```markdown PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2023 show total assets of **$4.70 billion**, net income of **$83.3 million** (up from **$1.4 million** in Q1 2022 due to derivative gains), and operating cash flow of **$203.9 million** [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, Kosmos Energy reported total assets of **$4.70 billion** (up from **$4.58 billion**), with total liabilities at **$3.83 billion** and stockholders' equity increasing to **$869.4 million** due to net income | (In thousands) | March 31, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $443,318 | $468,721 | | **Property and equipment, net** | $3,966,178 | $3,842,647 | | **Total assets** | **$4,698,145** | **$4,579,988** | | **Total current liabilities** | $624,513 | $574,254 | | **Total long-term liabilities** | $3,204,192 | $3,217,886 | | **Total stockholders' equity** | $869,440 | $787,848 | | **Total liabilities and stockholders' equity** | **$4,698,145** | **$4,579,988** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2023, Kosmos reported net income of **$83.3 million** (or **$0.17** diluted EPS), a significant increase from **$1.4 million** in Q1 2022, primarily due to a **$6.8 million** gain on derivatives offsetting lower oil and gas revenue | (In thousands, except per share data) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Oil and gas revenue** | $394,240 | $659,015 | | **Total costs and expenses** | $254,235 | $646,214 | | *Derivatives, net* | *($6,840)* | *$282,172* | | **Income before income taxes** | $139,632 | $12,853 | | **Net income** | **$83,309** | **$1,400** | | **Diluted EPS** | **$0.17** | **$0.00** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2023, net cash from operations was **$203.9 million** (down from **$329.6 million** in Q1 2022), with **$239.4 million** used in investing and **$116.6 million** in financing, leading to a **$55.0 million** net decrease in cash | (In thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $203,853 | $329,628 | | **Net cash provided by (used in) investing activities** | ($239,356) | $9,388 | | **Net cash used in financing activities** | ($116,633) | ($19,475) | | **Net increase (decrease) in cash** | **($54,978)** | **$222,383** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, debt instruments totaling **$2.26 billion**, derivative contracts, segment performance, and recent operational activities including new petroleum contracts and farm-out agreements - In February 2023, Kosmos entered a petroleum contract for Block EG-01 offshore Equatorial Guinea with a **24% participating interest**. In March 2023, the company farmed out a **6.0% interest** in Block S, reducing its stake to **34.0%**[41](index=41&type=chunk)[42](index=42&type=chunk) - The company has long-term receivables of **$237.5 million** as of March 31, 2023, related to financing the national oil companies of Mauritania and Senegal for their share of Greater Tortue Ahmeyim Phase 1 development costs[43](index=43&type=chunk) | Debt Instrument | Principal Balance (Mar 31, 2023) | | :--- | :--- | | Facility | $625,000,000 | | 7.125% Senior Notes | $650,000,000 | | 7.750% Senior Notes | $400,000,000 | | 7.500% Senior Notes | $450,000,000 | | GoM Term Loan | $137,500,000 | | **Total long-term debt** | **$2,262,500,000** | - As of March 31, 2023, the company had outstanding oil derivative contracts (collars) covering **9.25 million barrels** for the remainder of 2023 and 2024 to hedge against price volatility[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2023 revenue decrease to lower volumes and prices, while net income rose significantly due to derivative gains; key development projects are progressing, with a 2023 capital expenditure budget of **$700-$750 million** and strong liquidity of **$996.5 million** [Recent Developments](index=29&type=section&id=Recent%20Developments) Key Q1 2023 operational updates include advancing the Jubilee drilling campaign in Ghana, Winterfell development in the U.S. Gulf of Mexico, a new drilling campaign in Equatorial Guinea, and the Greater Tortue Ahmeyim Phase 1 project targeting first gas by end of Q4 2023 - Ghana: The Jubilee partnership expects to bring **five new wells** online in 2023. The commitment to provide **200 Bcf** of free gas to the government was fulfilled as of January 1, 2023[108](index=108&type=chunk)[109](index=109&type=chunk) - U.S. Gulf of Mexico: The Winterfell development project is progressing, with first production targeted for the end of **Q1 2024**. The Tiberius exploration prospect is planned for drilling in **Q3 2023**[113](index=113&type=chunk)[114](index=114&type=chunk) - Mauritania and Senegal: Phase 1 of the Greater Tortue Ahmeyim project is progressing toward first gas at the **end of Q4 2023**. The development concept for Phase 2, a gravity-based structure (GBS) with **2.5-3.0 MMTPA** capacity, has been confirmed[118](index=118&type=chunk)[119](index=119&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) In Q1 2023, oil and gas revenue decreased by **$264.8 million** due to lower sales volumes and prices, yet net income significantly increased from **$1.4 million** to **$83.3 million**, primarily driven by a **$289.0 million** positive swing in derivative values | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Sales Volume (MBoe) | 5,501 | 6,515 | | Average Sales Price per Boe | $71.67 | $101.15 | | Oil and Gas Revenue (in thousands) | $394,240 | $659,015 | | Oil and Gas Production Costs (in thousands) | $83,936 | $124,703 | | Net Income (in thousands) | $83,309 | $1,400 | - The decrease in oil and gas revenue was a result of lower production due to the conclusion of a pre-emption transaction in March 2022, natural field decline, and lower average oil prices[123](index=123&type=chunk) - The significant increase in net income was primarily driven by a net gain on derivatives of **$6.8 million** in Q1 2023, compared to a net loss of **$282.2 million** in Q1 2022[127](index=127&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, total liquidity was **$996.5 million** with net debt at **$2.13 billion**; the 2023 capital expenditure budget is **$700-$750 million**, funded by operating cash flow and various debt facilities | Liquidity Position (as of Mar 31, 2023) | Amount (in thousands) | | :--- | :--- | | Cash and cash equivalents | $128,427 | | Availability under the Facility | $618,034 | | Availability under the Corporate Revolver | $250,000 | | **Total Available Liquidity** | **$996,461** | - The 2023 capital expenditure budget is estimated at **$700-$750 million**, focused on maintenance (**$250-$300M**), development (**$350-$400M**), and exploration/appraisal (**$50-$100M**)[140](index=140&type=chunk)[147](index=147&type=chunk) - In April 2023, the borrowing base capacity under the main credit Facility was redetermined to approximately **$1.15 billion**, a reduction of about **$100 million** in availability[133](index=133&type=chunk)[144](index=144&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from commodity price and interest rate volatility, using derivatives to mitigate price risk; a **10%** oil price change could impact pre-tax earnings by approximately **$24.5-$30.1 million**, and a **10%** floating rate increase would add an estimated **$3.9 million** in annual interest expense - As of March 31, 2023, a hypothetical **10%** increase in commodity futures prices would decrease future pre-tax earnings by approximately **$24.5 million**, while a **10%** decrease would increase earnings by **$30.1 million** due to derivative positions[176](index=176&type=chunk) - The company has **$762.5 million** in floating-rate debt. A **10%** increase in the floating market rate would result in an estimated additional **$3.9 million** in annual interest expense[177](index=177&type=chunk) | Term | Type of Contract | Volume (MBbl) | Floor/Put Price | Ceiling Price | | :--- | :--- | :--- | :--- | :--- | | Apr - Dec 2023 | Three-way collars | 4,500 | $71.67 / $49.17 | $107.58 | | Apr - Dec 2023 | Two-way collars | 2,750 | $72.73 | $118.18 | | Jan - Dec 2024 | Three-way collars | 2,000 | $70.00 / $45.00 | $97.50 | [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2023, the CEO and CFO concluded that disclosure controls and procedures were **effective**, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2023[179](index=179&type=chunk) - No changes occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[180](index=180&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) No material changes were reported regarding legal proceedings from the Annual Report on Form 10-K - There have been no material changes from the information concerning legal proceedings discussed in the annual report on Form 10-K[181](index=181&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported regarding risk factors from the Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes from the risks discussed in the "Item 1A. Risk Factors" sections of the annual report on Form 10-K for the year ended December 31, 2022[182](index=182&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None[183](index=183&type=chunk) ```

Financial Performance - Oil and gas revenue for 2022 reached $2,245.4 million, a significant increase of 68.7% compared to $1,332.0 million in 2021[496]. - Total revenues and other income for 2022 amounted to $2,299.8 million, up 72.5% from $1,333.8 million in 2021[496]. - Net income for 2022 was $226.6 million, a turnaround from a net loss of $77.8 million in 2021[496]. - Basic net income per share for 2022 was $0.50, compared to a loss of $0.19 per share in 2021[496]. - Total costs and expenses increased to $1,962.7 million in 2022, up 42.4% from $1,377.2 million in 2021[496]. - Net cash provided by operating activities for 2022 was $1,130.5 million, a substantial increase from $374.3 million in 2021[501]. - The company did not declare dividends in 2022, maintaining a dividend of $0.0452 per share in 2021[496]. Assets and Liabilities - The net book value of the company's oil and gas properties was $3.8 billion as of December 31, 2022, with a depletion expense of $471.4 million for the year[472]. - As of December 31, 2022, the company's asset retirement obligations totaled $302.5 million[475]. - The company's total assets decreased from $4,940.7 million in 2021 to $4,580.0 million in 2022, reflecting a decline of approximately 7.3%[494]. - Long-term debt decreased from $2,590.5 million in 2021 to $2,195.9 million in 2022, a reduction of approximately 15.2%[494]. - The company's accumulated deficit improved from $(1,712.4) million in 2021 to $(1,485.8) million in 2022, indicating a reduction of approximately 13.3%[494]. - The company's total current liabilities increased from $530.9 million in 2021 to $574.3 million in 2022, an increase of approximately 8.2%[494]. Risk Management - The company manages market and counterparty credit risk in accordance with established policies, determining the timing and extent of derivative transactions[449]. - The company utilizes oil derivative contracts to mitigate exposure to commodity price risk, reflecting a proactive approach to risk management[528]. - As of December 31, 2022, the company's open commodity derivative instruments were in a net asset position of $1.5 million, with a hypothetical 10% price increase in commodity futures expected to decrease future pre-tax earnings by approximately $30.8 million[457]. Impairments and Write-downs - The company recorded an impairment of $450.0 million related to certain oil and gas proved properties during the year ended December 31, 2022[479]. - The company reported an impairment of long-lived assets of $450.0 million in 2022, compared to no impairment in 2021[501]. - Impairment charges of $450,000,000 were recognized for long-lived assets due to negative proved oil and gas reserve revisions, reducing the carrying value of the TEN Fields to an estimated fair value of $235,700,000[628]. Capital Expenditures and Investments - The company is focused on expanding its operations in the offshore Atlantic Margins, particularly in Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico[504]. - In March 2022, the company acquired an additional 5.5% interest in the Winterfell area for $9.6 million, increasing its participating interest to 25.0% in certain Green Canyon blocks[540]. - In June 2022, the company acquired an additional 5.9% interest in the Kodiak oil field for approximately $29.0 million, raising its working interest from 29.1% to 35.0%[542]. - The company extended the Block G petroleum contract term to 2040, agreeing to a work program that includes drilling three development wells and one exploration well[541]. Debt and Financing - Outstanding borrowings totaled approximately $770.0 million as of December 31, 2022, with a weighted average interest rate of 8.3%, exposing the company to interest rate risk[458]. - The Company issued $650 million of 7.125% Senior Notes in April 2019, with net proceeds of approximately $640 million used to redeem previous notes and repay debt[587]. - The Company issued $400 million of 7.750% Senior Notes in October 2021, receiving net proceeds of approximately $395 million for refinancing purposes[594]. - The Company issued $450 million of 7.500% Senior Notes in March 2021, with net proceeds of approximately $444.4 million used to repay debt and for general corporate purposes[601]. - The GoM Term Loan bears an effective interest rate of approximately 6.9% per annum and includes an accordion feature for incremental commitments of up to $100 million[607]. Shareholder Equity and Compensation - The total equity-based compensation to be recognized on unvested restricted stock units was $20,100,000 over a weighted average period of 1.7 years as of December 31, 2022[636]. - Share-based compensation expense for the year ended December 31, 2022, was $34,546,000, an increase from $31,651,000 in 2021[640]. - The fair value of awards vested in 2022 was $22,205,000, significantly higher than $9,435,000 in 2021[640]. Taxation - The total tax benefit for the year ended December 31, 2022, was $5,933,000, compared to $5,786,000 in 2021[640]. - The net tax shortfall (windfall) for the year ended December 31, 2022, was $673,000, a decrease from $6,307,000 in 2021[640].

Kosmos Energy Ltd. (NYSE:KOS) Q4 2022 Earnings Conference Call February 27, 2023 11:00 AM ET Company Participants Jamie Buckland - Vice President of Investor Relations Andy Inglis - Chairman and Chief Executive Officer Neal Shah - Chief Financial Officer Conference Call Participants Charles Meade - Johnson Rice Alex Smith - Investec Neil Mehta - Goldman Sachs Subash Chandra - The Benchmark James Hosie - Barclays Mark Wilson - Jefferies Matt Smith - Bank of America Operator Good day, everyone, welcome to Kos ...

1 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 in the future are forward-looking statements. Without limiting the ge ...

Kosmos Energy Ltd. (NYSE:KOS) Q3 2022 Earnings Conference Call November 7, 2022 11:00 AM ET Company Participants Jamie Buckland - Vice President, Investor Relations Andy Inglis - Chief Executive Officer Neal Shah - Senior Vice President and Chief Financial Officer Conference Call Participants Neil Mehta - Goldman Sachs Bob Brackett - Bernstein Research Charles Meade - Johnson Rice & Company Alex Smith - Investec James Hosie - Barclays James Carmichael - Berenberg Mark Wilson - Jefferies Operator Greeting an ...

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, 2022 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 ...

1 3Q 2022 Results 7 November 2022 NYSE/LSE: KOS 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 in the futur ...

Kosmos Energy Ltd. (NYSE:KOS) Q2 2022 Earnings Conference Call August 8, 2022 11:00 AM ET Company Participants Jamie Buckland - Vice President-Investor Relations Andy Inglis - Chairman and Chief Executive Officer Neal Shah - Chief Financial Officer Conference Call Participants Carly Davenport - Goldman Sachs Matt Smith - Bank of America Alex Smith - Investec Bob Brackett - Bernstein Research James Hosie - Barclays Mark Wilson - Jefferies Operator Good day, everyone. Welcome to Kosmos Energy's Second Quarter ...

1 2Q 2022 Results 8 August 2022 NYSE/LSE: KOS 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 in the future ...

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 June 30, 2022 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 (Exact name of registrant as specified in its charter) Delaware 98-0686001 (State or other jurisdiction of (I ...