DALLAS - Kosmos Energy Ltd . (NYSE:KOS) reported an earnings beat for the first quarter of 2024, with adjusted earnings per share (EPS) coming in at $0.21, surpassing analyst expectations by $0.04.
However, the company's revenue of $419.1 million fell short of the consensus estimate of $422.68 million. Despite the slight revenue miss, shares of Kosmos Energy edged up by 1.8% as the market responded positively to the earnings beat.
The first quarter's performance saw a significant improvement compared to the same period last year, with net production experiencing a ~13% growth year-over-year (YoY). This increase is largely attributed to higher production in Ghana due to the start-up of the Jubilee South East project and an ongoing infill drilling campaign.
Kosmos Energy's Chairman and CEO, Andrew G. Inglis, commented on the quarter's achievements, noting the operational and financial momentum carried over from 2023. The company is on track to achieve a 50% production growth from the second half of 2022 to year-end 2024, with notable progress in their Tortue project and secured drilling for an upcoming campaign in Equatorial Guinea.
Kosmos Energy's financial resilience was bolstered through a successful convertible bond offering and the refinancing of its reserve-based lending (RBL) facility, extending its maturity to year-end 2029. The company ended the first quarter with approximately $2.7 billion in total long-term debt and about $2.4 billion in net debt, with available liquidity of roughly $954 million.
Looking ahead, Kosmos Energy's full-year capital expenditures are expected to be heavily weighted to the first half of the year as the Ghana drilling program concludes and projects like Winterfell and Tortue Phase 1 progress towards start-up. The company's strategy includes a busy year of catalysts across its business units in Ghana, Equatorial Guinea, the U.S. Gulf of Mexico, and Mauritania and Senegal.
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