KOS - Earnings call transcript Q3 2020

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Operator

[00:00:04] Good day, everyone, welcome to Cognos Energy's third quarter Twenty twenty conference call.

Just a reminder, today's call is being recorded at this time.

Let me turn the call over to Jamie Buckland, Vice President of Investor Relations Coddles Energy.

Jamie Buckland

[00:00:19] Thank you, operator, and thanks to everyone for joining us today. This morning, we issued our third quarter earnings release, its release and the slide presentation to accompany today's call available on the investors page of our website.

call chairman go CFO. and the and the on angles, the CEO me today through to materials Joining and nearshore

today's presentation and for and make to available Please will due to outcomes presentation, Stock will statements note materially call our During Exchange refer in U.K. SEC website we filings report, that on this could forward differ I our in Actual to expectations. looking are plans factors Announcement results documents and annual more this and our refer estimates, we These turn SEC over filings. details. time to at our and the Andy. and

Andy Inglis

the the in balance production around for quarter the before due the bulk afternoon don't Well, made [XX:XX:XX] this today, now XXXXX everyone. going the this the year today's spend I'll Ofri is before quality Thanks, delivered financials. the [XX:XX:XX] below of Lenkov want forward. the all God and conclude to to call of start operational we've the key turning presentation to the Tortue with largely significant with passing talk asset of to [XX:XX:XX] to project and Jamie, the kinds the the with morning Q&A, I quarter. opening up Neil storm messages through robust and about talking a to oil presentation of for good equivalent still the Gulf to and slide highlights in quarter progress sheet performance to the barrels activity of was slightly Mexico. elevated

equivalent two. in twenty well Guinea annual to narrow expectations. later the should performing phase the the time of LNG production so tonnes allow at thousand oil project. optimization Ghana, us existing progressing at class today, working the coinciding It's expansion a leveraging to time of more trying the the one steady enhanced one about in annum was in the infrastructure by half with world twenty significantly many and with to the assets with been again deliver with torchy market in is optimize phase They is two start of of projects year sixty prospect development in Also the closely five the to from in reduces three, environment focus range return barrels one to sixty remains line We've guidance and first production the of the the both with project presentation. Mauritania expected Senegal. phase third in an BP NSC boosts initial an Targeting in and to million on future project costs overall returns. per where project the the simplifies However,

interest to around that consideration. reduce gas. balance we And upfront in time exploration the XXX our monetize our not path portfolio In funds, obligations funds in cash September, Now capital our to financing finally, project. sheet. million continue we strengthen our optimal established show We've is which the the dollars to for those to

provides put facility, with facility Mexico with also five actions place We've shortly. Mexico in the taken the proceeds the receive to this we've Gulf of prepayment the to expect liquidity of which Gulf our We year. a places additional company

percent uptime facility, of for for within on XX now in of it over the oil and to business in gone, continues was and [XX:XX:XX] performance most three production base the three, oil day with around flying line the well of expect high and thousand [XX:XX:XX] gross I percent with perform barrels of quarter guidance. flow day the reliability, going XX as to We barrels because oil production with is Jubilee delivering XXXXX the around Tanks previous generate forward. twenty operational line, per solid cash at on current free eight prices that per mentioned year. over XQ

So far, XQ fifty line and with percent was barrels for the ninety thousand time nine XX guidance in in per to year. was day oil of at gross around percent XX production XX a at the

Gulf for Gulf downtime half drilling the And be production tornado we percent And around to downtime The the than In in that far six and assets year, and around for Equatorial still has history. four total twenty production of most around came to a Felstead guidance. XX barrels Egypt We and active So expect XXXXX the a results of of day so today full [XX:XX:XX] positive. next guidance the a season. encouraging. we delivered oil during in XX of cargos That the for quarter, Ghana cargos flat. still with thousand and injection XX and base seen was from of is hurricane delivered expect typically Reflecting the quarter, lower from in eighteen of storm the was one seasons said, begins from today late online barrels storm September as is oil Twenty to which production days of result Mexico the elevated been that than is of in higher initial Guinea expected forecast line have be equivalent activity, in significantly stay year. well Mexico. the

the on full the our named oil in Kodiak sixty equivalent hurricane start the activity. is year early shut the expected a a well sixty tough May back, production quarter. with portfolio, low be of price of environment financials of well, bring expected with in year. results to through been previously Monáe of and This of the these the enables begin resilient and challenges, completion the diversity year We'll it's to highlights twenty our covid two today. the said, at Cosmos to day of handover the in quality That asset Weinzapfel year. Stepping level Exploration without guidance due all to to for Mexico operationally which expect Gulf come the increased next this thousand downs expect spud the quarter, month early base, at in near line the initial in and we also take per you the barrels this We to still one one

Neal Shah

[XX:XX:XX] Thanks, Andy.

to quarter. to for I'm financial not slide items line Turning the on the with as guidance. annual going for consistent our every touch key are item most

So focusing slightly activity increased fifty the on of Andy the the key mentioned, was in per to day of production oil guidance storm quarter. thousand areas, equivalent due as barrels below seven

with the we oil not was combination across due of trend Teuku. the as three as ongoing to twice production selling as the to are low impact of impacted currently present, continuing of going was workers a lower, normalization the hubs oil related would like. company operating all prices, Realizations Q to periods improved offshore. the quarantine mandatory have guided positive but higher prices for week OpEx Total costs as cash covid, in At by the elevated as two. in around higher this at This although Excluding differentials we a and higher personal saw on flow and is activity, XQ with line the would lower in two XQ in benchmarks. basis such we compared quarter. significantly hurricane wide been also high

reflects total be are nineteen, progress is the making. expected percent year, at we than Looking the to continuing around twenty OpEx which lower twenty

at in came with in in CapEx base fifty expectations. line three Our million XQ dollars business

progress year on around addition, CapEx small Mauritania, update fourth obligations I'll achieved to is expected seven the quarter now and to the end of In non-cash to phase one. our Mauritania with extend the forty hand in Senegal. back the Andy it give of a and an the million in to payment result expect there to we and was activities capital of in expect accrued to we Senegal. the in This on of continue as carry

Andy Inglis

[XX:XX:XX] Thanks, Neal.

of continued period, project torture with the pricing five, Turning improve boosting deliver months, set for project at to to Cosmos In the project the start and coming with LNG to by higher cost worked six capital twenty and global the growing million strengthen result to a made the the time and expected over internationally. I'd reducing cost slide first the in transform on and two the that the years? Twenty presented since outlook of Senegal. LNG looks slide In Mackenzie this cancelation Partnership when this progress project new Wood, project, XXXX, past projects, time a overall LNG of [XX:XX:XX] LNG to the the for the a liquefaction many is market in the has is the returns. expect US lowest gas Over direct to annum hard charts and the Mauritania tonnes has per added would growth the year. only like from deferrals NSD tighter of Energy on Mark its of the deferral supply LNG the five seen year. twenty recent Driven the demand annual twenty much

twenty Twenty prices has quarter. second demand impact even tripled export, with already been roughly XXXX, LNG with in have the flat COGAT the the from of lows As almost

no the years first almost In addition, twenty project XX time been have Twenty FIDA there new LNG in that in happened. has

analysis. the screens up the costs, competitiveness project. to example, sweet the from established, the the [XX:XX:XX] and delivered until leveraging, the Side first of to the further one XQ far would all competing we're half with phase just for of capacity and of year, weeks on overall torchy break-even capital Twenty phase results review as a without demonstrating and estimate, infrastructure the optimization supply cost more gas other expansion the which five of and with Slide with capacity, two LNG to the to would now quarter requiring major six, sets a a to a the percent, this and spare torchy on So the million XX all project end line the work of while and be even the projects of is twenty cost very per As first gap to project project the phase of projects tonnes lower progress other also infrastructure our well left is backdrop you targeting might marketing BP delivered export lower reduction to key flagged just then to the one phase which a Phase spot, twenty phase FBI. the open enhanced three, The delivered working its dollars the the of project gas the Shipping and very, with into four [XX:XX:XX] make two phase two that second excited twenty would increasing than compares lockdown's continuous line, [XX:XX:XX] significantly There's on BSA in volumes data Europe expected seven, the Sunny optimization activity latest significant will improving max track creating processing going result be a hard over two from of three of for for we've demand to using which very second the three. alongside LNG around uses over The a gas incorporates about after with expanded phase expansion one of project. need ago. is four facility. chart per the [XX:XX:XX] Phase into around scale with the path of showed first as at project project expect will Asia associated of the development made into cost torture for the call complete a is the plans two one, positive ever backdrop subsea phase an no favorably The and financing has in utilize of annum. phase which partnership periods Asia the very two,

terminal. hub to the So

two will phase gas of expansion less on a be flows. the development, to first requirements with to As share expected the than LNG brownfield of out we finance capital one globally upstream to result, two cash dollars gross. largely competitive [XX:XX:XX] a be The most that one phase able we phase expect project be believe limited billion

the as slide financing of deliver project we've project, mentioned, to that out, allows on eight, I capital. built a now seven cosmologies to approximately for times remaining when of expected Cosmos retain which, return net can a Turning an investment path share its self-funded established current

financing on are XXX Slide or million to the page million means capital in and in investment of quarter through project close expand this Cosmos the run loan funded and to XXXX year, negotiations capex Company the today. BP million we of this by to one to by which XXXX [XX:XX:XX] future at these in future FSO to the CapEx financing an take offshoot outstanding that, of cosmos purchase the XO gas is returned investment around balance by seven to first fund telling for excited another Cosmos. investment project and upper be secure XXXX, optimized of direct Development XXXX to dollars now post be due expect EPSO XXX be twenty special to he on approximately the a see eight. Peevey obligations expected Yes, hundred We're obligations cosmologies be far, about XXX to dollars per expected the back mid is to will to and year. deliver also vehicle Development the dollars that's with through being times. XXXX on optimized a cosmos forward. capital next to SPV. of hundred We obligations around funded dollars BP why that [XX:XX:XX] project plan we to is balance of will on Neil seen twenty the five the be twenty the is cosmos is and cosmos cosmologies first OFF-BALANCE-SHEET two say funded from by the on KORIE transferred intends million in anticipated return with our commercial twenty, EPSO, activities million which which forward XXX Cosmos purpose of and XXX central the generate discussions is hand to back to liquidity. to XXX dollars in seven net With The around combination [XX:XX:XX] a sheet moving the to in million XXX in is wanted the Cosmos. sell so we're expected around the Oil million, banks The and chart forecast three price gas Which dollars to refinance is engaged [XX:XX:XX] can to the with while twenty right National expected approximately I'll to Mauritania,

Neal Shah

announced base which billion, nine. to to three reduction At total around slide debt. of completed end then, since XXX one to now Belgrad to was we largely point Turning agreed [XX:XX:XX] under a have we due liquidity total This where we XXX the successfully of banks XQ, just borrowing at our liquidity adjusting million, million. priced two determination reduced the their forward

proceeds back capex, in quarter, expect also [XX:XX:XX] Gulf Senegal, flat closed close hand and Winterville for a to with up. the completion one has we Mauritania which reflects have the to our base additional previous and quarter, we the Kodiak revised quarter. twenty XXX one we Today, the a feature one required, start million and dollars third We This Ilex hundred expect the crude hundred million fifty wrap solid from and million the already prepayment approvals free third facility Q the the in This I'll business Andy drilling facility. guidance as forty of This capex providing in the With position it the accordion twenty. with We've also expect transaction. of the to significant B dollar We year. the for Shell acceleration Shell hundred of quarter. refinanced to Mexico of the impact of prospecting facility financial flow that, generate ensuring transaction, the the cash key we to Q. fourth that Including out business receive granted. to liquidity potentially around therefore if of

Andy Inglis

continues has challenging the a assets the and ESG for been quality And high be World-Class to to it's at Thanks. XX is is But credentials. sector. year [XX:XX:XX] and look final portfolio and Cosmos gas oil today. conventional back competes important with step of how company [XX:XX:XX] a slide a strong

the phase no the actual scale. hubs Gulf Melungeon three over of Mexico, change. Ghana Guinea, as Atlantic the production clear focus complete now offshore Our be exploration development which plan. and has by a expects along Iran, world is We XX have with well development first as [XX:XX:XX] percent LNG in to the on an financing production

value is average, and shows. phase the advantaged significantly carbon world. lower overall consistent low have low than intensity crime existing carbon the assets optimization and industry leverages return. and benchmarks the are rents recent second delivers These addition, the report as infrastructure We're price deliver to In the enhanced TCAP that a rates, making shareholder our decisions [XX:XX:XX] choices capital business with lowest

low nature cash and cost low assets free prices. low flow assets the at significant the even Given produce decline these rates, of

We break, Brant, dollar free approximately current per have cash a generate expect one. XX to the prices oil twenty barrel. for to cash we going flow corporate twenty free even flow

the a the have our is comes exploration through gas through a solid This On Twenty cash to free have self-funded Neal grade cosmos phase On side, execute we prioritizing deep in continue first from with targeted sheet can led large technical opportunities portfolio means build resource continue to we infrastructure. finally, where optimizing that through leverage outlined. to to a across understanding, having as and quality we plan, a proven existing value that basins gas complement expected the torchy We And infrastructure cash balance exploration, to the just help production and we Mexico, now first reveal plant exploration. success the generate focus choice. base in created high of exploration three the of the hidary of acquisitions, stream the generated portfolio Gulf flow half the a in on twenty the portfolio. and long term Today. Guinea returns opportunities to on actual with oil assets

reduce expected you. over and And that operator the the liquidity to like now, maturities ample to turn leverage. and I'd generate to the is cash The the Thank debt questions now business to that. session. open have We near-term call

Operator

[XX:XX:XX] and to if a star A one you'd will ask is like At will this session, a answer in indicate United conducting on time, be we please. confirmation your queue. telephone Press question tone question the question, keypad.

with up star proceed while two from to participants for if equipment, you Johnson Meade be [XX:XX:XX] before The question. to proceeding question Rice, You moment, press your the it please like One handset may queue. please, remove using pick poll speaker necessary may would we is from to. question first your question. with Charles Our your

Charles Meade

Good I wanted explore to be, comfortable you afternoon, a a I ask what and that morning, well. details are to you're and and talking you're just to of Neil wanted or about haven't Andy, on more it still this not. what as guys the leaseback. may of bit you But [XX:XX:XX] the sale question what little recognize working likely you

obviously As make like a clear as not one project had make the is address outside I from you it and looking seemed of one it was it's would that BP. sense partner, for but your you, that for sense the the guys of challenges to would

I'm also we interest their Is thinking it's going be this? the to into their alternatively, sheet? that to be Or going also this about off contribute going perhaps sponsor to should and SBB? it leveraging BP curious, So balance is SPV is BP

Andy Inglis

wanted bring [XX:XX:XX] that Nia to up.

Neal Shah

if process, I sides we're in think, to think transaction I [XX:XX:XX] know, they in from the they still as the to the well. Charles, different several both where where you can both to ways that, working participate it of for benefit do Yes, BP but through there's optionality transaction I think the

And a different ways so we couple that end participation. terms BP's there's of in up could I'd of say

Charles Meade

on page question one that just interpret on slot the your we'll All eight. other Ok. right tuned and upper right, on well, to out [XX:XX:XX] then on and your then stay

all this, that's with production. you subsea this? and you're like sense doing fence this that the know, that is this, any interpret pieces If because put, TOLIN breakwater. episode, can makes that you're where the for the you the other ring and flag around XXX remaining it there that putting But million, way that's to Is operation

Andy Inglis

And to BP way about working say as think to the would think I to engaged Neil way to think so that with which on well as the at today Now, competitive final choose the is Charles, know, and alongside the assets, the direct in clearly, some secure various it, It'll we're you we about [XX:XX:XX] them the least. million options looking it [XX:XX:XX] the actually buyer the be where they they secure participate have negotiations do said, [XX:XX:XX] Yes. looking you through with how which that. choices do comes But, know, preferred the in can we're which of that of we sitting investment moment clearly at it. the as we that. find three the we're how in dollars, in when funding. And ways to what to is we're most is

Charles Meade

for thanks that Other [XX:XX:XX] detail.

Andy Inglis

[XX:XX:XX] Great Charles.

Operator

Round from BMO is our Capital with And [XX:XX:XX] proceed David Markets. question. your next question with Please

David Round

out got I've just a on number was how which numbers I you wanted about a potentially really clarify, to and I some and than the in then Facebook, got contact quite the [XX:XX:XX] I and down market. talk both couple person and understand same just there, of talk a locked to can see then of just to the potentially the to bit know, on you for lower leaving movement to there balance investment it estimate public be And sort cover a the it the you sounds on bit say you that final door or amounts number? in one for of potentially direct smaller conflict. open a the funding, you're the expected like know, just was of

might sense for there stake that project. more the be If get in smaller appetite a the you

Andy Inglis

torchy of four the the billion phase just we on Thanks, say know, sort gas, let you in you as Then that, me we of know, forecast sort first Yeah. two dollars. slightly four, first capital you through, capital. know, to [XX:XX:XX] [XX:XX:XX] you the you one first You if Yeah, look Yeah. know, the capital, over the estimates. the on phase talk David. sort of

that first the around and What's of consistent into throughput. the give infrastructure see. the around we investment interesting that's You off you sort [XX:XX:XX] billion half, FDA. though, my about if that [XX:XX:XX] is as with available So [XX:XX:XX] down the which in capacity three of numbers Yeah, take noted FTSE, phase sort the all to dollars remarks, gets back two, in the is of do gone the in it to it's it leverages the expanding can So subsea put than facility I one. a new gas phase off the rather the we're leveraging for the around.

So there's [XX:XX:XX] export we it no picked for big another five FDA. need use and optimizes tonnes know, issue the gas we that So breakthrough. on the per to think from infrastructure. the been actually processing million because line of that, the [XX:XX:XX] of the And sweet spot that of the I annum that's you

current my as I know, I tough. think, environment the And environment, know, of the you say slightly is, perspective, get working question to know, said has half that's for alongside the to you why you amount utilizing know, been so, campus [XX:XX:XX] in of dollars. of next a as know, capex. that million therefore tons of minimum the and BP most You the next you and additional that's piece reimagine upstream from know, have move by fully a how our So you a I current the the [XX:XX:XX] current of was phase you I you billion sort campus remarks, the two of would the sort So, is current that infrastructure view. out the know, on less to that, sales than

to genuinely I'm able many You the got the pencil project way to now. to which us to today sheet project. the BP at with right time. participate. the on sharpen on I'm you the companies know, And, way, all you're know, But And, And project. we choice decision of with come [XX:XX:XX] will is opportune side, moment financing consider. know, be annum. managed sounds in of clearly right today. be I'm you environment Ryan's delivered investment, I are, And with the I'm the to the you of right size what forward, have [XX:XX:XX] balance much XXX like will the in we've got right of for we were create And the you or [XX:XX:XX] you about next current something it of not with attractive. that of and level Yeah. where today up crystallize because know, a the efficient the infrastructure. there in path and the faced leveraging future we're would that will has allowed it's because next engaged think, efficient. it's that at space that the know, really could you the by excited time that to another is value. place, investment. clear are piece focused the the is as a to right the you to a project And the the million look tonnes the of shareholders the we family well incredibly of to the And is the smaller the project it's [XX:XX:XX] sell the smaller that per know, clearly five And right of say then, the the we just ensuring we're million sort piece project, we've That when in with now Now, Expanding going the But we piece infrastructure, as all [XX:XX:XX] time rightly BP, on right at incredibly project be phase. say, financing the an the

project good got that. a we've we've So

David Round

up. really the quick as that's really follow compresses Presumably it [XX:XX:XX] a well. timetable That's great. Ok,

Andy Inglis

doesn't, the processing the [XX:XX:XX] additional you an be, know, still put there actually, you've because, No, you gas know, extra will And, know, brownfield got it you project some stuff do. to to on.

of, know, it project. it does but a So you shrink, make doesn't the sort it all simpler timelines

gone you'd So The what is I the down. probably of expect. execution have rate what say Yeah. you timeline would has typical

BP do So, with you execute. But project got and work simpler get to all sequencing that know, done we've to on. of much to a so it's

that execution lower risk. a So have would

David Round

Thanks [XX:XX:XX] great. lot. a That's

Andy Inglis

right, thanks. All [XX:XX:XX]

Operator

question. next Metcher question Nino is Sachs. your Please [XX:XX:XX] Goldman with And with our from proceed

Unidentified Analyst

the all color incremental for guys, Thanks, morning. [XX:XX:XX] this

impact as The US way first up elections value business? Gulf on of the you that the Mexico have about moving around your what on thinking how the And are is and about think business, the size you that of question does pieces, particularly federalizes? we

Andy Inglis

Neal. [XX:XX:XX] Yeah, thanks,

cosmos You something for to industry. are new transitions political know, elections our and the or not

You through what we say operate that of couple we process And, that we the we in truisms. that a live in. countries is know, we there are all you know, I'd

irrespective a really That involve you same U.S.. And than I and, of to to carbon strong in on oil and measures. carbon quality in targeting it's neutrality made that the I got XXXX. the government good. to agenda you [XX:XX:XX] the actually also you think important around know, than global for eight is significantly significantly thing is lower current which of [XX:XX:XX] what restoration [XX:XX:XX] would commitment that the is [XX:XX:XX] on think, your actually tropical in that the these actually to actually first averages kg the and around does interesting clearly they stop common are Baboun, can we've while rather it we times lower production, intensity the we have there our I alternative we're to will has say wetland third the fact blue focused projects about think the you an by Mexico? to Gulf a portfolio. country some mitigation power, forest. is that impediment. [XX:XX:XX] sense want mean the lowest lowest which saw cost Gulf a of that The low These party be the believe And focused our the we've projects with is Have Coast. transition carbon it's [XX:XX:XX] and have a is problem an is a production the on carbon be of the think energy in So not one sort I assets XX power. think is, You in to [XX:XX:XX] aligned of I solution being to to thing to the I it's and projects. is know, tourism continue than compete say and know, of carbon terrestrial can individual and point cost sinks are

side. So where I'm on there's have of look know, a got sort that changes low our and lot of on we to been now be commitment mitigation before think it have we and some rhetoric [XX:XX:XX] the we've low I the assets continue I nothing deliver the our very be will allow I to you cost, a that innovative of sure portfolio rhetoric can measures that there'll after at and because So, the commitments. election. from competitive us actually from a perspective, carbon we When low cost approach leasing lot believe you

So, you know. Yes.

thing a years there remains boom more us on You know, The there's of waters? than five lands risk that opportunities Gulf. is is drilling think an of the issue. I no for future that that got leasing offer federal new or an in we've

So there's concern immediate no yet.

assets the business. of So, nature the and going is you a which a would more got know, conducting because which competitive I in our we're business actually, in of way forward today, competitive believe we've the sense be

Unidentified Analyst

[XX:XX:XX] guys to federal without of have still right? clarify, opportunity lease, requiring And just five without incremental you drilling years

Andy Inglis

actually drilling, And would you more know, Yeah. of Correct. Yes. than prospects. you probably for Yeah more, is created. that's than actually we sort anticipate [XX:XX:XX] which know,

Unidentified Analyst

follow question that's about growth the five on even just dollars And [XX:XX:XX] a Brant, you up talk thirty your before barrel, is, capex.

let's at a this then growth how know, And cash you years, call that the do question it you time. which level think next about, you three the flow sustaining Neal. So and might evolves free be over your plus capex cover for how over

change remind out to sort what dollar the at like oil our the what of in Just every is oil cash deck? looks frame can free we can flow price profile so you us sensitivity

Andy Inglis

good question. Yeah, [XX:XX:XX]

limited The call is it's important. in we'll the deals, think XX above incredibly I growth in projects. down Yeah, but flow free sensitivity cash cash flow capital. And the Neal target ILEX quarter First give dollars. be [XX:XX:XX] on know, on paying on of you first know, the numbers on focused You debt. you the opportunities, terms will first

first of We have the weinzapfel in one the those opportunity.

really to sort then I see net is, [XX:XX:XX] We've plenty moment. dollars gross to they that to dollars XX quite you see at oil us. less And, would million projects Yeah, need in you allocation sort know, is so the up the decision. that got know, for driving of of, price most know, a know, in have than that positive you And net and see competing margins. of million can capital to you we XX is you're going

So, of know, you And think you the to the I be and that cash we'd know, it's very would at opportunities, focus number free phenomenal then it's hilex to looking be you limited, zero on down sort XX flow that. generation paying [XX:XX:XX] going be know, that.

Neal Shah

of sort sort move [XX:XX:XX] that, to so given you significant generate at of can and flow To you of know, cash five thumb the to use forty five pretty imagine, rule hedging, world. Yes. free business cash prices, the can But offset prices. one impact [XX:XX:XX] XX we're around Yes. And the we a a we million, in the million term in on the probably yeah, for of around about sort [XX:XX:XX] upper free from But the that's exposure oil cap, oil hundred dollars dollar general some our flow kind oil dollar limit, Neil, levered. ish base as portfolio. Now, short least cetera. that add every on of is of there's et

Unidentified Analyst

thanks, guys. Ok, [XX:XX:XX]

Operator

from And [XX:XX:XX] Please is Brackett Bob with proceed question with Bernstein our Research. your question. next

Bob Brackett

had Thank question on [XX:XX:XX] stage I a you. clarification two.

expansion? of two that billion. a which phase correctly, EPSO. understand one maybe slightly not you're to And billion, gross less for saying four the the phase whole about or Is was at most than So if was one billion enough cause I

Andy Inglis

gross. That's [XX:XX:XX]

of just numbers all let of the talk sakes. So, for you know, me to our sort

which know four a just Yeah. slightly slightly know, So of You [XX:XX:XX] out you the is of over CSO billion. billion.

not is the cost The Brightwater, for expansion brownnoser of to the rise, processing, is Brightwater, it. the the from phase are So ultimately significant capex inshore phase the on is doing two. [XX:XX:XX] So So which you is spend know, Yes. a of CSO. on the two breakwater which on [XX:XX:XX] phase you're to the you FBI. the which pipeline The rest building the project not clearly two. gas is processing,

that's by if there you you're think [XX:XX:XX] utilizing subsea one. and that So that's Yeah. So out then wells. about a into, infrastructure drilling capacity the some because got that limited put all is as you say, it, you of build significant efficiency know, capital of incremental

Bob Brackett

[XX:XX:XX] And two to to five. tons say, two be from, clear, the and that makes half to a Phase and tons a lot expansion get million million you a and annum. of per sense, and another half one this takes

per tonne might [XX:XX:XX] Yeah, exactly. expansion done that wasn't have the million it So four annum it. Yeah.

you you gas infrastructure, of of deck, add to limit do terms you on all it you the know, know, between work So it have what processing what's work sort do is, done Yeah. got the and you all say, over that can of is export concept spot when of that you know, project the do the that months a in to way you you [XX:XX:XX] utilize the the you've six what and you done pipeline. subsea, obvious best expansion? the And, for the the to is get know, look, the you sweet this got optimize to in last you to enables how gas what that we've XO the to in is find

means is and You think about. also this to take of that that you all what get

Bob Brackett

time? about [XX:XX:XX] think we How phase for should RFID two

Andy Inglis

[XX:XX:XX] Yeah, yeah.

on aside moment. twenty But anticipate, You three. I to would the we're you you again, working at know, that know, and know, with Yeah. BP Twenty be on

Neal Shah

phase, one. the So gas time time around around [XX:XX:XX] a phase first the the

Bob Brackett

for thanks Well, Yeah. that. [XX:XX:XX]

Andy Inglis

Great Scott. time, [XX:XX:XX]

Operator

Stefano [XX:XX:XX] And question. proceed is Please your from Redcap. with question next our

Unidentified Analyst

a I've talk, I Thank questions. my I've got for [XX:XX:XX] on to got follow here. up. if the on too, you taking need couple

the rand wanting have around flow at a I five I So But my old It design looks the for while. that's my million XXX for you've the million maybe a million of talking of know, a That's like that tonnes a now also about the about talk million talk the the second think like to amount that kids for think VOP. is, overruns. maybe been first I cost sort How come XXX a bit looks question. and to under mean, make could XXX from? free like you per potentially impression cash cash of them? which you. you about number can talk I annum. bit million higher maybe seven was to you project, of was one same I XXX And, some bit how any. EPS on Thank And And CapEx the

Andy Inglis

of Yeah, and for the was was that Yeah, questions we us something we the of fifty cost thanks. question phase or cast second the around, the six one phase clearly take you from sort I'll like capital year no, take some additional then know, has thinking can were the [XX:XX:XX] capital. yeah, Yeah, the

no You other describing way know, there's it. of Yeah.

additional we've the to So you've there project [XX:XX:XX] whilst the you from there, cost clearly reduce project an the a, of got delay. you know, execution. year And, optimized to know, is a of impact

But we're we're we obviously, are Yeah. that. numbers with we've think, about clear the I know, And as best percent [XX:XX:XX] represented you speak. So estimate we're our complete. the today project XX

down very be able of I got deliver the well the think to execution timeline to know, risk we've the now. credible a So, gone has you And as project.

now. the that number you've the on is pressure under So capital on I schedule that that and don't pressure feel got therefore

Neal Shah

talked and million XX you be sort And then interest maybe fifty Two million of where one [XX:XX:XX] flow, We percent the and I million cash the hundred fifty working hundred past, free tons. project our sort Yeah. just cash the one hundred in of current free flow this of think of the from and is XX for on to. the is might mixing. about expanded

talking around the the about larger same. are current at so of lower But working to working the the interest. scope you similar. our a happened the know, half a numbers you've be interest versus were project project And numbers at reduced we And

Unidentified Analyst

was that production Right. within And by world just and that low a and was August. sequentially nine a up, you the for starting years, over I XXXXX EBITDA decline, bit it, day. just in Ok, the wondering, per [XX:XX:XX] reason in know, XX you barrels know, is not stream, quick of follow what's twenty coming on but much,

Andy Inglis

the it on production know, would Yes. big level. around, airport the contributor you know, in other numbers decline the NRA the you have being [XX:XX:XX] those obviously and reservoirs. the the no to the to know, And You [XX:XX:XX] drilling

get some decline but, are the the know, [XX:XX:XX] reliable know, been with then, some and uptick an that So associated on with natural you you you're And been sales to he's perform. going been to continue to know, saying, you we you actually saw the I'm with then the NRA. sitting

some the that. But So, decline this year, be, yeah, next year, ongoing the that XX but because of And fact of clearly. offset some you no by there nine of not [XX:XX:XX] this know, will year. activity hopefully

Unidentified Analyst

you. Ok, [XX:XX:XX] thank

Andy Inglis

[XX:XX:XX] Right, thanks.

Operator

proceed is your question Barclays, with please with next Hosie our And James question. from [XX:XX:XX]

James Hosie

me Hello a the I'm Tartary funding. of for on couple just Hi, questions [XX:XX:XX] there.

one then hundred million dollars rest for And the you're First financing, that the just from for the transfer dollar rest get of off is option million money and I that stand, the the is because trying of the cosmos. one the to on also refinancing. gap

cash? Are it. of getting thinking You'd be other to able you into that torture incorporate than

Andy Inglis

wanted two. Neal those Yeah, [XX:XX:XX] to say

Neal Shah

risk NSC ultimately talked terms does about you that, set. where them, in the [XX:XX:XX] about different of a structures with bit a we On financing, talk banks the of number would know,

an they that. appetite And sort some of projects need the finalized will there's to with government the support But, finalize of from the developing backstop. Africa. end the day, banks haven't negotiations banks. in is of the so clear know, we you we Whether At what's sort

may a route we parties. with that as do in more there's NSA, And I because [XX:XX:XX] open know, that dollars, then today. that. it have. reasons of other terms we a go So million and down on for different you the bill of a left couple of are number it are options hundred that we the interested put three good attractive the discussions be the we've pursuing appetite number ability You [XX:XX:XX] a within of there there of had know, have to think other have options do sort

at. that so one that an And the it's we're looking option. few is But of

James Hosie

[XX:XX:XX] Ok, thank you.

Operator

as keypad. And And press Richard question. your One. proceed on question you is any your telephone Capital again, star next Tullis with anyone has [XX:XX:XX] one Please questions, a reminder, our if from may with

Richard Tullis

a Neil for what morning, to good Andy with to stand one, to allow cash XXX Realized price? still Thanks the fund investment twenty three that remaining price? option phase on XX export and million even on table, theme simply is twenty overpraised could at that dollar [XX:XX:XX] an And roughly flows. from for twenty know, oil to development one you the customers the same

Neal Shah

just it fund [XX:XX:XX] pretty the bit. know, I of mentioned, is is secure of and a I'd said been could repay step clear say ongoing number And I to last forty a the debt. to Yes, we've expectation fire for our plan discussions out think to the Richard, in it's a we've sale terms at flow. and project you cash I know, it will flow But And cash said, our as the five you internally there's of we leaseback of dollars, deliver to while I self-funded use we that one priority said, like think, free that. in

it's to our of dollar fund free in even not out flow, world, it while moment. certainly intention so at five a possible cash forty the And

Richard Tullis

of quick the overview expect the the the and total by looking Company National with [XX:XX:XX] back be the do what Ok, at the going the would there. expected the What a and understood, refinancing at mechanics is term? balance roughly Oil increase million plan, XXX Loans. Provide refinancing, to you new

Neal Shah

the as of and out capital Kosmos the governments the the a we today the the both get Mauritania goal, middle. liability transfer loan cover share to basically objective, the BP that as of would So [XX:XX:XX] the of financing the banks be well sort have with their interest policy, to and as

rates, you And say. know, would so attractive, I it's competitive

wouldn't or the. interest oil it And goal we on to interest pure a the just But any do. in the The be both sort of be transfer. so would profit make on economic a side

Richard Tullis

Very [XX:XX:XX] good. Thank you.

Operator

bring [XX:XX:XX] the further to today. at questions they everyone I would time, to a Thanks are to close. joining And no call this since like

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

Kosmos Energy (KOS) 9 Nov 202020 Q3 Earnings call transcript