Kosmos Energy Q3 revenue falls short of estimates

Overview

• U.S. deepwater oil producer's Q3 revenue missed analyst expectations

• Adjusted net income for Q3 was $35 mln, or $0.06 per share

• Company generated $90 mln free cash flow in Q3

Outlook

• Kosmos sees 4Q 2026 production at 60,000-64,000 boe per day

• Company expects 4Q 2026 capital expenditure of $50-$75 mln

• Kosmos maintains full-year 2026 capital expenditure guidance at $350 mln

Result Drivers

• HIGHER PRODUCTION - Co said Q3 production rose about 6% from a year earlier, driven by growth in Ghana and stable output in Mauritania and Senegal

• LOWER COSTS - Co reported a 31% reduction in production expenses compared to Q3 2025

• JUBILEE DRILLING - Successful completion of Jubilee drilling campaign contributed to higher oil output in Ghana

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for Kosmos Energy Ltd. is $3.00, about 5.3% above its October 30 closing price of $2.85

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Oct 30 - Canada's Imperial Oil Q3 revenue misses expectations on higher commodity prices

• Oct 30 - Oil States International Q3 beats estimates on offshore demand

• Nov 1 - OPEC+ keeps December oil output targets steady ahead of tougher call for 2027

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)