Kosmos Energy has announced 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.
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.
Source: Kosmos Energy
