Kosmos Energy Ltd.

Good day, everyone. Welcome to Cosmos Energy's second quarter 2023 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 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 the materials 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'll turn the call over to Andy.

Thanks, Jamie, and good morning and afternoon to everyone. Thank you for joining us today for our second quarter results call. I'm going to run through the progress we've made during the quarter before handing over to Neil to take you through the financials. We'll then open the call for questions. Starting on slide three, last year we set out our strategy to develop our world-class asset base with a goal to grow production by around 50% from a 2022 baseline. I'm pleased to say in the last few weeks we've taken the first step to achieve that growth target with the startup of the Jubilee Southeast project in Ghana. This material step-up in Ghana production is contributing around half of our stated growth target, with additional growth expected to come from the Tortue LNG project in Mauritania and Senegal and the Winterfell project in the Gulf of Mexico. I'll talk about all these developments in more detail shortly. As we continue to deliver these growth projects, we expect development capex to fall, resulting in a lower capital program over the coming years. With production rising towards our growth target and CapEx expected to fall, we're nearing the free cash flow inflection point where we expect to generate significant free cash flow, particularly at current commodity prices. As cash flow grows, we'll remain disciplined in our allocation of capital towards three priority areas. Further financial resilience through debt pay down, funding compelling growth opportunities, and potential shareholder returns. So in summary, we're making good progress on delivery of our strategy with a lot more to come in the next six to nine months. Turning to slide four, which looks at operations across our three production hubs during the quarter and highlights the upcoming activity set. Net production of around 58,000 barrels of oil equivalent per day was consistent with our guidance for the quarter. Our producing assets across the business performed well. However, the quarter was impacted by a short delay in the startup of Jubilee Southeast. In Ghana, Jubilee gross oil production averaged around 73,000 barrels per day, flat with the first quarter. In May, the first Jubilee well this year was completed, starting the growth in production. The first two Jubilee Southeast producer wells came online mid-July, lifting gross production per jubilee to around 100,000 barrels of oil per day. More on that on the following slide. At 10, gross oil production averaged around 20,000 barrels per day in line with the first quarter. During the second quarter, the operator submitted to the Ministry of Energy the amended draft plan of development for a high-grade activity set of additional wells at 10. This activity set is expected to maintain 10 oil production around current levels, but increase gas into the domestic market through a combined gas sales agreement, or GSA. The GSA covers all future gas sales from both the Jubilee and 10 fields. Discussions on the GSA and the amended 10 plan of development with the Ministry continue to make good progress. Last month, we signed a temporary agreement for Jubilee gas delivery through September 2023 at $2.90 per mm BTU while we conclude the final agreement. Moving to Extraord Guinea, gross oil production averaged just over 24,000 barrels per day during the quarter. In mid-July, the 500th cargo listing from the field took place, a major achievement for the partnership and the government of Equatorial Guinea. The three-well infill drilling campaign is expected to begin in the fourth quarter, with the first well scheduled on Rhine around the end of the first quarter next year. Ahead of that, there are two planned workovers, which should help support production rates through the end of the year and into 2024. The King Deep infrastructure-led exploration well is planned to start following the completion of the infill drilling campaign. Lastly, in the Gulf of Mexico, net production was approximately 16,000 barrels of oil equivalent per day in line with guidance. On Kodiak, performance has been better than expected this year. As we've steadily increased drawdown, production has increased from the ST3 well, allowing us to capture a good portion of what we expected from the planned workover. As a result, we've optimized the timing of the workover into mid-2024, to allow us to add a third producing zone and capture more upside from the planned well intervention. The odd job subsea pump project continues to make good progress and is expected online in mid 2024 as planned. I'll talk more about Winterfell and Tiberias on the following slide, with activity ramping up in the Gulf of Mexico as we move into the second half of this year. Turning to slide five, As I mentioned earlier, last month we announced the successful startup of the Jubilee Southeast project in Ghana. This is a major milestone for the partners, the government and the people of Ghana and starts the next chapter of the prolific Jubilee field. Shortly after the initial announcement, a second JSE well started up, taking gross Jubilee production to around 100,000 barrels of oil per day. Starting later this quarter, three more wells, one producer and two water injectors, are expected online at Jubilee, which should further enhance production in the fourth quarter. The second water injection is a well that has been accelerated from 2024 to late 2023, given the efficiency of the drilling program in Ghana this year. This injector will add pressure support to Jubilee Southeast as we move into 2024. The chart on the right shows our updated guidance of the ramp-up at Jubilee this year. As mentioned, Jubilee Southeast did start up around a month later than anticipated, and this has had a slight impact on 2Q and 3Q production, resulting in a cargo deferral from 3Q to 4Q and from 4Q to early 2024. Forecast production in the fourth quarter is still expected to be around 50% higher than the first half of the year. with the impact of the new wells coming online. It's an exciting time for the partnership with production at Jubilee, now at levels not seen for several years. Turning to slide six, which focuses on our activity set in the Gulf of Mexico, which increases significantly this quarter. Last month, we started drilling the Tiberias infrastructure-led exploration well, where Cosmos is the operator and has a 33% interest. Tiberias is a four-way structural trap in the outboard Wilcox trend, targeting an estimated gross resource of around 135 million barrels of oil equivalent. The well was spread in early July and is expected to take around two months to hit target depth, with results expected in September. Later this month, we expect to commence drilling the development wells on Winterfell, the second of our three key growth projects. The initial drilling campaign is for three of the five wells planned in the first phase, targeting gross resource of around 100 million barrels of oil equivalent. There is an upside case around 200 million barrels of oil equivalent across the greater Winterfell area. The project remains on track to start production at the end of the first quarter of 2024. Turning to slide seven. This is a slide we've used over the last couple of quarters to provide a status update of the key work streams on the Tortue LNG project. As we flagged last quarter, the critical path to first gas on phase one of the project is through the completion of the subsea work scope. Due to a delay in the subsea work stream, first gas is now targeted in the first quarter of 2024. This was communicated last week by the operator in their 2Q results, and is the main driver of our lower CAPEX in the second quarter. We are working closely with the operator to address the subsea delay and optimize the other work streams to fit with this 1Q first gas timetable. On the FPSO arrival of the vessel is now scheduled for the fourth quarter as we continue pre-commissioning work in better resource shipyards and line delivery with a revised timeline for the subsea work scope. On the hub terminal, construction is now complete with handover to operations currently ongoing. And finally, on the FLNG, construction and mechanical completion of finishing and pre-commissioning work is underway. Sail away of the vessel is expected around the end of the third quarter with arrival and hookup planned around year end. I'll now hand over to Neil to take you through the financials.