REG - Kosmos Energy Ltd - Fourth Quarter Results
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RNS Number : 8153U Kosmos Energy Limited 02 March 2026
KOSMOS ENERGY ANNOUNCES FOURTH QUARTER AND
FULL YEAR 2025 RESULTS
DALLAS - March 2, 2026-- Kosmos Energy Ltd. ("Kosmos" or the "Company")
(NYSE/LSE: KOS) announced today its financial and operating results for
the fourth quarter of 2025. For the quarter, the Company generated a net loss
of $377 million, or $0.79 per diluted share. When adjusted for certain
items that impact the comparability of results, the Company generated
an adjusted net loss((1)) of $78 million, or $0.16 per diluted share for
the fourth quarter of 2025.
FOURTH QUARTER 2025 AND POST QUARTER END HIGHLIGHTS
• Zero lost-time injuries or total recordable injuries in 2025
• Net Production((2)): ~67,900 barrels of oil equivalent per day
(boepd), up ~4% versus third quarter 2025, with sales of ~62,900 boepd
• Revenues: $295 million, or $50.88 per boe (excluding the impact of
derivative cash settlements)
• Production expense: $151 million ($22.24 per boe excluding $50.9
million of production expenses associated with the Greater Tortue Ahmeyim
(GTA) liquefied natural gas (LNG) project)
• Capital expenditures: $53 million and full year capital
expenditures of $292 million
• During December, GTA production averaged ~2.7 million tonnes per
annum (mtpa) equivalent with continued strong production into 2026, averaging
~2.9 mtpa equivalent year-to-date
• In December, the license extensions to 2040 for the Jubilee and
TEN fields were approved and were ratified by the Ghanaian parliament in
February, resulting in an increase in Ghana 1P and 2P reserves
• Year-end 2025 1P reserves of ~250 mmboe and 2P reserves of
~500mmboe, representing a ~10-year 1P and ~20-year 2P reserves life
• In January, the second producer well of the 2025/26 Jubilee
drilling campaign came online with gross production of ~13,000 barrels of oil
per day (bopd). Current Jubilee production remains above 70,000 bopd
• In January, Kosmos redeemed the remainder of its outstanding 2026
senior unsecured notes and successfully completed a $350 million senior
secured bond offering in the Nordic market with proceeds used to repurchase a
portion of Kosmos' 2027 senior unsecured notes and to repay borrowings under
the RBL
• In February, the TEN partnership finalized the acquisition of the
TEN FPSO, which is expected to result in a material reduction in operating
expenses
• In February, Kosmos announced the sale of the subsidiary owning
its participating interest in the Ceiba Field and Okume Complex located in
Block G offshore Equatorial Guinea, for up to $220 million
• In February 2026, RBL lenders approved an amended debt cover ratio
for the next two scheduled test dates
Commenting on the Company's fourth quarter and full year 2025 performance,
Chairman and Chief Executive Officer Andrew G. Inglis said: "2025 was a year
of laying the foundation for improved operational and financial performance.
In the past few months, we are starting to see the results of the team's hard
work and expect to deliver more wins in 2026 as we continue to grow
production, reduce costs and enhance the resilience of our balance sheet.
On production, the Jubilee drilling campaign continues to yield positive
results with the second well online, taking
current gross Jubilee production above 70,000 bopd, in line with Kosmos'
expectations. With five more wells still to come in the current drilling
campaign, sustained water injection and reliable facility operations, we
expect meaningful production growth from Jubilee through the remainder of the
year. On GTA, recent production has been excellent with the field producing
around 2.9 mtpa in 2026 year-to-date. With both of these key assets delivering
as anticipated, we expect 2026 production growth of around 15% year-on-year.
On costs, FY25 capex was well below budget demonstrating the continuing
rigorous control and allocation of capital. In 2026, we intend to keep capex
levels low and also drive a material reduction in operating costs of around
20% year-on-year.
On the balance sheet, we have raised $600 million in new capital over the past
few months, reducing our near-term bond maturities while creating additional
liquidity. With the near-term secure, we remain focused on accelerating
absolute debt reduction through free cash flow generation and non-core asset
sales. In 2026, we are targeting at least 10% debt reduction by year-end.
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."
FINANCIAL UPDATE
During the fourth quarter of 2025 and first quarter of 2026, Kosmos utilized
the proceeds from the senior secured term loan facility (the "Term Facility")
with Shell Trading (US) Company to redeem all its outstanding 2026 senior
unsecured notes. In January 2026, Kosmos successfully completed a $350 million
senior secured bond offering in the Nordic market with proceeds used to
repurchase a portion of Kosmos' 2027 senior unsecured notes and to repay $100
million of borrowings under the reserve-based lending facility (RBL).
In February 2026, our RBL lenders approved an amended debt cover ratio
calculation for the RBL, to increase the ratio for the next two scheduled
financial test dates to account for higher start-up operating costs at GTA and
the impact of those costs on the leverage calculation.
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 has 8.5 million barrels of oil hedged in 2026 with an average
floor of approximately $66/barrel and a further 2.0 million barrels hedged in
2027 with a floor of approximately $60/barrel.
Net capital expenditure for the fourth quarter of 2025 was $53 million, below
guidance primarily due to lower accrued capex in Ghana. Full year capital
expenditures of $292 million came in around 25% lower than our initial 2025
guidance. The Company also delivered over $25 million in overhead reductions
by the end of 2025, exceeding our target for the year. FY26 capital
expenditure is expected to be around $350 million, consistent with FY25 when
adjusting for the impact of the TEN FPSO purchase, with around two thirds
allocated to the high-return, fast payback drilling program in Jubilee.
During the quarter, Kosmos wrote off $144 million of suspended well costs
related to the Yakaar-Teranga fields in Senegal, incurred mostly in 2016 and
2017, and recorded impairments in the Gulf of America of approximately $178
million, largely related to Winterfell.
Kosmos exited the fourth quarter of 2025 with approximately $3.0 billion of
net debt((1)) and liquidity of approximately $342 million((3)).
RESERVES UPDATE
At year-end 2025, Kosmos 1P reserves were ~250 mmboe, a reserve life of
approximately 10 years. The 1P reserve replacement rate is ~90% for the year
(~120% excluding the Equatorial Guinea disposal assets) driven primarily by
the license extension of Jubilee. Kosmos 2P reserves were ~500 mmboe, a
reserve life of approximately 20 years, demonstrating the longevity of the
portfolio. The 2P reserve replacement rate of approximately (18)% is due to
minor downward revisions including in Equatorial Guinea. Kosmos 2P reserves do
not include any recognition for Tiberius or future phases of GTA beyond Phase
1+. Kosmos' year-end reserves on all assets have been independently prepared
by Ryder Scott.
OPERATIONAL UPDATE
Production
Total net production((2)) in the fourth quarter of 2025 averaged approximately
67,900 boepd, up around 4% on the previous quarter, with the increase largely
driven by the ramp up at GTA. Current net production of approximately 75,000
boepd has been positively impacted by the contribution of the latest Jubilee
producer well that came online in January.
The Company exited the quarter in a net underlift position of approximately
1.1 mmboe.
Mauritania and Senegal
GTA Phase 1 production averaged approximately 14,200 boepd net during the
quarter as the project ramped up to the floating LNG vessel's nameplate
capacity of 2.7 mtpa equivalent, averaging nameplate production through
December 2025.
During the fourth quarter, ~8.0 gross LNG cargos were lifted, in line with
guidance, bringing the total for 2025 to 18.5 gross LNG cargos, along with the
first gross condensate cargo, which was sold at a small discount to Brent.
Year-to-date production has been strong, at ~2.9 mtpa equivalent with 6.5
gross LNG cargos and one gross condensate cargo lifted so far. Gross LNG cargo
numbers are expected to roughly double year-on-year.
Lowering operating costs for GTA Phase 1 remains a priority for the
partnership in 2026 with net operating costs per boe expected to fall by more
than 50% year-on-year, including the FPSO re-financing which was completed in
January 2026. Focus continues with the operator to further reduce costs,
including the implementation of a lower-cost operating model.
With Phase 1 production fully ramped up, 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 is expected to commence construction of the gas pipeline network next
quarter, which will take gas from the hub terminal to shore for domestic
sales.
On Yakaar-Teranga, we are working with Petrosen to withdraw from the block
given we have not been able to attract a suitable partner and agree a
commercially attractive development concept with the government of Senegal.
Ghana
Production in Ghana averaged approximately 31,100 boepd net in the fourth
quarter of 2025. Kosmos lifted two cargos from Ghana during the quarter, with
a third expected cargo lifted in early 2026.
At Jubilee (38.6% working interest), oil production in the fourth quarter
averaged approximately 59,100 bopd gross, consistent with expectations of
slowing base decline (~5% quarter over quarter).
The second producer well of the 2025/26 Jubilee drilling campaign (J74) came
online in early January and is now fully ramped up. Gross daily production
from the well is ~13,000 barrels of oil per day, increasing average gross
Jubilee oil production to over 70,000 bopd in February, in line with Kosmos'
expectations. The first of five planned wells for 2026 (J75) has been drilled,
encountering approximately 40 meters of net pay. J75 is expected to be
completed in three zones, similar to the J74 and J72 wells, and is expected
online around the end of the first quarter. After J75, a further four wells
are expected online in 2026 (three additional producer wells and one water
injector well).
In the fourth quarter of 2025, Ghana gas production net to Kosmos was
approximately 6,500 boepd, in line with expectations.
At TEN (20.4% working interest), oil production averaged approximately 15,100
bopd gross for the fourth 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.
The license extensions bring key benefits to Ghana including up to $2 billion
in incremental investment by the partnership as well as higher volumes of
affordable gas from the fields for domestic power generation. Kosmos is
pleased to have played a leading role in progressing, negotiating and
executing this extension. As part of the extension, the amended Jubilee plan
of development will include up to 20 additional wells in the field and, as a
result, Kosmos has realized an increase in Jubilee 1P and 2P reserves.
Gulf of America
Production in the Gulf of America averaged approximately 16,900 boepd net
(~83% oil) during the fourth quarter, slightly below guidance due to some
unplanned facility downtime.
On Tiberius, in the outboard Wilcox play, Kosmos (operator, 50% working
interest) has made good progress on the development plan with our partner Oxy
(50% working interest). Final investment decision and a farm down to reduce
Kosmos' working interest are expected in the first half of 2026.
Kosmos has also deepened its inventory of future opportunities for its broader
infrastructure-led exploration (ILX) strategy in the Gulf of America. In
February 2026, Kosmos entered into a strategic alliance with Shell, exchanging
interests in five exploration blocks 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 potentially sizable
prospect that could be tied back into Shell's nearby Appomattox platform in
the event of success. Drilling of Trailblazer is planned for 2027 with Kosmos
designated as development operator.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 16,200 bopd gross and
5,700 bopd net in the fourth quarter. Kosmos lifted 0.5 cargos from Equatorial
Guinea during the quarter in line with guidance. The previously communicated
subsea pump repair program is ongoing.
In February, Kosmos announced that it had 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. The
consideration consists of an upfront cash payment of $180 million, subject to
certain adjustments, plus contingent payments of $12.5 million linked to Ceiba
field performance and $9 million payable in each of 2027, 2028 and 2029, which
are subject to certain oil price and production thresholds. The transaction
enhances liquidity from monetizing non-core assets and accelerates debt
reduction. Proceeds will be used to reduce borrowings outstanding under the
RBL. The transaction has an effective date of January 1, 2025, has been
approved by the Government of Equatorial Guinea and is expected to close
midyear 2026, subject to customary CEMAC approval.
(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 December 31, 2025, we had liquidity of approximately $342 million
consisting of approximately $92 million in cash and cash equivalents, undrawn
availability under the RBL of $150 million and undrawn availability under the
Term Facility of $100 million. Under the terms of the Credit Agreement,
borrowings on the Term Facility were utilized to pay down the remainder of the
outstanding 7.125% Senior Notes due 2026.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss fourth quarter 2025
financial and operating results today, March 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 +1-877-407-0784. 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 Years Ended
December 31, December 31,
2025 2024 2025 2024
Revenues and other income:
Oil and gas revenue $ 294,623 $ 397,561 $ 1,288,352 $ 1,675,358
Gain on sale of assets 1,600 - 2,200 -
Other income, net 249 95 1,098 204
Total revenues and other income 296,472 397,656 1,291,650 1,675,562
Costs and expenses:
Oil and gas production 150,780 152,692 708,902 530,514
Exploration expenses 154,930 79,915 223,616 119,907
General and administrative 17,905 23,431 76,120 100,155
Depletion, depreciation and amortization 143,325 145,024 556,774 456,774
Impairment of long-lived assets 177,563 - 177,563 -
Interest and other financing costs, net 58,835 12,759 223,430 88,598
Derivatives, net (35,185) 6,383 (53,665) 12,099
Other expenses, net (1,363) 11,285 13,491 17,703
Total costs and expenses 666,790 431,489 1,926,231 1,325,750
Income (loss) before income taxes (370,318) (33,833) (634,581) 349,812
Income tax expense (benefit) 6,823 (27,254) 65,205 159,961
Net income (loss) $ (377,141) $ (6,579) $ (699,786) $ 189,851
Net income (loss) per share:
Basic $ (0.79) $ (0.01) $ (1.47) $ 0.40
Diluted $ (0.79) $ (0.01) $ (1.47) $ 0.40
Weighted average number of shares used to compute net income (loss) per share:
Basic 478,326 471,894 477,591 470,844
Diluted 478,326 471,894 477,591 476,691
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December 31, December 31,
2025 2024
Assets
Current assets:
Cash and cash equivalents $ 91,518 $ 84,972
Receivables, net 103,472 164,959
Other current assets 232,884 196,201
Total current assets 427,874 446,132
Property and equipment, net 3,733,784 4,444,221
Other non-current assets 534,968 418,635
Total assets $ 4,696,626 $ 5,308,988
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 202,555 $ 349,994
Accrued liabilities 237,609 244,954
Current maturities of long-term debt 132,143 -
Total current liabilities 572,307 594,948
Long-term liabilities:
Long-term debt, net 2,920,616 2,744,712
Deferred tax liabilities 305,924 313,433
Other non-current liabilities 369,189 455,471
Total long-term liabilities 3,595,729 3,513,616
Total stockholders' equity 528,590 1,200,424
Total liabilities and stockholders' equity $ 4,696,626 $ 5,308,988
Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended Years Ended
December 31, December 31,
2025 2024 2025 2024
Operating activities:
Net income (loss) $ (377,141) $ (6,579) $ (699,786) $ 189,851
Adjustments to reconcile net income to net cash provided by operating
activities:
Depletion, depreciation and amortization (including deferred financing costs) 145,549 146,919 564,660 465,483
Deferred income taxes (7,424) (63,454) (6,738) (52,174)
Unsuccessful well costs and leasehold impairments 151,119 70,617 202,492 74,489
Impairment of long-lived assets 177,563 - 177,563 -
Change in fair value of derivatives (34,333) 2,939 (45,008) 14,747
Cash settlements on derivatives, net(1) 3,380 (4,898) 6,181 (19,652)
Equity-based compensation 6,944 10,102 27,953 37,951
Gain on sale of assets (1,600) - (2,200) -
Debt modifications and extinguishments 195 379 195 25,173
Other (10,389) (1,609) (21,881) (13,735)
Changes in assets and liabilities:
Net changes in working capital (18,563) 21,331 (69,419) (43,884)
Net cash provided by operating activities 35,300 175,747 134,012 678,249
Investing activities
Oil and gas assets (70,275) (161,421) (314,408) (933,659)
Notes receivable and other investing activities - (29,822) (86,791) (32,397)
Net cash used in investing activities (70,275) (191,243) (401,199) (966,056)
Financing activities:
Borrowings under long-term debt 300,000 50,000 675,000 325,000
Payments on long-term debt (75,000) - (225,000) (350,000)
Net proceeds from issuance of senior notes - - - 885,285
Purchase of capped call transactions - - - (49,800)
Repurchase and redemption of senior notes (150,000) - (150,000) (499,515)
Other financing costs (345) (1,113) (346) (36,647)
Net cash provided by financing activities 74,655 48,887 299,654 274,323
Net increase (decrease) in cash, cash equivalents and restricted cash 39,680 33,391 32,467 (13,484)
Cash, cash equivalents and restricted cash at beginning of period 78,064 51,886 85,277 98,761
Cash, cash equivalents and restricted cash at end of period $ 117,744 $ 85,277 $ 117,744 $ 85,277
(1) Cash settlements on commodity hedges were $3.1 million and $(2.5)
million for the three months ended December 31, 2025 and 2024, respectively,
and $10.4 million and $(12.5) million for the years ended December 31, 2025
and 2024, respectively.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited)
Three Months Ended Years ended
December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Net income (loss) $ (377,141) $ (6,579) $ (699,786) $ 189,851
Exploration expenses 154,930 79,915 223,616 119,907
Depletion, depreciation and amortization 143,325 145,024 556,774 456,774
Impairment of long-lived assets 177,563 - 177,563 -
Equity-based compensation 6,944 10,102 27,953 37,951
Derivatives, net (35,185) 6,383 (53,665) 12,099
Cash settlements on commodity derivatives 3,054 (2,532) 10,395 (12,488)
Other expenses, net(1) (1,363) 11,285 13,491 17,703
Gain on sale of assets (1,600) - (2,200) -
Interest and other financing costs, net 58,835 12,759 223,430 88,598
Income tax expense (benefit) 6,823 (27,254) 65,205 159,961
EBITDAX $ 136,185 $ 229,103 $ 542,776 $ 1,070,356
EBITDAX - M/S 1,915 (37,969) (129,482) (104,386)
EBITDAX - Base Business $ 134,270 $ 267,072 $ 672,258 $ 1,174,742
The following table presents our net debt as of December 31, 2025 and
December 31, 2024:
December 31, December 31,
2025 2024
Total long-term debt $ 3,100,274 $ 2,800,274
Cash and cash equivalents 91,518 84,972
Total restricted cash 26,226 305
Net debt $ 2,982,530 $ 2,714,997
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended Years Ended
December 31, December 31,
2025 2024 2025 2024
Net income (loss) $ (377,141) $ (6,579) $ (699,786) $ 189,851
Derivatives, net (35,185) 6,383 (53,665) 12,099
Cash settlements on commodity derivatives 3,054 (2,532) 10,395 (12,488)
Gain on sale of assets (1,600) - (2,200) -
Impairment of long-lived assets 177,563 - 177,563 -
Other, net(2) (1,400) 8,178 12,985 14,070
Impairment of suspended well costs 151,092 37,175 202,152 37,175
Debt modifications and extinguishments 195 379 195 25,173
Total selected items before tax 293,719 49,583 347,425 76,029
Income tax (expense) benefit on adjustments(1) 8,664 (2,291) 7,205 (22)
Impact of valuation adjustments and other tax items (2,891) (56,295) (2,891) (64,258)
Adjusted net income (loss) $ (77,649) (15,582) (348,047) 201,600
Net income (loss) per diluted share $ (0.79) $ (0.01) $ (1.47) $ 0.40
Derivatives, net (0.07) 0.01 (0.11) 0.03
Cash settlements on commodity derivatives 0.01 (0.01) 0.02 (0.03)
Gain on sale of assets - - - -
Impairment of long-lived assets 0.37 - 0.37 -
Other, net(2) - 0.03 0.03 0.03
Impairment of suspended well costs 0.31 0.08 0.42 0.08
Debt modifications and extinguishments - - - 0.05
Total selected items before tax 0.62 0.11 0.73 0.16
Income tax (expense) benefit on adjustments(1) 0.02 - 0.02 -
Impact of valuation adjustments and other tax items (0.01) (0.13) (0.01) (0.14)
Adjusted net income (loss) per diluted share $ (0.16) $ (0.03) $ (0.73) $ 0.42
Weighted average number of diluted shares 478,326 471,894 477,591 476,691
(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 Years Ended
December 31, December 31,
2025 2024 2025 2024
Reconciliation of free cash flow:
Net cash provided by operating activities $ 35,300 $ 175,747 $ 134,012 $ 678,249
Net cash used for oil and gas assets (70,275) (161,421) (314,408) (933,659)
Free cash flow (34,975) 14,326 (180,396) (255,410)
Net cash provided by (used in) operating activities - M/S (26,910) 14,773 (227,365) 5,701
Net cash used for oil and gas assets - M/S 12,970 (75,500) (58,352) (462,641)
Base business free cash flow $ (21,035) $ 75,053 $ 105,321 $ 201,530
Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended Years Ended
December 31, December 31,
2025 2024 2025 2024
Net Volume Sold
Oil (MMBbl) 3.630 5.238 16.452 20.472
Gas (MMcf) 11.276 (1) 4.189 (1) 32.280 (1) 16.180 (1)
NGL (MMBbl) 0.281 0.106 0.582 0.338
Total (MMBoe) 5.790 6.042 22.414 23.507
Total (MBoepd) 62.938 65.676 61.408 64.226
Revenue
Oil sales $ 219,899 $ 380,397 $ 1,100,483 $ 1,611,169
Gas sales 63,109 15,025 170,548 57,243
NGL sales 11,615 2,139 17,321 6,946
Total oil and gas revenue 294,623 397,561 1,288,352 1,675,358
Cash settlements on commodity derivatives 3,054 (2,532) 10,395 (12,488)
Realized revenue $ 297,677 $ 395,029 $ 1,298,747 $ 1,662,870
Oil and Gas Production Costs $ 150,780 (1) $ 152,692 (1) $ 708,902 (1) $ 530,514 (1)
Sales per Bbl/Mcf/Boe
Average oil sales price per Bbl $ 60.58 $ 72.62 $ 66.89 $ 78.70
Average gas sales price per Mcf 5.60 3.59 5.28 3.54
Average NGL sales price per Bbl 41.33 20.18 29.76 20.55
Average total sales price per Boe 50.88 65.80 57.48 71.27
Cash settlements on commodity derivatives per Boe 0.53 (0.42) 0.46 (0.53)
Realized revenue per Boe 51.41 65.38 57.94 70.74
Oil and gas production costs per Boe $ 26.04 $ 25.27 $ 31.63 $ 22.57
Oil and gas production costs per Boe ex. M/S ((1)) $ 22.24 $ 19.39 $ 24.11 $ 18.59
(1) Includes $50.9 million and $237.6 million for the three and twelve
months ended December 31, 2025, respectively, and $35.6 million and $93.4
million for the three and twelve months ended December 31, 2024, 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 twelve months ended December 31, 2025 were 1.302 MMboe and
2.865 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 December 31, 2025.
Kosmos Energy Ltd.
Hedging Summary
As of December 31, 2025((1))
(Unaudited)
Weighted Average Price per Bbl
Index MBbl Floor(2) Sold Put Ceiling
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 - -
2027:
Swaps 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 December 31, 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.
2026 Guidance
1Q 2026 FY 2026 Guidance
Production(1,2,3) 72,000 - 76,000 boe per day 70,000 - 78,000 boe per day
Opex(4) $18.00 - $20.00 per boe $20.00 - $22.00 per boe
DD&A $17.00 - $19.00 per boe $18.00 - $20.00 per boe
G&A (~65% cash) ~$20 million ~$75 million
Exploration Expense(5) ~$5 million $10 - $30 million
Net Interest Expense $50 - $60 million ~$240 - $260 million
Tax $4.00 - $6.00 per boe $5.00 - $7.00 per boe
Capital Expenditure $75 - $100 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) 1Q 2026 net cargo forecast - Ghana: 3 cargos / Equatorial Guinea: 0.5
cargo. FY 2026 Ghana: 12-13 cargos / Equatorial Guinea 2-3 cargos. Average
cargo sizes 950,000 barrels of oil.
(2) 1Q 2026 gross cargo forecast - Mauritania & Senegal: 9-10 cargos.
FY 2026: 32-36 cargos. Average cargo size ~170,000 m(3) with Kosmos NRI of
~24%.
(3) Gulf of America Production: 1Q 2026 forecast 16,000 - 18,000 boe per
day. FY 2026: 15,000-17,000 boe per day. Oil/Gas/NGL split for 2026:
~83%/~11%/~6%.
(4) FY 2026 opex includes operating costs associated with GTA.
(5) 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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