Kosmos Energy Ltd.

Good day, everyone. Welcome to Cosmos Energy's third 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 third quarter 2025 earnings release. This release and the slide presentation to accompany today's call are available on the investor's 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 third quarter results call. I'll start off the call by taking you through Cosmos' priorities, reinforcing the consistent messages I gave last quarter before taking you on progress across the portfolio. Neil will then walk through the financials and the work we've done recently to enhance the resilience of the balance sheet before I wrap up with closing remarks. We'll then open up the call for Q&A. Starting on slide three, as we navigate the ongoing commodity price volatility, our key priorities have not changed. In our first and second quarter results, I talked about growing production and reducing costs to prioritize pre-cash flow while continuing to strengthen our balance sheet. We made important progress across all three of these areas this quarter. Starting with production, at Jubilee, the partnership brought the first producer well of the $25-26 trillion campaign online in July. We continue to see strong performance from the well, with gross production around 10,000 barrels of oil per day. The drilling rig is now back in Ghana following a period of scheduled maintenance and has just spud to the second producer well in the campaign, which is expected online around the end of the year. Through drilling efficiencies, the partnership has increased the number of wells in the 26 drilling campaign from four to five, while staying within the original budget which I'll talk more about shortly. On GTA, production has continued to ramp up with the partnership listing 13.5 gross LNG cargoes through the end of October, along with the first condensate cargo, a new source of revenue for the project. By the end of the year, we're targeting production to increase to the FLNG nameplate capacity of 2.7 million tonnes per annum. In the Gulf of America, production remains consistently strong, and we continue to progress future developments such as Tiberias and Gettysburg. And finally, next to all Guinea, production is set to increase with the partnership installing repaired subsea pumps at Sabre, with the first pump complete, the second in-country, and the third due to be delivered in the first quarter of 2026. We're pleased to see production near record highs for the company, with further near-term growth expected quarterly through 2026 as we push GTA towards nameplate capacity and bring on additional wells at Jubilee. Turning to costs, we're focused on three areas that are making good progress across all. First on CapEx. CapEx continues to fall, and we now expect CapEx for the year to be below our $350 million forecast, an absolute reduction year-on-year of around $500 million. Second, on overhead, we remain on track to deliver the $25 million targeted savings by the end of the year, with a full benefit being seen in 2026 and beyond. Third, on operating costs, they're coming down across all of our businesses. As discussed last quarter, the biggest opportunity for additional OPEX reduction going forward is on GTA, where we're seeing unit costs improve as production ramps up and costs come down. We're targeting the refinancing of the GTA FPSO by year-end and are working with the operator to implement a lower-cost operating model, which should further drive down costs across the project. And finally, the balance sheet, where we've done a lot in recent weeks. On liquidity, we've taken important steps to address our upcoming debt maturities through the $250 million term loan from Shell, with the proceeds being used to repay the outstanding 2026 bond maturities. On the RBL, we successfully completed the semi-annual redetermination in September and passed the maturity test for the 2027 bonds at the same time. We also added more hedges for 2026 during the period. Neil will talk about all of this in more detail later, but in summary, we're making good progress against our financial objectives. The combination of rising production, lowering costs, and lack of near-term maturities gives us the resilience to weather a period of volatility. I remain confident that we have a unique, world-class portfolio of assets, and we remain focused on maximizing long-term value for our shareholders. Turning to slide four, which looks at operations for the quarter. Starting in Ghana, total net production was around 31,300 barrels of oil equivalent per day. Jubilee gross oil production in the third quarter was around 62,500 barrels of oil per day, 13% higher quarter on quarter, held by the first new well of the 25-26 drilling campaign coming online in July. Gross gas production was around 15,000 barrels of oil equivalent per day in the third quarter, sequentially lower due to a period of extended scheduled maintenance of the onshore gas processing plant. At 10, gross oil production in the quarter was around 16,000 barrels of oil per day. At GTA in Senegal and Mauritania, third quarter net production was around 11,400 barrels of oil equivalent per day, an increase of just over 60% from the previous quarter. The partnership listed 6.8 gross LNG cargoes during the quarter, in line with guidance. We also lifted the first gross condensate cargo early in the fourth quarter. There was some start of maintenance on three of the four LNG trains during the third quarter that slightly curtailed production. But with all trains online, we're now running around 2.6 million tons per annum equivalent and on the path to name-blank production this quarter. Work on the last LNG train is planned for this quarter and has been incorporated in our guidance. In the Gulf of America, net production was around 16,600 barrels of oil equivalent per day, in line with guidance, driven by strong performance from Oddjob and Kodiak, and no major storm activity during the quarter. This was offset by some unplanned facility downtime and the abandonment of the Winterfell Forewell, which I'll talk about in more detail in the following slide. On Tiberius, we executed the production handling agreement with Oxy, our 50-50 partner on the project, and also the operator, the Lucius Production Facility, which will host the volumes from the development when it comes online. We expect to take FID and farm down our interest to around a third in 2026. Next, organic net production was around 6,200 barrels of oil per day, down quarter on quarter due to the subsea pump issues flagged in May. As I mentioned, we're making good progress on the repair of those pumps, with normal lines production expected in the first half of 2026. Turning to slide five, we talked in depth last quarter about Jubilee and the opportunity to deliver the field's full potential as a return to drilling. As the chart on the slide shows, the first well of the 25-26 drilling campaign was drilled in the second quarter and came online in July. The well continues to perform in line with expectations, delivering around 10,000 barrels per day of gross oil production. Drilling of the second producer well has commenced and is expected online around the end of the year, and we anticipate it will also be a strong producer. The next 12 months is an important period of activity for the field, with a committed drilling program of five more wells in 2026. We initially planned to drill four producer wells next year, but have worked with the partnership to drive a more efficient program that allows for a fifth well, a water injector, to be added in 2026 while maintaining the same budget. The blue dots on the chart show production may be higher through 2026 as the new wells come online. And while this upward trajectory won't be linear as individual wells contribute different volumes, we expect Jubilee production to be materially higher than current levels as we finish the current drilling program in late 2026. With improved water injection and a regular follow-on infill drilling program, we're targeting sustained production at those higher levels. The other important point to note on the chart is the OBN seismic acquisition, which is taking place this quarter. This state-of-the-art imaging technology that I talked about last quarter will further enhance our understanding of the subsurface, providing better data on historical fluid movements and help identify more undrilled lobes and unswept oil. This is a step change in imaging technology, which we expect will support optimum well selection in future drilling campaigns, ultimately enhancing resource recovery over the remaining life of the field. With the license extension expected to be completed by year-end, the partnership can now plan on long-term investment in Jubilee, which should drive a material uplift in 2P reserves. All the required documentation of the extension has now been prepared for submission to the government for their approval. Turning to slide six. At GTA, we continue to see a lot of positive progress as we work with BP, the national oil companies, and the governments to improve profitability. As the green line on the chart shows, production continues to rise with net production of 11,400 barrels of oil equivalent in the quarter. This equates to 6.8 gross LNG cargoes during the quarter in line with guidance. The partial cargo number reflects the cargo that was loaded over the quarter end with the remainder of the cargo recognized in the following quarter. The project has now listed 13.5 gross cargoes through October, with 7 to 8.5 cargoes expected in the fourth quarter. Last month, the first gross condensate cargo was listed, another important milestone for the project, and was priced at a small discount to Brent. Looking ahead, we expect production to continue to rise, targeting the $2.7 million Temprano nameplate towards the end of the year. With its higher production level, we see the potential for the cargo count in 2026 to be almost double what we expect to see this year. On cost, the blue bars on the chart show the absolute operating expenses continue to fall. We expect further progress into 2026, with the refinancing of the FPSO and as we work with the operator to implement a lower cost operating model. Through rising production and its focus on cost, we expect unit cost to fall by over 50% next year. That said, we continue to advance phase one plus expansion targeting online in 2029, materially increasing the volume from our existing infrastructure. With that growth in production, we expect the unit economics to improve substantially. On CapEx, Neil will talk more about it in the financials, but the working capital outflow in the third quarter was largely related to the crude GTA CapEx post-project completion that was due in the third quarter, effectively marking the end of the capital outlay for phase one of the project. Turning to slide seven. In the Gulf of America, third quarter performance was in line with expectations with a continued strong performance from Oddjob and Kodiak and a lack of storm activity, offset by some unplanned facility downtime and the abandonment of the Winterfell 4 well. As we communicated in this morning's earnings release, Winterfell 4 was abandoned in September by the operator due to challenges encountered during completion operations arising from the collapse of the production casing. Unfortunately, the operator has recently struggled with completion issues. So while we'd like the resource upside of Winterfell, which contains around 100 million barrels oil equivalent of potential, we plan to focus next year's activity just on restoring production from the Winterfell 3 fault block. This will allow time to better plan and design the future wells to capture the full resource potential of the field. On our development activities, we continue to progress Tiberius with Oxy with an improved lower-cost development plan and an executed PHA, which locks in attractive commercial terms. FID and farm-down are planned for next year. We also continue to advance Gettysburg with Shell, which has discovered a resource opportunity we acquired in a previous resale. We're progressing a single-well development that will be tied back to Shell's operated Appomattox platform. That concludes the review of the portfolio, and Neil will now take you through the financials.