06:24 AM EDT, 08/04/2025 (MT Newswires) -- Kosmos Energy ( KOS ) reported a wider-than-expected second-quarter loss on Monday amid lower-than-projected oil output, prompting the company to curb its production outlook for the year.

The deep water oil and gas production firm reported an adjusted loss of $0.19 a share for the June quarter, compared with earnings of $0.17 the year before. The consensus on FactSet was for a non-GAAP loss of $0.07 per share. Revenue fell to $393.5 million from $450.9 million, just ahead of the Street's view for $403.5 million.

Oil-equivalent production came in at about 63,500 barrels per day, below the guidance issued for the quarter of 66,000 to 72,000 barrels. That was impacted by the ramp-up timing on the Greater Tortue Ahmeyim liquefied natural gas project and lower output at the company's Jubilee plant in Ghana, Kosmos said. The firm said it ended the quarter with a net underlift position of around 300,000 barrels. Underlift refers to when a partner in an oil and gas project takes less than their share based on ownership stakes.

"We set out this year with three clear priorities: increase production, reduce costs and enhance the resilience of the balance sheet," Chief Executive Andrew Inglis said in a statement. "During the period we have continued to make good progress across all three areas."

Second-quarter costs and expenses widened to $457.3 million from $315.8 million year over year. Net capital expenditure was $86 million, below the company's expectations of $120 million to $140 million, mainly due to lower spending in Mauritania and Senegal and in the Gulf of America.

For full-year 2025, Kosmos now anticipates production to be between 65,000 and 70,000 barrels of oil equivalent per day, down from its previous forecast of 70,000 to 80,000 barrels. The revised outlook reflects the slower Greater Tortue Ahmeyim ramp up and lower Jubilee production, according to the company.

"On costs, we have lowered our capital budget for the year from $400 million to around $350 million and are working hard to reduce operating costs across the portfolio, namely on GTA through the (floating production storage and offloading) re-financing and through exploring lower-cost operating models with our partners," Inglis said. "We also remain on track to deliver the targeted $25 million of overhead reduction by year-end."

For the ongoing three-month period, the company estimates production to be between 65,000 and 71,000 barrels of oil equivalent per day.

Kosmos said it added more hedges during the previous and current quarters, amid periods of higher oil prices, as it sought to provide downside protection against a volatile backdrop. The company now has 5 million barrels of remaining oil production for 2025 hedged with a floor of roughly $62 per barrel and ceiling of about $77 a barrel. The firm also began hedging next year's oil production with 7 million barrels, aiming to hedge about about 50% of 2026's output by the end of this year.