On October 2, 2025, Kosmos Energy issued a financial update that announced the partial redemption of $150 million of its 2026 unsecured notes, funded by the first tranche of a $250 million senior secured term loan from Shell Trading (US) Company. The company confirmed that the remaining $100 million of the unsecured notes will be repaid before the maturity date, with the redemption scheduled for October 6, 2025.
The term loan, which was first announced on September 25, 2025, is now being utilized to reduce the company’s unsecured debt load. By repaying a significant portion of the 2026 notes, Kosmos is improving its leverage profile and freeing up cash for future operations and potential capital expenditures.
In addition to the debt repayment, Kosmos expanded its hedging program for 2026, adding 8.5 million barrels of oil hedges with an average floor price of $66 per barrel. The move capitalizes on recent oil price gains and provides downside protection that supports the company’s free‑cash‑flow generation strategy.
The update also noted that Kosmos completed the semi‑annual re‑determination of its reserve‑based lending facility, maintaining a borrowing base that exceeds the $1.35 billion facility size and remaining in full compliance with all liquidity and financial covenants. This reinforces the company’s focus on liquidity and balance‑sheet resilience as it continues to execute its operational and financial plans.
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