Business Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Kosmos is engaged in a single line of business, which is the exploration, development and production of oil and gas. At September 30, 2024, the Company had operations in four geographic reporting segments: Ghana, Equatorial Guinea, Mauritania/Senegal and the U.S. Gulf of Mexico. To assess performance of the reporting segments, the Chief Operating Decision Maker reviews capital expenditures. Capital expenditures, as defined by the Company, may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with our consolidated financial statements and notes thereto. Financial information for each area is presented below:

	Ghana		Equatorial Guinea		Mauritania/Senegal		U.S. Gulf of Mexico		Corporate & Other		Eliminations		Total
	(In thousands)
Three Months Ended September 30, 2024
Revenues and other income:
Oil and gas revenue	$	233,348	$	70,970	$	—	$	103,476	$	—	$	—	$	407,794
Other income, net	—		—		—		543		23,160		(23,666)		37
Total revenues and other income	233,348		70,970		—		104,019		23,160		(23,666)		407,831
Costs and expenses:
Oil and gas production	26,955		37,237		39,685		29,594		—		—		133,471
Exploration expenses	1,413		1,881		4,633		5,380		1,390		—		14,697
General and administrative	3,004		1,282		3,301		3,725		50,905		(38,919)		23,298
Depletion, depreciation and amortization	47,919		15,003		233		56,496		1,077		—		120,728
Interest and other financing costs, net(1)	13,408		(810)		(37,043)		(2,309)		48,866		—		22,112
Derivatives, net	—		—		—		—		(15,254)		—		(15,254)
Other expenses, net	(15,166)		157		881		1,040		62		15,253		2,227
Total costs and expenses	77,533		54,750		11,690		93,926		87,046		(23,666)		301,279
Income (loss) before income taxes	155,815		16,220		(11,690)		10,093		(63,886)		—		106,552
Income tax expense	55,350		6,455		—		564		(791)		—		61,578
Net income (loss)	$	100,465	$	9,765	$	(11,690)	$	9,529	$	(63,095)	$	—	$	44,974
Consolidated capital expenditures	$	16,583	$	51,056	$	75,997	$	63,820	$	2,552	$	—	$	210,008

	Ghana		Equatorial Guinea		Mauritania/Senegal		U.S. Gulf of Mexico		Corporate & Other		Eliminations		Total
	(In thousands)
Nine months ended September 30, 2024
Revenues and other income:
Oil and gas revenue	$	821,880	$	188,917	$	—	$	267,000	$	—	$	—	$	1,277,797
Other income, net	1		—		—		2,028		123,674		(125,594)		109
Total revenues and other income	821,881		188,917		—		269,028		123,674		(125,594)		1,277,906
Costs and expenses:
Oil and gas production	123,250		97,942		57,851		98,779		—		—		377,822
Exploration expenses	3,665		5,263		13,880		13,392		3,792		—		39,992
General and administrative	9,882		4,027		8,567		15,097		159,028		(119,877)		76,724
Depletion, depreciation and amortization	144,609		38,895		684		125,765		1,797		—		311,750
Interest and other financing costs, net(1)	39,204		(2,406)		(107,808)		(10,702)		157,551		—		75,839
Derivatives, net	—		—		—		—		5,716		—		5,716
Other expenses, net	5,817		(2,197)		6,111		2,358		45		(5,716)		6,418
Total costs and expenses	326,427		141,524		(20,715)		244,689		327,929		(125,593)		894,261
Income (loss) before income taxes	495,454		47,393		20,715		24,339		(204,255)		(1)		383,645
Income tax expense	170,060		19,019		—		644		(2,508)		—		187,215
Net income (loss)	$	325,394	$	28,374	$	20,715	$	23,695	$	(201,747)	$	(1)	$	196,430
Consolidated capital expenditures, net	$	128,247	$	129,296	$	287,193	$	161,555	$	5,360	$	—	$	711,652
As of September 30, 2024
Property and equipment, net	$	1,031,498	$	523,312	$	2,177,621	$	945,138	$	16,866	$	—	$	4,694,435
Total assets	$	3,514,342	$	2,310,092	$	3,209,803	$	4,074,383	$	25,174,519	$	(32,812,193)	$	5,470,946

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(1)Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside.

	Ghana		Equatorial Guinea		Mauritania/Senegal		U.S. Gulf of Mexico		Corporate & Other		Eliminations		Total
	(In thousands)
Three months ended September 30, 2023
Revenues and other income:
Oil and gas revenue	$	348,366	$	75,014	$	—	$	102,968	$	—	$	—	$	526,348
Other income, net	—		—		—		746		80,826		(81,374)		198
Total revenues and other income	348,366		75,014		—		103,714		80,826		(81,374)		526,546
Costs and expenses:
Oil and gas production	90,737		24,700		—		23,345		—		—		138,782
Exploration expenses	(58)		2,931		3,698		1,913		1,806		—		10,290
General and administrative	2,475		1,209		2,543		3,291		51,018		(35,416)		25,120
Depletion, depreciation and amortization	77,688		14,654		297		38,948		760		—		132,347
Interest and other financing costs, net(1)	14,368		(752)		(31,438)		3,540		39,722		—		25,440
Derivatives, net	—		—		—		—		45,971		—		45,971
Other expenses, net	42,466		3,449		3,337		5,414		2,347		(45,958)		11,055
Total costs and expenses	227,676		46,191		(21,563)		76,451		141,624		(81,374)		389,005
Income (loss) before income taxes	120,690		28,823		21,563		27,263		(60,798)		—		137,541
Income tax expense	42,614		12,477		—		54		(2,789)		—		52,356
Net income (loss)	$	78,076	$	16,346	$	21,563	$	27,209	$	(58,009)	$	—	$	85,185
Consolidated capital expenditures, net	$	53,039	$	15,821	$	42,079	$	76,895	$	4,716	$	—	$	192,550

	Ghana		Equatorial Guinea		Mauritania/Senegal		U.S. Gulf of Mexico		Corporate & Other		Eliminations		Total
	(In thousands)
Nine months ended September 30, 2023
Revenues and other income:
Oil and gas revenue	$	728,465	$	179,643	$	—	$	285,735	$	—	$	—	$	1,193,843
Other income, net	(425)		10		—		2,832		151,740		(154,272)		(115)
Total revenues and other income	728,040		179,653		—		288,567		151,740		(154,272)		1,193,728
Costs and expenses:
Oil and gas production	141,973		68,623		—		75,701		—		—		286,297
Exploration expenses	579		7,013		11,917		9,089		4,707		—		33,305
General and administrative	9,921		3,871		7,346		13,099		155,617		(112,123)		77,731
Depletion, depreciation and amortization	177,796		36,737		699		114,912		1,490		—		331,634
Interest and other financing costs, net(1)	42,535		(2,138)		(87,087)		9,632		111,437		—		74,379
Derivatives, net	—		—		—		—		42,162		—		42,162
Other expenses, net	38,811		3,402		6,058		8,215		3,527		(42,149)		17,864
Total costs and expenses	411,615		117,508		(61,067)		230,648		318,940		(154,272)		863,372
Income (loss) before income taxes	316,425		62,145		61,067		57,919		(167,200)		—		330,356
Income tax expense	112,478		25,837		—		1,119		(917)		—		138,517
Net income (loss)	$	203,947	$	36,308	$	61,067	$	56,800	$	(166,283)	$	—	$	191,839
Consolidated capital expenditures, net	$	202,517	$	40,777	$	191,830	$	125,215	$	8,288	$	—	$	568,627
As of September 30, 2023
Property and equipment, net	$	1,243,655	$	402,999	$	1,672,423	$	842,715	$	18,177	$	—	$	4,179,969
Total assets	$	3,320,522	$	1,738,886	$	2,507,496	$	3,934,860	$	21,048,238	$	(27,580,601)	$	4,969,401

______________________________________

(1)Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside.

	Nine Months Ended September 30,
	2024		2023
	(In thousands)
Consolidated capital expenditures:
Consolidated Statements of Cash Flows - Investing activities:
Oil and gas assets	$	772,238	$	611,914
Adjustments:
Changes in capital accruals	25,108		25,441
Exploration expense, excluding unsuccessful well costs and leasehold impairments(1)	36,120		31,061
Capitalized interest	(126,007)		(99,920)
Other	4,193		131
Total consolidated capital expenditures, net	$	711,652	$	568,627

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(1)Costs related to unsuccessful exploratory wells and leaseholds that are subsequently written off to Exploration expense are included in oil and gas assets when incurred.