KOSMOS ENERGY LTD. Notes to Consolidated Financial Statements (Continued) 9. Derivative Financial Instruments (Continued) Oil Derivative Contracts The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average Dated Brent prices per Bbl for those contracts as of December 31, 2017. Volumes are net of any offsetting derivative contracts entered into. Weighted Average Dated Brent Price per Bbl Net Deferred Premium Term Type of Contract MBbl Payable Swap Sold Put Floor Ceiling Call 2018: January—December . . . . . . Swap with puts 2,000 $ — $54.32 $40.00 $ — $ — $ — July—December . . . . . . . . . Swap with puts 2,000 — 57.96 45.00 — — — January—June . . . . . . . . . . Swaps 1,000 — 57.25 — — — — January—December . . . . . . Three-way collars 2,913 0.74 — 41.57 56.57 65.90 — January—December . . . . . . Four-way collars 3,000 1.06 — 40.00 50.00 61.33 70.00 January—December . . . . . . Sold calls(1) 2,000 — — — — 65.00 — 2019: January—December . . . . . . Three-way collars 6,500 $0.18 $ — $41.54 $51.54 $63.80 $ — January—December . . . . . . Two-way collars 2,000 1.62 — — 55.00 65.00 — January—December . . . . . . Sold calls(1) 913 — — — — 80.00 — (1) Represents call option contracts sold to counterparties to enhance other derivative positions. In January 2018, we entered into three-way costless collar contracts for 1.0 MMBbl from January 2019 through December 2019 with a sold put price of $45.00, a floor price of $55.00 per barrel and a ceiling price of $72.90 per barrel. The contracts are indexed to Dated Brent prices. In February 2018, we sold 2.0 MMBbl of put contracts from January 2019 through December 2019 with a strike of $47.50 per barrel. We used part of the proceeds to increase our upside exposure by purchasing 1.0 MMBbl of calls in the second half of 2018 with a strike of $70.00 per barrel. These contracts are indexed to Dated Brent prices and have a net deferred premium receivable of $3.1 million. Interest Rate Derivative Contracts The following table summarizes our capped interest rate swaps whereby we pay a fixed rate of interest if LIBOR is below the cap, and pay the market rate less the spread between the cap (sold call) and the fixed rate of interest if LIBOR is above the cap as of December 31, 2017: Weighted Average Term Type of Contract Floating Rate Notional Swap Sold Call (In thousands) January 2018—December 2018 . . . . Capped swap 1-month LIBOR $200,000 1.23% 3.00% See Note 10—Fair Value Measurements for additional information regarding the Company’s derivative instruments. 133