Kosmos Energy (NYSE:KOS) posted a net loss of $88 million for the second quarter of 2025, significantly wider than analyst forecasts, prompting the company to lower its production and capital spending projections for the full year.
Adjusted figures showed a net loss of $93 million, also missing the anticipated $43 million loss. Despite the earnings miss, revenue totaled $394 million and EBITDAX reached $149 million, both close to market expectations.
Production averaged 63,500 barrels of oil equivalent per day (boe/d) in Q2, a 5% increase from the previous quarter but falling short of the guidance range of 66,000 to 72,000 boe/d. The shortfall was largely due to delays in ramping up output at the Greater Tortue Ahmeyim (GTA) facility and lower production levels at the Jubilee field. Sales volumes averaged 73,200 boe/d, with realized prices excluding derivative settlements around $58.90 per barrel.
Kosmos’ net debt held steady at $2.85 billion, yet leverage increased to 3.85 times from 3.3 times in the prior quarter, exceeding the company’s debt covenant threshold of 3.5 times.
Reflecting these challenges, Kosmos trimmed its 2025 production forecast to a range of 65,000–70,000 boe/d, down 10% from the previous outlook of 70,000–80,000 boe/d. Capital expenditure guidance was also lowered to $350 million from an earlier target of up to $400 million.
Jefferies analyst Mark Wilson noted that while the earnings miss and lowered guidance may weigh on the stock, the company’s reduction in capex by $50 million signals disciplined spending aligned with its earlier intentions.
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