KOS - Kosmos Energy cuts 2020 output forecast cites impact of the pandemic storms

Kosmos Energy (KOS) rises 2% in premarket after Q3 earnings came in above expectations. But the company reports that net production of ~56,700 boe/day, is slightly lower than previous guidance due to the impact of the storm in the Gulf of Mexico, hence the company has lowerd full year net production outlook to 61,000 to 62,000 boe/day, compared to earlier guidance of 62,000-70,000.Reports net loss of $37M, a turnaround from profit of $16M a year ago.Cash flow improves by over $100M versus Q2 due to higher realized prices, lower costs and a benefit in working capital, offset by the impact of the elevated storms in the Gulf of Mexico. For Q4, expects continuous cost reduction, high reliability in Ghana and Equatorial Guinea and improved uptime in the Gulf of Mexico, hence sees positive free cash flow from the base business, enhanced by the proceeds from the Shell transaction.In Mauritania and Senegal, Phase 1 of the Tortue project to be ~50% complete

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Kosmos Energy cuts 2020 output forecast, cites impact of the pandemic, storms