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Kosmos Energy (KOS) Q3 2026 Earnings Report
KOS Q3 2026 EPS Results
- Actual EPS
- $0.06
- Consensus EPS
- $0.13
- Beat/Miss
- Missed by -$0.07
- One Year Ago EPS
- -$0.15
KOS Q3 2026 Revenue Results
- Actual Revenue
- $410.06M
- Expected Revenue
- $466.11M
- Beat/Miss
- Missed by -$56.05M
- YoY Revenue Growth
- +31.46%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/02/2026
- Time
- Before Open
- Conference Call
- Monday, November 2, 2026
KOS Upcoming Earnings
Kosmos Energy's next earnings date is estimated for March 1, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
KOS Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Kosmos reported higher production, substantial operating-cost reductions, nearly doubled EBITDAX, robust free cash flow, significant debt reduction, improved liquidity, successful financing actions, and progress across its Ghana, GTA, Gulf of America, and exploration portfolios. The main challenges were expected fourth-quarter production declines, Jubilee reservoir-management requirements, financing costs, and the need to address the 2028 maturity and higher-cost debt.
Company Guidance
Kosmos expects Jubilee’s annual guidance to remain 70,000 to 80,000 barrels of oil per day, with year-to-date production through end 3Q around 75,000 barrels of oil per day, water injection above 120%, and high FPSO uptime of around 98% or above; the objective is probably to exit the fourth quarter around the mid-70s, with the best view being 3 cargoes in the fourth quarter. GTA is on track to achieve the upper end of its 32 to 36 gross LNG cargo guidance, while 2026 free cash flow is expected to be around $300 million, net of any hedging impact, which is expected to be around $200 million for the year; year-end 2027 net debt is targeted at around $2 billion at strip prices.
- Progress Against 2026 ObjectivesKosmos reported strong progress against its four 2026 objectives: increasing production, reducing costs, reducing debt, and advancing its growth portfolio with minimal capital input. Management expects to end the year with higher production, lower costs, lower debt, and greater exposure to elevated commodity prices entering 2027.
- Strong Jubilee ProductionJubilee gross production was 84,500 barrels of oil per day in the third quarter, an increase of around 17% versus the previous quarter, supported by the J50 producer and J73 water injection wells. Year-to-date production through the end of the third quarter was around 75,000 barrels of oil per day, within the annual guidance range of 70,000 to 80,000 barrels of oil per day.
- Ghana Drilling and Future Jubilee ProgramThe Ghana drilling campaign delivered in line with expectations and highlighted the potential of the mid-life Jubilee asset. Kosmos contracted the Faye Kozack rig for the 2027/2028 campaign of up to 10 wells, with the rig expected to arrive in mid-2027. The program will use recent 4D seismic and an ocean bottom node survey to help plan and high-grade wells.
- GTA Production and Cargo PerformanceGTA gross LNG production was around 2.44 million tons per annum equivalent in the third quarter, in line with expectations. The partnership lifted 8.5 gross LNG cargoes, slightly ahead of guidance, bringing the year-to-date total to 27 gross cargoes. Kosmos remains on track to reach the upper end of its annual guidance of 32 to 36 gross LNG cargoes.
- GTA Condensate and Expansion ProgressThe condensate cargo delayed by bad weather was lifted in early fourth quarter, with Kosmos receiving just under 400,000 net barrels. All three gross condensate cargoes planned for the year have now been lifted. Phase 1 plus is progressing, with the Senegal onshore pipeline more than 25% complete and commissioning targeted for 2029.
- Domestic Gas Development in Mauritania and SenegalManagement said it has a shared vision with the governments of Mauritania and Senegal to prioritize lower-cost domestic gas alongside LNG exports. The domestic gas is intended to replace higher-cost imported diesel and LNG and support gas-to-power and gas-to-industry goals.
- Gulf of America Production in Line with ExpectationsThird-quarter Gulf of America production was approximately 14,100 barrels of oil equivalent per day, in line with expectations, helped partly by the lack of storm activity during the quarter.
- Tiberius Farm-Down and Development FundingKosmos completed a farm-down of Tiberius, bringing Navitas into the project with a 33.33% interest. Kosmos remains operator with a 33.34% interest, while Oxy holds the remainder. The consideration included upfront cash, future development capital carry, and milestone payments; the carry is expected to cover Kosmos's Tiberius capital expenditures through 2026 and its share of development through the first half of 2027. First oil is expected in the second half of 2028.
- Shell Exploration Alliance and TrailblazerThe Shell exploration alliance is preparing to drill the Trailblazer ILX well in the first half of 2027 using Transocean's Deepwater Pontus rig. Kosmos expects to hold around one-third of the well through a straightforward interest split. In a success case, the discovery could be tied back to Shell's nearby Appomattox facility, which has available capacity, with Kosmos designated development operator.
- Significant Operating Cost ReductionAbsolute operating costs fell by almost $150 million in the first nine months of the year, a reduction of around 26%. Operating expenses per barrel fell by around $12 per barrel, or approximately 37% on a per-unit basis.
- Higher Production and EBITDAXProduction for the first nine months of 2026 increased 14% versus the same period of 2025 without adjusting for the sale of EG. EBITDAX almost doubled in the nine months ended September 30 to almost $800 million, supported by lower costs and a higher commodity price backdrop.
- Robust Free Cash Flow OutlookKosmos expects around $300 million of free cash flow in 2026, net of hedging impacts, with the hedging impact expected to be around $200 million for the year. Management said additional free cash flow is expected in the fourth quarter.
- Improved 2027 Commodity ExposureThe company has placed 2027 hedges at much higher levels than in 2026, with a higher average floor and a much higher average ceiling on its collars. Management said this provides greater exposure to higher prices while operating with a lower cost base.
- RBL Extension and LiquidityKosmos closed the extension of its reserve-based lending facility to April 2033. Management described the amendment as evidence of proactive maturity management and continued confidence from the banking market. The company exited the third quarter with around $570 million of available liquidity and expects liquidity to strengthen further in the fourth quarter.
- Debt Reduction and Leverage ImprovementDuring the third quarter, Kosmos repaid $50 million of 2027 bonds, $15 million of the Gulf of America term loan, and $25 million of the RBL using free cash flow. Net debt reduction was around 70% versus year-end 2025, the company is on track for its 20% reduction target for the year, and leverage is moving toward 2x by year-end.
- Positive Realized Pricing in Early Fourth QuarterManagement reported that two cargoes lifted in early fourth quarter realized approximately $120 per barrel or better, including one Jubilee cargo and one condensate cargo. October Gulf realizations were the highest netted year to date, while Dated Brent was still just under $120 per barrel as of the prior Friday.
- 2027 Investment and Balance-Sheet PrioritiesKosmos plans to continue investing selectively in its highest-quality growth opportunities while maintaining capital discipline. Planned activity includes the next Ghana infill drilling program, GTA expansion, the Trailblazer exploration well, and continued investment in people and technology. The company is targeting year-end 2027 net debt of around $2 billion at strip prices while addressing near-term maturities.
KOS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 01, 2027 | 2026 (Q4) | 0.17- | -0.16 | ― | ― |
| Nov 02, 2026 | 2026 (Q3) | 0.130.06 | -0.15 | 140.00% (+0.21) | |
| Aug 03, 2026 | 2026 (Q2) | 0.090.11 | -0.19 | 157.89% (+0.30) | |
| May 05, 2026 | 2026 (Q1) | 0.08-0.07 | -0.22 | 68.18% (+0.15) | |
| Mar 02, 2026 | 2025 (Q4) | -0.13-0.16 | -0.03 | -433.33% (-0.13) | |
| Nov 03, 2025 | 2025 (Q3) | -0.12-0.15 | 0.08 | -287.50% (-0.23) | |
| Aug 04, 2025 | 2025 (Q2) | -0.07-0.19 | 0.17 | -211.76% (-0.36) | |
| May 06, 2025 | 2025 (Q1) | -0.08-0.22 | 0.21 | -204.76% (-0.43) | |
| Feb 24, 2025 | 2024 (Q4) | -0.00-0.03 | 0.31 | -109.68% (-0.34) | |
| Nov 04, 2024 | 2024 (Q3) | 0.090.08 | 0.26 | -69.23% (-0.18) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
