Kosmos Energy ($KOS) disclosed a decrease in third-quarter results year over year early Monday, while the deepwater oil and gas production company amended the upper limit of its annual production forecast. Adjusted earnings for the September quarter were reported at $0.08 per share, a decline from $0.26 the previous year.
Analysts surveyed by Capital IQ had also projected a normalized EPS of $0.08. Revenue dropped to $407.8 million from $526.5 million last year, although it surpassed the consensus estimate of $405.6 million, based on the same number of analysts. In premarket activity, the stock rose by 2.7%. Oil-equivalent production of 65,400 barrels per day was achieved, which is near the lower end of the guidance range released in August, which was set between 65,000 to 69,000 barrels.
This marks an approximate 5% increase compared to the previous three-month period. The growth is attributed to enhanced production in the Gulf of Mexico, spurred by the launch of two Winterfell wells and ongoing production enhancement projects at both the Kodiak and Odd Job fields. The company also reported a net underlift position of about 100,000 barrels at the end of the third quarter. Total costs and expenses decreased to $301.3 million from $389 million last year.
Net capital expenditure reached $210 million, exceeding the company's expectations of $175 million to $200 million, primarily driven by escalated costs related to the infill drilling program in Equatorial Guinea. For 2024, Kosmos now anticipates a production volume of approximately 67,000 barrels of oil equivalent per day, compared to its previous projections of 67,000 to 71,000 barrels.
The capital expenditure estimate was raised to around $800 million from the earlier estimate of about $750 million. "As production rises and projects are completed, we plan to significantly reduce capital expenditure," noted Chief Executive Andrew Inglis in a statement. Looking towards the current quarter, the firm expects a production range of 70,000 to 74,000 barrels of oil equivalent per day, with capital expenditures approximating $100 million. In terms of future outlook, Kosmos projects capital expenditures to be around $400 million for 2025, a reduction from its earlier forecast of roughly $550 million.
"With the actions taken this year to strengthen the balance sheet, we are well positioned entering 2025 to enhance shareholder value and further improve the financial resilience of the company," added the CEO..