Kosmos Energy Ltd. (KOS) Q4 2024 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day everyone and welcome to Kosmos Energy's Fourth Quarter and Full Year 2024 Conference Call. As a reminder, today's call is being recorded. At this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Kosmos Energy. Please go ahead.

Jamie Buckland

Thank you, operator, and thanks to everyone for joining us today. This morning, we issued our fourth quarter and full year 2024 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.

Andy Inglis

Thanks Jamie and good morning and afternoon to everyone. Thank you for joining us today for our fourth quarter and full year results call. I'd like to begin today's call by talking about what differentiates Kosmos' strategy and the ability of the portfolio to deliver sustainable cash generation.

We'll then provide an update on the operational and financial progress we've made in 2024 before discussing the outlook for 2025 and how we will focus on cash generation through maximizing revenue and rigorous cost management.

Starting on slide 3. Kosmos has a unique portfolio for a company of our size with a diverse set of world scale oil and gas assets. The quality of the portfolio can be seen in the longevity of the asset base with a growing 2P reserve life of more than 20 years.

Our oil assets are characterized by low operating costs and high cash margins while our gas assets are positioned to deliver growth in revenue with increasing margins targeting long term sustainable cash flow, particularly as gas and LNG continue to grow in the global energy mix.

2025 is an important year for Kosmos with increased production and reduced capital expected to drive an attractive free cash flow yield which can be seen on the chart on the right-hand side of the slide. With Kosmos plotted against our U.S. and international peers as well as the majors.