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Kosmos Energy(KOS) - 2020 Q1 - Quarterly Report
2020-05-11 19:28
PART I. FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company reports a Q1 2020 net loss of $182.8 million, driven by lower revenue and a significant asset impairment charge [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $4.18 billion while total liabilities increased, resulting in a decline in stockholders' equity **Consolidated Balance Sheet Highlights (in thousands)** | Account | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$4,183,962** | **$4,317,232** | | Cash and cash equivalents | $126,507 | $224,502 | | Oil and gas properties, net | $3,428,555 | $3,624,751 | | **Total Liabilities** | **$3,538,814** | **$3,475,530** | | Long-term debt, net | $2,059,929 | $2,008,063 | | **Total Stockholders' Equity** | **$645,148** | **$841,702** | [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) The company's Q1 2020 net loss widened to $182.8 million due to lower revenue and a $150.8 million asset impairment **Statement of Operations Summary (in thousands, except per share data)** | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Oil and gas revenue | $177,780 | $296,790 | | Impairment of long-lived assets | $150,820 | $0 | | Derivatives, net | $(136,038) | $77,085 | | **Net loss** | **$(182,767)** | **$(52,906)** | | **Diluted net loss per share** | **$(0.45)** | **$(0.13)** | [Consolidated Statements of Stockholders' Equity](index=12&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity declined to $645.1 million, primarily driven by the quarterly net loss and dividend payments - The primary drivers for the decrease in stockholders' equity during Q1 2020 were the **net loss of $182.8 million** and **dividends of $18.9 million**[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities remained stable, while a net decrease in cash of $98.6 million was recorded **Cash Flow Summary (in thousands)** | Activity | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(16,963) | $(17,347) | | Net cash used in investing activities | $(107,523) | $(79,448) | | Net cash provided by financing activities | $25,897 | $53,713 | | **Net decrease in cash** | **$(98,589)** | **$(43,082)** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail a $150.8 million asset impairment, debt structure, derivative contracts, and dividend suspension - The company is a deepwater E&P company with key assets in Ghana, Equatorial Guinea, U.S. Gulf of Mexico, and a gas development in Mauritania and Senegal[32](index=32&type=chunk) - Due to the significant decrease in oil prices, the company recorded an **asset impairment of $150.8 million** for proved oil and gas properties in the U.S. Gulf of Mexico[57](index=57&type=chunk)[97](index=97&type=chunk) - In response to economic conditions, the Board of Directors **suspended the quarterly dividend** of $0.0452 per common share in March 2020[116](index=116&type=chunk) - The company recorded **$13.9 million in restructuring charges** for employee severance and related benefit costs as part of a corporate reorganization[45](index=45&type=chunk)[121](index=121&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the adverse impacts of COVID-19 and lower oil prices on operations, financials, and liquidity - The COVID-19 pandemic has significantly impacted operations, leading to project delays, suspension of drilling programs, and a **delay in the Greater Tortue Ahmeyim Phase 1 project by approximately 12 months** to H1 2023[128](index=128&type=chunk)[129](index=129&type=chunk) - In response to market conditions, the company **reduced its 2020 capital expenditure program by approximately 40%** to an estimated $200 - $225 million[159](index=159&type=chunk) **Q1 2020 vs Q1 2019 Performance** | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Total Sales (MBoe) | 3,973 | 5,103 | | Average Sales Price (/Boe) | $44.74 | $58.16 | | Oil and Gas Revenue (thousands) | $177,780 | $296,790 | | Net Loss (thousands) | $(182,767) | $(52,906) | - In April 2020, the company's main credit facility borrowing base was redetermined and **reduced from $1.6 billion to $1.5 billion**, decreasing undrawn availability[71](index=71&type=chunk)[157](index=157&type=chunk)[160](index=160&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 primary market risks from commodity price and interest rate fluctuations, managed via derivatives - The company's primary market risks are **commodity price volatility and interest rate changes**[183](index=183&type=chunk) - As of March 31, 2020, a hypothetical **10% increase in oil prices would decrease future pre-tax earnings by approximately $28.0 million**, while a 10% decrease would increase them by $15.6 million[192](index=192&type=chunk) - In April 2020, the company restructured most of its remaining 2020 derivative contracts, converting them into **7.0 MMBbls of Dated Brent swaps at an average fixed price of $42.67/bbl**[85](index=85&type=chunk)[191](index=191&type=chunk) - At March 31, 2020, the company had **$1.45 billion in floating-rate debt**, where a 10% increase in LIBOR would result in an additional $1.4 million in annual interest expense[193](index=193&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2020[194](index=194&type=chunk) - **No changes occurred** during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[195](index=195&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported since the company's last annual filing - **No material changes** in legal proceedings were reported since the last annual report[196](index=196&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) Key updated risks include the adverse impacts of the COVID-19 pandemic and potential limitations on NOL carryforwards - The **COVID-19 pandemic poses a significant risk**, potentially affecting business operations, financial condition, and liquidity through project delays and supply chain disruptions[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) - The company's ability to use its federal and state net operating loss (NOL) carryforwards could be **limited by Section 382 of the Internal Revenue Code** if a future ownership change occurs[202](index=202&type=chunk)[203](index=203&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of its equity securities during the reporting period - No unregistered sales of equity securities were reported for the period[205](index=205&type=chunk) [Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the reporting period - No defaults upon senior securities were reported[206](index=206&type=chunk) [Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable as the company does not engage in mining operations - Not applicable[207](index=207&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No material changes were required to be reported that were not previously disclosed - No material changes were reported under this item[208](index=208&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the quarterly report, including required certifications
Kosmos Energy(KOS) - 2019 Q4 - Annual Report
2020-02-24 22:58
Financial Position - The company reported a net liability position of $5.2 million in open commodity derivative instruments as of December 31, 2019[470]. - The company had outstanding indebtedness of $1.4 billion under a facility with an interest rate of approximately 5.3% as of December 31, 2019[472]. - The fair value of contracts outstanding as of December 31, 2019, was a net liability of $8,522,000, reflecting changes in contract fair value and contract maturities[463]. - The Company's asset retirement obligations totaled $235.1 million as of December 31, 2019, reflecting significant estimation challenges in determining the present value of dismantlement and reclamation activities[484]. - The Company's long-term debt decreased to $2.008 billion in 2019 from $2.121 billion in 2018, indicating improved financial leverage[496]. - As of December 31, 2019, the company's total oil and gas properties amounted to $5.72 billion, with proved properties valued at $4.90 billion[582]. - The company had outstanding letters of credit totaling $3.1 million as of December 31, 2019, under the LC Facility[614]. - As of December 31, 2019, the total carrying value of the company's debt was $2,042.55 million, with a fair value of $2,064.96 million, compared to a carrying value of $2,161.87 million and a fair value of $2,175.03 million as of December 31, 2018[641]. Revenue and Profitability - Oil and gas revenue for 2019 was $1,499,416, a 69% increase from $886,666 in 2018[500]. - Total revenues and other income reached $1,509,909 in 2019, up from $902,369 in 2018, marking a 67% increase[500]. - Net loss for 2019 was $55,777, an improvement from a net loss of $93,991 in 2018[500]. - The accumulated deficit increased to $1.223 billion in 2019 from $1.167 billion in 2018, indicating ongoing challenges in profitability[498]. - The company recognized $11.5 million in restructuring charges during 2019 related to employee severance and benefits as part of a corporate reorganization[547]. Cash Flow and Assets - Net cash provided by operating activities was $628,150 in 2019, significantly higher than $260,491 in 2018[505]. - Total current assets increased to $566.6 million in 2019 from $509.7 million in 2018, driven by higher cash and receivables[496]. - Cash, cash equivalents, and restricted cash at the end of 2019 totaled $229,346, up from $185,616 at the end of 2018[505]. - The company reported receivables of $2.7 million for doubtful accounts in joint interest billings as of December 31, 2019, compared to $1.2 million in 2018[518]. - The company reported a significant increase in inventories, which rose to $114.4 million in 2019 from $84.8 million in 2018, indicating potential growth in production capacity[496]. Derivative Instruments and Risk Management - The company utilized various oil derivative contracts, including collars, put options, call options, and swaps, to mitigate exposure to commodity price risk[465]. - A hypothetical 10% increase in commodity futures prices would decrease future pre-tax earnings by approximately $54.6 million, while a 10% decrease would increase future pre-tax earnings by approximately $49.2 million[470]. - The company reported a loss of $70.7 million from derivatives not designated as hedging instruments in 2019[635]. - The company had derivative assets valued at $12.9 million and liabilities of $20.4 million as of December 31, 2019[634]. - The company’s total derivatives not designated as hedging instruments resulted in a gain of $1.2 million from oil and gas revenue in 2019[635]. Capital Expenditures and Investments - The company’s capitalized exploratory well costs increased to $445.79 million as of December 31, 2019, with additions of $78.13 million during the year[585]. - The DGE acquisition in September 2018 was valued at $1.275 billion, with $952.6 million in cash and $307.9 million in common stock[562]. - The company completed a farm-out agreement with Shell in November 2019, resulting in a 20% participating interest in Block 6 and a 30% participating interest in Block 11 offshore Sao Tome and Principe[559]. - The company entered into put option contracts for 3.7 million barrels at a weighted average price of $50.00 per barrel for 2020[632]. - The company adopted ASU 2016-02, resulting in a $21.7 million increase in assets and liabilities related to leasing activities[553]. Personnel and Management - The company’s ability to attract and retain qualified technical personnel is critical for its operational success[24]. - The company’s management is focused on risk management activities, including the use of derivative financial instruments to hedge commodity and interest rate risks[27]. Tax and Regulatory Matters - The Tax Cut and Jobs Act reduced the U.S. corporate income tax rate from 35% to 21%, resulting in a $16.7 million charge to deferred tax expense due to adjustments in deferred tax assets[653].
Kosmos Energy(KOS) - 2019 Q3 - Quarterly Report
2019-11-04 18:53
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, 2019 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 ...
Kosmos Energy(KOS) - 2019 Q2 - Quarterly Report
2019-08-05 16:01
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, 2019 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 https://files.reportify.cc/media/p Kosmos Energy Ltd. (Exact name of registrant as specified in its charter) ...
Kosmos Energy(KOS) - 2019 Q1 - Quarterly Report
2019-05-06 14:41
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, 2019 ☐ 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 ...
Kosmos Energy(KOS) - 2018 Q4 - Annual Report
2019-03-01 02:49
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 ☐ 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 (State or other jurisdiction ...