Kosmos Energy Announces Third Quarter 2026 Results

The extended lending facility has no planned amortization payments until 2031, with $750 million currently drawn.

Rhea-AI Summary

Kosmos Energy (KOS) reported a third-quarter 2026 net loss of $43 million as production increased and debt declined. The loss was $0.07 per diluted share, versus $0.26 a year earlier; adjusted net income was $35 million. Oil and gas revenue reached $410 million, versus $311 million. Net production averaged approximately 69,200 barrels of oil equivalent per day, up approximately 6% year over year, while production expenses fell approximately 31%.

Quarterly operating cash flow was approximately $164 million and non-GAAP free cash flow approximately $90 million. Net debt ended at approximately $2.47 billion, down over $500 million since year-start. Kosmos expects year-end net debt below $2.4 billion. In October, it extended its $1.2 billion reserve-based lending facility to April 2033. The company completed seven Jubilee wells and the Tiberius farm-down, while fourth-quarter Gulf production faces maintenance and hurricane-related downtime.

26 points · 1 major

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0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNet debt reduction exceeded $500 million through third-quarter end; liquidity was approximately $570 million. 29% of market cap
• Moderate pointQuarterly net loss narrowed to $43 million, or $0.07 diluted, from $124 million, or $0.26.
• Moderate pointOil and gas revenue rose to $410.059 million from $310.959 million in third-quarter 2025.
• Moderate pointAdjusted net income was $35 million, or $0.06 per diluted share, in third-quarter 2026.
• Moderate pointNet production rose approximately 6% year over year to approximately 69,200 boepd; approximately 17% excluding Equatorial Guinea.
• Moderate pointProduction expenses fell approximately 31% year over year to $102 million, or $17.72 per barrel equivalent.
• Moderate pointOperating cash flow reached approximately $164 million in the third quarter.
• Moderate pointFree cash flow was approximately $90 million quarterly; three consecutive positive quarters brought year-to-date cash flow to $193 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 net debt target remains approximately 20% lower; Kosmos expects below $2.4 billion and leverage towards 2.0x.
• Moderate point$1.2 billion lending facility extended to April 2033; no planned amortization until 2031 with $750 million drawn. 71% of market cap
• Moderate pointTiberius farm-down completed with Navitas taking 33.33%; consideration includes upfront cash, development funding and future milestone payments.

15 minor points

• Minor point2027 oil hedges cover 8 million barrels with an approximately $68/barrel average floor and $84/barrel average ceiling.
• Minor pointJubilee oil production averaged approximately 84,500 barrels daily gross, approximately 17% above the second quarter.
• Minor pointJubilee drilling campaign completed seven successful infill wells, including the final water injector.
• Minor point. Forward-looking: it has not happened yet and may not happen.2027/28 Jubilee drilling has a secured rig for up to 10 wells, expected to start mid-2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.TEN vessel transition is scheduled for first-quarter 2027; Kosmos expects lower operating costs thereafter.
• Minor pointGTA LNG liftings reached 8.5 gross cargos, slightly above quarterly guidance; nine-month liftings totaled 27.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year GTA LNG liftings are expected at the upper end of the 32–36 gross cargo guidance range.
• Minor point. Forward-looking: it has not happened yet and may not happen.Tiberius development funding is expected to cover Kosmos spending through 2026 and the first half of 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Trailblazer drilling is expected in first-half 2027, the first exploration well under the Shell alliance.
• Minor pointQuarterly exploration expense fell to $4.239 million from $54.948 million a year earlier.
• Minor pointQuarterly depreciation and depletion expense fell to $112.228 million from $141.514 million a year earlier.
• Minor pointQuarterly financing costs, net fell to $53.746 million from $57.919 million a year earlier.
• Minor pointQuarterly income tax expense fell to $15.683 million from $17.827 million a year earlier.
• Minor pointNine-month oil and gas revenue rose to $1,388.040 million from $993.729 million.
• Minor pointNine-month net loss narrowed to $83.809 million, or $0.15 diluted, from $322.645 million, or $0.68.

Negative

• Moderate pointNet debt remained approximately $2.47 billion at third-quarter end, excluding the $63.9 million TEN vessel finance lease liability.
• Moderate pointQuarterly derivatives expense was $133.876 million, versus a $3.646 million gain a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Gulf production faces planned Delta House maintenance, a Kodiak-1 workover and Hurricane Isaias downtime.
• Minor pointQuarterly general and administrative expense rose to $18.682 million from $12.886 million a year earlier.
• Minor pointQuarterly other expenses, net rose to $12.680 million from $6.384 million a year earlier.

7 minor points

• Minor pointAsset sales generated a $339,000 quarterly loss, versus none a year earlier.
• Minor pointCapital expenditure was $85 million quarterly; full-year guidance remains approximately $350 million.
• Minor pointGulf host facility downtime partially offset performance from operated assets during the third quarter.
• Minor pointGTA condensate lifting occurred at fourth-quarter start, with timing slightly impacted by weather.
• Minor point. Forward-looking: it has not happened yet and may not happen.Trailblazer development depends on exploration success before a potential connection to Shell's Appomattox platform.
• Minor pointNine-month derivatives expense was $334.063 million, versus an $18.480 million gain a year earlier.
• Minor pointNine-month income tax expense rose to $97.868 million from $58.382 million.

News Explained

In October, Kosmos completed its reserve-based lending facility amendment: commitments total $1.2 billion, $750 million is drawn, and quarter-end liquidity was $570 million; no planned amortization payments are due until 2031.

Key Figures

Net loss: $43 million Adjusted net income: $35 million Net production: ~69,200 boepd +5 more

Net loss

$43 million

Third quarter 2026

Adjusted net income

$35 million

Third quarter 2026

Net production

~69,200 boepd

Third quarter 2026

Free cash flow

~$90 million

Third quarter 2026

Net debt

~$2.47 billion

At the end of the third quarter of 2026

Liquidity

~$570 million

At the end of the third quarter of 2026

RBL facility

$1.2 billion

Amended and extended in October 2026

Final maturity

April 2033

Amended RBL facility

Previous Earnings Reports

2 past events · Latest: Aug 03

Same Type 2 events

1. Aug 03

   Quarterly earnings

   24h Move

   -6.0%

   Reported net income and adjusted income with production averaging approximately 71,400 boepd.

2. May 05

   Quarterly earnings

   24h Move

   -4.6%

   Reported GAAP and adjusted net losses alongside approximately 74,800 boepd production.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

free cash flow, non-gaap, reserve-based lending, fpso, +1 more

5 terms

free cash flow financial

"free cash flow(1) of approximately $90 million in the third quarter"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

non-gaap financial

"Non-GAAP Financial Measures EBITDAX, Adjusted net income (loss)"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

reserve-based lending financial

"the $1.2 billion reserve-based lending (RBL) facility amendment and extension"

A type of loan where the lender bases how much a company can borrow on the estimated value and future cash flow of its oil and gas reserves, using those reserves as collateral. It matters to investors because changes in commodity prices, production estimates or reserve assessments can quickly shrink the borrowing limit or trigger repayment demands, affecting a company’s cash flow and risk of default — similar to a credit line tied to the value of your home.

fpso technical

"the ownership and operational transition of the FPSO to the partnership"

A FPSO (Floating Production, Storage and Offloading unit) is a ship-like facility that sits offshore to process oil or gas pumped up from under the seabed, store the product, and transfer it to tankers or pipelines. For investors it matters because an FPSO turns remote reserves into cash: it represents a major capital asset and source of revenue but also concentrates operational, maintenance and safety risks that can affect production levels, costs and company valuation.

working interest technical

"At Jubilee (38.6% working interest)"

The working interest is the percentage ownership one party holds in an oil or gas lease that gives them the right to a share of production and also the obligation to pay a proportional share of exploration, development and operating costs. Think of it like owning a slice of a cake but also agreeing to pay part of the bill to bake it: a larger working interest means bigger potential revenue when wells produce, but also larger exposure to costs and liabilities if things go wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS) announced today its financial and operating results for the third quarter of 2026. For the quarter, the Company generated a net loss of $43 million, or $0.07 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net income⁽¹⁾ of $35 million, or $0.06 per diluted share for the third quarter of 2026.

THIRD QUARTER 2026 AND POST QUARTER END HIGHLIGHTS

• Net Production⁽²⁾: ~69,200 barrels of oil equivalent per day (boepd), up ~6% versus third quarter 2025 (~17% excluding Equatorial Guinea)
  
  
• Revenues: $410 million, or $71.39 per barrel of oil equivalent (boe) (excluding the impact of derivative cash settlements)
  
  
• Production expense: $102 million (or $17.72 per boe), a reduction in absolute production expenses of ~31% compared to third quarter 2025
  
  
• Capital expenditures: $85 million
  
  
• Jubilee 2025/26 drilling campaign completed with seven wells successfully drilled during the program
  
  
• Completed the Tiberius farm-down, securing a mix of upfront cash consideration, carry for future capital expenditure and future milestone payments
  
  
• Reduced net debt⁽¹⁾ by over $500 million through the end of the third quarter and are on track to achieve our 20% debt reduction target in 2026
  
  
• Successfully completed the $1.2 billion reserve-based lending (RBL) facility amendment and extension, further addressing near-term maturities
  
  

Commenting on the Company’s third quarter 2026 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: “Kosmos continued to make meaningful progress during the third quarter against the four objectives we established at the beginning of the year: increase production, lower costs, reduce debt and advance our quality growth opportunities. Through a combination of strong operational execution, reduced costs, disciplined capital allocation and proactive financing, we continue to strengthen our business.

In Ghana, the 2025/26 Jubilee drilling campaign successfully delivered seven wells and demonstrated the continued quality of the infill opportunities of this midlife asset. At GTA, production continues to be strong with solid reservoir performance. Across the portfolio, we remain focused on maximizing value from our existing assets while investing selectively in growth opportunities with attractive returns.

Financially, 2026 continues to represent a year of significant progress for Kosmos. Since the beginning of the year, we have materially improved liquidity, reduced debt, extended maturities, lowered leverage and strengthened the overall credit profile of the company. With the RBL re-financing complete, we have further increased our financial resilience and will now look to address our 2028 bond maturities.

Looking ahead, our focus remains clear and we expect to make continued progress against our four strategic priorities, entering 2027 in a much stronger position with multiple catalysts across the portfolio to create additional value.”

FINANCIAL UPDATE

The Company generated net cash provided by operating activities of approximately $164 million and free cash flow⁽¹⁾ of approximately $90 million in the third quarter. Kosmos has now delivered three consecutive quarters of positive free cash flow with year-to-date free cash flow of $193 million, reflecting continued operational performance, higher realized pricing and disciplined capital spending. Kosmos exited the third quarter of 2026 with approximately $2.47 billion of net debt⁽¹⁾ and approximately $570 million of liquidity.

In October, Kosmos completed the amendment and extension of the RBL with a facility size and total commitments of $1.2 billion. The final maturity has been extended to April 2033. Following the significant reduction in debt year-to-date and $750 million currently drawn on the facility, there are no planned amortization payments until 2031.

With strong operational performance for the year and continued debt reduction, we are on track to achieve our ~20% net debt reduction target for 2026 with year-end net debt expected to be below $2.4 billion and leverage expected to fall towards 2.0x.

Net capital expenditure for the third quarter of 2026 was $85 million, in line with guidance. Full year 2026 capital expenditure guidance of approximately $350 million is unchanged.

Kosmos has continued to take advantage of higher oil prices to add further hedges for 2027. The Company has 8 million barrels of oil hedged for 2027 with an average floor of approximately $68/barrel and an average ceiling of approximately $84/barrel.

OPERATIONAL UPDATE

Production

Total net production⁽²⁾ in the third quarter of 2026 averaged approximately 69,200 boepd, in line with guidance. Sales for the third quarter of 2026 were approximately 62,400 boepd.

The Company exited the quarter in a net underlift position of approximately 1.1 mmboe.

Ghana

Production in Ghana averaged approximately 40,500 boepd net in the third quarter of 2026, which included gas production of approximately 6,800 boepd. 2.75 Jubilee cargo liftings took place in the third quarter, in line with guidance.

At Jubilee (38.6% working interest), oil production in the third quarter averaged approximately 84,500 bopd gross, approximately 17% higher than the second quarter. During the quarter, Kosmos and its partners completed the 2025/26 drilling campaign, which delivered seven successful infill wells. The final well in the program, a water injector, was drilled and completed during the third quarter. With the drilling activity in 2026 now concluded, the Company continues to work closely with the operator to drive operational excellence to mitigate decline ahead of the 2027/28 drilling campaign, including improved water injection performance, adding gas lift to the west side of the field, production system optimization and high FPSO uptime. Importantly, in September, the partnership secured the Noble Faye Kozack rig for the 2027/28 drilling program of up to 10 wells, which is expected to start in mid-2027.

At TEN (20.4% working interest), oil production averaged approximately 14,600 bopd gross for the third quarter, in line with expectations. Preparations continue for the ownership and operational transition of the FPSO to the partnership, scheduled for the first quarter of 2027, which is expected to drive a further reduction in operating costs for TEN production thereafter.

Mauritania and Senegal

Greater Tortue Ahmeyim ("GTA") continued to demonstrate stable operations during the third quarter, delivering cargos slightly ahead of guidance, while maintaining strong reservoir performance.

GTA production averaged approximately 14,600 boepd net during the quarter, or approximately 2.44 mtpa of LNG equivalent gross, reflecting warmer seasonal temperatures as previously guided. The partnership lifted 8.5 gross LNG cargos in the third quarter, slightly above guidance, bringing the total number of gross LNG cargos for the nine months ended September 30 to 27. Full year gross LNG cargo liftings are expected to be at the upper end of the 32-36 guidance range. The third gross condensate cargo of the year was lifted by Kosmos and the national oil companies of Mauritania and Senegal at the beginning of the fourth quarter, with timing slightly impacted by weather.

Work continues to advance domestic gas initiatives and Phase 1+ development planning, with several positive engagements with our host governments and partners in recent weeks regarding the future development of the resource.

In Senegal, Réseau Gazier du Sénégal, the operator of the gas pipeline, reported that the first phase of the onshore pipeline (the "Northern Segment") to connect the GTA hub to the 230 megawatt Gandon power plant is over 25% complete as of October 2026.

Gulf of America

Production in the Gulf of America averaged approximately 14,100 boepd net (~83% oil) during the third quarter, in line with guidance, reflecting continued strong performance from the Company's operated assets, partially offset by host facility downtime.

In the fourth quarter, Gulf of America production is expected to be impacted by planned Delta House platform maintenance (Odd Job host facility), a workover on the Kodiak-1 well and downtime associated with Hurricane Isaias, and has been reflected in the Company's fourth quarter guidance.

On the Kosmos-operated Tiberius project, Kosmos successfully completed a highly competitive farm out process in July, with Navitas becoming a 33.33% partner in the project alongside Kosmos (33.34%) and Occidental (33.33%, as well as an owner and operator of the host facility, Lucius). The consideration for the farm down was a mix of upfront cash, carry for future development capital expenditure, and future milestone payments, preserving significant future upside and reducing near-term capital requirements. The carry is expected to cover Kosmos' spend on the project through 2026 and the first half of 2027.

Kosmos continues to mature several high-return growth opportunities, including Trailblazer, while maintaining a disciplined approach to capital allocation. Trailblazer (~200 mmboe gross resource) is the first exploration well to be drilled through the exploration alliance with Shell announced earlier in the year. Drilling is expected to commence in the first half of 2027. In the event of success, Trailblazer could be tied back into Shell's nearby Appomattox platform with Kosmos designated as development operator.

(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure. Net debt excludes $63.9 million TEN FPSO finance lease liability. For purposes of the debt cover ratio calculation under the RBL Facility, the finance lease liability is included in net debt.
(2) Production means net entitlement volumes. In Ghana and Mauritania and Senegal this means those volumes net to Kosmos' working interest or participating interest and net of royalty or production sharing contract effect. In the Gulf of America, this means those volumes net to Kosmos' working interest and net of royalty.

Conference Call and Webcast Information

Kosmos will host a conference call and webcast to discuss third quarter 2026 financial and operating results today, November 2, 2026, at 10:00 a.m. Central time (11:00 a.m. Eastern time). The live webcast of the event can be accessed on the Investors page of Kosmos’ website at http://investors.kosmosenergy.com/investor-events. The dial-in telephone number for the call is +1-800-715-9871. Callers in the United Kingdom should call 0800 260 6466. Callers outside the United States should dial +1-646-307-1963. A replay of the webcast will be available on the Investors page of Kosmos’ website for approximately 90 days following the event.

About Kosmos Energy

Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.

Non-GAAP Financial Measures

EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines EBITDAX as Net income (loss) plus (i) exploration expense, (ii) depletion, depreciation and amortization expense, (iii) equity based compensation expense, (iv) unrealized (gain) loss on commodity derivatives (realized losses are deducted and realized gains are added back), (v) (gain) loss on sale of oil and gas properties, (vi) interest (income) expense, (vii) income taxes, (viii) debt modifications and extinguishments, (ix) doubtful accounts expense and (x) similar other material items which management believes affect the comparability of operating results. The Company defines Adjusted net income (loss) as Net income (loss) adjusted for certain items that impact the comparability of results. The Company defines free cash flow as net cash provided by operating activities less Oil and gas assets, Other property, and certain other items that may affect the comparability of results and excludes non-recurring activity such as acquisitions, divestitures and National Oil Company ("NOC") financing. NOC financing refers to the amounts funded by Kosmos under the Carry Advance Agreements that the Company has in place with the national oil companies of each of Mauritania and Senegal related to the financing of the respective national oil companies’ share of certain development costs at Greater Tortue Ahmeyim. The Company defines net debt as total long-term debt less cash and cash equivalents and total restricted cash.

We believe that EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, Net debt and other similar measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the oil and gas sector and will provide investors with a useful tool for assessing the comparability between periods, among securities analysts, as well as company by company. EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt as presented by us may not be comparable to similarly titled measures of other companies.

This release also contains certain forward-looking non-GAAP financial measures, including free cash flow. Due to the forward-looking nature of the aforementioned non-GAAP financial measures, management cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Amounts excluded from these non-GAAP measures in future periods could be significant.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Kosmos Energy Ltd. Consolidated Statements of Operations (In thousands, except per share amounts, unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Revenues and other income:
Oil and gas revenue		$	410,059			$	310,959			$	1,388,040			$	993,729
Gain (loss) on sale of assets			(339	)			—				9,082				600
Other income, net			160				270				690				849
Total revenues and other income			409,880				311,229				1,397,812				995,178
Costs and expenses:
Oil and gas production			101,756				147,696				411,780				558,122
Exploration expenses			4,239				54,948				27,180				68,686
General and administrative			18,682				12,886				65,655				58,215
Depletion, depreciation and amortization			112,228				141,514				352,602				413,449
Interest and other financing costs, net			53,746				57,919				166,248				164,595
Derivatives, net			133,876				(3,646	)			334,063				(18,480	)
Other expenses, net			12,680				6,384				26,225				14,854
Total costs and expenses			437,207				417,701				1,383,753				1,259,441
Income (loss) before income taxes			(27,327	)			(106,472	)			14,059				(264,263	)
Income tax expense			15,683				17,827				97,868				58,382
Net loss		$	(43,010	)		$	(124,299	)		$	(83,809	)		$	(322,645	)
Net loss per share:
Basic		$	(0.07	)		$	(0.26	)		$	(0.15	)		$	(0.68	)
Diluted		$	(0.07	)		$	(0.26	)		$	(0.15	)		$	(0.68	)
Weighted average number of shares used to compute net loss per share:
Basic			595,470				478,254				565,363				477,344
Diluted			595,470				478,254				565,363				477,344

Kosmos Energy Ltd. Condensed Consolidated Balance Sheets (In thousands, unaudited)
		September 30,				December 31,
		2026				2025
Assets
Current assets:
Cash and cash equivalents		$	103,749			$	91,518
Receivables, net			96,853				103,472
Other current assets			180,755				232,884
Total current assets			381,357				427,874
Property and equipment, net			3,309,462				3,733,784
Other non-current assets			572,757				534,968
Total assets		$	4,263,576			$	4,696,626
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	141,816			$	202,555
Accrued liabilities			376,130				237,609
Current maturities of long-term debt			95,303				132,143
Other current liabilities			97,263				—
Total current liabilities			710,512				572,307
Long-term liabilities:
Long-term debt, net			2,492,138				2,920,616
Deferred tax liabilities			143,340				305,924
Other non-current liabilities			248,404				369,189
Total long-term liabilities			2,883,882				3,595,729
Total stockholders’ equity			669,182				528,590
Total liabilities and stockholders’ equity		$	4,263,576			$	4,696,626

Kosmos Energy Ltd. Condensed Consolidated Statements of Cash Flow (In thousands, unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Operating activities:
Net loss		$	(43,010	)		$	(124,299	)		$	(83,809	)		$	(322,645	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depletion, depreciation and amortization (including deferred financing costs)			114,910				143,403				360,581				419,111
Deferred income taxes			(34,019	)			(950	)			(35,287	)			686
Unsuccessful well costs and leasehold impairments			354				51,211				14,313				51,373
Change in fair value of derivatives			107,014				(2,792	)			369,306				(10,675	)
Cash settlements on derivatives, net(1)			(12,071	)			(3,480	)			(210,755	)			2,801
Equity-based compensation			4,347				5,302				18,411				21,009
(Gain) loss on sale of assets			339				—				(9,082	)			(600	)
Debt modifications and extinguishments			65				—				(1,016	)			—
Other			(4,046	)			(2,986	)			(24,805	)			(11,492	)
Changes in assets and liabilities:
Net changes in working capital			30,101				(92,977	)			47,693				(50,856	)
Net cash provided by (used in) operating activities			163,984				(27,568	)			445,550				98,712
Investing activities
Oil and gas assets			(64,525	)			(71,367	)			(228,002	)			(244,133	)
Proceeds on sale of assets			—				—				127,034				—
Notes receivable and other investing activities			—				—				(11,598	)			(86,791	)
Net cash used in investing activities			(64,525	)			(71,367	)			(112,566	)			(330,924	)
Financing activities:
Borrowings under long-term debt			27,000				175,000				151,167				375,000
Payments on long-term debt			(65,110	)			(50,000	)			(569,848	)			(150,000	)
Net proceeds from issuance of senior notes and bonds			—				—				350,000				—
Repurchase and redemption of senior notes			(50,000	)			—				(397,184	)			—
Net proceeds from issuance of common stock			—				—				206,440				—
Payments on finance lease			(9,319	)			—				(24,270	)			—
Other financing costs			(64	)			—				(8,836	)			(1	)
Net cash provided by (used in) financing activities			(97,493	)			125,000				(292,531	)			224,999
Net increase (decrease) in cash, cash equivalents and restricted cash			1,966				26,065				40,453				(7,213	)
Cash, cash equivalents and restricted cash at beginning of period			156,231				51,999				117,744				85,277
Cash, cash equivalents and restricted cash at end of period		$	158,197			$	78,064			$	158,197			$	78,064

(1)	Cash settlements on commodity hedges were $(39.8) million and $(2.3) million for the three months ended September 30, 2026 and 2025, respectively, and $(175.5) million and $7.3 million for the nine months ended September 30, 2026 and 2025, respectively.

Kosmos Energy Ltd. EBITDAX (In thousands, unaudited)
	Three Months Ended								Nine months ended								Twelve Months Ended
	September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025				September 30, 2026
Net loss	$	(43,010	)		$	(124,299	)		$	(83,809	)		$	(322,645	)		$	(460,950	)
Exploration expenses		4,239				54,948				27,180				68,686				182,110
Depletion, depreciation and amortization		112,228				141,514				352,602				413,449				495,927
Impairment of long-lived assets		—				—				—				—				177,563
Equity-based compensation		4,347				5,302				18,411				21,009				25,355
Derivatives, net		133,876				(3,646	)			334,063				(18,480	)			298,878
Cash settlements on commodity derivatives		(39,790	)			(2,324	)			(175,513	)			7,340				(172,459	)
Other expenses, net		12,680				6,384				26,225				14,854				24,862
(Gain) loss on sale of assets		339				—				(9,082	)			(600	)			(10,682	)
Interest and other financing costs, net		53,746				57,919				166,248				164,595				225,083
Income tax expense		15,683				17,827				97,868				58,382				104,691
EBITDAX	$	254,338			$	153,625			$	754,193			$	406,590			$	890,378
Pro Forma Adjustment - TEN FPSO Lease and EG Divestiture(1)		28,964								27,324								41,286
Pro Forma EBITDAX		283,302								781,517								931,664

(1)	Adjustment to present Pro Forma EBITDAX for the impact of the TEN FPSO finance lease transaction on oil and gas production expense for the periods presented and for the impact of the oil revenues and expenses and results of operations associated with the interest in the Ceiba Field and Okume Complex production assets located in Block G offshore Equatorial Guinea sold to Panoro Energy ASA for the respective period. The sale closed on June 16, 2026.

The following table presents our net debt as of September 30, 2026 and December 31, 2025:

		September 30,				December 31,
		2026(1)				2025
Total long-term debt		$	2,631,566			$	3,100,274
Cash and cash equivalents			103,749				91,518
Total restricted cash			54,448				26,226
Net debt		$	2,473,369			$	2,982,530

(1)	Excludes $63.9 million TEN FPSO finance lease liability.

Kosmos Energy Ltd. Adjusted Net Income (Loss) (In thousands, except per share amounts, unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2026				2025				2026				2025
Net loss	$	(43,010	)		$	(124,299	)		$	(83,809	)		$	(322,645	)
Derivatives, net		133,876				(3,646	)			334,063				(18,480	)
Cash settlements on commodity derivatives		(39,790	)			(2,324	)			(175,513	)			7,340
(Gain) loss on sale of assets		339				—				(9,082	)			(600	)
Other expenses, net		12,619				6,358				26,119				14,386
Write-off of leasehold costs		—				—				13,181				—
Impairment of suspended well costs		—				51,060				—				51,060
Debt modifications and extinguishments		65				—				(1,016	)			—
Total selected items before tax		107,109				51,448				187,752				53,706
Income tax (expense) benefit on adjustments(1)		(29,106	)			575				(36,394	)			(1,459	)
Adjusted net income (loss)	$	34,993				(72,276	)			67,549				(270,398	)
Net loss per diluted share	$	(0.07	)		$	(0.26	)		$	(0.15	)		$	(0.68	)
Derivatives, net		0.22				(0.01	)			0.59				(0.04	)
Cash settlements on commodity derivatives		(0.07	)			—				(0.31	)			0.02
(Gain) loss on sale of assets		—				—				(0.02	)			—
Other expenses, net		0.03				0.01				0.05				0.03
Write-off of leasehold costs		—				—				0.02				—
Impairment of suspended well costs		—				0.11				—				0.10
Total selected items before tax		0.18				0.11				0.33				0.11
Income tax (expense) benefit on adjustments(1)		(0.05	)			—				(0.06	)			—
Adjusted net income (loss) per diluted share	$	0.06			$	(0.15	)		$	0.12			$	(0.57	)
Weighted average number of diluted shares		595,470				478,254				565,363				477,344

(1)	Income tax expense is calculated at the statutory rate in which such item(s) reside. Statutory rates for the U.S., Equatorial Guinea and Ghana are 21%, 25% and 35%, respectively.

Kosmos Energy Ltd. Free Cash Flow (In thousands, unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2026				2025				2026				2025
Reconciliation of free cash flow:
Net cash provided by (used in) operating activities	$	163,984			$	(27,568	)		$	445,550			$	98,712
Net cash used for oil and gas assets		(64,525	)			(71,367	)			(228,002	)			(244,133	)
Payments on finance lease		(9,319	)			—				(24,270	)			—
Free cash flow		90,140				(98,935	)			193,278				(145,421	)

Kosmos Energy Ltd. Operational Summary (In thousands, except barrel and per barrel data, unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2026				2025				2026				2025
Net Volume Sold
Oil (MMBbl)		3.691				3.799				12.675				12.822
Gas (Bcf)		11.749				9.712				36.770				21.004
NGL (MMBbl)		0.095				0.097				0.587				0.301
Total (MMBoe)		5.744				5.515				19.390				16.624
Total (MBoepd)		62.437				59.942				71.027				60.893
Revenue
Oil sales	$	326,899			$	255,661			$	1,120,201			$	880,584
Gas sales		81,377				53,761				237,082				107,439
NGL sales		1,783				1,537				30,757				5,706
Total oil and gas revenue		410,059				310,959				1,388,040				993,729
Cash settlements on commodity derivatives		(39,790	)			(2,324	)			(175,513	)			7,340
Realized revenue	$	370,269			$	308,635			$	1,212,527			$	1,001,069
Oil and Gas Production Costs(1)	$	101,756			$	147,696			$	411,780			$	558,122
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl	$	88.57			$	67.30			$	88.38			$	68.68
Average gas sales price per Mcf		6.93				5.54				6.45				5.12
Average NGL sales price per Bbl		18.77				15.85				52.40				18.96
Average total sales price per Boe		71.39				56.39				71.58				59.78
Cash settlements on commodity derivatives per Boe		(6.93	)			(0.42	)			(9.05	)			0.44
Realized revenue per Boe		64.46				55.97				62.53				60.22
Oil and gas production costs per Boe	$	17.72			$	26.78			$	21.24			$	33.57
Oil and gas production costs per Boe ex. M/S (1)	$	10.08			$	19.51			$	15.38			$	24.67

(1)	Includes $56.1 million and $59.4 million for the three months ended September 30, 2026 and 2025, respectively, and $177.2 million and $186.6 million for the nine months ended September 30, 2026 and 2025, respectively of oil and gas production costs related to the LNG production at the GTA Phase 1 project in Mauritania and Senegal. GTA Phase 1 project LNG sales volumes for the three months ended September 30, 2026 and 2025 were 1.208 MMBoe and 0.989 MMBoe, respectively, and for the nine months ended September 30, 2026 and 2025 were 4.138 MMBoe and 1.563 MMBoe, respectively. First LNG was achieved in February 2025 and the first LNG cargo was successfully completed in April 2025.

Kosmos was underlifted by approximately 1.1 million barrels of oil equivalent (mmboe) as of September 30, 2026.

Kosmos Energy Ltd. Hedging Summary As of September 30, 2026(1) (Unaudited)
							Weighted Average Price per Bbl
		Index		MBbl			Floor(2)			Sold Put			Ceiling
2026:
Three-way collars FY26		Dated Brent		500			60.00			50.00			75.51
Swaps FY26		Dated Brent		750			70.62			—			—
Swaps FY26		WTI		375			64.83			—			—
2027:
Three-way collars 1H27		Dated Brent		2,000			70.00			55.00			85.00
Three-way collars FY27		Dated Brent		2,000			60.00			47.50			75.00
Two-way collars FY27		Dated Brent		3,000			68.33			—			93.33
Three-way collars FY27		WTI		1,000			70.00			55.00			90.00

(1)	Please see the Company’s filed 10-Q for additional disclosure on hedging material. Includes hedging position as of September 30, 2026 and hedges put in place through filing date.
(2)	“Floor” represents floor price for collars and strike price for purchased puts.

Note: Excludes 0.3 MMBbls of Dated Brent sold calls with a strike price of $100.00 per Bbl and 0.5 MMBbls of Dated Brent sold puts with a strike price of $55.00 per Bbl in 2026. Excludes 0.4 MMBbls of WTI sold puts with a strike price of $50.00 per Bbl in 2026.

Fourth Quarter 2026 Guidance
	4Q 2026
Production(1,2,3)	60,000 - 64,000 boe per day
Opex	$18.00 - $20.00 per boe
DD&A	$17.50 - $19.50 per boe
G&A(~61% cash)	$10-$15 million
Exploration Expense(4)	~$5 million
Net Interest Expense	$50 - $55 million
Tax	$11.00 - $15.00 per boe
Capital Expenditure	$50 - $75 million

Note: Ghana / Mauritania & Senegal revenue calculated by number of cargos. Guidance excludes Equatorial Guinea from June 17, 2026 following the sale of the assets.
(1)	4Q 2026 net cargo forecast – Ghana: 3 cargos. Average cargo sizes 950,000 barrels of oil.
(2)	4Q 2026 gross LNG cargo forecast - Mauritania & Senegal: 8-9 cargos. Average cargo size ~170,000 m3 with Kosmos NRI of ~24%. Kosmos expects 0.4 net condensate cargos in 4Q 2026
(3)	Gulf of America Production: 4Q 2026 forecast 10,000 - 11,500 boe per day. Oil/Gas/NGL split for 2026: ~83%/~10%/~7%.
(4)	Excludes leasehold impairments and dry hole costs.

Source: Kosmos Energy Ltd.

Investor Relations
Jamie Buckland
+44 (0) 203 954 2831
jbuckland@kosmosenergy.com

Media Relations
Thomas Golembeski
+1-214-445-9674
tgolembeski@kosmosenergy.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Kosmos Energy's third-quarter 2026 earnings?

Kosmos reported a $43 million net loss, or $0.07 per diluted share, for third-quarter 2026. Adjusted net income, a non-GAAP measure excluding certain items affecting comparability, was $35 million, or $0.06 per diluted share.

What changed in Kosmos Energy's reserve-based lending facility?

Kosmos completed an amendment and extension in October, with $1.2 billion in facility size and total commitments and a final maturity of April 2033. With $750 million currently drawn, there are no planned amortization payments until 2031.

Does Kosmos Energy's reported net debt include the TEN vessel lease?

Reported net debt excludes the $63.9 million TEN vessel finance lease liability. That liability is included in net debt for the debt cover ratio calculation under the reserve-based lending facility.

What ownership interests remain after Kosmos Energy's Tiberius farm-down?

Kosmos holds 33.34% of Tiberius, alongside Navitas and Occidental at 33.33% each. Occidental is also an owner and operator of Lucius, the host facility. The transaction consideration includes upfront cash, funding for future development spending and future milestone payments.