Kosmos Energy (KOS) AI Stock Analysis

• Market Cap: $741.29M
• Dividend Yield: N/A
• Average Volume (3M): 10.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -21.77%
• EPS Growth: -160.32%
• Country: US
• Employees: 243
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.19
• Shares Outstanding: 478,253,970
• 10 Day Avg. Volume: 9,074,656
• 30 Day Avg. Volume: 10,366,837
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.88
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 14.11
• Enterprise Value/Ebitda: 6.52
• 1Y Price Target: $2.85
• Price Target Upside: 86.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 52 Neutral
• Price Target: $1.50 ▼(-1.96% Downside)

Kosmos Energy's overall score is driven by financial challenges, including high leverage and negative profitability, which weigh heavily on the stock's outlook. Technical indicators suggest bearish momentum, while valuation concerns persist due to a negative P/E ratio. However, recent operational achievements and cost reductions provide some positive outlook, as highlighted in the earnings call.

Positive Factors

Operational Milestone

Achieving the COD for Gimi FLNG marks a significant operational milestone, enhancing Kosmos's production capacity and long-term revenue potential.

Cost Management

Significant CapEx reduction demonstrates effective cost management, improving financial resilience and allowing for reinvestment in growth initiatives.

Financial Strategy

Securing a term loan to address debt maturities enhances liquidity and financial flexibility, supporting long-term strategic goals.

Negative Factors

Revenue Decline

Declining revenue reflects challenges in maintaining market share and operational efficiency, potentially impacting long-term growth and profitability.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth or weather downturns.

Cash Flow Challenges

Negative cash flow indicates difficulties in generating surplus cash, which could hinder the company's ability to fund operations and strategic initiatives.

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 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 financial challenges, including declining revenue, negative profitability, and high leverage. Operational efficiency and cash generation have been pressured, necessitating strategic management to enhance stability and growth potential.

Income Statement

Kosmos Energy's revenue has shown volatility, with a decline in 2024 and 2025 compared to earlier years. The TTM period reflects a negative net income, affecting net profit margins adversely. EBIT and EBITDA margins have decreased over time, indicating pressure on operational efficiency. The revenue growth rate has been negative recently, highlighting challenges in maintaining top-line growth.

Balance Sheet

Kosmos Energy exhibits a high debt-to-equity ratio, suggesting significant leverage, which poses financial risk. The equity ratio shows a low proportion of equity financing, while return on equity has been inconsistent, impacted by fluctuating net income figures. The balance sheet indicates a need for careful management of debt levels to ensure financial stability.

Cash Flow

The company has experienced negative free cash flow in the recent TTM period, indicating challenges in generating surplus cash after capital expenditures. Operating cash flow relative to net income has weakened, reflecting inefficiencies in converting earnings into cash. These factors suggest limited financial flexibility and potential challenges in funding operations or growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.68B	1.70B	2.25B	1.33B	804.03M
Gross Profit	256.56M	573.01M	866.58M	1.34B	518.79M	-20.31M
EBITDA	555.47M	896.78M	930.52M	938.11M	531.63M	175.66M
Net Income	-159.95M	189.85M	213.52M	226.55M	-77.84M	-411.59M
Balance Sheet
Total Assets	5.21B	5.31B	4.94B	4.58B	4.94B	3.87B
Cash, Cash Equivalents and Short-Term Investments	51.69M	84.97M	95.34M	183.41M	131.62M	149.03M
Total Debt	250.00M	2.74B	2.39B	2.23B	2.62B	2.11B
Total Liabilities	4.20B	4.11B	3.91B	3.79B	4.41B	3.43B
Stockholders Equity	1.02B	1.20B	1.03B	787.85M	529.24M	440.15M
Cash Flow
Free Cash Flow	-289.77M	-255.41M	-167.43M	321.10M	-563.65M	-183.45M
Operating Cash Flow	181.14M	678.25M	765.17M	1.13B	374.34M	196.15M
Investing Cash Flow	-544.78M	-966.06M	-994.85M	-703.86M	-973.38M	-345.59M
Financing Cash Flow	239.62M	274.32M	141.62M	-414.70M	624.16M	69.86M

Kosmos Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.53
• 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 1.53 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.69, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 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
VTS	―	$834.44M	20.69	6.49%	10.28%	3.96%	29.26%
INR	―	$685.47M	―	―	―	―	―
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HPK	―	$800.94M	7.39	6.80%	2.52%	-20.30%	-27.90%
VTLE	―	$583.93M	―	-30.17%	―	5.26%	-309.56%
KOS	―	$741.29M	―	-14.81%	―	-21.77%	-160.32%

Kosmos Energy Corporate Events

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.

Kosmos Energy’s Mixed Earnings Call: Milestones and Challenges

Kosmos Energy’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. While the company celebrated significant achievements, such as reaching key production milestones and reducing costs, it also faced challenges, including lower-than-expected production outcomes in certain fields and ongoing debt management efforts. Despite positive strides, operational setbacks tempered the overall sentiment of the call.

Kosmos Energy Reports Q2 2025 Results Amid Operational Milestones

Kosmos Energy Ltd. is a deepwater exploration and production company operating in the oil and gas sector, with diversified assets offshore in regions such as Ghana, Equatorial Guinea, Mauritania, Senegal, and the Gulf of America.

Kosmos Energy Reports Q2 2025 Loss Amid Operational Milestones

Kosmos Energy reported a net loss of $88 million for the second quarter of 2025, with adjusted net loss standing at $93 million. Despite the financial setback, the company achieved significant operational milestones, including the successful commencement of commercial operations on the Gimi floating LNG vessel at the GTA project. The company is focused on increasing production, reducing costs, and enhancing balance sheet resilience, with production expected to rise as more wells are brought online. Kosmos has revised its capital expenditure guidance down to $350 million for the year, reflecting efforts to lower costs. The company is also actively managing its financial position through hedging strategies and a new term loan facility to support its operations and debt repayments.