Kosmos records loss of $91M in 2013
Kosmos Energy Ltd. announced financial and operating results for the fourth quarter and full year 2013.
For the fourth quarter of 2013, the Company reported net income of $4 million, or$0.01 per basic and diluted share. For the full year 2013, the Company generated a net loss of $91 million or $0.24 per basic and diluted share. Total oil revenues in 2013 were$851 million on eight oil liftings, net to Kosmos.
Highlights for the quarter ended December 31, 2013, include:
- Sold just under two million barrels of oil, net to Kosmos
- Realized a net reserve replacement ratio of 140% at year-end 2013
- Advanced the development of the TEN project following plan of development approval
- Executed our Northwest Africa farm-out initiatives to BP and Cairn Energy
- Completed significant 3D seismic programs offshore Ireland and Mauritania
- Secured the Maersk Discoverer rig to drill our first exploration well in Morocco
Brian F. Maxted, chief executive officer and chief exploration officer, commented, “We enter 2014 well-positioned to execute on our high-impact, multi-well exploration program with the first well in Morocco expected to spud next month. Our plan of development for our second major oil development in Ghana, TEN, was approved last year and work is quickly advancing with first oil targeted for 2016. As a self-funded explorer, we continue to be disciplined in our investment programs to deliver the most value to shareholders.”
Fourth quarter 2013 oil revenues were $215 million versus $218 million in the same quarter of 2012, on sales of nearly two million barrels of oil for each period. Realized pricing was $111.13 per barrel of oil sold in the fourth quarter of 2013 versus $109.26 per barrel of oil sold in the fourth quarter of 2012, excluding the impact of the Company’s hedging program. At the end of 2013, the Company was in a net underlift position of approximately 311,000 barrels of oil.
Production expense for the fourth quarter of 2013 was $17 million, or $8.88 per barrel sold, versus $23 million in the fourth quarter of 2012, due to the absence of workover activities in the latest quarter.
Exploration expenses in the fourth quarter of 2013 totaled $36 million. Included in the quarter were costs related to large 3D seismic surveys in Ireland and Mauritania; ongoing seismic processing and interpretation expenditures throughout the Company’s portfolio; and the cost of the Akasa-2A appraisal well which confirmed the oil-water contact in the Akasa field.
Depletion and depreciation expense was $47 million, or $24.33 per barrel of oil sold versus $28.75 per barrel sold in the fourth quarter of 2012. The decrease in the fourth quarter 2013 depletion rate was a result of the increase in proved reserves as of year-end 2013. General and administrative expense was $40 million for the fourth quarter of 2013 versus $45 million in the fourth quarter of 2012.
Derivative expense for the fourth quarter of 2013 was $17 million, which represents the change in the mark-to-market of the Company’s oil derivative contracts as of December 31, 2013. Income tax expense for the fourth quarter of 2013 was $42 million; the majority of the amount was related to the Company’s operations in Ghana.
The Company’s hedging position at year-end 2013 included 6.0 million barrels of 2014 production and 3.7 million barrels of 2015 production.