Kosmos Energy Ltd. (KOS)
NYSE:KOS
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Kosmos Energy
(NYSE:KOS)
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Rating:51Neutral
Price Target:
$3.00
▼(-3.23% Downside)
Action:ReiteratedDate:03/20/26
The score is held back primarily by weak financial performance (TTM net loss, negative free cash flow, and elevated leverage). Technicals are supportive with strong price trend and positive MACD, but overbought momentum increases pullback risk. Guidance and operational targets are credible but execution-dependent given covenant relief and recent underperformance, while recent financing improves flexibility but includes dilution.
Positive Factors
Reserve life & base
A multi‑year reserve base (2P ~500 MMboe; ~20‑year life and 1P ~10 years) provides durable production visibility and supports multi‑year capital planning. This underpins long‑term cash generation potential and justifies sustained investment in development projects.
Negative Factors
Weak profitability & cash flow
A recent swing to a material TTM net loss and negative free cash flow undermines self‑funding capacity. Persisting weak profitability forces reliance on external financing, heightens dilution/refinancing risk, and constrains long‑term reinvestment and reserve development.
Read all positive and negative factors
Positive Factors
Negative Factors
Reserve life & base
A multi‑year reserve base (2P ~500 MMboe; ~20‑year life and 1P ~10 years) provides durable production visibility and supports multi‑year capital planning. This underpins long‑term cash generation potential and justifies sustained investment in development projects.
Read all positive factors
Kosmos Energy (KOS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.84B
Dividend YieldN/A
Average Volume (3M)34.70M
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth-22.11%
EPS Growth-248.33%
CountryUS
Employees243
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.16
Shares Outstanding593,149,900
10 Day Avg. Volume29,678,703
30 Day Avg. Volume34,697,868
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.82
Price to Sales (P/S)0.33
P/FCF Ratio-2.41
Enterprise Value/Market Cap2.43
Enterprise Value/Revenue3.46
Enterprise Value/Gross Profit362.69
Enterprise Value/Ebitda14.60
Forecast
1Y Price Target
$2.71Price Target Upside-12.58% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$1.55B
Kosmos Energy Business Overview & Revenue Model
Company Description
Kosmos Energy Ltd., a deep-water independent oil and gas exploration and production company, focuses along the Atlantic Margins. The company's primary assets include production offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as wel...
How the Company Makes Money
Kosmos Energy makes money primarily by producing and selling hydrocarbons from its upstream oil and gas assets. Revenue is generated from (1) crude oil sales and (2) natural gas sales (including gas sold into domestic markets and/or into LNG value...
Kosmos Energy Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue by country or basin to show where production and sales originate, exposing geographical concentration or diversification. For Kosmos Energy, geographic revenue trends signal which assets are driving growth, where production additions matter most, and where political or logistical risks could dent top-line performance.
Breaks down revenue by country or basin to show where production and sales originate, exposing geographical concentration or diversification. For Kosmos Energy, geographic revenue trends signal which assets are driving growth, where production additions matter most, and where political or logistical risks could dent top-line performance.
Data provided by:
The Fly
The FlyKosmos Energy Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call presented a mix of operational progress and clear plans to lower costs and deleverage—Jubilee and GTA have shown strong early-2026 momentum, reserves and high-return drilling economics remain attractive, and management has taken proactive financing actions (Nordic bond, hedges, Equatorial Guinea sale). However, 2025 underperformance left net debt higher than planned, required covenant relief on the RBL, and triggered an impairment at Winterfell. The company's 2026 objectives are credible but execution-linked: if drilling, ramp-up, and asset-sale milestones are met, the outlook is constructive; if not, financial pressure could persist. Overall, positives and negatives are roughly balanced, leaving the tone cautiously constructive but still dependent on delivery.Positive Updates
Safe Operations and Strong Reserve Replacement
No lost-time or recordable injuries in 2025; 1P reserve replacement ~90% (~120% excluding assets sold in Equatorial Guinea), supporting a 1P reserve-to-production life of ~10 years and 2P reserve base ~500 MMboe (~20-year life).
Negative Updates
2025 Transitional Year — Slower Production Growth
Management described 2025 as a challenging transitional year; production growth came more slowly than expected and some targets were not met, contributing to higher net debt at year-end than planned.
Read all updates
Q4-2025 Updates
Positive
Negative
Safe Operations and Strong Reserve Replacement
No lost-time or recordable injuries in 2025; 1P reserve replacement ~90% (~120% excluding assets sold in Equatorial Guinea), supporting a 1P reserve-to-production life of ~10 years and 2P reserve base ~500 MMboe (~20-year life).
Read all positive updates
Company Guidance
Management’s 2026 guidance is focused and quantified: target ~15% production growth, ~20% reduction in total operating costs (OpEx per barrel down ~35%) and at least a 10% reduction in net debt. They plan ~ $350m CapEx (≈$300m asset spend + ~$40m for the TEN FPSO), are targeting >$100m of OpEx savings in 2026 (≈$250m pro forma after the Equatorial Guinea sale), and allocate ~70% of CapEx to Ghana and ~15% to the Gulf of America. Operationally Jubilee is guided to 70–80 kbbl/d gross (J‑74 ~13 kbbl/d; five more wells due this year; last 12 wells avg payback ~9 months, last two ~6 months; assumed decline ~20%; YTD voidage replacement ratio ~130%), GTA is averaging ~2.9 mtpa equivalent YTD (Dec hit 2.7–3.0 mtpa) and management is targeting 32–36 gross LNG cargoes plus 3 condensate cargoes in 2026 with OpEx per MMBtu down >50%. Financial moves include a $350m Nordic bond ($250m to repay 2027 notes, $100m to pay down the RBL), an RBL covenant waiver (mid‑2026 leverage test raised to 4.25x), hedges of 8.5m bbls for 2026 and 2.0m bbls for 2027 (2026 hedge exposure >50% post‑EG sale), and a stated plan to reduce net debt by ≥10% in 2026.Kosmos Energy Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
42
Neutral
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.68B | 1.70B | 2.25B | 1.33B |
| Gross Profit | -191.45M | 688.07M | 866.58M | 1.34B | 518.79M |
| EBITDA | 322.91M | 894.42M | 930.52M | 968.85M | 546.25M |
| Net Income | -699.79M | 189.85M | 213.52M | 226.55M | -77.84M |
Balance Sheet | |||||
| Total Assets | 4.70B | 5.31B | 4.94B | 4.58B | 4.94B |
| Cash, Cash Equivalents and Short-Term Investments | 91.52M | 84.97M | 95.34M | 183.41M | 131.62M |
| Total Debt | 3.06B | 2.76B | 2.39B | 2.23B | 2.62B |
| Total Liabilities | 4.17B | 4.11B | 3.91B | 3.79B | 4.41B |
| Stockholders Equity | 528.59M | 1.20B | 1.03B | 787.85M | 529.24M |
Cash Flow | |||||
| Free Cash Flow | -180.40M | -255.41M | -167.43M | 321.10M | -563.65M |
| Operating Cash Flow | 134.01M | 678.25M | 765.17M | 1.13B | 374.34M |
| Investing Cash Flow | -401.20M | -966.06M | -994.85M | -703.86M | -973.38M |
| Financing Cash Flow | 299.65M | 274.32M | 141.62M | -414.70M | 624.16M |
Kosmos Energy Technical Analysis
Positive
3.10
Price Trends
2.12
Positive
1.62
Positive
1.71
Positive
Market Momentum
0.21
Positive
61.57
Neutral
53.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOS, the sentiment is Positive. The current price of 3.1 is above the 20-day moving average (MA) of 2.63, above the 50-day MA of 2.12, and above the 200-day MA of 1.71, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 53.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOS.
Kosmos Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $723.54M | 28.68 | 3.86% | 11.72% | 6.23% | -64.88% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $1.09B | ― | 0.09% | ― | ― | ― | |
57 Neutral | $871.87M | 31.31 | 1.17% | 3.71% | -22.39% | -71.57% | |
51 Neutral | $1.84B | -0.62 | -79.00% | ― | -22.11% | -248.33% |
* Energy Sector Average
KOS
Kosmos Energy
3.10
1.39
81.29%
HPK
HighPeak Energy
7.05
-1.72
-19.57%
VTS
Vitesse Energy, Inc.
18.19
-1.13
-5.86%
TXO
TXO Energy Partners LP
12.58
-1.98
-13.58%
INR
Infinity Natural Resources, Inc. Class A
17.17
2.26
15.16%
Kosmos Energy Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Kosmos Energy Completes Major Equity Offering to Fund Growth
Positive
Mar 12, 2026
On March 10, 2026, Kosmos Energy Ltd. entered into an underwriting agreement with a syndicate led by Barclays Capital Inc. and Stifel, Nicolaus Company, Incorporated to issue and sell 97,500,000 shares of common stock in a registered public offer...
Business Operations and StrategyPrivate Placements and Financing
Kosmos Energy Reports Early Results of Debt Tender
Positive
Jan 29, 2026
On January 29, 2026, Kosmos Energy announced early tender results for its cash tender offer to repurchase up to $250 million of its outstanding 7.750% Senior Notes due 2027, launched under an offer to purchase dated January 12, 2026 and amended on...
Business Operations and StrategyPrivate Placements and Financing
Kosmos Energy Extends Early Tender Deadline for Notes
Neutral
Jan 26, 2026
On January 26, 2026, Kosmos Energy announced it is extending the Early Tender Time and Withdrawal Deadline for its cash tender offer of up to $250 million aggregate principal amount of its outstanding 7.750% Senior Notes due 2027, moving both cuto...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.