Kosmos Energy, the full-cycle deep-water independent oil company, announced this Monday its financial results for the first quarter of the year; the company reported a net loss of $91 million, or $0.22 per diluted share. However, the upstream activities of the company had a strong performance.
Firstly, Kosmos Energy had a net production of 53,100 barrels of oil equivalent per day (boepd); with sales of 36,500 boepd, resulting in a material net underlift position of approximately 1.3 million barrels of oil.
Secondly, the company had a forecast for 12,5 cargos for the full year of 2021; however, the company just lifted 1,5 cargos during 1Q. As a result of the timing mismatch between production and the lifting of cargos, there was a material underlift of approximately 1.3 million barrels of oil in the first quarter.
Thirdly, around March, Kosmos Energy closed a $450 million offering of senior notes due 2028. Such income helped the company to partially pay down the reserve-based lending (RBL) facility extension.
Moreover, the net capital expenditure of Kosmos Energy was around $44 million, in line with its guidance. Consequently, the company ended the 1Q with approximately $2.2 billion of net debt; and available liquidity of around $0.8 billion.
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Kosmos Energy with strong performance at the Gulf of Mexico
In addition, the debt increase was primarily associated with capital expenditures from the upstream activities of the company in Ghana and Senegal; also, to National Oil Company loan payments. However, Kosmos Energy base business free cash flow guidance for 2021 remains unchanged.
Furthermore, for the upstream activities, total net production of the company averaged 53,100 boepd, as said above. Particularly it had a strong performance in the Gulf of Mexico, where it averaged 20,500 boepd net (81% oil) during the first quarter.
In fact, back in January, the company announced an oil discovery at the Winterfell well, where the company has a working interest of 17,5%. Consequently, during 1Q Kosmos worked with partners on an appraisal plan for Winterfell, which is expected to begin with a well in the third quarter.
On the other hand, about this performance, Andrew G. Inglis, CEO, said. “Kosmos has evolved from a frontier explorer to a full-cycle E&P with a diverse reserve base that has increased nearly seven-fold, building the platform for continued success over the next ten years.”
Finally, he remarked. “We have begun infill drilling activities in Ghana and the Gulf of Mexico, will soon begin drilling in Equatorial Guinea, and are on track to deliver our production and cash flow targets for the year.”
