Kosmos Energy Ltd (KOS) Reports Q3 2023 Earnings: Net Income of $85 Million, Revenue of $526 Million
Kosmos Energy Ltd (NYSE:KOS) reported a net income of $85 million for Q3 2023, with an adjusted net income of $126 million.
The company's revenues for the quarter reached $526 million, with a net production of approximately 68,200 barrels of oil equivalent per day (boepd).
Kosmos Energy also reported capital expenditures of $193 million for the quarter.
The company ended the quarter with total long-term debt of approximately $2.4 billion and net debt of approximately $2.3 billion.
On November 6, 2023, Kosmos Energy Ltd (NYSE:KOS) announced its financial and operating results for the third quarter of 2023. The company reported a net income of $85 million, or $0.18 per diluted share. After adjusting for certain items impacting the comparability of results, the adjusted net income was $126 million, or $0.26 per diluted share.
Financial Highlights
Kosmos Energy's revenues for the quarter were $526 million, or $78.24 per boe, excluding the impact of derivative cash settlements. The company's production expense was $139 million, or $20.63 per boe, and capital expenditures were $193 million.
At the end of Q3 2023, Kosmos Energy had total long-term debt of approximately $2.4 billion and net debt of approximately $2.3 billion. The company's available liquidity was approximately $0.6 billion. The net cash provided by operating activities was approximately $249 million, and free cash flow was approximately $54 million, in line with expectations.
Operational Highlights
The company's net production for the quarter was approximately 68,200 boepd, a 17% increase from the second quarter. The company also reported the start-up of the Jubilee South East development offshore Ghana and the Tiberius infrastructure-led exploration (ILX) oil discovery offshore U.S. Gulf of Mexico.
Commenting on the company's performance, Chairman and CEO Andrew G. Inglis said,
Kosmos continues to create value for its stakeholders through the consistent delivery of its strategy to grow production, advance its advantaged oil and LNG projects, and add resource through infrastructure-led exploration."
Future Outlook
Looking ahead, Kosmos Energy plans to balance the pace and working interest of future projects to manage growth and generate material free cash flow. The company also plans to continue its strategy of growing production, advancing its oil and LNG projects, and adding resources through infrastructure-led exploration.
Financial Tables
The company's total revenues and other income for the quarter were $526,546,000, with total costs and expenses of $389,005,000. This resulted in an income before income taxes of $137,541,000. After accounting for income tax expenses of $52,356,000, the company reported a net income of $85,185,000.
As of September 30, 2023, Kosmos Energy had total assets of $4,969,401,000, with total liabilities of $3,969,732,000 and total stockholders' equity of $999,669,000.
The company's net cash provided by operating activities for the quarter was $249,431,000, with net cash used in investing activities of $208,384,000 and net cash provided by financing activities of $11,966,000.
Explore the complete 8-K earnings release (here) from Kosmos Energy Ltd for further details.
This article first appeared on GuruFocus.
