third quarter 2026
Filed Nov 2, 2026Kosmos reported third-quarter 2026 net production of approximately 69,200 boepd, revenues of $410 million, net loss of $43 million and free cash flow of approximately $90 million while reaffirming approximately $350 million of full-year capital expenditure guidance.
Production was in line with guidance, revenue and operating cash flow increased versus the prior-year quarter, production costs declined materially, and the Company delivered a third consecutive quarter of positive free cash flow while reducing net debt. GAAP results remained a net loss, affected by $133.876 million of derivatives expense.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Oil and gas revenue, three months ended September 30, 2026GAAP | $410.1M | – | – |
| Total revenues and other income, three months ended September 30, 2026GAAP | 409,880 | – | – |
| Oil and gas production, three months ended September 30, 2026GAAP | 101,756 | – | – |
| Exploration expenses, three months ended September 30, 2026GAAP | 4,239 | – | – |
| General and administrative, three months ended September 30, 2026GAAP | 18,682 | – | – |
| Depletion, depreciation and amortization, three months ended September 30, 2026GAAP | 112,228 | – | – |
| Interest and other financing costs, net, three months ended September 30, 2026GAAP | 53,746 | – | – |
| Derivatives, net, three months ended September 30, 2026GAAP | 133,876 | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | 15,683 | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$43.01M | – | – |
| Net loss per diluted share, three months ended September 30, 2026GAAP | $ (0.07) | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $34.99M | – | – |
| Adjusted net income per diluted share, three months ended September 30, 2026non-GAAP | $ 0.06 | – | – |
| EBITDAX, three months ended September 30, 2026non-GAAP | $254.3M | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | 163,984 | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | 90,140 | – | – |
| Net production, third quarter 2026other | ~69,200 barrels of oil equivalent per day (boepd) | – | up ~6% versus third quarter 2025 (~17% excluding Equatorial Guinea) |
| Sales, third quarter 2026other | approximately 62,400 boepd | – | – |
| Total net volume sold, three months ended September 30, 2026other | 5.744 | – | – |
| Average total sales price per Boe, three months ended September 30, 2026other | 71.39 | – | – |
| Realized revenue, three months ended September 30, 2026other | $370.3M | – | – |
| Realized revenue per Boe, three months ended September 30, 2026other | 64.46 | – | – |
| Oil and gas production costs per Boe, three months ended September 30, 2026other | $ 17.72 | – | – |
| Oil and gas production costs per Boe ex. M/S, three months ended September 30, 2026other | $ 10.08 | – | – |
| Capital expenditures, third quarter 2026other | $85M | – | – |
| Net debt as of September 30, 2026non-GAAP | $2.47B | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $103.7M | – | – |
| Total long-term debt as of September 30, 2026other | $2.63B | – | – |
| Total assets as of September 30, 2026GAAP | $4.26B | – | – |
| Total stockholders’ equity as of September 30, 2026GAAP | 669,182 | – | – |
| Oil and gas revenue, nine months ended September 30, 2026GAAP | $1.39B | – | – |
| Net loss, nine months ended September 30, 2026GAAP | −$83.81M | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $67.55M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | 445,550 | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | 193,278 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| GhanaProduction in Ghana averaged approximately 40,500 boepd net, including gas production of approximately 6,800 boepd. The Jubilee drilling campaign delivered seven successful infill wells, and Jubilee oil production averaged approximately 84,500 bopd gross. | null | – | – |
| Mauritania and SenegalGTA production averaged approximately 14,600 boepd net, or approximately 2.44 mtpa of LNG equivalent gross. The partnership lifted 8.5 gross LNG cargos during the quarter. | null | – | – |
| Gulf of AmericaProduction averaged approximately 14,100 boepd net (~83% oil), with strong operated-asset performance partly offset by host facility downtime. | null | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter 2026 and Full Year 2026 outlook
- Operating expensesOpex $18.00 - $20.00 per boe; DD&A $17.50 - $19.50 per boe; G&A(~61% cash) $10-$15 million; Exploration Expense(4) ~$5 million; Net Interest Expense $50 - $55 million; Tax $11.00 - $15.00 per boe
- Note4Q 2026 Production(1,2,3): 60,000 - 64,000 boe per day
- NoteCapital Expenditure: $50 - $75 million
- NoteFull year 2026 capital expenditure guidance: approximately $350 million
- NoteFull year gross LNG cargo liftings are expected to be at the upper end of the 32-36 guidance range.
- NoteYear-end net debt expected to be below $2.4 billion.
- NoteLeverage expected to fall towards 2.0x.
- Note4Q 2026 net cargo forecast, Ghana: 3 cargos.
- Note4Q 2026 gross LNG cargo forecast, Mauritania & Senegal: 8-9 cargos.
- NoteGulf of America Production: 4Q 2026 forecast 10,000 - 11,500 boe per day.
Capital returns
- Payments on long-term debt were (65,110) for the three months ended September 30, 2026.
- Repurchase and redemption of senior notes were (50,000) for the three months ended September 30, 2026.
- Payments on long-term debt were (569,848) for the nine months ended September 30, 2026.
- Repurchase and redemption of senior notes were (397,184) for the nine months ended September 30, 2026.
What drove it
- Net production was in line with guidance and up ~6% versus third quarter 2025 (~17% excluding Equatorial Guinea).
- Oil and gas production expense was $102 million, with an absolute production expense reduction of ~31% compared to third quarter 2025.
- Jubilee oil production averaged approximately 84,500 bopd gross, approximately 17% higher than the second quarter.
- GTA delivered cargos slightly ahead of guidance and lifted 8.5 gross LNG cargos.
- The Company completed the Tiberius farm-down, receiving upfront cash consideration, carry for future capital expenditure and future milestone payments.
- The Company reported three consecutive quarters of positive free cash flow, with year-to-date free cash flow of $193 million.
Concerns
- The Company reported a GAAP net loss of $ (43,010) and $ (0.07) per diluted share for the quarter.
- Derivatives, net, were 133,876 for the three months ended September 30, 2026, compared with (3,646) in the prior-year quarter.
- Fourth-quarter Gulf of America production is expected to be affected by planned Delta House platform maintenance, a Kodiak-1 workover and Hurricane Isaias downtime.
- Kosmos was underlifted by approximately 1.1 million barrels of oil equivalent as of September 30, 2026.
- Current maturities of long-term debt were 95,303 as of September 30, 2026.
What to watch
- Fourth-quarter production guidance of 60,000 - 64,000 boe per day and Gulf of America production guidance of 10,000 - 11,500 boe per day.
- Delivery of full-year capital expenditure guidance of approximately $350 million.
- Full-year GTA gross LNG cargo liftings expected at the upper end of the 32-36 guidance range.
- Progress toward year-end net debt below $2.4 billion and leverage towards 2.0x.
- The TEN FPSO ownership and operational transition scheduled for the first quarter of 2027.
- The 2027/28 Jubilee drilling program of up to 10 wells expected to start in mid-2027.
- Trailblazer drilling expected to commence in the first half of 2027.
Balance sheet and cash flow
- Net cash provided by operating activities was 163,984 for the three months ended September 30, 2026, compared with (27,568) for the three months ended September 30, 2025.
- Free cash flow was 90,140 for the three months ended September 30, 2026, compared with (98,935) for the three months ended September 30, 2025.
- Cash and cash equivalents were $ 103,749 as of September 30, 2026.
- Total restricted cash was 54,448 as of September 30, 2026.
- Net debt was $ 2,473,369 as of September 30, 2026 and excludes $63.9 million TEN FPSO finance lease liability.
- Kosmos exited the third quarter with approximately $570 million of liquidity.
- The RBL facility size and total commitments are $1.2 billion, with final maturity extended to April 2033. $750 million was currently drawn on the facility.
Analysis
Kosmos reported a materially improved operating and cash-flow quarter. Oil and gas revenue was $ 410,059, compared with $ 310,959 in the prior-year quarter, while net production averaged approximately 69,200 boepd, up ~6% versus third quarter 2025. Total net volume sold was 5.744 MMBoe versus 5.515 MMBoe, and average total sales price per Boe was 71.39 versus 56.39. Production expense was 101,756 versus 147,696, and oil and gas production costs per Boe declined to $ 17.72 from $ 26.78.
GAAP profitability remained negative, with net loss of $ (43,010), or $ (0.07) per diluted share. The largest stated item affecting comparability was derivatives, net, of 133,876, compared with a prior-year gain of (3,646). On the Company's non-GAAP basis, adjusted net income was $ 34,993, or $ 0.06 per diluted share, compared with adjusted net loss of (72,276), or $ (0.15) per diluted share, a year earlier. EBITDAX was $ 254,338 compared with $ 153,625.
Cash generation and debt reduction were central to the release. Net cash provided by operating activities was 163,984 and free cash flow was 90,140, versus (27,568) and (98,935), respectively, in the prior-year quarter. Year-to-date free cash flow was 193,278. Net debt was $ 2,473,369 as of September 30, 2026, compared with $ 2,982,530 at December 31, 2025. The Company also completed the $1.2 billion RBL amendment and extension, moving its final maturity to April 2033.
Operationally, Ghana benefited from the completed seven-well Jubilee drilling campaign, with Jubilee gross oil production approximately 17% higher than the second quarter. GTA maintained stable operations and delivered 8.5 gross LNG cargos, slightly above guidance. Gulf of America output was in line with guidance but fourth-quarter production is expected to face maintenance, workover and hurricane-related downtime. Kosmos maintained full-year 2026 capital expenditure guidance of approximately $350 million and guided fourth-quarter production to 60,000 - 64,000 boe per day.
The reported outlook emphasizes continued deleveraging, with year-end net debt expected to be below $2.4 billion and leverage expected to fall towards 2.0x. The key near-term execution points are fourth-quarter production delivery, the upper end of the 32-36 full-year GTA LNG cargo range, capital spending discipline and the planned TEN FPSO transition in the first quarter of 2027. Future development activity includes the 2027/28 Jubilee program and Trailblazer drilling expected in the first half of 2027.
Management, verbatim
Kosmos continued to make meaningful progress during the third quarter against the four objectives we established at the beginning of the year: increase production, lower costs, reduce debt and advance our quality growth opportunities.
Andrew G. Inglis, Chairman and Chief Executive Officer
With the RBL re-financing complete, we have further increased our financial resilience and will now look to address our 2028 bond maturities.
Andrew G. Inglis, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Segment revenue by Ghana, Mauritania and Senegal, and Gulf of America was not reported.
- A prior-quarter comparison was not reported for most financial metrics.
- A prior earnings release outlook was not provided, so comparison against prior guidance is unavailable.
- Dividend and common-share repurchase activity were not reported.
- GAAP operating income was not reported as a separate line item.
- A revenue guidance figure was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.