Q2 2025 Kosmos Energy Ltd Earnings Call

Operator: Good day, everybody. Welcome to Kosmos Energy's second quarter 2025 conference call. As a reminder, this call today is being recorded. At this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Kosmos Energy.

Good day, everybody and welcome to Kosmos Energy's second quarter 2025 conference call. As a reminder, this call today is being recorded at this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Kosmos energy.

Hey.

Jamie Buckland: Thank you, Operator, and thanks to everyone for joining us today. This morning, we issued our Q2 2025 earnings release. This release and the slide presentation to accompany today's call are available on the investors' page of our website. Joining me on the call today to go through the materials are Andy Inglis, Chairman and CEO, and Neal Shah, CFO. During today's presentation, we will make forward-looking statements that refer to our estimates, plans, and expectations. Actual results and outcomes could differ materially due to factors we note in this presentation and in our U.K. and SEC filings. Please refer to our annual report, stock exchange announcement, and SEC filings for more details. These documents are available on our website. At this time, I will turn the call over to Andy.

Thank you operator, and thanks to everyone for joining us today.

Morning, we issued our second quarter 2025 earnings release.

This release and the slide presentation to accompany today's call are available on the investors page of our website.

Joining me on the call today do you guys, putting the materials are Andy Ingalls, Chairman and CEO and.

And Neal Shah CFO.

During today's presentation, we will make forward looking statements that refer to our estimates plans and expectations.

Actual results and outcomes could differ materially curious to factors. We note in this presentation and in our U K and SEC filings.

Please refer to our annual report stock exchange announcement and SEC filings for more details. These documents are available on our website.

At this time I will turn the call over to Andy.

Andy Inglis: Thanks, Jamie, and good morning and afternoon to everyone. Thank you for joining us today for our Q2 results call. I will start off the call by talking about Kosmos's priorities, reinforcing the key messages I gave last quarter before updating you on progress across the portfolio. Neal will then walk through the financials and the work we have been doing to enhance the resilience of the balance sheet before I wrap up with closing remarks. We will then open up the call for Q&A. Starting on slide three, as we navigate the ongoing commodity price volatility, our key priorities have not changed. Last quarter, I talked about growing production and reducing costs to prioritize free cash flow while continuing to strengthen our balance sheet. I am pleased to say we have made good progress this quarter across each of these areas. Starting with production.

Thanks, Jamie and good morning, and afternoon to everyone. Thank.

Thank you for joining us today for our second quarter results call.

Start off the call by talking about Cosmos as priorities reinforcing the key messages that I gave last quarter before updating you on progress across the portfolio.

Neil will then walk through the financials and the work we've been doing to enhance the resilience of the balance sheet before I wrap up with closing remarks, well then open up the call for Q&A.

Starting on slide three.

As we navigate the ongoing commodity price volatility a key priorities have not changed.

Last quarter, I talked about growing production and reducing costs to prioritize free cash flow, while continuing to strengthen our balance sheet.

I'm pleased to say we've made good progress this quarter across each of these areas.

Starting with production.

Andy Inglis: In June, we announced the Gimme floating LNG vessel had achieved commercial operations date, or COD, a key milestone for the GTA project. COD is achieved when LNG production is tested for a period of 72 hours at the annual contracted rate of around 2.45 million tons per annum equivalent. The FLNG has a nameplate capacity of around 2.7 million tons per annum, and we are targeting reaching that level in Q4 of the year. The project has now lifted 6.5 gross cargoes year to date. In Ghana, we are pleased that drilling on Jubilee has restarted with the first producer well of the 2025/2026 drilling program now online. Initial gross production from the well is around 10,000 barrels of oil per day, in line with our expectations.

In June we announced the give me a floating LNG vessel had achieved commercial operations date or C. O D. A key milestone for the GTA project.

So you do see is achieved when LNG production is tested for a period of 72 hours at the annual contracted right around 2.45 million tonnes per annum equivalent.

U S. LNG has a nameplate capacity around $2 7 million tonnes per annum, and we're targeting reaching that level in the fourth quarter of the year.

The project is now less than $6 five gross cargoes year to date.

In Ghana, we're pleased that drilling on Jubilee has restarted with the first produce a well the 'twenty five 'twenty six drilling program now online initial gross production from the well is around 10000 barrels of oil per day in line with our expectations.

Andy Inglis: We have also optimized the drilling program by accelerating the scheduled rig maintenance to Q3, which allows us to drill a second producer this year, replacing a previously planned injector. This planned producer well is expected to add further Jubilee production around the end of the year, ahead of four more wells planned in 2026. I will talk about that alongside Q2 Jubilee production later in the material. In the Gulf of America, the partnership has drilled the Winterfell IV well with completion operations underway. The well is expected online around the end of the quarter. We are now approaching Kosmos's record high production levels with further near-term growth expected as we push GTA towards the FLNG nameplate capacity and bring on more wells at Jubilee and Winterfell. Moving to cost, we focus on three areas and are making good progress across all three. Firstly, on CapEx.

We are also optimizing drilling program by accelerating the schedule rig maintenance of three cute, which allows us to drill a second produced this year, replacing a previously planned in Jackson.

This plan to produce a wound is expected to add further jubilee production around the end of the <unk>.

Ahead of four more wells planned in 2026, I'll talk about that alongside <unk> Jubilee production later in the material.

In the Gulf of America, the partnership Israel, The Wynn style full well with completion operations underway. One is expected online around the end of the quarter.

We are now approaching cosmos record high production levels with further near term growth and expected as we push GTA towards U S. LNG nameplate capacity and bring on more wells of Jubilee and wentzville.

Moving to cost.

We focused on three areas and are making good progress across all three.

Firstly on Capex.

Andy Inglis: CapEx in the first half of 2025 was around $170 million, down around 65% from the first half of 2024, as we come out of a heavy investment period and start to see the benefits of those investments. With a sharp focus on CapEx in 2025, we've reduced our full-year CapEx forecast from around $400 million to around $350 million, with the first half actuals supporting this lower forecast as we slow down some longer-term investments. Secondly, on OpEx, the largest opportunity for OpEx reduction is on GTA, and we're seeing OpEx per BOE fall as production ramps up. We're also targeting the refinancing of the GTA FPSO in the second half of the year. We're working with the operator to explore alternative lower-cost operating models, which could further drive down costs across the project. Thirdly, overhead.

Capex in the first half of 2025 was around $170 million down around 65% from the first half of 'twenty 'twenty four as we come out of the heavy investment period and starts to see the benefits of those investments.

With a sharp focus on Capex in 2025, we have reduced our full year capex forecast from around $400 million, Joe round $350 million with the first half actuals supporting this lower forecast as we've slowed down some longer term investments.

Secondly on Opex, the largest opportunity for Opex reduction is on GTA, and we're seeing opex per Boe, a full as production ramps up.

Also targeting the refinancing of the G T. A F. P M. So in the second half of the my working with the operator to explore alternative lower cost operating models, which could further drive down costs across the project.

And so that would be overhead.

Andy Inglis: We remain on track to deliver $25 million of targeted savings by the end of this year, with a full benefit being seen in 2026 and beyond. Finally, the balance sheet, where we continue to prioritize our financial resilience with a focus on cash flow and debt paydown. On liquidity, we're taking steps to address our upcoming debt maturities. As part of today's material, we announced we've agreed indicative terms for a term loan of up to $250 million secured against our Gulf of America assets, and we anticipate using the proceeds to repay our 2026 bond maturity. We're also progressing additional financing activities to fund some of our longer-dated maturities. On hedging, we took advantage of higher prices in late Q2 and early Q3 to hedge more 2026 oil production, with 7 million barrels now hedged in 2026.

We remain on track to deliver $25 million of targeted savings by the end of this year with the full benefits being seen in 2026 and beyond.

And finally, the balance sheet, where we continue to prioritize our financial resilience with a focus on cash flow and debt pay down.

On liquidity, we are taking steps to address our upcoming debt maturities.

As part of today's material, we announced we've agreed indicative terms for a term loan of up to $250 million secured against our Gulf of America assets and when anticipate using the proceeds to repay our 2026 bond maturity.

We're also progressing additional financing activities to fund some of our longer dated maturities.

On hedging we took advantage of higher prices in late <unk> early <unk> to hedge more of 2026 O production with 7 million barrels now hedged in 2026, we're looking to hedge around 50% of 2026 production by the end of this year.

Andy Inglis: We're looking to hedge around 50% of 2026 production by the end of this year. Finally, on the RBL, to reflect the timing impact of GTA ramp-up costs on leverage, we were granted a waiver from our banks on the debt cover ratio covenant through to March 2026. Neal will talk about all of these in more detail later, but in summary, we're making good progress against our financial objectives. Turning to slide four, which looks at operations for the quarter, starting with the GTA projects in Senegal and Mauritania. Second quarter neck production was just over 7,000 barrels of oil equivalent per day, and the partnership lifted 3.5 gross LNG cargoes, as previously communicated. As mentioned on the previous slide, the FLNG commercial operations date was achieved in late June.

And finally on the I'll be out to reflect the timing impacts of GTA ramp up costs on leverage we were granted a waiver from our banks on the debt cover ratio covenant through to March 2026.

Neal we're talking about all of these in more detail later, but in summary, we're making good progress against our financial objectives.

So any slight fall, which looks at operations for the quarter.

Starting with the GTA project in Senegal and Mauritania.

Second quarter net production was just over 7000 barrels of oil equivalent per day and the partnership lifted 3.5 gross LNG cargoes as previously communicated.

Mentioned on the previous slide the S. LNG commercial operations date was achieved in late June. This is an important operational and financial milestone for Cosmos as it signals. The end of this finally, the NOC capex on the project.

Andy Inglis: This is an important operational and financial milestone for Kosmos as it signals the end of us funding the NOC's CapEx on the project. In Ghana, total net production was around 29,100 barrels of oil equivalent per day. Jubilee gross production of around 55,000 barrels of oil per day was lower than expected in the second quarter, driven by nine days of planned FPSO shutdown, a period of riser instability following the restart, which has since been addressed, and underperformance of some wells on the eastern side of the field. I will talk more on the following slides about how the partnership is addressing these issues and the actions being taken to reestablish the full production potential of the field. As mentioned on the previous slide, the first producer well of the 2025/2026 program was brought online late last month and is performing well.

In Ghana total net production was around 29100 barrels of oil equivalent per day.

Jewelry gross production of around 55000 barrels of oil per day with lower than expected in the second quarter driven by nine days of planned F. BSO shutdown appeared to rise or instability. Following the restart which has since been addressed and underperformance of some wells on the eastern side of the field.

More on the following slides about how the partnership is addressing these issues and the actions being taken to reestablish the full production potential of the field.

As mentioned on the previous slide the first produced swallow the 'twenty five 'twenty six program was brought online late last month and is performing well.

Andy Inglis: Jubilee gross gas production was around 16,600 barrels of oil equivalent per day in the second quarter. In early June, we announced that we signed an MOU with the government of Ghana to extend the licenses to 2040. The license extensions are a win-win for the project partners and the government, with partners now planning long-term investments in the fields to maximize value for all stakeholders. We are working with our partners and the government to finalize the documentation targeting completion in the second half of the year. When I met with President Mahama earlier this year, we discussed his desire to reinvigorate the oil and gas sector in Ghana with increased investment in some of the country's most valuable assets. The license extensions on Jubilee and TEN are aligned with that agenda. At TEN, gross oil production in the quarter was just under 16,000 barrels of oil per day.

Jubilee gross gas production was around 16600 barrels of oil equivalent per day in the second quarter.

In early June we announced that we have signed an Mou with the government.

Ghana to extend the licenses to 2040 the license extensions are a win win for the project partners and the government with partners now planning long term investments in the sales to maximize value for all stakeholders. We are working with our partners and the government to finalize the documentation targeting completion in the second half of the.

Yeah.

When I met with President Bahama earlier this year, we discussed his designed to reinvigorate the oil and gas sector in Ghana with increased investment in some of the country's most valuable assets. The license extensions on Jubilee and 10 are aligned with that agenda.

A 10 gross oil production in the quarter was just under 16000 barrels of oil per day.

Andy Inglis: In the Gulf of Mexico, net production was around 19,600 barrels of oil equivalent per day at the upper end of guidance, driven by strong performance from the Kodiak and Odd Job fields. At Winterfell, the partnership has drilled the number four well with completion operations underway, and the well is expected online later this quarter. On Tiberius, we continue to advance the development with our 50/50 partner, Oxy, with FID targeted next year. In Equatorial Guinea, net production was just under 8,000 barrels of oil per day, lower than expectation due to some subsea pump mechanical failures at Saba. The operator expects the first replacement pump to be installed in the fourth quarter, with production expected to rise thereafter. Turning to slide five, at GTA, we continue to see a lot of positive progress with the project now fully operational.

In the Gulf of America net production was around 19600 barrels of oil equivalent per day at the upper end of guidance driven by strong performance from the Kodiak and I'll jump fails.

At <unk> the partnership has drilled the number four well with the completion of all prices underway and while as expected online later this quarter.

On Tiberius, we continued to advance the development with our 50 50 partner Oxy with S. I D targeted next year.

So again, a net production was just under 8000 barrels of oil per day lower than expectations due to some subsea pump mechanical failures at sabre.

Operating expenses for the first replacement pumps are being sold in the fourth quarter with production expected to rise thereafter.

Turning to slide five.

At GTI, we continue to see a lot of positive progress with the project now fully operational.

Andy Inglis: Year to date, we have lifted 6.5 gross cargoes, and the cadence of cargo liftings is increasing as production ramps up. Further progress is expected with production expected to rise towards a nameplate capacity of 2.7 million tons per annum in the fourth quarter. Production of the project is expected to fluctuate slightly with seasonal temperatures, with higher production expected during the winter months when the air and sea temperatures are cooler. Full-year guidance of 20 gross cargoes reflects a slightly slower production ramp-up than we saw in the second quarter and early third quarter. Importantly, the subsurface is performing well, which is a key factor as we plan future expansion phases. As a reminder, there is around 25 TCF of discovered gas in place at GTA. Phase one only requires around 3 TCF for 20 years of production at the contracted rate.

Year to date, we've left six five gross cargos and the cadence of cargo listings is increasing as production ramps up.

But the progress as expected with production expected to rise towards the nameplate capacity of $2 7 million tonnes per annum in the fourth quarter.

Whereas some of the project is expected to fluctuate slightly with seasonal temperatures with high production expenses during the winter months, when the air and sea temperatures are cooler.

Full year guidance of 20 gross cargoes reflects a slightly slower production ramp up that we saw in the second quarter and early third quarter.

Importantly, the subsurface performing well, which is a key factor as we plan future expansion phases.

As a reminder, there was around 25 tcf of discovered gas in place of GTA phase one only requires around three tcf of 20 years of production of the contracted right.

Andy Inglis: This is a world-class gas resource with significant running room. The partnership also expects the first Condensate cargo late in the third quarter, a meaningful additional revenue stream for the project. On operating costs, both startup and commissioning costs should start to fall away in the second half of the year. We are also progressing the refinancing of the FPSO lease, targeting completion in the second half of the year. Additionally, the partners are working with the operator to explore alternative lower-cost operating models to drive down costs further. As we look out with Phase one now fully operational, the next major opportunity to enhance value is through future expansion. Phase one plus, a low-cost brownfield expansion that leverages the existing Phase one infrastructure to enable gas production to double at a fraction of the cost, to increase LNG production and domestic gas to our host countries.

World Class gas resource with significant running room.

The partnership also expects the first condensate cargo late in the third quarter, a meaningful additional revenue stream for the project.

On operating costs, both startup and commissioning costs should start to fall away in the second half of the.

We're also progressing the refinancing of the <unk> targeted completion in the second half of the year.

Additionally, the partners are working with the operators to explore alternative lower cost operating models to drive down costs further.

As we look out with phase one now fully operational the next major opportunity to enhance value through future expansion.

Phase one plus a low cost brownfield expansion that leverages the existing phase one infrastructure to enable gas productions with double at a fraction of the cost through increased LNG production and domestic gas to our host countries.

Andy Inglis: During an official visit to the U.S. in July, the presidents of Senegal and Mauritania met with President Trump at the White House. President Faye of Senegal spoke positively to President Trump about Kosmos and our critical role in discovering the GTA field 10 years ago. He also talked about the importance to Senegal of U.S. investment from companies like Kosmos and the joint opportunities that could be created through investment in sectors core to the country's economic growth, such as natural gas. The videos of the meetings are online and worth watching. Turning to slide six, 2025 is an important year for our operations in Ghana as we return to drilling. The timeline on the slide shows the journey we are on to deliver the full potential of the Jubilee field.

Joining official visit to the U S. In July the President of Senegal, and Mauritania met with President Trump the Whitehouse.

President of Fei of Senegal spoke positively to president Trump about Cosmos, a critical role in discovering the GTA feel 10 years ago.

You also talked about the importance of Senegal of U S investment from companies like Cosmos, the joint opportunities that can be created through investment in Santos coal to the country's economic growth such as natural gas <unk>.

The meetings are online and was watching.

Turning to slide six.

2025 is an important year for oil prices, Ghana, as we return to drilling.

The timeline on the slide shows the journey, we're on to deliver the full potential of the Jubilee field.

Andy Inglis: The first half of 2024 marked the end of the previous three-year drilling campaign, which was done using 40 seismic shots in 2017. At the end of that drilling campaign, Jubilee production peaked above 100,000 barrels of oil per day. In the second half of the year, we saw the start of a 12-month drilling hiatus, resulting in some expected natural decline of the field, which was exacerbated by facility issues that we talked about in detail last year, namely reliability, water injection, and power generation. The first half of 2025, the partnership carried out a significant facility's work scope on the FPSO during the scheduled shutdown. While void replacement for the first half of the year has been above 100%, production declines have been higher than anticipated in certain wells on the eastern side of the field, including Jubilee Southeast.

The first half of 2024 month, the end of the previous three year drilling campaign, which was done using 40 seismic shot in 2017.

The inverse drilling campaign Jubilee production peaked above 100000 barrels of oil per day.

In the second half of the year, we saw the start of a 12 month trailing hiatus, resulting in some expected natural decline of the field, which was exacerbated by facility issues that we talked about in detail last year, namely reliability of water injection and power generation.

The first half of 2025, the partnership carried out a significant facilities work scope on the F. BSO joined the scheduled shut down.

While voyage replacement for the first half of the year has been above 100%.

Action declines have been higher than anticipated certain wells in the eastern side of the field, including Jubilee southeast.

Andy Inglis: Riser-based gas lift was introduced to the eastern side of the field, which has helped to restore and stabilize production, and plans are in place to do the same on the western side of the field in the future. In early 2025, we acquired new 40 across the field, the first since 2017, to ensure the next set of wells we drill in Jubilee are the best targets, de-risked with the best data and technology. A key event in the second quarter was the arrival of the rig to commence the 25/26 drilling campaign. In July, we brought the first new well online in over a year, a producer in the Jubilee main reservoir with initial gross production of around 10,000 barrels of oil a day.

And suffice Gaslit was introduced to the eastern side of the field, which has helped to restore and stabilized production and plans are in place to do the same on the western side of the field in the future.

In early 2025, we acquired new 40 across the field. The first since 2017 to ensure the next set of wells. We drill in Jubilee are the best target's Derisked with the best data and technology.

The key events of the second quarter was the arrival of the rig to commence the 'twenty five 'twenty six drilling campaign.

In July we brought the first new well online and over yeah, a producer and the Jubilee main reservoir with initial gross production of around 10000 barrels of oil a day.

Andy Inglis: The 2025 rig program has been optimized to drill a second producer well in the Jubilee main field following a period of scheduled rig maintenance. The second producer well is expected online around the end of the year. We're excited to see the enhanced imaging of the FastTrack 40 seismic data now coming through, which we plan to further improve using Ocean Bottom Node seismic or OBM, which we expect to acquire later in the year. I'll talk more about that on the following slide. As we look forward to next year and beyond, we're back to a more regular drilling cadence with four wells committed in 2026, which will start to benefit from the new seismic.

The 2025 rig program has been optimized to drill a second produce well and the Jubilee main field following a period of scheduled maintenance <unk>.

Second <unk> is expected online around the end of the year.

We're excited to see the enhanced imaging of the fast ramp 40 seismic data now coming through which we plan to further improve using ocean bottom seismic our obs, which we expect to acquire later in the year.

<unk> talk more about that on the following slide.

As we look forward to next year and beyond we're back to a more regular drilling cadence with four wells commissioned in 2026, which will start to benefit from the new seismic.

Andy Inglis: Turning to slide seven, I want to spend some time on this slide talking about the importance of consistent drilling and how the partnership is planning to use the latest technologies to deliver the full potential of Jubilee. Using cutting-edge seismic technology to enhance resource recovery in mid-life fields is a growing theme across the industry, with recent communications from some of the majors highlighting the significant role they're expected to play over the coming years. The 40 narrow azimuth seismic, or NAZ, shot in the first quarter of the year was the first seismic acquired over the field since 2017. This new seismic data processed with the latest technologies generates a better understanding of the subsurface through enhanced imaging, which is helping to identify new undrilled lobes and unswept oil.

Turning to slide seven.

I want to spend some time on this slide talking about the importance of consistent drilling and how that partnership is planning to use the latest technologies to deliver the full potential of <unk>.

Using cutting edge science, <unk> technology to enhance resource recovery midlife feels is a growing theme across the industry with recent communications from some of the majors highlighting the significant growth they expect it to play out with the coming years.

The 40 narrow asthma seismic announced shut in the first quarter of the year was the first seismic acquired over the sales since 2017.

This new seismic data process with the latest technologies generating a better understanding of the subsurface through enhanced imaging, which is helping to identify new andrill lives and <unk>.

Andy Inglis: As can be seen on the slide, the modern NAZ data on the bottom right shows much greater definition of existing reservoirs and yields an improved understanding of fluid movements over time compared to the legacy seismic in the top right. The improved imaging of the new data also provides greater visibility and understanding of deeper potential. At Kosmos Energy Ltd., we've taken the lead in coupling this modern seismic with new AI-enhanced data interpretation and reservoir modeling to maximize recovery. As mentioned on the previous slide, we're planning to acquire OBM data over the field later in the year, which will enhance the velocity model to further uplift the NAZ processing. The velocity model inserts to the two images on the slide show the evolution and improvement in clarity from 2017 to the present day, and we think there's more to go with OBM data.

As can be seen on the slide the modern NASDAQ on the bottom right shows much greater definition of existing reservoirs and yields an improved understanding of fluid movements over time get parents the legacy seismic in the top right.

We improved the imaging of the new data also provides greater visibility and understanding of the deeper potential.

At Kosmos we've taken the lead in coupling this modern seismic with new AI enhanced data interpretation and reservoir modeling to maximize recovery.

As mentioned on the previous side, we're planning to acquire Obs data over the fair later in the year, which will enhance the velocity model to further uplift announced processing.

The velocity model lends us to the two images on the slide show the evolution and improvement in clarity from 2017 to the present day and we think there's more to go with obs data.

Andy Inglis: The second message on the slide I want to focus on is drilling. We talked at length in the past about the need for regular drilling on Jubilee, a key part of delivering the field's potential alongside high facility uptime and sustained water injection. As I mentioned, the 2025/2026 drilling program is now underway with the first Jubilee producer, J72, online, and a second Jubilee mainfield producer expected online around the end of the year. Following completion of that well, the rig is scheduled to drill four wells on Jubilee in 2026, targeting well-defined mainfield producers supported by good adjacent well control, similar to J72. Going forward, we expect three to four wells per year will be needed to maximize the field's full potential over a multi-year period and sustain higher production levels.

The second message on this slide I want to focus on is drilling.

We talked at length in the past about the need for regular drilling on <unk>, a key part of delivering the field's potential alongside high facility uptime and sustained water injection.

As I mentioned the $25 26 drilling program is now underway with the first Jubilee producer J 72 online and a second Jubilee main field producer expected online around the end of the year.

Following completion of that while the rig is scheduled to drill four wells in Jubilee in 2026 targeting well defined minefield produces supported by good adjacent well control so much of <unk> 72.

Going forward, we expect three to four wells per year will be needed to maximize the fields full potential over a multiyear period and sustained higher production levels.

Andy Inglis: With a license extension MOU, the partnership can now plan on long-term investment in Jubilee, which should also drive a material uplift in 2P reserves. In summary, Jubilee is a big field that we expect will get bigger through regular drilling supported by new imaging and reservoir management technology. Turning to slide eight, in the Gulf of America, second quarter performance was good with production at the upper end of guidance, helped by strong output from both Akeng Deep and Kodiak. At Winterfell, the number four well was drilled in the second quarter and is anticipated to come online late Q3. The well is expected to contribute a net rate to Kosmos Energy Ltd. of around 1,000 barrels of oil equivalent per day.

With the license extension Mou the partnership can now plan on long term investment in Jubilee, which should also drive a material uplift in <unk> reserves.

In summary, we believe the big fields that we expect will get bigger through regular drilling caused by new imaging and reservoir management technology.

Turning to slide eight the Gulf of America second quarter performance was good with production at the upper end of guidance helped by strong output from both odd job and Kodiak at wind developer number four well was drilled in the second quarter and is anticipated to come online late <unk>.

The one is expected to contribute a net right cosmos of around 1000 barrels of oil equivalent per day.

Andy Inglis: On our development activity, we, together with Oxy, are continuing to progress Tiberius and outboard Wilcox Discovery, working on improved lower-cost development plans supported by new OBM seismic that we expect to acquire later in the year. FID would then be targeted for next year. Gettysburg is a discovered resource opportunity we acquired in their previous lease sale in the Norfolk Trend. To advance the project, we brought in Shell as a 75% partner and operator and are working alongside them in a joint team to progress a low-cost single well development that will be tied back to Shell's operated Appomattox platform. That concludes the review of the portfolio, and Neal will now take you through the financials.

On our development activity, we together without continuing to progress Tiberius and outboard Wilcox discovery working on improved lower cost development plan supported by new <unk> seismic that we expect to acquire later in the year.

We'll then be targeted for next year.

<unk> is the discovered resource opportunities that we acquired in the previous lease sale and the normal trend to advance. The project. We brought in shell is a 75% partner and operator and are working alongside them and has joined <unk> to progress a low cost single well development that would be tied back to shell's operated Appomattox platform.

That concludes the review of the portfolio and they will now take you through the financials.

Neal Shah: Thanks, Andy. Turning now to slide nine, which looks at the quarter in detail. Production was higher sequentially due to GTA coming on and strong performance in the Gulf of America, partly offset by lower production in Jubilee and Equatorial Guinea. Production did come in lower than guidance, mainly due to the ramp-up timing on GTA, which we communicated in June, and lower Jubilee production in the quarter. With GTA ramped up and the first Jubilee well online in July, current production is approaching record highs, as Andy previously mentioned. With additional wells at Jubilee and Winterfell, the installation of replacement pumps at Saba and ramp-up further of GTA targeting the FLNG nameplate capacity, we expect production to continue to rise quarter over quarter into 2026.

Thanks, Andy turning now to slide nine which looks at the quarter in detail.

Production was higher sequentially due to GTA coming on and strong performance in the Gulf of America, partly offset by lower production in Jubilee and Equatorial Guinea.

Production did come in lower than guidance, mainly due to the ramp up timing on GTA, which we communicated in June and lower Jubilee production in the quarter.

With GTA ramped up in the first Jubilee well online in July current production is approaching record highs as Andy previously mentioned.

With additional wells at Jubilee in Winterfell installation of replacement pumps at Sabre.

Ramp up further or GTA targeting the LNG nameplate capacity.

Expect production to continue to rise quarter over quarter into 2026.

Neal Shah: OpEx per BOE, as shown on the slide excluding GTA, was higher in the quarter, largely reflecting the one TEN lifting we expect this year since TEN operating costs are booked in the quarter the cargo is lifted. G&A was lower as we start to see the impact of some of the overhead savings coming through. Finally, CapEx came in under budget due to the timing of activity in the Gulf of America and lower GTA costs in the quarter. As Andy discussed earlier, we have lowered our full-year CapEx guidance to approximately $350 million from $400 million with Q1 and Q2 CapEx demonstrating we are on track to achieve the lower amount, which we believe is sustainable into 2026. With our CapEx and NOC funding winding down and production increasing, at current oil prices, we are generating free cash flow.

Opex per BOE as shown on the slide excluding GTA was higher in the quarter largely reflecting the 110 lifting we expect this year.

10 operating costs are booked in the quarter the cargo is lifted.

G&A was lower as we start to see the impact some of the overhead savings coming through.

And finally Capex came in under budget due to the timing of activity in the Gulf of America, and lower GTA costs in the quarter.

As Andy discussed earlier, we have lowered our full year capex guidance to approximately $350 million from $400 million in.

With <unk> and <unk> Capex, demonstrating we are on track to achieve the lower amount, which we believe is sustainable into 2026.

Okay.

With our Capex and NFC funding winding down and production increasing at current oil prices, we are generating free cash flow.

Neal Shah: While the timing has been slightly delayed, we remain focused on maximizing cash flow in the near term and reducing the absolute amount of net debt. I also want to mention that while working capital is difficult to predict on a quarterly basis, we do expect a working capital draw in the third quarter to reflect the timing of some payments. Turning to slide 10, as Andy said in his opening remarks, one of the priorities for the company this year is enhancing the resilience of the balance sheet, and we have made progress in several key areas recently. On liquidity, we have agreed indicative terms for a senior-secured term loan with an investment-grade counterparty at a cost similar to our existing RBL for up to $250 million, which we would anticipate using to repay the outstanding 2026 unsecured notes.

While the timing has been slightly delayed we remain focused on maximizing cash flow in the near term and reducing the absolute amount of net debt.

I also want to mention that while working capital is difficult to predict on a quarterly basis, we do expect a working capital draw in the third quarter to reflect the timing of some payments.

Turning to slide 10 as.

As Andy said in his opening remarks, when our priorities for the company. This year is enhancing the resilience of the balance sheet and we've made progress in several key areas recently.

On liquidity, we've agreed indicative terms for a senior secured term loan with an investment grade counterparty.

Similar to our existing RPM for up to $250 million, which we would anticipate using to repay the outstanding 2026 unsecured notes.

Neal Shah: This facility would be secured against our assets in the Gulf of America with a final maturity date four years after closing, which is anticipated by the end of the third quarter. The chart on the right shows the pro forma impact of this transaction on our maturity schedule, assuming we fully draw down on the new facility to repay the outstanding 2026 notes. Through the second half of this year, we plan to continue working on accessing additional attractive sources of liquidity to potentially repay some of our other longer-dated maturities. On hedging, we continue to add additional protection against commodity price downside through the back half of the year into 2026. For the remainder of 2025, we have 5 million barrels of oil production hedged with a $62 per barrel floor and a $77 per barrel ceiling.

This facility would be secured against our assets in the Gulf of America with a final maturity date for years after closing, which is anticipated by the end of the third quarter.

The chart on the right shows the pro forma impact of this transaction on our maturity schedule, assuming we fully draw down on the new facility to repay the outstanding 2026 notes.

Through the second half of this year, we plan to continue working on accessing additional attractive sources of liquidity to potentially repay some of our other longer dated maturities.

On hedging we continue to add additional protection against commodity price downside is back half of the year into 2026.

For the remainder of 2025, we have 5 million barrels of oil production hedged with $62 per barrel floor, and a $77 per barrel ceiling.

Neal Shah: We also took advantage of higher prices in late Q2 and early Q3 to add more hedges for 2026. We now have 7 million barrels of oil hedged next year with a floor of $66 per barrel and a ceiling of $75 per barrel. On CapEx, I talked on the previous slide about reducing full-year guidance to approximately $350 million from $400 million. The chart on the bottom right shows the material drop in quarterly CapEx from last year, with lower levels of CapEx expected to continue as we prioritize free cash flow. Finally, we worked with our banks to amend the debt cover ratio calculation for the RBL, increasing the ratio for the next two scheduled test dates to reflect the timing impact of startup of the GTA project on the backward-looking leverage calculation.

We also took advantage of higher prices in late <unk> and early <unk> to add more hedges for 2026.

We now have 7 million barrels of oil hedged next year with a floor of $66 per barrel and a ceiling of $75 per barrel.

On Capex I touched on the previous slide about reducing full year guidance of approximately $350 million from $400 million.

The chart on the bottom right shows the material drop in quarterly Capex from last year with lower levels of Capex expected to continue as we prioritize free cash flow.

And finally, we worked with our banks to amend the debt cover ratio calculation for the <unk> increasing the ratio for the next two scheduled test date to reflect the timing impact of startup of the GTA project on a backward looking leverage calculation.

Neal Shah: The debt cover ratio will return to the originally agreed level thereafter when full-year revenues from the GTA project are better aligned with operating expenses. In summary, we remain proactive on improving the balance sheet, raising liquidity, increasing hedging, and reducing costs, and we'll continue to update the market as we make further progress in the second half of this year. With that, I'll hand it back to Andy.

The debt cover ratio will return to the originally agreed level thereafter, when full year revenues from the GTA project are better aligned with operating expenses.

So in summary, we remain proactive on improving the balance sheet, raising liquidity, increasing hedging and reducing cost and we'll continue to update the market as well.

Make further progress in the second half of this year.

With that I'll hand, it back to Amy.

Andy Inglis: Thanks, Neal. Turning now to slide 11 to conclude today's presentation. As I said in my opening remarks, our near-term focus is on growing production, reducing costs, and enhancing the resilience of the balance sheet, and we are making good progress in all three areas. As we look beyond the near term, there is significant scope to add long-term value for our investors through high-quality production and development opportunities across the portfolio. On GTA, with the first phase now fully operational, we are focusing our efforts towards reducing costs and doubling production to further drive down unit costs through advancing the low-cost brownfield expansion that leverages the existing infrastructure. In Ghana, Jubilee is a big mid-life field with significant reserves yet to be produced, which could be accessed by consistent drilling enabled by new technology and the license extension.

Thanks, Neal turning now to slide 11 to include today's presentation.

As I said in my opening remarks, our near term focus is on growing production, reducing cost and enhancing the resilience of the balance sheet and we're making good progress in all three areas.

As we look beyond the near term that significant scope to add long term value for our investors through high quality production and development opportunities across the portfolio on GTA with the first phase now fully operational we are focusing our efforts towards reducing costs doubling production to further drive down unit.

Costs to advancing the low cost brownfield expansion that leverages the existing infrastructure.

In Ghana Jubilee is a big midlife failed with significant reserves yet to be produced which can be accessed by consistent drilling enabled by new technology and the license extension.

Andy Inglis: In the Gulf of America, a proven basin with significant running room, we continue to advance an attractive portfolio of infrastructure-led exploration and development options in the outboard Wilcox and Norfolk Trends that leverage Kosmos's capability. In Equatorial Guinea, our assets should deliver cash flow as we selectively invest in production optimization opportunities. In summary, Kosmos has a diverse, differentiated portfolio with a 2P reserves to production life of over 20 years, with considerable discovered resource beyond that. The conversion of this discovered resource into high-value reserves and then into production will be done at the right pace in a capitally efficient manner, prioritizing cash flow and the balance sheet in the near term. We look forward to delivering on these near-term objectives, which will support long-term value creation for our investors. Thank you.

The Gulf of America have proven basin with significant running room, we continue to advance an attractive portfolio of infrastructure led exploration and development options in the outboard Wilcox and no foot trends that leverage cosmos this capability.

And in Equatorial Guinea, our assets should deliver cash flow as we selectively invest in production optimization opportunities.

So in summary, Cosmos has a diverse and differentiated portfolio with a two <unk> reserves to production life of over 20 years with considerable discovered resource beyond that the.

The conversion of this discovered resource into high value reserves and Venice production will be done at the right pace in a capital efficient manner prioritizing cash flow and the balance sheet in the near term.

We look forward to delivering on these near term objectives, which will support long term value creation for our investors.

Thank you and I'd now like to turn the call over to the operator to open the session for questions.

Andy Inglis: I would now like to turn the call over to the operator to open the session for questions.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Charles Mead with Johnson Rice. Please proceed.

Thank you if he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is another question kill you May Press Star kill Etsy with like train move your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Our first question is from Charles Meade with Johnson Rice. Please proceed.

Charles Mead: Good morning, Andy, and good morning, Neal, and to your whole team there. Andy, I want to ask a question about Jubilee. You have given us a lot of great, great detail here, and I love all the technical detail. Looking at the story from the top down, you mentioned that in the first half of 2024, the field was producing over 100,000 barrels, and a year later, you are down to 55, or let us call it 60, adjusted for downtime. That 40% decline in a year strikes me as high, maybe anomalously high. If I look at it from a different way and say, okay, you need to drill four new producers every year to keep the field flat, and if those producers come in like your latest one, maybe that 40% annual decline is the slope you are fighting every year.

Good morning, Andy Good morning, Neil to your whole team there.

Andy I wanted to ask a question about do you believe you've given us a lot of great great detail here and and I love all the technical detail, but.

Looking at the looking at.

The story from a top down you gave us the you mentioned that in the first half of 'twenty for the field was producing over 100000 barrels and a year later.

You're down to 55 or let's call. It 60 adjusted for downtime, so that 40% decline in a year of strikes me is.

Hi, maybe anomalously high, but but if I look at it from a different way and say okay well.

Your you need to drill four new producers every year.

To keep the field flat and those producers come in like your like your latest one maybe that 40% annual decline is is the are the slope you fighting every year. So I wonder if you could.

Charles Mead: I wonder if you could comment on whether that is a valid way of looking at it and what you would add to that picture.

You could comment on whether that's a viable way of looking at it and what you would add to that picture.

Andy Inglis: Thanks, Charles. It is a really good question. When you look at it from the top down, you are rightly focused on where we are in Q2. Not only was the shutdown a little challenged, but we did have the additional issues of the riser instability, which we have ironed out. You have to look in Q2 in the right context. It was also impacted by higher-than-expected decline, certainly in some of the wells on the eastern side of the field, and in particular, Jubilee Southeast. You ask, what are we actually doing about that now? We talked in quite a lot of detail in the prepared section of the impact of two things. One is better data. We are really pleased with the uplift we are seeing from the FastTrack data in the NAZ. You need to remember this is FastTrack, a very early product.

Yes, Thanks Charles.

Good question I think when you look at it from the top down I think you sort of focused on where we are in.

<unk> not only with the shutdown a little challenge, but we did have the additional issues of the riser instability, which which we've ironed out. So you sort of have to look into Chile and in the right context, yes, but it was also impacted I think by by higher than expected decline certainly.

And then some of the wells on the eastern side of the field that particular Jubilee Southeast sorry, you go okay, well, what do we actually doing about that now I think we talked to quite a lot of detail in the prepared section of the impacts of two things one is that the data we have.

But really.

Please where the uplift we're seeing from the fast track data and the NAV and again remember this is fast track in very early product and to me. The uplift is huge in terms of our ability to see better or.

Andy Inglis: To me, the uplift is huge in terms of our ability to see better opportunities in the field, both from undrilled lobes and unswept oil. You are starting to see now a much clearer picture. We did suffer towards the end of the last drilling campaign from the quality of the data we stated back to 2017. You have got much better data, and then the ability to improve it further than NAZ to the OBN. We are going to get to see a big uplift in the velocity model. The imaging is only going to become clearer. As you rightly say, the second part of the story is how do you harness that improved data? You have got to drill regularly. We have said all along that you need to get three to four wells in a year to maintain the production levels.

Opportunities in the field, both from under our loads and swaps of oil so you're starting to see now a much clearer picture.

We did saw towards the end of the last drilling campaign from the quality of the data that we started back in 2017, so you've got much better data and then the ability then to improve it further than after the ERP and I think we're going to get to see a big uplift.

The velocity model. So I think the imaging is only going to become a player and then as you rightly say the second part of the story is have you harnessed that improve data you've got to drill regularly.

When we've said all along that you need to get three to four wells in a year.

Sort of maintaining the production levels. So if you sort of take that and sort of track forward.

Andy Inglis: If you take that and track forward, we drilled the first of those wells and brought it online last month. We are seeing production rising as a result. We hope to get a second well on around by year-end. That can push production up to around 70,000 barrels a day. The drilling is more than offsetting the underlying decline and leading to growth. Four more wells in 2026, we think they are likely going to be producers. If you think each of those is adding 5,000 to 10,000 barrels a day, you can see your way, even with the decline that we are seeing, building up towards that 90,000 barrels a day. I think that is how you get back to where we need to be.

We drilled the first of those wells and brought it online.

Last month, and you know where were seeing production rising as a result.

To get a second well on around by year end and I think that gives you that can push production up to around 70000 barrels a day. So the drilling is more than offsetting the underlying go off and decline and leading to growth and then you know four more wells in 2006.

We think that likely going to be producers, maybe you think each of us is adding five to 10000 barrels a day.

You can see your way with the you know even with.

The decline that was saying you know building up towards that sort of 90000 barrels a day.

So I think that's how you get back to where we need to be and then you can sort of rins to repeat because you've got quality data and you're starting to deliver a regular consistent drilling program targeting high quality wells. So.

Andy Inglis: Then you can sort of rinse-repeat because you have got quality data and you are starting to deliver a regular, consistent drilling program targeting high-quality wells. Yes, 2Q was lower than expectation, and you have sort of done the maths on that. I think even when you were sort of, you adjust it for the one-offs that were in there, and then you start to look at the performance we are seeing from some of the wells that we are drilling, you can reestablish the potential of the field. It is going to require the two things we talked about. It is going to require good data, and I think I am really pleased with what we are seeing with the NAZ.

Yes.

<unk> was lower than expectation and you've sort of done the math on that but I think even when you were saying you know you adjusted for the one offs that were in that and then you start to look at the performance we're seeing from some of the wells that we're drilling.

Can re establish the potential of the field, but it's kind of acquire the two things we talked about it quite good data and I think I'm really pleased with what we're seeing with the NAV and I think the fast track now Atlanta get better with a full product and then the uplift from there again and then back to a regular drilling program.

Andy Inglis: I think the FastTrack NAZ, it will only get better with the full product and then the uplift from the OBN and then back to a regular drilling program.

Charles Mead: Got it. That's great detail, Andy. Thank you. On GTA, I think you mentioned in your prepared comments and the slides, and it's also in the press release, talking about exploring different operating models to lower costs. Can you give us a sense of what they might be or, more importantly, what the order of magnitude might be for reducing the cost? I am guessing that means in the absolute sense, not as a precursor to reducing it on a unit basis.

Got it that's that's great detail Andy. Thank you and then on the on G. T. A I think you you you mentioned in your prepared comments and the slides since also went up.

The press release talking about exploring different operating models to lower costs.

And it.

Can you can you give us a sense of you know.

What what they might be or more importantly, what the order of magnitude might be for reducing the cost and I'm guessing that means in absolute.

So it's not not and you know that's.

That's a precursor to producing it.

On a unit basis.

Andy Inglis: Yeah, absolutely. I think it's just to remember that Jubilee has certainly been a major project for us. The startup of a major facility such as this is an LNG scheme. The first year is always a challenging period because you're building plateau, you're removing those shutdown and commissioning costs and getting to steady state. So I think the first order of business is to deliver that outcome and get to that plateau. I think we got COD in June. I think we're holding at those levels now. We're producing at the ACQ. We know there's more to go when we look at the individual trains and the optimization that can be done, that's absolutely the ability to get to nameplate and beyond. So that's part of the journey in the second half of the year.

Yeah, absolutely yeah. It's I think it's just sort of remember that you know GTA.

A major project for us.

The startup of a major facilities such as the Netherlands can escape and it always comes I think the first year is always a challenging period, because you're building plaza, you're moving those shut down and commissioning costs and getting to steady state. So I think the first order of business is service.

Deliver that outcome.

And get to that sort of plateau and I think we got C. O D. In June I think we're holding at those levels now.

And we're producing at the <unk> cute. So I think what we know there's more to go when we look at the individual trains and the optimization that can be done you'd have this absolutely ability to get to nameplate and beyond so that's part of the journey and in the second half of the year than part of the journey in the second half of the year.

Andy Inglis: Part of the journey in the second half of the year is getting those projects and startup costs, commissioning costs out of the system and getting to a lower level, which we think we'll achieve both in the fourth quarter. Looking beyond that, the conversation with the operator is around a couple of things. We're looking at how we refinance the FPSO in the second half of the year. That will bring a significant benefit to Kosmos Energy Ltd. and to the NOCs. Beyond that is how do you reduce the operating costs even lower? Ultimately, Charles, that is about exploring all operating models. At the moment, we have a model which is exclusively BP personnel, both on the FPSO and the hub. Are there ways in which you can look at models that are employed elsewhere that ultimately get you to a more competitive position?

Getting those projects those startup costs commissioning costs out of the system and getting to a lower level, which we think we'll achieve both.

In the fourth quarter, and then looking beyond that because of the conversation with the with the operator is around a couple of things where we're looking at how we refinance the peso in the second half of the year that will bring a significant benefit to cosmos and so the two to the NRC and then beyond that.

How would you reduce the the operating costs are even lower than that.

You know that ultimately Charles is about exploring sort of all operating models, yes at the moment, we have a model which is exclusively.

P a personnel.

Both on the AR on the Fps surround the hub all the ways in which you can look at models that are employed elsewhere.

Ultimately get you to a more competitive position. So those are the things that the next so I think there's a lot of opportunity you can say charlestown and it isn't simply about moving the volume up it is fundamentally about attacking the cost base for more of the angles that I've that I chose Scott.

Andy Inglis: Those are the things that follow next. I think there's a lot of opportunity to take costs out. It isn't simply about moving the volume up. It is fundamentally about attacking the cost base from all of the angles that I've talked about.

Charles Mead: That's helpful detail. Thank you.

That's helpful detail. Thank you.

Andy Inglis: Great. Thanks, Charles.

Great. Thanks, Joe.

Operator: Our next question is from Matthew Smith with Bank of America. Please proceed.

Our next question is from Matt Smith with Bank of America. Please proceed.

Matthew Smith: Hi there. Good morning. Good afternoon, everyone. Thanks for all those details so far. Perhaps just have one sort of broad question on CapEx. Welcome to see that coming down in the guidance for 2025. My question really is, is that CapEx envelope now well below $400 million, around $350 million? Is that a sensible CapEx envelope to think about going forward? You reference, of course, Tiberius, FID potentially next year at some stage, phase one plus on GTA. I am just wondering, are you comfortable that you could operate within that $350 million going forward, or should we expect you to perhaps need to go above that if you are to progress those projects?

Hi, there good morning, good afternoon, everyone and thanks.

Thanks for all those details so far perhaps just have one broad question on Capex and a welcome to see that coming down in the guidance for 2025. Okay. I guess my question really is is that capex envelope maths.

Well below $400 million around 350 is that a sensible capex envelope to think about going forward. She referenced cause type Paris F. A D potentially next year at some stage phase one plus on GTA. So I'm. Just wondering are you comfortable that you could operate within that 350 going forward or should we.

Expect you to perhaps need to go above that I feel to progress those projects and perhaps where I talk on the second one relates to stop is just whether you're seeing any.

Matthew Smith: Perhaps if I tack on a second one related to that, it is just whether you are seeing any momentum on that GTA phase one plus project at the moment, good alignment from the partnership, or how close and near-term is progress there? I guess is the crux of my question, please.

Momentum on that G. T. A phase one plus project at the Merrill Lynch. Good alignment from the partnership or you know, how how close to near term progress that I guess, it's the crux of my question. Please.

Andy Inglis: Okay, good. Matt, if you look at the CapEx for the next $400 to $350, it is about really sort of making every dollar count as we look at the investment going into the company and prioritizing the free cash flow. It is out of lots of opportunities right across the portfolio. But I would say the majority has been slowing down some of the longer-term projects, in particular, Tiberius. If you sort of look to the next question then, can you sustain the $350 into 2026? We have not given CapEx guidance yet. If you sort of step back and say that the primary call on capital in 2026 is the four wells that we have got committed in Jubilee, that is a primary call on CapEx. Actually, in Equatorial Guinea, not really any significant CapEx call. On GTA, I will come onto it in a minute.

Okay. Good yeah.

As you look at the Capex reduction of 400 to 30 50 is about really sort of making every dollar count as we look at the investment going into the into the company and prioritizing.

Free cash flow. So you know it is it is that a lots of.

There's lots of opportunities right across the.

Portfolio, but I'd say the majority is being slowing down some of our longer term projects in particular.

There is so as you sort of look to the next question. Then is can you sustain the.

The 350 into 26, you know, we haven't given capex guidance, yet, but if you sort of step back and say that the primary tool on capital in 2006 is the four wells that we've got committed in Jubilee.

There is yeah, that's the primary call on Capex actually and it is an actual guinea.

Not really any significant capex cool.

G C I'll come on to it in a minute. We don't believe phase one is going to be a busy a significant part of a 26 it will follow a slightly slower.

Andy Inglis: We do not believe Phase 1 is going to be a significant part of 2026. It will follow slightly slower. Therefore, probably the FID of Tiberius will come probably towards the end of the year. So when you take that and you look at the focus on, particularly in the volatile oil price environment that we have today, a forward number of around $350 can not only sustain the company, but it will grow the company, as I just talked about, through the impact of the Jubilee wells. We are not damaging that future growth profile. So I think, in summary, around $350, probably right. Yes, around $350, the company is going to continue to grow. And then you have the subsequent follow-on, which is more a 2027-2028 period of where you would see some spend on Tiberius, some spend on Phase 1 plus. Okay?

Therefore, you know probably the FY the charterers will come probably towards the end of the year. So when you take that and you look at the focus on particularly in the volatile.

Oil price environment that we have today.

A forward number of around 315, Kevin.

I stay in the company, but it will grow the company as I just talked about with through the impacts of the Jubilee wells without damaging the future growth profile. So I think you know it's.

And in summary, you know yeah around 350, probably right, yes, it's around $3 50, if the company is going to continue to grow.

And then you know you have the subsequent follow along which is more of a 27 28 period and why you would see some some spend on cyber some spend on phase one plus okay.

Andy Inglis: Then on Phase 1 plus, the most important thing to start with on that is actually the performance of the subsurface on Phase 1. We have got three wells online at the moment. They are all performing in line with expectation. So that was a little bit of a gating item amongst the partnership wanting to see the reservoir performance. We started up at the right at the end of the year, December 31. So we have got essentially more than seven months of production data and feel good about what we are seeing. So the reserves are absolutely there in terms of the ability to expand the project.

Then on phase one plus.

The most important thing to start with one that is actually you know the performance of the subsurface on phase one Oh, we got three wells on online at the moment, they're all performing in line with expectation. So that's that was a little bit of a gating item amongst the partnership wanting to see the rest.

One performance, we're now sort of you know we started up at the.

Right at the end of the 31st of December So we've got essentially more than sort of seven months of production data and feel good about what we're seeing so there was absolutely be that in terms of the ability to expand the project in terms of alignment around the partnership. It is just there was alignment around a bit.

Andy Inglis: In terms of alignment around the partnership, there is alignment around a brownfield expansion, the ability to double volume, double volume through brownfield expansion of the FPSO, which was designed to do so it could double the rate that it is doing today. The incremental investment to get it there is very small. So alignment around that. Alignment around that incremental gas will go into LNG and domestic gas. There is a call from the government for domestic gas. Equally, the rate at which they ramp up that domestic gas call is one issue that we are working. The ability to debottle the GIMI to provide additional LNG capacity is the other part of the exam question to how do I use that incremental 300 to 400 million standard cubic feet? That is the work that we are doing at the moment.

<unk> field expansion the ability to double volume double volume through brownfield expansion of the <unk>. So which is it was designed to do so like a double the rate that its doing today.

The incremental investment to get at that is is is very small so alignment around that alignment around actually that incremental gas will go into LNG and domestic gas as a call from the government for domestic gas equally the rates at which they ramp up that domestic basketball.

It is one issue that we're working and then the ability to Debottleneck. The gave me to provide additional LNG capacity is the other part of the the exam question to how do I use that incremental.

300 to 400 million standard cubic feet. So that's the work that we're doing at the moment. So I'd say that you know.

Andy Inglis: I would say that the fundamental issue is, of course, therefore around the number of wells which you need to support that incremental sort of 350. It is good that the reservoir is performing. We are getting track record now. Therefore, I believe we have the opportunity to really refine that well count. That is the sort of the work that is ongoing at the moment. There are three things. Get the well count right. How many wells do you need? When do you need them to support the incremental volume? What is the timing of that volume in terms of domestic gas? What uplift can you see from the GIMI to be able to deliver that?

The fundamental issue is of course, a basketball around the number of wells, which you need to support that incremental sort of 350.

And you know.

The reservoir is performing we're getting track record now and therefore I believe we have the opportunity I think to sort of really refine that that well count. So that's the sort of the work that's ongoing at the moment there are three things well count right now how many wells do you need when they need them.

The incremental volume, what's the timing of that volume in terms of domestic gas.

And walk.

<unk> uplift can you see from the give me to be able to deliver that.

Matthew Smith: Perfect. Well, thank you, Andy. Happy to pass it on.

Perfect well, thank you Randy.

Andy Inglis: Great. Thanks.

Alright. Thanks.

Operator: Our next question is from Bob Brackett with Bernstein Research. Please proceed.

Our next question is from Bob Brackett with Bernstein Research. Please proceed.

Andy Inglis: Hey, good morning. I have a clarification maybe, then a question. The clarification follows what Charles had alluded to: a 40% decline in the 100,000 a day Jubilee field. The way I read the release is something more like three to four wells a year to maintain flat performance, and maybe those split between producers and injectors. That gets you to something like a 15% to 20% base decline. Is that the better way to think of it?

Hey, good morning, I have a clarification, maybe and then a question. The clarification follows what Charles had alluded to a 40% decline in the 100000, a day Jubilee field the way I read the release, there's something more like three to four wells a year to maintain flat performance and maybe the split between <unk>.

Producers and injectors and that gets you to something like a 15% to 20% base decline is that a better way to think of it.

Andy Inglis: Yeah, it is, Bob. I think you've described it accurately. So if you think about the near-term program, we're going to heavily weigh producers because we believe we've got sufficient injection capacity as you ramp up from where we are today up to that sort of 90,000 barrels of oil per day. You don't really need today additional injectors. So you can sort of high grade the program to producers, but to be able to do that, you need the data, et cetera, as I talked through with Charles. When you're at that higher level, then I think the decline rate that you've talked about is the level in which you can manage the field. Therefore, you will need injectors because you've got a high level of offtake. Therefore, a mix of producers and injectors, three to four wells per year, is the right way to think about it.

Yeah. It is but yeah I think you've described it accurately sorry, if you think about either the net prior ground.

We're gonna heavily weigh producers because we believe we've got sufficient injection capacity as you ramp up from where we are today up to that sort of 90000 barrels of oil per day. So you don't really really really need today.

Additional interactive so you can sort of high grade the prior ground cheaper juices, but you have to do that they need the data et cetera, as I talk through with Charles when you're at a higher level than I think the decline rate that you've talked about is.

Is that a level at which you can.

Manage the field and therefore, you will be you will need injection objectives, because you've got a high level of off site and therefore, a mix of producers and injectors three to four vials per year is the right way to think about it.

Andy Inglis: My core question is somewhat related, which is on the license extension. You have an MOU. Can you share whether there is any change in the fiscal terms or any work program commitment, or is that still up in the air?

And then I guess my core question is.

Somewhat related which is on the license extension you have an mou.

Can you share whether there's any change in the fiscal terms or any work program commitment or is that still up in the air.

Andy Inglis: What we've said, Bob, is that we've described the intent of the MOU and the dimensions that it covers. It's a win-win, really, for both the government and ourselves. What we're doing is there is a decrease to the gas price, but there's more volume. So we've committed to move the volume up to 130 million standard cubic feet a day with a small discount to the gas price. There is an undertaking to drill up to 20 wells. Clearly, the number will depend on the emerging opportunities there that we see from the NAZ. But today, we see it as being a positive view that we're getting of the reservoir. No change to the fiscal terms. It's under the existing law. Those are the key elements.

No what we've said Ah Bob as you know we've described we intend to the Mou and the dimensions of it.

It covers its a win win ready for both the government and ourselves what we're doing is.

Is is there is a decrease of the gas price, but theres more volume.

So we've committed to move the volume up to 130 million standard cubic feet, a day with a small discount to the gas price.

There is a and undertaken to drill up to 20 wells and clearly the number will depend on the emerging opportunities.

The opportunity set that we see from the NAV, but today, we said as big a positive view that we are getting up there.

Of the reservoir no change to the fiscal terms.

That's under the existing law.

And that was all the key elements, so I think for us.

Andy Inglis: So I think for us, the most important part is that you can properly invest in the field to deliver a consistent drilling program where you're continuing to invest in the data. Because I think we can see the uplift from the NAZ having sort of not been shooting seismic for almost eight years. We need to get back to a regular program probably every three years where you're shooting NAZ. Probably no need to redo OBM, but we would come back to that given that you calibrated the velocity model. So that's the real win-win from this, is that with a greater purview, you can invest properly upfront to deliver that regular program that we talked about where the data is enabling you to drill the best wells that are available.

The most important part is that you can properly invest in the field.

Live or a consistent drilling program why are you continuing to invest in the data because I think we can see the uplift from the NAV, having sort of not been shooting seismic except for almost eight years.

To get back to a regular program probably every three years, what are you shooting that probably no need to.

To read their IBM, but we would we would come back to that given that you're calibrating. The velocity model. So that's the real win win from this is that with a great I've heard of you you can invest properly upfront to deliver that regular program that we talked about where the data is enabling you to drill the best wells that are available.

Andy Inglis: Very clear. Thanks for that.

Very clear thanks, Bob.

Andy Inglis: Great. Thanks, Bob.

Great. Thanks, Paul.

Operator: Our next question is from Alexa Petrich with Goldman Sachs. Please proceed.

Our next question is from Seth <unk> with Goldman Sachs. Please proceed.

Alexa Petrich: Hey, good morning, team, and thank you for taking our question. I wanted to ask one question on G&A costs. I think the Q3 guide came in a little higher than our expectations. We just want to get your sense of what's in those costs, how do we think about Q4, and then any sense of how we should think about it on a per BOE basis for 2026. Thanks.

Hey, good morning, Tina and thank you for taking our question wanted to ask one question on GTA.

Cta costs I think the three key guide came in a little higher than our expectations. Just wanted to get your sense of what's in those Pos how do we think about the <unk> and then any sense of how we should think about it on a per BOE basis for me. Thanks.

Andy Inglis: Yeah, Neal, do you want to pick that up?

Yes, Neil if you want to pick that up.

Neal Shah: Yeah, sure. Hi, Alexa. So the three components in the GTA cost number are the SLNG tool, the FPSO leads in the field, just a regular field OpEx.

Hi.

The three components energy can't cost number.

S LNG tall and U S P.

P S at least in the field.

A regular scale opex and so yes, LNG towards a bit higher in Q2, given we had some bonus payments.

Operator: SG&A and G&A was a bit higher in Q2, given we had some bonus payments that were payable to the goal are. That's really normalized on a per-MCF basis. It's a little over, you know, $2 an M on a recurring basis. So, it's a volume-based calculation, and so it should be relatively steady both into the back half of this year and into next year. The FPSO is about $15 million a quarter in terms of operating costs of that lease. Again, I think, you know, we're saying, you know, we're working on, you know, we said we're working on refinancing that in the second half of this year. That's on track. So, you'll see the cost come through, the cost reduction come through, when that's complete. Again, you know, that's about a little over a quarter of the operating costs.

That's really normalize on a per Mcf basis, it's a little over two.

On a recurring basis volume based calculation.

And it should be relatively steady.

The back half of this year and into next year.

U S. P. S that was about $15 million a corner.

Okay.

Operating costs.

Please.

And again I think we're saying yeah, we're working on.

We're working on refinancing that in the second half of this year that's on track.

Unit cost come through.

The cost reduction commentary.

That's complete.

And again, yeah, that's about it.

A little over.

A corner out of the operating costs.

Operator: The third one, you know, it's sort of field OpEx, and that sort of will be flat, you know, closer to Q3 to Q2, as we sort of still rationalize some of the startup and commissioning costs. Then you'll see a drop-off in that in terms of the fourth quarter that, again, we anticipate we can hold into 2025 or into 2026. We are also looking at the alternative models. So, again, I think on a per-unit basis, you'll continue to see both sides of the equation improve, both in terms of increasing volume and costs coming down.

And then the third one.

Does that answer I feel opex and that sort of it will be flat.

Clustered <unk> Q as we sort of still rationalizing any start.

Startup and commissioning costs, and then you'll see a drop off in that in terms of the.

The fourth quarter that maintenance.

They can hold into 'twenty five 'twenty six and then I'll.

So looking at the alternative models and so again I think on a per unit basis.

<unk> seen both sides of the equation both in terms of increasing volume.

And cost coming down.

Yeah.

Conference Specialist: Okay. That's helpful. Just wanted to ask, we recognize right now we're in a period of GTA startup costs, production is ramping. But as we think about getting to a point where we have more normalized volumes and costs come off, any thoughts about how we should think about a normalized free cash flow for the business?

Okay. That's helpful. And then just wanted to ask we recognize right now we're in a period of Teekay startup cost production is ramping but as we think about getting to a point, where we have more normalized volumes and costs come off any thoughts about how we should think about a normalized free cash flow for the business.

Operator: Yeah. Again, I would say our view on that sort of hasn't changed, which is bring the break-even for the business down to the $50 to $55 per barrel type range. Then again, the sensitivity, depending on what oil price they're using, is about $100 million of free cash flow for every $5 we're selling above that. Again, I think that's, again, it doesn't exactly work out quarterly just because of the timing of listings and so on. But again, I think it's that rate is what we're targeting across the business on a consistent basis.

Yeah.

Our view on that hasn't changed.

And bring the breakeven.

Down to turn to.

In a $55 per barrel type range, and then again the sensitivity depending on what oil price or anything is about $100 million of free cash flow for every $5.

Our selling and pumps that are saying and I think that day.

That's exactly.

Exactly work out quarterly just because of the timing of a lot of things and so on but again I think it's sort of that rate is what were talking sort of across identified consistent.

Pages.

Conference Specialist: Okay. That's helpful. I'll turn it over. Thank you all.

Okay. That's helpful I'll turn it over thank you all.

Andy Inglis: All right. Thanks, Alexa.

Alright, Thanks, a lot.

Jamie Buckland: Our next question is from Mark Wilson with Jefferies. Please proceed.

Our next question is from Mark Wilson with Jefferies. Please proceed.

Jamie Buckland: Thanks, Jens. A couple of questions, please. First, on GTA, thinking ahead to phase one plus, is the most important thing we should be looking for a gas sales agreement either with Senegal or Mauritania or with a third party? That is the first question. On Jubilee, there is a lot of commentary and detail in the presentation and some hindsight views, I would say, as well. The question I have going forward is, particularly with this new seismic data and the processing of that and the work that needs to be done on the longer term, should you be operator of that field, and is that something we are looking for? Thank you.

Thanks Vince.

A couple of questions. Please first on GTA. Thank you.

Going ahead to phase one plus it's the most important thing we should be looking for a gas sales agreement either way in Senegal, and Mauritania or with third party. That's first question and then on do you believe a lot of commentary and detail in the presentation and some hindsight.

Views I would say as well.

The question I have going forward, particularly with this new seismic data and are in the processing of that in the world and it needs to be done on the on the longer term.

Should you be operator of that field and is not something we're looking for.

Andy Inglis: Right. Thank you. Thank you, Mark. On the first question, absolutely. I think I was clear when we talked about it earlier that what we are looking to do is work with a partnership. Clearly, the partnership involves the government to find the right blend now of domestic gas versus increased LNG sales. So yes, absolutely. Part of that whole optimization is around what level of gas can they take? What is the expected ramp-up, and therefore, what would a gas sales contract look like? So absolutely, you put it in terms of the Pacific. But in terms of an output, we would need is certainly, as we move towards FID of that, we would need clarity around what that gas sales would look like.

Alright. Thank you. Thank you Mark Yeah, how on.

Yeah on the first question absolutely.

I think I was clear when we talked about earlier.

What where I'm looking to do is work with the partnership and to create a partnership involves the.

The government to find the right blend now of.

Domestic gas this is increased.

LNG sales, yeah, and so yes, absolutely part of that that whole Ah Ah opt.

Optimization is around what level of gas can they take.

What are the what's the expected ramp up and therefore, what would a gas sales contract look like so absolutely you know you put it in terms of the specific but in terms of an output. We would need is certainly as we move towards a F idea that we would need clarity around what like ourselves would would look like.

Andy Inglis: But again, the government is clear about the need, and actually, the need in the country is absolutely clear. A growing economy needs to be able to leverage gas, displace heavier, displace higher-cost heavy fuel oil. Therefore, there is a real economic gain for all parties here by being able to do that. So I do not believe that is a barrier, but it does absolutely need to be addressed. In terms of your second question, look, we work very closely with Tullow, as you know. I think it is a good partnership. I think we each have our individual skills. Clearly, being based, in particular, actually being based in the Gulf of America, I think the view of being able to leverage seismic, the processing, the acquisition techniques, and so on has been something that we have been able to bring to the partnership.

Yeah, but again the government is clear about the need and the need in the country is absolutely try a growing economy needs to be able to leverage gas displace heavy displace higher cost heavy fuel oil and therefore, there is a real economic gain for all parties here by being able to do that so I didn't.

I believe that is a barrier, but it does absolutely need to be.

It can be addressed.

In terms of your second question.

Look we work very closely with Tel Aviv is as you know I think it's a good partnership I think we each have our individual skills clearly I think being based.

In particular as you're being based in the Gulf of America, I think that you are being able to leverage size make the processing the acquisition techniques and so on has been something that we've been able to bring to the partnership and I think people are working very well with the amendment to leverage their skills and our skills in this domain.

Andy Inglis: I think we are working really well with Tullow at the moment to leverage their skills and our skills in this domain to make a difference. So there is no difference between where the companies stand on that. We clearly have the rig locked in. We have six wells in front of us. We are aligned around the well choices and what it is going to take to drive the field forward. So I think that, in response to your question, is the most important thing that we are aligned. Actually, Kosmos Energy Ltd. is bringing something to the party, and clearly, so is Tullow.

To make a difference so there's no difference between why the company stand on that.

We clearly have the rig long said and we have six wells in front of US we're aligned around the world choices and what it's going to take to drive.

The field forward. So I think that in response to your question is the most important thing that where we're aligned than I've actually.

Cosmos is bringing something to the policy.

So it's a it's taylor.

Jamie Buckland: Very good. Thank you for your attention.

Very good. Thank you for all countries right. Thank you Mark.

Andy Inglis: Great. Thank you, Mark.

Jamie Buckland: Our next question is from Stella Cridge with Barclays. Please proceed.

Our next question is from Stella trades with Barclays. Please proceed.

Andy Inglis: Hi there. Afternoon everyone. Many thanks for all of the updates. I was wondering if I could ask on the debt side. You mentioned that you are progressing additional financing options. I just wondered if you could talk about the different options that might be available to you, how far out on the curve that you are thinking about in terms of maturities. That would be great. In the RBL, of course, you do have some requirements to address debt a reasonable amount ahead of time. I just wonder if you could talk about how confident you are in meeting some of those requirements of the lending. That would be great. Thanks.

Hi, good afternoon, everyone.

Thanks for all the updates and I was wondering if I could ask I'll ask.

As you mentioned they are requesting additional financing options I just wanted to see if you could talk about the different options that might be available to you alright. Thank you.

Thinking about in terms of maturities that would be great and.

Yeah, and the RPI and of course, you do have some requirements to address that and our recent dolomite ahead of time just wondering if you could talk about how confident you are and we take some of those requirements at the Olympics that was good.

Operator: Yeah. Hi, Stella. I will take that. Just on the further out maturities, again, I think, you know, when we set up the maturity schedule in the past, the goal was to leave a few maturities out there and then repay them with cash flow generated from the business. Again, recognizing that, you know, the goal from our perspective is to not just reduce leverage, but to reduce the amount of absolute debt. Therefore, paying off the bonds with cash flow that is generated, you know, makes sense. I think inherently that continues to be part of the plan. The big variable there is around oil prices. With the wobble that we had, the new oil price, we thought it was prudent to take off the 2026 maturity ahead of time with the refinancing.

Yeah, Hi, Todd I'll take that just on the further out in the charity, they're getting I think you know when we set up the maturity schedule in the past the volatility to him the charities out there and then retain them with cash flow generated from the business and recognizing that you had nicole from from our perspective is true not just for his lover.

September none of that fleet, and therefore paying off the bonds in cash flow. That's generated makes sense since yet and I think inherently that continues to be part of the plan and.

A big variable there.

It was around oil prices.

Yeah with the level that we had sort of a hell of a pricing premium Terry you can take off the 26 maturity ahead of time with the refinancing.

Operator: That gives us a bit of space, combined with the other proactive measures we have taken on the financing side, to clear a runway. In that space of time, again, continue to work in a manner to maximize cash flow for the business so that we can continue reducing debt. Alongside that, we will continue to look at other alternative attractive sources of capital, to see if there is a cost-to-capital advantage to be gained in terms of addressing the 2027 and 2028 maturities as well. You know, they are trading at a discount. If we can raise low-cost finance, security against our assets, there is a cost, there is capital, there is a return to be earned there. The plan is to finish the Gulf facility here, this quarter, and then continue to evaluate those options. Part of that will depend on where things trade.

Yeah Seth thanks.

Combined with the other proactive measures we've taken all the financings.

Declare a sort of a runway.

And yes.

Thanks for the time again continue to work and they work in a manner to maximize cash flow from the business that we can continue reducing debt.

Alongside that we will continue to look at yeah, sorry practice.

Are there alternative attractive sources of capital.

Contains bears the cost of capital advantage to be gained in Germany.

27, and 28 maturities as well.

And they're trading at a discount we can raise low cost financing secured.

Security against our assets, there's a cost.

Capital.

Turning to be armed to there and so.

The plan is to finish the golf.

Facility here this quarter and then continue to evaluate those options and part of that will depend on where things trade.

Operator: If they continue to trade at a discount, then there becomes an opportunity for us to accelerate the net debt reduction, through the early retirement of those bonds. Again, I think it will be an ongoing process of evaluating that. To your second question, just around the RBL, again, we went through the tests comfortably in March. Again, we use an RBL price deck to show, both from existing liquidity and cash generated between now and the maturities that we have sufficient sources to cover the uses. Again, I think, you know, the oil prices move up and down, but fundamentally, we are well still above our in-base, price sets. I feel good about the generation, future cash generation, from the ability.

Continue to trade at a discount.

And there's an opportunity for us to.

To accelerate the net debt reduction.

And the early retirement of old bonds.

Again, I think it'll be an ongoing process.

Can you second question just around the larvae all at.

What are the tests comfortably and sort of March again, we're using a price deck to show both from existing liquidity and cash generated between now and the maturities that we have sufficient sources to come in he says.

Again, I think again the whole class.

It moved up and down with it you know fundamentally we're well Phil about borrowing base.

Process and feel good about some of the generation.

On your cash generation.

And the ability, especially combined with difficult.

Operator: Especially combined with the facility that we put in the Gulf, we will have, my expectations will continue to have, a decent coverage as we pass through those tests on a regular basis.

Oh yeah.

We'll have.

Yeah, My expectation will continue have decent coverage.

As we pass through those tests on a regular basis.

Conference Specialist: Good for many. Thanks for that.

Many thanks for that.

Andy Inglis: All right. Thanks, Stella.

Alright, Thanks Paolo.

Jamie Buckland: Our next question is a follow-up from Bob Brackett with Bernstein Research. Please proceed.

Our next question is a follow up from Bob Brackett with Bernstein Research. Please proceed.

Neal Shah: Great. Thanks for taking the question. Again, this has to do with GTA. You mentioned a domestic gas component. Can you remind me, is that a pipe to St. Louis, or is that some LNG into re-gas and, say, the car or something? What's envisioned there?

Great. Thanks for taking the question again this has to do with GTA and you mentioned, Jim domestic gas component.

Mind me is that a pipe to St. Louis or is that some.

LNG into re gas and say, it's a car or something what what's envisioned to there.

No I think look.

Andy Inglis: No. I think, look, I think the primary source would be actually pipeline gas. So this would be a pipe gas solution rather than LNG to Dhaka. Although, there is an LNG re-gas facility in Dhaka. So you could add incremental volume that way. But I think it would be, what we are looking at today, Bob Brackett, is a more permanent solution.

I think the primary source would be actually a sort of pipeline gas. Yeah. So this would be a a pipe gasoline shouldn't rather than LNG to your doctor. Although you know there is a an LNG regasification, let's see in and back off. So you could you could add incremental volume that way, but I think it would be.

What we're looking at today, Bob is a more a more permanent solution.

Neal Shah: Okay, very clear. Thanks for that.

Okay. Great question, Thanks for that.

Andy Inglis: Great. Thanks.

Alright. Thanks.

Yeah.

Jamie Buckland: Since there are no further questions at this time, I would like to bring the call to a close. Thanks to everyone for joining today. You may disconnect your lines at this time, and thank you for your participation.

Since there are no further questions at this time I would like to bring the call to a close thanks to everyone for joining today you may disconnect. Your lines at this time and thank you for your participation.

Right.

[music].

Andy Inglis: Great.