Kosmos Energy shares dropped 11.6% after the quarter as investors reacted negatively to the cautious outlook stemming from production deceleration risks and a lag in price realization despite record production and prevailing high oil prices.

• First quarter production increased by approximately 25% year-over-year, driven by ramp-ups at the GTA and Jubilee fields.
• Operating costs fell by around 22%, and net debt was reduced by roughly 7% from year-end 2025.
• Despite record high price benchmarks and widening differentials, Kosmos will not fully realize these pricing benefits until the second and third quarters due to contract and pricing lags.
• Jubilee production reached about 70,000 barrels per day in Q1, with growth expected mid-year; however, a production gap is anticipated in Q2 due to the operator’s strategy of drilling multiple wells before simultaneous completion.
• Market concerns likely centered on the delayed price benefit recognition and potential near-term production fluctuations, limiting optimism despite positive operational trends.