Kosmos Energy Reports Upbeat Revenue But Posts Wider-Than-Expected Loss: Retail’s Optimistic
Synopsis
Kosmos reported a 28% year-over-year decline in its fourth-quarter revenue to $397.656 million, topping a Street estimate of $393.40 million. The company posted an adjusted earnings loss of $0.03, wider than an estimated loss of $0.02.
Upstream oil company Kosmos Energy (KOS) reported better-than-expected fourth-quarter revenue on Monday but failed to meet Wall Street’s estimates on earnings.
Kosmos reported a 28% year-over-year (YoY) decline in its fourth-quarter (Q4) revenue to $397.656 million, topping a Street estimate of $393.40 million. The company posted an adjusted earnings loss of $0.03, wider than an estimated loss of $0.02.
Net loss for the quarter stood at $6.57 million compared to a profit of $21.68 million in the same quarter a year ago.
The quarter saw approximately 66,800 barrels of oil equivalent per day (boepd) of net production, with sales of approximately 65,700 boepd. The company said production was below guidance primarily due to lower output at Jubilee and the timing impact of new project startups.
Kosmos also stated that planned shut-downs at Jubilee in Ghana and the Devils Tower facility, which hosts the Kodiak field in the Gulf of America, will impact production in the first quarter of 2025.
CEO Andrew G. Inglis said the company will now prioritize generating free cash flow from its increased production base and disciplined capital investment. “Our forecast 2025 capex budget of $400 million is a reduction of over 50% from recent years,” he noted.
Inglis also pointed out that in the Gulf of America, the company expects production to increase further from the Winterfell 3&4 wells in the coming months. He also expressed optimism about the production optimization projects undertaken during 2024.
Kosmos exited Q4 with approximately $2.8 billion of total long-term debt, approximately $2.7 billion of net debt, and available liquidity of approximately $535 million.
On Stocktwits, retail sentiment continued to trend in the ‘extremely bullish’ territory (75/100), albeit with a lower score. The move was accompanied by ‘high’ retail chatter.
Kosmos Energy stock has lost over 14% in 2025 and is down over 44% over the past year.
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