Kosmos Energy announces second quarter 2015 Results
Kosmos Energy Ltd. announced today financial and operating results for the second quarter of 2015, which included a net loss of US$75.2 million, or US$0.20 per diluted share, as compared to net income of US$56.5 million, or US$0.15 per diluted share in the same quarter last year. When adjusted for certain items that impact the comparability of results, including non-cash changes in the fair value of derivative instruments, cash settlements on commodity derivatives, gain on sale of assets, and other similar non-cash and non-recurring charges, the Company generated an adjusted net loss(1) of US$1.3 million or US$0.00 per diluted share for the second quarter of 2015.
Made a significant, basin-opening gas discovery offshore Mauritania
Sold 1.9 million bbls, net to Kosmos
Completed approximately 65 % of the development of the TEN project
Improved liquidity through add-on offering of senior notes, and refinancing of our corporate revolving credit facility
“Kosmos continued to build momentum in the second quarter,” said Andrew G. Inglis, chairman and chief executive officer. “Our Tortue-1 gas discovery offshore Mauritania is the industry’s largest offshore find so far this year. The Jubilee field delivered growing production averaging approximately 108 000 boe/d gross (sales). The TEN project is now approximately 65 % complete and remains on schedule to produce first oil in the third quarter of 2016. With our strong balance sheet, we remain focused on executing our plans with discipline and maximising shareholder value.”
Second quarter 2015 oil revenues were US$119.2 million versus US$328.3 million in the same quarter of 2014, on sales of 1.9 bbls in second quarter 2015 and 2.9 million bbls in the same period in 2014. Realised oil revenue was US$82.96 per bbl sold in the second quarter of 2015 versus US$112.53 per bbl sold in the second quarter of 2014, including the impact of the Company’s hedging program. At the end of the quarter, the Company was in a net underlift position of approximately 620 000 bbls.
Production expense for the second quarter of 2015 was US$20.2 million, or US$10.40 per bbl, versus US$22.9 million, of US$7.87 per bbl, in the second quarter of 2014.
Exploration expenses in the second quarter of 2015 totaled US$14.5 million, compared to US$23.5 million in the same period of 2014.
Depletion and depreciation expense was US$37.5 million, or US$19.29 per bbl, versus US$23.85 per bbl in the second quarter of 2014.
General and administrative expenses were US$41.2 million for the second quarter of 2015, compared to US$38.7 million in the first quarter of 2015.
The second quarter results included a mark-to-market loss of US$44.9 million related to the Company’s oil derivative contracts. The Company’s hedging position as of June 30, 2015, was 11.1 million bbls through 2017.
Income tax expense for the second quarter of 2015 was US$25.4 million. Income taxes during the quarter were impacted by a one-time charge of US$16.4 million as a result of the vesting of equity awards associated with the Company’s initial public offering. Additionally, Kosmos recorded a tax benefit of US$15.7 million associated with the mark-to-market of their commodity hedges during the quarter.
Total capital expenditures in the second quarter were US$149.7 million. This amount is net of the US$28.7 million of proceeds collected by Kosmos during the second quarter associated with the previously announced farm-out of a 30% interest in our Mauritania licenses to a wholly owned subsidiary of Chevron Corporation.
Kosmos exited the second quarter of 2015 with US$1.9 billion of liquidity, consisting of cash on hand and availability under their debt facilities, and US$530.8 million of net debt compared to US$1.7 billion of liquidity and US$407.4 million of net debt as of March 31, 2015.
Adapted from a press release by Louise Mulhall