KOSMOS ENERGY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Years Ended December 31, 2017 2016 2015 Operating activities Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(222,792) $(283,780) $ (69,836) Adjustments to reconcile net loss to net cash provided by operating activities: Depletion, depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . 265,407 150,608 166,290 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,505 (23,561) 110,786 Unsuccessful well costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,201 6,079 94,910 Change in fair value of derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,822 46,559 (210,957) Cash settlements on derivatives, net (including $38.7 million, $188.0 million and $225.5 million on commodity hedges during 2017, 2016, and 2015) . . . . . . . 25,888 188,895 224,741 Equity-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,913 40,084 75,057 Gain on sale of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (24,651) Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 165 Loss on equity method investment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,252 — — Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,952 13,355 7,875 Changes in assets and liabilities: (Increase) decrease in receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,365 (20,558) 2,209 (Increase) decrease in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,653 (4,107) (29,855) (Increase) decrease in prepaid expenses and other . . . . . . . . . . . . . . . . . . (31,710) 17,557 512 Increase (decrease) in accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . (94,434) (75,487) 111,289 Increase (decrease) in accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 86,595 (3,567) (17,756) Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236,617 52,077 440,779 Investing activities Oil and gas assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (140,495) (535,975) (823,642) Other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,858) (1,998) (1,483) Equity method investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (231,280) — — Proceeds on sale of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222,068 210 28,692 Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (152,565) (537,763) (796,433) Financing activities Borrowings under long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 450,000 100,000 Payments on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (250,000) — (200,000) Net proceeds from issuance of senior secured notes . . . . . . . . . . . . . . . . . . . . . . — — 206,774 Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,194) (1,981) (18,110) Deferred financing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (67) — (9,030) Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . (52,261) 448,019 79,634 Net increase (decrease) in cash, cash equivalents and restricted cash . . . . . . . . . . . 31,791 (37,667) (276,020) Cash, cash equivalents and restricted cash at beginning of period . . . . . . . . . . . . . 273,195 310,862 586,882 Cash, cash equivalents and restricted cash at end of period . . . . . . . . . . . . . . . . . $ 304,986 $ 273,195 $ 310,862 Supplemental cash flow information Cash paid for: Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 55,381 $ 27,860 $ 33,315 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48,815 $ 13,997 $ 35,857 Non-cash activity: Conversion of joint interest billings receivable to long-term note receivable . . . . . $ — $ 9,814 $ — Contribution to equity method investment . . . . . . . . . . . . . . . . . . . . . . . . . . $ 133,893 $ — $ — Dissolution of equity method investment . . . . . . . . . . . . . . . . . . . . . . . . . . . $(122,407) $ — $ — See accompanying notes. 111