Key Highlights

  • KOS reported a third-quarter 2026 net loss of $43.0 million, or $0.07 per share, versus a loss of $124.3 million, or $0.26 per share.
  • Oil and gas Revenue rose $99.1 million to $410.1 million, with the average realized price at $71.39 per Barrel of Oil Equivalent versus $56.39.
  • A Derivatives loss of $133.9 million compared with a $3.6 million gain a year earlier.
  • Production costs fell to $17.72 per barrel of oil equivalent from $26.78, and total production costs dropped to $101.8 million from $147.7 million.
  • Net Debt stood at $2.47 billion at Sep 30, 2026, down from $2.98 billion at year-end 2025.

Hedging Charge of $133.9 Million Keeps a Higher-Revenue Quarter in the Red

Kosmos Energy (NYSE:KOS) reported results for the third quarter ended Sep 30, 2026, and discussed them on a call on Nov 3, 2026. The net loss was $43.0 million, or $0.07 per share, a sharp improvement from $124.3 million, or $0.26 per share, a year earlier. Oil and gas revenue climbed 31.9% (calculated) to $410.1 million.

Kosmos is a deepwater exploration and production company with output offshore Ghana, Mauritania, Senegal and the Gulf of America. Sales volumes were 62,437 barrels of oil equivalent per day, versus 59,942, despite the June 2026 sale of its Equatorial Guinea assets.

The filing attributes the $133.9 million derivatives loss to changes in the forward oil price curve. A year earlier the line was a $3.6 million gain.

Production Costs Per Barrel Drop to $17.72 as Jubilee and Greater Tortue Ahmeyim Output Grows

Total oil and gas production costs declined by $45.9 million to $101.8 million, and exploration expense dropped to $4.2 million from $54.9 million, which had included $51.1 million for a well plugged and abandoned a year earlier. Depletion, Depreciation and amortization eased to $112.2 million from $141.5 million.

Gross output at Ghana's Jubilee field averaged 84,500 barrels of oil per day, up about 17% from the prior quarter after new wells came online. At the Greater Tortue Ahmeyim LNG project, 8.5 gross cargoes were lifted, and management expects the upper end of its 32 to 36 cargo guidance.

Oil sales averaged $88.57 per barrel, up from $67.30.

Nine-Month Operating Cash Flow Jumps to $445.6 Million as Net Debt Falls $509 Million

Operating cash flow for the nine months was $445.6 million, versus $98.7 million a year earlier. Management said EBITDAX nearly doubled to almost $800 million and expects about $300 million of free cash flow in 2026.

Net debt fell to $2.47 billion from $2.98 billion at Dec 31, 2025, a 17.1% drop (calculated), as the company repaid $50 million of 2027 bonds, $15 million of a term Loan and $25 million of its reserve-based lending Facility in the quarter. Management is on track for a 20% net debt reduction this year.

In October 2026 the company extended that facility's Maturity to April 2033 from December 2029 and cut its size to $1.2 billion. Available borrowings plus cash were $566.8 million at quarter-end.

Lower Fourth-Quarter Output, 2027 Drilling and a $2 Billion Net Debt Target Come Next

Management expects lower fourth-quarter net production on Gulf of America maintenance, a well workover, storm downtime and Jubilee decline, plus about $20 million of financing costs tied to the facility extension. A Ghana campaign of up to ten wells is planned from mid-2027, and the Trailblazer exploration well is slated for the first half of 2027. The company targets year-end 2027 net debt of about $2 billion at strip prices.