Kosmos Energy Ltd.KOS
Kosmos Energy Ltd. Segments Disclosure
Business Segment Information
Kosmos is engaged in a single line of business, which is the exploration, development and production of oil and gas. At December 31, 2024, the Company had operations in four geographic reporting segments: Ghana, Equatorial Guinea, Mauritania/Senegal and the Gulf of America. The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer, who makes decisions about allocating resources and assessing performance for the entire company. To assess performance of the reporting segments, the CODM regularly reviews oil and gas revenues, oil and gas production costs, exploration expenses and capital expenditures by reporting segment in deciding how to allocate resources and in assessing performance. 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 reporting segment is presented below:
| Ghana | Equatorial Guinea | Mauritania / Senegal | Gulf of America | Corporate & Other | Eliminations | Total | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Years ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Revenues and other income: | |||||||||||||||||||||||||||||||||||||||||
| Oil and gas revenue | $ | 1,044,562 | $ | 260,675 | $ | — | $ | 370,121 | $ | — | $ | — | $ | 1,675,358 | |||||||||||||||||||||||||||
| Other income, net | 48 | — | — | 2,895 | 171,706 | (174,445) | 204 | ||||||||||||||||||||||||||||||||||
| Total revenues and other income | 1,044,610 | 260,675 | — | 373,016 | 171,706 | (174,445) | 1,675,562 | ||||||||||||||||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||||||||||||||||
| Oil and gas production | 164,385 | 136,398 | 93,412 | 136,319 | — | — | 530,514 | ||||||||||||||||||||||||||||||||||
| Exploration expenses | 3,572 | 73,009 | 16,973 | 21,447 | 4,906 | — | 119,907 | ||||||||||||||||||||||||||||||||||
| General and administrative | 13,718 | 6,129 | 10,974 | 19,326 | 212,354 | (162,346) | 100,155 | ||||||||||||||||||||||||||||||||||
| Depletion, depreciation and amortization | 203,501 | 65,178 | 950 | 185,068 | 2,077 | — | 456,774 | ||||||||||||||||||||||||||||||||||
| Interest and other financing costs, net(1) | 51,302 | (2,697) | (146,952) | (12,607) | 199,552 | — | 88,598 | ||||||||||||||||||||||||||||||||||
| Derivatives, net | — | — | — | — | 12,099 | — | 12,099 | ||||||||||||||||||||||||||||||||||
| Other expenses, net | 14,894 | (4,673) | 14,764 | 4,782 | 35 | (12,099) | 17,703 | ||||||||||||||||||||||||||||||||||
| Total costs and expenses | 451,372 | 273,344 | (9,879) | 354,335 | 431,023 | (174,445) | 1,325,750 | ||||||||||||||||||||||||||||||||||
| Income before income taxes | 593,238 | (12,669) | 9,879 | 18,681 | (259,317) | — | 349,812 | ||||||||||||||||||||||||||||||||||
| Income tax expense | 201,006 | (41,217) | — | 14,179 | (14,007) | — | 159,961 | ||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 392,232 | $ | 28,548 | $ | 9,879 | $ | 4,502 | $ | (245,310) | $ | — | $ | 189,851 | |||||||||||||||||||||||||||
| Consolidated capital expenditures | $ | 139,130 | $ | 177,196 | $ | 324,798 | $ | 181,160 | $ | 6,529 | $ | — | $ | 828,813 | |||||||||||||||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Property and equipment, net | $ | 986,693 | $ | 482,223 | $ | 2,057,786 | $ | 901,012 | $ | 16,507 | $ | — | $ | 4,444,221 | |||||||||||||||||||||||||||
| Total assets | $ | 3,682,493 | $ | 2,313,856 | $ | 3,188,067 | $ | 4,094,116 | $ | 25,867,010 | $ | (33,836,554) | $ | 5,308,988 | |||||||||||||||||||||||||||
______________________________________
(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 | Gulf of America | Corporate & Other | Eliminations | Total | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Year ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Revenues and other income: | |||||||||||||||||||||||||||||||||||||||||
| Oil and gas revenue | $ | 1,062,482 | $ | 267,494 | $ | — | $ | 371,632 | $ | — | $ | — | $ | 1,701,608 | |||||||||||||||||||||||||||
| Other income, net | (403) | 10 | — | 3,327 | 157,770 | (160,777) | (73) | ||||||||||||||||||||||||||||||||||
| Total revenues and other income | 1,062,079 | 267,504 | — | 374,959 | 157,770 | (160,777) | 1,701,535 | ||||||||||||||||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||||||||||||||||
| Oil and gas production | 175,265 | 114,411 | — | 100,421 | — | — | 390,097 | ||||||||||||||||||||||||||||||||||
| Exploration expenses | 872 | 7,915 | 15,784 | 11,950 | 5,757 | — | 42,278 | ||||||||||||||||||||||||||||||||||
| General and administrative | 12,913 | 5,555 | 9,354 | 22,076 | 199,283 | (149,649) | 99,532 | ||||||||||||||||||||||||||||||||||
| Depletion, depreciation and amortization | 240,998 | 51,750 | 917 | 149,482 | 1,780 | — | 444,927 | ||||||||||||||||||||||||||||||||||
| Impairment of long-lived assets | 222,278 | — | — | — | — | 222,278 | |||||||||||||||||||||||||||||||||||
| Interest and other financing costs, net(1) | 56,988 | (2,942) | (119,697) | 6,236 | 155,319 | — | 95,904 | ||||||||||||||||||||||||||||||||||
| Derivatives, net | — | — | — | — | 11,128 | — | 11,128 | ||||||||||||||||||||||||||||||||||
| Other expenses, net | 7,963 | 3,208 | 7,997 | 10,506 | 5,110 | (11,128) | 23,656 | ||||||||||||||||||||||||||||||||||
| Total costs and expenses | 717,277 | 179,897 | (85,645) | 300,671 | 378,377 | (160,777) | 1,329,800 | ||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 344,802 | 87,607 | 85,645 | 74,288 | (220,607) | — | 371,735 | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 122,704 | 35,666 | — | 13,643 | (13,798) | — | 158,215 | ||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 222,098 | $ | 51,941 | $ | 85,645 | $ | 60,645 | $ | (206,809) | $ | — | $ | 213,520 | |||||||||||||||||||||||||||
| Consolidated capital expenditures | $ | 276,849 | $ | 74,573 | $ | 276,484 | $ | 212,431 | $ | 9,662 | $ | — | $ | 849,999 | |||||||||||||||||||||||||||
| As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Property and equipment, net | $ | 1,036,651 | $ | 424,030 | $ | 1,788,214 | $ | 893,293 | $ | 18,041 | $ | — | $ | 4,160,229 | |||||||||||||||||||||||||||
| Total assets | $ | 3,252,235 | $ | 1,918,131 | $ | 2,642,098 | $ | 3,988,805 | $ | 21,599,662 | $ | (28,462,797) | $ | 4,938,134 | |||||||||||||||||||||||||||
______________________________________
(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 (2) | Equatorial Guinea | Mauritania / Senegal | Gulf of America (3) | Corporate & Other | Eliminations | Total | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Year ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
| Revenues and other income: | |||||||||||||||||||||||||||||||||||||||||
| Oil and gas revenue | $ | 1,350,962 | $ | 346,783 | $ | — | $ | 547,610 | $ | — | $ | — | $ | 2,245,355 | |||||||||||||||||||||||||||
| Gain on sale of assets | — | — | — | 471 | 50,000 | — | 50,471 | ||||||||||||||||||||||||||||||||||
| Other income, net | 428 | 3,350 | — | 2,405 | 386,002 | (388,236) | 3,949 | ||||||||||||||||||||||||||||||||||
| Total revenues and other income | 1,351,390 | 350,133 | — | 550,486 | 436,002 | (388,236) | 2,299,775 | ||||||||||||||||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||||||||||||||||
| Oil and gas production | 212,729 | 90,602 | — | 105,968 | — | — | 409,299 | ||||||||||||||||||||||||||||||||||
| Exploration expenses | 14,987 | 7,378 | 82,526 | 22,763 | 6,576 | — | 134,230 | ||||||||||||||||||||||||||||||||||
| General and administrative | 15,310 | 6,703 | 9,798 | 15,794 | 180,594 | (127,343) | 100,856 | ||||||||||||||||||||||||||||||||||
| Depletion, depreciation and amortization | 289,058 | 53,765 | 412 | 153,407 | 1,614 | — | 498,256 | ||||||||||||||||||||||||||||||||||
| Impairment of long-lived assets | 450,357 | — | — | (388) | — | — | 449,969 | ||||||||||||||||||||||||||||||||||
| Interest and other financing costs, net(1) | 64,620 | (2,494) | (69,644) | 11,180 | 114,598 | — | 118,260 | ||||||||||||||||||||||||||||||||||
| Derivatives, net | — | — | — | — | 260,892 | — | 260,892 | ||||||||||||||||||||||||||||||||||
| Other expenses, net | 233,785 | 8,397 | (1,178) | 10,339 | 496 | (260,893) | (9,054) | ||||||||||||||||||||||||||||||||||
| Total costs and expenses | 1,280,846 | 164,351 | 21,914 | 319,063 | 564,770 | (388,236) | 1,962,708 | ||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 70,544 | 185,782 | (21,914) | 231,423 | (128,768) | — | 337,067 | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 28,091 | 72,814 | — | (1,010) | 10,621 | — | 110,516 | ||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 42,453 | $ | 112,968 | $ | (21,914) | $ | 232,433 | $ | (139,389) | $ | — | $ | 226,551 | |||||||||||||||||||||||||||
| Consolidated capital expenditures | $ | 98,540 | $ | 36,036 | $ | 407,982 | $ | 111,016 | $ | (41,986) | $ | — | $ | 611,588 | |||||||||||||||||||||||||||
| As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
| Property and equipment, net | $ | 1,202,937 | $ | 396,737 | $ | 1,396,884 | $ | 829,242 | $ | 16,847 | $ | — | $ | 3,842,647 | |||||||||||||||||||||||||||
| Total assets | $ | 2,886,242 | $ | 1,463,211 | $ | 2,026,776 | $ | 3,695,641 | $ | 19,554,236 | $ | (25,046,118) | $ | 4,579,988 | |||||||||||||||||||||||||||
______________________________________
(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.
(2)Includes activity related to the interest pre-empted by Tullow prior to the March 17, 2022 closing date of the Tullow pre-emption transaction. Additionally, cash consideration of $118.2 million is included as a reduction in Consolidated capital expenditures for the year ended December 31, 2022.
(3)Includes activity related to our acquisition of an additional interest in the Kodiak oil field commencing June 9, 2022, the acquisition date. Additionally, cash consideration paid of $29.0 million is included in the Consolidated capital expenditures for the year ended December 31, 2022.
| Years Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Consolidated capital expenditures: | |||||||||||||||||
| Consolidated Statements of Cash Flows - Investing activities: | |||||||||||||||||
| Oil and gas assets | $ | 933,659 | $ | 932,603 | $ | 787,297 | |||||||||||
| Acquisition of oil and gas properties | — | — | 22,078 | ||||||||||||||
| Proceeds on sale of assets | — | — | (168,703) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Changes in capital accruals | 13,392 | 6,732 | 396 | ||||||||||||||
| Exploration expense, excluding unsuccessful well costs and leasehold impairments(1) | 45,418 | 40,070 | 47,289 | ||||||||||||||
| Capitalized interest | (168,715) | (138,738) | (84,343) | ||||||||||||||
| Other | 5,059 | 9,332 | 7,574 | ||||||||||||||
| Total consolidated capital expenditures | $ | 828,813 | $ | 849,999 | $ | 611,588 | |||||||||||
______________________________________
(1)Unsuccessful well costs are included in oil and gas assets when incurred.
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.