Kosmos Energy (KOS) Q4 2025 earnings summary

Executive summary

• 2025 was a transitional year, establishing a platform for a sustainable, lower-cost business with consistent production growth, enhanced financial resilience, and safe operations, including zero lost-time injuries.

• Achieved strong operational and financial momentum in Q4 and early 2026, with significant production increases, cost reductions, and groundwork laid for further improvements.

Financial highlights

• Q4 2025 net production rose to ~68,000 boe/day, up 4% sequentially, driven by GTA ramp-up; realized prices fell to ~$51.4/boe due to lower commodity prices.

• Q4 2025 revenue was $295 million; production expense was $151 million ($22.24/boe, excluding GTA LNG costs).

• 2025 CapEx was $290–$292 million, a 70% year-over-year reduction and 25% below initial guidance.

• FY26 CapEx targeted at $350 million, with 70% allocated to Ghana and $40 million for TEN FPSO.

• Overhead reduction target of $25 million exceeded in YE25, with further savings expected in 2026.

Outlook and guidance

• 2026 targets: 15% production growth, 20% reduction in total operating costs, and at least 10% net debt reduction.

• FY26 production guidance: 70,000–78,000 boe/day; opex expected at $18–$22/boe, with targeted >$100 million reduction year-over-year and up to ~$250 million post-EG sale.

• Jubilee production forecasted at 70,000–80,000 barrels/day gross, with current performance at the upper end.

• GTA targeting 32–36 LNG cargos and 3 condensate cargos in 2026, with opex/mmbtu reduction of >50% expected.