Q1 2024 Kosmos Energy Ltd Earnings Call Transcript
Key Points
- Kosmos Energy Ltd (KOS) reported a strong first quarter with significant progress towards their goal of growing production by around 50% from the second half of 2022 to the end of 2024.
- All planned 2024 Jubilee production wells in Ghana are online, with operational efficiencies allowing the drilling campaign to conclude six months ahead of schedule.
- The Tortue project in Mauritania and Senegal continues to advance towards first gas, with several key milestones already achieved this year.
- Kosmos Energy Ltd (KOS) enhanced financial resilience through a convertible bond issuance and RBL refinancing, improving liquidity and extending near-term maturities.
- The company anticipates a free cash flow inflection point of around $100 million to $150 million per quarter once development projects come online.
- There is some planned maintenance of the onshore plant which receives Jubilee gas, reflected in the 2Q guidance.
- The Tornado field is expected to be offline for most of the second quarter for scheduled routine maintenance.
- Operational progress and financial outcomes could be impacted by external factors such as changes in government in host countries, as seen with recent elections in Senegal.
- The partnership had to pause the Sabra and the two main drilling campaign in Equatorial Guinea due to safety issues with the previous rig.
- The FPSO hookup and commissioning remains on the critical path for the Tortue project, indicating potential challenges in meeting project timelines.
Ladies and gentlemen, good morning and welcome to the Kosmos Energy First Quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Jamie Buckland, VP, Investor Relations. Please go ahead.
Thank you, operator, and thanks to everyone for joining us today this morning, we issued our first quarter 2024 earnings release. This release and the slide presentation to accompany today's call are available on the Investors page of our website. Joining me on the call today. To go through the materials are Andy Inglis, Chairman and CEO, and Neal Shah, CFO.
During today's presentation, we will make forward-looking statements that refer to our estimates, plans and expectations.
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