KOSMOS ENERGY LTD. Notes to Consolidated Financial Statements (Continued) 7. Equity Method Investments (Continued) Period November 28, 2017 through December 31, 2017 Revenues and other income: Oil and gas revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $54,615 Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 Total revenues and other income . . . . . . . . . . . . . . . . . . . . . . 54,909 Costs and expenses: Oil and gas production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,509 Depletion and depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,738 Other expenses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19) Total costs and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,228 Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,681 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,588 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,093 Kosmos’ share of net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,046 Basis difference amortization(1) . . . . . . . . . . . . . . . . . . . . . . . . . . 5,812 Equity in earnings—KTIPI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,234 (1) The basis difference, which is associated with oil and gas properties and subject to amortization, has been allocated to the Ceiba Field and Okume Complex. We amortize the basis difference using the unit-of-production method. When evaluating our equity method investments for impairment, we review our ability to recover the carrying amount of such investments or the entity’s ability to sustain earnings that justify its carrying amount. As of December 31, 2017, we determined that we had the ability to recover the carrying amount of our equity method investment in KTIPI. As such, no impairment has been recorded. 127