KOS - Kosmos Q4 results - big beat flat guide compelling medium-term free cash flow

Kosmos Energy (NYSE:KOS) reported Q4 results ahead of the market open Monday, with the west Africa and Gulf of Mexico producer beating Street estimates, guiding production flat, and directing free cash flow towards LNG growth projects:   Earnings - the Company posted 13c in adjusted earnings per share, versus Street expectations for 8c; during the quarter, Kosmos (KOS) generated $136m in free cash flow (~6.7% of current market cap), despite an $82m headwind from hedging. Production - management guided to 69kboe/d of production in 2022, versus 70kboe/d in Q4 2021 and 54kboe/d in 2021; Q4 benefitted from an extra lifting in Ghana, resulting in ~82kboe/d of Q4 sales. Capex - 2022 capex was guided to $700m, versus 2021 spend at $473m. Allocation - Management is focused on spending free cash flow to deliver the Tortue LNG project in Mauritania / Senegal, and plans to grow production 50% in the coming two years

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Kosmos Q4 results - big beat, flat guide, compelling medium-term free cash flow