Kosmos Energy Posts Q4 Adjusted Loss of $78M and 4% Production Growth
Kosmos Energy posted a fourth-quarter adjusted net loss of $78 million, or $0.16 per diluted share, on $295 million of revenue. Production rose 4% to 67,900 boepd, licenses for Jubilee and TEN fields extended to 2040, and 15% growth is expected in 2026.
1. Fourth-Quarter Financial Performance
Kosmos posted a GAAP net loss of $377 million (−$0.79/share) and an adjusted net loss of $78 million (−$0.16/share) on fourth-quarter 2025 revenues of $295 million, with production expense of $151 million excluding $50.9 million of GTA project charges.
2. Operational Highlights
Net production averaged 67,900 boepd, a 4% gain from Q3, with sales of 62,900 boepd. In December GTA output hit 2.7 mtpa equivalent, rising to 2.9 mtpa year-to-date, while license extensions to 2040 for Jubilee and TEN fields lifted 1P reserves to ~250 mmboe and 2P to ~500 mmboe.
3. Balance Sheet and Capital Allocation
In January Kosmos redeemed all 2026 senior unsecured notes and raised $350 million via a Nordic secured bond to repurchase part of its 2027 debt and repay $100 million under its RBL. RBL covenant relief was secured and 8.5 million barrels are hedged in 2026 at a $66/barrel floor.
4. 2026 Outlook and Debt Strategy
The Jubilee drilling campaign has brought gross output above 70,000 bopd with five wells to come, underpinning a targeted 15% production increase. The company plans a 20% cut in operating costs and aims for at least 10% debt reduction by year-end through free cash flow and non-core asset sales.