Kosmos Energy stock sinks on third quarter earnings, revenue miss

Investing.com -- Kosmos Energy reported third-quarter results that fell short of analyst expectations, with shares tumbling more than 10% in premarket trading following the announcement.

The energy company posted adjusted earnings per share of $0.06, missing the analyst consensus of $0.09. Revenue reached $409.88 million, below the $426.93 million estimate and representing a decline from the prior year period. The company reported a net loss of $43 million, or $0.07 per diluted share, for the quarter.

Net production averaged approximately 69,200 barrels of oil equivalent per day, up 6% YoY compared to the third quarter of 2025. Production expenses fell 31% in absolute terms to $102 million, or $17.72 per barrel of oil equivalent, compared to the same period last year.

"Kosmos continued to make meaningful progress during the third quarter against the four objectives we established at the beginning of the year: increase production, lower costs, reduce debt and advance our quality growth opportunities," said Chairman and Chief Executive Officer Andrew G. Inglis.

The company generated $164 million in net cash from operating activities and approximately $90 million in free cash flow during the quarter, marking three consecutive quarters of positive free cash flow. Kosmos reduced net debt by over $500 million through the end of the third quarter and remains on track to achieve its 20% debt reduction target for 2026.

Capital expenditures totaled $85 million for the quarter, in line with guidance. The company maintained its full year 2026 capital expenditure guidance of approximately $350 million.

Kosmos completed its Jubilee 2025/26 drilling campaign with seven wells successfully drilled and finished the $1.2 billion reserve-based lending facility amendment and extension in October.

Original Article

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