Q4 2024 Kosmos Energy Ltd Earnings Call Transcript
Key Points
- Kosmos Energy Ltd (KOS) has a diverse portfolio with a growing 2P reserve life of more than 20 years, indicating long-term sustainability.
- The company achieved a 2P reserve replacement ratio of 137% in 2024, highlighting successful reserve replenishment.
- Kosmos Energy Ltd (KOS) expects a significant reduction in capital expenditure, from over $800 million in previous years to $400 million in 2025, enhancing free cash flow.
- The company has successfully raised $900 million in new bonds, improving its financial position and extending debt maturities.
- Kosmos Energy Ltd (KOS) achieved first oil at Winterfell and first gas production in the GTA project, marking significant operational milestones.
- Fourth-quarter production was lower than guidance due to issues at the Jubilee field and delays in production ramp-up from other wells.
- The company faces planned maintenance programs in the first quarter of 2025, which may impact production levels.
- Start-up and commissioning costs for new projects are expected to be higher in 2025, affecting short-term financial performance.
- There are ongoing challenges with power generation reliability at the Jubilee field, impacting production efficiency.
- Kosmos Energy Ltd (KOS) has a high leverage ratio, with plans to reduce it to below 1.5 times by the back half of 2026, indicating current financial constraints.
Good day, everyone, and welcome to Kosmos Energy's fourth quarter and full-year 2024 conference call. As a reminder, today's call is being recorded.
At this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Kosmos Energy. Please go ahead.
Thank you, operator, and thanks to everyone for joining us today. This morning, we issued our fourth quarter and full-year 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. Actual results and outcomes could differ materially due to factors we note in this presentation and in our UK and SEC filings. Please refer to our annual report, stock exchange announcement, and SEC filings for
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