Kosmos Energy (KOS) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly net production of ~75,000 boepd in Q1 2026, up 25% year-over-year, driven by GTA ramp-up and new Jubilee wells.

• Revenues reached $371 million, or $55.81/boe, despite lower realized prices due to a higher gas mix.

• Net loss widened to $225.6M, mainly due to a $252M derivatives loss and higher exploration expenses.

• Operating costs fell 22% year-over-year to $131 million ($19.66/boe), with further reductions targeted.

• Net debt reduced by ~7% versus year-end 2025; full-year debt reduction target raised to 20%.

Financial highlights

• Q1 2026 production reached ~75,000 boepd, a record, with realized price at $55.81/boe, down from $65.27/boe in Q1 2025.

• Operating costs per boe dropped to $19.66, nearly halved year-over-year.

• Net cash from operating activities was $107 million; liquidity at quarter-end was ~$500 million.

• Derivatives loss of $252M impacted the tax line, but cash impact was limited to $30 million.

• Net debt at March 31, 2026 was $2.8 billion, with $130M cash and $350M undrawn facility availability.

Outlook and guidance

• FY 2026 production guidance: 70,000–78,000 boepd; Q2 expected slightly lower due to GTA seasonality.

• FY 2026 capex guidance unchanged at $350 million, focused on infill drilling and development.

• Opex guidance: $15.50–$22.00/boe; DD&A: $15.50–$20.00/boe.

• Full-year production growth target close to 15% after EG asset sale; guidance to be revised post-sale.

• No scheduled maintenance shutdowns for Jubilee in 2026; guidance confidence reinforced.