Kosmos Energy cuts net debt by $400M as Q2 2026 earnings rise

Kosmos Energy reported second‑quarter 2026 net income of $185 million ($0.31 per diluted share) and adjusted net income of $68 million ($0.11 per share). Production averaged about 71,400 boe/d, up roughly 12% year‑on‑year, generating $607 million in revenue. Production expense fell 25% to $179 million, while capital expenditures were $105 million. The company produced $175 million of operating cash flow and $89 million of free cash flow, allowing it to reduce net debt by more than $400 million, ending the quarter with $2.56 billion of net debt and over $500 million of liquidity.

The debt reduction was driven by the $127 million sale of its Equatorial Guinea assets, which also included up to $40 million in contingent payments. Kosmos advanced its GTA Phase 1 LNG project to an average of 2.65 mtpa and lifted nine LNG cargos in the quarter. It also farmed down the Tiberius project, bringing in Navitas and Occidental as equal partners, with a milestone‑based consideration that includes upfront cash and a capital carry to fund spending through mid‑2027.