Shares of Kosmos Energy (KOS) plunged 5.13% in pre-market trading on Monday after the deepwater oil and gas exploration company reported disappointing second-quarter results and lowered its full-year guidance. The company's financial performance fell short of analyst expectations, prompting concerns about its near-term outlook.

Kosmos reported an adjusted net loss of $0.19 per share for Q2 2025, significantly missing the analyst consensus estimate of a $0.07 per share loss. This represented a stark reversal from the $0.17 per share profit recorded in the same period last year. Revenue for the quarter came in at $393.5 million, falling short of the $415.09 million expected by analysts and marking a 12.73% decrease from the previous year.

The company's operational performance also raised concerns. Net production averaged approximately 63,500 barrels of oil equivalent per day (boepd) in Q2, below the company's previous guidance. As a result, Kosmos lowered its full-year 2025 production guidance to between 65,000 and 70,000 boepd, citing slower ramp-up at its Greater Tortue Ahmeyim (GTA) project and lower production at the Jubilee field in Ghana.

In response to the challenging environment, Kosmos has reduced its capital expenditure forecast for the year from $400 million to $350 million. The company also reported exiting Q2 with about $2.85 billion of net debt, highlighting ongoing financial pressures. Despite these headwinds, management emphasized its focus on increasing production, reducing costs, and enhancing balance sheet resilience for the remainder of the year.