Investor Presentaiton
Equatorial Guinea: A Good Deal Gets Better
KOSMOS
ENERGY.
Acquisition of high-margin production at Ceiba/Okume and capture of exploration blocks provides
multiple avenues to create value with rapid payback...already exceeding expectations
Strategic Rationale
-
-
Diversifies existing production base
Accesses proven oil basin
Highly-economic tie-back opportunities provide potential
to shorten cycle times for production growth
Highly accretive deal with accelerated payback
Purchased at < 2x EBITDAX vs. trading multiple of ~7x
-
-
High-margin barrels (~$40/bbl at $60/bbl Brent in 2018)
create significant free cash flow
☐
< 2 year payback expected
Innovative partnership
Leverages Kosmos exploration/subsurface capabilities
with Trident's production/operating expertise
43
37
2018E
Gross
Production
(Mbopd)
@
Acquisition
Current
-$60
~$55
Oil Price 1
(Brent, $/bbl)
+
@ Acquisition
Current
+
~3
<2
Payback²
(Years)
1. Source: Bloomberg, price is 2018 strip at transaction announcement.
2. Payback of initial $231MM net closing consideration; approximate 3 year payback based on $55 Brent, less than 2 year current payback based on $60 Brent
3. Includes opex, taxes, and capex
@Acquisition Current
Value Creation
9View entire presentation