Kosmos Energy (KOS) Q2 2025 earnings summary

Executive summary

• GTA FLNG Gimi achieved Commercial Operations Date in June 2025, marking a key milestone with 3.5–6 LNG cargoes lifted and ending NOC CapEx funding obligations.

• Q2 2025 net production reached ~63,500 boepd, with sales of ~73,200 boepd and revenues of $393 million; net loss was $88 million ($0.18 per diluted share).

• Production is nearing record highs, driven by GTA ramp-up, new wells at Jubilee and Winterfell, and cost reduction initiatives.

• Ghana production averaged 29,100 boepd net in Q2 2025, impacted by FPSO shutdowns and well underperformance; new producer well online in July.

• Gulf of America and Equatorial Guinea production averaged 19,600 boepd and 7,700–8,000 boepd net, respectively, with Winterfell-4 completion ongoing and pump replacements planned.

Financial highlights

• Q2 2025 revenues were $392.6–$393 million, down from $450.9–$451 million in Q2 2024, mainly due to lower realized prices.

• Net loss of $87.7–$88 million in Q2 2025 compared to net income of $59.8–$60 million in Q2 2024.

• CapEx for Q2 2025 was $86 million; full-year 2025 guidance reduced to ~$350 million, down >50% from FY24.

• Operating cash flow for H1 2025 was $126.3–$127 million, down from $496.2 million in the prior year.

• Opex per boe was $28.2 (excluding GTA); G&A expense reduced to $19 million from $26 million quarter-over-quarter.

Outlook and guidance

• Full-year 2025 production guidance revised to 65,000–70,000 boepd, reflecting slower GTA ramp-up and lower Jubilee output.

• FY25 opex expected at $22–$24/boe (excluding GTA); GTA opex expected at $225–$245 million net.

• CapEx envelope of ~$350 million is expected to be sustainable into 2026, supporting growth with additional wells at Jubilee and Winterfell.

• Targeting $25 million in overhead reduction by year-end 2025.

• Hedges in place for 5 million barrels in 2025 ($62–$77/bbl) and 7 million barrels in 2026 ($66–$75/bbl), aiming for 50% of 2026 production hedged by year-end.