Kosmos Energy (LSE:KOS), the Dallas-based oil and gas producer with assets in Ghana, Mauritania, Senegal and the Gulf of America, generated net income of $185 million, or $0.31 per diluted share, for the second quarter of 2026.
Adjusted net income, which strips out items affecting comparability, was $68 million, or $0.11 per diluted share.
Revenue reached $607 million, or $86.68 per barrel of oil equivalent, on net production of approximately 71,400 barrels of oil equivalent per day, up around 12% versus the second quarter of 2025.
Production expense fell approximately 25% year-on-year to $179 million, or $25.61 per barrel.
The company generated free cash flow of approximately $89 million, supporting a reduction in net debt of more than $400 million in the first half, leaving net debt at approximately $2.56 billion with over $500 million of liquidity.
Two new Jubilee wells came online late in the quarter and into the third quarter, with the field's last producer due imminently and expected to lift gross production above 90,000 barrels of oil per day.
Kosmos also completed the sale of its Ceiba Field and Okume Complex interests in Equatorial Guinea for approximately $127 million, used to repay borrowings, and, post quarter-end, farmed down its operated Tiberius project in the Gulf of America to Navitas.
"In the first half of 2026, we have made excellent progress" against goals to raise production, lower costs, cut debt and advance growth projects, said chief executive Andrew G. Inglis.
Full-year 2026 capital expenditure guidance remains unchanged at $350 million, and Kosmos has commenced refinancing of its reserve-based lending facility, targeting completion in the fourth quarter.
News Intelligence what this means for the company
Kosmos Energy delivered 12% year-on-year production growth to 71,400 boe/d in Q2 2026, driven by Jubilee well additions and GTA cargo liftings, while slashing production costs 25% and cutting net debt by over $400 million in the first half. The company is now positioned with net debt of $2.56 billion against liquidity above $500 million, and expects Jubilee gross production to exceed 90,000 boe/d once the final producer comes online—a material step toward its stated production and deleveraging goals.
Net debt reduction of more than $400 million in H1 2026 and the 25% year-on-year fall in unit production costs materially improve the company's financial flexibility and cash generation profile, while the imminent completion of Jubilee's final producer well removes a near-term execution risk and should drive further production upside into H2 2026.
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