Kosmos Energy Ltd. (KOS) Improving Operations in West Africa, But See Less Upside Relative After Strong LTM Share Performance

Equity Research 14 August 2026 | 12:43AM EDT

Kosmos Energy Ltd. (KOS) Improving Operations in West Africa, But See Less Upside Relative After Strong LTM Share Performance

KOS 6m Price Target: $2.50 Price: $2.53 Downside: 1.2% SELL Neil Mehta The Positives. Management continues to deliver on key areas of | Goldman Sachs & Co. LLC focus, including ramping production from core assets at Jubilee and Lydia Gould Tortue, and advancing high-quality growth opportunities in the Gulf | Goldman Sachs & Co. LLC of America with minimal capital. We note recent developments include the final investment decision and farm-down of Tiberius, Josiah Knight | Goldman Sachs & Co. LLC and a 10-block exploration alliance with SHEL, where drilling at Trailblazer is set to start in 1Q27. In addition, management highlights significant absolute debt and per barrel cost reductions Key Data _____________________________________ Market cap: $1.5bn year-over-year, with support from the recent sale of high-cost Enterprise value: $3.7bn 3m ADTV: $36.3mn Equatorial Guinea barrels, though we look for further improvement United States ahead. Americas Integrated Oil and Refiners M&A Rank: 2

The Challenges. Despite recent focus on the balance sheet, we see GS Forecast __________________________________ 12/25 12/26E 12/27E 12/28E room for further improvement on debt and operating cost Revenue ($ mn) New 1,291.7 1,858.7 1,674.9 1,703.8

reductions. We find shares still warrant a higher relative cost of Revenue ($ mn) Old 1,291.7 1,754.7 1,662.2 1,691.0 EBITDA ($ mn) 283.0 1,188.1 1,060.3 1,084.5 capital due to asset concentration, geographic risks, and limited EBIT ($ mn) (

control over joint venture projects. We also base our cautious view EPS ($) New EPS ($) Old ( on historical operational challenges, including in the Gulf of P/E (X) NM 10.7 9.9 8.7 Dividend yield (%) 0.0 0.0 0.0 0.0 America, and note Winterfell-5 was temporarily abandoned in July Net debt/EBITDA (X) 9.1 1.8 1.8 1.5 after casing issues. 6/26 9/26E 12/26E 3/27E EPS ($) Our View. We maintain our Sell-rating on KOS with a price target of $2.50. While we see a stronger growth outlook at Jubilee, positive GS Factor Profile ______________________________ Growth operating momentum at Tortue, and exploration upside in the Gulf of America, prior execution challenges and elevated debt relative to Financial Returns

peers keep us cautious on shares. Please see within for further Multiple

Percentile 20th 40th 60th 80th 100th

KOS relative to Americas Coverage KOS relative to Americas Integrated Oil and Refiners

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Kosmos Energy Ltd. (KOS)

Kosmos Energy Ltd. (KOS) Balance Sheet ($ mn) _______________________________________ SELL Rating since Apr 9, 2026 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable Inventory 0.0 -- -- -- Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets P/E (X) NM 10.7 9.9 8.7 Net PP&E 3,733.8 3,310.0 3,223.2 3,438.2 EV/EBITDA (X) Net intangibles -- -- -- -- EV/sales (X) 2.7 2.0 2.0 1.8 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) ( Other long-term assets EV/DACF (X) 8.2 5.4 4.4 3.8 Total assets 4,534.1 4,148.8 4,062.0 4,277.0 CROCI (%) 5.0 7.9 8.8 9.2 ROE (%) ( Accounts payable Net debt/EBITDA (X) 9.1 1.8 1.8 1.5 Short-term debt 0.0 -- -- -- Net debt/equity (%) Current lease liabilities -- -- -- -- Interest cover (X) (1.2) 3.1 2.7 2.8 Other current liabilities Inventory days -- -- -- -- Total current liabilities Receivable days Long-term debt 2,695.9 2,335.5 2,050.0 1,739.6 Days…