10-Q · May 5, 2026
Kosmos Energy reported disappointing Q1 2026 results, with revenues of $370.9 million, falling short of expectations of $407 million, and an adjusted EPS of -$0.07, compared to a consensus of $0.02. Despite the revenue…
Earnings analysis · 10-Q
KOS earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Kosmos delivered a strong Q2 reversal: revenue and other income rose to $617.035 million from $393.518 million, while GAAP diluted EPS improved to $0.31 from a $0.18 loss a year earlier and a $0.45 loss in Q1. Ghana and…
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Kosmos delivered a strong Q2 reversal: revenue and other income rose to $617.035 million from $393.518 million, while GAAP diluted EPS improved to $0.31 from a $0.18 loss a year earlier and a $0.45 loss in Q1. Ghana and GTA drove growth, and lower production costs expanded operating margin to 47.8% while six-month operating cash flow increased to $281.566 million. The outlook retains approximately $350 million of 2026 capital spending, but Winterfell disruptions, significant debt obligations, and hedge-related cash outflows remain important counterweights.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.31
What stood out
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Revenue and EPS sharply improved
Q2 total revenue and other income rose $223.517 million year over year to $617.035 million; oil-and-gas revenue increased $214.618 million to $607.253 million. Diluted GAAP EPS improved to $0.31 from a $0.18 loss in Q2 2025 and a $0.45 loss in Q1 2026.
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Operating leverage drove margin expansion
Operating margin expanded to 47.8% from negative 6.3% in Q2 2025 and 19.7% in Q1 2026, as production costs fell $63.689 million year over year to $179.429 million while revenue increased.
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Ghana and GTA powered segment growth
Ghana was the largest growth driver, with revenue up $151.889 million year over year to $356.595 million. Mauritania/Senegal revenue increased $71.819 million to $92.058 million as GTA production averaged 15,700 net Boepd and lifted nine gross LNG cargos.
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Operating cash flow more than doubled
Six-month operating cash flow increased to $281.566 million from $126.280 million, supported by higher Jubilee and GTA volumes, higher realized prices, and lower operating costs. Cash, equivalents and restricted cash rose $38.487 million in the first half to $156.231 million.
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Liquidity and debt profile improved
Debt principal declined $380.598 million from year-end to $2.720 billion, and net debt declined $419.085 million to $2.563 billion. Facility availability increased to $440.220 million from $150.000 million.
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Development milestones remain on track
Management expects Ghana’s final producer well in the 2026 campaign to come online in the coming days and a water injector around the end of Q3 2026; Tiberius first oil remains targeted for the second half of 2028.
What to watch
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Winterfell outages pose production risk
Winterfell-5 was temporarily abandoned in July 2026 because of production-casing issues, while Winterfell-2 was shut in during April 2026 pending intervention. Gulf of America Q2 production averaged 14,300 net Boepd.
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Leverage and refinancing requirements remain
Total debt remained substantial at $2.720 billion, with $304.848 million of scheduled principal repayments in 2027 and $718.857 million in 2028. The Facility covenant returns to a 3.50x debt-cover ratio after the temporary 4.50x and 4.25x thresholds.
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Hedging created substantial cash outflow
Hedge cash settlements were an outflow of $198.684 million in the first half, including $135.7 million on commodity hedges. Open commodity derivatives were a $13.111 million net liability at June 30, 2026.
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Equatorial Guinea sale reduces future output
Equatorial Guinea revenue declined $17.429 million year over year to $47.161 million in Q2, and Kosmos completed the sale of its 40.4% Block G interest for final cash consideration of approximately $127.0 million. The sale removes that production contribution going forward.
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No formal risk-factor update; LNG commitment
The filing states there were no material changes to risk factors from the 2025 Form 10-K. However, the company now has a minimum annual GTA LNG delivery commitment of 127,951,000 MMBtu, or approximately 2.45 million tonnes per annum, subject to potential shortfall credits or payments.
Management's outlook
No numeric revenue or EPS outlook was provided in the 10-Q. Management estimates FY2026 capital spending of around $350 million, including approximately $290 million for Ghana/Gulf of America maintenance and infill activity and approximately $60 million for Gulf of America and Mauritania/Senegal development.
Earlier filings 4
10-K · March 2, 2026
Kosmos presents a clear strategy to maximize producing assets and pursue infrastructure‑led, lower‑cost exploration across Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America, and highlights…
10-Q · November 4, 2025
Kosmos reported Q3 2025 revenue of $311,229,000 and GAAP diluted loss per share of $(0.26), with income (loss) before income taxes of $(106,472,000). Revenue and segment sales were down materially year-over-year (Q3…
10-Q · August 4, 2025
Kosmos reported Q2 2025 revenues of $393,518,000, down from $450,936,000 a year earlier, and swung to a net loss of $87,740,000 (diluted loss per share $0.18) versus net income of $59,770,000 (diluted EPS $0.12) in Q2…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.