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Kosmos Energy Ltd. (NYSE/LSE:KOS) announced its financial and operating results for the second quarter of 2024, reporting a net income of $60 million, or $0.12 per diluted share. Adjusted for items impacting comparability, the company achieved an adjusted net income of $80 million, or $0.17 per diluted share.
Key Operational Highlights
- Net Production: The company reported an average net production of approximately 62,100 barrels of oil equivalent per day (boepd), a 7% increase year over year. Sales averaged about 65,400 boepd.
- Revenues: Kosmos generated $451 million in revenues, equating to $75.73 per boe, excluding derivative cash settlements.
- Production Expense: The total production expense was $151 million, or $25.32 per boe. Excluding $18 million of expenses related to the Greater Tortue Ahmeyim (GTA) project, production expenses were $22.27 per boe.
- Capital Expenditures: The company’s capital expenditures totaled $215 million for the quarter.
Strategic Developments
One of the significant milestones for the quarter was the successful mooring of the floating production, storage, and offloading (FPSO) vessel for the GTA project. This is a critical step towards enhancing the project's production capabilities in Mauritania and Senegal.
Financial Position and Future Outlook
- Capital Expenditures: The capital expenditures for the second quarter were below guidance due to the timing of capital expenditure accruals related to the GTA project, which are now expected to be recognized in the third quarter. With the completion of the Ghana infill drilling program and the startup of Winterfell, capital expenditures for the second half of the year are expected to be materially lower. Full-year capital expenditure is projected to be around $750 million, including the resumption of the drilling campaign in Equatorial Guinea.
- Debt and Liquidity: Kosmos exited the second quarter with approximately $2.7 billion in total long-term debt and approximately $2.5 billion in net debt. The company’s available liquidity stood at approximately $793 million.
- Cash Flow: The company generated net cash from operating activities of approximately $224 million and reported a free cash flow of approximately negative $15 million for the second quarter.
