Management characterized 2025 as a 'challenging transitional year' where production growth and debt reduction lagged initial expectations, though it established a platform for 2026 delivery.

The Ghana portfolio was high-graded through license extensions to 2040 and the strategic decision to purchase the TEN FPSO, which shifts lease payments to capital expenditure to lower future OpEx.

Greater Tortue Ahmadjian (GTA) achieved a critical milestone in December, reaching its 2.7 MTPA nameplate capacity and demonstrating operational stability after a steady ramp-up period.

The divestment of Equatorial Guinea assets is a deliberate move to exit high-operating-cost barrels and accelerate the transition to a lower-cost, higher-margin production base.

Jubilee's production recovery to over 70,000 bopd was driven by a return to active drilling, with new wells showing rapid paybacks of six to nine months.

Management attributes improved drilling confidence to the integration of 4D and OBN seismic data, allowing for better identification of bypassed oil pockets in the core of the field.

The company is targeting 15% year-on-year production growth, primarily underpinned by the full-year contribution of GTA and five additional wells at Jubilee.

A 20% reduction in total operating costs is projected for 2026, driven by the elimination of GTA start-up costs, FPSO refinancing, and the Equatorial Guinea exit.

Capital allocation is strictly prioritized toward near-term, high-return oil projects, with the flexibility to defer capital-intensive developments until leverage targets are met.

Guidance for GTA assumes seasonal production fluctuations, with higher cargo counts expected in Q1 and Q4 due to cooler weather enhancing liquefaction efficiency.

The 2026 debt reduction target of at least 10% is contingent on the closing of the Equatorial Guinea sale and free cash flow generation at current commodity prices.

An impairment was taken on the Winterfell asset in the Gulf of Mexico following a fair value assessment and challenges in drilling and completion performance.

A leverage covenant waiver was secured for year-end 2025 and midyear 2026 to provide 'runway' for metrics to normalize as GTA cash flows materialize.

The purchase of the TEN FPSO will result in a significant OpEx-to-CapEx reclassification in 2026 before lease payments are eliminated entirely in early 2027.

Management flagged a 20% assumed decline rate for the Jubilee field, though current performance is exceeding this due to a high voidage replacement ratio of 130%.

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Management explained that while a rule of thumb for back-out is 2,500 bopd for a 10,000 bopd well, recent wells like J-74 had near-zero cannibalization due to new riser capacity.

Future well performance is modeled based on specific gas-oil ratios and infrastructure pressure relief rather than a flat percentage.

The leverage covenant was temporarily raised from 3.5x to 4.25x to accommodate 2025 underperformance and lower oil prices.

Management expects to be back under original leverage targets by year-end 2026 as the GTA ramp-up is fully reflected in trailing twelve-month calculations.

The alliance focuses on 'infrastructure-led exploration' (ILX), leveraging Shell's Appomattox host facility and deep knowledge of the Norphlet play.

The partnership allows Kosmos to high-grade its inventory and share drilling risks, with the first joint prospect, Trailblazer, planned for 2027.

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