Core Viewpoint - The article emphasizes the importance of value investing and highlights Kosmos Energy (KOS) as a potentially undervalued stock based on various financial metrics [2][8]. Company Analysis - Kosmos Energy (KOS) holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock is currently trading at a P/E ratio of 7.44, which is lower than the industry average of 8.42 [4]. - KOS has a PEG ratio of 0.43, compared to the industry's average PEG of 0.48, suggesting favorable growth expectations relative to its price [5]. - The P/S ratio for KOS is 1.01, slightly below the industry average of 1.05, indicating a competitive valuation based on sales [6]. - KOS's P/CF ratio stands at 2.66, significantly lower than the industry's average P/CF of 4.61, reflecting a strong cash flow outlook [7]. - Overall, these metrics suggest that Kosmos Energy is likely undervalued, making it an attractive option for value investors [8].

Group 1 - The Daily Drilling Report is an investment group focused on providing analysis for the oil and gas industry, featuring a model portfolio that encompasses all segments of upstream oilfield activity with weekly updates [1] - The group offers investment ideas for both U.S. and international energy companies, covering a range from shale to deepwater drillers [1] - Technical analysis is utilized to identify catalysts within the oil and gas sector [1] Group 2 - Fluidsdoc is an international oil industry veteran with 40 years of experience, having worked across six continents and in over twenty countries, specializing in the upstream oilpatch [2]

Financial Data and Key Metrics Changes - Gross Jubilee production in Q3 was approximately 87,600 barrels of oil per day, with year-to-date production just under 90,000 barrels of oil per day, reflecting a 5% increase compared to the prior quarter [12][26] - CapEx for the year is expected to be around $800 million, with approximately $100 million anticipated in Q4, indicating a significant reduction from previous quarters in 2024 [28][33] - The company achieved a high FPSO uptime of 99% during the quarter, although voidage replacement was approximately 90% below the 100% target due to lower than planned uptime of generators [12][13] Business Line Data and Key Metrics Changes - In Equatorial Guinea, gross production averaged around 23,000 barrels of oil per day, with an infill drilling campaign underway that is expected to increase production to around 30,000 barrels of oil per day [16][17] - In the U.S. Gulf of Mexico, production was ahead of expectations at 17,000 barrels of oil equivalent net to the company, with current production increasing to approximately 20,000 barrels of oil equivalent per day [18][21] - The TEN field performed slightly ahead of expectations with gross oil production of 18,500 barrels of oil per day in the quarter [16] Market Data and Key Metrics Changes - The company is actively managing future price volatility through a rolling hedging program, currently hedging around 45% of first half 2025 oil production with downside protection of approximately $70 per barrel [32] - The partnership contracted a new 4D seismic survey over the Jubilee field, which is expected to enhance understanding of the reservoir and fluid movements [14][15] Company Strategy and Development Direction - The company plans to prioritize free cash flow in 2025, focusing on disciplined capital allocation and significantly reducing growth CapEx year-on-year [11][36] - The company aims to grow production by 50% from around 60,000 barrels of oil equivalent per day to approximately 90,000 barrels of oil equivalent per day by year-end [7][36] - The company is deferring sanctions for the Tiberius project to the second half of 2025 to prioritize cash generation [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving year-end goals, with production expected to ramp up towards the target of approximately 90,000 barrels of oil equivalent per day [36] - The management noted that the Akeng Deep well is crucial for opening up new plays and will impact capital allocation decisions in 2026 rather than 2025 [50] - The management acknowledged that the transition of power in Senegal has slightly slowed discussions regarding the Yakaar-Teranga project, but emphasized that it has not significantly impacted ongoing operations [88][90] Other Important Information - The company completed a series of tender offers to repurchase $500 million of outstanding senior notes, resulting in no maturities in 2025 and only a small stub in 2026 [31] - The company is working on refinancing the FPSO leaseback arrangement with BP, which is expected to reduce operational expenses significantly [86] Q&A Session Summary Question: 2025 CapEx outlook and changes - Management clarified that the $550 million CapEx indication was a guideline, with a focus on free cash flow delivery and a primary delta related to the Tiberius project sliding to the second half of 2025 [39][42] Question: Jubilee drilling priorities for 2025 - Management indicated that the 4D seismic data will inform the next phase of drilling, balancing the need to start drilling while incorporating new information [44][46] Question: Implications of Akeng Deep success on 2025 capital - Success in the Akeng Deep well will open new opportunities but will primarily impact capital allocation decisions in 2026 rather than 2025 [50] Question: Commissioning process for the FLNG vessel - Management explained that the commissioning process is being accelerated, with production recognition expected to occur shortly after gas introduction [57][60] Question: Current production levels in the U.S. Gulf of Mexico - Current production levels are around 20,000 barrels of oil per day, excluding the two Winterfell wells that are being restarted [65] Question: Target leverage point for shareholder returns - Management aims to reduce leverage to less than 1.5 times before considering shareholder returns or buybacks [68][69] Question: Update on discussions with Senegalese authorities - Management noted that the transition of power has slowed discussions but emphasized that ongoing projects like GTA are progressing well [88][90]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35167 Kosmos Energy Ltd. (Exact name of registrant as specified in its charter) Delaware 98-0686001 (State o ...

Juanmonino/E+ via Getty Images Introduction Kosmos Energy Ltd. (NYSE:KOS) turned in a pretty good report, all things considered, for Q-2, 2024. It did so on a day when the world ended-market wise, so no one cared that it beat on the top and bottom lines. KOS, along with most of the upstream E&P class, has been battered by the slings and arrows of outrageous fortune since peaking in the $8s last year. Price chart for KOS (Seeking Alpha) This leaves the company trading at levels not seen since 2022, when many ...

Kosmos Energy Ltd. (NYSE:KOS) Q2 2024 Earnings Call Transcript August 5, 2024 11:00 AM ET Company Participants Jamie Buckland - VP, IR Andy Inglis - Chairman and CEO Neal Shah - CFO Conference Call Participants David Round - Stifel Charles Meade - Johnson Rice Bob Brackett - Bernstein Research Neil Mehta - Goldman Sachs Mark Wilson - Jefferies Operator Good day, everyone. Welcome to the Kosmos Energy's Second Quarter 2024 Conference Call. As a reminder, today's call is being recorded. At this time, let me t ...

Production and Revenue - The company reported an average production of approximately 123,400 Boepd gross (41,900 Boepd net) from Ghana during Q2 2024[120]. - U.S. Gulf of Mexico production averaged approximately 11,700 Boepd net (~83% oil) for Q2 2024[122]. - Equatorial Guinea production averaged approximately 24,200 Bopd gross (8,500 Bopd net) in Q2 2024[126]. - Total oil and gas revenue for Q2 2024 was $450.9 million, a significant increase from $273.3 million in Q2 2023[132]. - Average oil sales price per barrel was $83.51 in Q2 2024, compared to $75.32 in Q2 2023[132]. - Oil and gas revenue increased by $177.6 million to $450.9 million for the three months ended June 30, 2024, compared to $273.3 million for the same period in 2023, driven by higher sales volumes and prices[134]. - The company sold 5,954 MBoe at an average realized price of $75.73 per barrel equivalent during the three months ended June 30, 2024, compared to 4,116 MBoe at $66.38 per barrel equivalent in the prior year[135]. - For the six months ended June 30, 2024, oil and gas revenue increased by $202.5 million to $870.0 million compared to $667.5 million in the same period of 2023[139]. Costs and Expenses - Total costs and expenses rose by $95.7 million to $315.8 million for the three months ended June 30, 2024, compared to $220.1 million in the same period of 2023[134]. - Oil and gas production costs increased by $87.2 million during the three months ended June 30, 2024, primarily due to higher sales volumes and production costs[136]. Net Income and Financial Performance - Net income for the three months ended June 30, 2024, was $59.8 million, an increase of $36.4 million from $23.3 million in the same period of 2023[134]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $496.2 million, a significant increase from $222.0 million in the same period of 2023, driven by higher sales volumes and oil prices[150]. Debt and Financial Flexibility - The company executed an amendment increasing the borrowing base capacity to approximately $1.35 billion in April 2024[120]. - As of June 30, 2024, borrowings under the Facility totaled $750.0 million, with undrawn availability of $455.0 million[149]. - Total long-term debt as of June 30, 2024, increased to $2.65 billion from $2.43 billion as of December 31, 2023, reflecting ongoing financing activities[152]. - The borrowing base capacity of the Facility was increased to $1.35 billion, with $750 million drawn as of June 30, 2024, providing additional financial flexibility[158]. - The company has no outstanding borrowings under the Corporate Revolver as of June 30, 2024, with undrawn availability of approximately $165 million[161]. Capital Expenditures and Projects - The company plans to spend approximately $750 million on capital expenditures in 2024, including $300 million for maintenance activities and $350-$400 million for the development of key projects in Mauritania and Senegal[155]. - The capital budget for 2024 is based on exploitation and production plans in Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico[147]. - The company expects to incur capital costs for drilling additional wells and executing production activities in Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico[153]. - The Jubilee Field gas sales agreement was extended to November 2025 at a price of approximately $3.00 per MMBtu[121]. - The Greater Tortue liquefied natural gas project is on track for first gas expected in August 2024[127]. - The Tiberius project in the U.S. Gulf of Mexico is progressing with a final investment decision expected later in 2024[124]. - The company plans to conduct a new 4D seismic survey in Ghana starting in early 2025[121]. Derivatives and Risk Management - The company recorded a loss of $21.0 million on derivatives for the six months ended June 30, 2024, compared to a gain of $3.8 million in the same period of 2023[143]. - The fair value of outstanding derivative contracts was a net liability of $6.975 million, reflecting the company's exposure to commodity price risk[183][187]. - The company utilizes various oil derivative contracts, including collars, put options, and call options, to mitigate exposure to commodity price risk[185]. - The company entered into Dated Brent two-way collar contracts for 2.0 million barrels from January 2025 through June 2025, with a floor price of $70.00 and a ceiling price of $95.00 per barrel[187]. - A hypothetical 10% increase in commodity futures prices would decrease future pre-tax earnings by approximately $14.2 million, while a 10% decrease would increase future pre-tax earnings by approximately $8.1 million[187]. - The company manages market and counterparty credit risk in accordance with established policies, determining the timing and extent of derivative transactions[182]. Compliance and Financial Covenants - The company remains in compliance with financial covenants under its Facility and Corporate Revolver as of March 31, 2024[159]. - The company is actively monitoring macroeconomic conditions that could impact liquidity and financial performance, particularly in credit and equity markets[163]. Convertible Senior Notes - The company has issued 3.125% Convertible Senior Notes with an initial conversion price of approximately $7.02 per share, allowing holders to convert notes into 142.4501 shares per $1,000 principal amount[169]. - The company may redeem the 3.125% Convertible Senior Notes for cash after March 22, 2027, if the stock price exceeds 130% of the conversion price for at least 20 trading days[172]. - The company has entered into capped call transactions to reduce potential dilution upon conversion of the 3.125% Convertible Senior Notes, with an initial cap price of $10.80 per share[174]. Risks and Accounting Policies - The company is subject to various risks including macroeconomic conditions, oil price volatility, and regulatory changes that may impact future performance[178]. - The company has critical accounting policies related to revenue recognition and estimates of proved oil and natural gas reserves, which may change based on new information[177]. - The company's revenues and future growth rates are highly dependent on crude oil prices, which have historically been volatile[184].

1 Second Quarter 2024 Results NYSE/LSE: KOS August 5, 2024 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that Kosmos Energy Ltd. ("Kosmos" or the "Company") expects, believes or anticipates will or may occur i ...

While the investment market is unpredictable, one of the closest signals you can get to an early warning radar is unusual options activity. This indicator can tell you what the smart money is betting on. Recently, an increase in bullish wagers for offshore oil and gas producer Kosmos Energy (NYSE:KOS) has piqued curiosity. Essentially, market professionals see robust upside in KOS stock over the next half-year period. Such an outlook – while speculative – is also quite rational. For one thing, the Federal R ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35167 Kosmos Energy Ltd. (Exact name of registrant as specified in its charter) Delaware 98-0686001 (State or ot ...