Kosmos Energy Ltd.

Kosmos did not give a full set of headline quarterly figures like revenue, EPS, or gross margin in the prepared remarks, but management said second-quarter production was around 12% higher year over year. Absolute operating costs were around 25% lower year over year, and the company said it remains on track to reduce OpEx per barrel by around 35% in 2026. For the first half of 2026, production was up 18% versus the same period last year, absolute operating costs were down 24%, and net debt was reduced by around 15% versus year-end 2025. For guidance, Jubilee full-year production guidance stays at 70,000 to 80,000 barrels of oil per day, GTA full-year LNG cargo guidance remains 32 to 36 gross cargos, and management said the production midpoint was moved down by around 2,500 boe per day net after the Equatorial Guinea sale. Management also said leverage is expected to fall further toward 2x by year-end, the amended RBL should close in the fourth quarter with a facility size around $1.2 billion, and the company may look to repay the 2028 notes later in the year.

Andy Inglis framed the quarter as evidence that Kosmos is delivering on four 2026 priorities: grow production, lower costs, reduce debt, and advance the growth portfolio with minimal capital input. He emphasized Jubilee’s strong drilling results, saying J76 was one of the best wells in over a decade and that new seismic should help identify more bypassed oil and deeper opportunities. His tone was constructive and upbeat, but he also highlighted operational discipline, especially around water injection at Jubilee and continued execution on GTA and Gulf of America growth projects.

Neal Shah focused on the financial payoff from the operational performance and portfolio actions. He said absolute operating costs were about 25% lower year over year in Q2, that the company had paid down approximately $420 million of debt through free cash flow, the equity raise and EG sale proceeds, and that liquidity ended the quarter at over $500 million. He also said S&P and Fitch upgraded the company to B-, the RBL process is underway with a target facility size of around $1.2 billion, and leverage is expected to move toward 2x by year-end. On Tiberius, he said the farm-down implied a gross valuation of around $250 million as of January 1, 2026, with a bit under $45 million of consideration including upfront cash, carry and milestone payments.

Analysts focused heavily on Jubilee well performance, including whether J76 points to more bypassed oil and deeper horizons, and management said it does. They also asked about the Tiberius farm-down value, where Neal Shah said the deal implied a gross valuation of around $250 million and that Logan is an additional resource opportunity beyond the main Tiberius blocks. Questions on Winterfell centered on drilling problems and recourse; management said there has been disappointment with drilling performance and extra cost, but production impact has not been material and they want the issues resolved before spending more capital. The refinancing discussion centered on the RBL and the 2028 notes, and management said the RBL process is progressing, should close in Q4, and the 2028 maturity will be the next focus after that.