Kosmos Energy secures liquidity headroom with Shell-backed term facility

(Sharecast News) - Upstream oil company Kosmos Energy said on Wednesday that it has successfully completed its semi-annual re-determination of its reserve-based lending facility. Kosmos said its borrowing base remains above the facility's $1.35bn size and stated the outcome of its re-determination reflected the "strength and resilience" of the assets underpinning the facility.

The London-listed firm also confirmed that it remained in full compliance with all liquidity and financial covenants tied to the RBL, including a liquidity test covering its 2027 unsecured notes, conducted alongside the re-determination in September. No further tests were scheduled until March 2026.

Separately, Kosmos reiterated that it had recently secured a senior term loan facility of up to $250m with Shell Trading and has issued a notice of partial redemption for $150m of its 2026 unsecured notes, to be funded by the first tranche of the Shell facility, with repayment expected to take place on 6 October. The remaining $100m was expected to be repaid ahead of maturity.

Kosmos added that it had taken advantage of the recent increase in oil prices to add more hedges for 2026, with the group now having 8.5m barrels of oil hedged for 2026 at an average floor of $66 per barrel.

Chief financial officer Neal Shah said: "In recent weeks, we have made significant progress across several financing areas, proactively securing additional liquidity and more downside protection in 2026 through our rolling hedging program at attractive prices.

"As we enter the fourth quarter, Kosmos will continue to prioritise the financial resilience of the company through the organic delivery of free cash flow from our high-quality assets and disciplined capital expenditure program."

As of 0925 BST, Kosmos shares were up 3.36% at 123p.

Reporting by Iain Gilbert at Sharecast.com