KOS - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, good morning, and welcome to the Kosmos Energy First Quarter 2024 Earnings Conference Call. [Operator Instruction].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jamie Buckland, VP Investor Relations.Â

Jamie Buckland

Thank you, operator, and thanks to everyone for joining us today. our XXXX issued release. we morning, first earnings quarter This accompany slide are of This the to our today's page release and Investors presentation call the available website. on

are to me Shah, Neal through Joining call Chairman today the the CEO; on CFO. materials Andy and Inglis, and go

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

Andrew Inglis

good for momentum the everyone. an at through then Thanks, injection and built start online the this the of and Neal results XXXX quarter's are then planned the us production of online X strong results We'll morning for first walk of to X joining goal catalysts with first XX% to up remainder year with year. first for wells the second been around today's quarter XXXX call. major our open Q&A. well Kosmos later of for Slide before for growing a the year. In had financial XXXX. looking Jubilee It's and the the progress the financial the the our you Kosmos, Starting few from afternoon the expected today this to on all Ghana, Thank our call look of water projects. delivery of you months by significant towards end quarter. ahead half quarter will I'll production presentation to with start Jamie, active operational we I and in

result months expected Winterfell Following as ahead Gulf drilling Mexico, from completion at the shortly drilling operations. X In begin approximately wells. X the will campaign a initial of is of planned of to efficiencies the schedule of conclude production the this in oil well,

later per the The due production oil more towards progress Mauritania third well year, and day. of to year. come several increasing project gross this projects in later In presentation. XX,XXX first talk around this continues to our barrels I'll key Senegal, to achieved expected with Tortue gas milestones about on these move already the is online

time Tiberius our items phase Looking the optimize further Long development to advance to projects. growth ahead, we line of secured being project next and costs. continue for lead are

X-year We Teranga. have license also secured a Yakaar extension for

said important be we CapEx in the company's continued million of XXXX that $XXX quarter, While selective from future, coming the onwards. with will an as sustained see growth and more I last year around is of consistent per as targeted annual measured part years, it

oil quarter. around and we for Jubilee On the year. liquidity The company's the and the bond high infill talk Southeast with about program. the of start-up projects Jubilee XX% almost at now quarter The Slide the through barrels business free inflection Jubilee is reliability of X. talk our per the $XXX operational on project a gross, flow day our of point anticipating million uptime approximately only reflects the will higher in shortly. financial side of resilience been per $XXX away.I'll and the the was development progress both months transactions the RBL FPSO than once first the last starting made remain Ghana This continues first ongoing XX,XXX our in progress different quarter financial near-term enhanced Neal convertible now maturities. few around cash business, across in detail drilling from online extended first to we've production improved these to million refinancing. more quarter issuance units, the the come XX%

result oil as MMBtu. was levels TEN, the Fortis XX-month around reflected high Jubilee FPSO guidance. of plant, line the some uptime was partnership day. of of quarter, with oil the gross second XXX% In XX,XXX this the receives similar expectations per at to around barrels Gross XQ water Jubilee. production sales extension there of is is of quarter per high around and sales in Jubilee quarter, equivalent planned in barrels to also On the the replacement Jubilee and strong XX,XXX gas which per in the onshore gas maintenance agreement of of was agreed XX%, for with approximately Recently, $X a gas an day gas, the injection.

Mexico X. XX,XXX working interest. Turning Gulf of approximately Kosmos Winter net oil Slide in quarter with where barrels for guidance. XX% equivalent has Production in per At was the line the a fall, day of to

the half maintain middle subsea X,XXX job in X uplift down hold oil million as of net per communicated, lifted acquired around Oxy's time Kosmos year. been and offline estimate project potential. workover, actual combined Slide with the items factored In all and turn which prospect infill to when in XX,XXX first expected maintenance X,XXX from previous significant now complete the per tieback later interest the result expected to year. the optimize Venture with of barrels interest targeted both for Noble drill projects drilling oil cargo our invest in partnership Deep the year. We subsea an online barrels quarter. as to these being into future Block the scheduled development barrels of unit, resource the the The pump oil optimize day ILX gross we HPX the development follow-on previously quarter, First barrels oil equivalent XX% second expected in resource with to both gross is the floating campaign drilling result line of finish operator, rate. are The on moving quarter production routine add total long of beyond.Please nearby the sanction in XXX of On in oil X to net is targeting another around The already King is to the most to wells day the which X. from our is around the online safety Lucius greater sanction, well, X quarter. continue plans Certain equivalent, through Sabre paused Gross initial to Kosmos the XXX costs. shortly the Kosmos secured has X,XXX for and the million up of the working the Around exit well exit has our progressing in Equatorial per Guinea and lead To early We guidance interest around fit to G is second Kosmos expected project, approximately in the field The aligned rate. part gross to project the day. year-end projects of is end selectively wells of before a in rig campaign is net where cume for production, in be we is of is be production are a scheduled year. per around equivalent high-return secured Deep providing year-end Equinor's resume to across capital like the rig. farm expected around expected oil Hess. project expected new expected XX,XXX location wells expected of issues partnership. of XXXX Block our XXXX of are expected to and to to enhance within averaged to the oneÂ line barrels infill barrels interval for program capital existing tornado time the guidance. for operator to contribute guidance. and which during King to mid-year. the of during Despite wells now as of included first with a day the The quarter is February, of platform Tiberius, Kosmos Guinea to Production The rig Cody

move his is the which own of now with a X. far and floating of expected expected progress in this final expected partnership across The connection with work in Acme vessel marring is in the on through of left quarter. Inspection The to the financials. over tenereef commissioning progressing the so has work The the to operator more to to gas been FPSO the first in first The first line the critical commence as you is quarter third gas now with to flowline it first streams arrived the first year with path FPSO Greater terminal. the gas, complete work project take LNG all accelerate with first Tortue remains significant is the Book turn quarter. the and to and work complete now has Turning project in failed to LNG continues site fourth with Slide thereafter. I'll expectations installation roots repair commissioning. quarter Neal towards subsea the and the hub ongoing. to in vessel working to

Neal Shah

Thanks, Andy.

made better campaign for both consensus. is with first last XX% net year. Turning in largely the was of the beat $XXX barrels quarter quarter. was compared XX,XXX to in the Ghana within approximately and day of Slide guidance on or Production up the oil progress per Tortue. the looks Costs for drilling was the than of CapEx to increase made the at same were and slightly guidance, quarter of line on leading to the X, around which quarter which Winterfell first equivalent against quarter earnings and an million,

previously in the projects talked the half as Andy expected the the in that ramps to throughout first CapEx As flow his be this opening of expect free complete end majority the production with of and development year, slide, communicated, year. this of up about cash the we inflection year's

X company. to this further maturities. financial Slide to X, important which year the took resilience enhance our the Turning at steps debt looks We of

high-yield in We've yields which future our shares our replaces dilution convertible interest come there which $XX highest March, limit purchased million we we the will pricing get proactively paid which bond cost about to the RCF a end on potentially as at is until undrawn first expense The refinancing this was our proceeds, when of The the future. down share. the seen we due also portion debt. no think our also per the which should equity the from bonds dilution, with is in almost $XXX lowered of expire liquidity call, tighten, help a to be overall RBL convertible the available capped the to year. To those means issuance

also reduces which took future also to raised, dilution. settle cash any the We the option amount principal

both RCF, I'd which the step our on and of The billion year. was this billion have reserve-based around transfer approximately schedule. line with expires I onwards. we have the RBL right of the company. important support to At second to refinancing continue commitment the their $X.XX $X.X current the the extended facility. now of X maturity convertible the the as from facility Through our and staggered commitments refinancing, shows impact overall mentioned, terms facility broadly debt at in from their the issuance We of thank like size on the The chart with with of the lending end the $X.XX The billion. banks maturity have near-term the the had maturity refinancing previous our XXXX schedule as to no banks increased the by some continued same time, we years. bond we final for RBL to from grow the

the expected cash blue RBL, inflection paying to chart reach As on to the the reducing the the in we plan on the free we down continue amounts point, flow prioritize dark right.

leverage to start to the deleveraging presentation. to oil X.Xx once today's year. hand with back to revenues prices below mid-cycle Andy later commence We up Tortue With from at target I'll conclude in it continue expected that,

Andrew Inglis

And the barrels all of across shows achieved questions. quarter, first year towards Turning in exit it per I'd on XX, to opening rich Combined, in the throughout a open session day cash operational for and They you. create remarks, we catalysts flow said as these XX,XXX in rate year-end I shareholders. operator contribute business more turn inflection slide the we achieved was already to for goal call the has months. Slide financial we equivalent to X like a The point. lot units. future. have the believe come free now portfolio of graphic a significant of in our value The our with our the several over Thank just the and built same busy now oil to quarter near for a will momentum and my milestones to rolled

Operator

be we and and will conducting session.[Operator a questions. while Ladies moment wait Ladies gentlemen, gentlemen, we will question-and-answer for for now we a Instructions] poll

the is from Stifel. first question of line Round Our David with

David Round

from me, please. questions Two

Firstly, recent a in please? seen about can business the to the Senegal, country. I There's lot in just all any whether been impact the And activities ask you've there, quite elections following press. at

So I'd please. any comments appreciate there,

elsewhere Secondly, going just obviously, could great off? there was again. wondering, asset. recovery area modest there there on memory, with drop you far. quite see see once a just good CapEx activity that a big relatively I'm a Equatorial a become of to forward in-place factor obviously Guinea, activity bigger From been That's number so

Andrew Inglis

I'll Yes, David. them both pick those. Yes, up. of thanks for

turning think Senegal to first. I

the actions countries the their in to government. not is Kosmos, countries I are that host and of is our think irrespective new really and all align is changes for starting of ethos needs, point with

I sustainably the grow think enabling social Senegalese in drive economy different the we're progress where our the no approach gas for development low-cost is country. of to and Senegal,

degree objectives, and cost to high of the doing alignment want a the for population we're improve what are they environment. this and government's new clear, there's between of So living economic the lower which

very Energy officials I conversation the to and early But is I'm are the And accelerate There The can constructive think appointed. new for we development to and administration. team Mining have benefits it's be resources met around gas a pleased the days dialogue. country. centered of it how with the Minister. was say many new Senegal actually to to the accelerate my the still

year, of terms of that X unchanged. capital-efficient expansion domestic bring our in this day, with will a to Phase the move country. the move export forward online We're the enhance Phase which later then and working with forward So day Phase the business gas revenues to partners scheme the II, Senegal all of and X for at YT a states to economic bring benefits and the will LNG social is

we're from as So there's think that a we pleased to a initially of enhancing about undeveloped over resource. And say I you're lot real actually for I'm the And say correct it essentially to agenda.On that dialogue -- sort Guinea, a workover a how when we I asset, there's actually win-win. of think was took shape activities. do to the in Equitorial basis that constructive production

-- If constrained. you talked remember, it we lift I about gas think it was being

to one of of rightly the moved in phase, actually and we've say, and a I distances. then then the in of different and an you we We're short the we've deeper drilling, about seen the So that the targeting campaign, which which And this comes significant facilities to which is cume. it into well that we're And current infill clearly, think, as amount if with Sabre bring in, a activity. very ESPs, -- is test actually, in got on is in infill tieback that a benefit knowledge we're a moving, up now the following King Deep, the Albian.

think I got you wells of So we intermittent the that, cume X something avenues. X drilling profile. like see XX think can or of where And I campaign, SEBRA for sort would sustain X is sort we've months, an certainly what every production infill and

profile. the base. grow maintenance of king I with actually got is you've CapEx All ability of of to think in deep, the that then forward a And the forecast the

Guinea if think I have you think, profile activities, about drilling sustaining with, King success a through of we've infill some deep. coming I workover-type got plan Equitorial that growth sort at clear the still So a in

think So it's really a acquisition. good I been

we've a clearly plenty in of us facilities really the out to think enables go activities. approach wins, more sort over well the I worked the And work through target having go into programmatic move which we're to now and But there's capacity quick to quickly.Â forward were infill. very moving phased program around here it to a with the really

Operator

Rice. Our Meade from line is the Johnson next Charles with of question

Charles Meade

and the than probably the team rest Andy, sure we and excited there. that Good underway. see to morning Neal you're are of more I'm to Andy FPSO Kosmos

going maybe we cool giving can the through the down, I be And the FPSO to are more or what the get the hooking introducing if with highlights for pieces FLNG some and on to FLNG milestones be wonder through it can or the I then that but the gas would that pieces you elaborate pieces pie But take just congratulations or that. should you lookout puzzle add to so for? of gas. us to first whole next that imagine the risers,

Andrew Inglis

love the whether questions question. you've I already answered

Charles Meade

that. about Sorry

Andrew Inglis

the is we as the -- next start first enables coming The question Kogan step say, introduced. the a of mooring. the hook start FLNG, make gas and on of in vessel, process, clearly work. cetera. is to of you -- into -- terms we've in this some then said, in FPSO, to or FLNG a work it's vessel The I work got while you hub sort up the then be morning et And the gas, you Clearly, the then be more think. it's I think had The the first X think equipment it a the no, now of will of Â It's we've months and you've a I progress the is it, of FLNG piece you of in -- terminal, at last matter days. lot got it ongoing. is cargo, location start that commissioning -- on as the done, signs top few with of to than And the the is step connection the risers

we? it subsea now through equipment, you final there. that the pieces major -- look think tie-ins are With are all well. doing the described Where is that the you proceeding we the process, really as work envisage. and I So if They're

The and work, on start activity. hookup us path. to enabled has commissioning of the the the FPSO clearly, location getting that But on with we're liquidate So critical pleased vessel the the to progress FPSO there. remains

I do, this we're think to been so do So on have we were to achieved what milestones going year. and far the track we said

riser the location behind on gas. flowing quarter the work that us hookup FPSO important step then hopefully, an start the allow and the update completion and then getting the next So you clearly as will get of we with And we'll to us. -- which is

Charles Meade

follow-up, Teranga then I'm add And exploration. you And the the BP maybe of mean wonder context guys you involved, I but tell I played that lines you guys it. could are be out Got is want detailed if the what's around have you still if kind along going... -- some BirAllah just still didn't Yakaar this plans. in how to some of wondering us

Andrew Inglis

step No, It it, that repeating Tcf. to if sort think are it's good back, both is Tcf, XX advantaged Charles. in-place I of question, we numbers, negligible scale discover probably And it will of and BirAllah you worth has around close I Europe. [indiscernible] And resources, gas. of gas believe it's sort of again, XX think that sort COX,

governments. on NOCs with will didn't it license license, project. that we enable in it independently lead And returns BP and YX. help the We've be the to work. we attractive move cost-efficient development we're allow either partners on knowledge keen the with proceed both and [Indiscernible] them will we So for believe of that the the the secured to work both We've we subsurface an on countries have with Mauritanian And around BP longer the us how both of to innovative believe extension with we attractive but to project concepts secured forward. the government discussions they're the no that to propose, now progress can can schemes

are, well. I there's think lot interest been third-party of So and that's the where assets as a we in

the bring both where we is ways actually create properly in a with equal them that development So we to believe partner for move to we're with will enable represented, they're which and governments both we're believe working trying [Indiscernible] thing a forward. that actually to find working good partnership clearly -- to an

you that work characterized we're think correctly, it I to energized So and on agenda.

Operator

next line the Â Our Research. is Bernstein from Bob question of with Brackett

Bob Brackett

Â Charles most of my stole thunder.

all The try me so by that up. the to you by So has follow Tortue FPSO, expected let muster. pass operator been vessel

And so to it go. is ready

Andrew Inglis

Yes.

all in in allow leads do months a having I to things, the we the close us to with additional months the it X XX work progress size fair As further work. to of Bob, does top we're blessing the on of sort that think had January is to curse -- X

So execute. a the scope And of push a think we right the to the lot past understand I well. in you're think work around very to FPSOs with of sort I sale question

therefore, plans So scope understanding work I clear think scope. what that to work how we've got clearly of a good execute on the is and

advantage about do good Nothing's as of result time the top the extra clearly, it's feel leads. I I side time done until having But have, done. So we of the a on on that. the think, work fair to

Bob Brackett

extended follow-up for PSC had been BirAllah. comes The The years. to X back

You the good in the in be of to I'm you think a been along. How to Or line clock with competitive the think partnership track project many? natural a And bid and for BP whether push that about The government there. working where kind owner we one out. this could brings that ran are does development and intrigued do market? of that you're faith concept asset fast go what of you a to by have

Andrew Inglis

Bob. Interesting, Yes. Yes. No.

of actually to could what the partnership. creates moving uncertain an a clearly, they is that the find go mean do think is to government way the et constructive negative of that I out And the that market it forward a by project that I cetera. with trying Clearly, open bids, in the way. Yes,

bring have all there to somebody seismic a GCA existing doesn't Orca. knowledge GTA calibration subsurface knowledge believe of try who of of the have on of desire then is the on that data -- work genuine potentially that -- knowledge and have. X wells development one We we the the and the probably on that wells new partners Mastodon appraisal the against bring bringing and You're we Berela. that knowledge. set. the with wells the We in We've

So knowledge, bring. that I the significant believe, we

In And terms is of cost big in ultimately, where efficient terms subsea it's do that's the in development really increases the how you we've industry in subsea. the the the get concept, of about cost layout. seen

So minimizing the you by minimize it directly gives that lowering benefit drops, enhanced over architecture, additional That the you the putting actually FLNG recovery. has the field. vessel pressure which of

engineering those ways -- in too the we're development. cost are of into without bringing which basis So those in the going in concepts the much on detail, working you and And Bob, the BirAllah. are to those are the change the those concepts YIT, are can

Operator

with Our question from Matthew of Smith next is Bank America.

Matthew Smith

couple, A please.

talk would I first the be around off and the there the the rest started gives additional the to commentary that was and year if Just could -- Yes, that leave seen give perhaps to in the online for start Ghana the second. the I'll at all if exit some gives own you of year, just how of this could post fared but had confidence of frame rates interesting come sort performance producer the you missed oil hear. in us additional versus to of in your any back an the one expectations, sort and what on confidence you've sort in apologies year that in and Just at outlook? I you of that of color The Ghana, quarter? April, how to the particular, you of what at call, quarter? I guess, that suppose you full the Jubilee

Andrew Inglis

I updating think sort of you.

barrels day. So we look if think across averaged you XX,XXX per oil April, March around and of I

brought we're and injection, we're the actually, is optimizing to we And final final producer, to going on that. setup say, we've finally, the that the completion just the recently So then currently of as which you from subsea got being the start shortly. -- its maximize water brought drilled. the in on benefits And then

it's So I days. think early

the of think sort remaining fundamental look as part the were of on. field forward focusing the the performance over I to things year, So we're of you there X

recently the is ramp-up added wells in rate. the first The the contribution to of

have on in is I the XX% Jubilee the we second quarter, The first FPS. close good reliability to really think

we I maintaining one clearly, most reliability then forward. replacement. maintain So levels where and third we is to point get the XXX%. really downtime of challenge the didn't year high last of the think high That had need to And important is was level going a that voidage around

we in worked the first maintain forward. good need sort pretty Now We sort quarter. that to of of going

We a a down, I think, GTG for weeks. have had of couple

slightly So critical month. a under XXX% But the in we've last probably been factor. that's the

great on. the absolutely program, injection pretty is the And X wells impressive. months probably met final actually expectations. performance the it's All really are probably in rest I on overall we to the and and So those which said, influence has is wells a job of across those think, the over therefore, I things this the of reduction our -- think done, focusing the we're created of drilling year. that are outcome gone timing well. And has things that when are the the -- done going the the water We've close to drilling drilled the operators program, the

of that's Matt. where So sort today, we stand

Matthew Smith

would the one, once to that be And per Neal. million indication imagine to flow projects EUR quarter for us XXX the perhaps back a EURXXX given growth I are free perhaps you've just second sort online. coming cash of million

world. there. I correct cash numbers just you I Brent wondered a please mistaken Brent, sort to I'm those talked if we're flow speak to think broadly But if WTI I XX if underpinned remember in could speaking, by that of $XX XX upside or free sort if you being me to XX of rightly, and sensitivities

Neal Shah

Matt. sure, Yes, And that's yes, right. about

of $XXX yes, sort the $X generally, And oil think for the of it of free $XXX year for Tortue about change of every a free flow $XXX price. post million Brent, sensitivity, getting in I terms that roughly quarterly in the -- flow cash sort of price -- the pace. cash realm. stay terms cash in online Winterfell will per same. $XX million In quarter It's TI at million $XX of and to the

to And million you and minus or so million quarter, $XXX a $XX the year, plus million if move rent. $XX quarter, the $XX a $XX-$XX Brent for million

and So it the sort have -- yes, we currently is upside. of access full to

So clear.Â we in fully It. Well, that's participate that. can very

Operator

line question is Wilson with ofÂ Mark the next Jefferies. Our from

Mark Wilson

that regarding production My fourth I increase your LNG in drivers into the guidance it FPSO? with know on main how the across group reiterated the is comes $XX.XX just the question start the report check first second of question. That is Tortue? it quarter. half would we Can from Or gas first that to if my is in comes be quarter you third as then Tortue the

Neal Shah

Yes.

quote on sales, done the to in it it by for production. in how an driven and report But similar basis just similar So where we Ghana be to EG will quarterly of we entitlement do it's how Mark, we cargoes. terms

as entitlement the overall so be volumes. way that be EG. by to FLNG same will condensate that goes in into do tied of ultimately we goes in And vessel into production cargoes will FPSO use volumes Ghana are sort and a driven the -- the LNG for basically sales entitlement cargoes But

Mark Wilson

Got it.

Okay. I understand that.

Okay.

to Jubilee guess, I production in and degree. and in question, entitlement big some there, another you XQ my spoke So it would Andy, FPSO XQ. second for to just And driver be for then

account, into XXX average So year taking of or even expect can the still that do the points those higher? various all you rest field for

Andrew Inglis

ongoing. outcome. is what benefit well We've do, to wells. optimize final deliver see We would infill finish Mark, X said, and the to new doing then we said we the configuration system for of need Yes, to incremental got the the the as and that that's we're I which

that So to we that's variable of the need right. first get sort

distribution and then changing patterns because new is the bodies that that around clearly we is new pattern part and reliability it. The a water. of to of of critical. offtake Again, we're start replacement of the the coming to And I then year, the think is need fundamental optimization wells offtake and the really of the pattern of the good in, because continue second reservoir the sort maintaining

I outcome. lots that to there's Mark, deliver work on, to So think

go. to of we've that sort all in is, step is more wells online, first and get drilled The the of and got to one

it's do, through and to So progress -- quarter.Â the up-to-date there's keep we the we'll go clearly, as on work you

Mark Wilson

is My out farm-outs. the understanding and be Yakaar you'll then is And fair where when last getting towards that's that for that way the looking -- on see pre-FEED Is representation? the a market the to working me. question Teranga for what of

Andrew Inglis

absolutely, is It Mark.

we've got the if the really a of sort -- there, by doing you that the we're your middle the completing work future think about what piece we've of the talk So question was which I year. where we're the pre-FEED pre-FEED about, now -- is done of

the we've administration. then of With the for the then discuss cost a the And concept. a base new this Teranga. validation with got partnership new technical about pre-FEED, Clearly, to we've got Yakaar creating is

ourselves line being to Our is Petrosen third. X/X, new the around for partner a a objective partner, third a

gas low-cost that scheme. in. to government the create bring to we work to to fiscal export arrangement, the a need to have a to enables support have there. we So stay new us an They're that with have going partner and clearly economics which And LNG in

you Now with those can financing, work have finance. is the in on the intent then the FLNG vessel to pieces X place,

do for on done steps be financing. a then pre-FEED. there around to There's with the to alignment of on work here. new fiscals administration sort work and which done, in series partner a of technical be new There's there's a to there's to done is there's work So milestone be

be together, those we've the work can got you work, all X then bring until feed, on start feed You on starting done. those is but we which real won't things

progress lot on working start made far we've election, on -- a items. the think I and next again, post the So now can those so of we pre-FEED

Mark Wilson

faster appreciated. really maybe governments interesting on. look did me Yakaar It would that to like to development be last towards BirAllah you moving Teranga comment in you that that then Yakaar it and did Teranga And was a the moved the set concept when to respective answer BirAllah has have now. between -- occur arguably, PSC. the the Then this differences now extended Â That's

interested respective hear comment So be differences would the to on. a

Andrew Inglis

the exit governments has move Both enable are Mauritanian difference. resources a to development with post its benefit equally been of there's think government think clear anxious to the of gas don't I their actually the BP. I country. about BirAllah the forward objective And Look, Yes. to

with there, up can participate fundamental So to Mark. about agendas there's compelling how differences And it's think I and opportunities. we on don't come therefore, them those help any investment

Operator

Goldman comes Our next Mehta Sachs Management. question Neil from Asset the of line with

Neil Mehta

I have here. questions of couple a There

your just is first deleveraging. perspective on The

and you numbers. what's get cash priorities? do Neal -- you how referred As on quickly that inflection the there? how think free level? to get And can you flow How big the are into debt really that are the those reducing And sheet? about the target What balance

Andrew Inglis

answer Neal other the let that. Â I'll

Neal Shah

think Yes, a changed. leveraging the objective on I to X.Xx than to want on basis sustainable through cycle. less hasn't get We our

cash products sort floating are just And cost its moment. generate flow our given to going highest so at piece towards and are allocated probably we be initially online the and of preferentially the rate that interest RBL, free towards that once the the

that And I the the clearly some of we oil cash get RBL. free returns. some and think see it competing for X.Xx capital debt work you'd And in sort of our in got on front perspective, end priority reduction, around a directed debt cash once clear priorities we've of do versus flow from less environment, sort so allocation then been repayment then to of towards a flow. the again, that's towards to free terms the comes price And normalized that

first. have just we'll normalized today, in the So future. of than that's on a discussion But that focus to to the less to price X.Xx continue as getting

Neil Mehta

near-term opportunity debt. created But the you I think it That was just to interest makes around an lot lot rate to convertible then of because floating around expenses about want manage give issuance stock. it bond a volatility Neal. of sense, talk the And I a

to perspective should thought your approach the why cost-effective that about And financing? why was So just the you long that think that -- we on how term? over most

Neal Shah

Yes.

has optimize it's -- discussions again, to I of without capital couple so And since trading back around for regular we market would over debt that and markets liquidity months we've market current how executed the and proactive just the for the maturity expensive available. about. get into a where therefore, that past had and think number to always of you when on the cost the the had a the March. we've ahead last Ghana and levels have new issuance back both equity been bonds, that And traded we issue regular therefore, issue look the of secondary in the holders and a bonds new quite something bond from 'XX therefore, lowest around we've and impact to access do really XX are our be is 'XX where at wall, again, and and a tried of And sort us, trying convertible to on the our months the debt

the that can was couple so schedule in the maturity to the time thought next And interestent for manage to you years really RBL, runway with we've down and the for in that continue of at us and debt. best see the the as pay I cleared execute presentation, to the

the efficient And to of so at the of balance tool on really plan around the the and time that. taking it's organic delivery business of sort try execute the off most to focusing sheet the using agenda,

really that was there. So the background

Operator

line question the with Chandra next from the Benchmark of Company. Â Our Subhasish is

Subhasish Chandra

next getting free number. some of cetera? a couple $XXX on that on other with us CapEx Yes, that then cash down and the to might to might sort beyond principle And organic year then either road? obviously, regards sort Neal In that, million be I pay $XXX, following to different Or are you appetite have in the questions spend the of there everything acquisition a level flow. et get organising maintenance guess, payouts, beyond RBL or the that up, GTA deferred off oriented, pending of

Andrew Inglis

we've from of just we program of $XXX $XXX drilling sort start-up post fell program a We've Guinea longer about Ghana, then infill million, the talked dimensions. the talked me the think No, million which $XXX the sort and I wells term, of development was base I to take in infill about winter with that covers capital the sort of we talked X what that. Let maintenance covers And when additional Jubilee. looking continuing million, It there. Tiberius the about Equitorial then in -- of talked of earlier. about it

clearly, capital projects allocating properly $XXX on an the of posting financing And we're million talked that $XXX expansion Teranga. clearly, the would top focused incorporates on spend very think to that on then we're we've today Tortue. in are million projects with Yakaar Teranga of that project X that. to be sort those the of at about that Tiberius say, that In and And to that, spend $XXX million return on I So And growth. of the high million those capital, are FPSO Yakaar $XXX of projects. sort

low-carbon EG is a done there about expansion the low high-quality only cost, we So the of of clear forward than believe growth I we're more we EG be obviously or think we a Yakaar company low-cost, carbon will projects, modest rate but gas, in Tiberius, sort years, of low X of we're X Teranga. and and will Phase can we where last can have grow, not over projection oil, it the mix it be

single get activity has company. decade have on of leverage as Neal free XX% a ultimately time, Kosmos look we significant can level, of a it's we sustain have believe $XXX, capital of we XP over the and think differentiates flow, digits, through basis. the sort at rates. middle down cash can shareholder which, level distribution. which to right -- digits the single to same we it at and subsequently, a growth debt with -- when direct organic set, that's I we So can what we RTP sort really And as we could beyond, of an pay and But an says, of then It a

now not something is really quite cash think a competitive only to we unique. continue So that's and with something ability yield -- return the to flow can cash grow can create which but free actually

objective So that's now. our

cents So I that -- allocated. think emphasize that's $XXX call clear, a therefore, but and on to to the clear capital how and we're we're I be clear point about that about in it's frame going absolutely is And want the the that frame. the

Subhasish Chandra

Â Got it.

Okay.

Mexico, seems what mean have? stick real given so sort you like greater in to assets, in going footprint hear et and they're of no external whether with churn the Gulf you're a interest stranded I cetera, I you loud or the gas opportunities. in of So the clear,

Andrew Inglis

yes. accretive, lighten we've that, you has inorganic through inorganic as Subhasish, therefore, be think accelerates actually been the be company that that accretive And is gas Yes. having journey, to the of well, flow I significantly have opportunity, the any Equally clear set that portfolio, to an which what about, and we've that on -- particularly cash again has organic the I think the X path is upon improve that's that cash flow basis the been actually, may And accelerates a that, grown we've as done side, to which out that that cash actually for to it company. the there accelerate acquisitions organic and case objective. from

to do to we're again, I We mitigate inorganic do opportunity would fit. about us we're So is think from have absolutely differentiates company And don't an clearly therefore, the And building. others. we declines. as not were, what have clear I it buy What decline. things that's, think how

that on are if lightening things assets accelerates then the do clearly, our the those flow let's can for would gas we that.Â the we equally well, of a accretive shareholders cash So then flow if it from accelerate quality reverse free the perspective, assets, is look delivery by cash we something for organically

Operator

this to no to are there since the questions I would call gentlemen, bring to a Thanks like further time. everyone and Ladies today. close. at joining

You participation. your disconnect for now thank you may lines, your and

Kosmos Energy (KOS) 7 May 242024 Q1 Earnings call transcript