Kosmos Energy (KOS) AI Stock Analysis

• Market Cap: $655.31M
• Dividend Yield: N/A
• Average Volume (3M): 9.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -22.11%
• EPS Growth: -248.33%
• Country: US
• Employees: 243
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.15
• Shares Outstanding: 478,326,970
• 10 Day Avg. Volume: 9,427,496
• 30 Day Avg. Volume: 9,979,942
• PEG Ratio: -0.65
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -6.30
• Enterprise Value/Market Cap: 5.66
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 14.06
• Enterprise Value/Ebitda: 8.18
• 1Y Price Target: $2.48
• Price Target Upside: 81.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.5
• Revenue Forecast (FY): $1.41B

• Rating: 49 Neutral
• Price Target: $1.50 ▲(9.49% Upside)

Kosmos Energy's overall stock score reflects significant financial challenges, with declining revenues and profitability pressures. Technical analysis shows bearish momentum, while valuation metrics are unattractive due to ongoing losses. However, the earnings call provided a positive outlook with production increases and cost reductions, which partially offset the negative aspects. The company needs to address its financial weaknesses to improve its stock performance.

Positive Factors

Production Increases

Increased production at key fields like Jubilee and GTA enhances revenue potential and operational scale, supporting long-term growth.

Cost Reductions

Significant cost reductions in CapEx and operating expenses improve profitability and free cash flow, strengthening financial health.

Balance Sheet Enhancements

Securing a term loan and maintaining a strong borrowing base enhances liquidity and financial flexibility, supporting strategic initiatives.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or operational execution, potentially impacting long-term growth and profitability.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies, which can hinder the company's ability to generate sustainable profits.

Cash Flow Weaknesses

Significant declines in free cash flow suggest liquidity challenges, limiting the company's ability to invest in growth opportunities.

Kosmos Energy Business Overview & Revenue Model

Company Description

Kosmos Energy Ltd. is an independent oil and gas exploration and production company focused on offshore resources. Headquartered in Dallas, Texas, Kosmos operates primarily in the deepwater basins of West Africa and the Gulf of Mexico, with a portfolio that includes significant development projects and exploration activities. The company aims to leverage its technical expertise and innovative approaches to unlock value from high-potential reservoirs, primarily through oil and gas production.

How the Company Makes Money

Kosmos Energy generates revenue primarily through the production and sale of crude oil and natural gas. The company earns money by operating oil and gas fields, selling the extracted hydrocarbons to refiners and distributors at market rates. Key revenue streams include production from its operated fields, as well as royalties and production-sharing agreements with host governments in the countries where it operates. Additionally, Kosmos engages in joint ventures and partnerships with other energy companies, which can provide shared resources and reduce operational costs, further enhancing profitability. Factors contributing to its earnings include fluctuating commodity prices, operational efficiency, and successful exploration results that lead to new production opportunities.

Kosmos Energy Financial Statement Overview

Summary

Kosmos Energy faces considerable financial challenges, with declining revenues and profitability pressures evident in the income statement. While the balance sheet shows some improvement in leverage, the negative return on equity and low equity ratio are concerning. Cash flow metrics further underscore liquidity issues, with significant declines in free cash flow. The company needs to address these financial weaknesses to enhance stability and growth prospects.

Income Statement

Kosmos Energy's income statement reflects significant challenges. The TTM data shows a negative net profit margin of -23.64%, indicating substantial losses. Revenue has declined by 6.49% compared to the previous period, and gross profit margin has decreased to 18.08% from 34.20% in the last annual report. The EBIT margin has also turned negative, highlighting operational inefficiencies. Despite these challenges, the EBITDA margin remains relatively healthy at 28.75%, suggesting some resilience in cash-generating capabilities.

Balance Sheet

The balance sheet reveals a mixed picture. The debt-to-equity ratio has improved to 0.28 in the TTM period, indicating reduced leverage compared to previous years. However, the return on equity is negative at -31.24%, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio stands at 17.65%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows significant weaknesses. Free cash flow has declined by 75.63% in the TTM period, and the free cash flow to net income ratio is negative, indicating cash outflows relative to net losses. The operating cash flow to net income ratio is 0.39, suggesting that operating cash flows are insufficient to cover net losses. These metrics highlight potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	1.68B	1.70B	2.25B	1.33B	804.03M
Gross Profit	263.79M	688.07M	866.58M	1.34B	518.79M	-20.31M
EBITDA	453.45M	894.42M	930.52M	968.85M	546.25M	180.73M
Net Income	-329.22M	189.85M	213.52M	226.55M	-77.84M	-411.59M
Balance Sheet
Total Assets	5.09B	5.31B	4.94B	4.58B	4.94B	3.87B
Cash, Cash Equivalents and Short-Term Investments	64.03M	84.97M	95.34M	183.41M	131.62M	149.03M
Total Debt	2.99B	2.76B	2.39B	2.23B	2.62B	2.10B
Total Liabilities	4.19B	4.11B	3.91B	3.79B	4.41B	3.43B
Stockholders Equity	898.79M	1.20B	1.03B	787.85M	529.24M	440.15M
Cash Flow
Free Cash Flow	-59.73M	-255.41M	-167.43M	321.10M	-563.65M	-183.45M
Operating Cash Flow	274.46M	678.25M	765.17M	1.13B	374.34M	196.15M
Investing Cash Flow	-522.17M	-966.06M	-994.85M	-703.86M	-973.38M	-345.59M
Financing Cash Flow	273.89M	274.32M	141.62M	-414.70M	624.16M	69.86M

Kosmos Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOS, the sentiment is Negative. The current price of 1.37 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.60, and below the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOS.

Kosmos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INR	73 Outperform	$816.98M	―	-2.91%	―	―	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HPK	61 Neutral	$752.27M	16.73	2.83%	3.05%	-22.39%	-71.57%
VTS	59 Neutral	$817.17M	44.18	3.50%	10.28%	6.23%	-64.88%
VTLE	56 Neutral	$650.76M	-0.49	-54.63%	―	1.85%	-333.76%
KOS	49 Neutral	$655.31M	―	-31.42%	―	-22.11%	-248.33%

Kosmos Energy Corporate Events

Kosmos Energy’s Earnings Call: Production Up, Costs Down

Kosmos Energy Ltd’s recent earnings call painted a generally positive picture, highlighting substantial progress in production and cost management, despite some operational setbacks. The company’s strategic focus on increasing production and reducing costs has overshadowed challenges faced in specific projects, leading to an optimistic outlook for the future.

Kosmos Energy Reports Q3 2025 Financial Results

Kosmos Energy Ltd. is a deepwater exploration and production company with operations in offshore Ghana, Equatorial Guinea, Mauritania, Senegal, and the Gulf of America, focusing on oil and gas production and development opportunities.

Kosmos Energy Reports Third Quarter 2025 Results with Strategic Focus on Growth and Cost Reduction

Kosmos Energy reported a net loss of $124 million for the third quarter of 2025, with an adjusted net loss of $72 million. Despite the financial loss, the company achieved a 3% increase in net production, reaching approximately 65,500 barrels of oil equivalent per day. The company is focusing on increasing production, reducing costs, and enhancing balance sheet resilience. Key developments include the operational ramp-up of the Greater Tortue Ahmeyim LNG project, a senior secured term loan with Shell, and ongoing drilling campaigns in Ghana. Kosmos is also actively managing its financial obligations and hedging strategies to mitigate commodity price volatility, aiming for long-term value creation through strategic production growth and cost management.

Kosmos Energy Reports Q3 2025 Results with Focus on Production Growth and Cost Reduction

Kosmos Energy reported a net loss of $124 million for the third quarter of 2025, with an adjusted net loss of $72 million. Despite the financial loss, the company increased its net production by 3% to approximately 65,500 barrels of oil equivalent per day, driven by the ramp-up at the Greater Tortue Ahmeyim (GTA) LNG project and increased production at Jubilee. The company has focused on reducing costs, with capital expenditures expected to be below $350 million for the year, and has taken steps to enhance its balance sheet by securing a $250 million loan from Shell. Kosmos is also advancing its hedging program to protect against commodity price volatility, with significant portions of its 2025 and 2026 oil production hedged. The company remains committed to long-term value creation through production growth, cost reduction, and debt repayment.

Kosmos Energy to Announce Q3 2025 Results and Host Webcast

Kosmos Energy announced it will release its third quarter 2025 results on November 3, 2025, before the UK market opens. The company will also host a conference call and webcast on the same day to discuss these results, providing stakeholders with insights into its operational performance and strategic direction. This announcement is significant as it provides an opportunity for investors and analysts to assess the company’s financial health and market positioning.

Kosmos Energy Secures New Loan Agreement with Shell

On September 24, 2025, Kosmos Energy Ltd. announced that its subsidiary, Kosmos Energy Gulf of Mexico Operations, LLC, entered into a Senior Secured Term Loan Credit Agreement with Shell Trading (US) Company and Ankura Trust Company, LLC. The agreement includes a term loan facility structured in two tranches, with the first tranche of $150 million to be funded on October 1, 2025, and a second tranche of up to $100 million available until April 1, 2026. The proceeds will be used to repay the company’s outstanding senior notes due in 2026, and for working capital and general operating expenses. This agreement is expected to impact the company’s financial flexibility and operational funding in the Gulf of Mexico, with implications for its debt management and strategic positioning in the energy market.

The most recent analyst rating on (KOS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Kosmos Energy stock, see the KOS Stock Forecast page.

Kosmos Energy Secures $250 Million Loan Facility with Shell

Kosmos Energy has entered into a senior secured term loan facility with Shell Trading (US) Company for up to $250 million, with funding expected on October 1, 2025. This facility will be used to repay outstanding unsecured notes, enhancing the company’s financial resilience amid volatile commodity prices. The loan is structured in two tranches, with the first $150 million tranche to be drawn at closing and a second $100 million tranche available until April 2026. This move aligns with Kosmos’ strategy to organically reduce net debt through free cash flow generation while strengthening its strategic relationship with Shell in the Gulf of America.

Kosmos Energy Announces CCO Retirement and Leadership Change

On August 19, 2025, Kosmos Energy Ltd. announced that Christopher J. Ball, the Chief Commercial Officer, will retire effective September 30, 2025. His responsibilities will be taken over by Neal D. Shah, the current Chief Financial Officer. Following his retirement, Mr. Ball will continue to provide advisory services to the company under an Advisory Agreement, for which he will be compensated. This transition marks a significant change in the company’s leadership structure, potentially impacting its commercial operations and strategic direction.

The most recent analyst rating on (KOS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Kosmos Energy stock, see the KOS Stock Forecast page.