REG - Kosmos Energy Ltd - 1st Quarter Results
05/05/2026 07:00
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RNS Number : 9055C Kosmos Energy Limited 05 May 2026
KOSMOS ENERGY ANNOUNCES FIRST QUARTER 2026 RESULTS
Delivers Record Quarterly Production
DALLAS - May 5, 2026-- Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for
the first quarter of 2026. For the quarter, the Company generated a net loss
of $226 million, or $0.45 per diluted share. When adjusted for certain
items that impact the comparability of results, the Company generated
an adjusted net loss((1)) of $36 million, or $0.07 per diluted share for
the first quarter of 2026.
FIRST QUARTER 2026 AND POST QUARTER END HIGHLIGHTS
• Net Production((2)): ~74,800 barrels of oil equivalent per day
(boepd), up ~25% versus first quarter 2025
• Revenues: $371 million, or $55.81 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $131 million (or $19.66 per boe), down ~22%
versus first quarter 2025 (~$167 million)
• Capital expenditures: $91 million
• Greater Tortue Ahmeyim (GTA) gross production averaged ~2.85 million
tonnes per annum (mtpa) for the first quarter, in excess of the floating LNG
nameplate capacity (2.7 mtpa)
• Kosmos successfully completed a $350 million senior secured bond
offering in the Nordic market
• Kosmos successfully completed an equity raise of approximately
$200 million with the proceeds used to accelerate debt paydown
• Kosmos announced the sale of its interest in the Ceiba Field and
Okume Complex in Equatorial Guinea, for up to ~$220 million
• The TEN partnership finalized the acquisition of the TEN FPSO,
which is expected to result in a material reduction in operating expenses
• Kosmos took final investment decision for the operated Tiberius
project in the Gulf of America
Commenting on the Company's first quarter 2026 performance, Chairman and Chief
Executive Officer Andrew G. Inglis said: "Earlier this year, we set four goals
for 2026: increase production from our core assets; lower costs; reduce debt;
and advance our high‑quality growth portfolio with minimal capital. We are
delivering strongly on all four of these goals.
"In the first quarter, Kosmos achieved record daily and quarterly production,
driven by GTA fully ramped up and new wells at Jubilee. Operating costs were
~22% lower year-on-year and we reduced net debt((1)) by ~7% versus year‑end
2025. With this ongoing momentum, we have raised our full‑year debt
reduction target from 10% to ~20%.
"We continue to maintain our capital discipline while we progress our quality
growth options. We took final investment decision on the Tiberius development,
entered into a strategic exploration alliance with Shell in the Gulf of
America, and are moving forward on GTA Phase 1+ expansion.
"With oil prices higher, our goals are unchanged. We will direct excess free
cash flow toward accelerated debt reduction and further strengthening the
balance sheet. Our exposure to premium international oil markets positions
Kosmos to capture value from current market dislocations and reinforces our
confidence in the path ahead."
FINANCIAL UPDATE
In January 2026, Kosmos successfully completed a $350 million senior secured
bond offering in the Nordic market with proceeds used to repurchase ~$250
million of the Company's 2027 senior unsecured notes and to repay $100 million
of borrowings under the reserve-based lending facility (RBL).
In March, Kosmos successfully raised approximately $200 million of equity with
the proceeds used to accelerate debt repayment.
In April, Kosmos completed its spring RBL re-determination with the borrowing
base reduced to approximately $1.25 billion. Post the sale of the Company's
production assets in Equatorial Guinea, expected around midyear 2026, the
borrowing base will reduce to approximately $1.2 billion,
Kosmos has growing exposure to higher near-term oil prices, with realizations
and free cash flow expected to rise in the second quarter, taking account of
the lag effect between sales and benchmark prices. In the second quarter so
far, we have seen record pricing and record differentials for production
priced off premium international benchmarks such as Dated Brent in Ghana.
Kosmos has taken advantage of a higher forward price curve to add further
hedges for 2027. The company has 5.7 million barrels of oil hedged for the
remainder of 2026 with an average floor of approximately $66/barrel and a
further 4.0 million barrels hedged in 2027 with a floor of approximately
$65/barrel.
Net capital expenditure for the first quarter of 2026 was $91 million, in line
with guidance. Full year 2026 capital expenditure guidance of $350 million is
unchanged.
The Company generated net cash provided by operating activities of
approximately $107 million and free cash flow((1)) of approximately $14
million. Kosmos exited the first quarter of 2026 with approximately $2.8
billion of net debt((1)) and liquidity of approximately $488 million.
OPERATIONAL UPDATE
Production
Total net production((2)) in the first quarter of 2026 averaged approximately
74,800 boepd, a record quarterly high for Kosmos, up ~25% versus first quarter
2025. The increase was largely driven by the ramp up at GTA and new wells
coming online at Jubilee. Sales for the first quarter 2026 were approximately
73,800 boepd.
The Company exited the quarter in a net underlift position of approximately
1.3 mmboe.
Mauritania and Senegal
GTA Phase 1 production averaged approximately 17,000 boepd net during the
quarter, or 2.85 mtpa of LNG equivalent gross as the project continued to
produce above the floating LNG vessel's nameplate capacity (2.7 mtpa),
benefiting from cooler seasonal temperatures. The partnership lifted 9.5 gross
LNG cargos in the first quarter, in line with guidance. Full year guidance of
32-36 gross LNG cargos remains unchanged. One condensate cargo was lifted by
BP in the first quarter. The second and third condensate cargos in 2026 are
expected to be lifted by Kosmos and the national oil companies of Mauritania
and Senegal.
Lowering operating costs for GTA Phase 1 remains a priority for the
partnership in 2026 with net operating costs per boe on track to fall by more
than 50% year-on-year with scope for further reductions in 2027 and beyond.
With Phase 1 production fully ramped up and performing well, the partnership
is now focusing on future production growth through Phase 1+, which fully
utilizes the existing infrastructure for sales to the domestic markets in
Senegal and Mauritania. Heads of terms for domestic gas sales are expected in
2026. In addition, Senegal has begun construction of an onshore power plant
near Saint Louis and is expected to commence construction of the gas pipeline
network around the midyear, which will transport gas from the GTA hub terminal
to shore for domestic power generation.
Ghana
Production in Ghana averaged approximately 35,400 boepd net in the first
quarter of 2026, which included gas production of approximately 6,900 boepd.
Kosmos lifted three cargos from Ghana during the quarter, in line with
guidance.
At Jubilee (38.6% working interest), oil production in the first quarter
averaged approximately 70,000 bopd gross. The J74 well came online in early
2026 followed by the J75 well at the end of the quarter. Both wells are
performing in line with expectations.
The next well in the campaign (J76) has been drilled and the completion is
about to commence. Two additional producer wells (J77 and J50) have also been
drilled and will be completed shortly after J76. As the operator recently
communicated, all three producer wells are expected online in June and July
and Kosmos expects an aggregate contribution from these wells of around 20,000
bopd gross. A water injection well will conclude the drilling campaign and is
expected online at the end of the third quarter.
At TEN (20.4% working interest), oil production averaged approximately 14,900
bopd gross for the first quarter, in line with expectations. In February 2026,
the TEN partnership finalized a sale and purchase agreement to acquire the TEN
FPSO at the end of its current lease. Signing the agreement is expected to
significantly reduce TEN operating costs and positively impact leverage in
2026 and beyond.
Also in February, the Ghanaian parliament formally ratified the license
extensions for the West Cape Three Points and Deepwater Tano Petroleum
Agreements, which cover the Jubilee and TEN fields, following government
approval of the extensions in December. The licenses now extend to 2040. With
an extended license period, the partnership is aligned on securing a rig for
the 2027/2028 drilling campaign, which is expected to include up to ten wells
and start in mid-2027.
Gulf of America
Production in the Gulf of America averaged approximately 16,800 boepd net
(~84% oil) during the first quarter, in line with guidance, with strong
performance from the Kosmos-operated Odd Job and Kodiak fields. Early in the
second quarter, the Winterfell-2 well was shut in pending future intervention.
On Tiberius, in the outboard Wilcox play, Kosmos (operator, 50% working
interest) took final investment decision with our partner Occidental (50%
working interest) in March. The project targets first oil in the second half
of 2028, with long-lead items already secured and most of the capital expected
in 2027 and 2028. A farm down to reduce Kosmos' working interest to ~33% has
now commenced and is expected to close later this year.
As previously announced, Kosmos deepened its inventory of future opportunities
for its infrastructure-led exploration (ILX) strategy in the Gulf of America,
entering into a strategic alliance with Shell in February in the Norphlet
trend. Shell and Kosmos now have alignment over ten blocks in the Gulf of
America to explore multiple high-potential prospects, including Trailblazer, a
prospect with significant potential (~200 mmboe gross). In the event of
success, it could be tied back into Shell's nearby Appomattox platform.
Drilling of Trailblazer is planned for the first half of 2027 with Kosmos
designated as development operator.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 16,000 bopd gross and
5,600 bopd net in the first quarter. Kosmos lifted 0.4 cargos from Equatorial
Guinea during the quarter in line with guidance.
In February, Kosmos announced that it entered into an agreement to sell its
40.375% non-operating working interest in the Ceiba Field and Okume Complex
production assets to Panoro Energy for up to $220 million. Proceeds will be
used to reduce borrowings outstanding under the RBL. The transaction has been
approved by the Government of Equatorial Guinea and is expected to close
around midyear 2026, subject to customary CEMAC approval.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure. Net
debt excludes $80.1 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, Equatorial Guinea, 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 first quarter 2026
financial and operating results today, May 5, 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, Equatorial Guinea,
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
March 31,
2026 2025
Revenues and other income:
Oil and gas revenue $ 370,728 $ 290,135
Other income, net 169 296
Total revenues and other income 370,897 290,431
Costs and expenses:
Oil and gas production 130,595 167,308
Exploration expenses 19,744 9,669
General and administrative 27,710 26,255
Depletion, depreciation and amortization 119,873 120,667
Interest and other financing costs, net 58,802 51,842
Derivatives, net 251,996 6,732
Other expenses, net 3,264 1,989
Total costs and expenses 611,984 384,462
Loss before income taxes (241,087) (94,031)
Income tax expense (benefit) (15,513) 16,575
Net loss $ (225,574) $ (110,606)
Net loss per share:
Basic $ (0.45) $ (0.23)
Diluted $ (0.45) $ (0.23)
Weighted average number of shares used to compute net loss per share:
Basic 506,198 475,681
Diluted 506,198 475,681
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
March 31, December 31,
2026 2025
Assets
Current assets:
Cash and cash equivalents $ 129,957 $ 91,518
Receivables, net 110,510 103,472
Assets held for sale 18,707 -
Other current assets 194,268 232,884
Total current assets 453,442 427,874
Property and equipment, net 3,367,489 3,733,784
Non-current assets held for sale 408,895 -
Other non-current assets 553,616 534,968
Total assets $ 4,783,442 $ 4,696,626
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 194,969 $ 202,555
Accrued liabilities 332,078 237,609
Current maturities of long-term debt 30,220 132,143
Liabilities held for sale 43,544 -
Other current liabilities 156,243 -
Total current liabilities 757,054 572,307
Long-term liabilities:
Long-term debt, net 2,866,043 2,920,616
Deferred tax liabilities 134,750 305,924
Long-term liabilities held for sale 260,601 -
Other non-current liabilities 249,885 369,189
Total long-term liabilities 3,511,279 3,595,729
Total stockholders' equity 515,109 528,590
Total liabilities and stockholders' equity $ 4,783,442 $ 4,696,626
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended
March 31,
2026 2025
Operating activities:
Net loss $ (225,574) $ (110,606)
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depletion, depreciation and amortization (including deferred financing costs) 122,465 122,551
Deferred income taxes (49,013) 1,811
Unsuccessful well costs and leasehold impairments 14,541 1,903
Change in fair value of derivatives 302,976 7,586
Cash settlements on derivatives, net(1) (81,321) 494
Equity-based compensation 5,950 8,361
Debt modifications and extinguishments (1,217) -
Other (7,561) (5,597)
Changes in assets and liabilities:
Net changes in working capital 25,310 (27,391)
Net cash provided by (used in) operating activities 106,556 (888)
Investing activities
Oil and gas assets (87,047) (90,245)
Notes receivable and other investing activities (11,598) (44,048)
Net cash used in investing activities (98,645) (134,293)
Financing activities:
Borrowings under long-term debt 124,167 100,000
Payments on long-term debt (277,738) -
Net proceeds from issuance of senior notes and bonds 350,000 -
Repurchase and redemption of senior notes (346,984) -
Net proceeds from issuance of common stock 206,440 -
Payments on finance lease (5,262) -
Other financing costs (7,731) -
Net cash provided by financing activities 42,892 100,000
Net increase (decrease) in cash, cash equivalents and restricted cash 50,803 (35,181)
Cash, cash equivalents and restricted cash at beginning of period 117,744 85,277
Cash, cash equivalents and restricted cash at end of period(2) $ 168,547 $
50,096
(1) Cash settlements on commodity hedges were $(30.3) million and $(1.8)
million for the three months ended March 31, 2026 and 2025, respectively.
(2) Includes cash reported within current assets held for sale on the
Consolidated Balance Sheets relating to the Ceiba and Okume Complex located in
Block G offshore Equatorial Guinea cash held for sale.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Twelve Months Ended
March 31, 2026 March 31, 2025 March 31, 2026
Net loss $ (225,574) $ (110,606) $ (814,754)
Exploration expenses 19,744 9,669 233,691
Depletion, depreciation and amortization 119,873 120,667 555,980
Impairment of long-lived assets - - 177,563
Equity-based compensation 5,950 8,361 25,542
Derivatives, net 251,996 6,732 191,599
Cash settlements on commodity derivatives (30,341) (1,751) (18,197)
Other expenses, net(1) 3,263 1,989 14,766
Gain on sale of assets - - (2,200)
Interest and other financing costs, net 58,802 51,842 230,390
Income tax expense (benefit) (15,513) 16,575 33,117
EBITDAX $ 188,200 $ 103,478 $ 627,497
Pro Forma Adjustment - TEN FPSO Lease(1) - - 47,421
Pro Forma EBITDAX 188,200 103,478 674,918
EBITDAX - M|S (5,784) (57,932) (77,333)
Pro Forma EBITDAX - Base Business $ 193,984 $ 161,410 $ 752,251
(1) Adjustment to present Pro Forma EBITDAX for the impact to operational
expense for the periods presented resulting from executing the TEN FPSO
finance lease transaction.
The following table presents our net debt as of March 31, 2026 and
December 31, 2025:
March 31, December 31,
2026 2025
Total long-term debt $ 2,946,876 $ 3,100,274
Cash and cash equivalents 129,957 91,518
Cash included in assets held for sale 7,960 -
Total restricted cash 30,630 26,226
Net debt(1) $ 2,778,329 $ 2,982,530
(1) Excludes $80.1 million TEN FPSO finance lease liability.
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended
March 31,
2026 2025
Net loss $ (225,574) $ (110,606)
Derivatives, net 251,996 6,732
Cash settlements on commodity derivatives (30,341) (1,751)
Other, net(2) 3,259 1,664
Write-off of leasehold costs 13,181 -
Debt modifications and extinguishments (1,217) -
Total selected items before tax 236,878 6,645
Income tax (expense) benefit on adjustments(1) (46,926) (1,465)
Adjusted net income (loss) $ (35,622) (105,426)
Net loss per diluted share $ (0.45) $ (0.23)
Derivatives, net 0.50 0.01
Cash settlements on commodity derivatives (0.06) -
Write-off of leasehold costs 0.03 -
Total selected items before tax 0.47 0.01
Income tax (expense) benefit on adjustments(1) (0.09) -
Adjusted net income (loss) per diluted share $ (0.07) $ (0.22)
Weighted average number of diluted shares 506,198 475,681
(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
March 31,
2026 2025
Reconciliation of free cash flow:
Net cash provided by (used in) operating activities $ 106,556 $ (888)
Net cash used for oil and gas assets (87,047) (90,245)
Payments on finance lease (5,262) -
Free cash flow 14,247 (91,133)
Net cash provided by (used in) operating activities - M|S (4,400) 14,971
Net cash used for oil and gas assets - M|S (1,714) (49,943)
Base business free cash flow $ 20,361 $ (56,161)
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended
March 31,
2026 2025
Net Volume Sold
Oil (MMBbl) 4.414 3.659
Gas (MMcf) 12.749 (1) 4.172 (1)
NGL (MMBbl) 0.104 0.091
Total (MMBoe) 6.643 4.445
Total (MBoepd) 73.809 49.393
Revenue
Oil sales $ 297,011 $ 270,405
Gas sales 72,104 17,629
NGL sales 1,613 2,101
Total oil and gas revenue 370,728 290,135
Cash settlements on commodity derivatives (30,341) (1,751)
Realized revenue $ 340,387 $ 288,384
Oil and Gas Production Costs $ 130,595 (1) $ 167,308 (1)
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 67.29 $ 73.90
Average gas sales price per Mcf 5.66 4.23
Average NGL sales price per Bbl 15.51 23.09
Average total sales price per Boe 55.81 65.27
Cash settlements on commodity derivatives per Boe (4.57) (0.39)
Realized revenue per Boe 51.24 64.87
Oil and gas production costs per Boe $ 19.66 $ 37.64
Oil and gas production costs per Boe ex. M/S ((1)) $ 14.24 $ 24.99
(1) Includes $55.3 million and $58.1 million for the three months ended
March 31, 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
March 31, 2026 and 2025 were 1.357 MMboe and 0.1 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 1.3 million barrels of oil equivalent
(mmboe) as of March 31, 2026.
Kosmos Energy Ltd.
Hedging Summary
As of March 31, 2026((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Floor(2) Sold Put Ceiling
2026:
Two-way collars 1H26 Dated Brent 500 $ 60.00 - $ 74.75
Three-way collars FY26 Dated Brent 1,500 60.00 50.00 75.51
Swaps 1H26 Dated Brent 500 72.90 - -
Swaps FY26 Dated Brent 2,250 70.62 - -
Swaps FY26 WTI 1,000 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
(1) Please see the Company's filed 10-K for additional disclosure on
hedging material. Includes hedging position as of March 31, 2026 and hedges
put in place through filing date.
(2) "Floor" represents floor price for collars and strike price for
purchased puts.
Note: Excludes 0.6 MMBbls of Dated Brent sold calls with a strike price of
$100.00 per Bbl, 0.7 MMBbls of Dated Brent sold calls with a strike price of
$80.00 per Bbl and 1.5 MMBbls of Dated Brent sold puts with a strike price of
$55.00 in 2026. Excludes 1.0 MMBbls of WTI sold puts with a strike price of
$50.00 in 2026.
2026 Guidance
2Q 2026 FY 2026
Production(1,2,3) 70,000 - 74,000 boe per day 70,000 - 78,000 boe per day
Opex $25.00 - $28.00 per boe $20.00 - $22.00 per boe
DD&A $15.50 - $17.50 per boe $18.00 - $20.00 per boe
G&A(~65% cash) $20-$25 million ~$75 million
Exploration Expense(4) ~$5 million $10 - $30 million
Net Interest Expense $55 - $65 million $230 - $250 million
Tax $10.00 - $13.00 per boe $5.00 - $7.00 per boe
Capital Expenditure $100 - $125 million ~$350 million
Note: Ghana / Equatorial Guinea / Mauritania & Senegal revenue calculated
by number of cargos. All guidance includes Equatorial Guinea assets. Revised
guidance to be issued post the closing of transaction. Guidance includes
Equatorial Guinea contribution of approximately 6,000 boepd of production,
operating costs of $45-55/barrel and ~$15 million of capital expenditures.
(1) 2Q 2026 net cargo forecast - Ghana: 3-4 cargos / Equatorial Guinea:
0.4 cargo. FY 2026 Ghana: 12-13 cargos / Equatorial Guinea 2-3 cargos. Average
cargo sizes 950,000 barrels of oil.
(2) 2Q 2026 gross cargo forecast - Mauritania & Senegal: 8-9 cargos.
FY 2026: 32-36 cargos. Average cargo size ~170,000 m(3) with Kosmos NRI of
~24%. Kosmos expects 0.3 net condensate cargos in 2Q26
(3) Gulf of America Production: 2Q 2026 forecast 14,000 - 16,000 boe per
day. FY 2026: 15,000-17,000 boe per day. Oil/Gas/NGL split for 2026:
~83%/~11%/~6%.
(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
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