Kosmos Completes $1.2 Billion RBL Extension After Debt Cut

The Tip Desk · November 10, 2026 · 3 min read

The deepwater producer posted a $43 million net loss, or $0.07 a share, and $410 million of oil and gas revenue in the third quarter of 2026.

Kosmos Energy Ltd. (KOS) reported a net loss of $43 million, or $0.07 a share, for the third quarter of 2026, after a $185 million profit in the second quarter. Adjusted net income was $35 million, or $0.06 a share.

Oil and gas revenue was $410 million, or $71.39 a barrel of oil equivalent excluding derivative cash settlements, versus $607 million, or $86.68 a boe, in the second quarter. Production expense was $102 million, or $17.72 a boe. Net capital expenditure was $85 million, in line with guidance. Full-year 2026 capital spending guidance of about $350 million was unchanged.

Net production averaged about 69,200 boepd, down from about 71,400 boepd in the second quarter and about 74,800 boepd in the first quarter. Sales were about 62,400 boepd. The company exited the quarter about 1.1 million barrels of oil equivalent underlifted.

Ghana averaged about 40,500 boepd net, including about 6,800 boepd of gas, with 2.75 Jubilee cargo liftings. Jubilee oil production averaged about 84,500 bopd gross, about 17% higher than the second quarter, after the 2025/26 campaign delivered seven successful infill wells. The partnership secured the Noble Faye Kozack rig for a 2027/28 program of up to 10 wells expected to start in mid-2027. At TEN, oil averaged about 14,600 bopd gross.

Greater Tortue Ahmeyim averaged about 14,600 boepd net, or about 2.44 million tonnes per annum of LNG equivalent gross, with 8.5 gross LNG cargos lifted, slightly above guidance. Full-year gross LNG cargo liftings are expected at the upper end of the 32-36 range. Gulf of America averaged about 14,100 boepd net, about 83% oil. Fourth-quarter Gulf of America production is expected at 10,000-11,500 boepd after planned Delta House maintenance, a Kodiak-1 workover and Hurricane Isaias downtime.

The company completed the Tiberius farm-down, with Navitas becoming a 33.33% partner alongside Kosmos (33.34%) and Occidental (33.33%). Consideration was a mix of upfront cash, carry for future development capital and milestone payments. The carry is expected to cover Kosmos’ spend on the project through 2026 and the first half of 2027.

Net cash provided by operating activities was about $164 million and free cash flow about $90 million, the third consecutive quarter of positive free cash flow. Year-to-date free cash flow was $193 million. Net debt fell by more than $500 million through the end of the third quarter to about $2.47 billion, with about $570 million of liquidity. The company said it is on track to achieve a about 20% net debt reduction target in 2026, with year-end net debt expected below $2.4 billion and leverage expected to fall towards 2.0x.

In October, Kosmos completed an amendment and extension of its reserve-based lending facility with a size and total commitments of $1.2 billion and a final maturity extended to April 2033. With $750 million drawn, there are no planned amortization payments until 2031. The company said it will now look to address 2028 bond maturities.

Fourth-quarter 2026 guidance is 60,000-64,000 boepd, operating expense $18.00-$20.00 a boe, DD&A $17.50-$19.50 a boe, G&A $10-$15 million, exploration expense about $5 million, net interest expense $50-$55 million, tax $11.00-$15.00 a boe and capital expenditure $50-$75 million, excluding Equatorial Guinea from June 17 following the sale of the assets, which closed June 16, 2026.