Kosmos Energy (LSE:KOS) reported a third-quarter net loss of $43 million, or $0.07 per diluted share, narrower than the $124 million loss a year earlier, as the deepwater oil and gas producer pressed ahead with debt reduction and completed a key refinancing.
Adjusted net income, which strips out derivative and other one-off items, came in at $35 million, or $0.06 per diluted share, reversing an adjusted net loss of $72 million in the third quarter of 2025.
Revenue rose to $410 million, or $71.39 per barrel of oil equivalent excluding derivative cash settlements, from $311 million a year earlier.
Net production averaged approximately 69,200 barrels of oil equivalent per day, up around 6% year-on-year, or about 17% excluding the divested Equatorial Guinea assets.
Production expense fell roughly 31% year-on-year in absolute terms to $102 million, or $17.72 per barrel.
The company generated free cash flow of approximately $90 million in the quarter, its third consecutive quarter of positive free cash flow, bringing the year-to-date total to $193 million.
Net debt stood at approximately $2.47 billion at quarter-end, down by more than $500 million since the start of the year, with liquidity of around $570 million.
Kosmos said it remains on track to hit its roughly 20% net debt reduction target for 2026, with year-end net debt now expected below $2.4 billion and leverage trending toward 2.0 times.
In October, the company completed an amendment and extension of its reserves-based lending facility, resizing total commitments to $1.2 billion and pushing the final maturity to April 2033, with no amortisation payments now due until 2031 given $750 million currently drawn.
"With the RBL re-financing complete, we have further increased our financial resilience and will now look to address our 2028 bond maturities," said chairman and chief executive Andrew G. Inglis, who added that Kosmos continued to make progress against its four objectives of raising production, lowering costs, cutting debt and advancing growth projects.
At Jubilee in Ghana, Kosmos's largest producing asset, gross oil production averaged approximately 84,500 barrels of oil per day in the quarter, approximately 17% higher than the second quarter, as the partnership completed its 2025/26 drilling campaign with seven successful infill wells, the last a water injector.
The partnership has secured the Noble Faye Kozack rig for a follow-up campaign of up to ten wells expected to start in mid-2027.
Greater Tortue Ahmeyim, the Mauritania/Senegal deepwater gas project Kosmos develops with partners, produced approximately 14,600 boe per day net in the quarter, with the partnership lifting 8.5 gross LNG cargos, slightly ahead of guidance and bringing the nine-month total to 27; full-year gross cargo liftings are now expected at the upper end of the 32-36 range.
Read more about Kosmos Energy
- 03/08/26Kosmos Energy production grows in second quarter
- 06/07/26Kosmos Energy cuts net debt by $400 million in first half as Ghana wells surge
- 17/06/26Kosmos Energy banks $127m in Equatorial Guinea asset sale
Kosmos completed the previously announced farm-down of its operated Tiberius project in the Gulf of America, bringing in Navitas as a 33.33% partner alongside Kosmos (33.34%) and Occidental (33.33%), in exchange for upfront cash, a capital carry through the first half of 2027, and future milestone payments.
Capital expenditure was $85 million in the quarter, in line with guidance, with full-year 2026 guidance unchanged at approximately $350 million.
The company has added hedges for 2027, now covering 8 million barrels of oil at an average floor of approximately $68 per barrel and an average ceiling of approximately $84 per barrel.
For the fourth quarter, Kosmos guided to production of 60,000 to 64,000 barrels of oil equivalent per day and capital expenditure of $50 million to $75 million, with Gulf of America output expected to be affected by planned Delta House platform maintenance, a workover on the Kodiak-1 well, and downtime from Hurricane Isaias.