Kosmos Energy Ltd. (KOS) Earnings

Management highlights

### 2026 Four Core Objectives Progress (H1 2026) - Production for H1 2026 is 18% higher year-over-year, driven by new wells at Jubilee and ramp-up at GTA - Absolute operating costs are down 24% year-over-year, with total full-year 2026 OpEx per barrel target of ~35% reduction on track - Net debt has been reduced by ~50% versus end-2025, with good progress toward the upgraded 20% year-over-year net debt reduction target - The high-quality growth portfolio has been advanced with minimal 2026 capex, including the Tiberias FID and farm-down, GTA Phase 1 expansion progress, and a strategic exploration alliance with Shell ### Ghana Operational Updates - The 2025-2026 Jubilee drilling campaign has exceeded expectations, with the J76 well the best-performing drilled at the field in over a decade, demonstrating significant upside from unswept core field areas and unaccessed deeper horizons - A 10-well 2027-2028 drilling campaign is being planned for a mid-2027 start, which will leverage newly processed 4D and OBN seismic data to maximize reserve recovery ### GTA Operational Updates - OPEX per MMBtu is on track to hit a 50% reduction target in 2026, with further reductions expected in 2027 - Phase 1 expansion for domestic gas supply to power is progressing: onshore pipeline fabrication is complete and the pipeline will arrive in Senegal imminently; Mauritania has signed a 25-year agreement for a 230MW gas-fired power plant that will use GTA gas. This expansion will increase throughput with minimal incremental cost, further reducing unit costs ### Balance Sheet Progress - $420 million of debt has been paid down in H1 2026 via free cash flow, equity proceeds, and Equatorial Guinea asset sale proceeds - Ended Q2 with over $500 million in available liquidity; both S&P and Fitch upgraded the company's rating to B- - Discussions to amend and extend the Reserve-Based Lending (RBL) facility have commenced, with a target close in Q4 2026 for a facility size of ~$1.2 billion; the company targets leverage of ~2x by end-2026 ### Gulf of America Growth Updates - The Tiberias farm-down provides carry that covers all of Cosmos' 2026 capex and funds its share of development through H1 2027; first oil is targeted for H1 2028 - The Shell strategic exploration alliance plans to drill the Trailblazer prospect (200 million barrels of oil gross equivalent resource) in Q1 2027, with Cosmos as designated development operator if successful

Guidance

- Full year 2026 Jubilee production guidance remains unchanged at 70,000 to 80,000 barrels of oil per day, with performance tracking toward the upper end of the range - Full year 2026 GTA LNG cargo guidance remains unchanged at 32 to 36 gross cargoes, with 18.5 cargoes already delivered in H1 2026 - Following the completed Equatorial Guinea asset sale, full year 2026 production guidance midpoint was adjusted down by ~2,500 barrels of oil equivalent per day net, and the company remains on track to reduce OpEx per barrel by ~35% full year 2026 - The 20% year-over-year net debt reduction target is maintained, and management expects to hit or exceed this target with current operational performance; leverage is expected to fall toward 2x by end-2026 - The RBL amendment and extension process is expected to close in Q4 2026, with a targeted facility size of ~$1.2 billion - First oil from the Tiberias project is targeted for H1 2028 - The 10-well 2027-2028 Jubilee drilling campaign is targeted to start mid-2027, with management working to potentially move the start date earlier - Shell plans to drill the Trailblazer exploration well in Q1 2027

Segment performance

1. **Jubilee (Ghana)**: Gross production is ramping up following the 2025H2 drilling campaign; after bringing J76 and J77 online, with J50 expected to start imminently, gross production will exceed 90,000 barrels of oil per day. Full year 2026 guidance remains 70,000 to 80,000 barrels of oil per day, and performance is currently tracking towards the upper end of this range. It is Cosmos Energy's highest margin production segment. 2. **GTA (Senegal/Mauritania)**: In Q2 2026, gross LNG production was ~2.65 million tonnes per annum, in line with expectations, with 9 LNG cargoes lifted (at the upper end of quarterly guidance). 18.5 cargoes were lifted in H1 2026, so full year guidance of 32 to 36 gross LNG cargoes remains unchanged. 300,000 barrels of condensate were net to Cosmos in Q2, with an additional 400,000 barrels expected net to the company in Q3 2026. 3. **Gulf of America**: Production was in line with expectations, with solid performance from operated assets Oddjob and Kodiak fields. The Winterfell #5 well was temporarily abandoned due to casing issues during drilling. Following the March 2026 final investment decision on the Tiberias project, a competitive 33.33% farm-down to Navitas was completed, leaving Cosmos as operator with a 33.34% stake.

Risks & headwinds

- Commodity price volatility remains a key risk, though a lower debt, lower cost business profile improves resilience to price swings - Water injection performance at Jubilee was weaker than expected in Q2 2026 (at 65% of target replacement level) due to scheduled maintenance and pump availability issues, which could impact production if not resolved - The Winterfell #5 well encountered unplanned casing issues during drilling, leading to temporary abandonment; operational performance and cost overruns on Winterfell drilling have been disappointing, and activity is paused to resolve underlying issues before further capital is deployed - There are logistical and long-lead-time risks for securing a rig and equipment for the 2027-2028 Jubilee drilling campaign that could delay the start date - While management is on track to hit debt reduction targets, commodity price changes between Q2 and end-2026 could impact the final net debt outcome

Analyst Q&A

• Q: Can you describe the geologic setting of the high-performing J76 well at Jubilee, and what this means for remaining upside opportunity at the field? /

  A: J76 is located in the core of the Jubilee field, and identified unswept up-depth opportunities using new 4D seismic data. It also encountered additional resource in deeper, previously unaccessed horizons. This demonstrates two material lasting opportunities at Jubilee: significant bypassed oil in the core of the field, and untapped deeper horizon potential that will drive future drilling upside. The follow-up question asked for valuation details of the Tiberias farm-down; management confirmed the process implied a $250 million gross valuation for the full asset, with Cosmos receiving just under $45 million in total upfront cash, capex carry, and milestone payments.

• Q: What is the status of the Winterfell project after the casing issues on the #5 well, and is there recourse for the operational issues? /

  A: While Winterfell still holds large potential reserve upside, the team has been consistently disappointed by drilling performance on routine operations, which has led to unplanned additional costs. There is no current impact to existing production, so activity has been paused to fully diagnose and resolve the underlying drilling issues before committing more capital to the project, and the team is working with the operator to comprehensively fix the problems.

• Q: What is the remaining plan to hit the 20% year-over-year net debt reduction target, and what is the long-term balance sheet roadmap after that? /

  A: Management has already delivered almost $500 million of debt reduction in H1 2026, bringing leverage to ~2.5x, and needs an additional ~$150 million of debt reduction to hit the year-end target, which is expected to come from ongoing free cash flow generation. The company is methodically addressing its debt maturity schedule: it has already addressed 2026 and 2027 maturities, is working on RBL amendment and extension in 2026, and will address 2028 maturities after RBL work is complete, creating over three years of maturity runway to continue deleveraging.

• Q: What are the recoverable reserve targets for the first phase of Tiberias and for Cosmos' share of the Trailblazer prospect? /

  A: The first Tiberias well targets ~40 million barrels of recoverable reserves, with total Tiberias holding 100 million barrels plus additional potential from the separate Logan discovery. The Trailblazer prospect has 200 million barrels of gross resource, with Cosmos holding just under a 30% stake, equal to ~60 million barrels net. Both projects are planned to be phased: first oil is brought online early with a single well tied into existing infrastructure, then additional wells are added later to expand production.