DALLAS - Kosmos Energy Ltd . (NYSE: NYSE:KOS), an independent oil and gas exploration and production company, reported a significant beat on both earnings and revenue for the fourth quarter of 2023, sending its shares up by 11.58% in early premarket trading, though most gains have now been retraced. The company posted adjusted earnings per share (EPS) of $0.31, surpassing the analyst consensus of $0.23 by $0.08. Revenue for the quarter reached $508 million, exceeding expectations by $27.31 million compared to the consensus estimate of $480.69 million.
The robust financial performance is attributed to a combination of increased production and efficient operations. Kosmos reported net production of approximately 66,000 barrels of oil equivalent per day (boepd), marking a 12% growth YoY. The company's success in advancing key development projects, such as the start-up of Jubilee Southeast, contributed to the positive results. These efforts are part of a broader strategy to deliver around 50% production growth from the second half of 2022.
Chairman and Chief Executive Officer Andrew G. Inglis commented on the company's performance, stating, "In 2023, we continued to advance our key development projects, which aim to deliver around 50% production growth from the second half of 2022." He also highlighted the significant oil discovery at Tiberius in the Gulf of Mexico and the increased working interest at Yakaar-Teranga, which are expected to strengthen the company's portfolio and support growth through the decade.
Kosmos exited the fourth quarter with approximately $2.4 billion in total long-term debt and a net debt of roughly $2.3 billion. The company generated net cash from operating activities of approximately $294 million but reported a free cash flow of approximately -$27 million, primarily due to higher capital expenditures related to equipment purchases for the Equatorial Guinea infill and ILX drilling program.
Looking ahead, Kosmos provided guidance for net capital expenditures in 2024 to be between $700 million and $750 million, with the majority expected in the first half of the year. This guidance reflects increased subsea expenses at Tortue Phase 1 and the company's efforts to recover losses incurred due to a previous contractor's failure to perform contractual obligations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.