Kosmos Targets Around $2 Billion in Net Debt by Year-End 2027

Kosmos Energy is targeting net debt of around $2 billion by year-end 2027 at strip prices, a goal Chairman and CEO Andrew G. Inglis outlined on the company’s Nov. 2 earnings call.

The target extends beyond Kosmos’ nearer-term outlook. The company expects net debt below $2.4 billion at year-end 2026, with leverage trending toward 2.0x. Inglis disclosed the longer-range target after Kosmos released its third-quarter results, which TokenPost covered in an earlier story.

Kosmos’ net debt was $2.473 billion at Sept. 30. That figure excludes a $63.9 million finance lease liability tied to the TEN floating production, storage and offloading vessel. The company defines net debt as long-term debt minus cash, cash equivalents and restricted cash.

Free cash flow was about $90 million for the third quarter and $193 million for the first nine months through Sept. 30. The figures accompany the company’s debt outlook, which spans its year-end 2026 forecast and the new 2027 target.

In October, Kosmos completed an amendment and extension of its $1.2 billion reserve-based lending facility, moving its maturity to April 2033. The company had drawn $750 million and had no planned amortization payments until 2031. Kosmos identified its 2028 bond maturities as the next financing matter to address.

Kosmos took a final investment decision on the Tiberius project in March and set a first-oil target for the second half of 2028. It completed a farm-down in July, retaining a 33.34% interest while Navitas and Occidental each hold 33.33%. The project carry is expected to cover Kosmos’ spending through 2026 and the first half of 2027. Most project capital is expected in 2027 and 2028.

The 2027 debt target came on the later earnings call, while the company’s third-quarter results included its Sept. 30 debt position and year-end 2026 outlook. Kosmos’ next financing matter is its 2028 bond maturities.