Kosmos Energy (KOS) AI Stock Analysis

• Market Cap: $860.86M
• Dividend Yield: N/A
• Average Volume (3M): 8.99M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.14
• Revenue Growth: -21.77%
• EPS Growth: -160.32%
• Country: US
• Employees: 243
• Sector: Energy
• Sector Strength: 57
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.19
• Shares Outstanding: 478,253,970
• 10 Day Avg. Volume: 9,285,947
• 30 Day Avg. Volume: 8,993,499
• 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: 4.21
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 14.11
• Enterprise Value/Ebitda: 6.52
• 1Y Price Target: $2.96
• Price Target Upside: 61.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 53 Neutral
• Price Target: $2.00 ▲(9.29% Upside)

Kosmos Energy's overall score is primarily impacted by financial challenges, including high leverage and negative profitability. While the earnings call provided positive operational updates, technical indicators and valuation metrics remain weak, contributing to a lower score.

Positive Factors

Financial Stability

The agreement offers a guaranteed reimbursement mechanism for gas sales, ensuring financial stability.

Operations Expansion

KOS and operator, Tullow, entered into a MOU to extend Ghana licenses to 2040, which ensures longer-term operations in a key region.

Project Performance

Tortue project is performing ahead of expectations, potentially leading to lower capital expenditures in future phases.

Negative Factors

Cost Challenges

The recommendation has been downgraded to HOLD from BUY due to surprising cost increases and information lag from non-operator status.

Reserve Decline

Reserves for 2024 have declined by 10%, which was unexpected as flat reserves were anticipated.

Valuation Concerns

Remain HOLD rated on valuation, suggesting limited immediate upside potential.

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 is facing financial challenges with declining revenue, high leverage, and negative cash flow. Operational efficiency and cash generation are under pressure, necessitating strategic financial 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: Neutral
• Last Price: 1.83
• 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 Neutral. The current price of 1.83 is above the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.96, and below the 200-day MA of 2.51, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 78.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KOS.

Kosmos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTS	77 Outperform	$1.02B	25.45	6.49%	8.11%	3.96%	29.26%
GRNT	69 Neutral	$744.18M	23.28	4.90%	7.99%	9.54%	-42.85%
INR	66 Neutral	$861.40M	―		―	―	―
Sector *	65 Neutral	$15.26B	7.31	3.02%	5.32%	4.27%	-62.52%
KOS	53 Neutral	$860.86M	4.03	-14.81%	―	-21.77%	-160.32%
CLMT	47 Neutral	$1.39B	―	31.18%	―	-4.57%	-1574.88%
TXO	―	$762.60M	45.26	1.92%	15.96%	―	―

Kosmos Energy Corporate Events

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.

Kosmos Energy Holds Annual Stockholders Meeting

On June 5, 2025, Kosmos Energy Ltd. held its Annual Meeting of Stockholders, where 89.27% of the shares were represented. During the meeting, three Class III directors were elected to serve until 2028, Ernst & Young LLP was ratified as the independent accounting firm for 2025, and executive officer compensation was approved in a non-binding advisory vote. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future financial and strategic direction.