Kosmos Energy (KOS) Q3 2026 earnings summary

Executive summary

• 9M production rose ~14% YoY, operating costs fell ~26%, and net debt declined ~17% from year-end 2025; 2026 priorities remained production growth, cost cuts, deleveraging and advancing growth options with limited capex.

• Q3 net production averaged ~69,200 boe/day, up ~6% YoY; adjusted net income was $35M while reported net loss narrowed to $43.0M from $124.3M.

• Nine-month operating cash flow was $445.6M versus $98.7M, with net loss improving to $83.8M from $322.6M.

Financial highlights

• Q3 revenue was $409.9M versus $311.2M; realized price excluding derivative cash settlements was $71.39/boe versus $56.39/boe, while sales totaled 5,744 MBoe versus 5,515 MBoe.

• Q3 net loss was $43.0M, or $0.07/share, versus $124.3M, or $0.26/share; adjusted net income was $35M, or $0.06/share.

• Q3 derivative expense was $133.9M versus a $3.6M gain; 9M derivative expense was $334.1M versus an $18.5M gain, reflecting oil forward-curve movements.

• Q3 production expense was $102M, down 31% YoY; total production cost was $17.72/boe and DD&A was $19.54/boe, versus combined costs of $52.44/boe a year earlier.

• 9M net opex fell $146M and 37% per boe; EBITDAX rose $348M and free cash flow rose $339M YoY. Q3 EBITDAX was $254M versus $154M.

Outlook and guidance

• FY2026 free cash flow is expected at ~$300M net of hedging, with hedging expected to reduce it by ~$200M; FY2026 capex guidance is ~$350M.

• Q4 net production guidance is 60,000–64,000 boe/day; capex is $50–$75M, production expense $18–$20/boe, DD&A $17.50–$19.50/boe and net interest $50–$55M.

• Q4 forecast includes 8–9 gross GTA LNG cargos, 0.4 net condensate cargos, 3 net Ghana oil cargos and Gulf of America production of 10,000–11,500 boe/day; Jubilee targets a mid-70,000s bbl/day exit rate.

• Jubilee FY2026 gross production guidance is 70,000–80,000 bopd; YTD through Q3 was ~75,000 bopd. GTA guidance is 32–36 gross LNG cargos, with liftings expected at the upper end.

• Year-end 2026 net debt is expected below $2.4B, with leverage moving toward 2x; the YE2027 net debt target is ~$2B at strip prices, alongside selective growth investment and debt reduction.