Kosmos Energy Hits 70,000 bpd Jubilee Production, Cuts Capex to $290M
Kosmos Energy’s Jubilee production topped 70,000 barrels per day with guidance of 70,000–80,000 and a 130% replacement ratio; J74 well added 13,000 barrels with five more wells in 2026. The company cut capex to $290 million in 2025, targets $350 million next year and plans 10% net debt reduction.
1. Jubilee Production Performance
Kosmos Energy maintained Jubilee gross production guidance of 70,000–80,000 barrels per day with current output exceeding 70,000 barrels. A year-to-date 130% volume replacement ratio and J74 well contribution of 13,000 barrels per day underpin the forecast, with five additional wells slated to come online in 2026.
2. Greater Tortue LNG Operations
The floating LNG vessel reached its 2.7 million tonnes per annum nameplate capacity through December and averaged 2.9 million tonnes per annum equivalent in early 2026. The company has shipped 6.5 gross LNG cargoes year-to-date and is targeting 32–36 gross LNG cargoes plus three condensate shipments in 2026.
3. Cost and Capital Expenditure Strategy
Capital expenditure totaled $290 million in 2025, down nearly 70% year-over-year, and is projected at $350 million for 2026 with roughly 70% allocated to Ghana projects and 15% to Gulf of Mexico assets. Management aims to reduce operating costs by over $100 million and secured more than $25 million in overhead savings for full-year 2026.
4. Balance Sheet and Debt Reduction
Kosmos completed a $350 million Nordic bond, allocating $250 million to repay 2027 maturities and $100 million to its reserve-based lending facility, alongside a leverage covenant waiver raising the mid-year 2026 covenant to 4.25x. The company hedged 8.5 million barrels for 2026 and targets at least a 10% net debt reduction supported by Equatorial Guinea asset sales and free cash flow.