Kosmos Energy (KOS) Q3 2025 earnings summary

Executive summary

• Net production averaged ~65,500 boepd in Q3 2025, up 3% sequentially, with record highs driven by Jubilee and GTA ramp-up; further growth expected through 2026.

• Q3 2025 saw a net loss of $124.3 million, compared to net income of $45.0 million in Q3 2024, with significant exploration expense from Winterfell-4 abandonment.

• Costs declined significantly, with operating costs down ~39% quarter-over-quarter and overhead reductions on track.

• Balance sheet resilience improved by refinancing debt, extending maturities, and increasing hedging, including a $250 million Shell term loan and $150 million note redemption.

• GTA project fully operational, with 6.8 gross LNG cargos lifted in Q3 and first condensate cargo providing a new revenue stream.

Financial highlights

• Q3 2025 revenues were $311 million, or $56.39 per boe, with realized prices down from prior year; production expense was $148 million ($19.51/boe ex-GTA), down 39% from Q2.

• CapEx for Q3 was $67 million, with full-year CapEx expected below $350 million, over 60% lower year-over-year.

• Net cash provided by operating activities for the nine months ended September 30, 2025 was $98.7 million, down from $502.5 million in the prior year period.

• Net debt as of September 30, 2025 was $2.95 billion, with ~$540 million liquidity and undrawn facility availability of $225 million.

• EBITDAX for Q3 was $153.6 million.

Outlook and guidance

• FY 2025 production guidance is ~65,000 boepd, with Q4 2025 expected at 66,000–72,000 boepd; further increases expected in 2026.

• FY 2025 CapEx expected below $350 million, with real savings from drilling efficiencies and lower contract rates.

• Opex guidance (ex-GTA) is ~$22/boe for FY 2025, with unit costs at GTA expected to fall by over 50% in 2026.

• Targeting 2.7 mtpa FLNG nameplate at GTA by year-end, with potential to nearly double LNG cargoes in 2026.

• Management expects to remain in compliance with amended debt covenants but notes risk if mitigation plans are not successful.