Kosmos Energy (KOS) AI Stock Analysis

• Market Cap: $521.38M
• Dividend Yield: N/A
• Average Volume (3M): 11.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• 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: 13,134,967
• 30 Day Avg. Volume: 11,572,116
• 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: 7.11
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 14.06
• Enterprise Value/Ebitda: 8.18
• 1Y Price Target: $2.42
• Price Target Upside: 134.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-2.91% Downside)

Kosmos Energy's overall stock score reflects significant financial and technical challenges, with declining revenues, profitability pressures, and bearish technical indicators. However, the positive sentiment from the earnings call, driven by production increases and cost reductions, provides some optimism. The negative valuation metrics further weigh down the score.

Positive Factors

Production Increases

Increased production at key fields like Jubilee and GTA demonstrates Kosmos Energy's ability to enhance output, which is crucial for long-term revenue growth and market competitiveness.

Cost Reductions

Significant reductions in capital and operating expenses enhance Kosmos Energy's profitability and cash flow, providing a more sustainable financial footing and operational efficiency.

Balance Sheet Enhancements

Securing a term loan and maintaining a strong borrowing base improves Kosmos Energy's financial stability and flexibility, crucial for managing debt and funding future growth.

Negative Factors

Declining Revenues

A decline in revenue indicates challenges in market demand or operational execution, potentially impacting long-term growth and profitability if not addressed.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and financial strain, which can undermine Kosmos Energy's ability to reinvest in growth and maintain competitive positioning.

Cash Flow Challenges

Significant declines in free cash flow highlight liquidity issues, limiting Kosmos Energy's capacity to fund operations, service debt, and invest in growth opportunities.

Kosmos Energy Business Overview & Revenue Model

Company Description

Kosmos Energy Ltd. is an international oil and gas exploration and production company based in Dallas, Texas. The company focuses on the development of oil and natural gas resources in various regions, particularly offshore West Africa and the Gulf of Mexico. Kosmos is known for its expertise in deepwater exploration and production, leveraging advanced technologies to locate and extract hydrocarbons. The company operates in both the upstream sector, engaging in the exploration and production of oil and gas, and has interests in various fields and projects that contribute to its portfolio.

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

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: 1.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.03 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.42, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 30.91 is Neutral, neither overbought nor oversold. The STOCH value of 25.96 is Neutral, 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	68 Neutral	$910.73M	―	-2.91%	―	―	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HPK	61 Neutral	$676.91M	15.06	2.83%	2.86%	-22.39%	-71.57%
VTS	59 Neutral	$852.75M	46.10	3.50%	9.98%	6.23%	-64.88%
VTLE	51 Neutral	$733.95M	―	-54.63%	―	1.85%	-333.76%
KOS	47 Neutral	$521.38M	―	-31.42%	―	-22.11%	-248.33%

Kosmos Energy Corporate Events

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.