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Investing.com -- Kosmos Energy (NYSE:KOS) reported a second-quarter 2025 net loss that missed analyst expectations, and cut its full-year (FY25) production and capital expenditure outlook.
The U.S. upstream oil firm posted a net loss of $88 million for the quarter, notably wider than the $49 million loss consensus estimate cited by Jefferies.
On an adjusted basis, the company posted a net loss of $93 million, also missing expectations of a $43 million loss.
Revenue came in at $394 million, with EBITDAX at $149 million—both roughly in line with consensus.
Sales volumes averaged 73,200 barrels of oil equivalent per day, while reported production stood at 63,500 boe/d. Realized prices, excluding derivative cash settlements, averaged $58.9 per barrel.
Net debt remained steady at $2.85 billion, as expected. However, leverage rose to 3.85x from 3.3x in the prior quarter, exceeding the company’s 3.5x debt covenant ratio.
Second-quarter production rose 5% sequentially to 63,500 boe/d but came in below the guidance range of 66,000–72,000 boe/d. Kosmos attributed the shortfall to the timing of the ramp-up at the Greater Tortue Ahmeyim (GTA) project and lower output at Jubilee.
Looking ahead, the company cut its full-year production outlook to 65,000–70,000 boe/d, with the new midpoint 10% lower than the previous 70,000–80,000 boe/d range.
Capital expenditure guidance for 2025 was also revised down to $350 million, compared to the prior target of "$400 million or below."
Jefferies analyst Mark Wilson believes Kosmos’ profit miss and guidance cut "will dominate market reaction, but, in parallel, Kosmos reduces FY25 capex $50m to $350m, delivering on the intention from 1Q25 results," he wrote in a note.