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- **Production Milestones**: Jubilee adds 10,000 bopd from new well, GTA nears 2.7MTPA LNG. 2026 drilling to boost Jubilee to 100,000 bopd.
- **Cost Efficiency**: CapEx down $500M YoY, OpEx 40% lower QoQ. GTA unit costs to halve in 2026. $250M term loan secures 2026 debt repayment.
- **Strategic Growth**: Jubilee OBN imaging for resource recovery. GTA Phase 1+ domestic gas sales. Tiberius FID planned for 2026.
- **Financial Resilience**: 2027 covenant test passed. Hedged 50% of 2026 oil sales at $66 floor. Exploring secured debt and asset sales for 2027 maturities.

**【CEO Summary Section】**
- **Production Growth**: Jubilee's 2025/26 drilling campaign added 10,000 bopd from the first well, with 5 wells planned for 2026. GTA LNG production ramped to 2.6 million tonnes per annum (MTPA), targeting nameplate capacity by year-end. Gulf of America production remained strong, and Tiberius repairs are underway.
- **Cost Reductions**: CapEx expected below $350M for the year, a $500M reduction YoY. OpEx down 40% QoQ, with GTA unit costs targeting a 50% decline in 2026. Balance sheet resilience includes a $250M term loan with Shell to repay 2026 bonds and successful RBL redetermination.
- **Strategic Initiatives**: Jubilee's OBN seismic imaging to enhance resource recovery. GTA Phase 1+ expansion targeting 2029 with domestic gas sales agreements. Tiberius FID planned for 2026 with Shell's Appomattox tieback.

**【CFO Financial Commentary】**
- **Financial Performance**: Q3 2025 GAAP net income of $420M, Non-GAAP EPS of $1.08. CapEx $67M (below guidance), year-to-date $240M. OpEx down 40% QoQ to $60M, targeting $50M in Q4. Working capital outflows for GTA Phase 1 completed.
- **Liquidity & Hedging**: $250M Shell term loan to repay 2026 bonds. 2026 hedging covers 50% of oil sales with $66 floor and $73 ceiling. RBL borrowing base maintained at $1.35B. 2025 hedges include 2.5M barrels with $62 floor and $77 ceiling.
- **Balance Sheet Management**: 2027 covenant test passed in September. Exploring secured debt against GTA and non-core asset divestments to address 2027 maturities.

**【Q&A Highlights】**
- **FPSO Lease Refinancing**: Expected to reduce TEN OpEx by over 50% via discounted FPSO buyout in 2027. No upfront costs, closing by year-end.
- **GTA Expansion**: Phase 1+ to supply 200Mscf/d domestic gas without capital, targeting 2029 liquefaction expansion. Gimi FPSO modifications for 10-20% LNG capacity increase.
- **Jubilee Outlook**: 2026 drilling program to add 5 wells, targeting 100,000 bopd. OBN seismic data supports long-term resource recovery.
- **Liquidity Confidence**: Secured $250M term loan, no 2026 maturities. Proactive hedging and cost reductions support free cash flow generation.

Kosmos Energy Ltd. (KOS) Q3 2025 Earnings Call Transcript

- **GTA Milestone Achievement**: FLNG COD achieved, with production ramping to 2.7 million tonnes per annum by Q4 2025. 
- **Jubilee Recovery Plan**: Drilling 3-4 wells/year (e.g., 10,000 BOPD per well) to restore production to 90,000 BOPD. 
- **Cost Reduction Progress**: CapEx guidance cut to $350 million, 2025 overhead savings of $25 million, and GTA OpEx optimization. 
- **Balance Sheet Strengthening**: $250 million term loan secured for 2026 debt repayment, 7 million barrels of 2026 oil hedged at $66/bbl floor. 
- **Free Cash Flow Target**: $50-$55/bbl breakeven, with $100 million free cash flow per $5 oil price increase.

**【CEO Summary Section】**
- Achieved Commercial Operations Day (COD) for GTA's FLNG vessel in June, with production ramping up to 2.7 million tonnes per annum by Q4 2025. Jubilee's first producer well of the 2025-26 program added 10,000 barrels per day, with a second well expected online by year-end. 
- Reduced CapEx guidance to $350 million for 2025 (from $400 million), driven by slower investment in long-term projects. 
- Focused on cost reduction across GTA (OpEx per BOE optimization), Jubilee (riser-based gas lift), and overhead savings ($25 million target for 2025). 
- Secured a $250 million term loan for Gulf of America assets to repay 2026 bond maturities, with additional financing for longer-dated maturities in progress. 
- Hedged 7 million barrels of 2026 oil production at $66 per barrel floor, targeting 50% coverage by year-end. 

**【CFO Financial Commentary】**
- Q2 2025 production was 105,000 barrels of oil equivalent per day (BOEPD), with GTA contributing 7,000 BOEPD and Gulf of America at 19,600 BOEPD. 
- OpEx per BOE (excluding GTA) was higher due to timing of LNG cargo lifting, while G&A expenses declined with overhead savings. 
- Reduced 2025 CapEx guidance to $350 million, with Q1 and Q2 spending tracking below budget. 
- Working capital draw expected in Q3 due to timing of payments, but free cash flow generation expected as GTA ramps up. 
- Amended RBL debt cover ratio to reflect GTA start-up costs, with covenant relief through March 2026. 

**【Q&A Highlights】**
- **Jubilee Production Decline**: 40% year-over-year drop due to FPSO shutdown, well declines, and riser instability. Drilling 3-4 wells/year (e.g., 10,000 BOPD per well) can offset natural decline and restore production to 90,000 BOPD. 
- **GTA Cost Optimization**: Refinancing FPSO lease and exploring alternative operating models to reduce OpEx. Phase 1+ expansion could double production via brownfield development. 
- **CapEx Sustainability**: $350 million 2025 target achievable with focus on Jubilee drilling and minimal GTA spending. Tiberius FID expected in 2026. 
- **Debt Management**: $250 million term loan for 2026 bond repayment, with plans to address 2027-2028 maturities through asset-backed financing. 
- **Free Cash Flow Breakeven**: Targeting $50-$55 per barrel breakeven, with $100 million free cash flow per $5 oil price increase above this range.

Kosmos Energy (KOS)-4 Aug 25-2025 Q2 Earnings call transcript

- **GTA LNG Supercharge**: First cargo exported, 2.45MTPA target on track, Phase 1+ expansion could double production with minor upgrades.
- **Cost Cutting Wins**: 2025 CapEx down 58% YoY, $25M overhead savings, 2026 breakeven at $50/bbl Brent.
- **Production Growth Pipeline**: 6 Jubilee wells (2025-26), Winterfell 4 online Q3, 20+ year field life in Ghana.
- **Debt Reduction Roadmap**: 2025 free cash flow positive, 2026 maturity ($450M) manageable via cash flow and asset-backed financing.
- **Market Resilience**: 40% oil hedged ($65-$80/bbl), Jubilee wells ($30/bbl breakeven) prioritized even in low-price scenarios.

**【CEO Key Messages】**
- **GTA Project Milestones**: First LNG cargo exported, all four liquefaction trains operational, targeting 2.45 million tonnes per annum (MTPA) with potential to exceed. Phase 1+ expansion could double gas sales with minor upgrades.
- **Cost Discipline**: 2025 CapEx reduced by over 50% YoY ($86M in Q1 vs. $200M prior year), $25M annual overhead reduction target on track. 2026 breakeven Brent price target: $50/bbl.
- **Production Growth**: Ghana Jubilee wells (2 in 2025, 4 in 2026) and Gulf of America Winterfell 4 well (Q3 online) driving H2 production gains.
- **Financial Resilience**: 40% of 2025 oil hedged ($65-$80/bbl floor/ceiling), minimal 2026 capital commitments, and $400M+ RBL facility with >20-year maturity.

**【CFO Financial Highlights】**
- **Q1 2025 Results**: Entitlement production slightly below guidance due to GTA ramp-up delays, OpEx per BOE in line with guidance, CapEx down 58% YoY.
- **Liquidity Management**: 2025 free cash flow positive at current oil prices, 2026 breakeven at $50/bbl Brent. 2025 NOC loan repayments to begin H2, aligning with GTA OpEx reductions.
- **Debt Reduction**: 2025 cash flow prioritized for debt paydown, 2026 maturity ($450M) manageable via cash flow and asset-backed financing options.

**【Q&A Key Takeaways】**
- **GTA Capacity Testing**: Nameplate 2.7MTPA being stress-tested Q2, aiming for safe, reliable operation above contracted 2.45MTPA. Phase 1+ upgrades could enable 3+MTPA with modest capital.
- **Oil Price Sensitivity**: 2026 breakeven $50/bbl Brent, Jubilee infill wells ($30/bbl breakeven) prioritized even in low-price scenarios. 85% of 2026 CapEx allocated to high-margin Ghana wells.
- **Balance Sheet Flexibility**: Unencumbered assets (GoA, Mauritania/Senegal) provide $1B+ potential financing, hedging program protects 40% of 2025 oil production.
- **Ghana Strategy**: 2025 Jubilee drilling (2 wells) and 4D seismic/AI-driven reservoir optimization targeting 20+ year field life. Government alignment on maximizing field recovery.


Kosmos Energy (KOS)-6 May 25-2025 Q1 Earnings call transcript

- **2025 Growth Engine**: 20%+ production growth driven by GTA ramp-up (2.7Mtpa LNG) and Gulf of America (Winterfell-4). Free cash flow >$400M (25%+ yield).
- **Cost Efficiency**: 2025 CapEx halved to $400M; $25M overhead cuts. GTA unit costs to decline as volumes reach 2.45Mtpa+.
- **Debt Reduction Focus**: 2025 cash flow to repay RBL; leverage target <1.5x by late 2026. 60% 2025 oil hedge mitigates price risk.
- **Project Optionality**: 30+ year 2C resource life provides long-term growth runway. Phase 1+ expansion at GTA requires minimal CapEx.

**【CEO Strategic Overview】**
- Kosmos' portfolio features a 20+ year reserve life, with 50:50 oil/gas split and low operating costs. 2025 targets include 20%+ production growth and $400M+ free cash flow (25%+ yield at current price).
- **GTA LNG Hub**: First cargo expected soon; Phase 1+ expansion aims to double capacity to 2.7Mtpa with minimal CapEx. Unit costs to trend down as ramp-up completes.
- **Ghana (Jubilee)**: 2025 guidance of 70-76K bbls/day gross, supported by 100% voidage replacement and 2 new wells. 40 seismic campaign to guide 2026 infill drilling.
- **Gulf of America**: Winterfell-4 well coming online H2; 2025 guidance of 17-20K boe/day net (+20% YoY). Tiberius farm-out expected mid-year.

**【CFO Financial Highlights】**
- 2024: $900M debt issuance extended maturity to 4+ years; 60% 2025 oil hedge at ~$70/bbl. 2025 CapEx ~$400M (vs. $800M 2023-24 avg), with $25M overhead reduction target.
- **Debt Management**: Prioritize RBL repayment; leverage target <1.5x (mid-cycle oil). 2026 debt maturities ($250M) to be repaid from cash flow.
- **GTA Financing**: Refinancing FPSO lease to reduce operating costs; unit margins to improve as volumes ramp.

**【Key Q&A Takeaways】**
- **GTA Start-Up Costs**: 2025 costs elevated due to commissioning, but unit costs to trend down post-Q2. Long-term OpEx ~$4-5/Mtpa + FPSO lease.
- **CapEx Flexibility**: 2025 cap of $400M achievable; 2026+ could stay near $300M if growth projects delayed. Focus on brownfield expansions vs. greenfield.
- **Jubilee Risks**: 2025 guidance assumes 100% voidage replacement; any underperformance would limit upside. FPSO reliability improvements underway.
- **Leverage Timeline**: ~1.5x target by late 2026. Shareholder returns (dividends/buybacks) to be considered post-target achievement.

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