Kosmos Energy narrows Q3 2026 net loss to $43M
Year-to-date free cash flow was $193.278 million, while net debt stood at $2,473.369 million on September 30, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Kosmos Energy Ltd. reported third-quarter 2026 revenue of $410.059 million, versus $310.959 million a year earlier. Net loss was $43.010 million, compared with $124.299 million; adjusted net income, a non-GAAP measure, was $34.993 million, versus an adjusted net loss of $72.276 million. Net production averaged approximately 69,200 boe per day. Operating cash flow was $163.984 million and free cash flow was $90.140 million.
Net debt was $2,473.369 million at September 30, 2026, excluding the $63.9 million TEN FPSO finance lease liability; liquidity was approximately $570 million. In October, Kosmos completed a $1.2 billion reserve-based lending facility amendment and extension, extending final maturity to April 2033. The company reported $750 million drawn, with no planned amortization payments until 2031. Full-year 2026 capital expenditure guidance remains approximately $350 million. Fourth-quarter production guidance is 60,000–64,000 boe per day and reflects planned maintenance, a Kodiak-1 workover and Hurricane Isaias downtime. Kosmos also completed the Tiberius farm-down for upfront cash, future capital carry and milestone payments.
3 points · 0 major0 major · 1 point
How this balance works
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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter revenue: $410.059 million, versus $310.959 million a year earlier.
- Moderate pointFree cash flow was $90.140 million, versus negative $98.935 million in 2025.
- Moderate pointNet loss narrowed to $43.010 million from $124.299 million.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Planned fourth-quarter downtime accompanies production guidance of 60,000–64,000 boe per day.
Filing Explained
The Tiberius carry is expected to cover project spending through the first half of 2027, lowering Kosmos’s near-term capital requirements.
Kosmos's third-quarter results release reports eight million barrels of oil hedged for
The completed Tiberius farm-down includes a carry Kosmos expects to cover its project spending through the first half of
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Oil and gas revenue: $410.059 million
Net loss: $43.010 million loss
Adjusted net income: $34.993 million
+5 more
8 metrics
Oil and gas revenue
$410.059 million
Three months ended September 30, 2026; $310.959 million in 2025
Net loss
$43.010 million loss
Three months ended September 30, 2026; $124.299 million loss in 2025
Adjusted net income
$34.993 million
Third quarter 2026; compared with an adjusted net loss of $72.276 million in 2025; non-GAAP
Net cash provided by operating activities
$163.984 million
Three months ended September 30, 2026; compared with $27.568 million used in 2025
Free cash flow
$90.140 million
Third quarter 2026; compared with negative $98.935 million in 2025; non-GAAP
Net debt
$2,473.369 million
As of September 30, 2026; excludes the $63.9 million TEN FPSO finance lease liability
Net production
Approximately 69,200 boe per day
Third quarter 2026; approximately 6% higher than third quarter 2025
Reserve-based lending facility size and total commitments
$1.2 billion
Amended and extended in October 2026
Key Terms
reserve-based lending (RBL) facility, net underlift, EBITDAX, three-way collars, +1 more
5 terms
reserve-based lending (RBL) facility financial
"reserve-based lending (RBL) facility amendment and extension"
A reserve-based lending (RBL) facility is a credit line for oil and gas companies where lenders base how much they will lend on the estimated value of the company’s proved hydrocarbon reserves. Think of it like a home equity line that uses an appraisal of your house instead of paychecks: as reserve estimates, commodity prices or production change, the available borrowing limit can rise or fall. Investors watch RBLs because they determine a company’s short-term liquidity, borrowing capacity and bankruptcy risk.
net underlift technical
"exited the quarter in a net underlift position"
EBITDAX financial
"Company defines EBITDAX as Net income (loss) plus"
EBITDAX is a measure of a company's operating profit that adds back interest, taxes, depreciation, amortization and exploration costs to net income. Think of it as the cash-generating power of a business before financing, tax effects, non-cash accounting charges and the variable cost of searching for new reserves—useful for comparing companies whose exploration spending or accounting treatments differ. Investors use it to assess core operating performance and short-term cash flow potential without those distortions.
three-way collars financial
"Three-way collars FY27"
A three-way collar is an investment setup that combines owning a stock with three option contracts arranged to create a protected price range: one option limits losses, one caps gains, and a third adjusts the trade’s cost or protection level. Think of it like insuring a car where you set a minimum payout if it’s damaged, agree to accept a fixed resale price if it’s sold, and add a rider to lower your premium or tweak coverage. For investors, it’s a cost-conscious way to limit downside while accepting some cap on upside, useful for managing risk without fully selling a holding.
net entitlement volumes technical
"Production means net entitlement volumes"
Earnings Snapshot
Revenue: $410.059 million · Guidance included
Third quarter of 2026
Revenue
$410.059 million
Compared with $310.959 million in third quarter 2025
Net loss
$43.010 million loss
Compared with $124.299 million loss in third quarter 2025
Adjusted net income
$34.993 million
Compared with adjusted net loss of $72.276 million in third quarter 2025; non-GAAP
Guidance
Full-year 2026 capital expenditure guidance remains approximately $350 million; year-end net debt is expected below $2.4 billion and leverage is expected to fall towards 2.0x.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were KOS's third-quarter 2026 revenue and earnings?
KOS reported third-quarter 2026 revenue of $410.059 million, net loss of $43.010 million, and adjusted net income of $34.993 million. The comparable 2025 quarter had revenue of $310.959 million, net loss of $124.299 million, and adjusted net loss of $72.276 million; adjusted results are non-GAAP.
What are the terms of KOS's amended RBL facility?
Kosmos completed a $1.2 billion reserve-based lending facility amendment and extension in October 2026, extending final maturity to April 2033. The company reported $750 million drawn and no planned amortization payments until 2031.
What oil hedges does KOS have for 2027?
Kosmos reported 8 million barrels of oil hedged for 2027, with an average floor of approximately $68 per barrel and an average ceiling of approximately $84 per barrel.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in its Charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) | (Zip Code) | ||||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered: | ||||||||||||
| London Stock Exchange | ||||||||||||||
Registrant’s telephone number, including area code: +1 214 445 9600
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 2, 2026, Kosmos Energy Ltd. (the “Company”) issued a news release announcing results for the fiscal quarter ended September 30, 2026. A copy of the news release issued by the Company is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Form 8-K and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section.
Item 7.01 Regulation FD Disclosure.
On November 2, 2026, the Company issued a news release announcing results for the fiscal quarter ended September 30, 2026. A copy of the news release issued by the Company is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Form 8-K and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section.
Item 9.01 Financial Statements and Exhibits.
(d) | Exhibits. | The following exhibit is furnished as part of this current report on Form 8-K: | ||||||
| 99.1 | News Release dated November 2, 2026 announcing results for the fiscal quarter ended September 30, 2026 | |||||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 2, 2026
| KOSMOS ENERGY LTD. | |||||||||||
| By: | /s/ NEAL D. SHAH | ||||||||||
| Neal D. Shah | |||||||||||
| Senior Vice President and Chief Financial Officer | |||||||||||
3
INDEX TO EXHIBITS
| Exhibit No. | Description | |||||||
| 99.1 | News Release dated November 2, 2026 announcing results for the fiscal quarter ended September 30, 2026. | |||||||
4
Exhibit 99.1
| NEWS RELEASE | |||||
KOSMOS ENERGY ANNOUNCES THIRD QUARTER 2026 RESULTS
DALLAS - November 2, 2026-- 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