Kosmos Energy Ltd. (KOS): Business Model Canvas [Dec-2025 Updated]

You're digging into Kosmos Energy Ltd. (KOS) right as they shift gears from heavy spending to cashing in on production, and honestly, understanding their business model now is key to seeing where the next big returns will land. We're looking at a company pivoting hard on the Greater Tortue Ahmeyim (GTA) LNG ramp-up while managing core assets, which saw them pull in $311 million in revenue in Q3 2025 alone. If you want the precise breakdown of how they partner, spend (with 2025 CapEx guidance under $350 million), and sell everything from West African gas to Gulf of Mexico crude, check out the full canvas below.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Kosmos Energy Ltd. (KOS) moving forward, especially as they manage significant project milestones and balance sheet actions in late 2025. These aren't just handshake deals; they represent major capital commitments and operational dependencies.

Major Project and Financial Alignment

The relationship with Shell is clearly evolving beyond just asset participation in the Gulf of Mexico (GoM). Shell Trading (US) Company provided a crucial liquidity injection via a senior secured term loan facility of up to $250 million, with funding anticipated on October 1, 2025. This move directly addressed near-term liabilities, as the first tranche of $150 million was earmarked to partially redeem the $250 million outstanding 2026 unsecured notes. The facility carries an interest rate of SOFR + 3.75% and has a four-year maturity. This action was taken when Kosmos Energy reported approximately $2.85 billion of net debt at the end of the second quarter of 2025, aiming to improve balance sheet resilience. By September 30, 2025, total liquidity stood at approximately $540 million, which included the $250 million availability under this new Term Facility.

The Greater Tortue Ahmeyim (GTA) LNG development offshore Mauritania and Senegal is a landmark partnership with bp, the operator. This joint venture achieved a major milestone with the first LNG cargo export in April 2025, following the commencement of LNG production on December 31, 2024. The GTA Phase 1 project is designed to yield approximately 2.4 mtpa of LNG upon full commissioning. Kosmos Energy begins recognizing revenue and cash flow only upon the lifting of this initial LNG cargo.

Joint Venture Operations and Development

In the Gulf of America, Kosmos Energy partners with Occidental Petroleum (Oxy) on the Tiberius project, where Kosmos acts as the operator with a 50% working interest, matching Oxy's 50% working interest. They are currently evaluating development plan opportunities to lower capital costs, targeting a Final Investment Decision (FID) in 2026. The estimated gross resource for Tiberius is approximately 100 million boe. For context on other GoM interests, in a prior Tiberius exploration well, Kosmos held a 33.34% working interest alongside Occidental and Equinor ASA, who each held 33.33%.

The Key Partnerships involved in major assets can be summarized here:

Governmental and Regulatory Relationships

Securing long-term operational certainty through host governments is a critical partnership element. In Ghana, Kosmos Energy and its joint venture partners signed a Memorandum of Understanding (MOU) with the Government of Ghana to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses, which cover the Jubilee and TEN fields, through 2040. This extension is highly accretive, allowing for an expected investment of up to $2 billion in the Jubilee field via authorization to drill up to 20 new wells. The partners are targeting submission for parliamentary approval of the license extensions before the end of the third quarter of 2025.

The operational footprint of Kosmos Energy depends on these governmental relationships across its portfolio. The company has production and development interests tied to these sovereign entities:

• Ghana: Jubilee and TEN fields.
• Equatorial Guinea: Production assets.
• Mauritania and Senegal: GTA LNG project.

These agreements are foundational for future reserve recognition and cash flow generation.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Key Activities

Deepwater oil and gas exploration and production (E&P) remains central to Kosmos Energy Ltd. (KOS) operations, focusing on maximizing output from existing assets while managing capital expenditure.

The company reported total net production of approximately 31,300 barrels of oil equivalent per day (boepd) in the third quarter of 2025, driven by contributions from the Greater Tortue Ahmeyim (GTA) project and new wells at Jubilee. Full-year 2025 production guidance was set between 65,000 - 70,000 boepd, with the fourth quarter expected to see production in the range of 66,000-72,000 boepd. Capital expenditure for the full year 2025 is targeted to be below $350 million, following a third-quarter CapEx spend of $67 million, bringing year-to-date CapEx to approximately $240 million.

Managing the ramp-up of the Greater Tortue Ahmeyim (GTA) LNG project is a critical activity, aiming to bring the facility to its nameplate capacity.

The floating LNG (FLNG) vessel has a nameplate capacity of approximately 2.7 million tonnes per annum (mtpa), with Kosmos Energy Ltd. targeting to reach this level by the end of 2025. First gas was achieved on December 31, 2024, with first LNG production in February 2025. By the second quarter of 2025, production volumes had ramped up to a level equivalent to about 2.4mn tonnes per year (tpy), or around 90% of nameplate capacity. The first LNG cargo lifted was approximately 174,000 cubic meters of LNG.

Executing the Ghana infill drilling program is focused on sustaining and growing production from the core Jubilee and TEN assets.

The restart of Jubilee drilling has been a key focus, with an initial gross production from a new well reported at around 10,000 barrels of oil per day. The company is targeting Jubilee production to exit 2025 at approximately 70,000 barrels per day. Furthermore, an extension of the licenses until 2040 allows for up to 20 new wells at Jubilee, representing a USD 2 billion investment over the permit duration. The 2026 drilling program is planned to include 5 wells, including one water injector. The partners also aim to increase gas supply from Jubilee and TEN fields to about 130 million standard cubic feet per day.

Proactive balance sheet management involves significant debt refinancing and commodity price hedging to enhance financial resilience.

Kosmos Energy Ltd. entered into a senior secured term loan facility with Shell for up to $250 million. A portion of this, $150 million, was used to partially redeem 2026 unsecured notes on October 6, 2025, with the remaining $100 million planned for early repayment of 2026 maturities. The company exited the second quarter of 2025 with approximately $2.85 billion of net debt. The Reserve-Based Lending (RBL) facility successfully completed its re-determination, with the borrowing base remaining in excess of the $1.35 billion facility size. Despite these actions, the company reported a net loss of $124 million in Q3 2025.

The hedging program provides downside protection for near-term production volumes, as detailed below:

The company also achieved $25 million in overhead reductions by year-end 2025.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Key Resources

You're looking at the core assets and financial scaffolding that support Kosmos Energy Ltd.'s operations as of late 2025. These are the tangible and intangible things the company absolutely must have to make its business model work.

Core producing assets form the immediate revenue base, while the GTA gas resource represents significant future value and diversification away from pure oil price exposure. The RBL facility and technical team are the financial and human capital supporting this portfolio.

The company's key producing assets and their recent performance metrics are summarized below:

The world-scale gas resource in Mauritania/Senegal, the Greater Tortue Ahmeyim (GTA) project, is a major resource anchor. Kosmos Energy Ltd. holds a 27% working interest in GTA. The initial phase of GTA is expected to deliver approximately 2.5 million tonnes per annum (mmtpa) of natural gas. GTA alone is estimated to contain more than 15 trillion cubic feet of potentially recoverable gas resources. By the third quarter of 2025, GTA Phase 1 production ramped up to approximately 11,400 boepd net.

Financially, the Reserve-Based Lending (RBL) facility is a critical resource. As of the October 1, 2025, update, Kosmos Energy Ltd. successfully completed its semi-annual re-determination, with the borrowing base remaining in excess of the facility's $1.35 billion size. This facility is secured against the Ghana and Equatorial Guinea assets. Also supporting liquidity is a senior secured term loan facility entered into with Shell for up to $250 million.

The overall production base, combining all assets, resulted in a Q3 2025 net production of approximately 65,500 barrels of oil equivalent per day (boepd). The company is targeting full-year 2025 capital expenditures to be lower than $350 million and is pursuing a targeted annual overhead reduction of around $25 million by year-end 2025.

The intangible but essential resource is the technical expertise. This is evidenced by:

• Successfully bringing the first producer well of the 2025/26 Jubilee drilling campaign online.
• Progressing the Tiberius development plan in the GoM, with a production handling agreement executed in Q3 2025.
• The company's overall portfolio, which at year-end 2024, held approximately 528 million barrels of oil equivalent (mmboe) in 2P reserves, representing a 22-year reserves-to-production ratio.
• Proactively adding hedges for 2026, with 8.5 million barrels hedged at an average floor of $66 per barrel as of October 1, 2025.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Value Propositions

You're looking at the core value Kosmos Energy Ltd. (KOS) offers its stakeholders right now, late in 2025. It's a mix of established production, a major new gas venture coming online, and a clear runway for future development in the Atlantic Basin.

Providing secure, affordable, and lower-carbon oil production.

Kosmos Energy Ltd. is actively managing its carbon footprint while ensuring production stability. The company aims to reduce its absolute Scope 1 equity emissions by 25% by 2026, using a 2022 baseline as the comparison point. This commitment is part of a broader goal to achieve and maintain top quartile carbon intensity across both oil and gas portfolios. For context, Kosmos Energy Ltd. maintained carbon neutrality for its operated Scope 1 and Scope 2 emissions in both 2021 and 2022.

To secure the affordability aspect, the company is using hedging to protect against near-term price volatility. They have 50% of their 2026 oil production hedged with an average floor price of $66/bbl. Looking back at the 2025 program, they had 5 million barrels of remaining 2025 oil production hedged with a floor of approximately $62/barrel and a ceiling of approximately $77/barrel.

Here's a snapshot of the production base supporting this value proposition as of the third quarter of 2025:

The company's overall production is definitely trending upward as the GTA project ramps up.

New, strategic LNG supply to global markets from West Africa (GTA).

The Greater Tortue Ahmeyim (GTA) project is now a revenue-generating asset, marking a significant shift for Kosmos Energy Ltd. The Floating LNG (FLNG) vessel achieved its Commercial Operations Date (COD) in June 2025. The FLNG has a nameplate capacity around 2.7 million tonnes per annum. By the end of Q3 2025, the partnership had lifted 6.8 gross LNG cargos during that quarter alone. The company is focused on accelerating the ramp-up, aiming for stable cash flows by 2026.

The value here is providing a new, secure source of gas to global markets, which is crucial given the current energy landscape. The GTA project establishes an Atlantic Basin LNG hub ideally located to supply European markets and provide gas for domestic use in partner nations.

Exposure to high-growth, high-impact deepwater Atlantic Margin plays.

Kosmos Energy Ltd.'s portfolio is concentrated in high-impact deepwater areas. Core producing assets are offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, complemented by the GTA gas development offshore Mauritania and Senegal. The company is actively progressing its U.S. Gulf of Mexico portfolio:

• The Winterfell-4 well in the Gulf of America was successfully drilled, with completion work ongoing and expected online later in the third quarter of 2025.
• At Tiberius, the Final Investment Decision (FID) is targeted for 2026.
• The Gettysburg discovery is being progressed as a low-cost, single well tie-back to Shell's Appomattox facility.

These developments show a clear path to production growth outside of the established assets.

Long-life assets with greater than 20 years of 2P reserves/production life.

The underlying asset base provides significant longevity. Kosmos Energy Ltd. reports a 2P reserves-to-production ratio of over 20 years. This long life is being reinforced by license extensions in key areas. For instance, Kosmos and partners signed an MoU with the Government of Ghana to extend production licenses to 2040, which is expected to result in a material uplift in 2P reserves in Ghana upon formal approval.

This long-term reserve base is what underpins the company's ability to focus on near-term cash generation and debt paydown, knowing the resource foundation is solid.

Finance: review the impact of the $2.85 billion net debt position as of Q3 2025 against the expected cash flow from GTA ramp-up by year-end.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Customer Relationships

You're looking at how Kosmos Energy Ltd. manages its sales and government interactions as of late 2025. It's a mix of big, long-term partnerships and immediate cargo sales. Honestly, the relationships with host governments are as critical as the ones with the buyers.

Dedicated B2B relationships with major global energy companies and traders

Kosmos Energy Ltd. engages in transactional sales for its produced commodities, which involves direct dealings with energy companies and traders for immediate or near-term offtake. This is where the day-to-day revenue is generated.

For the three months ended June 30, 2025, sales volumes were:

• Oil: 5,363 MBbl.
• Gas: 7,120 MMcf.
• NGL: 113 MBbl.
• Total Sales Volume: 6,663 MBoe.

The realized revenue per barrel of oil equivalent (Boe) for Q2 2025 was $58.93 (excluding derivative cash settlements), dropping to $56.39 per boe in Q3 2025.

The Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project is a key source of these sales, having achieved its first LNG cargo in February 2025. The Gimi floating LNG (FLNG) vessel reached its Commercial Operations Date in Q2 2025, achieving the daily contracted sales volume level.

Here's a look at the recent LNG lifting activity, which represents direct transactional sales:

The first phase of the GTA LNG project provides about 2.7 million tons per year, and reservoir results have already surpassed expectations, running over capacity by more than 10%. Also, Kosmos Energy Ltd. is working with major counterparties on financing, having entered into a senior secured term loan with Shell Trading (US) Company ("Shell") for up to $250 million, with the first tranche of $150 million completed post Q3 2025.

Strategic, long-term engagement with National Oil Companies (NOCs) and host governments

Your long-term stability hinges on these government relationships. Kosmos Energy Ltd. has specific financing arrangements and license extensions that lock in future production and investment.

The company has Carry Advance Agreements in place with the national oil companies of Mauritania and Senegal, which relate to financing their share of certain development costs at the Greater Tortue Ahmeyim (GTA) project. Kosmos Energy Ltd. concluded funding a share of GTA's capital expenditure on behalf of these NOCs.

In Ghana, a major development occurred in June 2025:

• Memorandum of Understanding (MOU) signed with the Government of Ghana, Ghana National Petroleum Corporation (GNPC), and partners.
• The MOU extends the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses to 2040, covering the Jubilee and TEN fields.
• This extension includes approval to drill up to 20 additional wells in the Jubilee field, representing an investment of up to $2 billion in Ghana over the life of the licenses.
• The agreement commits to working to increase gas supply from Jubilee and TEN to c. 130 mmscf/d and includes a guaranteed reimbursement mechanism for gas sales.

These agreements are foundational, securing production life beyond 2040 for key assets.

Transactional sales for spot crude oil and LNG cargoes

This covers the actual movement and sale of the product to the market, which is often executed through marketing and offtake agreements, sometimes tied to financing deals. The Q2 2025 sales volumes give you a snapshot of the transactional throughput:

Total sales volume for Q2 2025 was 73,200 boepd net, with production at approximately 63,500 boepd net, meaning the company was selling more than it produced that quarter (underlifted).

The company's hedging program also directly impacts the realized price on these transactional sales. As of Q3 2025, Kosmos Energy Ltd. had:

• 2.5 million barrels of remaining 2025 oil production hedged with an average floor of approximately $62/barrel.
• 8.5 million barrels of oil hedged for 2026 with an average floor of $66/barrel.

The closing of the Gulf of America term loan facility, anticipated by the end of Q3 2025, is subject to the execution of 'certain crude oil marketing and offtake agreements,' directly linking a major financial transaction to future transactional customer relationships.

Finance: draft 13-week cash view by Friday.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Channels

You're looking at how Kosmos Energy Ltd. gets its product-crude oil and natural gas-out to the market as of late 2025. This is all about the physical movement and sale of hydrocarbons from their assets.

Direct sales of crude oil cargoes to international buyers and refiners

Kosmos Energy Ltd. moves its crude oil production primarily through direct sales of cargoes into the international market. This involves securing the right buyers, often major refiners, for the volumes lifted from their various fields, including Jubilee and TEN offshore Ghana, and assets in the Gulf of America.

Sales volumes show the flow of product, which can fluctuate based on field performance and scheduled maintenance, like the heavy maintenance seen in the first quarter of 2025.

Here's a look at the sales performance through the third quarter of 2025:

The daily sales rate for the third quarter of 2025 was approximately 59,900 barrels of oil equivalent per day (boepd). The first quarter of 2025 saw sales of approximately 49,600 boepd, which was impacted by the timing of liftings. By the second quarter, sales had increased to about 73,200 boepd.

LNG cargo liftings from the GTA FLNG vessel

The Greater Tortue Ahmeyim (GTA) project offshore Mauritania and Senegal is a major new channel for Kosmos Energy Ltd., utilizing the Golar FLNG Gimi vessel. Revenue recognition begins upon the lifting of each LNG cargo. The project achieved Commercial Operations Date (COD) in the second quarter of 2025.

The liftings schedule shows the ramp-up of this significant new revenue stream:

The GTA FLNG vessel has a nameplate capacity of 2.7 million tonnes per annum (mtpa).

Gas sales via pipeline to domestic markets

Kosmos Energy Ltd. also has commitments for gas sales to domestic markets, specifically mentioning Ghana. This involves pipeline delivery from the Jubilee and TEN assets.

Reported net gas production volumes for Kosmos in Ghana illustrate the supply available for these channels:

• Gas production net to Kosmos in Ghana for the first quarter of 2025 was approximately 5,300 boepd.
• Jubilee gas production net to Kosmos in the second quarter of 2025 averaged approximately 5,700 boepd.
• Ghana gas production net to Kosmos in the third quarter of 2025 was approximately 5,200 boepd.

The future channel expansion includes the GTA Phase 1+ brownfield expansion, which is expected to approximately double gas throughput by 2029, covering both LNG production and domestic gas sales.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Customer Segments

Global Energy Traders and Major Oil Companies purchasing crude oil represent a core segment for Kosmos Energy Ltd. (KOS) from its producing assets outside of the Greater Tortue Ahmeyim (GTA) project.

The company's oil sales volumes provide a concrete measure of this segment's activity across the first three quarters of 2025.

For the six months ended June 30, 2025, Kosmos Energy Ltd. sold 9,023 MBbl of oil. The company lifted 3 cargos from Ghana during the second quarter of 2025. Also, Kosmos lifted 2 cargos from Ghana in the third quarter of 2025.

International LNG Buyers seeking long-term supply are primarily served through the GTA project, where the off-taker is a subsidiary of BP. This arrangement dictates the immediate customer base for the significant LNG volumes.

• The GTA Phase 1 project targets a nameplate capacity of 2.7 million tonnes per annum of LNG.
• BP's subsidiary is the sole buyer of the 2.5-million metric ton per year volume under a 20-year contract for GTA Phase 1.
• Kosmos Energy Ltd. exported the first LNG cargo in April 2025, with the first phase targeting 2.3 million tons per annum.
• During the third quarter of 2025, 6.8 gross LNG cargos were lifted from the GTA project.

National Oil Companies (NOCs) in host countries are critical partners rather than direct purchasers of all output, but they are key stakeholders in the development and financing structure.

Kosmos Energy Ltd. has specific financial arrangements with the NOCs in Mauritania and Senegal regarding the GTA project.

• Kosmos Energy Ltd. concluded funding a share of GTA's capital expenditure on behalf of the national oil companies of Mauritania and Senegal as of the second quarter of 2025.
• The NOCs involved in the GTA partnership include Senegal's Petrosen and Mauritania's Société Mauritanienne Des Hydrocarbures.
• Kosmos Energy Ltd. plans to invest US$2 billion in Ghana's energy sector to maximize output from the Jubilee and TEN fields.

Finance: draft 13-week cash view by Friday.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Kosmos Energy Ltd.'s cost base as we head into the end of 2025. It's all about managing heavy upfront spending against operational efficiencies gained from recent project completions. Honestly, the structure reflects a company in a heavy development cycle finally seeing some payoff in operating costs.

Capital Expenditure (CapEx)

The development phase requires substantial upfront cash, but the guidance for the full year 2025 shows a sharp pullback from prior periods. The company expects full-year CapEx to be below $350 million. This is a significant reduction, representing more than 60% lower year-on-year spending compared to 2024 levels. This spending is directed toward key development areas, like the Jubilee drilling program.

Here's a quick look at the spending profile based on recent updates:

• Full-Year 2025 CapEx Guidance: < $350 million
• Q2 2025 Actual CapEx: $86 million
• Q3 2025 Actual CapEx: $67 million

Production Expenses (OpEx)

The focus on lowering operational costs is yielding results, especially as the Greater Tortue Ahmeyim (GTA) project ramps up. For the full year 2025, Kosmos Energy Ltd. is guiding for production expenses around $22.00/boe. To give you context on the trend, Q3 2025 production expense was reported at $19.51/boe (excluding GTA-associated costs) or $26.78/boe including those costs. The Q4 2025 guidance was even tighter, projected between $15.00-$18.00/boe.

Financing Costs and Debt Load

Servicing the debt remains a major fixed cost component. Kosmos Energy Ltd. exited Q3 2025 carrying approximately $2.9 billion of net debt. This debt level drives a significant interest expense, with the net interest expense guidance for the full year 2025 raised to approximately $220 million. The company has been actively managing this, executing a $250 million senior secured term loan with Shell, using $150 million of that to partially redeem 2026 unsecured notes.

General and Administrative (G&A) Overhead

Management is aggressively targeting overhead to improve the bottom line. The targeted reduction for G&A overhead by the end of 2025 is a firm $25 million. This effort is on track, and the revised full-year G&A guidance for 2025 is approximately $75 million.

Here's the breakdown of the overhead management effort:

The net debt figure is the anchor here, dictating the interest expense you see flowing through the income statement. Finance: review the impact of the $250M Shell loan on Q4 interest accrual by next Tuesday.

Kosmos Energy Ltd. (KOS) - Canvas Business Model: Revenue Streams

You're looking at the top line, the money coming in before we worry about the operating costs, so let's focus on what Kosmos Energy Ltd. is selling and for how much as of late 2025. The reported revenue for the third quarter of 2025 was a precise $311.23 million, this figure excludes any cash settlements from derivative contracts you might see elsewhere. That quarterly revenue translated to a realized revenue per barrel of oil equivalent (boe) of $56.39 for the period. To give you the context of sales volume, net production hit approximately 65,500 boepd, but sales volumes were slightly lower at about 59,900 boepd. Honestly, tracking the sales mix is key to understanding the revenue quality.

Here's a quick look at the Q3 2025 operational metrics that feed directly into those revenue figures:

The core of the revenue engine is still crude oil sales, split between West Africa and the U.S. Gulf of Mexico. In Ghana, the Jubilee field is a major contributor; net production there averaged around 31,300 boepd in Q3 2025. Plus, the first producer well from the 2025/2026 drilling campaign came online, adding an average of about 10,000 bopd gross. You should note that Kosmos lifted 2 cargos from Ghana during that quarter, which is how the revenue is recognized.

For the U.S. Gulf of Mexico assets, this segment provides crude oil revenue, though specific Q3 2025 sales volumes aren't broken out separately from the total sales figure in the same detail as Ghana. What we do know is that the Winterfell-4 well abandonment resulted in a significant write-off impacting earnings, which is a risk inherent in this revenue source. Still, the overall production mix is weighted heavily toward oil in this region, around 84 percent oil based on Q2 figures.

The Greater Tortue Ahmeyim (GTA) project is now a key revenue stream, bringing in sales from both Liquefied Natural Gas (LNG) and condensate. During Q3 2025, the partnership lifted 6.8 gross LNG cargos from the offshore Mauritania and Senegal development. Furthermore, the first condensate cargo from the GTA project was lifted, which is a byproduct stream that adds to the total revenue base. The company is targeting nameplate production by the end of Q4 2025, which should materially increase the recurring LNG and gas revenue component.

You need to keep an eye on the hedging program as it directly impacts realized prices, which in turn affects revenue stability. Kosmos Energy Ltd. has 8.5 million barrels of oil production hedged for 2026 with a floor price of approximately $66 per barrel, covering about 50 percent of the first-half oil production for that year. That's a direct action to stabilize future revenue streams.

Finance: draft the Q4 2025 revenue projection based on current cargo lift schedules by next Wednesday.