Kosmos Energy Ltd

For the period ended Dec 31, 2023. Filed Feb 26, 2024.

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 26, 2024

KOS$2.11+1.9%Stored close · as of Nov 10, 2026

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Contents

Item 15. Exhibits, Financial Statement Schedules

(a)The following documents are filed as part of this report:

(1)Financial statements

The financial statements filed as part of the Annual Report on Form 10‑K are listed in the accompanying index to consolidated financial statements in Item 8. Financial Statements and Supplementary Data.

(2)Financial statement schedules

Schedule I—Condensed Parent Company Financial Statements

Under the terms of agreements governing the indebtedness of subsidiaries of Kosmos Energy Ltd. for 2023, 2022 and 2021 (collectively “KEL,” the “Parent Company”), such subsidiaries may be restricted from making dividend payments, loans or advances to KEL. Schedule I of Article 5‑04 of Regulation S‑X requires the condensed financial information of the Parent Company to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

The following condensed parent‑only financial statements of KEL have been prepared in accordance with Rule 12‑04, Schedule I of Regulation S‑X and included herein. The Parent Company’s 100% investment in its subsidiaries has been recorded using the equity basis of accounting in the accompanying condensed parent‑only financial statements. The condensed financial statements should be read in conjunction with the consolidated financial statements of Kosmos Energy Ltd. and subsidiaries and notes thereto.

The terms “Kosmos,” the “Company,” and similar terms refer to Kosmos Energy Ltd. and its wholly-owned subsidiaries, unless the context indicates otherwise. Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net income, current assets, total assets, current liabilities, total liabilities or shareholders equity.

CONDENSED PARENT COMPANY BALANCE SHEETS

(In thousands, except share data)

	December 31,
	2023	2022
Assets
Current assets:
Cash and cash equivalents	$275	$2,286
Derivatives receivable - related party	—	413
Prepaid expenses and other	752	1,051
Total current assets	1,027	3,750
Investment in subsidiaries at equity	2,683,656	2,403,785
Deferred financing costs, net of accumulated amortization of $15,583 and $13,263 at December 31, 2023 and December 31, 2022, respectively	2,320	4,640
Restricted cash	305	305
Long-term deferred tax asset	12,050	461
Total assets	$2,699,358	$2,412,941
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$12	$14
Accounts payable to subsidiaries	152,679	114,312
Accrued liabilities	27,650	27,500
Total current liabilities	180,341	141,826
Long-term debt, net	1,486,680	1,483,267
Shareholders’ equity:
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at December 31, 2023 and December 31, 2022	—	—
Common stock, $0.01 par value; 2,000,000,000 authorized shares; 504,392,980 and 500,161,421 issued at December 31, 2023 and December 31, 2022, respectively	5,044	5,002
Additional paid-in capital	2,536,621	2,505,694
Accumulated deficit	(1,272,321)	(1,485,841)
Treasury stock, at cost, 44,263,269 shares at December 31, 2023 and 2022, respectively	(237,007)	(237,007)
Total shareholders’ equity	1,032,337	787,848
Total liabilities and shareholders’ equity	$2,699,358	$2,412,941

CONDENSED PARENT COMPANY STATEMENTS OF OPERATIONS

	Years Ended December 31,
	2023	2022	2021
Revenues and other income:
Oil and gas revenue	$—	$—	$—
Other income—related party	—	75,740	20,307
Total revenues and other income	—	75,740	20,307
Costs and expenses:
General and administrative	52,279	44,180	38,810
General and administrative recoveries—related party	(6,048)	(3,772)	79
Interest and other financing costs, net	122,773	123,247	98,649
Interest and other financing costs, net—related party	—	—	(2,446)
Derivatives, net	—	75,740	20,307
Other expenses, net	131	17	(61)
Equity in (earnings) losses of subsidiaries	(370,729)	(415,546)	(57,195)
Total costs and expenses	(201,594)	(176,134)	98,143
Income (loss) before income taxes	201,594	251,874	(77,836)
Income tax expense (benefit)	(11,926)	25,323	—
Net income (loss)	$213,520	$226,551	$(77,836)

CONDENSED PARENT COMPANY STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2023	2022	2021
Operating activities
Net income (loss)	$213,520	$226,551	$(77,836)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in (earnings) losses of subsidiaries	(370,729)	(415,546)	(57,195)
Equity-based compensation	42,693	34,546	31,651
Depreciation and amortization	6,588	6,359	5,638
Deferred income taxes	(11,589)	18,034	—
Other income—related party	413	(4,353)	6,582
Change in fair value on derivatives	—	75,741	20,307
Cash settlements on derivatives	—	(70,327)	(28,363)
Loss on extinguishment of debt	—	192	4,403
Changes in assets and liabilities:
Decrease in receivables	87	306	134
(Increase) decrease in prepaid expenses and other	299	(94)	(49)
Decrease due to/from related party	37,765	33,214	218,008
Increase (decrease) in accounts payable and accrued liabilities	60	(4,159)	18,003
Net cash provided by (used in) operating activities	(80,893)	(99,536)	141,283
Investing activities
Investment in subsidiaries	90,858	104,676	(1,001,494)
Net cash provided by (used in) investing activities	90,858	104,676	(1,001,494)
Financing activities
Borrowings under long-term debt	—	—	100,000
Payments on long-term debt	—	—	(200,000)
Net proceeds from issuance of senior notes	—	—	839,375
Net proceeds from issuance of common stock	—	—	136,006
Dividends	(166)	(655)	(512)
Other financing costs	(11,810)	(8,892)	(9,131)
Net cash provided by (used in) financing activities	(11,976)	(9,547)	865,738
Net increase (decrease) in cash and cash equivalents	(2,011)	(4,407)	5,527
Cash, cash equivalents and restricted cash at beginning of period	2,591	6,998	1,471
Cash, cash equivalents and restricted cash at end of period	$580	$2,591	$6,998

Schedule II

Kosmos Energy Ltd.

Valuation and Qualifying Accounts

For the Years Ended December 31, 2023, 2022 and 2021

	Additions
Description	Balance January 1,	Charged to Costs and Expenses	Charged To Other Accounts	Deductions From Reserves	Balance December 31,
Allowance for credit losses	$7,011	$2,842	$(6)	$—	$9,847
Allowance for deferred tax assets	$312,727	$20,924	$—	$—	$333,651
Allowance for credit losses	$5,189	$2,509	$(687)	$—	$7,011
Allowance for deferred tax assets	$318,343	$(5,616)	$—	$—	$312,727
Allowance for credit losses	$5,675	$1,019	$(1,505)	$—	$5,189
Allowance for deferred tax assets	$288,288	$30,055	$—	$—	$318,343

Schedules other than Schedule I and Schedule II have been omitted because they are not applicable or the required information is presented in the consolidated financial statements or the notes to consolidated financial statements.

(3) Exhibits

See “Index to Exhibits” on page 139 for a description of the exhibits filed as part of this report.

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