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Sep 30, 2025
Kosmos Energy Q3 2025 Earnings Report
Kosmos Energy reported a net loss in Q3 2025 amid higher production and lower costs, but was impacted by impairment charges and underlifted volumes.
Key Takeaways
Kosmos Energy posted a Q3 2025 net loss of $124 million despite increased production and reduced expenses. Impairment of a Gulf of Mexico well and timing of cargo sales contributed to weaker financials. The company continues to advance major projects while focusing on cost reductions and balance sheet strengthening.
Generated a net loss of $124 million and adjusted net loss of $72 million for Q3 2025
Revenue reached $311 million, with production averaging 65,500 boepd
Free cash flow was negative $98.9 million, largely due to working capital draw and capex
Net debt stood at $2.95 billion at quarter-end, with liquidity of $540 million
Revenue by Geographic Location
Forward Guidance
Kosmos expects production to increase in Q4 2025 with contributions from new Jubilee wells and ramp-up at GTA, while maintaining lower capex and opex.
Positive Outlook
- Q4 production expected to increase to 66,000–72,000 boepd
- Capital expenditure for FY 2025 guided to be below $350 million
- GTA Phase 1 operating costs targeted for further reductions
- Company remains on track to reduce overhead by $25 million in 2025
- More hedges added to protect 2026 production with $66/bbl floor
Challenges Ahead
- Winterfell-4 well in Gulf of Mexico was abandoned, incurring $51.1 million write-off
- Free cash flow remained negative in Q3 2025
- Kosmos underlifted by ~0.6 mmboe, impacting revenue recognition
- Net debt remains high at nearly $3 billion
Historical Earnings Impact
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Avg. Return Before/After Earnings
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