Kosmos Energy has announced its financial and operating results for the third quarter of 2025. For the quarter, the Company generated a net loss of $124 million, or $0.26 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net loss(1) of $72 million, or $0.15 per diluted share for the third quarter of 2025.
THIRD QUARTER 2025 HIGHLIGHTS
- Net Production(2): ~65,500 barrels of oil equivalent per day (boepd), up 3% versus second quarter 2025, with sales of ~59,900 boepd
- Revenues: $311 million, or $56.39 per boe (excluding the impact of derivative cash settlements)
- Production expense: $148 million ($19.51 per boe excluding $59.4 million of production expenses associated with the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project), down 39% versus second quarter 2025
- Capital expenditures: $67 million
- Entered into a senior secured term loan with Shell for up to $250 million; funding of the first tranche of $150 million was completed post quarter-end with proceeds used to partially redeem the 2026 unsecured notes
- Completed the semi-annual re-determination of the reserve-based lending (“RBL”) facility, maintaining a borrowing base in excess of the RBL’s $1.35 billion facility size
- During the third quarter, 6.8 gross LNG cargos were lifted from the GTA project offshore Mauritania and Senegal
- First producer well of the 2025/26 Jubilee drilling campaign brought online with ~10,000 bopd average contribution
Commenting on the Company’s third quarter 2025 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: 'We set out this year with three clear priorities: Increase production, reduce costs and enhance the resilience of the balance sheet. During the period, we have continued to make good progress against each of these priorities.
On production, GTA is fully operational, with ~7 gross LNG cargos lifted during the quarter, and further upside to be tested in the fourth quarter. With the second Jubilee producer well now being drilled and due online around year end, and the drilling program continuing into 2026, we expect company production to continue to rise through next year.
On costs, we now expect capital expenditure to be below $350 million in 2025, more than 60% lower year-on-year. Operating costs across every business were lower quarter over quarter and we continue to work to further reduce operating costs across the portfolio, particularly on GTA into 2026. In addition, we remain on track to deliver the targeted $25 million of overhead reduction by year-end.
On the balance sheet, we raised additional liquidity with the Shell term loan, which is being used to repay our 2026 maturities. We also completed the semi-annual re-determination of our RBL facility and have added more hedges for 2026.
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 and reduce leverage.'
FINANCIAL UPDATE
Kosmos entered into a senior secured term loan facility (the “Term Facility”) with Shell Trading (US) Company (“Shell”) for up to $250 million, using $150 million to partially redeem the outstanding 2026 unsecured notes in early October. The remaining $100 million of outstanding 2026 notes is planned to be repaid in advance of the maturity date from the undrawn portion of the Term Facility in the first quarter of 2026. The Company also continues to evaluate raising additional secured debt capital to proactively manage upcoming maturities.
During the third quarter, Kosmos completed the semi-annual re-determination of its RBL facility with a borrowing base in excess of the $1.35 billion facility size. In addition, the Company completed the liquidity test covering the 2027 unsecured notes, which was carried out alongside the RBL re-determination.
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 now has 2.5 million barrels of remaining 2025 oil production hedged with an average floor of approximately $62/barrel. Kosmos took advantage of periods of higher oil prices during the third quarter to add more hedges for the 2026 hedging program. Kosmos now has 8.5 million barrels of oil hedged for 2026 with an average floor of $66/barrel, weighted towards the first half of the year and is targeting around 50% of 2026 oil production to be hedged by year-end.
Net capital expenditure for the third quarter of 2025 was $67 million, below guidance due to lower spend in Ghana and the Gulf of America. We now expect full year capital expenditures to be lower than $350 million. The Company remains on track to deliver the targeted $25 million overhead reduction by year-end.
The Company generated net cash used in operating activities of approximately $(28) million and free cash flow(1) of approximately $(99) million during the quarter. Excluding the working capital draw communicated with the second quarter results in August, which largely related to final accrued capital expenditure on Phase 1 of the GTA project, free cash flow was broadly neutral for the third quarter.
Kosmos exited the third quarter of 2025 with approximately $2.9 billion of net debt(1) and liquidity of approximately $540 million(3).
OPERATIONAL UPDATE
Production
Total net production(2) in the third quarter of 2025 averaged approximately 65,500 boepd with the quarter-on-quarter increase largely driven by the ramp up at GTA and increased production at Jubilee.
The Company exited the quarter in a net underlift position of approximately 0.6 mmboe.
Mauritania and Senegal
GTA Phase 1 production continued to ramp up during the quarter averaging approximately 11,400 boepd net. During the quarter, 6.8 gross LNG cargos were lifted, in line with guidance. Post quarter-end, an additional 2.7 gross LNG cargos were lifted (bringing the total through October to 13.5), along with the first gross condensate cargo.
Lowering operating costs for GTA Phase 1 remains a priority for the partnership. Net operating costs on the project decreased approximately $10 million quarter-on-quarter, with additional actions to further reduce costs ongoing, including the FPSO lease re-financing which is targeted for completion by year-end, and the implementation of a lower-cost operating model.
During the third quarter, planned startup maintenance was carried out on three of the four FLNG trains. All three trains are back online and the fourth train is scheduled to undergo one week of similar maintenance in the fourth quarter.
With Phase 1 targeting nameplate production at the end of the fourth quarter, the partnership is now focusing on future expansion through Phase 1+, a low-cost brownfield expansion. This is expected to approximately double gas throughput by 2029, leveraging the existing infrastructure in place.
Ghana
Production in Ghana averaged approximately 31,300 boepd net in the third quarter of 2025. Kosmos lifted 2 cargos from Ghana during the quarter, as expected.
At Jubilee (38.6% working interest), oil production in the third quarter averaged approximately 62,500 bopd gross.
The first producer well of the 2025/26 Jubilee drilling campaign came online in July and initial production levels have been encouraging, averaging ~10,000 boepd through the first three months. Following a period of scheduled maintenance, the Noble Venturer rig arrived back in field in mid-October and has spud the second planned producer well, which is expected online around year end. Within the original 2026 drilling campaign budget, the joint venture partners have approved the activity set, which now includes the 4 planned producers and an additional water injector.
In the third quarter of 2025, Ghana gas production net to Kosmos was approximately 5,200 boepd, lower than planned as a result of extended scheduled maintenance on the onshore gas processing plant.
At TEN (20.4% working interest), oil production averaged approximately 16,100 bopd gross for the third quarter. The TEN partnership is finalizing a sale and purchase agreement to acquire the TEN FPSO at the end of its current lease, planned to be signed by year-end. We expect this to significantly reduce TEN operating costs and positively impact our leverage in 2025 and beyond.
Post the signing of the Memorandum of Understanding (MoU) with the Government of Ghana last quarter, all documentation for the extension of the production licenses to 2040 have been prepared for submission to the government for final approval. Once approved, Kosmos expects to recognize a material uplift in its 2P reserve base.
Gulf of America
Production in the Gulf of America averaged approximately 16,600 boepd net (~84% oil) during the third quarter, in line with guidance helped by strong performance from Odd Job and Kodiak and no storm downtime, offset by some unplanned facility downtime and the Winterfell-4 well. The Winterfell-4 well was abandoned in September by the operator due to challenges encountered during completion operations arising from the collapse of the production casing. As a result, all associated drilling and completion costs of approximately $51.1 million related to Winterfell-4 have been written off in the third quarter of 2025. The partnership is reviewing alternative options to access the reserves targeted by Winterfell-4. In 2026, our focus will be on restoring production from the Winterfell-3 fault block.
On Tiberius, Kosmos (operator, 50% working interest) continues to progress the development plan with our partner Oxy (50% working interest). A production handling agreement for the Oxy-operated Lucius platform was executed in the third quarter. Final investment decision and a farm down to reduce Kosmos’ working interest is expected in 2026.
On Gettysburg, a discovered resource opportunity acquired in a previous lease sale, Kosmos (25% working interest) has partnered with Shell (operator, 75% working interest), to plan and progress a low-cost, single well tie-back development to Shell’s operated-Appomattox facility.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 17,700 bopd gross and 6,200 bopd net in the third quarter. Kosmos lifted 0.7 cargos from Equatorial Guinea during the quarter in line with guidance. As previously communicated, third quarter production was impacted by subsea pump mechanical failures at Ceiba. The first pump was repaired ahead of schedule early in the fourth quarter, and the second pump is now also expected online in the fourth quarter followed by the third pump in first quarter of 2026.
(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 September 30, 2025, we had liquidity of approximately $540 million consisting of approximately $64 million in cash and cash equivalents, undrawn availability under the Facility of $225 million and undrawn availability under the Term Facility of $250 million. Under the terms of the Credit Agreement, borrowings on the Term Facility are required to be utilized to pay down the 7.125% Senior Notes due 2026 unless otherwise previously repaid.
Source: Kosmos Energy
