Key Highlights

  • Net loss was USD 43 million, or USD 0.07 per share, against adjusted Net Income of USD 35 million.
  • Net production averaged about 69,200 barrels of oil equivalent per day, up roughly 6% from the third quarter of 2025.
  • Production expense fell about 31% to USD 102 million, or USD 17.72 per barrel of oil equivalent.
  • Operating cash flow was roughly USD 164 million and free cash flow USD 90 million, a third consecutive positive quarter.

A Loss on a Reported Basis

Kosmos Energy Ltd. (NYSE:KOS) reported a third-quarter 2026 net loss of USD 43 million, or USD 0.07 per diluted share. After adjusting for items affecting comparability, adjusted net income was USD 35 million, or USD 0.06 per diluted share. Revenues were USD 410 million, or USD 71.39 per barrel of oil equivalent, excluding derivative cash settlements. Revenue per Barrel of Oil Equivalent does not include the impact of those settlements.

Net production of about 69,200 barrels of oil equivalent per day rose roughly 6% from a year earlier and about 17% excluding Equatorial Guinea. Sales averaged about 62,400 barrels per day, leaving the company in a net underlift position of about 1.1 million barrels of oil equivalent.

Costs Fall and Debt Comes Down

Production expense dropped about 31% in absolute terms to USD 102 million, or USD 17.72 per barrel of oil equivalent. Capital expenditures were USD 85 million, in line with guidance. Year-to-date free cash flow reached USD 193 million.

Net debt stood at about USD 2.47 billion at quarter end, with Liquidity near USD 570 million. Net debt has been cut by more than USD 500 million this year, and management reaffirmed a roughly 20% reduction target, with year-end net debt below USD 2.4 billion. In October the company completed a USD 1.2 billion reserve-based lending Facility amendment that extends final Maturity to April 2033, with no planned amortization until 2031.

Asset Operations and 2027 Positioning

In Ghana, net production averaged about 40,500 barrels of oil equivalent per day, and the 2025/26 Jubilee campaign delivered seven wells. A rig has been secured for a 2027/28 program of up to 10 wells starting in mid-2027. At TEN, the FPSO ownership transition to the Partnership is scheduled for the first quarter of 2027.

At Greater Tortue Ahmeyim, net production was about 14,600 barrels of oil equivalent per day and 8.5 gross LNG cargos were lifted, with full-year cargos projected at the upper end of a 32 to 36 range. Full-year Capital Expenditure guidance of about USD 350 million is unchanged, and 8 million barrels of 2027 oil are hedged with a floor near USD 68 and a ceiling near USD 84.

Factors to Watch Into 2027

Chairman and chief executive Andrew Inglis said the company enters 2027 in a much stronger position with multiple catalysts, and that it has materially improved liquidity and extended maturities during the year, with 2028 bond maturities as the next financing item. Items to follow include the TEN FPSO handover, Jubilee decline management ahead of the 2027/28 campaign and domestic gas progress in Mauritania and Senegal.