Kosmos Energy (KOS) AI Stock Analysis

• Market Cap: $813.16M
• Dividend Yield: N/A
• Average Volume (3M): 16.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• 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: 15,096,187
• 30 Day Avg. Volume: 16,682,625
• 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: 4.87
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 15.00
• Enterprise Value/Ebitda: 8.73
• 1Y Price Target: $1.94
• Price Target Upside: 9.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.19
• Revenue Forecast (FY): $1.46B

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-15.25% Downside)

The score is held back primarily by weak financial performance (losses, falling revenue, and sharply lower free cash flow). Offsetting factors include a near-term technical uptrend with positive momentum, and a more constructive earnings outlook driven by CapEx cuts, cost reductions, and balance-sheet/risk-management actions, though overbought signals and ongoing operational issues keep risk elevated.

Positive Factors

Improving leverage and active liability management

Lower leverage materially reduces refinancing and solvency risk over the medium term, improving financial flexibility to fund operations or opportunistic investments. Combined with recent liability actions, this strengthens the company’s ability to manage maturities and lowers structural balance-sheet risk.

Production ramp at Jubilee and GTA

Sustained production increases across core assets bolster predictable mid‑term cash generation and diversify revenue between oil and LNG. Successful well ramping and cargo lifts indicate the company can scale output from existing discoveries, supporting longer-term revenue stability and project economics.

Structural cost and capital discipline

Material CapEx cuts and large operating cost reductions reduce funding needs and improve near‑term free cash flow potential. Combined with meaningful 2026 hedges, these measures lower revenue volatility and extend runway, making internal cash generation more resilient through commodity cycles.

Negative Factors

Sustained negative profitability

Persistent negative margins erode equity and hinder the company's ability to self‑fund growth or absorb shocks. Until margins return to positive and gross margins stabilize, Kosmos will face structural pressure on returns, investor capital preservation, and reinvestment capacity over the coming months.

Severe free cash flow deterioration

A sharp FCF decline and weak operating cash conversion indicate limited internal liquidity to fund capex or service debt without external financing. This structural cash‑generation weakness increases reliance on credit facilities and liability management, raising refinancing and funding risk over the medium term.

Operational execution and reliability risks

Major well abandonment and prolonged subsea equipment failures create lasting execution risk, raising development costs and schedule uncertainty. With normalization not expected until H1 2026 in some areas, asset downtime can materially reduce near‑term production and cash flow visibility for several quarters.

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 well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program. The company was founded in 2003 and is headquartered in Dallas, Texas.

How the Company Makes Money

Kosmos Energy primarily generates revenue through the exploration, development, and production of crude oil and natural gas. The company's revenue model is largely based on the sale of these hydrocarbons, which it extracts from its offshore drilling sites. Key revenue streams include sales of crude oil, natural gas, and natural gas liquids to various customers, including refineries and energy companies. Additionally, Kosmos may enter into joint ventures and partnerships with other energy firms to share the risks and costs associated with exploration and production, further enhancing its earning potential. The company also benefits from favorable market conditions for oil and gas prices, as well as operational efficiencies that can lower production costs and increase profit margins.

Kosmos Energy Financial Statement Overview

Summary

Weak profitability and cash generation drive the score: net margin is -23.64% with declining revenue (-6.49%) and a negative EBIT margin. Free cash flow fell 75.63% and operating cash flow appears insufficient versus losses. Balance sheet leverage has improved (debt-to-equity 0.28), but ROE is deeply negative (-31.24%) and the equity ratio (17.65%) remains a constraint.

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: Positive
• Last Price: 1.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.77 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.22, and above the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 72.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
INR	62 Neutral	$993.52M	―	-2.91%	―	―	―
VTS	59 Neutral	$855.85M	46.27	3.50%	11.72%	6.23%	-64.88%
HPK	56 Neutral	$658.08M	14.64	2.83%	3.71%	-22.39%	-71.57%
KOS	49 Neutral	$813.16M	―	-31.42%	―	-22.11%	-248.33%

Kosmos Energy Corporate Events

Kosmos Energy Reports Early Results of Debt Tender

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 January 26, 2026. As of the early tender deadline of 5:00 p.m. New York City time on January 28, 2026, holders had validly tendered and not withdrawn $182.457 million in aggregate principal of the notes, all of which the company elected to accept at total consideration of $990 per $1,000 principal amount, excluding accrued interest, with settlement expected on or about February 3, 2026 upon satisfaction of escrow release conditions, signaling a meaningful step in Kosmos’s ongoing debt management and balance sheet optimization efforts.

The most recent analyst rating on (KOS) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Kosmos Energy stock, see the KOS Stock Forecast page.

Kosmos Energy Extends Early Tender Deadline for Notes

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 cutoffs from 5:00 p.m. New York City time on January 26, 2026, to 5:00 p.m. on January 28, 2026. The extension gives noteholders additional time to tender their securities while still qualifying for the total consideration, potentially supporting Kosmos Energy’s liability management efforts and altering the timing and scale of its near-term debt reduction.

The most recent analyst rating on (KOS) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Kosmos Energy stock, see the KOS Stock Forecast page.