Kosmos Energy (KOS) Q1 2025 earnings summary

Executive summary

• Focus remains on cash generation, cost control, and financial resilience amid market volatility, with a major milestone achieved as the GTA project exported its first LNG cargo in April 2025 and all FLNG trains operational.

• Production growth expected in H2 2025 from new wells in Ghana and Gulf of America, with ongoing ramp-up at GTA.

• Significant cost reductions in CapEx and overhead underway, with Q1 2025 CapEx at $86 million, down over 50% year-on-year.

• Balance sheet strengthened through refinancing, hedging, and ample liquidity, including a $1.35B RBL facility and $400M liquidity.

• Reported a Q1 2025 net loss of $111 million on $290 million revenue, reflecting lower production, prices, and higher costs.

Financial highlights

• Q1 2025 CapEx was $86 million, down from $286 million in Q1 2024, reflecting lower spend on GTA and cost discipline.

• Revenue declined to $290 million from $419 million year-over-year; average realized price per boe was $65.27.

• Net loss of $111 million in Q1 2025 compared to net income of $92 million in Q1 2024; EBITDAX was $103 million.

• Operating cash flow was negative $1 million, with free cash flow negative $91 million due to timing of liftings and maintenance.

• Production costs rose to $37.64/boe in Q1 2025, mainly due to GTA LNG costs and maintenance.

Outlook and guidance

• Full-year 2025 production guidance maintained at 70,000–80,000 boepd; Q2 production expected to be ~15% higher than Q1 due to GTA ramp-up.

• Full-year CapEx guidance remains at or below $400 million, with further reductions targeted.

• GTA cargo guidance unchanged at 20–25 cargoes for 2025.

• Approximately 40% of 2025 oil production hedged at $65–$80/bbl.

• Opex guidance for 2025 (excluding GTA) is $25–$27/boe.