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Kosmos Energy announces 4Q19 and full year 2019 results

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Oilfield Technology,

Kosmos Energy Ltd. has announced financial and operating results for 4Q19.

For the quarter, the company generated a net loss of US$36 million, or US$0.09 per diluted share. When adjusted for certain items that impact the comparability of results, the company generated an adjusted net loss of US$37 million or US$0.09 per diluted share for 4Q19.

4Q19 highlights

  • Net cash provided by operating activities - US$228 million; free cash flow1 (non-GAAP) - US$139 million
  • Sales - 7.5 million boe
  • Revenues - US$450 million
  • Realised oil and gas revenues, excluding the impact of hedging program - US$59.76/boe
  • Production expense - US$136 million, or US$18.12/boe
  • General and administrative expenses - US$21 million, US$16 million cash expense and US$5 million non-cash equity based compensation expense
  • CAPEX - US$122 million

At quarter end, the company was in a net overlift position of approximately 0.3 million bbl of oil.

Fourth quarter results included a mark-to-market loss of US$36 million related to the company’s oil derivative contracts. As of the quarter end and including recently executed hedges, Kosmos has approximately 18 million bbl of Brent oil hedged covering 2020 and 2021.

Kosmos exited 4Q19 with approximately US$825 million of liquidity, total debt of US$2.05 billion, and US$1.82 billion of net debt.

Commenting on the company’s 2019 performance, Chairman and CEO, Andrew G. Inglis, said: “2019 was a strong year for Kosmos with the business generating approximately US$250 million of free cash flow, the third successive year of material organic cash generation. Our free cash flow enabled us to reduce our leverage and initiate the payment of our dividend, in line with our strategy of protecting the balance sheet and delivering shareholder returns.

It was also one of the most active years in the company’s history with over 1.7 million man hours operating five wells. Importantly, this activity was executed with zero lost time or recordable incidents, a best-in-class safety performance. Our exploration and appraisal program delivered five successes from seven wells drilled and we continue to make excellent progress with our developments in Mauritania and Senegal with Tortue Phase 1 around 25% complete at year-end.

Kosmos is integrating climate risk into its business strategy and we see the energy transition as a major opportunity for progressive companies like Kosmos to play an important role. Today, we will present our climate policy as part of our wider environmental, social and governance responsibilities, with a commitment to both transparency and emissions reduction. With a diverse portfolio of advantaged oil and gas assets, Kosmos is well-positioned to deliver shareholder value while advancing the societies in which we work.”

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