KOS - Earnings call transcript Q4 2024

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Operator

Good day, everyone, and welcome to Kosmos Energy's Fourth Quarter and Full Year 2024 Conference Call.

As 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 at Kosmos Energy. Please go ahead.

Jamie Buckland

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

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

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

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

Andrew Inglis

cash Thank Thanks, and Jamie, provide and maximizing strategy how of today's in differentiates rigorous you focus fourth for and portfolio the and XXXX XXXX for year us full generation. made call what ability management. and like to quarter our today cash generation outlook on by We'll good joining morning to everyone. before we've cost Kosmos' call. on deliver the to for I'd results about begin an the talking we and progress and the then revenue sustainable discussing financial operational through update will afternoon

years. the set a on X. more world-scale growing of and be of can life diverse our oil of a XX with quality Kosmos with unique has size portfolio assets. seen Starting the XP a Slide longevity asset portfolio of of for than a in company gas base the reserve The

in positioned increasing deliver our global costs long-term energy as and cash margins, gas flow, and to growth low in mix. Our oil assets cash high operating grow with continue assets margins LNG are targeting gas particularly the sustainable revenue by while to are characterized

Kosmos, the chart with can XXXX peers and free on with international attractive plotted slide, U.S. capital well free in of on and is 'XX the majors. of of as side ramp-up yield, be term. cash flow have to which GTA we annual forward, flow is an right-hand for important reduced from production the at medium year With drive quarter as ongoing seen which an the the XQ sustainable Kosmos in increased given and year, used our Kosmos expected other cash maintenance an against planned we fields first the the the believe

significant gas to infrastructure-led in quality a oil hopper our as has alongside cash the prospects future generation Yakaar-Teranga of discovered portfolio and addition In exploration of with opportunities, potential, Gulf and strong material the also such optionality Tiberius America.

grow half XX% to the the portfolio. set Winterfell X. to foundation achieved target, built capacity Turning wells through be a and The we with this around second target slide of in Slide GTA In Ghana. several and projects to production that we've the which XXXX, on achieve the can shows across of chart by new ramp-up

to to rigorously, portfolio XXXX ways XX%. are but build on scope, are as the the over work and expected sustain associated further these potentially with million refining just to In where being the also on grow CapEx significantly reduction up, from the working possible. them CapEx and it. We're year, We'll reduce not to managed ending. projects of total costs XXXX, this resources it not a million the same in needed $XXX average associated is to be over $XXX Importantly, the start fall XXXX

prioritize have the includes workforce the $XX across things. from of the the XXXX. in depth right end effort million given And focused having the exploration annual This Largely X.Xx rest paydown discovered contractors and With of of growing by Gulf free of below across term, the prices consultants America, therefore, debt base, leverage goal which, mid-cycle flow a intend targeting the and oil focus around the reach and resource the further in we're our of to after cash our right base we we'll until our lower production in near for overhead reduction portfolio. a generation. external shareholder reduction focusing balance we cost on In on the and cash cash a is returns. paydown of we debt

across with by Slide with reserves is reserve potential cash saw diverse the diversity more upward X. XP as of base production Turning project. driven across generation broadly the now gas. to multiple the GTA reserve we revisions split continue end ratio year, At the strong largely of Underpinning replacement XX-XX and progress company's oil we replacing during gas XXX%, and a adding and a last geographies XXXX, year's the to

versus ratio the Kosmos XXXX. With scope for U.S. ship international more production chart a to as its equivalent the about later oil first bottom reserves drilling slide. the further is XXXX, revisions and in Year-end and and be to in of Jubilee there the upward major of barrels this of of years, XXX peers a represents Winterfell XX our project seen million can on cargo and for reserve differentiator year, XP

we and come. message XP the we years inventory reserves lives, while cash into declining across XP have XC sector reserve Including the closer come. Over enhanced resources to XC highlighting for resources reserves through XP seismic companies many infill from and drilling running reserves. the many base number that, for further organic into the to XX sustainable sanctions, room project extensive important migrate resource is this have expect beyond many time, and face years to is reserves and takeaway support to the years, imaging, we to slide generation The

resilient from X touch XXXX. of ending briefly on to Turning I'd more We to a better, year company. some Slide highlights XXXX, the where a achieved in lot with like the

X Safety Kosmos, total at a and of key maintained we performance lost safely years. a injuries achievements. injuries. we is year safety with recordable Kosmos, injuries. Looking continue during injuries focus total or time is is a high to recordable the many the industry year below well at incident operate This for rates to during time at some lost continue and operate with focus trend with Safety safely key the averages X or we've

As longevity reserves highlighting of year-on-year XXX%, previously mentioned, the replacement barrels portfolio. reserve of the to XXX ratio million of equivalent, oil grew our XP a

half the production our the maturities We online the total of first and Late and achieved expected first maturities with GTA the with oil raised achieved rise at in the Winterfell in in summer expect our lifting Winterfell-X new this to as first next fourth enhanced rates, a facility. the million minimal the project activities with of significantly bonds increased production fourth a over back in X the in years. partnership gas and refinanced average our first shortly. production competitive year. Through year, quarter earlier online we XXXX well we LNG later the expected achieved financial second cargo quarter, of position These early of RBL and month capacity near-term weighted and $XXX this at extended comes

through now will the and the color and point, Neal financial you some provide year. quarter on the last will for results the take

Neal Shah

Thanks, Andy.

been voidage flagged injection over replacement to Production due far quarter last to X. Slide partly have reliability taken water to was XXX% issues was year-to-date. Jubilee resolve so operator. guidance, than Actions now which production, month lower fourth the Jubilee lower by with and the the for Turning at

the infill down a prior and being -X and saw ramp-up most delay slight also back in the of production EG wells to Winterfell-X year. from brought late in the We the were quarter online

the an production planned quarter, programs is expected The with other Equatorial broadly the XQ in of to Tower, scheduled a the appendix be program maintenance in field but XQ maintenance production current Guinea. provided Jubilee slides. which Detailed includes some several the issues as shutdown the Devils have maintenance planned been flat quarter-on-quarter. hosts largely is Kodiak and The X-month of addressed, FPSO, to turnaround guidance

end ramp are and during quarter full seeing We capacity. to GTA also near the XQ up expect

at costs with slightly largely costs. were to higher budget due Looking cost start-up side, with CapEx in GTA the line

an of Slide enhancing resilience the in financial important the XXXX was to Turning company. year X.

reserve-based around right and X shows current facility capacity we million increased years. new new our lending top mentioned, Andy to maturity X average transactions Collectively, in chart refinanced bringing banks. $XXX maturity our As bonds, the of these schedule. issued increased The debt our of

with minimal repaying due million we We from near-term only $XXX anticipate cash in XXXX, which flow. maturities have

to our our actively we first any approximately in protection have maturity future important manage managed year, solid hedged protection flow, us to single further through have $XX volatility currently hedging cash oil price of we our around program. of shows given sheet. providing downside for the to with large XX% any also production have We rolling our repay It's bottom flow. note, right barrel, half don't per the how debt continue balance derisking to The ensure future on enabling cash we chart the from debt

of be will proactive price XXXX into oil volatility management We through to and continue the in XXXX.

priorities clear both XXXX beyond. year. targeting and our opening remarks key priority the to reductions cost financial that We, is in Turning our generation Andy CapEx intend disciplined our financial management, in Slide therefore, for be and was in X, very to meaningful cash in his overhead.

capital of year-end fall to company, with of XXXX the also come budget million capital-intensive of to end reduction of million we more capital XXXX. a XX% targeting reduction hard the decrease spending the than by $XX expect $XXX We're below As sharply a or overhead working we to year-on-year. a for period around

quarter deliverable second lower we GTA with Initially project. the as initially XXXX generate operating in COVID, the final perspective cost will debt the we the refinancing working onwards, As year place down the well the notes. on bringing them as prioritize should from outstanding focusing from cost. prepayable with and debt as FPSO. on on overall unit a was operator down. the flow cash Which RBL is the XXXX financial The of costs our and highest the pay during financing put And for our expected we're the

and costs cash So are clear: prioritize goals to XXXX, generation. our in growing production lowering summary,

Andy to With the that, take outlook back assets it ahead. year I'll and the through you to for hand the

Andrew Inglis

Neal. Thanks,

funding a GTA the Slide LNG why Tortue, we're slide around time top to hub success about XX of in XX. of the with XXXX in the line the project. field the announced second $XXX In with project initial operator I farm-out final CapEx GTA it future. late $XXX talk that at discovery gas a when for exploration of start Turning starts BP as we've gas million and to in first a ran making we Atlantic of Tcf investment largest decision and our first XXXX, XXXX. took the on discovering Kosmos The the to in consideration production as includes with place, have year. now operator Basin at want journey to excited on been about with create new the Kosmos the in end on total coming world development later, A around hydrocarbon which year of our process the the million

and the related there some Earlier of that of the the China in typhoon announced important have the of this challenges the taken to has milestones been While first project around project. series COVID-related along X a develop. the we including delays years month, damaged major a delivery FPSO, way, to

was maintenance because distances with costs. to early First sulfide, loading of delivered markets with standing is cargo both also the we first and the important LNG advantaged GTA located at an close infrastructure. in very for the and serve to hub are gas terminal. Atlantic in ongoing project hydrogen Basin carbon-dioxide by production contains minimal low the This or It's February, sailing short new environment LNG LNG the Europe transportation and hub the tanker ideally from

now Slide Turning XX, at the looks future. which to

partners cargoes the With ramped the future the and LNG tonnes the of existing on first up have approximately annum, shared from per are fully The partnership revenue at another has feet oil stream fully receive result the cargo in quarter-on-quarter. the phases. start co-lift GTA drive a operator, local X while met. with to second the per soon partners Kosmos cargoes, contracted working year. infrastructure a will gas day. project, starting vision loading gas volume XXX will around or low-cost ensuring standard gross needs under-lift to expansion The collaboratively This million up, key project should quarter, national a a shortly, X.XX the million LNG producing brownfield steady milestone. expected Once of a future which equates cubic to of the been that offtaker's requires increases revenue to the Phase impact over-lift output companies market's utilize expansion limited in With XX

a of build we've see higher as first Phase up On cost recoverable put phases. place GTA complete the the for out producing focused multiple to base the full place each for unit Year which operating we'll providing as year up for X on expansion Initial volumes are X phase time As producing more in The lower bottom and we data the really is left wells positive, the reserve there commissioning in future chart a phases, the costs ramps over and the and shows, phase. ramp capable expansion, is infrastructure a in Phase limit costs, transition to future to the capacity. X+, is facility's than years. should over from The the on trend has facility behind enough partnership us. been gas start-up initially confidence brownfield leverages XX costs

million the contract, a seen on higher X.X have floating vessels While under per tonnes be annum nameplate typically X.XX BP to production LNG achieve LNG should sales annum around we million sold tonnes plants. or of as able per the

Neal In reduce and as partners higher the term, we're our to uncontracted FPSO to volumes mentioned, adding additional continue Phase should refinance margins. with medium costs. should the operating which addition, lease In working X+ expansion drive growth the from further

it's are summary, about to in and room, has a more lot been the today, project get but running where excited potential. So a we're we future the journey

injection Turning replacement Ghana. equivalent, over was XX,XXX XXXX for reliability the in with coupled to primarily operator's water which power Slide J-XX related Net or year, driven in Jubilee XX, at the insufficient voidage by production to issues due just barrels operations oil which in the generation. of primarily below well was target to looks

of operator of delivered replacement first XXX% To moderate upcoming voidage with been the with the management address the seen on required We chart ahead to what decline in slide. the through be can improved is campaign, have months these as the reliability, worked field issues. has of consistent X drilling delivering excess on XXXX power

the ongoing. better understanding Looking the allowing ahead, we the the seismic with XD giving XD migration, of which partnership be in will year locations. particularly an fluid campaign, have active future much is in beginning to best modern processed Ghana, technology, latest a data drilling with the This of terms choose us subsurface,

believe to of Gulf on the in in reservoir has the to Jubilee more and continue focused processing to our upside X management AI. best position tools, of oil We place. seismic the significant including increase We're and barrels are accessing factor recovery of technology latest looking leverage than accessing therefore techniques the billion America

returning We full XXXX. with a also this planned X and to new with wells in Jubilee Ghana continue year program in a rig well that is we'll

TEN of of In expect But terms XX,XXX in XX,XXX year, barrels per between of its Jubilee per specific fields operator and XX,XXX production the for for guidance the XX,XXX trading guidance oil we oil recent the of between day of gross to update. gross production provide barrels day. didn't to

equivalent of of We also net expect X,XXX Kosmos. oil barrels gas to around

well well, indicative before potential maintenance hurricane of moves business on the currently in we as on the which the can remediation production Winterfell first of the in is expected The of seen work both the gradual is before chart the we ramp-up as half The exit performing account the to production quarterly on the Turning of delivered online Gulf unit America, are XQ and of wells a early taking year. the project performing the operator from projects be to of expectations. production drill Winterfell this Winterfell-X job downtime. Slide optimization year-end In rate the the XX. planned Kodiak, saw our of into second in ahead rig which onwards, Winterfell-X and is

managed the the we partner Oxy, cash the of generation. pace our to our XXXX sanction. at given around but to a on out development with aiming We're Tiberius, farm focus complete progress On continue project time

opportunity for addition, approximate XX% our increase to sales us new we activity high-grade activity portfolio Full to more year-over-year. year set. with Gulf guidance attractive an ILX day the improved have oil more of an of net, equivalent giving under is barrels potential of outlook the lead XX,XXX continuously per America In The has in the administration XX,XXX opportunities. future for

understand Turning XXXX, which online, to In wells the fourth we X,XXX quarter, Slide barrels both In collectively with of Upper section drilled late campaign on in better Akeng petroleum results the to zones now the Equatorial we oil in finished did around analyzing oil now encounter per and subcommercial well Deep day Guinea, drilling potential infill the producing the Albian Team gross. XX. well was an future elements confirming is deemed active of but working of were the the area. for system the plugged abandoned.

wells contribution campaign, of approximate the and of latest an the the over X,XXX is per which to next we'll XX,XXX the X have in Full XX% For year-over-year. the fields continuing XXXX. we guidance reprocessing carry year help infill seeing to day we expect infill plan barrels XXXX, out to seismic we're increase be drilling oil net,

to XX Slide presentation. conclude to Turning today's

As communicated XXXX deliver today's and foundations projects in Production to up. online new place to for put in as the XXXX. a our in material, value ramp rising lot in did we I've come shareholders is

financial we generated costs in future. resilience optionality and differentiated cash into the both which flow absolute portfolio this earlier reduce We of plan of And material we We're the and our slides, enhancing prioritize well debt showed use managing support cash provides Kosmos to opportunities, we to in CapEx overhead. the production planned base the reductions our the leverage, for the growth As with have attractive maintained into company. free to to future. rigorously reserve

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

Operator

Instructions] Goldman question Mehta Neil first Our [Operator is with Sachs. from

Neil Mehta

you of deck. questions costs the this morning highlighted couple that a in getting We've been start-up around

appear do how but and is about a it's nature, be onetime place in which start-up working costs and start, you just talk and commissioning maybe about these good out through think framing those to So them? to

Andrew Inglis

We've Yes. FLNG which operating namely the the and given good FPSO components toll, on fulsome talked guidance our Yes, pretty costs. production a the the for Thanks, reflects the key prior costs, financing. about of the today's ramp-up, year, view we've of cargo Neil. update, timings OpEx you and In question. calls best upstream the

remarks, be As we transition see and is costs volumes trend expect all year ramp and be off we we time. then the work commissioning to finish going year see the Therefore, to costs prepared to over our year lower to for as said this would in up. higher this a

going that? more volume, FPSO which alluded to of at drive its ramp-up of per million refinancing X.X to an costs, there's as what's then no So of remarks, the commissioning the million assessing the facility Sort higher. capacity prepared in and then to to annum. contracted potentially X.XX nameplate one-off ACQ volume some tonnes is lease the And And I of do.

X good as get then we're steady what around a a give color give of one-off and probably areas more to can a So those going breakdown costs targeting we those kind and of actually some Neal if remove of you state. little you bit forward

Neal Shah

increasing Yes. per in we'd that M sort operating the expense. it at normal then we of the of then out. the that of which to bring can it's a I to terms you competitive that $X and than of cost LNG more cost going very and as think a on the much And range. long-term how a significant again, that sort And and question FLNG if the which financing we type And expect think little FPSO reduction volume, to. But FPSO actually are per normalize at decreasing But the point. basis $X $X X a look I the another in producing OpEx, you said, the in terms forward pointed Neil, talked when like about Andy components, so is you yes, Mcf are vessel about as a of notionally, state, cost. of normalized

Neil Mehta

'XX, than ceiling there to where scenario around you in $XXX but sustainability about worried can has a that that The Okay. the into lower some a million. of Is for look. are capital know investors that? that's capital be multiyear is we And just efficiency, are to levers follow-up And a could to maximize 'XX nature? early come a I entering who it's talk the efficiency. pull it on are guided company harvest about in of mode could What CapEx.

Andrew Inglis

Good question, Neil.

emphasized cash prepared -- in as I remarks, prioritizing I the look, free we sort think think I are of flow. appropriately

price shareholders about? what yield slide. we're of about showed been And That's XX%. through that's that opening phase. we on that What's clear think We've at flow a growth I our sustainable delivering for. equity cash been have free a looking what around today's

then targeting 'XX, in And about We're the the it's by allocation. Jubilee, rigorous wells you $XXX rigorous cost the forward. is going year-end, management capital delivered base, capital or side, obviously tackling the significant as Now with going And into primarily sustainable a capital Winterfell. the said, and overhead the that's in which million reduction wells sustaining we're on lower. in

going of control. some million. those prior projects around we operated calls, of can going degree balance getting flow portfolio are create about do In we've we of capital between $XXX operated and then the are that got we and it's And Operated have growth profile where balance. those we've a talked believe that forward, returns. right right so growth projects cash forward, And a greater a -- about

are we said to 'XX, disciplined growth. Sort at we're million guidance to base, going the end growth. the $XXX spend got be million $XXX on million growth. of of million $XXX around And of allocation to low we've of the we because $XXX that limited In in

We're not absolutely It's harvesting. So million to million. $XXX about at to sustain decline. $XXX business it's the going not about

of things the in XP a portfolio. its bringing is about basis does quality the years. RTP of it's then sustain the And growth to pace quality one We've over got those company. XX at Kosmos that an differentiate the options And of right on

by that yield that's cash targets. engaged to now. portfolio in sustain can that hopefully, the give cash around got it's cash some the delivering growth flow material discipline And points so that of into plenty the free through that the we work right in around yield. of the together forward remarks what about absolutely of And deliver the we we've And that with organic confidence right on. place can and flow now the should therefore, pacing prepared we've free discipline we're of managing illustrated So growth that the getting the cost,

it's absolutely, harvest, about it's forward. It's cash a not So about about not going decline. yield flow free the sustainable

Operator

Our next with Charles from question is Meade Rice. Johnson

Charles Meade

X+ but Andy, go your X+, Phase that I is the that? from Or for of markets? is it. of to want the discussions the composed the immediate, and timing. include gas -- not and contract that to to increment Is also the about your does back GTA, that comments in what it the Is -- local what Or some what's about to frame prepared I that understand of X.XX time guess you're X.X? calling is want the I nameplate

Andrew Inglis

good Yes. Charles. No, question,

And is actually of have got gas of of in cost relatively I infrastructure that infrastructure relatively, debottleneck in about to so existing through yes? beyond. the a X, best that think utilizing capacity Then we've standard cost, fully close XXX double and low in produces today. is the at it about all to the rest FPSO place what terms really debottlenecking. that plant million it's we cubic X+ feet, place think utilizing the way the the low has Phase So move that to of

to see domestic going capacity component see there. to you're the probably Gimi which a take. gas an going that's the increase of vessel, is And So the in current I the increasing you're think

economic cost those are equally, it's the and the throughput. because But literally projects low at potential you capital very phenomenally to have double

the local and upcoming goal met. And have journey the said, in target as production that's to and on deliver I I studies on. with to timing, XXXX ourselves technical alignment accelerate our we great getting from with now of between the phase is terms BP market So gas in think on the for are Minister while we're a Khaled the needs NOCs, think that Mauritania ensuring

that yes? really It's It's out objective, and the brownfield we expansion. about capital-efficient Charles, of most the have a way. that's doing So a today what getting in

Charles Meade

to makes is about you if XX,XXX -- could you the FPSO, slide and guided to Jubilee you that in, I that day XX,XXX are where Can XX,XXX, And believe talked sense, about it's talk No, I XX,XXX assumptions Can think the about you you gross. have, do FPSO? I to Andy. injection. go XX. barrels it's then in question Slide talk specific generation to have of back you What are about water what oil a performance perhaps the implicit the for assumptions the of --

Andrew Inglis

Yes.

of in look, yes? got I carrying sort fundamentals I oil billion the what are Charles, barrels a it's reserves probably world-class to Jubilee to of coming oil back want XX%. So again, that Jubilee, What is is of It's do We're around of reemphasize, place. think, our recovery X.X field. currently a factor in

produced of just the base. the that, run XX% math reserve we've maybe You on

the recovery will at day. of think the high the in XXs end the factor I be

sort there. less probably halfway than halfway we're -- of So there, yes

right reservoir It's to places. management, So what you about do the do? to is the in ground fundamentally getting water get to fundamentally good have reserves, in remaining about the which

We've 'XX. with 'XX, why is. on replacement, and where in we struggled show guidance the sort that has than impacted the -- less as And is operator entry that's the Slide XX, it of of struggled voidage -- that's rate XXX% sort into

through voidage to is replacement to get XXX% year. objective the Our

that. of there's we've reliability, operator that's address uptime key really piece strongly the about that. work on started has with the to around year Clearly, power been generation and the facilities a we So one Facilities strong, assumptions, And uptime. it's and XX%, XX%.

impacting which planned which is quarter, taking built not the first place shutdown is have do worried in, end that. We at of volumes. So XQ a about sort the of

So those key assumptions. are

XQ. wells the final additional And objective start at one delivering injector. delivery wells, producer back is the assumption The of of one XQ the in end then with and the X

XD think And when well the got the we've Then impact to set assumptions the we're XD shooting already. 'XX We that there. a have objective there's information the a to So is of started year. use we credible clearly I for good from well selection this program. objective to that the utilize then

building of enables 'XX combination of drilling XD, additional forward that rate forward. the the higher then So in then with from exit the quality data of higher a you sort the sustain profile going 'XX, to

then we So issue the making voidage field here. delivery of in which is place right infill reserves about selection is we're the them. of the replacement, going of management, fundamentally short proper not wells water and high-quality and sure get The

Operator

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

Matthew Smith

one be on of questions. If Tortue if again, it phases talking on see guess, further you Phase X+. A -- firstly, would the I with it's interesting about start couple I phases Tortue again, X to including or could. I

I was CapEx beyond of detected Xa though run guess operator future a is to it we in to we say, first equally, go-forward for really I emphasis progressing, with incremental be perhaps, potential looks XXXX? potentially think rate? as million your still then impetus Or years whether clear about the it least the in more Phase should mind in ceiling if schemes? CapEx that those I or could development $XXX terms should the And Tortue keep change should that? So the a And at just from question back could you've link

Andrew Inglis

those Okay. unpack Yes, Matt, questions. let's sort of

between the I the the first -- of there think, on there and ourselves forward. is. of, the is alignment is were yes, it And as sort question NOCs Sort operator way

the the enabling about flowing first I them that data. the the What talked getting from the to start then getting the actually new with about and wells, positive. always to phases next sort would the results has from wells is beginning actually the BP data initial think year of on phase of from is add think I

to enables have of you, confidence that resource underpins base, the therefore, future in sort phases. that the So

So the flowback of as flowback. were it X an I X data into into is that important the weeks think piece or weeks

I we're about really think about next being phases. clear also efficient the capital

we're with So associated as a that said of aiming got expand I Charles, do way. from an It's sort in And brownfield incremental CapEx what value capital-efficient very X+ Neil additional it. add is little really we're therefore, to development. getting and to Phase

work $XXX say to that the find, base. of is, million which million talked $XXX to the we'll base allocation? of within in rinse the in -- So that you sort million answer, does base, $XXX a prior which to million if million I'll do always $XXX go the capital growth, then the in the to sort just to follow-on the $XXX we've is sustains repeat of your okay, question, about $XXX how million

That's the spend today. capital the focus of

So phasing those we're growth about not in And it's mode. not projects. declining. then harvest It's

that So that cash frame current forecast equity more our we've the we've of account that we that but of little yield certainly in talked price, in a past. -- probably CapEx, growth flow the within and takes about terms free

Tortue to free are if and on to maximize decade count through spend is get absolutely underlying more you is flow the going little end question capital of this a of the a So volume revenue. the mods, capital with of well current the doing to We're which The be yes? no, minor. spend? prioritize off It's answer to going is really the sort again be the us and about the races and going massive allows to sustaining brownfield bit cash

Matthew Smith

a could second And question. if I ask

if but one. missed earlier, could. if quick Ghana around Apologies just this and specifically, a Just Jubilee I I

replacement? So said, voidage where run on has production missed it side rate early seems so like in similar clarify, I the the it, February, if it terms things the of production you water to been -- a just wondered voidage if and could like January, run has in far XXXX. replacement apologies is of the pleasing the performance I I

Andrew Inglis

Yes.

forecast. range at we downtime if have you that quarter, we need maintenance. absolutely only from that in the you the of remember the that So And look in -- the to we're the the thing course,

maintenance. we'll in the but in the because the XQ. of we're a little XQ then -- the of starting currently, producing range within get absolutely have impact forecasting that unplanned up we're And wells in So additional benefit the we

the to So to. everything range we've that forecast terms plan in guided going of

Operator

Our Round next question David Stifel. is with from

David Round

issues the Just more out and was other much is it to carried what of a follow-up, to voidage there. How get thought the we that past? And optimistic please, from those comments some on let's I like is feels -- of guidance Jubilee, given your confident away a view point pretty Jubilee too say, you've that the guidance there? results down early which be seen actually upbeat Or are on can in replacement? at

Andrew Inglis

simplistic but Yes, want way, do results. you'll it's it, be right you the question, to in right I about right don't if a over the the David. things good deliver

positively. know we So what is that started And far, operator. say on. it we as was so I we've would need for to focus the the focus it year the

we've be did earlier We fundamental address generation that's going And of work lot power is the going those. at reliability, of identify the a done year. vulnerabilities issue to and shutdown about a think to generators forward. and just actually this I actually one beneficial the

we're So to it focused we we've forecast what be I I delivering delivered. feel that needs be in put think How needs know therefore the done. on And to comfortable place. that

The that those of in variables? record the the we've But a the rig track campaign. the think wells. additional that's delivery The are I be used What past drill to variable rig same prior good we X demonstrated back the of wells. addition will in the coming is of

sort derisks some that that degree. So to of

account I So the very things managing. hold field, for a we're of know us for shutdown, in clear you that set to do do timing we've delivering of voidage therefore, et should is of And think it got we'd is the of the we timing cetera. the we replacement, what what said terms wells, objectives

David Round

Okay.

Can first and there, heard time -- since just thoughts we've you with from I that's the now get is on? this the then, discussions table please, just terminated think the your one Tullow. I Second whether off from

Andrew Inglis

maybe back of a question M&A little I sort of from general. and of Sort in talk stepped sort if the sort about

making cash we're we've right 'XX, projects. we growth yes, period -- long free with of in is and between the a balance get discussed the deep absolutely RTP on and the to can the and been very focused as We've I free through there growth. call, of And end. coming that a of think a built a is with a growth sure And for flow hopper the actually now as challenge cash I you an period company the actually, generation. flow on believe, investment we've delivery see strong portfolio, the and strong

X sort you always then I at lenses. turn to opportunities of M&A, I constantly think through looked think if sort of we've

There our transaction. which, has to and be of most for cash be given it accretion, flow needs our shareholders, any clear focus to value importantly, accretion free on reduction, absolutely part leverage

is planning So deal, short answer we at again? to look what back to of the think it is to answer the on you are no. we that's the for come Tullow, did if so sort instance, I you And Oxy

of equity we have press at forced shareholders. sort put to we out obviously the We David, were release You of by know the very the a shared levels, Kosmos' to end which no our current depressed talks. very, was before intention a were using background preliminary at a stage view

Operator

Our next question is Mark Jefferies. from with Wilson

Mark Wilson

debt ask leverage I'd And that just time shareholder then, us pay like remind for down? point, priorities X.Xx versus possibly level? leverage line to on further to you your that get the you just and beyond yes, expect of once returns

Andrew Inglis

I don't Mark. that? Neal Yes. Why let Thanks, take

Neal Shah

debt flow, we've cash been is of to of pay we clear free regular used cadence in Yes. sort yes, XQ free Mark, priority yes, again, sort the of a cash -- flow. forward. down generation That so

to sort X.Xx, 'XX debt of normalized probably terms in to a is see and of getting And all oil paydown in terms of half price. and the of growth sort a increase. around EBITDAX that's we through Yes, of that that's the are. In assuming as where towards continues of production back combination

of as paydown point, again, where debt we shareholder returns. I that is the the get and further terms in right think conversation to then then reopens so And around priority

shareholders in my our half 'XX. back of continue So revisit that's, with mind, that have that as in the we'll and it conversation to we approach

Mark Wilson

it. Got

this moving another to XX-year great. And over reserve That's your and overall speaks Tortue, XP Okay. one life. to then

clearly you CapEx to to Could per million at X.XX X.X would facility if vessel. required any extend the drill running at this additional spoke and have otherwise You debottleneck long -- in to level? wells the into or to the we to it tonnes very million all even that speak annum, at reservoir the be before Tortue you'd how the capacity little also assumed

Andrew Inglis

Thanks, Yes. Yes. Mark.

go the that As Obviously, all of sort always, what questions. of we into the earlier, we're well. into, whatever of said production the I data build X reservoir it positive. is next it back of X back sort weeks need and is getting to good of the or to initial to sort the I is, therefore, which timing assimilate

the Therefore, the would exceeds we obviously, the the to current wells deliver is of the of capacity and feet to of million around of that ACQ that rate volume the well and well the decline next currently, So XXX need cubic X.XX. timing well on set we -- each therefore, current -- standard dependent see. connected the

time were that. years feet in XXX terms existing will several that of from profile driving because to the standard wells early capacity. frame, are that we the be on increase in it's manifold. you not above in significant I'm add cubic capital. can I slightly from a needing well the then sort not sort that way wells sufficient But that give away XXXX infrastructure on million drill, place And it's probably you of would the yes? year the to you many capacity if going overall guidance I in then how to to is each The tiebacks of But exact think you take think draw of So is

So literally, of those the cost it wells. individual is

Operator

with from is question Johnson next Our Charles Rice. Meade

Charles Meade

guys something twice, that You that? and you're X drawdown the less seeing flowing just performance you've Is maybe you more early these have seen pressures? in wells, that touched on of is the about X you this the first better seen Can weeks. days? Or times, which there in talk

Andrew Inglis

good of of terms associated each days, basically to you're the understand No. the tank is the yes? of productivity, then you good in flowbacks, we pretty the did doing pretty commissioned early actual DST what the and is we wells. -- What extended of did flowbacks with each wells the DSTs in of we So of size when we did think initial Charles, wells,

of had we wells. good pretty a So the of each idea of rate the

think we as is, what the would do production clearly, data wells of the piece of you the of of And needed got seeing the of was the size size one to of we've say few we just So positive actually because I yes? if of indications just we're more like, opposed from tank weeks tank a the days. next sort

Operator

would at Since to bring to for joining there time, everyone the close. a I further to this like no questions Thanks are call today.

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

Kosmos Energy (KOS) 24 Feb 252024 Q4 Earnings call transcript