KOS

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 11 a.m. ET Vice President of Investor Relations - Jamie Buckland Chairman and Chief Executive Officer - Andrew Inglis Chief Financial Officer - Neal Shah Operator: Good day, everyone. Welcome to Kosmos Energy's Second Quarter 2026 Conference Call. As a reminder, today's call is being recorded. At this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Kosmos Energy. Jamie Buckland: Thank you, operator, and thanks to everyone for joining us today. This morning, we issued our second quarter 2026 earnings release. This release and the slide presentation to accompany today's call are available on the Investors page of our website. Joining me on the call today to go through the materials are Andy Inglis, Chairman and CEO; and Neal Shah, CFO. During today's presentation, we will make forward-looking statements that refer to our estimates, plans and expectations. Actual results and outcomes could differ materially due to factors that we note in this presentation and in our U.K. and SEC filings. Please refer to our annual report, stock exchange announcement and SEC filings for more details. These documents are available on our website. At this time, I'll turn the call over to Andy. Andrew Inglis: Thanks, Jamie, and good morning and afternoon to everyone. Thank you for joining us today for our second quarter 2026 results call. I'll begin today's call by reviewing the progress we've made against the 4 2026 goals that we laid out at the start of the year before giving an update on each of our business units. I'll then hand over to Neal to talk about the financials before I wrap up with closing remarks. We'll then open up the call for Q&A. Starting on Slide 3. When we released our full year 2025 results in March, we laid out 4 key objectives for Kosmos in 2026, which is shown on the slide. I'm pleased to say in the first half of the year, we made excellent progress across all 4. We've grown production from our core assets, namely Jubilee and GTA. We've delivered significant absolute and per BOE cost reductions year-on-year with a specific focus on operating costs. We've delivered a meaningful reduction in net debt already this year and are making good progress towards hitting a 20% reduction in net debt, a target we increased with our first quarter results in May. And we've continued to advance our high-quality growth portfolio, particularly in the Gulf of America with minimal capital input. Through these actions, we're delivering a stronger and more valuable Kosmos, a company with high production, lower costs and lower debt that is more resilient to future price volatility with significant upside from our deep hopper of future growth opportunities. I'll now go into more detail as we move through the slides. Starting with Ghana on Slide 4. We've seen a lot of positive progress in Ghana this year with an active drilling campaign that is delivering towards the upper end of our expectations, demonstrating Jubilee's potential. We've used a chart on this slide for the last few quarters to highlight the ramp-up in Jubilee production since the start of the current drilling campaign in the second half of 2025. Since we reported first quarter results in May, 2 new producers have come online, J76 and J77. The final producer well of the campaign J50 is the completion of a previously drilled well is expected to start up in the coming days. With J50 online, we expect Jubilee gross production above 90,000 barrels of oil per day. J76, in particular, came in at the top end of our expectations and based on performance so far, is the best well we've seen at Jubilee in over a decade. The well is an example of the upside potential of the asset and shows there is a lot of future value left to play for, particularly as we start to integrate the results of the 2025 OBN seismic into our future well planning. With 7 months of production, we have a robust track record that underpins our full year guidance for Jubilee, which remains unchanged at 70,000 to 80,000 barrels of oil per day. The performance of the latest wells continues to support the upper end of this range. An important takeaway from the chart at the top of the slide is the correlation between activity and performance. During periods of drilling, high FPSO uptime and sustained water injection, the field has performed well. We're, therefore, working closely with the operators to secure a rig for the '27-'28 drilling campaign for up to 10 wells with the objective of starting in mid-2027. This campaign will benefit from both the fully processed 4D and fast track OBN seismic, which will help refine and high-grade future well locations and give the partnership the best opportunity to maximize future reserve recovery. So in summary, it's an exciting time in Ghana. Jubilee, our highest margin production is performing strongly at a time of higher oil prices, helping us to deliver our debt reduction targets for the year. And looking forward, with the benefit of new technologies, we're working closely with the operator to plan and progress next year's drilling campaign. Turning to Slide 5. GTA has continued to perform well this year. In the second quarter, gross LNG production was around 2.65 million tonnes per annum equivalent, in line with our expectations. 9 gross LNG cargos were lifted during the quarter at the upper end of guidance. For the full year, our guidance of 32 to 36 gross LNG cargos remains unchanged with 18.5 lifted in the first half of the year. During the second quarter, one condensate cargo was jointly lifted by Kosmos and the NOCs with around 300,000 barrels net to Kosmos. An additional condensate cargo is expected late in the third quarter, which is also expected to be assigned to Kosmos and the NOCs with around 400,000 barrels net to Kosmos. Due to the seasonality that we've flagged in the past, daily LNG production is expected to remain slightly lower during the summer months because of the warmer sea and air temperatures. Volumes should then pick up again later in the year as cooler temperatures return. On costs, we remain on track to hit our 50% reduction target for OpEx per MMBtu this year and see scope for further reduction in 2027. On the Phase 1 expansion for domestic gas to power, which should materially enhance project returns, there's been good progress on the ground in both Senegal and Mauritania so far this year. In Senegal, the land has now been cleared to the onshore section of the northern segment of the gas pipeline, which will connect GTA to the 250-megawatt Gandon power station being built near St. Louis. The photographs on the top of the slide show the gathering in China in May to celebrate the completion of the fabrication of the onshore pipeline before it was shipped to Senegal. The pipeline is due to arrive in country in the coming days after taking a longer route than initially planned to avoid the Middle East. In Mauritania, the country just signed a 25-year agreement with the Saudi power company for the development, finance, construction and operation of a new 230-megawatt gas-fired power plant in N'Diago, which is expected to use gas from the GTA field. These developments in Senegal and Mauritania are important steps for both countries to enhance domestic electricity generation, reduce reliance on imported fuels and support the country's long-term energy security and industrial development. Turning to Slide 6. Production in the Gulf of America for the second quarter was in line with expectations with continued solid performance for our operated Odd Job and Kodiak fields. On Winterfell, the #5 well was temporarily abandoned by the operator due to casing issues encountered during drilling. Turning to the growth side of the business. Following final investment decision in March, the Tiberius project is making good progress. Last week, we successfully completed a highly competitive farm down on Tiberius, bringing Navitas into the project as a 33.33% partner. Following the farm-in, Kosmos will remain as operator with a 33.34% interest. Oxy, the owner and operator of the nearby Lucius facility will have a 33.33% interest. The farm-in proceeds are a mix of upfront cash, carry for future development CapEx and future milestone payments. We expect the carry element to cover all of our Tiberius CapEx in 2026 and fund our share of the development through the first half of 2027. Tiberius is a low-cost, high-margin development. We now have an aligned partnership to move it forward with first oil expected in the second half of 2028. Elsewhere in the Gulf, as previously discussed, we entered into a strategic exploration alliance with Shell earlier in the year. As part of the alliance, we exchanged interest across multiple blocks across the Norphlet, which houses several material exploration prospects. Shell plan to start drilling the first of these Trailblazer in the first quarter of 2027. Trailblazer targeting around 200 million barrels of oil gross equivalent resource and Kosmos is designated as a development operator in the event of success. I'll now turn it over to Neal to take you through the financials. Neal Shah: Thanks, Andy. Turning now to Slide 7, which looks at the financials for the second quarter in detail. As Andy mentioned, it's been a strong quarter for the company with production around 12% higher year-on-year, driven by the new wells coming online at Jubilee and the ramp-up at GTA. Realized price is higher year-on-year, reflecting the elevated pricing seen in the second quarter following the war in the Middle East. As flagged last quarter, some of the pricing of our production has a lag impact. So we should also see some benefit of the higher 2Q pricing in the third quarter. On operating costs, we've seen a material reduction in both absolute and unit cost year-on-year. Absolute operating costs in the second quarter are around 25% lower year-on-year, consistent with our ongoing efforts to drive down costs across the business. With the EG disposal, we have now sold our highest cost barrels. So we'd expect absolute operating cost per unit to continue to fall through the second half of the year. The rest of the cost lines for the quarter were in line with guidance, but it's worth highlighting the interest expense reduction, which we expect to continue as we deliver on our debt reduction targets for the year. In terms of guidance for the third quarter and the full year 2026, we have updated the table in the appendix to reflect the Equatorial Guinea sale, which was completed in June. The two main line items that have been updated are production and operating costs. On production, the midpoint of the range has been moved down around 2,500 barrels of oil equivalent per day net, taking out the EG barrels for the second half of the year, with the remaining portfolio on track following the strong performance year-to-date. With slightly lower production post the EG sale and significantly lower costs, we remain on track to reduce OpEx per barrel by around 35% in 2026. Turning to Slide 8. We have had an active first half of the year, carrying out several important initiatives to drive a meaningful reduction in both debt and leverage, clear near-term maturities and increased liquidity. The successful GTA bond largely addressed the 2027 bond maturity, and we intend to pay the remaining stub with free cash flow. We paid down approximately $420 million of debt through free cash flow, the equity raise and proceeds from the EG sale. And we ended the quarter with over $500 million of available liquidity. This progress was recognized by the rating agencies with both S&P and Fitch upgrading the company to B-, reflecting the work we've done to enhance the balance sheet in the first half of the year. Looking at the second half of the year and the things that remain on our to-do list. We've commenced discussions with the lending banks around amending and extending the RBL, and we expect that process to close during the fourth quarter, targeting a facility size of around $1.2 billion. As we make further progress on the capital structure, we will also look potentially to repay the 2028 notes later in the year. And lastly, we'll continue to take advantage of higher prices to layer in more hedges for 2027. With continued execution, we expect leverage to fall further towards 2x by year-end, a pretty significant turnaround in only 12 months. So in summary, we've worked hard in the first half of the year to reduce absolute debt and leverage while improving liquidity. There's more to do in the second half and we are being proactive and methodical to get it all done. With that, I'll hand it back to Andy. Andrew Inglis: Thanks, Neal. Turning now to Slide 9 to conclude today's presentation. As I stated in my opening remarks, we have 4 key objectives for 2026: grow production, lower costs, reduce debt and advance our quality growth portfolio with minimal CapEx in 2026. This slide shows the progress we've achieved year-to-date against those goals. Production for the first half of 2026 is up 18% versus the same period last year. Absolute operating costs are down 24% in the first half of '26 versus 2025. We delivered a reduction in net debt of around 15% versus year-end 2025. And we are advancing our growth portfolio with the Tiberius FID and farm-down, continuing progress on GTA expansion and the exploration alliance with Shell in the Gulf of America. We're working hard to deliver stronger, more valuable Kosmos and look forward to delivering on our full year targets to support long-term value creation for our investors. Thank you. And I'd now like to turn the call over to the operator to open the session for questions. Operator: [Operator Instructions] And our first question comes from Charles Meade with Johnson Rice. Charles Meade: I'd like to ask about the J-76 well. And if you could characterize for us the setting of that well. And I'm thinking along the lines of is it kind of updip of one of your previous strong producers in a known fault block? Or is it maybe on the other end of the spectrum, maybe it's in some fallback that you hadn't been connected to. And I'm really trying to understand what the nature of the remaining opportunity for you is or maybe not just the nature of the opportunity in the next couple of years in Jubilee for you guys? Andrew Inglis: Yes. Yes. Thanks, Charles. Look, clearly, J-76 has been a very strong well. I think actually one of the best wells we've drilled in over a decade. I think ultimately, we're in the core part of the field and we've used the latest 4D to be able to identify some opportunities that are in that core part of the field that are updip and being an unswept. So the other interesting thing about 76 is we have actually picked up some deeper horizons as well. So there's a combination of sort of what I would say, the core areas of the field we've looked at in the past, plus some deeper opportunity. So I think in total, it sort of demonstrates two things. There are significant opportunities in the field where we have oil that has been bypassed by the current drilling program and injection patterns and therefore, can provide wells that have both significant resource and the ability to drill a well where you can have a secondary target deeper that introduces additional resource. I think it's those two elements that are important as we go forward. I think there's significant bypass oil opportunities and I think there will be continuing opportunities to find potentially deeper horizons that we haven't accessed in the past. Charles Meade: Got it. And that's exactly the kind of detail I was looking for. And then a follow-up question on Tiberius. I read or I went through the Navitas press release and I had a hard time following it even though it wasn't the HBU version. And so I'm wondering if you could -- and I recognize some of this may be sensitive, but I wonder if you could frame up for us how we should think about the value that you achieved for your sell-down of 17% there. Andrew Inglis: Thanks for looking at this morning. I'll pass it over to Neal, who can give you the full translation. Neal Shah: Yes, Charles. Yes, if you just take the math simply in terms of what we got for what we sold, it implies a gross valuation for Tiberius of around $250 million as of January 1, 2026. And again, we've got sort of a total of a bit under $45 million of consideration in between sort of upfront cash carry and milestone payments. And so again, I think a very good result from the team in executing a really good competitive farm-down process, and we're excited that we have the right partnership for the future. Charles Meade: That's exactly the kind of detail I was looking for Neal. And to be clear, that $250 million gross valuation, does that include the future contingent payments? Neal Shah: No, that's a gross value of the asset. So our net -- you add our net plus the value of the carry. Operator: Your next question comes from Bob Brackett with Bernstein Research. Bob Brackett: Question -- a bit of a follow-up, I suppose. Can you talk about the Logan discovery that you all picked up and is now part of this Navitas JV. Maybe what are the volumes in place? And what is the future plan to sort of bring that part of Tiberius into production? Andrew Inglis: Yes. Thanks, Bob. I'll pass it over to Neal. He's been handling that. Neal Shah: Yes. Yes, so there's -- we're still sort of -- we've just got updated seismic over Tiberius. There's a good discovery well that's already on Tiberius that was drilled, I think, 10-plus years ago. And so whether it's in the tens of millions of barrels of resource, but we do look at it as a potential add-on into the sort of greater Tiberius area. So we're looking at a handful of wells in Tiberius in terms of different fault blocks and ultimately connecting Logan into the system. But yes, so it's a potential well or 2 into that area to add some additional recovery. Bob Brackett: Very clear. And a follow-up. I imagine you're frustrated with Winterfell either by the operator, by the reservoir by something. Is there a recourse there? Or do you think you finally tackled some of the challenges there? Neal Shah: Yes. And so just on -- again, I think just from a Winterfell basis, yes, I mean, I do think -- ultimately, there's a big prize in terms of reserves there. We've drilled a number of wells. There's good pay. But we have been disappointed by the drilling performance on, again, what are relatively routine operations and the additional costs that have been incurred as a result. And so hence, the pause on activity to fully understand sort of what's causing the issues. And again, there hasn't been a material daily impact to sort of production, but we do want to make sure sort of those drilling issues are resolved before any more capital gets spent on the project. So yes, it has been frustrating, but it's something the team is working hard on with the operator to make sure gets comprehensively resolved. Operator: Your next question comes from the line of Neil Mehta with Goldman Sachs. Neil Mehta: I just wanted to first congratulate you guys on the progress on your net debt reduction, 15% since year-end 2025. And so Neal, maybe the first question is for you. On Slide 8, do you want to walk us through the progress that you guys have made and what your plan is through the balance of the year to hit 20% or above? Neal Shah: Yes, Neil, thank you. Yes, so there has been a lot of good work by the entire team to deliver a good first half in terms of almost $500 million of debt reduction in the first half of the year. So a bit under -- sort of we're at 2.5 and change. And then the goal would be to get closer to 2.4 by the end of the year. And again, I think from where we are from a production and cost perspective, we feel pretty good about the ability to get there even in a sort of lower commodity price environment, and that will be the big variable that sort of exists between now and the end of the year. But yes, the balance of that difference, which is about, call it, $150 million is expected to be generated from free cash flow, right? And so again, I think the -- we've delivered free cash flow for the last 2 quarters. The expectation is to do that as well and that will get us to sort of that net debt number of around 20% reduction year-on-year. And then in addition to that, again, I think just we remain proactive in terms of just managing the maturity schedule. So we've tackled the '26s first earlier this year. We tackled the '27s thereafter. We're working on the RBL at the moment, and then we'll tackle the '28. And once we're sort of done with that, we have plus, call it, 3 years plus of runway to -- without sort of worrying about sort of the debt in front of us. And we'll continue to focus on free cash flow and managing that level down beyond the 20% reduction in '26. And so again, I think the strong financial performance is driven by sort of good operational backbone at the beginning. And so again, the focus on doing both things simultaneously to get to the right result. Neil Mehta: Yes. And then just a follow-up is on the unit cost at Phase 1. Again, year-over-year, there should be significant reductions in OpEx as we work through start-up costs and you get towards Mauritania Senegal scale. But just talk about where you stand in terms of the reduction in cost? And then how does Phase 1 plus fit into the equation? Like what could the cost trend down to on a multiyear basis as we try to dial in that number? Andrew Inglis: Yes. I'll pick that up, Neil. Yes, you're correct. Clearly, we're getting the effects of 2 dynamics this year. We clearly pushed volume up on GTA. And the performance through the first half of the year has been very strong. We were targeting 32 to 36 cargos. We did 18.5 in the front end of the year. So the overall production level clearly strong. That's obviously helped in terms of managing the unit cost. And we've also had the benefit of some of the final commissioning costs coming out. And then I think there's still improvement to make in the cost base in '27 with different operating models that we're discussing with BP. And then you have the additional impacts of increasing production. As we said in the past, you can sort of -- you can add at least another 50% to the FPSO, the current throughput that's been supplied to the LNG vessel for domestic gas. So that additional volume is going to have a significant impact on the unit cost because it comes with no additional cost. So I think the -- as we said in the remarks, the big agenda now, and it's an agenda that's deeply aligned with both countries in Mauritania and Senegal is to push on with the supply of the domestic gas. We saw the progress, I think some pictures in the deck that showed the progress in Senegal in terms of getting pipe in the ground, connection to the first offtake, which will be the Gandon power station. And then in Mauritania, the work that they've done with a Saudi developer for their power station. So that volumetric effect just simply then impacts the per unit cost. So I think we've got continuing growth in margin in GTA through that Phase 1 expansion. And I think we're aligned with the government in both countries in terms of how we deliver that. Operator: Your next question comes from the line of David Round with Stifel. David Round: Jubilee, I mean, the production side there has been really good. I guess I wouldn't mind if you could just touch on, please, and whether previous decline assumptions may change if that's been going well. Andrew Inglis: Yes. No, thanks, David. I think it's a really good question. Clearly, our focus through the first half of the year has been on the drilling program. And I think we've seen the impact of data, the ability to influence then the selection of good wells. And I think that selection then with good operator drilling performance has led to the current levels that we're experiencing. So I think big check in the box there. I think when it comes to water injection, I'd say this is an area where there is an opportunity to do better. We did well in the first quarter. Voidage replacement around 130%, which is sort of what you need. That's what sort of world-class performance looks like. It hasn't been as strong in 2Q. It's been around about half that level, actually around 65%. Some of it was scheduled maintenance. Some of it was availability of the water injection pumps. So we're working really hard with the operator now to focus on that issue. And it's just an operational issue. It's not a reservoir issue. It's just simply about keeping the water injection pumps up and with high availability. So we've had high availability on the oil side. We need to sort of match that on the water side. So that's the focus in 3Q and 4Q and then into the beginning of next year as we take a time out on the drilling program and then planned restart is around the middle of the year. We're making good progress on the rig contract. So I think we're clear about what we need to do. And the back end of the year will be a strong focus on the water injection. David Round: Okay. In terms of the forward program and the program you're looking at next year, I mean, is it too early to think about how many of those might be injectors versus producers? Andrew Inglis: Yes. Yes, it's a little early, David. Without being overly simplistic, I think we've say in the core of the field, we've got pretty good injection support. I'm talking more broadly now. And the issue is not so much about needing new injection probably more around getting the water in the ground actually. As we move out of some of the areas where the well density isn't as high, let's say, as you move back into the eastern side of the field, JSE, for instance, it will be more about pairing injectors and producers. So if you sort of [indiscernible] through -- sort of you can look through all of that, there'll be a bias. I think the bias is still going to be more towards injection -- sorry, more towards producers over injectors. But actually, the injection well that we're drilling at the tail end of this program, that's actually an injector will provide some support for this year. But actually, it's to support a future producer, okay? So you're sort of getting the right balance there between injection and production. But I think the bias will still be that it will be more heavily weighted to producers. Operator: Your next question comes from the line of Mark Wilson with Jefferies. Mark Wilson: I'd like to ask a question about the U.S. Gulf, if I may start there. Great to see Tiberius farming completed. One well tieback initially, you speak to 100 million barrels that reminds me of Winterfell. I imagine that 100 million is kind of an area region. So I'm just wondering what you're targeting with that one well tieback in terms of recoverable reserves at Tiberius. And then same sort of question for Trailblazer, great exploration opportunity. Just wondering what Kosmos' net share would be of that $200 million target? That's my first question. Neal Shah: Mark. Yes, so with Tiberius, yes, I mean, the 100 million barrels is sort of within Tiberius, and then Logan would be sort of additional beyond that. But there are sort of, call it, 3 fault blocks in Tiberius, which we've penetrated one. But the first well is targeting around, call it, 40 million barrels recovery. And again, we've talked about sort of $10 F&D, which is sort of a $400-ish million slightly gross development cost all in. So that sort of squares. But once the infrastructure is in place, that includes sort of the tie-in infrastructure. So once that's in place, then we can add the additional wells and get much production impact much sooner. And so we'll sort of phase that on post first oil. If I sort of take that to Trailblazer similar sort of -- that's a larger prospect. It's about 200 million barrels gross in terms of prospectivity. And we own about 1/3 -- a little under 1/3, 30% of the projects are next to us, a little under around 60 million barrels. And so again, a pretty material prospect for us. And again, I think you'd expect it to be a multi-well development all in sort of if successful. But in a similar sort of Kosmos fashion, the idea would be bring -- keep the first well on as a development well, bring that online to put in the infrastructure and then bring in additional producers once it's tied back. Mark Wilson: That's really appreciated, Neal. If I could move on to GTA because excellent to see the pipe on its way, good news for the domestic power. I'm just wondering what flexibility you have on the pricing for that or if that's part of the actual license agreements? That would be the first point. And then secondly, a lot going on at BP. So just wondering if there's any discussions over further phases at GTA? Andrew Inglis: Yes. So the agreements we have in place, we get the equivalent netback of the F.O.B less the LNG processing fee because you're not converting it into LNG, you're just delivering it as domestic gas. So it's the F.O.B equivalent for domestic supply. Neal Shah: And that's been agreed for Phase 1 in terms of the gas price, Mark. Andrew Inglis: So the point about that is the additional volume comes with the same economics as the LNG export. And then, yes, look, there's a lot going on in BP as you say. So obviously, I don't have any insight into that or can't comment on what their sort of corporate objectives are, whether GTA is core and non-core. I think for us, the most important thing at the moment is to sort of focus on the development of the asset, and we continue to work hard with BP on that and aligned with states around the delivery of the domestic gas, where, as you say, there's real progress being made. Mark Wilson: Okay. That's great. And obviously, the main one is the net debt coming down, which is, yes, great to see as has been commented by others. And RBL refinanced in the second quarter. And Neal, you also mentioned looking to, I think you said, repay the 2028 bonds, that's the $400 million. Did that's what I understood correct? Or is that a refinance of those targeted this year? Neal Shah: Yes. No, good question, Mark. Yes. So again, I think like I was trying to refer to say earlier, but this year, we've tried to be really sort of methodical around how we sort of address the financing issues and the maturity schedule. And like I said, we've gone through the '26s earlier this year, we paid the '27s with the Nordic bond, are working on the RBL at the moment, which has matures in '29, but starts amortizing in '27. And then once that's out of the way, the next maturity for us to address is the '28. And again, I think it's been good to see sort of the yields on the bonds sort of return closer to normal. We'd expect as we continue to address the financial risk, get the debt down, we'll see a continued improvement in yields. And so it's something we're continuing to evaluate in terms of whether it's a repayment or a from -- sort of from an opportunistic repurchase or just potentially refinancing those later in the year. So again, it's something on the agenda. And as the market and the yields evolve, we'll continue to keep an eye on that. Operator: Your next question comes from the line of Christoffer Bachke with Clarksons Securities. Christoffer Bachke: Christoffer from Clarksons here. So firstly, congratulations on another very strong quarter. I mean, operational executions continue to impress, so that's great to see. My first question is related to Jubilee and especially with the Jubilee production now tracking at or above the 90,000 barrels per day. How should we think about the sustainable production potential of Jubilee over the next quarters? And could this potentially influence the scope or pace of the 2027, '28 drilling campaign? So that's my first. Andrew Inglis: Yes. No, Christoffer, that's sort of good question. Look, when you look at Jubilee, I think if you look at the '25-'26 program. It's been a very successful program. It's certainly been supported by the new 4D, and I think that's enabled us to see a lot more opportunity in the field. I think it is actually worth commenting on, if you look at that overall program with payback of less than 6 months. So you want to get back to drilling as soon as possible. There are some logistical issues on that in terms of ordering long lead equipment, wellheads, et cetera. But we're working with the operator to make sure we get back to drilling as sort of as soon as practicable. And that date is around the middle of next year and we're pushing maybe to get there a little earlier, but I think that's sort of the current target. And then it's a fulsome program. Our objective is to drill up to 10 wells. Not only will we have the fully processed 4D at that point, but we'll also have early product from the OBN, which I think is going to be another step change in our ability to properly describe the opportunity set, potentially some of the things that have been harder to image that are deeper. So I think for us, we see ongoing opportunity. And as we've said, I think, consistently over probably the last 10 quarters, you need to do sort of 3 things to deliver that potential. You've got to get back to regular drilling, which I've talked about. You have to deliver high FPSO uptime, which the operator has done so far in this year. And you have to get the water injection operating, so you get water in the ground. So as we look forward, we will see some decline clearly. There'll be a little bit of mitigation from the last water injection well. That's primarily to support a future well in '27. So we will see natural decline from the end of the program which finishes at the end of this quarter through the fourth quarter, first quarter, second quarter and then back to drilling. Christoffer Bachke: And also staying on Jubilee and the full year guidance, you have highlighted that production is trending towards the upper end of guidance and you also had another well coming online. So assuming current operational performance continues, should we think about ending the year towards the upper end of the production range? And would that potentially allow you to exceed your target of 20% net debt reduction for 2026? Andrew Inglis: Again, a really good question, and that's obviously our objective, yes. We're working again. It's about eyes down focus on the operational delivery. Again, as I said, it's about picking the right wells. It's about then drilling them. It's about the delivery then of the uptime. And I think the area that's really important now is that water injection availability. But I think when you look at the overall suite of options within Kosmos. It's obviously, GTA has been trending to the upper end of its guidance in terms of the number of cargos. Despite Winterfell 5, we've had strong performance in the Gulf of America, particularly from Kodiak and Odd Job. So you put all that together, Christoffer. And yes, are we confident we're going to hit our numbers? It's about a managed outlook across all of those production opportunities. And then finally, it's about managing the cost base. We haven't talked about that much on the call. But this is a significant reduction in costs we've achieved in the first half of the year delivering the portfolio optimizations with the sale, the TEN FPSO repurchase, those are structural changes that are enduring. So that, together with rigorous capital management, and again, I think we've talked about the Tiberius farm down, but then that again allows us to manage the CapEx through the back end of '26 and into '27. So in combination, the 3 things, production performance, cost reduction and capital management then underpin that debt reduction target. Christoffer Bachke: Just the last one briefly mentioned it already, but you are in ongoing discussions with the lending banks and now also commence that and you expect the amended RBL to be completed during the fourth quarter. Could you elaborate a bit on how those discussions are progressing? And once the RBL is completed, should investors expect you to kind of turn your attention towards addressing the 2028? Or are those kind of two processes going in parallel? Neal Shah: Yes. I think that's the right way to think about it, Christoffer, in terms of just the series of events. Yes, so we've kicked off the RBL process. And just for those of you who haven't been -- this is the fifth time we get through an extension process on the RBL with a lot of the same banks who've been in there since I joined the company in 2011. So yes, it's a well sort of established program or process, we started exchanging term sheets in terms of what that looks like. So we need to sort of finalize that. And clearly, on the back of improved Jubilee performance in a constructive commodity price environment, we're well placed to sort of execute that here relatively quickly. But yes, I mean, I think as we get that complete, then like I said, the next maturity on the list is the '28, and that gives us a bit over 3 years of runway without any maturities to manage. Operator: [Operator Instructions] Your next question comes from Stella Cridge with Barclays. Stella Cridge: Sorry to add a couple more questions on the refinancing side. Just wondered if you're still targeting 2032 and '33 as potential maturity dates of the new RBL. And I was just wondering regarding the liquidity test that you would usually -- if you'd be tested on the '28 bonds, how does that fit into the next few months in the RBL negotiation? Do you get a waiver? Or is that just kind of rolled into the whole process? That would be great. Neal Shah: Yes. So yes, I mean, the chart on -- I forgot what slide. Andrew Inglis: Slide 8. Neal Shah: Slide 8 is clearly illustrative but in line with what we're working live. And so the extension -- the idea is to get sort of the final maturity beyond the existing bonds. And again, we normally do it in the sort of 6-, 7-year time frame. So that's kind of when the final maturity base would be, but it generally starts amortizing after 3 years. So the shape of the RBL won't be dissimilar to the shape that it's always in. And that essentially puts a sort of refinancing plan in sort of 3 years down the line to force another extension. So that's sort of, again, business as usual from that perspective. And then same thing with your question around sort of liquidity test along with sort of redetermination. And so essentially, we'll sort of all boil that up into the refinancing. And so we probably won't have a sort of formal full redetermination because generally, again, we'll go into a little detail, but the RBL is always limited by the loan life. And so as you pick the loan life, you have full access to the facility, which keeps all the liquidity available to the company. So we'll do those sort of contemporaneously with the refi. Stella Cridge: That's great. And if you don't mind me asking on Tiberius, could you just remind us how much gross production would come from that first well? And I noticed you also mentioned a potential second well, it would be great to hear about that as well. Neal Shah: Yes. Again, every well will be different. But the expectation is, again, I think a good modeling assumption there is around 10,000 barrels a day gross per well. And again, we have up to 30,000 barrels a day of capacity at Lucius and the facility. And so again, the ability to accommodate multiple wells over time. Operator: Since there are no further questions at this time, I would like to bring the call to a close. Thanks to everyone joining today. You may now disconnect your lines at this time and thank you for your participation. Before you buy stock in Kosmos Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kosmos Energy wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Kosmos Energy (KOS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Kosmos Energy’s second quarter was marked by a mix of operational progress and lingering production challenges, as reflected in the market’s negative reaction to the results. While management pointed to strong performance from the Jubilee field and cost reductions driven by asset sales and efficiency initiatives, oil production declined year over year. CEO Andrew Inglis highlighted that, “J76, in particular, came in at the top end of our expectations and based on performance so far, is the best well we’ve seen at Jubilee in over a decade.” However, difficulties at Winterfell and reduced production following the Equatorial Guinea asset sale weighed on overall output. Is now the time to buy KOS? Find out in our full research report (it’s free). Revenue: $607.6 million vs analyst estimates of $473.4 million (54.6% year-on-year growth, 28.4% beat) Adjusted EPS: $0.11 vs analyst estimates of $0.09 (27.9% beat) Adjusted EBITDA: $415.1 million vs analyst estimates of $269.5 million (68.3% margin, 54% beat) Operating Margin: 48.5%, up from -6.1% in the same quarter last year Oil production: down -14.8% year on year Market Capitalization: $1.48 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Charles Meade (Johnson Rice) asked for details on the J76 well’s performance and its implications for remaining opportunities at Jubilee. CEO Andrew Inglis explained that the well targeted previously unswept oil and deeper horizons, revealing additional resource potential. Charles Meade (Johnson Rice) inquired about the value achieved in the Tiberius project farm-down. CFO Neal Shah clarified the valuation, stating the gross value was around $250 million with a mix of cash, future carry, and milestone payments. Bob Brackett (Bernstein Research) sought clarification on integrating the Logan discovery into Tiberius. Shah described plans to connect Logan as an add-on to the Tiberius system, with potential for additional recovery from the area. David Round (Stifel) questioned whether strong Jubilee production might alter decline assumptions. Inglis noted that while drilling performance has improved, water injection needs operational attention to sustain future output. Mark Wilson (Jefferies) pressed for specifics on recoverable reserves at Tiberius and Trailblazer, and asked about net share and development plans. Shah gave detailed breakdowns of targeted volumes and Kosmos’ stake in each project. In the coming quarters, the StockStory team will monitor (1) the effectiveness of new drilling and water injection programs at Jubilee, (2) progress in reducing unit operating costs across the portfolio, and (3) successful refinancing of the reserve-based lending facility and management of upcoming bond maturities. Execution on GTA expansion and continued asset optimization will also be important signposts. Kosmos Energy currently trades at $2.48, down from $2.69 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes strong first-half performance to an 18% year-on-year production increase., driven by the Jubilee ramp-up in Ghana and consistent delivery at GTA. The company achieved a structural reduction in operating costs by exiting high-cost barrels in Equatorial Guinea and repurchasing the TEN FPSO, targeting a 35% reduction in OpEx per barrel for 2026. Jubilee's outperformance is credited to the integration of 4D seismic data, which enabled the identification of high-value, unswept oil in the core of the field. Strategic portfolio management was highlighted by the Tiberius farm-down, which management believes validates asset value while minimizing capital exposure through 2027. The GTA project is transitioning from a construction phase to an operational and domestic expansion phase, with a focus on maximizing margins through increased throughput for local power generation. Management emphasized a 'methodical' approach to the balance sheet, using free cash flow and asset proceeds to reduce net debt by 15% in the first half of the year. The company is targeting a 20% absolute reduction in net debt by year-end 2026, with leverage expected to fall toward 2x. Future drilling at Jubilee, planned for mid-2027, will utilize new OBN seismic data to target deeper horizons and bypassed oil across up to 10 wells. GTA production is expected to experience seasonal fluctuations due to warmer summer temperatures affecting LNG cooling, with volumes picking up as cooler weather returns. The Tiberius development is sequenced for first oil in the second half of 2028, with the farm-in carry expected to cover all capital requirements through the first half of 2027. Management plans to finalize the RBL amendment and extension in the fourth quarter of 2026, targeting a facility size of approximately $1.2 billion. The Winterfell #5 well was temporarily abandoned due to casing issues; management has paused activity to resolve drilling performance concerns before committing further capital. Water injection at Jubilee fell to 65% voidage replacement in Q2 due to pump availability issues, though management clarified this is an operational challenge rather than a reservoir issue. The Equatorial Guinea asset sale completed in June resulted in a production guidance adjustment of approximately 2,500 barrels of oil equivalent per day for the second half of the year. The GTA onshore pipeline route was diverted to avoid the Middle East and is expected to arrive in Senegal in the coming days after taking a longer route than initially planned. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management described J-76 as the best well in a decade, proving that 4D seismic can identify significant unswept oil in core areas and deeper horizons. The success confirms the strategy of using advanced imaging to high-grade future well locations for the 2027-2028 campaign. The transaction implies a gross asset valuation of approximately $250 million as of January 1, 2026. The deal includes $45 million in total consideration through upfront cash, a capital carry, and future milestone payments, effectively funding Kosmos' share of development through mid-2027. Management expressed disappointment with drilling performance on routine operations despite the presence of significant reserves. A pause in activity is being enforced to ensure the operator resolves technical issues before additional capital is deployed. Following the RBL extension, management intends to address the 2028 notes through either opportunistic repurchases or refinancing later in the year. The goal is to clear all near-term maturities to provide a three-year runway without debt concerns.

Interested in Kosmos Energy Ltd.? Here are five stocks we like better. Production and costs improved: First-half production rose 18% year over year, while absolute operating costs fell 24%. New Jubilee wells in Ghana and the Greater Tortue Ahmeyim LNG ramp-up supported second-quarter production growth of approximately 12%. Growth projects advanced: Jubilee production is expected to exceed 90,000 barrels per day once the J50 well starts, while GTA delivered 18.5 LNG cargoes in the first half and maintained its annual guidance of 32–36 cargoes. Kosmos also progressed its Tiberius farm-down, with first oil still targeted for the second half of 2028. Debt reduction continued: Kosmos repaid about $420 million of debt in the first half and ended the quarter with more than $500 million in liquidity. The company is targeting a roughly 20% net-debt reduction in 2026 and plans to amend and extend its reserve-based lending facility in the fourth quarter. Kosmos Energy (NYSE:KOS) reported higher second-quarter production, lower operating costs and continued balance-sheet progress as new wells in Ghana and the ramp-up of its Greater Tortue Ahmeyim LNG project supported first-half performance. Chairman and Chief Executive Officer Andy Inglis said the company had made progress on its four priorities for 2026: increasing production, reducing costs, lowering debt and advancing its growth portfolio while limiting capital spending. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Production in the first half was up 18% from the same period of 2025, while absolute operating costs declined 24%, Inglis said. Chief Financial Officer Neal Shah said second-quarter production was approximately 12% higher year over year, driven by new Jubilee wells and GTA's ramp-up. Absolute operating costs during the quarter were about 25% lower than a year earlier. Kosmos said its Jubilee field offshore Ghana continued to benefit from an active drilling campaign. Two producer wells, J76 and J77, began production following the company’s first-quarter report, while J50, the completion of a previously drilled well, was expected to start in the coming days. → MarketBeat Week in Review – 07/27- 07/31 With J50 online, Kosmos expects Jubilee gross production to exceed 90,000 barrels of oil per day. The company maintained its full-year Jubilee guidance of 70,000 to 80,000 barrels per day, with Inglis saying the latest well performance supported the upper end of that range. Inglis described J76 as the best Jubilee well drilled in more than a decade. He said the well identified up-dip, unswept opportunities in the core part of the field and encountered deeper horizons that could provide additional resources. → GE HealthCare Stock Climbs on Vital Diagnostics Demand The company is working with the field operators to secure a rig for a 2027-28 drilling campaign of up to 10 wells, targeted to begin around the middle of 2027. The program is expected to incorporate fully processed 4D seismic data and fast-track ocean-bottom-node seismic results. Management also identified water injection as an operational focus. Inglis said water replacement volumes were about 130% in the first quarter but fell to roughly 65% in the second quarter, partly because of planned maintenance and water-pump availability. He said the issue was operational rather than reservoir-related and would be a focus through the remainder of 2026. At the Greater Tortue Ahmeyim project offshore Mauritania and Senegal, gross LNG production in the second quarter was approximately 2.65 million tonnes per annum equivalent. The project lifted nine gross LNG cargoes during the quarter, bringing first-half cargoes to 18.5. Kosmos maintained its full-year guidance for 32 to 36 gross LNG cargoes. The company said daily LNG production is expected to be somewhat lower during the summer because warmer air and sea temperatures affect operations, with volumes expected to improve later in the year. The project also lifted one condensate cargo during the second quarter, representing about 300,000 barrels net to Kosmos. A further condensate cargo, estimated at about 400,000 barrels net to Kosmos, is expected late in the third quarter. Kosmos said it remains on track to reduce GTA operating expense per MMBtu by 50% this year and sees potential for further reductions in 2027. Inglis said increased domestic gas sales could further reduce unit costs because additional gas volumes can be processed without material added costs. In Senegal, land has been cleared for the onshore section of a pipeline intended to connect GTA gas to the 250-megawatt Gandon power station near Saint Louis. In Mauritania, the country signed a 25-year agreement with Saudi Power Company for a 230-megawatt gas-fired power plant in Nouadhibou that is expected to use GTA gas. Gulf of Mexico production was in line with Kosmos’ expectations, supported by its operated Odd Job and Kodiak fields. However, the operator of the Winterfell development temporarily abandoned the No. 5 well after encountering casing issues during drilling. Shah said Winterfell contains significant reserves and has shown good pay, but Kosmos was dissatisfied with the drilling performance and resulting additional costs. The partners have paused activity to understand and resolve the issues before committing further capital, he said. Kosmos also completed a farm-down of its Tiberius project, bringing Navitas in as a 33.33% partner. Kosmos will remain operator with a 33.34% interest, while OXY will hold the remaining 33.33% interest and operates the nearby Lucius facility. Shah said the transaction included upfront cash, a development capital carry and future milestone payments. The carry is expected to cover Kosmos’ Tiberius capital expenditures in 2026 and fund its share of development through the first half of 2027. First oil remains expected in the second half of 2028. The first Tiberius well is targeting roughly 40 million barrels of recovery, according to Shah, with production estimated at about 10,000 barrels per day gross per well. Kosmos also said Shell plans to drill the Trailblazer prospect in the first quarter of 2027 under their exploration alliance. Trailblazer is targeting about 200 million barrels of oil equivalent gross, with Kosmos holding an interest representing just under 60 million barrels, Shah said. Kosmos paid down approximately $420 million of debt in the first half through free cash flow, an equity raise and proceeds from the sale of its Equatorial Guinea assets. It ended the quarter with more than $500 million of available liquidity. The company said S&P and Fitch upgraded its rating to B-minus. Kosmos is targeting about a 20% reduction in net debt for 2026 and expects leverage to move toward two times by year-end, depending in part on commodity prices. Shah said Kosmos has started discussions with lenders to amend and extend its reserve-based lending facility, targeting completion in the fourth quarter and a facility size of about $1.2 billion. After addressing that facility, the company expects to consider options for its 2028 notes, including opportunistic repurchases or refinancing. Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities. The company's portfolio is anchored by assets in West Africa and the Gulf of Mexico. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kosmos Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

DALLAS, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS) announced today its financial and operating results for the second quarter of 2026. For the quarter, the Company generated net income of $185 million, or $0.31 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net income(1) of $68 million, or $0.11 per diluted share for the second quarter of 2026. SECOND QUARTER 2026 AND POST QUARTER END HIGHLIGHTS Net Production(2): ~71,400 barrels of oil equivalent per day (boepd), up ~12% versus second quarter 2025 Revenues: $607 million, or $86.68 per barrel of oil equivalent (boe) (excluding the impact of derivative cash settlements) Production expense: $179 million (or $25.61 per boe), a reduction of ~25% compared to second quarter 2025 Capital expenditures: $105 million Two new Jubilee wells came online late second quarter/early third quarter with the last producer of the current campaign due online imminently and expected to increase Jubilee gross production to >90,000 barrels of oil per day (bopd) Greater Tortue Ahmeyim (GTA) gross production averaged ~2.65 million tonnes per annum (mtpa) for the second quarter, with nine gross LNG cargos lifted (averaging ~2.7 mtpa in the first half of the year) Kosmos completed the sale of its interest in the Ceiba Field and Okume Complex in Equatorial Guinea Generated net cash provided by operating activities of ~$175 million and ~$89 million of free cash flow(1), supporting net debt reduction of >$400 million in the first half of the year Post quarter-end, Kosmos successfully completed the farm down of the operated Tiberius project in the Gulf of America Commenting on the Company’s second quarter 2026 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: “At the start of the year, we set four goals for 2026: increase production from our core assets; lower costs; reduce debt; and advance our high‑quality growth portfolio with minimal capital. In the first half of 2026, we have made excellent progress in each area. “In Ghana, the Jubilee drilling campaign continues to deliver strong results, with production trending toward the upper end of our guidance. At GTA, nine gross LNG cargos were lifted during the quarter, underscoring the project’s reliable contribution to our annual production outlook. In the Gulf of America, we completed a highly competitive farm-down process for Tiberius, bringing in a new partner aligned with our strategy to grow value from the asset. We also completed the sale of our Equatorial Guinea production assets, further high-grading the portfolio and concentrating capital on lower-cost, higher-return opportunities. “On the finance side of the business, we had an active first half of the year with the GTA bond and equity raise. This financial delivery, combined with our operational momentum, has resulted in improved credit ratings, which is important as we proactively manage our maturity schedule. In the second half of the year, we have commenced the RBL re-financing process and are making good progress towards achieving our ~20% debt reduction target for the year.” FINANCIAL UPDATE In April, Kosmos completed its spring reserve-based lending facility (RBL) re-determination with the borrowing base reduced to approximately $1.2 billion following the completion of the Equatorial Guinea asset sale in June. The process to re-finance the facility with our lending banks has now commenced, targeting completion by the fourth quarter. Kosmos took advantage of higher oil prices to add further hedges for 2027. The company has 3.25 million barrels of oil hedged for the remainder of 2026 with an average floor of approximately $66/barrel and a further 7.0 million barrels hedged in 2027 with a floor of approximately $67/barrel and a ceiling of approximately $84/barrel. Net capital expenditure for the second quarter of 2026 was $105 million, in line with guidance. Full year 2026 capital expenditure guidance of $350 million is unchanged. The Company generated net cash provided by operating activities of approximately $175 million and free cash flow(1) of approximately $89 million in the second quarter. Kosmos exited the quarter of 2026 with approximately $2.56 billion of net debt(1) and over $500 million of liquidity. OPERATIONAL UPDATE Production Total net production(2) in the second quarter of 2026 averaged approximately 71,400 boepd, up ~12% versus second quarter 2025. The increase was largely driven by the ramp up at GTA and new wells coming online at Jubilee. This only includes Equatorial Guinea production through June 16, 2026, the date on which the asset sale was closed, reducing second quarter production by approximately ~1,000 boepd. Sales for the second quarter of 2026 were approximately 77,000 boepd. The Company exited the quarter in a net underlift position of approximately 0.5 mmboe. Ghana Production in Ghana averaged approximately 36,300 boepd net in the second quarter of 2026, which included gas production of approximately 7,000 boepd. Two full Jubilee cargo liftings and one TEN lifting took place in the second quarter, in line with guidance. A third Jubilee cargo began lifting on the last day of the quarter and was completed on July 2, 2026. At Jubilee (38.6% working interest), oil production in the second quarter averaged approximately 72,000 bopd gross. The J76 well came online in mid-June followed by the J77 well in early July. Initial performance from these wells has been strong, in line with the high end of expectations. The J50 well, a completion of a previously drilled well, is due online in the coming days and is expected to increase Jubilee gross production to >90,000bopd. A water injection well will conclude the drilling campaign and is expected online at the end of the third quarter. The partnership is currently working to secure a rig for the 2027/28 campaign to drill up to ten wells, expected to start in mid 2027. At TEN (20.4% working interest), oil production averaged approximately 14,700 bopd gross for the second quarter, in line with expectations. Mauritania and Senegal GTA Phase 1 production averaged approximately 15,700 boepd net during the quarter, or approximately 2.65 mtpa of LNG equivalent gross, slightly lower than the first quarter primarily due to warmer seasonal temperatures as highlighted last quarter. The partnership lifted nine gross LNG cargos in the second quarter, at the upper end of guidance, bringing the total first half gross LNG cargos to 18.5. Full year guidance of 32-36 gross LNG cargos remains unchanged. One condensate cargo was lifted by Kosmos and the national oil companies of Mauritania and Senegal in the second quarter. The final condensate cargo in 2026 is expected to be lifted by Kosmos and the national oil companies of Mauritania and Senegal late in the third quarter. Lowering operating costs for GTA Phase 1 remains a priority for the partnership in 2026 with net operating costs per boe on track to fall by more than 50% year-on-year with scope for further reductions in 2027 and beyond. With Phase 1 production fully ramped up and performing well, the partnership is now focusing on future production growth through Phase 1+, which fully utilizes the existing infrastructure for sales to the domestic markets in Senegal and Mauritania, initially for power generation. Heads of terms for domestic gas sales are targeted in 2026. Senegal is constructing an onshore power plant near Saint Louis and is expected to commence construction of the gas pipeline network this quarter with pipe expected to arrive imminently from China after a longer voyage to avoid the Middle East. The pipeline will transport gas from the GTA hub terminal for domestic power generation. Mauritania has also signed a 25-year agreement with a Saudi Arabian power company, to develop, finance and operate a 230 MW gas-fired power plant in N'Diago, which plans to use gas supplied from the GTA field. Gulf of America Production in the Gulf of America averaged approximately 14,300 boepd net (~83% oil) during the second quarter, within guidance. On the Kosmos-operated Tiberius project, Kosmos and Occidental took final investment decision (FID) in March. Following FID, Kosmos successfully completed a highly competitive farm out process in July, with Navitas becoming a 33.33% partner in the project alongside Kosmos (33.34%) and Occidental (33.33%, owner/operator of the host facility). The consideration for the farm down is a mix of upfront cash, carry for future development capital expenditure, which is expected to cover Kosmos spend on the project through 2026 into mid-2027, and future milestone payments. At Winterfell, the partnership spud Winterfell-5 in April 2026. The well was temporarily abandoned in July 2026 by the operator due to issues with the production casing. The partnership is evaluating the cause of the issue in order to restore production from the fault block. As previously announced, Kosmos deepened its inventory of future opportunities for its infrastructure-led exploration (ILX) strategy in the Gulf of America, entering into a strategic alliance with Shell in the Norphlet trend earlier in the year. Shell and Kosmos have aligned interests over ten blocks in the Gulf of America to explore multiple high-potential prospects, including Trailblazer, a prospect with significant potential (~200 mmboe gross). Shell plans to begin drilling Trailblazer in the first quarter of 2027. In the event of success, Trailblazer could be tied back into Shell's nearby Appomattox platform with Kosmos designated as development operator. Equatorial Guinea Production in Equatorial Guinea averaged approximately 14,500 bopd gross and 5,100 bopd net in the second quarter through June 16, 2026. Kosmos lifted 0.4 cargos from Equatorial Guinea during the quarter in line with guidance. On June 17, 2026, Kosmos announced that it had completed the sale of its 40.375% non-operating working interest in the Ceiba Field and Okume Complex production assets to Panoro Energy. The final cash consideration on completion, post-closing adjustments, was approximately $127 million and was used to repay borrowings under the RBL. The closing adjustments reflect the cash received from the assets in the first half of 2026 to completion on June 16, 2026. Future contingent payments of up to ~$40 million are subject to certain oil price and production thresholds. Full year 2026 guidance has been updated in the table below for the sale of the Equatorial Guinea production assets in June. The mid-point of the updated production and operating cost/boe ranges for FY26 reflect the continued strong performance of the portfolio post the Equatorial Guinea sale. (1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure. Net debt excludes $73.2 million TEN FPSO finance lease liability. For purposes of the debt cover ratio calculation under the RBL Facility, the finance lease liability is included in net debt.(2) Production means net entitlement volumes. In Ghana, Equatorial Guinea, and Mauritania and Senegal this means those volumes net to Kosmos' working interest or participating interest and net of royalty or production sharing contract effect. In the Gulf of America, this means those volumes net to Kosmos' working interest and net of royalty. Conference Call and Webcast Information Kosmos will host a conference call and webcast to discuss second quarter 2026 financial and operating results today, August 3, 2026, at 10:00 a.m. Central time (11:00 a.m. Eastern time). The live webcast of the event can be accessed on the Investors page of Kosmos’ website at http://investors.kosmosenergy.com/investor-events. The dial-in telephone number for the call is +1-800-715-9871. Callers in the United Kingdom should call 0800 260 6466. Callers outside the United States should dial +1-646-307-1963. A replay of the webcast will be available on the Investors page of Kosmos’ website for approximately 90 days following the event. About Kosmos Energy Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com. Non-GAAP Financial Measures EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines EBITDAX as Net income (loss) plus (i) exploration expense, (ii) depletion, depreciation and amortization expense, (iii) equity based compensation expense, (iv) unrealized (gain) loss on commodity derivatives (realized losses are deducted and realized gains are added back), (v) (gain) loss on sale of oil and gas properties, (vi) interest (income) expense, (vii) income taxes, (viii) debt modifications and extinguishments, (ix) doubtful accounts expense and (x) similar other material items which management believes affect the comparability of operating results. The Company defines Adjusted net income (loss) as Net income (loss) adjusted for certain items that impact the comparability of results. The Company defines free cash flow as net cash provided by operating activities less Oil and gas assets, Other property, and certain other items that may affect the comparability of results and excludes non-recurring activity such as acquisitions, divestitures and National Oil Company ("NOC") financing. NOC financing refers to the amounts funded by Kosmos under the Carry Advance Agreements that the Company has in place with the national oil companies of each of Mauritania and Senegal related to the financing of the respective national oil companies’ share of certain development costs at Greater Tortue Ahmeyim. The Company defines net debt as total long-term debt less cash and cash equivalents and total restricted cash. We believe that EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, Net debt and other similar measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the oil and gas sector and will provide investors with a useful tool for assessing the comparability between periods, among securities analysts, as well as company by company. EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt as presented by us may not be comparable to similarly titled measures of other companies. This release also contains certain forward-looking non-GAAP financial measures, including free cash flow. Due to the forward-looking nature of the aforementioned non-GAAP financial measures, management cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Amounts excluded from these non-GAAP measures in future periods could be significant. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. _____________ (1)   Cash settlements on commodity hedges were $(105.4) million and $11.4 million for the three months ended June 30, 2026 and 2025, respectively, and $(135.7) million and $9.7 million for the six months ended June 30, 2026 and 2025, respectively. _____________ (1)   Adjustment to present Pro Forma EBITDAX for the impact to operational expense for the periods presented resulting from executing the TEN FPSO finance lease transaction.(2)   Adjustment to present Pro Forma EBITDAX for the impact of the oil revenues and expenses and results of operations of the sold interest in the Ceiba Field and Okume Complex production assets located in Block G offshore Equatorial Guinea to Panoro Energy ASA, for the respective period. The transaction closed on June 16, 2026. The following table presents our net debt as of June 30, 2026 and December 31, 2025: _____________ (1)   Excludes $73.2 million TEN FPSO finance lease liability. _____________ (1)   Income tax expense is calculated at the statutory rate in which such item(s) reside. Statutory rates for the U.S., Equatorial Guinea and Ghana are 21%, 25% and 35%, respectively. _____________ (1)   Includes $65.8 million and $69.1 million for the three months ended June 30, 2026 and 2025, respectively, and $121.2 million and $127.2 million for the six months ended June 30, 2026 and 2025, respectively of oil and gas production costs related to the LNG production at the GTA Phase 1 project in Mauritania and Senegal. GTA Phase 1 project LNG sales volumes for the three months ended June 30, 2026 and 2025 were 1.573 MMBoe and 0.5 MMBoe, respectively, and for the six months ended June 30, 2026 and 2025 were 2.930 MMBoe and 0.6 MMBoe, respectively. First LNG was achieved in February 2025 and the first LNG cargo was successfully completed in April 2025. Kosmos was underlifted by approximately 0.5 million barrels of oil equivalent (mmboe) as of June 30, 2026. _____________ (1)   Please see the Company’s filed 10-Q for additional disclosure on hedging material. Includes hedging position as of June 30, 2026 and hedges put in place through filing date.(2)   “Floor” represents floor price for collars and strike price for purchased puts. Note: Excludes 0.5 MMBbls of Dated Brent sold calls with a strike price of $100.00 per Bbl and 1.0 MMBbls of Dated Brent sold puts with a strike price of $55.00 per Bbl in 2026. Excludes 0.8 MMBbls of WTI sold puts with a strike price of $50.00 per Bbl in 2026. _____________ Note: Ghana / Equatorial Guinea / Mauritania & Senegal revenue calculated by number of cargos. Guidance excludes Equatorial Guinea from June 17, 2026 following the sale of the assets. (1)   3Q 2026 net cargo forecast – Ghana: 2.75 cargos. FY 2026 Ghana: 12-13 cargos. Average cargo sizes 950,000 barrels of oil.(2)   3Q 2026 gross cargo forecast - Mauritania & Senegal: 8 cargos. FY 2026: 32-36 cargos. Average cargo size ~170,000 m3 with Kosmos NRI of ~24%. Kosmos expects 0.4 net condensate cargos in 3Q26(3)   Gulf of America Production: 3Q 2026 forecast 13,000 - 15,000 boe per day. FY 2026: 14,000-16,000 boe per day. Oil/Gas/NGL split for 2026: ~83%/~10%/~7%.(4)   Excludes leasehold impairments and dry hole costs. Source: Kosmos Energy Ltd. Investor RelationsJamie Buckland+44 (0) 203 954 [email protected] Media RelationsThomas Golembeski [email protected]

DALLAS, July 07, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy (NYSE/LSE: KOS) announced today the following schedule for its second quarter 2026 results: Earnings Release: Monday, August 3, 2026, pre-UK market open via Notified, Regulatory News Service, and the Company’s website at www.kosmosenergy.com. Conference Call: Monday, August 3, 2026, at 11:00 a.m. ET. The call will be available via telephone and webcast. Dial-in telephone numbers:Toll Free: 1-800-715-9871Toll/International: 1-646-307-1963UK Toll Free: 0800 260 6466 Webcast: investors.kosmosenergy.com Webcast Conference Call Replay: A replay of the webcast will be available at investors.kosmosenergy.com for approximately 90 days following the event. About Kosmos Energy Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. CONTACT: Investor RelationsJamie Buckland+44 (0) 203 954 [email protected] Media RelationsThomas Golembeski [email protected]