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 ...

Exhibit 99.1 NEWS RELEASE KOSMOS ENERGY ANNOUNCES FIRST QUARTER 2024 RESULTS DALLAS--(BUSINESS WIRE)—May 7, 2024-- Kosmos Energy Ltd. ("Kosmos" or the "Company") (NYSE/LSE: KOS) announced today its financial and operating results for the first quarter of 2024. For the quarter, the Company generated a net income of $92 million, or $0.19 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net income of $99 million, or $0.21 per diluted ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ 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 | | --- | | (St ...

Kosmos Energy Ltd. (NYSE:KOS) Q4 2023 Results Conference Call February 26, 2024 11:00 AM ET Company Participants Jamie Buckland - Vice President of Investor Relations Andrew Inglis - Chairman and CEO Neal Shah - CFO Conference Call Participants David Round - Stifel Neil Mehta - Goldman Sachs Matt Smith - Bank of America Charles Meade - Johnson Rice Bob Brackett - Bernstein Research Subash Chandra - Benchmark Company Matt Cooper - Peel Hunt Mark Wilson - Jefferies Operator Good day, everyone. Welcome to Kosm ...

[Financial and Operating Highlights](index=1&type=section&id=Financial%20and%20Operating%20Highlights) Kosmos Energy reported a Q4 2023 net income of $22 million ($0.04/share) and an adjusted net income of $149 million ($0.31/share), driven by a 12% year-over-year increase in Q4 production and significant progress on key development projects expected to boost future production and cash flow Q4 and Full Year 2023 Key Metrics | Metric | Q4 2023 | Full Year 2023 | | :--- | :--- | :--- | | **Net Income** | $22 million | $214 million | | **Adjusted Net Income** | $149 million | $380 million | | **Diluted EPS** | $0.04 | $0.44 | | **Adjusted Diluted EPS** | $0.31 | $0.79 | | **Net Production** | ~66,000 boepd | - | | **Revenues** | $508 million | $1.7 billion | | **Capital Expenditures** | $281 million | - | - The company is advancing key development projects, including the start-up of Jubilee Southeast, with upcoming production from Winterfell (Gulf of Mexico) and first gas at Greater Tortue Ahmeyim, aiming to deliver around **50% production growth** from H2 2022 levels[3](index=3&type=chunk) - Portfolio strength was enhanced by a significant oil discovery at Tiberius in the Gulf of Mexico and by assuming operatorship and a larger working interest at the Yakaar-Teranga gas project in Senegal[5](index=5&type=chunk) - As of year-end 2023, 1P reserves were **~280 million boe**, representing a **104% replacement rate ratio**, primarily due to increased reserves at Jubilee[4](index=4&type=chunk)[9](index=9&type=chunk) [Financial Review](index=2&type=section&id=Financial%20Review) The company ended Q4 2023 with $2.3 billion in net debt and $0.7 billion in available liquidity, reporting a full-year 2023 net income of $213.5 million, a decrease from 2022, mainly due to lower oil and gas revenues, with projected 2024 capital expenditures of $700-$750 million [Financial Position and Capital Expenditures](index=2&type=section&id=Financial%20Position%20and%20Capital%20Expenditures) At the end of Q4 2023, Kosmos had total long-term debt of $2.4 billion, net debt of $2.3 billion, and available liquidity of $0.7 billion, with Q4 net capital expenditure at $281 million, and projected 2024 net capital expenditures between $700-$750 million focused on key development projects Debt and Liquidity (End of Q4 2023) | Metric | Amount | | :--- | :--- | | Total Long-Term Debt | ~$2.4 billion | | Net Debt | ~$2.3 billion | | Available Liquidity | ~$0.7 billion | Capital Expenditures | Period | Amount | | :--- | :--- | | Q4 2023 (Actual) | $281 million | | FY 2024 (Guidance) | $700 - $750 million | - The company is seeking to recover up to **$160.0 million** (net share) in damages from the original subsea contractor for the Tortue Phase 1 project due to the contractor's failure to perform its contractual obligations[8](index=8&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a full-year 2023 revenue of $1.70 billion, down from $2.25 billion in 2022, with net income for 2023 at $213.5 million, and total assets increasing to $4.94 billion from $4.58 billion at year-end 2022, while net cash provided by operating activities decreased to $765.2 million Consolidated Statement of Operations (Full Year, Millions USD) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Oil and gas revenue | $1,701.6 | $2,245.4 | | Total revenues | $1,701.5 | $2,299.8 | | Net income | $213.5 | $226.6 | | Diluted EPS | $0.44 | $0.48 | Consolidated Balance Sheet (Year-End, Millions USD) | Metric | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total current assets | $422.7 | $468.7 | | Total assets | $4,938.1 | $4,579.9 | | Total current liabilities | $554.8 | $574.3 | | Long-term debt, net | $2,390.9 | $2,195.9 | | Total stockholders' equity | $1,032.3 | $787.8 | Consolidated Statement of Cash Flow (Full Year, Millions USD) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $765.2 | $1,130.5 | | Net cash used in investing activities | $(994.9) | $(703.9) | | Net cash provided by (used in) financing activities | $141.6 | $(414.7) | [Non-GAAP Financial Measures and Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) For the full year 2023, EBITDAX was $1.24 billion, and adjusted net income was $380 million ($0.79 per diluted share), compared to 2022 figures of $1.45 billion and $475 million ($1.00 per diluted share), respectively, with free cash flow for 2023 being negative $167.4 million, a significant decrease from 2022 due to higher capital expenditures EBITDAX Reconciliation (Full Year, Millions USD) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net income (loss) | $213.5 | $226.6 | | EBITDAX | $1,238.2 | $1,452.1 | Adjusted Net Income Reconciliation (Full Year, Millions USD) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Adjusted net income | $379.9 | $475.2 | | Adjusted net income per diluted share | $0.79 | $1.00 | Free Cash Flow Reconciliation (Full Year, Millions USD) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $765.2 | $1,130.5 | | Free cash flow | $(167.4) | $343.2 | [Reserves Update](index=2&type=section&id=Reserves%20Update) As of year-end 2023, Kosmos reported 1P (proved) reserves of approximately 280 million barrels of oil equivalent (boe), achieving a 104% reserve replacement ratio, mainly due to increased reserves at the Jubilee field, with 2P (proved and probable) reserves at approximately 520 million boe, not yet including recent discoveries Year-End 2023 Reserves | Metric | Value | | :--- | :--- | | 1P Reserves | ~280 million boe | | 1P Reserve Replacement Ratio | 104% | | 1P Reserves-to-Production Ratio | ~12 years | | 2P Reserves | ~520 million boe | | 2P Reserves-to-Production Ratio | >20 years | - The **104% 1P reserve replacement** was primarily driven by increased reserve recognition at the Jubilee field, which more than offset downward revisions at the TEN field[9](index=9&type=chunk)[16](index=16&type=chunk) - Year-end 2P reserves do not yet include any recognition for the Tiberius (U.S. Gulf of Mexico) and Yakaar-Teranga (Senegal) discoveries[9](index=9&type=chunk) [Operational Review](index=4&type=section&id=Operational%20Review) Total net production for Q4 2023 averaged approximately 66,000 boepd, a 12% year-over-year increase, as the company advances key projects in Ghana, the U.S. Gulf of Mexico, and Mauritania & Senegal, despite an impairment charge on the TEN asset and a temporary halt in Equatorial Guinea drilling [Overall Production](index=4&type=section&id=Overall%20Production) Q4 2023 net production averaged approximately 66,000 boepd, up ~12% YoY, with production expected to increase throughout 2024 driven by new wells at Jubilee and the startup of the Winterfell and Tortue LNG projects Q4 2023 Production | Metric | Value | | :--- | :--- | | Net Production | ~66,000 boepd | | YoY Growth | ~12% | - Production is expected to rise through 2024, driven by additional wells at Jubilee and the startup of the Winterfell and Tortue LNG projects[10](index=10&type=chunk) [Ghana](index=4&type=section&id=Ghana) Ghana production averaged 43,300 boepd net in Q4 2023, with Jubilee achieving record water injection levels post-quarter, while a full impairment charge of $222.3 million was recorded for the TEN asset due to a reduced development work scope Ghana Q4 2023 Production | Asset | Production (Gross) | | :--- | :--- | | **Total Net to Kosmos** | **~43,300 boepd** | | Jubilee | ~92,400 bopd | | TEN | ~18,500 bopd | - At Jubilee, water injection is currently at record levels of approximately **285,000 bwpd**, compared to **~150,000 bwpd** in Q4, providing necessary pressure support for elevated production levels[13](index=13&type=chunk) - A **$222.3 million impairment charge** was recorded for the TEN Fields, resulting in a full impairment of the remaining book value and reducing its carrying value to zero[16](index=16&type=chunk) [U.S. Gulf of Mexico](index=5&type=section&id=U.S.%20Gulf%20of%20Mexico) Production in the U.S. Gulf of Mexico averaged 13,900 boepd net in Q4, with the Winterfell development progressing towards first production in early Q2 2024, and a significant discovery at the Tiberius ILX well targeting a phased tie-back development later in 2024 - The Winterfell development is progressing, with first production expected early in the second quarter of 2024[17](index=17&type=chunk) - The Tiberius ILX well discovered approximately **250 feet of net oil pay**, and a sanction decision for a phased tie-back development is targeted for later in 2024[18](index=18&type=chunk)[19](index=19&type=chunk) - The Odd Job subsea pump project, designed to sustain long-term production, was **~90% complete** and is on track to be in service by mid-2024[20](index=20&type=chunk) [Equatorial Guinea](index=5&type=section&id=Equatorial%20Guinea) Production averaged 8,700 boepd net in Q4, but the 2023 drilling campaign was halted in early February 2024 due to the operator terminating the rig contract for safety issues, leading to uncertainty in 2024 production guidance as the partnership seeks an alternative rig Equatorial Guinea Q4 2023 Production | Metric | Production | | :--- | :--- | | Gross | ~24,800 bopd | | Net to Kosmos | ~8,700 bopd | - The 2023 drilling campaign was suspended in early February 2024 after the operator terminated the rig contract due to safety issues, and the partnership is seeking a replacement rig to resume work[22](index=22&type=chunk) [Mauritania & Senegal](index=6&type=section&id=Mauritania%20%26%20Senegal) The Greater Tortue Ahmeyim project is progressing toward first gas in Q3 2024 and first LNG in Q4 2024, with the FPSO arrival being the critical path, while Kosmos assumed operatorship and a 90% working interest in the Yakaar-Teranga gas project, planning to farm down its interest to around 33% in H2 2024 - The Greater Tortue Ahmeyim project expects first gas in Q3 2024 and first LNG in Q4 2024, with the arrival of the FPSO, expected in early Q2, as the critical path item[23](index=23&type=chunk)[26](index=26&type=chunk) - Kosmos assumed operatorship and increased its **90% working interest** in the Yakaar-Teranga project, with plans to farm down its interest to **~33%** in the second half of 2024 while retaining operatorship[24](index=24&type=chunk) Greater Tortue Ahmeyim Project Status | Component | Status | | :--- | :--- | | Drilling | All 4 wells completed | | Hub Terminal | Construction complete | | Subsea | Completion expected end of Q2 2024 | | FLNG | Arrived on location, hookup underway | | FPSO | Expected on site early Q2 2024 for hookup | [2024 Outlook](index=16&type=section&id=2024%20Outlook) For fiscal year 2024, Kosmos guides for production between 71,000 - 77,000 boepd and capital expenditures of $700 - $750 million, having hedged 10 million barrels of its 2024 oil production using various collar structures to manage price volatility [2024 Guidance](index=16&type=section&id=2024%20Guidance) The company forecasts full-year 2024 production to be between 71,000 and 77,000 boepd, with capital expenditures guided at $700-$750 million, and operating expenses expected to be approximately $15-$17 per boe, excluding costs for the Greater Tortue Ahmeyim project 2024 Full Year Guidance | Metric | FY 2024 Guidance | | :--- | :--- | | Production | 71,000 - 77,000 boe per day | | Opex | ~$15 - $17 per boe | | G&A | $100 - $120 million | | Capital Expenditure | $700 - $750 million | [Hedging Summary](index=16&type=section&id=Hedging%20Summary) As of December 31, 2023, Kosmos has hedged 10 million barrels of its 2024 oil production, utilizing a portfolio of three-way and two-way collars on Dated Brent crude with floors ranging from $65 to $70 per barrel and ceilings from $85 to $100 per barrel 2024 Oil Hedging Summary (Dated Brent) | Instrument | Volume (MBbl) | Floor | Ceiling | | :--- | :--- | :--- | :--- | | Three-way collars | 6,000 | $70.00 | $90.00 - $96.25 | | Two-way collars | 4,000 | $65.00 - $70.00 | $85.00 - $100.00 | [Appendix](index=7&type=section&id=Appendix) This section contains standard disclosures, including definitions of non-GAAP measures like EBITDAX and free cash flow used for performance assessment, along with a forward-looking statements disclaimer and general information about the company's operations and commitment to transparency and sustainability [About Kosmos Energy](index=7&type=section&id=About%20Kosmos%20Energy) Kosmos Energy is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins, with key assets including production facilities offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, and a major gas development offshore Mauritania and Senegal - Kosmos is a full-cycle deepwater independent E&P company focused on the Atlantic Margins[28](index=28&type=chunk) - Key assets include production in Ghana, Equatorial Guinea, U.S. Gulf of Mexico, and a world-class gas development in Mauritania and Senegal[28](index=28&type=chunk) [Non-GAAP Financial Measures Definition](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Definition) The company defines and utilizes supplemental non-GAAP financial measures, including EBITDAX, Adjusted net income (loss), free cash flow, and net debt, which are employed by management and external users to evaluate performance and assess comparability within the oil and gas sector - The company defines and uses non-GAAP measures such as EBITDAX, Adjusted net income (loss), free cash flow, and net debt[29](index=29&type=chunk) - These measures are considered useful for investors and analysts in the evaluation of companies in the oil and gas sector and for assessing comparability between periods[30](index=30&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements based on current expectations, estimates, and trends, which are subject to various risks and uncertainties beyond the company's control that may cause actual results to differ materially, with no obligation to update these statements except as required by law - The press release includes forward-looking statements that are subject to numerous assumptions, risks, and uncertainties, many of which are beyond the company's control[32](index=32&type=chunk)

Financial Data and Key Metrics Changes - The operator forecasts that Jubilee will produce around 85,000 barrels of oil per day gross for 2023, down from the previous estimate of 90,000 barrels, leading to lower production guidance for the year [1] - Net production for the quarter was approximately 68,000 barrels of oil equivalent per day, an increase of about 17% from the previous quarter [55] - Full year 2023 production guidance is now expected to be approximately 63,000 barrels of oil equivalent per day due to delayed start-up of Jubilee Southeast and reduced water injection levels [94] Business Line Data and Key Metrics Changes - Jubilee produced an average of around 96,000 barrels of oil per day gross during the quarter, an increase of over 30% compared to the previous quarter [55] - The Gulf of Mexico net production was approximately 15,700 barrels of oil equivalent per day, ahead of guidance due to lower-than-anticipated storm activity [57] - Production from TEN was around 15,000 barrels of oil per day, in line with expectations but lower than the previous quarter due to a planned two-week shutdown [37] Market Data and Key Metrics Changes - The Yakaar Teranga field in Senegal is a world-scale gas resource with approximately 25 trillion cubic feet of gas in place, representing a significant opportunity for the company [2] - The company expects to prioritize cost-competitive gas to Senegal's rapidly growing domestic market while targeting exports into international markets [42] Company Strategy and Development Direction - The company is focused on executing a differentiated set of projects that are aimed at low-cost, lower-carbon oil and gas opportunities [33] - The management team is excited about the future opportunity set and aims to prioritize debt pay-down until reaching the target leverage level before considering shareholder returns [7] - The company plans to balance the pace and working interests of future projects to manage growth and generate material pre-cash flow [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in bringing new projects online and optimizing overall field performance but expressed excitement about the future potential of Jubilee [41] - The company is optimistic about the growth trajectory, expecting a material step-up in pre-cash flow as projects are delivered [36] - Management noted that the energy transition is influencing investment strategies and creating opportunities for the company [15] Other Important Information - The company anticipates a couple of quarters of higher capital expenditures ahead, particularly for completing Tortue and Winterfell, after which debt reduction is expected to accelerate [5] - The partnership is making good progress on the Winterfell project, with first oil on track for the end of the first quarter of 2024 [39] Q&A Session Summary Question: Can you provide clarity on Tortue CapEx and its phasing? - Management indicated that there would be a rephasing of CapEx due to subsea work, with some capital slipping into 2024 [10] Question: What is the status of the Yakaar Teranga project? - Management confirmed that Yakaar Teranga is a strategic project with a focus on providing affordable and cleaner energy for Senegal, and they are working on partnership strategies [91] Question: How does the company view the development of Tiberius? - Management expressed encouragement regarding the initial exploration well at Tiberius, indicating that they have de-risked a significant portion of the potential [69] Question: What is the company's approach to the Ghana tax situation? - Management clarified that there are no ongoing disputes with the Ghanaian Tax Authority and that discussions are ongoing without any formal claims [119][126]