Kosmos Energy has provided a financial update following several positive developments across the company's financing activities.
Reserve-Based Lending Facility
Kosmos has successfully completed the semi-annual re-determination of its reserve-based lending ("RBL") facility with a borrowing base remaining in excess of the RBL's $1.35 billion facility size, reflecting the quality and resilience of the assets that underpin the facility.
In addition to the successful RBL redetermination, the Company confirms that it remains in full compliance with all associated liquidity and financial covenants under the RBL facility, including the liquidity test undertaken covering the Company's 2027 unsecured notes, which was carried out alongside the RBL re-determination in September. No further tests are scheduled until March 2026.
Liquidity
As previously announced, Kosmos recently entered into a senior secured term loan facility ("Term Facility") on attractive terms with Shell Trading (US) Company ("Shell") for up to $250 million. The Company has issued a notice of partial redemption, with respect to $150 million of its 2026 unsecured notes to be funded by the first tranche of the Term Facility. Redemption of the notes is expected to occur on October 6, 2025. The remaining $100 million is planned to be repaid in advance of the maturity date.
Hedging
Kosmos took advantage of a recent increase in oil prices to add more hedges for 2026. Kosmos now has 8.5 million barrels of oil hedged for 2026 with an average floor of $66 per barrel.
Neal Shah, Chief Financial Officer, commented 'In recent weeks, we have made significant progress across several financing areas, proactively securing additional liquidity and more downside protection in 2026 through our rolling hedging program at attractive prices. We were pleased to complete the fall redetermination and confirm that we continue to be in compliance with all of our RBL obligations and I would like to thank our bank group for their continued support. As we enter the fourth quarter, Kosmos will continue to prioritize the financial resilience of the company through the organic delivery of free cash flow from our high-quality assets and disciplined capital expenditure program.'
Source: Kosmos Energy
