Kosmos Energy Announces First Quarter 2013 Results Business Wire DALLAS -- May 09, 2013 Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today financial and operating results for the first quarter of 2013, which included net income of $20 million, or $0.05 per basic and diluted share. For the first quarter of 2012, Kosmos reported a net loss of $38 million, or $0.10 per basic and diluted share. Brian F. Maxted, Chief Executive Officer, commented, “Strong production and momentum at the Jubilee field, where we are experiencing continued high levels of well deliverability and FPSO uptime, contributed significantly to our positive results for the quarter. While progressing our upcoming developments offshore Ghana during the quarter, we also enhanced the build-out of our exploration portfolio and further matured our existing assets for drilling. Most recently, we have captured prospective blocks offshore Ireland in the Porcupine Basin, which represents additional opportunity to explore for our core geologic plays in a new area along the Atlantic Margin. At the same time, we have commenced the farm-out process for our Morocco positions and are sourcing drilling rig capacity in support of a multi-year exploration campaign designed to deliver substantial new value to Kosmos.” Oil and gas revenue in the first quarter of 2013 was $228 million versus $116 million in the same quarter of 2012, on the sale of approximately two million barrels of oil in the 2013 period and one million barrels sold in the 2012 period. The increase in sales volumes was the result of the Company’s successful production enhancement programs executed in the second half of 2012. Realized pricing was $114.54 per barrel sold in the first quarter of 2013 and $124.30 per barrel in the first quarter of 2012. Production expense for the first quarter of 2013 was $24 million, which included certain well workover and rig equipment maintenance costs. Excluding these amounts, production expense was $6.73 per barrel sold. The first quarter 2012 production expense was $7.87 per barrel, with the per barrel reduction to the first quarter of 2013 primarily reflecting an efficiency gain associated with increased field production. Exploration expenses in the first quarter of 2013 totaled $23 million and included costs related to the Company’s ongoing seismic acquisition, processing, and interpretation related to its offshore Mauritania, Morocco, and Suriname assets, as well as various new venture exploration activities. In addition, costs related to the Sapele exploration well offshore Ghana were included in the first quarter 2013 expense. For the first quarter of 2012, exploration expenses included costs related to the Company’s 3D seismic acquisition program offshore Morocco. General and administrative expenses were $40 million in the first quarter of 2013, consistent with the first quarter 2012 amount. Depletion and depreciation expense was $59 million, or $29.45 per barrel sold. The per barrel rate represents a 13 percent decline from the first quarter 2012 rate, primarily resulting from a significant reclassification of proved reserves from undeveloped to developed at the end of 2012. Derivative expense for the first quarter of 2013 was $6 million, which primarily represents the unrealized change in the valuation of the Company’s oil derivative contracts during the quarter. A lower outstanding average debt balance contributed to reduced interest expense for the first quarter of 2013 versus the similar period 2012 amount. Income tax expense for the first quarter of 2013 was $44 million, with the majority of the amount resulting from the Company’s Ghana operations. Conference Call and Webcast Information Kosmos will host a conference call and webcast to discuss first quarter 2013 financial and operating results today at 10:00 a.m. Central time (11:00 a.m. Eastern time). A live webcast of the event can be accessed on the Investors page of Kosmos’ website at www.kosmosenergy.com. The dial-in telephone number for the call is +1.877.407.3982. Callers outside the United States should dial +1.201.493.6780. A replay of the webcast will be available on the Investors page of Kosmos’ website for approximately 90 days following the event. About Kosmos Energy Kosmos Energy is a leading independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. The Company’s asset portfolio includes existing production and other major project developments offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Ireland, Mauritania, Morocco and Suriname and onshore Cameroon. Kosmos is listed on the New York Stock Exchange and is traded under the ticker symbol KOS. For additional information, visit www.kosmosenergy.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements.Kosmos’s estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’s Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. Kosmos Energy Ltd. Consolidated Statements of Operations (in thousands, except per share amounts, unaudited) Three Months Ended March 31, 2013 2012 Revenues and other income: Oil and gas revenue $ 228,066 $ 115,771 Interest income 70 746 Other income 254 30 Total revenues and other income 228,390 116,547 Costs and expenses: Oil and gas production 24,401 7,326 Exploration expenses 23,296 39,644 General and administrative 40,030 39,323 Depletion and depreciation 58,649 31,649 Amortization - deferred financing costs 2,698 2,194 Interest expense 8,991 13,058 Derivatives, net 5,508 3,860 Other expenses, net 632 748 Total costs and expenses 164,205 137,802 Income (loss) before income taxes 64,185 (21,255 ) Income tax expense 44,091 16,286 Net income (loss) $ 20,094 $ (37,541 ) Net income (loss) per share: Basic $ 0.05 $ (0.10 ) Diluted $ 0.05 $ (0.10 ) Weighted average number of shares used to compute net income (loss) per share: Basic 375,284 369,227 Diluted 375,651 369,227 Kosmos Energy Ltd. Condensed Consolidated Balance Sheets (in thousands, unaudited) March December 31, 2013 31, 2012 Assets Current assets: Cash and cash equivalents $ 497,289 $ 515,164 Receivables 137,267 134,216 Other current assets 92,353 100,738 Total current assets 726,909 750,118 Property and equipment, net 1,542,313 1,525,762 Other non-current assets 89,456 90,243 Total assets $ 2,358,678 $ 2,366,123 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 48,785 $ 128,855 Accrued liabilities 58,340 41,021 Other current liabilities 18,004 20,377 Total current liabilities 125,129 190,253 Long-term liabilities: Long-term debt 1,000,000 1,000,000 Deferred tax liability 113,585 104,137 Other non-current liabilities 52,467 42,827 Total long-term liabilities 1,166,052 1,146,964 Total shareholders’ equity 1,067,497 1,028,906 Total liabilities and shareholders’ $ 2,358,678 $ 2,366,123 equity Kosmos Energy Ltd. Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) Three Months Ended March 31, 2013 2012 Operating Activities Net income (loss) $ 20,094 $ (37,541 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depletion, depreciation and amortization 61,347 33,843 Deferred income taxes 20,915 7,713 Unsuccessful well costs 9,753 8,270 Change in fair value of derivatives 534 2,045 Cash settlements on derivatives (4,850 ) (2,422 ) Equity-based compensation 18,938 21,290 Other 1,396 3,097 Changes in assets and liabilities: Net changes in working capital (61,258 ) 108,608 Net cash provided by operating activities 66,869 144,903 Investing activities Oil and gas assets (83,491 ) (68,070 ) Other property (814 ) (3,110 ) Restricted cash 886 72 Net cash used in investing activities (83,419 ) (71,108 ) Financing activities Purchase of treasury stock (82 ) — Deferred financing costs (1,243 ) (1,599 ) Net cash used in financing activities (1,325 ) (1,599 ) Net increase (decrease) in cash and cash (17,875 ) 72,196 equivalents Cash and cash equivalents at beginning of 515,164 673,092 period Cash and cash equivalents at end of period $ 497,289 $ 745,288 Contact: Kosmos Energy Investor Relations Brad Whitmarsh, +1-214-445-9772 firstname.lastname@example.org
Kosmos Energy Announces First Quarter 2013 Results
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