Kosmos Energy(KOS) - 2025 Q3 - Quarterly Results

Financial Performance - The company reported a net loss of $124 million, or $0.26 per diluted share, for Q3 2025, with an adjusted net loss of $72 million, or $0.15 per diluted share[1]. - Oil and gas revenue for Q3 2025 was $310,959,000, a decrease of 23.7% compared to $407,794,000 in Q3 2024[38]. - Total revenues and other income for the nine months ended September 30, 2025, were $995,178,000, down from $1,277,906,000 in the same period of 2024, representing a decline of 22.1%[38]. - Net loss for Q3 2025 was $124,299,000, compared to a net income of $44,974,000 in Q3 2024, indicating a significant shift in performance[38]. - Total costs and expenses for Q3 2025 increased to $417,701,000, up from $301,279,000 in Q3 2024, marking a rise of 38.7%[38]. - Cash and cash equivalents as of September 30, 2025, were $64,032,000, down from $84,972,000 at the end of 2024, reflecting a decrease of 24.7%[40]. - Net cash used in operating activities for Q3 2025 was $(27,568,000), compared to $6,282,000 in Q3 2024, indicating a negative cash flow shift[42]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $(330,924,000), down from $(774,813,000) in the same period of 2024[42]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $26,065,000 for Q3 2025, contrasting with a decrease of $(122,232,000) in Q3 2024[42]. - Net income for the three months ended September 30, 2025, was $(124,299) thousand, compared to $44,974 thousand for the same period in 2024, representing a significant decline[46]. - Free cash flow for the three months ended September 30, 2025, was $(98,935) thousand, compared to $(212,963) thousand for the same period in 2024[48]. Production and Sales - Net production averaged approximately 65,500 barrels of oil equivalent per day (boepd), a 3% increase compared to Q2 2025, with sales of approximately 59,900 boepd[2]. - Production in Ghana averaged approximately 31,300 boepd net, with Jubilee oil production averaging approximately 62,500 bopd gross[18]. - The company lifted 6.8 gross LNG cargos from the Greater Tortue Ahmeyim (GTA) project during the quarter, with an additional 2.7 cargos lifted post quarter-end[2][14]. - Total net volume sold for oil in the three months ended September 30, 2025, was 3.799 million barrels, down from 5.135 million barrels in the same period of 2024[50]. - Oil sales revenue for the three months ended September 30, 2025, was $255,661 thousand, down from $393,555 thousand in the same period of 2024[50]. - Average oil sales price per barrel for the three months ended September 30, 2025, was $67.30, compared to $76.64 in the same period of 2024[50]. - The average total sales price per Boe for the three months ended September 30, 2025, was $56.39, down from $70.18 in the same period of 2024[50]. Capital Expenditures and Costs - Capital expenditures for Q3 2025 were $67 million, with full-year capital expenditures expected to be below $350 million, representing a reduction of over 60% year-on-year[5][10]. - Operating costs decreased by 39% compared to Q2 2025, with a targeted overhead reduction of $25 million by year-end[5][10]. - Operating expenses (Opex) for 4Q 2025 are projected to be between $15.00 and $18.00 per boe, while FY 2025 is expected to be around $22.00 per boe[57]. - Depreciation, Depletion, and Amortization (DD&A) for 4Q 2025 is estimated at $21.00 to $23.00 per boe, with FY 2025 guidance of $22.00 to $24.00 per boe[57]. - General and Administrative expenses (G&A) for 4Q 2025 are expected to be approximately $15 million, with FY 2025 guidance at around $75 million[57]. - Exploration expenses for FY 2025 are projected to be between $25 million and $45 million[57]. - Net interest expense for FY 2025 is expected to be around $220 million[57]. - Capital expenditures for 4Q 2025 are forecasted to be between $80 million and $100 million, with FY 2025 expected to be less than $350 million[57]. Debt and Liquidity - The company exited Q3 2025 with approximately $2.9 billion in net debt and liquidity of approximately $540 million[11][28]. - Long-term debt, net, as of September 30, 2025, was $2,728,500,000, slightly down from $2,744,712,000 at the end of 2024[40]. - Total long-term debt as of September 30, 2025, increased to $3,025,274 thousand from $2,800,274 thousand as of December 31, 2024[44]. Future Outlook - 4Q 2025 production forecast is between 66,000 and 72,000 boe per day, with FY 2025 guidance at approximately 65,000 boe per day[57]. - Ghana's FY 2025 revenue is forecasted based on 9-10 cargoes, with an average cargo size of 950,000 barrels of oil[59]. - Gulf of America production for FY 2025 is projected to be between 17,000 and 19,000 boe per day, with an oil/gas/NGL split of approximately 83%/11%/6%[61]. - Operating costs associated with GTA for FY 2025 are expected to total approximately $225 million to $245 million net[61].