Kosmos Energy Ltd.

Good day, everyone. Welcome to Cosmos Energy's second quarter 2020 conference call. Just 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 Cosmos Energy.

Thank you, Operator. And thanks to everyone for joining us today. This morning, we issued our second quarter 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 that material are Andy Ingalls, Chairman and CEO, and Neil 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 UK 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.

Thanks, Jamie, and good morning and good afternoon to everyone. I'll start today's presentation with the highlights for the quarter before passing over to Neil, who will talk through the financials and the balance sheets. I'll then finish with a look forward to the second half of the year and into 2021. Turning the slide to the highlights for the quarter. Cosmos delivered strong operational performance in a challenging quarter for the sector, which saw record low oil prices and unprecedented volatility. We delivered production of around 60,000 barrels oil equivalent per day, which is in line with the guidance we gave at the first quarter and reflects the May shut-ins in the Gulf of Mexico, which reduced overall company production by around 6,000 barrels oil equivalent per day in the quarter. We remain on track to deliver the cost reduction set out early in the year, with reductions across OPEX per barrel and G&A of around 5% to 15% for the first quarter. We project an increased impact in the third and fourth quarters as additional OPEX and G&A reductions are reflected and CapEx reduces in line with a decrease in activity set. Importantly, these cost savings are not expected to have a long-term impact to the portfolio or our operations, and they will help position Cosmos as a leaner company that can perform strongly as the sector recovers over time. In addition to these sustainable cost savings, we also took steps to ensure the balance sheet remains in a solid position. During the quarter, we increased our liquidity position through a prepayment agreement with Trafigura, which Neil will talk about in more detail shortly. We ended June with around $600 million of liquidity. Importantly, at current oil prices, we've reached a cash flow inflection point. meaning we expect to generate free cash flow to the second half of the year and into 2021, which we expect to use to reduce our year-end net debt and enhance liquidity. As we look to the future, we continue to make good progress on the greater torture development, despite COVID-19 mitigation measures implemented in Mauritania and Senegal. Phase one of the project is now around 40% complete, with an increase of 7% in the quarter, with activity ramping up in key areas. On exploration, we're high-grading our prospects for 2021 with a combination of proven basin infrastructure-led targets and self-funded basin opening tests expected in 2021. Turning to slide three. As I mentioned on the previous slide, COSMOS delivered strong operational performance in the second quarter with net production of 60,000 barrels of oil equivalent per day in line with previous guidance. In Ghana, net production of 29,000 barrels of oil per day was at the high end of our guidance. Jubilee continues to perform well with high reliability, delivering gross production of around 90,000 barrels of oil per day within the quarter. This was achieved through consistent water injection and gas offtake. More recently, we've continued to make further progress with record water injection rates since the field was commissioned, coupled with increased gas offtake, supporting our objective of lowering the field-wide gas-oil ratio. We remain encouraged by the enhanced collaboration with the operator and alignment of the partnership to focus on consistent delivery and improving reliability. A 10 growth production of around 50,000 barrels of oil per day was in line with guidance. The NT09, while expected online shortly, is expected to increase 10 production to the second half of the year. In Extraordinary Guinea, net production of 11,000 barrels of oil per day was in line with guidance. In the Gulf of Mexico, net production was around 20,000 barrels of oil equivalent per day in the quarter past. which is in line with our guidance reflecting the May shut-ins that we flagged in our first quarter results. In addition, the Tornado 4 well has completed drilling, and we are now completing the well. We expect the well to be online around the beginning of the fourth quarter. Late in July, we experienced a hydrate in the gas export line of the Delta House platform, resulting in a temporary shut-in of the facilities. The operator is currently working to remove the hydrate blockage, which we expect to occur later this month. Full year guidance for the Gulf of Mexico remains at the low end of the guidance range. Turning to slide four, I want to talk briefly about our COVID-19 response. Since the pandemic began, we've focused on guiding the company through a challenging period. However, we haven't lost sight of our responsibility to the countries and local communities where we operate. This slide shows a few examples of how we're doing our part. Working with governments and local communities, we've procured and donated medical supplies and other vital equipment to assist COVID-19 response efforts. While the slide features four countries in West Africa, We have been involved in similar projects across our entire portfolio. This important work reflects our commitment to be a force for good. It's consistent on how we have supported communities in the past, particularly during the 2014 Ebola outbreak. With that, I'll now hand over to Neil, who will take you through the financials for the quarter in more detail.