Press Releases August 3, 2026 02:00 AM

Kosmos Energy Announces Second Quarter 2026 Results

Kosmos Energy reports strong Q2 2026 with increased production, revenue growth, and significant debt reduction

By Ajmal Hussain
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Kosmos Energy announced robust financial and operational results for Q2 2026, highlighted by a 12% production increase to approximately 71,400 boepd, revenue of $607 million, and net income of $185 million. Key operational achievements include new wells ramping up production in Ghana, high LNG cargo liftings at Greater Tortue Ahmeyim, and successful asset sales and farm-down transactions. The company is on track to meet its 2026 goals for production growth, cost reduction, and debt reduction, supported by $89 million in free cash flow and ongoing capital expenditure discipline.

Kosmos Energy Announces Second Quarter 2026 Results
KOS
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Key Points

  • Q2 2026 net production rose 12% year-over-year to ~71,400 boepd, driven by Ghana (Jubilee wells) and LNG production at Greater Tortue Ahmeyim.
  • Kosmos generated $607 million in revenues with improved realized prices and reduced production expenses by ~25% versus prior year.
  • Successful sale of Equatorial Guinea assets for $127 million and farm-down of the Tiberius Gulf of America project improved capital allocation and financial flexibility.
  • The company generated ~$175 million operating cash flow and reduced net debt by over $400 million in H1 2026, reflecting strong balance sheet management.

DALLAS, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS) announced today its financial and operating results for the second quarter of 2026. For the quarter, the Company generated net income of $185 million, or $0.31 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net income(1) of $68 million, or $0.11 per diluted share for the second quarter of 2026.

SECOND QUARTER 2026 AND POST QUARTER END HIGHLIGHTS

  • Net Production(2): ~71,400 barrels of oil equivalent per day (boepd), up ~12% versus second quarter 2025

  • Revenues: $607 million, or $86.68 per barrel of oil equivalent (boe) (excluding the impact of derivative cash settlements)

  • Production expense: $179 million (or $25.61 per boe), a reduction of ~25% compared to second quarter 2025

  • Capital expenditures: $105 million

  • Two new Jubilee wells came online late second quarter/early third quarter with the last producer of the current campaign due online imminently and expected to increase Jubilee gross production to >90,000 barrels of oil per day (bopd)

  • Greater Tortue Ahmeyim (GTA) gross production averaged ~2.65 million tonnes per annum (mtpa) for the second quarter, with nine gross LNG cargos lifted (averaging ~2.7 mtpa in the first half of the year)

  • Kosmos completed the sale of its interest in the Ceiba Field and Okume Complex in Equatorial Guinea

  • Generated net cash provided by operating activities of ~$175 million and ~$89 million of free cash flow(1), supporting net debt reduction of >$400 million in the first half of the year

  • Post quarter-end, Kosmos successfully completed the farm down of the operated Tiberius project in the Gulf of America

Commenting on the Company’s second quarter 2026 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: “At the start of the 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. In the first half of 2026, we have made excellent progress in each area.

“In Ghana, the Jubilee drilling campaign continues to deliver strong results, with production trending toward the upper end of our guidance. At GTA, nine gross LNG cargos were lifted during the quarter, underscoring the project’s reliable contribution to our annual production outlook. In the Gulf of America, we completed a highly competitive farm-down process for Tiberius, bringing in a new partner aligned with our strategy to grow value from the asset. We also completed the sale of our Equatorial Guinea production assets, further high-grading the portfolio and concentrating capital on lower-cost, higher-return opportunities.

“On the finance side of the business, we had an active first half of the year with the GTA bond and equity raise. This financial delivery, combined with our operational momentum, has resulted in improved credit ratings, which is important as we proactively manage our maturity schedule. In the second half of the year, we have commenced the RBL re-financing process and are making good progress towards achieving our ~20% debt reduction target for the year.”

FINANCIAL UPDATE

In April, Kosmos completed its spring reserve-based lending facility (RBL) re-determination with the borrowing base reduced to approximately $1.2 billion following the completion of the Equatorial Guinea asset sale in June.

The process to re-finance the facility with our lending banks has now commenced, targeting completion by the fourth quarter.

Kosmos took advantage of higher oil prices to add further hedges for 2027. The company has 3.25 million barrels of oil hedged for the remainder of 2026 with an average floor of approximately $66/barrel and a further 7.0 million barrels hedged in 2027 with a floor of approximately $67/barrel and a ceiling of approximately $84/barrel.

Net capital expenditure for the second quarter of 2026 was $105 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 $175 million and free cash flow(1) of approximately $89 million in the second quarter. Kosmos exited the quarter of 2026 with approximately $2.56 billion of net debt(1) and over $500 million of liquidity.

OPERATIONAL UPDATE

Production

Total net production(2) in the second quarter of 2026 averaged approximately 71,400 boepd, up ~12% versus second quarter 2025. The increase was largely driven by the ramp up at GTA and new wells coming online at Jubilee. This only includes Equatorial Guinea production through June 16, 2026, the date on which the asset sale was closed, reducing second quarter production by approximately ~1,000 boepd. Sales for the second quarter of 2026 were approximately 77,000 boepd.

The Company exited the quarter in a net underlift position of approximately 0.5 mmboe.

Ghana

Production in Ghana averaged approximately 36,300 boepd net in the second quarter of 2026, which included gas production of approximately 7,000 boepd. Two full Jubilee cargo liftings and one TEN lifting took place in the second quarter, in line with guidance. A third Jubilee cargo began lifting on the last day of the quarter and was completed on July 2, 2026.

At Jubilee (38.6% working interest), oil production in the second quarter averaged approximately 72,000 bopd gross. The J76 well came online in mid-June followed by the J77 well in early July. Initial performance from these wells has been strong, in line with the high end of expectations. The J50 well, a completion of a previously drilled well, is due online in the coming days and is expected to increase Jubilee gross production to >90,000bopd. A water injection well will conclude the drilling campaign and is expected online at the end of the third quarter. The partnership is currently working to secure a rig for the 2027/28 campaign to drill up to ten wells, expected to start in mid 2027.

At TEN (20.4% working interest), oil production averaged approximately 14,700 bopd gross for the second quarter, in line with expectations.

Mauritania and Senegal

GTA Phase 1 production averaged approximately 15,700 boepd net during the quarter, or approximately 2.65 mtpa of LNG equivalent gross, slightly lower than the first quarter primarily due to warmer seasonal temperatures as highlighted last quarter. The partnership lifted nine gross LNG cargos in the second quarter, at the upper end of guidance, bringing the total first half gross LNG cargos to 18.5. Full year guidance of 32-36 gross LNG cargos remains unchanged. One condensate cargo was lifted by Kosmos and the national oil companies of Mauritania and Senegal in the second quarter. The final condensate cargo in 2026 is expected to be lifted by Kosmos and the national oil companies of Mauritania and Senegal late in the third quarter.

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, initially for power generation. Heads of terms for domestic gas sales are targeted in 2026. Senegal is constructing an onshore power plant near Saint Louis and is expected to commence construction of the gas pipeline network this quarter with pipe expected to arrive imminently from China after a longer voyage to avoid the Middle East. The pipeline will transport gas from the GTA hub terminal for domestic power generation. Mauritania has also signed a 25-year agreement with a Saudi Arabian power company, to develop, finance and operate a 230 MW gas-fired power plant in N'Diago, which plans to use gas supplied from the GTA field.

Gulf of America

Production in the Gulf of America averaged approximately 14,300 boepd net (~83% oil) during the second quarter, within guidance.

On the Kosmos-operated Tiberius project, Kosmos and Occidental took final investment decision (FID) in March. Following FID, Kosmos successfully completed a highly competitive farm out process in July, with Navitas becoming a 33.33% partner in the project alongside Kosmos (33.34%) and Occidental (33.33%, owner/operator of the host facility). The consideration for the farm down is a mix of upfront cash, carry for future development capital expenditure, which is expected to cover Kosmos spend on the project through 2026 into mid-2027, and future milestone payments.

At Winterfell, the partnership spud Winterfell-5 in April 2026. The well was temporarily abandoned in July 2026 by the operator due to issues with the production casing. The partnership is evaluating the cause of the issue in order to restore production from the fault block.

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 the Norphlet trend earlier in the year. Shell and Kosmos have aligned interests over ten blocks in the Gulf of America to explore multiple high-potential prospects, including Trailblazer, a prospect with significant potential (~200 mmboe gross). Shell plans to begin drilling Trailblazer in the first quarter of 2027. In the event of success, Trailblazer could be tied back into Shell's nearby Appomattox platform with Kosmos designated as development operator.

Equatorial Guinea

Production in Equatorial Guinea averaged approximately 14,500 bopd gross and 5,100 bopd net in the second quarter through June 16, 2026. Kosmos lifted 0.4 cargos from Equatorial Guinea during the quarter in line with guidance.

On June 17, 2026, Kosmos announced that it had completed the sale of its 40.375% non-operating working interest in the Ceiba Field and Okume Complex production assets to Panoro Energy. The final cash consideration on completion, post-closing adjustments, was approximately $127 million and was used to repay borrowings under the RBL. The closing adjustments reflect the cash received from the assets in the first half of 2026 to completion on June 16, 2026. Future contingent payments of up to ~$40 million are subject to certain oil price and production thresholds.

Full year 2026 guidance has been updated in the table below for the sale of the Equatorial Guinea production assets in June. The mid-point of the updated production and operating cost/boe ranges for FY26 reflect the continued strong performance of the portfolio post the Equatorial Guinea sale.

(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure. Net debt excludes $73.2 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 second quarter 2026 financial and operating results today, August 3, 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, 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 Six Months Ended  June 30, June 30,   2026   2025   2026   2025 Revenues and other income:        Oil and gas revenue $607,253  $392,635  $977,981  $682,770 Gain on sale of assets  9,421   600   9,421   600 Other income, net  361   283   530   579 Total revenues and other income  617,035   393,518   987,932   683,949          Costs and expenses:        Oil and gas production  179,429   243,118   310,024   410,426 Exploration expenses  3,197   4,069   22,941   13,738 General and administrative  19,263   19,074   46,973   45,329 Depletion, depreciation and amortization  120,501   151,268   240,374   271,935 Interest and other financing costs, net  53,700   54,834   112,502   106,676 Derivatives, net  (51,809)  (21,566)  200,187   (14,834)Other expenses, net  10,281   6,481   13,545   8,470 Total costs and expenses  334,562   457,278   946,546   841,740          Income (loss) before income taxes  282,473   (63,760)  41,386   (157,791)Income tax expense  97,698   23,980   82,185   40,555 Net income (loss) $184,775  $(87,740) $(40,799) $(198,346)         Net income (loss) per share:        Basic $0.31  $(0.18) $(0.07) $(0.42)Diluted $0.31  $(0.18) $(0.07) $(0.42)                  Weighted average number of shares used to compute net income (loss) per share:        Basic  593,441   478,068   550,060   476,881 Diluted  604,713   478,068   550,060   476,881 



Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
  June 30, December 31,  2026 2025Assets    Current assets:    Cash and cash equivalents $102,137 $91,518Receivables, net  113,022  103,472Other current assets  177,584  232,884Total current assets  392,743  427,874     Property and equipment, net  3,351,526  3,733,784Other non-current assets  565,878  534,968Total assets $4,310,147 $4,696,626     Liabilities and stockholders’ equity    Current liabilities:    Accounts payable $161,981 $202,555Accrued liabilities  343,879  237,609Current maturities of long-term debt  145,303  132,143Other current liabilities  11,633  —Total current liabilities  662,796  572,307     Long-term liabilities:    Long-term debt, net  2,526,872  2,920,616Deferred tax liabilities  177,375  305,924Other non-current liabilities  238,207  369,189Total long-term liabilities  2,942,454  3,595,729     Total stockholders’ equity  704,897  528,590Total liabilities and stockholders’ equity $4,310,147 $4,696,626



Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
  Three Months Ended Six Months Ended  June 30, June 30,   2026   2025   2026   2025 Operating activities:        Net income (loss) $184,775  $(87,740) $(40,799) $(198,346)Adjustments to reconcile net income to net cash provided by operating activities:        Depletion, depreciation and amortization (including deferred financing costs)  123,206   153,157   245,671   275,708 Deferred income taxes  47,745   (175)  (1,268)  1,636 Unsuccessful well costs and leasehold impairments  (582)  (1,741)  13,959   162 Change in fair value of derivatives  (40,684)  (15,469)  262,292   (7,883)Cash settlements on derivatives, net(1)  (117,363)  5,787   (198,684)  6,281 Equity-based compensation  8,114   7,346   14,064   15,707 Gain on sale of assets  (9,421)  (600)  (9,421)  (600)Debt modifications and extinguishments  136   —   (1,081)  — Other  (13,198)  (2,909)  (20,759)  (8,506)Changes in assets and liabilities:        Net changes in working capital  (7,718)  69,512   17,592   42,121 Net cash provided by operating activities  175,010   127,168   281,566   126,280          Investing activities        Oil and gas assets  (76,430)  (82,521)  (163,477)  (172,766)Proceeds on sale of assets  127,034   —   127,034   — Notes receivable and other investing activities  —   (42,743)  (11,598)  (86,791)Net cash provided by (used in) investing activities  50,604   (125,264)  (48,041)  (259,557)         Financing activities:        Borrowings under long-term debt  —   100,000   124,167   200,000 Payments on long-term debt  (227,000)  (100,000)  (504,738)  (100,000)Net proceeds from issuance of senior notes and bonds  —   —   350,000   — Repurchase and redemption of senior notes  (200)  —   (347,184)  — Net proceeds from issuance of common stock  —   —   206,440   — Payments on finance lease  (9,689)  —   (14,951)  — Other financing costs  (1,041)  (1)  (8,772)  (1)Net cash provided by (used in) financing activities  (237,930)  (1)  (195,038)  99,999          Net increase (decrease) in cash, cash equivalents and restricted cash  (12,316)  1,903   38,487   (33,278)Cash, cash equivalents and restricted cash at beginning of period  168,547   50,096   117,744   85,277 Cash, cash equivalents and restricted cash at end of period $156,231  $51,999  $156,231  $51,999 

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(1)   Cash settlements on commodity hedges were $(105.4) million and $11.4 million for the three months ended June 30, 2026 and 2025, respectively, and $(135.7) million and $9.7 million for the six months ended June 30, 2026 and 2025, respectively.



Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited) Three Months Ended Six months ended Twelve Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 June 30, 2026Net income (loss)$184,775  $(87,740) $(40,799) $(198,346) $(542,239)Exploration expenses 3,197   4,069   22,941   13,738   232,819 Depletion, depreciation and amortization 120,501   151,268   240,374   271,935   525,213 Impairment of long-lived assets —   —   —   —   177,563 Equity-based compensation 8,114   7,346   14,064   15,707   26,310 Derivatives, net (51,809)  (21,566)  200,187   (14,834)  161,356 Cash settlements on commodity derivatives (105,381)  11,414   (135,723)  9,664   (134,993)Other expenses, net 10,282   6,481   13,546   8,470   18,567 Gain on sale of assets (9,421)  (600)  (9,421)  (600)  (11,021)Interest and other financing costs, net 53,700   54,834   112,502   106,676   229,256 Income tax expense 97,698   23,980   82,185   40,555   106,835 EBITDAX$311,656  $149,486  $499,856  $252,965  $789,666 Pro Forma Adjustment - TEN FPSO Lease and EG Divestiture(1)(2) 27,324   —   27,301   —   33,403 Pro Forma EBITDAX 338,980   149,486   527,157   252,965   823,069 

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(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.
(2)   Adjustment to present Pro Forma EBITDAX for the impact of the oil revenues and expenses and results of operations of the sold interest in the Ceiba Field and Okume Complex production assets located in Block G offshore Equatorial Guinea to Panoro Energy ASA, for the respective period. The transaction closed on June 16, 2026.

The following table presents our net debt as of June 30, 2026 and December 31, 2025:

   June 30, December 31,    2026(1) 2025  Total long-term debt $2,719,676 $3,100,274  Cash and cash equivalents  102,137  91,518  Total restricted cash  54,094  26,226  Net debt $2,563,445 $2,982,530 

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(1)   Excludes $73.2 million TEN FPSO finance lease liability.



Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)

 Three Months Ended Six Months Ended June 30, June 30,  2026   2025   2026   2025 Net income (loss)$184,775  $(87,740) $(40,799) $(198,346)        Derivatives, net (51,809)  (21,566)  200,187   (14,834)Cash settlements on commodity derivatives (105,381)  11,414   (135,723)  9,664 Gain on sale of assets (9,421)  (600)  (9,421)  (600)Other expenses, net 10,238   6,364   13,499   8,029 Write-off of leasehold costs —   —   13,181   — Debt modifications and extinguishments 136   —   (1,081)  — Total selected items before tax (156,237)  (4,388)  80,642   2,259         Income tax (expense) benefit on adjustments(1) 39,639   (569)  (7,287)  (2,034)Adjusted net income (loss)$68,177   (92,697)  32,556   (198,121)        Net income (loss) per diluted share$0.31  $(0.18) $(0.07) $(0.42)        Derivatives, net (0.09)  (0.05)  0.36   (0.03)Cash settlements on commodity derivatives (0.18)  0.02   (0.24)  0.02 Gain on sale of assets (0.02)  —   (0.02)  — Other expenses, net 0.02   0.02   0.02   0.02 Write-off of leasehold costs —   —   0.02   — Debt modifications and extinguishments —   —   —   — Total selected items before tax (0.27)  (0.01)  0.14   0.01         Income tax (expense) benefit on adjustments(1) 0.07   —   (0.01)  (0.01)Adjusted net income (loss) per diluted share$0.11  $(0.19) $0.06  $(0.42)        Weighted average number of diluted shares 604,713   478,068   550,060   476,881 

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(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 Six Months Ended June 30, June 30,  2026   2025   2026   2025 Reconciliation of free cash flow:       Net cash provided by operating activities$175,010  $127,168  $281,566  $126,280 Net cash used for oil and gas assets (76,430)  (82,521)  (163,477)  (172,766)Payments on finance lease (9,689)  —   (14,951)  — Free cash flow 88,891   44,647   103,138   (46,486)



Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
 Three Months Ended Six Months Ended  June 30, June 30,   2026   2025  2026   2025 Net Volume Sold        Oil (MMBbl) 4.571   5.363  8.985   9.023 Gas (Bcf) 12.272   7.120  25.021   11.292 NGL (MMBbl) 0.389   0.113  0.492   0.204 Total (MMBoe) 7.005   6.663  13.647   11.109 Total (MBoepd) 76.982   73.216  75.399   61.376          Revenue        Oil sales$496,291  $354,518 $793,302  $624,923 Gas sales 83,601   36,049  155,705   53,678 NGL sales 27,361   2,068  28,974   4,169 Total oil and gas revenue 607,253   392,635  977,981   682,770 Cash settlements on commodity derivatives (105,381)  11,414  (135,723)  9,664 Realized revenue$501,872  $404,049 $842,258  $692,434                   Oil and Gas Production Costs$179,429 (1)$243,118(1)$310,024 (1)$410,426(1)         Sales per Bbl/Mcf/Boe        Average oil sales price per Bbl$108.57  $66.10 $88.29  $69.26 Average gas sales price per Mcf 6.81   5.06  6.22   4.75 Average NGL sales price per Bbl 70.34   18.30  58.89   20.44 Average total sales price per Boe 86.68   58.93  71.66   61.46 Cash settlements on commodity derivatives per Boe (15.04)  1.71  (9.95)  0.87 Realized revenue per Boe 71.64   60.64  61.72   62.33          Oil and gas production costs per Boe$25.61  $36.49 $22.72  $36.94 Oil and gas production costs per Boe ex. M/S(1)$20.91  $28.22 $17.62  $26.88 

_____________

(1)   Includes $65.8 million and $69.1 million for the three months ended June 30, 2026 and 2025, respectively, and $121.2 million and $127.2 million for the six months ended June 30, 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 June 30, 2026 and 2025 were 1.573 MMBoe and 0.5 MMBoe, respectively, and for the six months ended June 30, 2026 and 2025 were 2.930 MMBoe and 0.6 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 0.5 million barrels of oil equivalent (mmboe) as of June 30, 2026.


Kosmos Energy Ltd.
Hedging Summary
As of June 30, 2026(1)
(Unaudited)
      Weighted Average Price per Bbl             Index MBbl Floor(2) Sold Put Ceiling2026:          Three-way collars FY26 Dated Brent 1,000 60.00 50.00 75.51Swaps FY26 Dated Brent 1,500 70.62 — —Swaps FY26 WTI 750 64.83 — —2027:          Three-way collars 1H27 Dated Brent 2,000 70.00 55.00 85.00Three-way collars FY27 Dated Brent 2,000 60.00 47.50 75.00Two-way collars FY27 Dated Brent 2,000 67.50 — 90.00Three-way collars FY27 WTI 1,000 70.00 55.00 90.00

_____________

(1)   Please see the Company’s filed 10-Q for additional disclosure on hedging material. Includes hedging position as of June 30, 2026 and hedges put in place through filing date.
(2)   “Floor” represents floor price for collars and strike price for purchased puts.

Note: Excludes 0.5 MMBbls of Dated Brent sold calls with a strike price of $100.00 per Bbl and 1.0 MMBbls of Dated Brent sold puts with a strike price of $55.00 per Bbl in 2026. Excludes 0.8 MMBbls of WTI sold puts with a strike price of $50.00 per Bbl in 2026.



2026 Guidance (Adjusted for Equatorial Guinea sale)
 3Q 2026 FY 2026   Production(1,2,3)68,000 - 72,000 boe per day69,000 - 74,000 boe per day   Opex$18.00 - $20.00 per boe$19.00 - $21.00 per boe   DD&A$15.50 - $17.50 per boe$16.00 - $18.00 per boe   G&A(~65% cash)$15-$20 million~$75 million   Exploration Expense(4)~$5 million~$20 million   Net Interest Expense$55 - $60 million$220 - $240 million   Tax$7.00 - $10.00 per boe$7.00 - $9.00 per boe   Capital Expenditure$75 - $100 million~$350 million

_____________

Note: Ghana / Equatorial Guinea / Mauritania & Senegal revenue calculated by number of cargos. Guidance excludes Equatorial Guinea from June 17, 2026 following the sale of the assets.

(1)   3Q 2026 net cargo forecast – Ghana: 2.75 cargos. FY 2026 Ghana: 12-13 cargos. Average cargo sizes 950,000 barrels of oil.
(2)   3Q 2026 gross cargo forecast - Mauritania & Senegal: 8 cargos. FY 2026: 32-36 cargos. Average cargo size ~170,000 m3 with Kosmos NRI of ~24%. Kosmos expects 0.4 net condensate cargos in 3Q26
(3)   Gulf of America Production: 3Q 2026 forecast 13,000 - 15,000 boe per day. FY 2026: 14,000-16,000 boe per day. Oil/Gas/NGL split for 2026: ~83%/~10%/~7%.
(4)   Excludes leasehold impairments and dry hole costs.

Source: Kosmos Energy Ltd.

Investor Relations
Jamie Buckland
+44 (0) 203 954 2831
[email protected]

Media Relations
Thomas Golembeski
+1-214-445-9674
[email protected] 


Risks

  • Commodity price volatility affecting realized oil and gas prices despite some hedging arrangements, possibly impacting future earnings and cash flows.
  • Operational risks including drilling and production issues, as seen with the Winterfell-5 well abandonment, which could delay or reduce production.
  • Geopolitical and regulatory risks in key operating regions (Ghana, Mauritania, Senegal, Gulf of America, and Equatorial Guinea) that could affect operations and contractual terms.

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