Kosmos Energy misses by $0.06, misses on revs (5.80)
- Reports Q4 (Dec) loss of $0.09 per share, excluding non-recurring items, $0.06 worse than the S&P Capital IQ Consensus of ($0.03); revenues rose 65.4% year/year to $309.5 mln vs the $332.55 mln S&P Capital IQ Consensus.
- Additionally, the co announced that it is hosting a Capital Markets Day presentation today in London for sell-side analysts and institutional investors. Highlights include:
- Reduction in 2019 capital expenditure from $500-600 million to $425-475 million: This can be done while maintaining the same 8-10% production compound annual growth rate for 2019-21
- The company can fund its sustaining capital expenditure and dividends at $35/barrel Brent
- Kosmos has discovered a significant and valuable resource in Mauritania and Senegal and the final investment decision of the Tortue project in December 2018 has created a value inflection point: Following interest from multiple third parties, Kosmos intends to sell down its position to ~10%
- Kosmos' exploration portfolio creates asymmetric upside, with 2019 an active exploration year for the company: Kosmos expects to drill 6 exploration wells across the portfolio targeting 500 mmboe net
