Kosmos Energy (NYSE:KOS) released its 2026 outlook on Monday, forecasting exploration expenditures of between $10 million and $30 million — well below the Bloomberg consensus estimate of $48 million.
The company expects annual production to average between 70,000 and 78,000 barrels of oil equivalent per day. Capital spending for 2026 is projected at approximately $350 million, broadly in line with 2025 levels when adjusted for the TEN FPSO acquisition, with roughly two-thirds of investment directed toward drilling activity at the Jubilee field.
“With both of these key assets delivering as anticipated, we expect 2026 production growth of around 15% year-on-year,” the company stated.
For the fourth quarter, Kosmos reported an adjusted loss of 16 cents per share, compared with a 3.0-cent loss a year earlier. Total revenues and other income fell 25% year over year to $296.5 million, below analyst expectations of $315.8 million.
Sales volumes totaled 5.79 million barrels of oil equivalent, representing a 4.2% decline from the prior year. Production in Ghana averaged 31,100 barrels of oil equivalent per day, down 19% year over year. Output in the U.S. Gulf of Mexico averaged 16,900 barrels per day, a 7.1% decrease and slightly below estimates of 17,239 barrels per day, while production in Equatorial Guinea dropped 43% year over year to 16,200 barrels per day.
Exploration spending rose sharply, increasing 94% year over year to $154.9 million and significantly exceeding expectations of $12.2 million. Cash generated from operating activities fell 80% to $35.3 million, also missing forecasts of $97.9 million.
EBITDAX declined 41% year over year to $136.2 million, below estimates of $167 million. The adjusted net loss widened to $77.6 million from $15.6 million in the previous year, broadly matching the expected loss of $76.9 million.
Net debt increased 9.9% year over year to $2.98 billion, slightly higher than the $2.9 billion estimate. The company added, “In 2026, we are targeting at least 10% debt reduction by year-end.”