b'Item 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe following discussion and analysis contains forward-looking statements that involve risks anduncertainties. Our actual results may differ materially from those discussed in the forward-looking statementsas a result of various factors, including, without limitation, those set forth in Cautionary StatementRegarding Forward-Looking Statements and Item 1A. Risk Factors. The following discussion of ourfinancial condition and results of operations should be read in conjunction with our consolidated financialstatements and the notes thereto included elsewhere in this annual report on Form 10-K.OverviewKosmos is a full-cycle deepwater independent oil and gas exploration and production companyfocused along the Atlantic Margins. Our key assets include production offshore Ghana, EquatorialGuinea and U.S. Gulf of Mexico, as well as a world-class gas development offshore Mauritania andSenegal. We also maintain a sustainable exploration program balanced between proven basininfrastructure-led exploration (Equatorial Guinea and U.S. Gulf of Mexico), emerging basins(Mauritania, Senegal and Suriname) and frontier basins (Cote dIvoire, Namibia and Sao Tome andPrincipe).Recent DevelopmentsShell AllianceIn October 2018, Kosmos entered into a strategic exploration alliance with Shell ExplorationCompany B.V. (Shell) to jointly explore in Southern West Africa. Initially the alliance will focus onNamibia where Kosmos has completed a farm-in to Shells acreage in PEL 39, and Sao Tome &Principe where we have entered into exclusive negotiations for Shell to take an interest in Kosmosacreage in Blocks 5, 6, 11, and 12. As part of the alliance, the two companies will also jointly evaluateopportunities in adjacent geographies. This alliance is consistent with Kosmos strategy of partneringwith supermajors to leverage complementary skill sets. Shell has deep expertise in carbonate plays,while Kosmos brings significant knowledge of the Cretaceous in West Africa. Furthermore, by workingwith Shell, Kosmos has a partner with the expertise to move exploration successes efficiently throughthe development stage.CorporateIn February 2018, the Company amended and restated our commercial debt facility (the Facility)with a total commitment of $1.7 billion after the election to exercise $0.2 billion of additionalcommitments in December 2018, with additional commitments up to $0.3 billion being available if theexisting financial institutions increase their commitments or if commitments from new financialinstitutions are added. As a result of the financing, we recorded a $4.1 million loss on theextinguishment of debt in the first quarter of 2018.In August 2018, we amended and restated the Corporate Revolver from a number of financialinstitutions, maintaining the borrowing capacity at $400.0 million, extending the maturity date fromNovember 2018 to May 2022 and lowering the margin 100 basis points to 5%. This also results in lowercommitment fees on the undrawn portion of the total commitments, which is 30% per annum of therespective margin. The Corporate Revolver is available for general corporate purposes and for oil andgas exploration, appraisal and development programs.See Liquidity and Capital Resources for additional information regarding the Facility and theCorporate Revolver.Our revolving letter of credit facility agreement (LC Facility) has flexibility that allows us toincrease or decrease the available amount as needed if the existing lender increases its commitment or75'