DALLAS, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS) today reported financial and operating results for the second quarter of 2026.

The Company said it generated net income of $185 million, or $0.31 per diluted share, in the quarter. After adjusting for items affecting comparability, adjusted net income (1) was $68 million, or $0.11 per diluted share.

Second-Quarter 2026 and Post-Quarter Highlights

• Net production (2) averaged approximately 71,400 barrels of oil equivalent per day (boepd), up about 12% from the second quarter of 2025.
• Revenues were $607 million, or $86.68 per barrel of oil equivalent (boe), excluding the impact of derivative cash settlements.
• Production expense was $179 million, or $25.61 per boe, down about 25% from the second quarter of 2025.
• Capital expenditures totaled $105 million.
• Two new Jubilee wells came online late in the second quarter and early in the third quarter. The last producer in the current campaign is due online imminently and is expected to increase Jubilee gross production to more than 90,000 barrels of oil per day (bopd).
• Greater Tortue Ahmeyim (GTA) gross production averaged about 2.65 million tonnes per annum (mtpa) in the quarter, with nine gross LNG cargos lifted, averaging about 2.7 mtpa in the first half of the year.
• Kosmos completed the sale of its interest in the Ceiba Field and Okume Complex in Equatorial Guinea.
• The Company generated about $175 million in net cash provided by operating activities and about $89 million in free cash flow (1), supporting net debt reduction of more than $400 million in the first half of the year.
• After quarter-end, Kosmos completed the farm-down of the operated Tiberius project in the Gulf of America.

Chairman and Chief Executive Officer Andrew G. Inglis said Kosmos began 2026 with four goals: increasing production from core assets, lowering costs, reducing debt and advancing its growth portfolio with minimal capital. He said the Company made “excellent progress” on each objective in the first half of the year.

Inglis said Jubilee drilling continued to deliver strong results in Ghana, with production trending toward the upper end of guidance. He said nine gross LNG cargos were lifted at GTA during the quarter, highlighting the project’s contribution to the annual production outlook. GTA Phase 1, which achieved first LNG in early 2025, is among the most significant deepwater gas-to-LNG developments offshore West Africa, establishing Mauritania and Senegal as a new LNG-exporting basin. He also said Kosmos completed a competitive farm-down process for Tiberius in the Gulf of America and sold its Equatorial Guinea production assets, concentrating capital on lower-cost, higher-return opportunities — a portfolio rationalization approach that several mid-cap independent E&P companies have pursued in recent years to prioritize balance sheet strength and core asset returns over geographic diversification.

He added that the Company completed the GTA bond and equity raise in the first half of the year, and said that this financial activity, combined with operational momentum, led to improved credit ratings. Kosmos has also begun the reserve-based lending facility (RBL) refinancing process and remains on track toward its roughly 20% debt-reduction target for the year.

Financial Update

In April, Kosmos completed its spring RBL redetermination, and the borrowing base was reduced to approximately $1.2 billion after the Equatorial Guinea asset sale closed in June. The Company said it has now started the process of refinancing the facility with its lending banks, with completion targeted for the fourth quarter.

Kosmos also added further hedges for 2027 after taking advantage of higher oil prices. The Company said it has 3.25 million barrels of oil hedged for the remainder of 2026 at an average floor of about $66 per barrel, and another 7.0 million barrels hedged in 2027 with a floor of about $67 per barrel and a ceiling of about $84 per barrel.

Net capital expenditure in the second quarter was $105 million, in line with guidance. Full-year 2026 capital expenditure guidance of $350 million was unchanged.

Kosmos generated approximately $175 million in net cash provided by operating activities and approximately $89 million in free cash flow during the quarter. The Company ended the period with approximately $2.56 billion of net debt (1) and more than $500 million of liquidity.

Operational Update

Production

Total net production in the second quarter averaged approximately 71,400 boepd, up about 12% from the second quarter of 2025. Kosmos said the increase was driven mainly by the ramp-up at GTA and new wells coming online at Jubilee. The figure includes Equatorial Guinea production only through June 16, 2026, the date the asset sale closed, which reduced second-quarter production by about 1,000 boepd. Sales for the quarter were approximately 77,000 boepd.

The Company ended the quarter in a net underlift position of about 0.5 mmboe.

Ghana

Production in Ghana averaged approximately 36,300 boepd net in the second quarter, including gas production of about 7,000 boepd. Two full Jubilee cargo liftings and one TEN lifting took place during the quarter, in line with guidance. A third Jubilee cargo began lifting on the last day of the quarter and was completed on July 2, 2026.

At Jubilee, where Kosmos has a 38.6% working interest, gross oil production averaged approximately 72,000 bopd in the quarter. The J76 well came online in mid-June, followed by the J77 well in early July. Initial performance from both wells has been strong and in line with the high end of expectations.

The J50 well, which is the completion of a previously drilled well, is due online in the coming days and is expected to lift Jubilee gross production to more than 90,000 bopd. A water injection well will complete the drilling campaign and is expected to come online at the end of the third quarter. The partnership is also working to secure a rig for the 2027/28 campaign, which is expected to begin in mid-2027 and include up to ten wells.

At TEN, where Kosmos has a 20.4% working interest, gross oil production averaged approximately 14,700 bopd in the quarter, in line with expectations.

Mauritania and Senegal

GTA Phase 1 production averaged approximately 15,700 boepd net during the quarter, or roughly 2.65 mtpa of LNG equivalent gross. This was slightly below the first quarter, mainly because of warmer seasonal temperatures, as noted previously.

The partnership lifted nine gross LNG cargos in the second quarter, at the upper end of guidance, bringing first-half gross LNG cargos to 18.5. Full-year guidance of 32 to 36 gross LNG cargos remains unchanged. Kosmos and the national oil companies of Mauritania and Senegal also lifted one condensate cargo during the quarter. The final condensate cargo for 2026 is expected to be lifted late in the third quarter.

Reducing operating costs at GTA Phase 1 remains a priority in 2026. Kosmos said net operating costs per boe are on track to fall by more than 50% year over year, with additional reductions possible in 2027 and beyond.

With Phase 1 fully ramped up, the partnership is now focusing on future growth through Phase 1+, which is designed to use the existing infrastructure for sales to domestic markets in Senegal and Mauritania, initially for power generation. Heads of terms for domestic gas sales are targeted in 2026.

Senegal is constructing an onshore power plant near Saint Louis and is expected to begin building the gas pipeline network this quarter. Pipe is expected to arrive imminently from China after a longer voyage intended to avoid the Middle East. The pipeline will transport gas from the GTA hub terminal for domestic power generation. Mauritania has also signed a 25-year agreement with a Saudi Arabian power company to develop, finance and operate a 230 MW gas-fired power plant in N'Diago that plans to use gas supplied from the GTA field. These domestic gas initiatives reflect a broader policy push by several West African governments to convert offshore gas resources into electricity supply, addressing persistent power deficits in the region.

Gulf of America

Production in the Gulf of America averaged approximately 14,300 boepd net, about 83% oil, during the second quarter, within guidance.

On the Kosmos-operated Tiberius project, Kosmos and Occidental took final investment decision (FID) in March. Following FID, Kosmos completed a competitive farm-out process in July, with Navitas becoming a 33.33% partner alongside Kosmos (33.34%) and Occidental (33.33%, owner and operator of the host facility). The consideration for the farm-down includes upfront cash, carry for future development capital expenditures expected to cover Kosmos’ spending on the project through 2026 into mid-2027, and future milestone payments.

At Winterfell, the partnership spud Winterfell-5 in April 2026. The well was temporarily abandoned in July 2026 by the operator because of issues with the production casing. The partnership is evaluating the cause of the issue in order to restore production from the fault block.

Kosmos also said it expanded its infrastructure-led exploration (ILX) portfolio in the Gulf of America through a strategic alliance with Shell in the Norphlet trend earlier this year. The companies have aligned interests across ten blocks in the Gulf of America to explore multiple prospects, including Trailblazer, which has an estimated gross resource potential of about 200 mmboe. Shell plans to begin drilling Trailblazer in the first quarter of 2027. If successful, the prospect could be tied back to Shell’s nearby Appomattox platform, with Kosmos designated as development operator. The alliance reflects a wider industry trend of using existing host infrastructure to economically develop smaller deepwater pools, reducing per-well capital requirements compared with standalone developments.

Equatorial Guinea

Production in Equatorial Guinea averaged approximately 14,500 bopd gross and 5,100 bopd net in the second quarter through June 16, 2026. Kosmos lifted 0.4 cargos from Equatorial Guinea during the quarter, in line with guidance.

On June 17, 2026, Kosmos said it had completed the sale of its 40.375% non-operating working interest in the Ceiba Field and Okume Complex production assets to Panoro Energy. Final cash consideration on completion, after closing adjustments, was approximately $127 million and was used to repay borrowings under the RBL. The closing adjustments reflect the cash received from the assets in the first half of 2026 through the June 16 closing date. Future contingent payments of up to about $40 million remain subject to certain oil price and production thresholds.

Kosmos said full-year 2026 guidance has been updated to reflect the sale of the Equatorial Guinea assets. The midpoint of the revised production and operating cost-per-boe ranges for fiscal 2026 reflects the continued performance of the portfolio after the sale.

Conference Call and Webcast Information

Kosmos will host a conference call and webcast to discuss second-quarter 2026 financial and operating results today, Aug. 3, 2026, at 10:00 a.m. Central time (11:00 a.m. Eastern time). The live webcast will be available on the Investors page of the Company’s website at . The dial-in number is +1-800-715-9871. Callers in the United Kingdom should dial 0800 260 6466, and callers outside the United States should dial +1-646-307-1963. A replay of the webcast will be available on the Investors page for approximately 90 days.

About Kosmos Energy

Kosmos Energy is a deepwater exploration and production company focused on meeting global energy demand. The Company has diversified oil and gas production from assets offshore Ghana, Mauritania, Senegal and the Gulf of America. In the basins where it operates, Kosmos is advancing development opportunities generated through exploration success.

Kosmos is listed on the NYSE and LSE and trades under the ticker symbol KOS. The Company says its Business Principles reflect commitments to transparency, ethics, human rights, safety and the environment. More information is available at www.kosmosenergy.com.

Non-GAAP Financial Measures

EBITDAX, adjusted net income (loss), adjusted net income (loss) per share, free cash flow and net debt are supplemental non-GAAP financial measures used by management and external users of the Company’s consolidated financial statements, including industry analysts, investors, lenders and rating agencies. Kosmos defines these measures in its earnings release and notes that they may not be comparable to similarly titled measures used by other companies.

The Company also notes that some forward-looking non-GAAP financial measures, including free cash flow, cannot be reconciled quantitatively to the most directly comparable forward-looking GAAP measures because certain inputs, such as future impairments and changes in working capital, cannot be reliably or reasonably predicted.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. securities laws. These statements are based on current expectations and estimates and are subject to risks and uncertainties that could cause actual results to differ materially. Kosmos said readers should not place undue reliance on these statements, which speak only as of the date of the release. The Company said it undertakes no obligation to update or correct forward-looking statements except as required by law.

(1) Cash settlements on commodity hedges were $(105.4) million and $11.4 million for the three months ended June 30, 2026 and 2025, respectively, and $(135.7) million and $9.7 million for the six months ended June 30, 2026 and 2025, respectively.

(2) Production means net entitlement volumes. In Ghana, Equatorial Guinea, and Mauritania and Senegal, this refers to volumes net to Kosmos’ working interest or participating interest and net of royalty or production sharing contract effect. In the Gulf of America, it refers to volumes net to Kosmos’ working interest and net of royalty.