Kosmos Energy aims to bring net debt to about $2 billion by the end of 2027, while its next stated financing priority is the company's 2028 bond maturities.
On the Nov. 2 call, Kosmos Chairman and CEO Andrew G. Inglis said the target assumes strip prices. Kosmos' third-quarter results projected net debt below $2.4 billion at year-end 2026 and leverage approaching two times. The new goal extends that outlook through the following year.
At Sept. 30, Kosmos reported net debt of $2.473 billion. The company calculates net debt by subtracting cash, cash equivalents and restricted cash from long-term debt. Kosmos said the figure omits a $63.9 million finance lease liability associated with its TEN floating production, storage and offloading vessel.
For the first nine months of 2026, free cash flow reached $193 million; the third-quarter figure was about $90 million.
The company completed an October amendment to its $1.2 billion reserve-based lending facility, extending its maturity. Kosmos had drawn $750 million, and the facility's maturity was extended to April 2033. No amortization payments are planned until 2031.
Kosmos announced a final investment decision for Tiberius in March and is targeting first oil in the second half of 2028. After July's farm-down, Kosmos held 33.34% of the project, while Navitas and Occidental each held 33.33%. Kosmos expects carry to cover its share of Tiberius costs through the first half of 2027; it expects most project capital to be spent in 2027 and 2028. The company said its next financing matter is addressing the bonds that mature in 2028.
