Kosmos Energy (KOS) Q1 2025 earnings summary

Executive summary

• Focus remains on cash generation, cost control, and financial resilience amid market volatility, with production expected to rise through GTA ramp-up and new drilling at Jubilee and Gulf of America.

• Achieved first LNG cargo export from GTA project in April 2025; all FLNG trains operational and ramping up.

• Q1 2025 net loss of $111 million on $290 million revenue, with production averaging ~60,500 boepd and sales of ~49,600 boepd.

• Material cost reductions underway, with Q1 CapEx at $86 million, down over 50% year-on-year.

• Balance sheet strengthened through refinancing, hedging, and ample liquidity, with a $1.35B RBL facility and $400 million available liquidity.

Financial highlights

• Q1 2025 oil and gas revenue was $290.1 million, down from $419.1 million in Q1 2024, due to lower production and prices.

• Net loss of $111 million compared to net income of $92 million in Q1 2024; EBITDAX was $103 million, down from $302 million.

• Operating cash flow was negative $1 million; free cash flow was negative $91 million, impacted by timing of liftings and maintenance.

• Q1 CapEx was $86 million, focused on GTA, Ghana, and Gulf of America.

• Opex per barrel increased to $25.0/boe (from $16.4/boe), mainly due to shutdowns and workovers.

Outlook and guidance

• Full-year 2025 production guidance maintained at 70,000–80,000 boepd; GTA guidance at 20–25 cargos.

• CapEx for 2025 targeted at $400 million or lower, with further reductions possible.

• Opex guidance (excluding GTA) is $25–$27/boe; DD&A $20–$22/boe; G&A $20–$25 million per quarter.

• Q2 production expected to be ~15% higher than Q1 due to GTA ramp-up.

• Approximately 40% of 2025 oil production hedged with a floor of ~$65/boe and ceiling of ~$80/boe.