Kosmos Energy Third-Quarter Results Miss Views, Expects Sequential Production Decline

06:47 AM EST, 11/02/2026 (MT Newswires) -- Kosmos Energy (KOS) shares fell early Monday after it reported third-quarter results below market estimates and projected sequentially lower production for the current quarter. The deepwater oil and gas production firm reported adjusted earnings of $0.06 a share for the September quarter, compared with a loss of $0.15 the year before. The consensus on FactSet was for a non-GAAP EPS of $0.13. Revenue increased to $409.9 million from $311.2 million, but missed the Street's view for $466.1 million. Production averaged about 69,200 barrels of oil equivalent per day, up 6% year over year and in line with the company's guidance. For the fourth quarter, Kosmos projects production to be in a range of 60,000 to 64,000 barrels of oil equivalent per day. Gulf of America output is expected to fall to 10,000 to 11,500 boepd from about 14,100 boepd in the third quarter, reflecting planned maintenance at the Delta House platform, a workover on the Kodiak-1 well and downtime associated with Hurricane Isaias, the company said. Shares of the company fell 11% in the most recent premarket activity. The stock has surged 214% so far this year. Kosmos made progress during the quarter on the four objectives it set for the year - increasing production, lowering costs, reducing debt and advancing its growth opportunities - Chief Executive Andrew Inglis said in a statement. "We expect to make continued progress against our four strategic priorities, entering 2027 in a much stronger position with multiple catalysts across the portfolio to create additional value," he added. The company's free cash flow was about $90 million in the quarter, representing the third consecutive quarter of positive free cash flow, taking its year-to-date total to $193 million. Capital expenditures came in at $85 million, while the firm continues to expect the metric to be at around $350 million for the 2026 full year. Last week, oil giants Exxon Mobil (XOM) and Chevron (CVX) reported third-quarter adjusted earnings above Wall Street's forecasts, driven by strong refining margins.