REG - Kosmos Energy Ltd - 3rd Quarter Results
03/11/2025 07:00
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RNS Number : 8636F Kosmos Energy Limited 03 November 2025
KOSMOS ENERGY ANNOUNCES THIRD QUARTER 2025 RESULTS
DALLAS - November 3, 2025-- Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for
the third quarter of 2025. For the quarter, the Company generated a net loss
of $124 million, or $0.26 per diluted share. When adjusted for certain
items that impact the comparability of results, the Company generated
an adjusted net loss((1)) of $72 million, or $0.15 per diluted share for
the third quarter of 2025.
THIRD QUARTER 2025 HIGHLIGHTS
• Net Production((2)): ~65,500 barrels of oil equivalent per day
(boepd), up 3% versus second quarter 2025, with sales of ~59,900 boepd
• Revenues: $311 million, or $56.39 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $148 million ($19.51 per boe excluding $59.4
million of production expenses associated with the Greater Tortue Ahmeyim
(GTA) liquefied natural gas (LNG) project), down 39% versus second quarter
2025
• Capital expenditures: $67 million
• Entered into a senior secured term loan with Shell for up to $250
million; funding of the first tranche of $150 million was completed post
quarter-end with proceeds used to partially redeem the 2026 unsecured notes
• Completed the semi-annual re-determination of the reserve-based
lending ("RBL") facility, maintaining a borrowing base in excess of the RBL's
$1.35 billion facility size
• During the third quarter, 6.8 gross LNG cargos were lifted from
the GTA project offshore Mauritania and Senegal
• First producer well of the 2025/26 Jubilee drilling campaign
brought online with ~10,000 bopd average contribution
Commenting on the Company's third quarter 2025 performance, Chairman and Chief
Executive Officer Andrew G. Inglis said: "We set out this year with three
clear priorities: Increase production, reduce costs and enhance the resilience
of the balance sheet. During the period, we have continued to make good
progress against each of these priorities.
On production, GTA is fully operational, with ~7 gross LNG cargos lifted
during the quarter, and further upside to be tested in the fourth quarter.
With the second Jubilee producer well now being drilled and due online around
year end, and the drilling program continuing into 2026, we expect company
production to continue to rise through next year.
On costs, we now expect capital expenditure to be below $350 million in 2025,
more than 60% lower year-on-year. Operating costs across every business were
lower quarter over quarter and we continue to work to further reduce operating
costs across the portfolio, particularly on GTA into 2026. In addition, we
remain on track to deliver the targeted $25 million of overhead reduction by
year-end.
On the balance sheet, we raised additional liquidity with the Shell term loan,
which is being used to repay our 2026 maturities. We also completed the
semi-annual re-determination of our RBL facility and have added more hedges
for 2026.
As we navigate through near-term volatility, our priorities for Kosmos remain
consistent: long term value creation through growing production, reducing
costs and maximizing cash flow to accelerate debt repayment and reduce
leverage."
FINANCIAL UPDATE
Kosmos entered into a senior secured term loan facility (the "Term Facility")
with Shell Trading (US) Company ("Shell") for up to $250 million, using $150
million to partially redeem the outstanding 2026 unsecured notes in early
October. The remaining $100 million of outstanding 2026 notes is planned to be
repaid in advance of the maturity date from the undrawn portion of the Term
Facility in the first quarter of 2026. The Company also continues to evaluate
raising additional secured debt capital to proactively manage upcoming
maturities.
During the third quarter, Kosmos completed the semi-annual re-determination of
its RBL facility with a borrowing base in excess of the $1.35 billion facility
size. In addition, the Company completed the liquidity test covering the 2027
unsecured notes, which was carried out alongside the RBL re-determination.
Kosmos has continued to add more hedges as part of a rolling hedging program
to provide downside protection against a volatile commodity price backdrop.
The company now has 2.5 million barrels of remaining 2025 oil production
hedged with an average floor of approximately $62/barrel. Kosmos took
advantage of periods of higher oil prices during the third quarter to add more
hedges for the 2026 hedging program. Kosmos now has 8.5 million barrels of oil
hedged for 2026 with an average floor of $66/barrel, weighted towards the
first half of the year and is targeting around 50% of 2026 oil production to
be hedged by year-end.
Net capital expenditure for the third quarter of 2025 was $67 million, below
guidance due to lower spend in Ghana and the Gulf of America. We now expect
full year capital expenditures to be lower than $350 million. The Company
remains on track to deliver the targeted $25 million overhead reduction by
year-end.
The Company generated net cash used in operating activities of approximately
$(28) million and free cash flow((1)) of approximately $(99) million during
the quarter. Excluding the working capital draw communicated with the second
quarter results in August, which largely related to final accrued capital
expenditure on Phase 1 of the GTA project, free cash flow was broadly neutral
for the third quarter.
Kosmos exited the third quarter of 2025 with approximately $2.9 billion of net
debt((1)) and liquidity of approximately $540 million((3)).
OPERATIONAL UPDATE
Production
Total net production((2)) in the third quarter of 2025 averaged approximately
65,500 boepd with the quarter-on-quarter increase largely driven by the ramp
up at GTA and increased production at Jubilee.
The Company exited the quarter in a net underlift position of approximately
0.6 mmboe.
Mauritania and Senegal
GTA Phase 1 production continued to ramp up during the quarter averaging
approximately 11,400 boepd net. During the quarter, 6.8 gross LNG cargos were
lifted, in line with guidance. Post quarter-end, an additional 2.7 gross LNG
cargos were lifted (bringing the total through October to 13.5), along with
the first gross condensate cargo.
Lowering operating costs for GTA Phase 1 remains a priority for the
partnership. Net operating costs on the project decreased approximately $10
million quarter-on-quarter, with additional actions to further reduce costs
ongoing, including the FPSO lease re-financing which is targeted for
completion by year-end, and the implementation of a lower-cost operating
model.
During the third quarter, planned startup maintenance was carried out on three
of the four FLNG trains. All three trains are back online and the fourth train
is scheduled to undergo one week of similar maintenance in the fourth quarter.
With Phase 1 targeting nameplate production at the end of the fourth quarter,
the partnership is now focusing on future expansion through Phase 1+, a
low-cost brownfield expansion. This is expected to approximately double gas
throughput by 2029, leveraging the existing infrastructure in place.
Ghana
Production in Ghana averaged approximately 31,300 boepd net in the third
quarter of 2025. Kosmos lifted 2 cargos from Ghana during the quarter, as
expected.
At Jubilee (38.6% working interest), oil production in the third quarter
averaged approximately 62,500 bopd gross.
The first producer well of the 2025/26 Jubilee drilling campaign came online
in July and initial production levels have been encouraging, averaging ~10,000
boepd through the first three months. Following a period of scheduled
maintenance, the Noble Venturer rig arrived back in field in mid-October and
has spud the second planned producer well, which is expected online around
year end. Within the original 2026 drilling campaign budget, the joint venture
partners have approved the activity set, which now includes the 4 planned
producers and an additional water injector.
In the third quarter of 2025, Ghana gas production net to Kosmos was
approximately 5,200 boepd, lower than planned as a result of extended
scheduled maintenance on the onshore gas processing plant.
At TEN (20.4% working interest), oil production averaged approximately 16,100
bopd gross for the third quarter. The TEN partnership is finalizing a sale and
purchase agreement to acquire the TEN FPSO at the end of its current lease,
planned to be signed by year-end. We expect this to significantly reduce TEN
operating costs and positively impact our leverage in 2025 and beyond.
Post the signing of the Memorandum of Understanding (MoU) with the Government
of Ghana last quarter, all documentation for the extension of the production
licenses to 2040 have been prepared for submission to the government for final
approval. Once approved, Kosmos expects to recognize a material uplift in its
2P reserve base.
Gulf of America
Production in the Gulf of America averaged approximately 16,600 boepd net
(~84% oil) during the third quarter, in line with guidance helped by strong
performance from Odd Job and Kodiak and no storm downtime, offset by some
unplanned facility downtime and the Winterfell-4 well. The Winterfell-4 well
was abandoned in September by the operator due to challenges encountered
during completion operations arising from the collapse of the production
casing. As a result, all associated drilling and completion costs of
approximately $51.1 million related to Winterfell-4 have been written off in
the third quarter of 2025. The partnership is reviewing alternative options to
access the reserves targeted by Winterfell-4. In 2026, our focus will be on
restoring production from the Winterfell-3 fault block.
On Tiberius, Kosmos (operator, 50% working interest) continues to progress the
development plan with our partner Oxy (50% working interest). A production
handling agreement for the Oxy-operated Lucius platform was executed in the
third quarter. Final investment decision and a farm down to reduce Kosmos'
working interest is expected in 2026.
On Gettysburg, a discovered resource opportunity acquired in a previous lease
sale, Kosmos (25% working interest) has partnered with Shell (operator, 75%
working interest), to plan and progress a low-cost, single well tie-back
development to Shell's operated-Appomattox facility.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 17,700 bopd gross and
6,200 bopd net in the third quarter. Kosmos lifted 0.7 cargos from Equatorial
Guinea during the quarter in line with guidance. As previously communicated,
third quarter production was impacted by subsea pump mechanical failures at
Ceiba. The first pump was repaired ahead of schedule early in the fourth
quarter, and the second pump is now also expected online in the fourth quarter
followed by the third pump in first quarter of 2026.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure.
(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.
(3) At September 30, 2025, we had liquidity of approximately $540 million
consisting of approximately $64 million in cash and cash equivalents, undrawn
availability under the Facility of $225 million and undrawn availability under
the Term Facility of $250 million. Under the terms of the Credit Agreement,
borrowings on the Term Facility are required to be utilized to pay down the
7.125% Senior Notes due 2026 unless otherwise previously repaid.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss third quarter 2025
financial and operating results today, November 3, 2025, 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 +1-877-407-0784. Callers in the United Kingdom should
call 0800 756 3429. Callers outside the United States should dial
+1-201-689-8560. 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 Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Revenues and other income:
Oil and gas revenue $ 310,959 $ 407,794 $ 993,729 $ 1,277,797
Gain on sale of assets - - 600 -
Other income, net 270 37 849 109
Total revenues and other income 311,229 407,831 995,178 1,277,906
Costs and expenses:
Oil and gas production 147,696 133,471 558,122 377,822
Exploration expenses 54,948 14,697 68,686 39,992
General and administrative 12,886 23,298 58,215 76,724
Depletion, depreciation and amortization 141,514 120,728 413,449 311,750
Interest and other financing costs, net 57,919 22,112 164,595 75,839
Derivatives, net (3,646) (15,254) (18,480) 5,716
Other expenses, net 6,384 2,227 14,854 6,418
Total costs and expenses 417,701 301,279 1,259,441 894,261
Income (loss) before income taxes (106,472) 106,552 (264,263) 383,645
Income tax expense 17,827 61,578 58,382 187,215
Net income (loss) $ (124,299) $ 44,974 $ (322,645) $ 196,430
Net income (loss) per share:
Basic $ (0.26) $ 0.10 $ (0.68) $ 0.42
Diluted $ (0.26) $ 0.09 $ (0.68) $ 0.41
Weighted average number of shares used to compute net income (loss) per share:
Basic 478,254 471,816 477,344 470,491
Diluted 478,254 479,190 477,344 478,701
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September 30, December 31,
2025 2024
Assets
Current assets:
Cash and cash equivalents $ 64,032 $ 84,972
Receivables, net 103,330 164,959
Other current assets 198,205 196,201
Total current assets 365,567 446,132
Property and equipment, net 4,208,535 4,444,221
Other non-current assets 515,639 418,635
Total assets $ 5,089,741 $ 5,308,988
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 200,809 $ 349,994
Accrued liabilities 251,310 244,954
Current maturities of long-term debt 250,000 -
Other current liabilities 3,239 -
Total current liabilities 705,358 594,948
Long-term liabilities:
Long-term debt, net 2,728,500 2,744,712
Deferred tax liabilities 313,426 313,433
Other non-current liabilities 443,670 455,471
Total long-term liabilities 3,485,596 3,513,616
Total stockholders' equity 898,787 1,200,424
Total liabilities and stockholders' equity $ 5,089,741 $ 5,308,988
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Operating activities:
Net income (loss) $ (124,299) $ 44,974 $ (322,645) $ 196,430
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depletion, depreciation and amortization (including deferred financing costs) 143,403 122,887 419,111 318,564
Deferred income taxes (950) 6,081 686 11,280
Unsuccessful well costs and leasehold impairments 51,211 1,187 51,373 3,872
Change in fair value of derivatives (2,792) (9,298) (10,675) 11,808
Cash settlements on derivatives, net(1) (3,480) (7,388) 2,801 (14,754)
Equity-based compensation 5,302 10,034 21,009 27,849
Gain on sale of assets - - (600) -
Debt modifications and extinguishments - 2,263 - 24,794
Other (2,986) (138) (11,492) (12,126)
Changes in assets and liabilities:
Net changes in working capital (92,977) (164,320) (50,856) (65,215)
Net cash provided by (used in) operating activities (27,568) 6,282 98,712 502,502
Investing activities
Oil and gas assets (71,367) (219,245) (244,133) (772,238)
Notes receivable and other investing activities - - (86,791) (2,575)
Net cash used in investing activities (71,367) (219,245) (330,924) (774,813)
Financing activities:
Borrowings under long-term debt 175,000 100,000 375,000 275,000
Payments on long-term debt (50,000) - (150,000) (350,000)
Net proceeds from issuance of senior notes - 494,855 - 885,285
Purchase of capped call transactions - - - (49,800)
Repurchase of senior notes - (499,515) - (499,515)
Other financing costs - (4,609) (1) (35,534)
Net cash provided by financing activities 125,000 90,731 224,999 225,436
Net increase (decrease) in cash, cash equivalents and restricted cash 26,065 (122,232) (7,213) (46,875)
Cash, cash equivalents and restricted cash at beginning of period 51,999 174,118 85,277 98,761
Cash, cash equivalents and restricted cash at end of period $ 78,064 $ 51,886 $ 78,064 $ 51,886
(1) Cash settlements on commodity hedges were $(2.3) million and $(2.5)
million for the three months ended September 30, 2025 and 2024, respectively,
and $7.3 million and $(10.0) million for the nine months ended September 30,
2025 and 2024, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Nine months ended Twelve Months Ended
September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 September 30, 2025
Net income (loss) $ (124,299) $ 44,974 $ (322,645) $ 196,430 $ (329,224)
Exploration expenses 54,948 14,697 68,686 39,992 148,601
Depletion, depreciation and amortization 141,514 120,728 413,449 311,750 558,473
Equity-based compensation 5,302 10,034 21,009 27,849 31,111
Derivatives, net (3,646) (15,254) (18,480) 5,716 (12,097)
Cash settlements on commodity derivatives (2,324) (2,532) 7,340 (9,956) 4,808
Other expenses, net(1) 6,384 2,227 14,854 6,418 26,139
Gain on sale of assets - - (600) - (600)
Interest and other financing costs, net 57,919 22,112 164,595 75,839 177,354
Income tax expense 17,827 61,578 58,382 187,215 31,128
EBITDAX $ 153,625 $ 258,564 $ 406,590 $ 841,253 $ 635,693
EBITDAX - M/S (21,988) (42,986) (131,397) (66,418) (169,336)
EBITDAX - Base Business $ 175,613 $ 301,550 $ 537,987 $ 907,671 $ 805,029
-
The following table presents our net debt as of September 30, 2025 and
December 31, 2024:
September 30, December 31,
2025 2024
Total long-term debt $ 3,025,274 $ 2,800,274
Cash and cash equivalents 64,032 84,972
Total restricted cash 14,032 305
Net debt $ 2,947,210 $ 2,714,997
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Net income (loss) $ (124,299) $ 44,974 $ (322,645) $
196,430
Derivatives, net (3,646) (15,254) (18,480) 5,716
Cash settlements on commodity derivatives (2,324) (2,532) 7,340 (9,956)
Gain on sale of assets - - (600) -
Other, net(2) 6,358 1,965 14,386 5,892
Impairment of suspended well costs 51,060 - 51,060 -
Debt modifications and extinguishments - 2,263 - 24,794
Total selected items before tax 51,448 (13,558) 53,706 26,446
Income tax (expense) benefit on adjustments(1) 575 6,186 (1,459) 2,269
Impact of valuation adjustments and other tax items - - - (7,963)
Adjusted net income (loss) $ (72,276) 37,602 (270,398) 217,182
Net income (loss) per diluted share $ $ 0.09 $ $ 0.41
(0.26)
(0.68)
Derivatives, net (0.01) (0.03) (0.04) 0.01
Cash settlements on commodity derivatives - - 0.02 (0.01)
Other, net(2) 0.01 - 0.03 0.01
Impairment of suspended well costs 0.11 - 0.10 -
Debt modifications and extinguishments - - - 0.05
Total selected items before tax 0.11 (0.03) 0.11 0.06
Income tax (expense) benefit on adjustments(1) - 0.02 -
Impact of valuation adjustments and other tax items - - - (0.02)
Adjusted net income (loss) per diluted share $ $ $ $ 0.45
(0.15)
0.08
(0.57)
Weighted average number of diluted shares 478,254 479,190 477,344 478,701
(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,
2025 2024 2025 2024
Reconciliation of free cash flow:
Net cash provided by (used in) operating activities $ (27,568) $ 6,282 $ 98,712 $ 502,502
Net cash used for oil and gas assets (71,367) (219,245) (244,133) (772,238)
Free cash flow (98,935) (212,963) (145,421) (269,736)
Net cash provided by (used in) operating activities - M/S (97,195) (56,484) (200,456) 42,542
Net cash used for oil and gas assets - M/S $ (7,744) $ (110,804) $ (71,321) $ (388,412)
Base business free cash flow $ 6,004 $ (45,675) $ 126,356 $ 76,134
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Net Volume Sold
Oil (MMBbl) 3.799 5.135 12.822 15.234
Gas (MMcf) 9.712 (1) 3.554 (2) 21.004 (1) 11.991 (2)
NGL (MMBbl) 0.097 0.084 0.301 0.232
Total (MMBoe) 5.515 5.811 16.624 17.465
Total (Mboepd) 59.942 63.167 60.893 63.739
Revenue
Oil sales $ 255,661 $ 393,555 $ 880,584 $ 1,230,772
Gas sales 53,761 12,586 107,439 42,218
NGL sales 1,537 1,653 5,706 4,807
Total oil and gas revenue 310,959 407,794 993,729 1,277,797
Cash settlements on commodity derivatives (2,324) (2,532) 7,340 (9,956)
Realized revenue $ 308,635 $ 405,262 $ 1,001,069 $ 1,267,841
Oil and Gas Production Costs $ 147,696 (1) $ 133,471 (2) $ 558,122 (1) $ 377,822 (2)
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 67.30 $ 76.64 $ 68.68 $ 80.79
Average gas sales price per Mcf 5.54 3.54 5.12 3.52
Average NGL sales price per Bbl 15.85 19.68 18.96 20.72
Average total sales price per Boe 56.39 70.18 59.78 73.16
Cash settlements on commodity derivatives per Boe (0.42) (0.44) 0.44 (0.57)
Realized revenue per Boe 55.97 69.74 60.22 72.59
Oil and gas production costs per Boe $ 26.78 $ 22.97 $ 33.57 $ 21.64
Oil and gas production costs per Boe ex. M/S ((1)(2)) $ 19.51 $ 16.14 $ 24.67 $ 18.32
(1) Includes $59.4 million and $186.6 million for the three and nine
months ended September 30, 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 and nine
months ended September 30, 2025 were 5.932 MMcf and 9.376 MMcf,
respectively. Oil and gas production costs per Boe excluding the GTA Phase 1
LNG project in Mauritania and Senegal for the three and nine months ended
September 30, 2025, was $19.51 and $24.67, respectively. First LNG was
achieved in February 2025 and the first LNG cargo was successfully completed
in April 2025.
(2) Includes $39.7 million and $57.9 million for the three and nine months
ended September 30, 2024, respectively, of oil and gas production costs
related to the LNG production at the GTA Phase 1 project in Mauritania and
Senegal. First LNG was achieved in February 2025 and the first LNG cargo was
successfully completed in April 2025. Oil and gas production costs per Boe
excluding the GTA Phase 1 LNG project in Mauritania and Senegal for the three
and nine months ended September 30, 2024, was $16.14 and $18.32, respectively.
Kosmos was underlifted by approximately 0.6 million barrels of oil equivalent
(mmboe) as of September 30, 2025.
Kosmos Energy Ltd.
Hedging Summary
As of September 30, 2025((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Floor(2) Sold Put Ceiling
2025:
Two-way collars Dated Brent 2,000 $ 60.00 - $ 74.94
Three-way collars Dated Brent 500 70.00 55.00 85.00
2026:
Two-way collars 1H26 Dated Brent 1,000 $ 60.00 - $ 74.75
Three-way collars FY26 Dated Brent 2,000 60.00 50.00 75.51
Swaps 1H26 Dated Brent 1,000 72.90 - -
Swaps FY26 Dated Brent 3,000 70.62 - -
Swaps FY26 WTI 1,500 64.83 - -
(1) Please see the Company's filed 10-Q for additional disclosure on
hedging material. Includes hedging position as of September 30, 2025 and
hedges put in place through filing date.
(2) "Floor" represents floor price for collars and strike price for
purchased puts.
Note: Excludes 2.0 MMBbls of Dated Brent sold calls with a strike price of
$80.00 per Bbl and 2.0 MMBbls of Dated Brent sold puts with a strike price of
$55.00 in 2026. Excludes 1.5 MMBbls of WTI sold puts with a strike price of
$50.00 in 2026.
2025 Guidance
4Q 2025 FY 2025 Guidance
Production(1,2,3) 66,000 - 72,000 boe per day ~65,000 boe per day
Opex(4) $15.00 - $18.00 per boe ~$22.00 per boe
DD&A $21.00 - $23.00 per boe $22.00 - $24.00 per boe
G&A(~66% cash) ~$15 million ~$75 million
Exploration Expense(5) ~$10 million $25 - $45 million
Net Interest Expense(6) $55 - $60 million ~$220 million
Tax $4.00 - $6.00 per boe $4.00 - $6.00 per boe
Capital Expenditure $80 - $100 million <$350 million
Note: Ghana / Equatorial Guinea / Mauritania & Senegal revenue calculated
by number of cargos.
(1) 4Q 2025 net cargo forecast - Ghana: 2-3 cargos / Equatorial Guinea:
0.5 cargo. FY 2025 Ghana: 9-10 cargos / Equatorial Guinea 2.7 cargos. Average
cargo sizes 950,000 barrels of oil.
(2) 4Q 2025 gross cargo forecast - Mauritania & Senegal: 7-8.5 cargos.
FY 2025: 18-19 cargos. Average cargo size ~170,000 m(3) with Kosmos NRI of
~24%.
(3) Gulf of America Production: 4Q 2025 forecast 17,000 - 19,000 boe per
day. FY 2025: 17,000-19,000 boe per day. Oil/Gas/NGL split for 2025:
~83%/~11%/~6%.
(4) FY 2025 opex excludes operating costs associated with GTA, which are
expected to total approximately $225 - $245 million net ($45 - $55 million in
4Q 2025). These values include cost associated with the FPSO lease which total
approximately $60 million FY 2025 and $15 million 4Q 2025.
(5) Excludes leasehold impairments and dry hole costs
(6) Includes capitalized interest
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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