Kosmos Energy Ltd.

Good day, everyone. Welcome to Cosmos Energy's first quarter 2025 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 first quarter 2025 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. And at this time, I will turn the call over to Andy.

Thanks, Jamie, and good morning and afternoon to everyone. Thank you for joining us today for our first quarter results call. I'll start off the call by reinforcing the messages I gave in February with our full year results. which apply even more so in today's volatile market. Cosmos continues to focus on prioritizing cash generation, rigorous cost control, and enhancing the financial resilience of the company. I'll then provide an update on the operational projects we've made so far this year and the outlook for the remainder of 2025. Neil will then walk you through the quarter's results and the balance sheet before I wrap up with closing remarks. We'll then open up the call for Q&A. Starting on slide three, while we're seeing heightened volatility in our sector and across global markets more broadly, our priorities remain unchanged. I talked in detail in February about prioritizing cash generation, and that continues to be our primary focus. And we deliver that through a combination of increasing production and lowering costs. Starting with production. we were pleased to announce the export of the first cargo from the GTA project last month. All four trains on the FLNG vessel are now operational, with daily production ramping up towards the contracted sales volume, equivalent to 2.45 million tons of LNG per annum, with potential to go higher. I'll talk more about that on the following slide. In Ghana, we expect the drilling rig to arrive late this month with two Jubilee wells planned in 2025, which should help deliver production growth in the second half of the year. The partnership also plans to drill an additional four Jubilee wells in 2026, which should further enhance production with low-cost, high-margin barrels, even in a lower oil price environment. In the Gulf of America, we're currently drilling the fourth winterfowl well, which is expected online in the third quarter. On costs, I talked in February about a material reduction in costs across both capital expenditures and overhead, with the ability to exercise greater control over our CapEx going forward. We expect CapEx to fall by over 50% year-on-year, with evidence of this in 1Q, with CapEx of $86 million $200 million lower than the same quarter last year. We also committed to reduce our annual overhead by $25 million by year-end and have already made significant progress against that target through April. And finally, as we navigate a volatile market backdrop, the important actions taken last year to enhance the financial resilience of the company have put us in good shape for the year ahead. In 2024, we raised new capital, refinanced and upsized our reserve-based lending facility, which pushed out our average maturity lend. We continue to protect our balance sheet with a rolling hedging program and have minimal near-term maturities and ample liquidity. Our portfolio is also made up of assets, particularly on the oil side, with low operating costs and therefore low break-evens. Neil will go into more detail on the actions we're taking later in the presentation, but the activities we have completed leave us the flexibility to maintain the resilience of our balance sheet through the current volatility. So in summary, we're focused on keeping the business in good shape through a period of market uncertainty with growing production, material cost reduction, and an unchanged priority on cash delivery to pay down debt. Turning to slide four, We achieved several key milestones in Mauritania and Senegal in recent months, with first gas and LNG production, the GTA project, followed by first LNG cargo. With the export of this first cargo, Mauritania and Senegal have become the latest LNG exporting nations, and COSMOS is proud to become an LNG producer. On the SL&G vessel, all four liquefaction trains are now operational, with production ramping up towards a contracted daily rate equivalent of 2.45 million tonnes per annum. The second cargo lifting is underway, and our full-year gross cargo guidance of 20 to 25 cargo remains unchanged. We also expect the first condensate cargo to be exported in the second half of the year. On costs, we're targeting material reductions in both operating costs and our FPSO lease costs. We expect routine operating costs to reduce near-term as the commissioning work naturally comes to an end. In addition, we're working with BP on the FPSO refinancing, which should further reduce OPEX, targeting completion the second half of the year. Over the medium to longer term, the operator is investigating alternative operating models that could materially reduce costs and enhance the overall returns of the project. We look forward to working with them on this initiative. We see future upside potential in GTA with increased production through the existing facilities, and then a potentially material step-up in production through some low-cost modifications to those facilities. The FOMG vessel has a nameplate capacity of 2.7 million tons per annum, and the liquefaction trains are being tested at around 10% above this equivalent nameplate capacity. Next, we'll test the common systems at the maximum rate to get a better picture of where we can safely operate the facility above the contracted sales volume. We're also working with the operator and goal are to explore potential upgrades to the LNG vessel, which could help increase LNG production capacity to beyond 3 million tons per annum. Initial work suggests this can be achieved with relatively modest upgrades. This would likely be done as part of phase one plus, where work has begun with the project partners to fully leverage the existing infrastructure. Phase one plus is a low-cost brownfield expansion to potentially double future gas sales with minor modifications to the FPSO. In addition to the upgrades to the FLNG vessel, and the provision of additional domestic gas. The performance of the GTA reservoir based on data from the initial production has been positive, which creates the potential to reduce future well counts and capex. We'll continue to update the market as we make further progress. Turning to slide five, which looks at operations in Ghana. It's been a busy start to the year in Ghana, where we've completed two major pieces of Firstly, the partnership shot a new 40 seismic survey, the first over the field in around eight years, and that data is now being processed using state-of-the-art algorithms. We believe the enhanced 40 image will greatly improve our reservoir models, and when combined with AI-supported production optimization, will enable a partnership to high-grade future infill drilling campaigns and optimize reservoir management strategies to drive higher field recovery over the life of the asset. The second major piece of work was the scheduled Jubilee FPSO shutdown, which was completed safely and on budget in early April. The work scope should help to sustain high levels of reliability and higher production as we drill new wells in the future. This year, the operator has been delivering good facilities uptime and consistent water injection into the fields necessary to mitigate the natural decline rate. On drilling, the rig is expected to arrive this month with two Jubilee wells planned in 2025. The partnership then plans to drill four Jubilee wells in 2026 with an option of additional wells if the external environment is supported. Jubilee infill wells provide the highest returns across our portfolio, with full payback typically months due to the low operating and development costs and high cash margins of the barrels, even in a lower oil price environment. And finally, last month I had a very productive meeting with President Mahalo in Accra to discuss his vision for the future of Ghana's energy sector. We share a very aligned agenda around the importance of investment in the oil and gas sector to support the long-term economic and social development of the country. We look forward to continuing to work with the President and his government to invest in and advance Ghana's energy sector under his leadership. Turning to slide six. In the Gulf of America, production for the first quarter was in line with expectations and included a planned 30-day shutdown facility that hosts the Kodiak Field, which has been completed. Our Gulf of America production has ramped back up to around 20,000 barrels, more than equivalent today, net. On Winterfell, the work over the number three well was unsuccessful. We are currently working with partners to evaluate a future sidetrack to access those reserves. The rig is currently drilling the Winterfell four well, and that is expected online in the third quarter. On Tiberias, where Cosmos is operated, we're making good progress on an improved lower-cost development plan, which will be supported by new ocean-bottom-node seismic, or OBM, being acquired this year. We're working closely with OPSI, who are 1550 partners on the project, and also on the nearby Lucius facility, which we expect would host production from the fields. Post-acquisition of the OVN, the farmland process will continue with the aim of bringing a partner ahead of project sanction. In Exeral Guinea, production for the quarter was steady at around 9,000 barrels of the boil per day net. Post the recent infill drilling campaign, activity is relatively light this year as the partnership focuses on well work to support current production levels. In addition, we're working with the operator to reprocess the seismic we have with modern technology to high-grade the future infill drilling potential. There's a lot of opportunity in EG, so the key is making sure we have the best understanding of the subsurface before our next drilling program. Neil will now take you through the financials.