Kosmos Energy Reports Mixed Q3 Results, Increased Long-Term Debt, and Strategic Developments

Kosmos Energy Ltd. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Kosmos generated total revenues and other income of $407.8 million, a decrease from $526.5 million in the same period of 2023. Oil and gas revenue for the quarter was $407.8 million, down from $526.3 million year-over-year, attributed to lower sales volumes and average realized prices. The company reported net income of $44.97 million, a decline from $85.2 million in Q3 2023, with basic net income per share falling to $0.10 from $0.19.

In contrast, for the nine months ended September 30, 2024, total revenues increased to $1.28 billion from $1.19 billion in 2023, with oil and gas revenue rising to $1.28 billion from $1.19 billion. Net income for this period was $196.4 million, slightly up from $191.8 million in the prior year, maintaining a basic net income per share of $0.42.

Total costs and expenses for the third quarter decreased to $301.3 million from $389.0 million in 2023, while for the nine months, they rose to $894.3 million from $863.4 million. The company reported an income before income taxes of $106.6 million for Q3 2024, down from $137.5 million in Q3 2023, but an increase to $383.6 million for the nine months, compared to $330.4 million in 2023.

Kosmos also made strategic moves, including the acquisition of an additional 16.7% interest in the Tiberius discovery area, increasing its stake to 50%. The company reported a significant increase in long-term debt, rising to $2.69 billion from $2.39 billion at the end of 2023, while total assets grew to $5.47 billion from $4.94 billion.

Cash and cash equivalents decreased to $51.6 million from $95.3 million at the end of 2023. However, net cash provided by operating activities increased to $502.5 million from $471.4 million, attributed to higher sales volumes and gas prices, despite rising production costs.

Kosmos continues to focus on its operations in Ghana, Equatorial Guinea, Mauritania/Senegal, and the U.S. Gulf of Mexico, with ongoing projects including the Greater Tortue Ahmeyim liquefied natural gas project and various drilling commitments in Equatorial Guinea. The company also finalized a Decommissioning Trust agreement to fund future retirement obligations associated with the Jubilee Field, committing approximately $148.9 million over 13 years.