Kosmos Energy (KOS) Q4 2024 earnings summary

Executive summary

• Achieved significant operational milestones in 2024, including first oil at Winterfell and first gas and LNG production at GTA, with 2P reserves growing by 137% year-over-year and a reserve life exceeding 20 years.

• Production averaged ~66,800 boe/day in Q4 2024 and ~65,300 boe/day for FY24, with realized prices of ~$65.4/boe and ~$70.7/boe.

• Enhanced financial resilience through $900 million in new bonds, refinancing the RBL facility to $1.35 billion, and extending average debt maturity to four years.

• Focused on disciplined cost management, maximizing free cash flow, and targeting net leverage below 1.5x at mid-cycle oil prices by late 2026.

• Reported a Q4 2024 net loss of $7 million and adjusted net loss of $16 million, with full-year revenues of $1.68 billion.

Financial highlights

• FY24 capex totaled $829 million, with 2025 capex guidance at or below $400 million, a reduction of over 50%.

• Q4 revenues were $398 million; Q4 EBITDAX was $229 million and full-year EBITDAX was $1.07 billion.

• Q4 free cash flow was $14 million; full-year free cash flow was negative at -$255 million.

• Q4 production expense was $153 million ($19.39/boe, excluding GTA-related costs); opex for FY25 expected at $18–$20/boe.

• Net interest expense for FY24 was $89 million; tax benefit of ~$6.8/boe.

Outlook and guidance

• 2025 capital budget set at or below $400 million, with further reductions targeted and $25 million annual overhead reduction by year-end 2025.

• FY25 production guidance: 70,000–80,000 boe/day; Q1 2025: 62,000–66,000 boe/day.

• FY25 opex guidance: $18–$20/boe; DD&A: $22–$24/boe; G&A: $80–$100 million.

• Free cash flow prioritized for debt paydown, with leverage targeted below 1.5x by late 2026.

• GTA ramp-up to full capacity expected by end of 1Q 2025, with 20–25 LNG cargos expected in FY25.