Dallas – COSMOS ENERGY LIMITED . (NYSE:) reported earnings beat for the first quarter of 2024, with adjusted earnings per share (EPS) coming in at $0.21, beating analysts' expectations by $0.04.
However, the company's revenue of $419.1 million was below the consensus estimate of $422.68 million. Despite the slight shortfall in revenue, Kosmos Energy shares rose 1.8% as the market responded favorably to higher earnings.
The first quarter performance was a significant improvement compared to the same period last year, with net production seeing growth of approximately 13% year-on-year. This increase was largely attributable to higher production in Ghana due to the start-up of the Jubilee South East project and the ongoing drilling campaign.
Andrew J. Inglis, Chairman and CEO of Kosmos Energy, commented on the quarter's accomplishments, noting the operational and financial momentum carried over from 2023. The company is on track to achieve 50% production growth from the second half of 2022 through the end of General. 2024, with significant progress achieved on the Tortue project and drilling secured for an upcoming campaign in Equatorial Guinea.
Kosmos Energy's financial flexibility was enhanced by the successful offering of convertible notes and the refinancing of its Reserve Based Lending (RBL) facility, extending its maturity to the end of 2029. The company ended the first quarter with a long-term total of approximately $2.7 billion. There is about $2.4 billion in net debt, with about $954 million in liquidity.
Looking ahead, Kosmos Energy's full-year capex is expected to be weighted heavily in the first half of the year as the drilling program in Ghana concludes and projects such as Winterfell and Tortue Phase 1 progress towards start-up. The company's strategy includes a year full of incentives across its business units in Ghana, Equatorial Guinea, the US Gulf of Mexico, Mauritania and Senegal.
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