b'Financial HighlightsEBITDAX RECONCILIATION Year Ended Year Ended Year EndedDecember December December 31, 2018 31, 2017 31, 2016EQUATORIALEQUATORIAL GUINEA GUINEA(Equity(Equity KOSMOS Method)1 TOTAL KOSMOS Method)2 TOTAL KOSMOSNet income (loss) $ (93,991) $ 72,881 $ (21,110) $ (222,792) $ 5,234 $ (217,558) $ (283,780)Exploration expenses301,492 352 301,844 216,050216,050 202,280 Facilities insurance modifications, net6,9556,955 (820) (820)14,961 Depletion and depreciation329,835 134,982 464,817 255,203 11,181 266,384 140,404 Equity-based compensation35,23035,230 39,91339,913 40,084 Derivatives, net(31,430) (31,430)59,96859,968 48,021 Cash settlements on commodity derivatives(137,053) (137,053)38,73738,737 187,950 Inventory impairment and other288288 403403 10,718 Disputed charges and related costs(9,753) (9,753)4,9624,962 11,299 Gain on sale of assets(7,666) (7,666)Loss on equity method investment - KBSL 11,48611,486Gain on equity method investment - KTIPI(72,881) (72,881)(5,234) (5,234) Interest and other financing costs, net101,176101,176 77,59577,595 44,147 Income tax expense43,131 78,491 121,622 44,937 3,294 48,231 (10,784)EBITDAX $ 465,333 $ 286,706 $ 752,039 $ 520,408 $ 19,709 $ 540,117 $ 405,3001. For the three months and year ended December31, 2018, we have presented separately our 50% share of the results from operations and amortization of our basis difference for the Equatorial Guinea investment, as we account for such investment under the equity method.2. For the three months and year ended December 31, 2017, we have presented separately our 50% share of the results from operations and amortization of our basis difference forthe Equatorial Guinea investment from the date of acquisition, November 28, 2017 through December 31, 2017 as we account for such investment under the equity method.11'