Kosmos Energy on Monday released its financial outlook for 2026 and lowered its expected exploration spending to a range of $10 million to $30 million, a figure that sits well below the Bloomberg Consensus forecast of $48 million.
The company provided production guidance for the year of 70,000 to 78,000 barrels of oil equivalent per day and estimated capital expenditure for 2026 at approximately $350 million. The capex level is consistent with 2025 after adjusting for the TEN FPSO purchase, the company said, and it plans to direct about two-thirds of that spend to drilling programs in the Jubilee area.
On the outlook for operational performance, Kosmos stated, "With both of these key assets delivering as anticipated, we expect 2026 production growth of around 15% year-on-year."
In its fourth-quarter reporting, Kosmos recorded an adjusted loss per share of $0.16 compared with an adjusted loss of $0.03 in the same quarter a year earlier. Total revenues and other income for the period fell 25% year-over-year to $296.5 million, below the estimate of $315.8 million.
Sales volumes in the quarter were 5.79 million barrels of oil equivalent, a decline of 4.2% from the prior-year period. By region, average production in Ghana was 31,100 barrels of oil equivalent per day, down 19% versus the prior year. Production in the US Gulf of Mexico averaged 16,900 barrels of oil equivalent per day, a 7.1% decline and slightly under the estimate of 17,239. Production in Equatorial Guinea averaged 16,200 barrels per day, down 43% year-over-year.
Exploration expenses in the quarter surged 94% year-over-year to $154.9 million, substantially higher than the estimate of $12.2 million. Cash from operating activities fell sharply, dropping 80% to $35.3 million, compared with the estimate of $97.9 million. Ebitdax decreased 41% year-over-year to $136.2 million, missing the consensus estimate of $167 million.
The company reported an adjusted net loss of $77.6 million for the quarter, widening from a loss of $15.6 million in the prior-year period and close to the estimated loss of $76.9 million. Net debt rose 9.9% year-over-year to $2.98 billion, slightly above the estimate of $2.9 billion.
Kosmos reiterated its balance sheet objective, stating, "In 2026, we are targeting at least 10% debt reduction by year-end."
These figures frame a mixed picture: materially lower planned exploration spending and an explicit capex allocation toward Jubilee drilling sit alongside quarterly operational declines, compressed cash flow and increased net debt. The company has provided both numeric targets and regional production detail that investors and market participants can use to monitor execution against its 2026 plan.