SX that continue Gulf success oil a in

also Last we supports Mauritania and well gas Yakaar-X the to week, domestic during Yakaar-Teranga LNG up Orca-X announced of and extension quarter, continue proved In field discovery we and project. the Senegal, result hub phase the progress. and first make which announced Southern the the appraisal excellent we the

rise continues at a we with the development around by expands to X had around at make quarter appraisal Tortue, which successful finally year complete the Tortue should potential. result which XX% GTA-X resource And to The Phase end. good end, the with well, XX% project progress

exploration to this opening Deep. Gulf Nearly in drilled of Nick the made Turning XX and I Headless to Gladden discoveries, four, slide on and we've since had program like remarks, mentioned Mexico with focus our ago. slide, is DGE we I'd the We’ve progress On as three working. two wells my acquired ILX months in

these demonstrate Headless is short for paybacks development in a tiebacks. expected and result Gladden while projects. in months Nick development. these for Nearly ILX Gladden the Headless Nearly discovery It’s Deep timelines December, development and four rapid times returns XX-month Nick The small came within Deep online online these and higher discoveries quick that of

my to we analogy, of use on fans To are the ILX be which can the year. we currently Gulf our oilfield and prospects doubles, we line, the replace apologies the These much complement run and right in spud with slide, low larger home reserves and larger December. are offers produced prospect a in at Looking to will singles during side potentially baseball that risk of our Resolution, that catalysts, business. for deliver We the that GoM Astro the Mexico portfolio successful. the if can the drilling transformational expect prospects and fellow

to tracked, which drilled seismic on Turning basin. improved the well was well-targeted meters explored our This Muni Rio previous approximately XD well the Santonian reservoir program to at in ILX the morning drilled with in initial fast first was the well around Guinea. edge channel. oil modern the wells concept S-X any potential encountered with be on of our seismic EG. what wells for drilled the in the This heart a XX the our ILX of five, Equatorial areas channel, area. The previous was of were success we of we better of announced the and looks The pay whereas slide net under than the believe development

and Ceiba data, it logging the FPSO the range Okume quality initial a over higher optimum like would be into The puts the XX,XXX to From within well the kilometers back production. we’re field Ceiba we the XX Okume it scalar of is at rate is tie an have work establish than now and per [ph] Ceiba material at which could increment and current the day, barrels solution it to of the to of flow oil and oil given development the the well which this within infrastructure. resource doing tieback looks existing of evaluate

the volumes XXXX seismic delivered is from to the drilling in are Work also additional for XXXX for maturation low existing Final infrastructure. expected of identify to the underway next tieback campaign. early prospects align now prospects the risk around be

the the expect producer. on shows base considerable investment we decision since year ago. GTA-X Ahmeyim made successful we our we six Greater this progress Tortue expanded appraisal and taking use than well at resource as future a a well less Through Tortue to the Slide final

see project as the FID. bottom workstreams XX% almost images done. on particular are table you vessel progress FLNG appraisal with at well the progressing Beyond the the on from since made drilling considerable in Key Phase the can of right, we've and the X

expect be the finished by overall end approximately to XX% project year. We the of the

first estimate for the Tortue Our half remains XXXX. of first for gas

leading the project. will developed be with field to Turning as confirm And appraisal a resource well domestic Senegal, our is. at in phased can with you a LNG right now the an the which this Yakaar-X slide the to the have of Teranga, required hub how an LNG seven, Combined extensive southern laterally field. on test underpin approach demonstrated we using export gas see extension to

continues quality and XX working. highlights was in place We The technical Orca-X expectation the high our last reservoirs. both our structural reservoirs of believe initially the confirmed of quality TCF the identify calibrated stratigraphic from in and be slide. the discovery to log and of XXX% are data on gas quality AVO shows field record off Orca which present eight Slide inboard the kilometers track ability can thick on left announced as well structure pre-drill Albian trend we of the demonstrates traps the gas tool drilled The has the discovery excellent the week. of seen in X.X

excellent largest ninth discovery hydrocarbon encountered of in Orca potential have into Mauritania Turning standalone previously we in in pay untested in deepwater gas about very XX now so more basin, Together the XX we a in Mauritania Mauritania. hub in meters the is net to LNG upside area. the discovery the a far in also alone, well to play rest play nine, is an with of XXXX. gas is the than slide Albian and excited additional TCF There world and believe untested we this Marsouin, Kosmos remain reservoirs. drilled Aptian was enough The of place and in quality Senegal underpin

resource that Senegal the to plays upside we to resource the done gas increased So of annum that in of the we Diego with at TCF this and in to XXXX. potential one at capacity. February of appraisal the final Markets successful estimated basin, the the time, a through evaluate new underpin hubs, year. GTA-X, three million of Mauritania Orca-X, we've success around presented the and range providing totaling that into resource event At turning Yakaar-X campaign the top Day year. sufficient extended we've that double data. allow the XX slide, n to at the per this around more We've tons significant the Capital to in with exploration XXX TCF selldown process LNG pool With at to time additions XX XXXX across end base buyer

So, cash generative. to highly to summarize be today's presentation, Kosmos continues

that's that working our the growth the We in strong have an the through doubled cycle And EG We've delivers Mauritania size high and have in resource in underpins of a XXXX. and balance program ILX sheet successful that exploration strategy. base we the Senegal short return, GoM. appraisal and

Thank to you over the to like operator session and for turn the questions. open I'd to call now the

Operator

At session. question-and-answer Our Al this a [Operator Stanton, Please is will proceed be question with from question. conducting Instructions] RBC. time, we first your

Al Stanton

Yes, good evening, guys.

the I give Mauritania don't Senegal. the always what's appreciate discoveries wondering be guidance buyers, for you're there's would for you But and data rooms being discussions -- have. I'm there two possibility always various additional one you nice sort Just buyers assume with think buyer Tortue looking of for historically, on any in to and with of potential but I in be whether we one terms on going might having one now focused on

Andy Inglis

Yes. Thanks. Hi, Al.

in the had with now resource is GTA-X, the a Mauritania resource process off Tortue. time total as the the and we and of to February, Yakaar-X across which XXX we back I said with top when through we concentration TCF wells Clearly Orca, in a the year, and the range. question at at TCF a of believe on and we success have to go end of it’s great around TCF XX I think kicked of Senegal a we've sort had remarks my lot XX

assets being buyers is want the And understand and better attributes. new we project in where is Greater point the do and we Mauritania and phase have the first the time have three have data that ensure now out, Senegal, to think as to So, a distinct potential analyze they FID. distinct very you Tortue I all assets.

success. first We two away. resources the and increased years GTA-X half two, have gas gas The with

you So well have something described. that's

followed the by and to Senegal, country's have clear Emergent underpinned but Plan with Teranga it with we plan the a near-term domestic an Senegal, success the commercialization Yakaar-X Yakaar I added a consistent for hub. and with resource LNG project think export

a steps Tortue, next different from level definition to clarity commercialize. So, nevertheless the of but around

weaker had many it and an successful was it say I drilled all confidence Mauritania, about on working. from stratigraphic where Albian area structure that we AVO, it’s in to in could the strstructure attribute. distinguish in We well drilled BirAllah a a Cenomanian it so we the stronger demonstrate would a new. the much we closures off And attribute where we’re We could perspectives,

we as in have Mauritania. a resource a result, I now think significant

again, attribute. a different So,

think of I one things optionality think at, different different into look buyers lot is are I look that So to at doing there the as the to that will there's of selldown built and we’re that and is new process, result. show data a a attributes

Al Stanton

for this follow-on, a would expect just the another we it I is is Can well before deal or closed now? ask

Andy Inglis

GTA but piece East was the believe that an more than if resource, at of I got look an think operator, done. we're we've with The you additional enough resource. ongoing I Clearly, conversation Tortue

we’re I in well from Orca is BirAllah, And I the think Yakaar. described quite in evidence the well think compelling.

it, doesn't I say value else. a it in don't the which and with anything pleased lot precision year, we're another core to we've I think assets we capture would done I each these the happen well in of think now, So, with what need need a today and

Al Stanton

Thank you.

Andy Inglis

Great. Thanks, Al.

Operator

Bernstein is with Please Research. Bob next Brackett, Our your from question. question proceed

Bob Brackett

third color of it's it's caused could I drill that or ILX Good and be? risk because risk being some can the it question give morning, Mexico higher permits, is that you resolution, what a Gulf the had year, cadence this on what given of partner of that about it that the largest the wells, needed of your to well

Andy Inglis

farm-in -- Yes, there about BP. thanks, obviously Bob. process was No, a this simply with is

We the then out get rig. go have to that get we done, and have to

rigs it's requires we on spec, know, It have rig charters, of that a that. timeline so a As we're certain was the you so don't not -- opportunity. long-term behind

has aspects come timing driven -- operational being was on we up will what because out of be that that. And rig of done be rigs important various is been why resolution there to play. literally that need and purely into the and is scale that quality, keep emphasizing the line resolution that's oilfield will it a by drives or so way using by the that's So, actually will we're going opportunity, not Equally, timing. separate its prospects driven

Bob Brackett

thinking Capital you and Markets for very That's clear. talked about program we in well first Sao prospect a think do Suriname, ahead XXXX, walker A the be follow-up to ILX XXXX? Principe, Day, in during how would about Tome and then the

Andy Inglis

it over Yes, really the but Mexico, at actually, really quality that actually since the in we've closed. we've about just -- and pleased done of a we’ve we built what of the a I'm good pace year it’s things now, one a in of actually which a is built the year Gulf it’s we since portfolio year

three per Guinea opportunity year four we've up opened probably in you real now. I to clearly So, think is set ILX can what where around targeting Equatorial a it’s I think see wells

And prospects. so, competing we're to see going

XXXX going a We’re in some sort same of the Gulf inventory four EG. between cadence EG that drilling and XX competing will to think with high quality and the the year beyond than of material competition of five if the each deep top got and be But to you to years, in that's to were Mexico. see Gulf the quality get program. prospects that, more us see the I the actually We've prospects

Bob Brackett

Appreciate it. great. Okay,

Andy Inglis

Great. Thanks, Bob.

Operator

is from Please with question proceed Meade, Johnson Rice. Our Charles question. next your

Charles Meade

at EG do first I process you comments, early from whole us to with if online. give and or here there. you pick this? team have could morning follow to this you well, bringing I discovery on do XXXX, maybe thinking the both should coming appraisal Joe and also more you do seismic Andy afternoon be up, well this around wondered seismic I up volumes you we made an your S-X a respect Yes. wanted an detail to And need in about and this and Good before little your the you good that's that need know for forward but can S-X appraisal when the you

Andy Inglis

Yes, around the and Okume. product first we first shoot to step behind fundamental to Equatorial to and go was production from purely seismic from license you the get in the and of Look, from great blocks disciple the We great capture the three to We've one thesis done that entering Charles. hydrated seismic back around decline job then the get S-X. operations. should around program Guinea -- was Ceiba the go access creating value a stemming --

The of wells not drilled had the well of heart believe Santonian the been where on edges was channel, we the channel, target channel. a the the in the of prior

the the XX we've fluid And well establish first production quality Okume. was be channel we've quality would objective the in got Santonian high a we've in And lighter and reservoir. and so we've meters core than good got We to in this of reservoir think elsewhere from the done the the that, delivered actually area. Ceiba of

So on chart you target the gave that the the call. on we well was met you which the ahead fully in primary the can expectations, of the see papers the all [indiscernible]

around of million in expectation in oil XXX was Going the barrels plays.

establishing the now So we've the connected well data we got, now. it's getting literally volume the about ultimately that in just

best Therefore, drives tying we've that optimal the So in to methodology, initial that versus the still the seismic flood but the infrastructure underway, depletion water depletion. understanding got what that. the is well well data natural

it the think I we And in expectations would get there area. would reservoir a there prove are exploit scheme, met the area, put Santonian other to genuinely which are the pre-investment thesis the to you infrastructure which on then optimized allows an we've well about excited but because fully in got out the now got us to what blocks We've development fully it. good is fault

-- next are do the steps work. the we're the that's those and So forward to looking

don't the ensure got value test need, now tomorrow. it, I we've we think we is best optimize appraise the to need we've today data and for the the I think ultimately will well that got the -- to to another configuration

Charles Meade

you bit little for on you guys and seismic interesting give reference it, Got your then could us Can slide at if a I there you feel thank it's eight that. was put that that -- find surprise, that Orca. big bigger like all reservoir. thing the much discovery what But was Albian was bigger on that? up to that And the how -- down obviously the finding a structure surprise the or Santonian

Andy Inglis

was could that fullest resulted I it say be could later. wanted drilled extent sort surprised drilled say the -- -- drilled test can Both, have a see conservative have you location. wouldn't it of on another well doing The it would is to think problem it important I as was to because an we a we well it in structure with I’d but to more have we in

drilled demonstrate was placed felt quality we to a both a of the well, to So stratigraphic Albian the and demonstrate which optimally trap. we structural and

calibrated and supports has ultimately And the we potential with a other course result. AVO the Baleine. now upper about. are those I we've well without both of well, elements if risk of that across area hub, there believe actually was in to other the good with resource BirAllah are it It's actually So but to end like, Marsouin Dauphin and an de-risk the not four from talked appropriate the read Orca those exploration obviously which prospects -- described two now you of

Charles Meade

you. Thank

Andy Inglis

thanks. Great,

Operator

Goldman proceed from Our question. Neil Sachs. your is next Please question Mehta, with

Neil Mehta

for you morning. update the this very thank Hey, thorough

the year-to-date, just sluggish do How course guys question been could anticipated. around acknowledge into how you And think you production are about of first the what more The XXXX? it's To is going have production, think think outlook extent than for initially I Ghana we Ghana should was we talk I I think you in about terms correction? it.

Andy Inglis

the is forecast. handle for from Thanks, a XX,XXX -- therefore Look to stand more production And clearly as as more if day it is is Jubilee, produce which than primary lower oil gross XXXX all. handling would Yes. the GOR, it’s gas can the it be simple issue back We of can if Neil. barrels anticipate sort rising you that. you can clearly, gas constraint you around

that's enhancement quarter XXXX. had will gas of by that We the been done the now hoped operator deferred project to XQ be the in first

directionally sort the once in ability it production that's process lead XX,XXX gas we see, higher without So And out, to clearly more should to to carried XXX,XXX enhanced oil day gas in gross handling. a barrels of would XXXX. rising

our I flat Jubilee, for XXXX gross around think barrels XX,XXX would then view was think day relatively oil turn be per I there. again production of and

I plenty can oil the issue, to So Jubilee. the improve It's provide make that's it's outlook We've the the performing. and not a about that reservoir opportunity it I think got manage think of just is reservoir well, wells, to rate. GOR, ultimately ultimately of we sure not the is plenty will got which

Neil Mehta

But That's earnings frame and some the you guys the talk inclusion? for for a the so the this that great. are and stock of improved up of be just little with Jamie. And necessarily question about but that a Can influence four we can outcome, follow out? quarters the of can't question you're trailing positive you bit index recognizing now parameters having with you eligible liquidity might

Andy Inglis

tell as Yes, domiciled, which I'll are we Neil, primary now. you that. are Yes. rightly parameters say, you U.S. the

rightly point year. equity out has selldown the reached I the think of with private threshold owners which this another parameter stock, you as the the the is liquidity of earlier

Another need and in months key be to of -- the aggregate last the is your positive positive. earnings parameter last quarter XX

with believe inclusion those. as the say, we've how all occur. So And think a index really of the black you But think in I decisions when met of it's thereafter, box the rightly are are terms those and I parameters. -- would we those --

are on in three were step -- comment I key that. can't can the an results obviously, forward today the parameters obviously So and those important that neither But and Jamie.

Neil Mehta

great. That's guys. Thanks,

Andy Inglis

Great. Thanks.

Operator

is with question. from your Securities. proceed Tullis, question Richard One Capital Please next Our

Richard Tullis

Thanks. a nice quarter. Andy. Congratulations Good morning, on

process could more the what plans Will selldown forward Going the Senegal, and What a hand? on back could in go provide you on could submitted, data leading to a many How process room? maybe data a reopen few of potential into was drilling and detail be the how participants cetera? new Mauritania the you were time? et little comments, you well? bids going the And are with the if the

Andy Inglis

Richard. Yes, interesting for been Thanks, Yes. it's an year us.

on been against are year energy the I important think I -- the and sort transition to companies a will interest. relevant is where and I there's I an have to a And of become more lot in believe interest certain mixed process. a more background has of companies. role the pressure play gas And think positives be important that fuel would say. around The where as

of genuine people projects and into our their our in that's portfolios. course, of created and fit how Mauritania interest can Senegal So, resource

And negative certainly then people pressure. in have prices pushed being year which was under and has the LNG the

XXXX. people actually, to cost. into good but it that production compete looking very absolutely gas. Coast this resource that a and low see beyond Therefore, on never It's they got I in with which U.S. a Gulf Europe, is ultimately in is it's are think, comes environment, do competitive price that,

it February were after on early transition COX for the data results. criteria it. they key after And the think And we the world, the set rooms as news well as open Day. criteria. is also in all the Markets Capital pretty meet energy the it's, we've then projects importantly And you a the And of around got no competing that had as

a occurred lot So since. has

very is which have think look now, think the which process I allowing think at data. Al's question in about process. So three people important, the at we've creates back beginning to And optionality the buyers, attractions different different was in, come really assets actually, I new got to distinct the I additional

at had and we've think back acquainted the of if will But come actually to ability would. very the drill in But we going getting important the people always we with I them haven't different part with an place bit. and we the felt now look assets the process success forward. be been So,

Richard Tullis

just But Andy, at like XX% to sound the XXXX. Cape talk of could helpful. to you compared project maybe potential of could drilling related be thinking what retain going be? were you'll it in Now LNG the you. And to doesn't That’s the thank it Senegal lastly how Mauritania additional projects additional previously? into that XXXX you there's maybe

Andy Inglis

we’ve think going in. Well, going said XX% I necessarily to retain don't

to I need have sort think we we what that process to will carry to What our we guidance of the beginning play the with of that. clearly should through do will cover CapEx XXXX. come for portion let in think covers I of We back through XXXX in – year we a is do which from XXXX. the you BP

would the an is you It backend it have a if So out. played scenario effect be and effect.

Richard Tullis

for all that's Okay, me. Thanks, Andy.

Operator

with your Our from next question proceed question. Please is David Round Capital. at BMO

David Round

to there there. the the And in assuming to Jubilee. position defer adding can you even that operators' enhancement to are then I additional future or handling appreciate now? those I the might on to concepts, concepts not right you more ask there any I is thinking in that may the be gas thinking decision But given proofing be development post comment the around Hi, a is standalone tiebacks gas talk development project work by EG, all Andy. as any discovery just capacity the Am about resource on area? as

Andy Inglis

been Good strong thing which big management you deal ways Reserve problem. issue Again, is in has Actually you with of and which gas two the class Jubilee emphasize reservoir. it’s the actually is to getting bigger. fundamental the three with there replacement on sort can very It's ways a field questions, year-on-year. are that’s Yes. The David. that problem. deal sort most of a world important

longer we that is say provide that gas no to constraint. so can our increment with decision solution the sort is now increase first to do with we goal what is the operator handling maximize you as need the been sort gas us the absolutely the is of, forward, optimal de-risk the to going has the the The sort and say make of as you of

the to The injection is absolutely thing increasing ways reliable you the is will in works water the gas been from then can Jubilee GOR. is clearly has mitigate take in export there that injection the and plant, that water a used help And is downhill domestic from also more pressures, the power the relocated gas gas third mitigate which other issue And to power [indiscernible] Jubilee. to which will in be actually actually plant adjacent production.

will off gas take. that So the enhance

that are production. -- three that ensure we've the those the oil So parameters being juggled to combination are the got optimal

about see we negative be improved but gas those upside. the a ought more need to injection sort significant gas off need need So to do handling see water and we take I'm we to capacity future, provide see will the to increased, not together of

David Round

Okay.

Andy Inglis

then, which it would the scheme EG plenty felt need we answer think the is And there to of could be we that be at Ceiba. to optimal things we would know was I in was the the we I what additional today look the at have tiebacks. because on basis improve situation, sort reason we opportunities say EG, to capacity quite went just then done. get of to of so to -- And on today

the way that's And you about it. I think should therefore think

first has think they the I positive long first of oil, that but economics, the positive haven't very prospectivity got terms accretive its S-X therefore we’ve thereby building got nature quality resource in we to of inventory, be where could oil short for The to we're future very potential time investment its a to returns characteristics. cash was and demonstrate down objective and both of different, tieback the of has a cash

David Round

Okay, got Thanks, it. Andy.

Andy Inglis

Thanks, David.

Operator

from proceed is your Pavel James. Molchanov, Please Our with question. next question Raymond

Pavel Molchanov

the question. for Thanks taking

just XXXX, remind, Going can do Tome that for Suriname and Sao back you a on you acreage well? as to carry plans have the

Andy Inglis

actually. which there I was question agree I on that, And a No. didn't answer

So let me timing. the get back to

just your because Pavel, to me think that Let more answer broadly, question important as I come it's back that point. well, I

decided XXXX So carbonate have information come lot to new best in time. that that targeting drilled, defer important time a I the in planned wells in have a drill well right that digest take the for have we data going moment, to group, as think from XXXX is the opportunity and collectively to Walker, and there's going the that fully well basin all a the Suriname well at it's you the partners on the at that and been the a we is key the rationale

I got the in clock that exploration And on no think program. We've time we're position. don't

So not a in quote, rush. we're

one that our I opportunity on don't this want be we regrets rig driven, and important this we're our to therefore deployment the the driven to So is a we’re licenses, well real have think maximize way time not disciplined we to drill knowledge about not capital clock about is any capital. it today the of is because the absolutely

obviously EG, On opportunity and good see the the can there. in we seismic acquisition is completed, is coming data

very for remains valid XXXX. target that a So

Pavel Molchanov

had I'm Tortue, On helpful. and that's service across a perhaps curious originally roughly savings the you've -- cost given oilfield seeing BP the kind you year been versus Okay, so Are budgeted? you and of for you've construction looseness now in value the originally chain. what

Andy Inglis

are is that went think out major the actually which really then we has bid the strategy in actually obviously to elements fixed I chain opportunity it the savings the taken costs, contracting those when that put are think I well that place. being contracts in were incorporated done. supply that and we BP There and Yes, deployed of no, when you've did overall

been down. that's well, could costs at of in variable run no sort have that So captured with I where is the ultimately and think, issue sort of could variable the changes any changes the into point now increase cycle, of equally come sort those trouble this projects no elements cost where

But the get is would the the looseness given about important sector the most A that process from execution, terms the the as you in of what part I say in to teams is you say think contractors. me I

there time X. So four has and Phases And to clearly yet never contracted been better then, not have actually construct. we X

costs. from And so think I X, those we X we've across Phase and take the have capital to can what continue look X to drive savings, Phases you learned down and

that the play and apply part pace actually the in for. where take in X and been market has then we project the Phase is final X contract capturing thoughtful X and them lot well, the we're Phases learning's today's into a the way done to from So of very ensuring looseness

Pavel Molchanov

Appreciate okay. Yes, it.

Andy Inglis

Pavel. Thanks,

Operator

closing Buckland will And for question-answer-session. I the over Jamie floor turn the to concludes remarks. This back now

Jamie Buckland

if Thanks, much. operator. in the any very And have contact. you We further appreciate us don't Thank questions, ongoing everybody in get interest and on your joining Kosmos. call you hesitate please today to

Operator

conference. This concludes today's

lines may at your disconnect participation. You this you time. for your Thank

Kosmos Energy (KOS) 4 Nov 192019 Q3 Earnings call transcript