Kosmos Energy has announced 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.
Source: Kosmos Energy
