Kosmos Energy(KOS) - 2025 Q1 - Quarterly Report

Production and Revenue - In Q1 2025, total production averaged approximately 49,393 Boepd, a decrease of 21% from 62,645 Boepd in Q1 2024[135] - Oil and gas revenue decreased by $129 million to$290.1 million in Q1 2025, compared to $419.1 million in Q1 2024, primarily due to lower production and prices[139] - Average realized oil sales price per barrel decreased to$73.90 in Q1 2025 from $82.23 in Q1 2024, reflecting a 10$0.9 million, a significant decrease from $272.6 million in the same period of 2024[151] - Total long-term debt as of March 31, 2025 was$2.9 billion, an increase from $2.8 billion as of December 31, 2024[152] - The company has a total principal debt repayment obligation of$2,900.274 million, with significant repayments due in 2025 and 2026[170] - The company has outstanding borrowings totaling $1.0 billion with a weighted average interest rate of 8.4$400 million or less, focusing on drilling, exploitation, and production activities[154] - Approximately $275 million of the capital budget is allocated for maintenance activities across producing assets in Ghana, Equatorial Guinea, and the Gulf of America[155] - The company plans to spend less than$75 million on appraisal and development programs in the Gulf of America, Mauritania, and Senegal[156] Projects and Operations - The Greater Tortue Ahmeyim LNG project achieved first gas production on December 31, 2024, with first LNG cargo completed in April 2025[132] - The drilling campaign in the Jubilee Field is expected to commence in Q2 2025, including two in-fill wells[127] - Winterfell-3 well has been temporarily plugged and abandoned while options for restoring production are evaluated[129] - The company has a commitment to drill one development well in Equatorial Guinea as of March 31, 2025[172] Tax and Regulatory Changes - The corporate tax rate in Equatorial Guinea was reduced from 35% to 25%, effective January 1, 2025[130] Commodity Prices and Sensitivity - Oil prices in the first three months of 2025 ranged between $69.83 and$83.06 per Bbl for Dated Brent, indicating significant price volatility[183] - The company's commodity price sensitivity indicates significant exposure to fluctuations in oil prices, impacting earnings projections[188] Derivative Instruments and Interest Rates - The fair value of the company's outstanding derivative contracts as of March 31, 2025, is $3.590 million, down from$11.670 million as of December 31, 2024[181] - The fair market value of the company's interest rate swaps was a net asset of approximately $1.3 million as of March 31, 2025[192] - The company's interest rate derivative instruments are sensitive to changes in market interest rates, affecting future borrowings and payments[191] Financial Covenants and Compliance - The company is in compliance with the financial covenants contained in the Facility as of March 31, 2025[160] Other Financial Commitments - As of March 31, 2025, the company has incurred approximately$312.7 million of its estimated $370.0 million share for the Carry Advance Agreements with national oil companies[173] - The company has a decommissioning trust agreement with estimated total commitments of approximately$126.1 million as of March 31, 2025[172] - The company's liabilities for asset retirement obligations are not included in the purchase obligations, which total $20.3 million[172] Interest Rate Projections - The weighted average interest rate on variable rate debt is projected to increase from 8.32$4.3 million per year, reduced to $1.6 million due to a fixed interest rate swap[191] - The impact of the 2025 fixed interest rate swap would mitigate additional interest expenses associated with floating rate debt[191] Risk Assessment - A hypothetical 10$18.6 million, while a 10% decrease would increase future pre-tax earnings by approximately $21.6 million[188]