Kosmos Energy Ltd.

What they do

Kosmos explores for and produces oil and natural gas from deepwater fields, primarily offshore West Africa and in the U.S. Gulf of America. Its core producing assets include the Jubilee and TEN fields offshore Ghana, the Ceiba Field and Okume Complex offshore Equatorial Guinea (divested in June 2026), and the Greater Tortue Ahmeyim (GTA) gas project offshore Mauritania and Senegal. The company also holds development and exploration prospects, including the Tiberius project in the Gulf of America.

Revenue drivers

• Ghana oil production (Jubilee and TEN) — Ghana produced approximately 93,100 Boepd gross (31,100 Boepd net) in 2025, making it the largest contributor to oil volumes and revenue.
• GTA LNG production (Mauritania and Senegal) — GTA gross production averaged 2.65 million tonnes per annum in Q2 2026, with nine gross LNG cargos lifted during the quarter, providing a growing natural gas and LNG revenue stream.
• Gulf of America oil production — Gulf of America production averaged approximately 17,600 Boepd net (~84% oil) in 2025, contributing higher-margin oil revenue.
• Equatorial Guinea production (divested June 2026) — The Ceiba Field and Okume Complex produced through June 16, 2026, when the sale closed; Q2 2026 production was reduced by approximately 1,000 boepd due to the divestment.

Recent performance

In Q2 2026, Kosmos reported net income of $185 million, or $0.31 per diluted share, on revenues of $607 million. Net production averaged 71,400 boepd, up 12% versus Q2 2025, driven by GTA ramp-up and new Jubilee wells. Production expense fell 25% year over year to $179 million, or $25.61 per boe. Operating cash flow was $175 million and free cash flow was $89 million, supporting $400 million of net debt reduction in the first half of 2026.

Strategy

Management's stated 2026 goals are to increase production from core assets, lower costs, reduce debt, and advance the growth portfolio with minimal capital. The company completed the sale of its Equatorial Guinea assets in June 2026 to concentrate capital on lower-cost, higher-return opportunities. In Ghana, it continues a Jubilee drilling campaign, with two new wells online and Jubilee gross production expected to reach 90,000 bopd. In the Gulf of America, it completed the farm-down of the Tiberius project post-quarter-end. At GTA, it plans additional development phases utilizing existing infrastructure, and it has added hedges for 2027.

Risks

• Limited proved reserves — The company states it has limited proved reserves, and its estimated reserves are based on assumptions that may prove inaccurate.
• Commodity price volatility — Revenue is highly sensitive to oil, natural gas, and LNG prices, which the company notes can be volatile due to macroeconomic and geopolitical factors.
• Operational and development risks — Drilling wells is speculative and development wells may not result in commercially productive quantities of oil and gas.
• Sovereign and partner risks — The company operates in multiple jurisdictions and depends on government approvals and partners; its interests in the Jubilee and GTA units are subject to redetermination.

Outlook

Management targets a 20% debt reduction for 2026 and has commenced the RBL re-financing process, aiming to complete by the fourth quarter. Full-year 2026 capital expenditure guidance remains $350 million. The company expects continued Jubilee production growth toward the upper end of guidance and reliable GTA LNG contributions, with 3.25 million barrels hedged for the remainder of 2026 and 7.0 million barrels for 2027.