Legal & General Group Plc acquired a new position in Kosmos Energy Ltd. (NYSE:KOS – Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 351,680 shares of the oil and gas producer’s stock, valued at approximately $742,000. Legal & General Group Plc owned 0.06% of Kosmos Energy as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other large investors have also made changes to their positions in KOS. Equinox Partners Investment Management LLC grew its holdings in Kosmos Energy by 6.2% in the 1st quarter. Equinox Partners Investment Management LLC now owns 20,678,033 shares of the oil and gas producer’s stock valued at $57,485,000 after buying an additional 1,208,053 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Kosmos Energy by 2.0% during the third quarter. Vanguard Group Inc. now owns 14,320,597 shares of the oil and gas producer’s stock worth $23,772,000 after buying an additional 286,593 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Kosmos Energy by 19.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 12,045,593 shares of the oil and gas producer’s stock worth $10,930,000 after buying an additional 1,962,936 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Kosmos Energy by 8.0% in the fourth quarter. Geode Capital Management LLC now owns 11,272,318 shares of the oil and gas producer’s stock valued at $10,230,000 after acquiring an additional 832,029 shares during the period. Finally, Invesco Ltd. boosted its position in shares of Kosmos Energy by 3.0% in the third quarter. Invesco Ltd. now owns 9,903,093 shares of the oil and gas producer’s stock valued at $16,439,000 after acquiring an additional 289,626 shares during the period. Institutional investors and hedge funds own 95.33% of the company’s stock.
Insider Activity In related news, CFO Nealesh D. Shah sold 45,980 shares of the company’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $2.05, for a total value of $94,259.00. Following the sale, the chief financial officer owned 1,935,410 shares of the company’s stock, valued at $3,967,590.50. The trade was a 2.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew G. Inglis sold 85,935 shares of the stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total transaction of $176,166.75. Following the completion of the transaction, the chief executive officer directly owned 4,678,043 shares of the company’s stock, valued at $9,589,988.15. This trade represents a 1.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 169,012 shares of company stock worth $346,475. 1.90% of the stock is currently owned by corporate insiders.
Analyst Ratings Changes KOS has been the topic of a number of research reports. Mizuho raised shares of Kosmos Energy to a “strong sell” rating in a research report on Friday, July 31st. Stephens reduced their price target on shares of Kosmos Energy from $3.00 to $2.40 and set an “equal weight” rating for the company in a report on Tuesday, July 21st. Royal Bank Of Canada lowered shares of Kosmos Energy to a “neutral” rating in a research report on Wednesday, May 27th. Wall Street Zen upgraded shares of Kosmos Energy from a “buy” rating to a “strong-buy” rating in a report on Saturday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Kosmos Energy in a report on Monday, August 3rd. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $2.53. Read Our Latest Report on KOS
Kosmos Energy Stock Performance KOS opened at $2.79 on Tuesday. The stock has a market cap of $1.66 billion, a PE ratio of -2.34, a P/E/G ratio of 0.21 and a beta of 0.73. The company has a current ratio of 0.59, a quick ratio of 0.38 and a debt-to-equity ratio of 3.58. Kosmos Energy Ltd. has a 1 year low of $0.84 and a 1 year high of $3.34. The stock’s 50 day simple moving average is $2.53 and its 200-day simple moving average is $2.62.
Kosmos Energy (NYSE:KOS – Get Free Report) last issued its earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 EPS for the quarter, topping the consensus estimate of $0.09 by $0.02. The firm had revenue of $607.25 million during the quarter, compared to analysts’ expectations of $483.23 million. Kosmos Energy had a negative return on equity of 17.73% and a negative net margin of 33.98%. Sell-side analysts forecast that Kosmos Energy Ltd. will post 0.45 EPS for the current year.
Kosmos Energy Company Profile (Free Report)
Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities.
The company’s portfolio is anchored by assets in West Africa and the Gulf of Mexico.
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Kosmos Energy (KOS - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Kosmos Energy is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Kosmos Energy imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Kosmos EnergyThis independent oil and gas company is expected to earn $0.45 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Kosmos Energy. Over the past three months, the Zacks Consensus Estimate for the company has increased 87.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Kosmos Energy to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Kosmos Energy (KOS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.
Kosmos Energy is one of 251 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Kosmos Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for KOS' full-year earnings has moved 87.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, KOS has moved about 222.9% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 33.6% on average. This means that Kosmos Energy is outperforming the sector as a whole this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Oceaneering International (OII - Free Report) . The stock is up 114.9% year-to-date.
For Oceaneering International, the consensus EPS estimate for the current year has increased 11.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Kosmos Energy belongs to the Oil and Gas - Exploration and Production - International industry, which includes 9 individual stocks and currently sits at #211 in the Zacks Industry Rank. On average, stocks in this group have gained 81.7% this year, meaning that KOS is performing better in terms of year-to-date returns.
In contrast, Oceaneering International falls under the Oil and Gas - Field Services industry. Currently, this industry has 19 stocks and is ranked #159. Since the beginning of the year, the industry has moved +45.8%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Kosmos Energy and Oceaneering International as they could maintain their solid performance.
The Zacks Oil and Gas - Exploration and Production - International industry is navigating a mixed operating environment. Firm crude and European gas prices are supporting producer cash flows as geopolitical tensions and tight regional supplies keep energy markets relatively strong. However, rising costs, currency movements and limited drilling equipment are making projects more expensive, while heavier taxes in some regions can weaken returns and redirect investment elsewhere. Exploration uncertainty adds another layer of risk. The industry’s Zacks Rank places it in the bottom half of Zacks industries, pointing to a cautious near-term outlook despite strong one-year price performance. Its valuation also remains below both the broader sector and the S&P 500, suggesting that investors should be selective rather than broadly bullish. Even so, individual opportunities remain. EnQuest PLC (ENQUF - Free Report) , Kosmos Energy (KOS - Free Report) and Harbour Energy (HBRIY - Free Report) stand out through strong earnings growth expectations, portfolio development opportunities and disciplined investment strategies.
Industry Overview The Zacks Oil and Gas - International E&P industry consists of companies primarily operating outside the United States and focused on the exploration and production (E&P) of oil and natural gas. These firms find hydrocarbon reservoirs, drill oil and gas wells, and produce and sell these materials to be refined later into products such as gasoline, fuel oil, distillate, etc. The economics of oil and gas supply and demand are the fundamental drivers of this industry. In particular, a producer’s cash flow is determined by realized commodity prices. In fact, all E&P companies are vulnerable to historically volatile prices in the energy markets. A change in realizations affects their returns on drilling inventory and causes them to alter production growth rates. These operators are also exposed to exploration risks where drilling results are uncertain.
3 Key Investing Trends to Watch in the Oil and Gas - International E&P Industry Rising Costs Are Making Some Projects More Expensive: The industry is facing pressure from inflation, currency movements and a tighter market for drilling equipment and services. These factors can raise the cost of running existing fields as well as developing new ones. A stronger local currency can also increase expenses for international producers that report their results in U.S. dollars. Meanwhile, limited availability of drilling rigs may make it harder to secure equipment at attractive rates. If these cost pressures continue, part of the benefit from stronger oil and gas prices could be lost, particularly for projects that already have relatively high operating or development costs.
High Taxes Can Make Some Oil and Gas Regions Less Attractive: International producers can choose where they invest, so government tax policies play an important role in deciding which projects move forward. When taxes rise, or fiscal rules become less favorable, a project may offer weaker returns even if it has good oil or gas resources. Companies can then shift their spending toward countries where costs and taxes are lower. This creates a risk for regions with less competitive policies because drilling and development spending may gradually decline. For investors, changing tax rules can therefore affect future production growth and the amount of money that producers are willing to invest in certain markets.
Firm Energy Prices Are Supporting Producers: Oil and gas producers are currently benefiting from a stronger pricing environment. Middle East tensions have kept oil prices elevated and volatile, while European gas prices remain firm as the region works to rebuild storage ahead of winter. Higher selling prices generally mean producers earn more from the same level of output, supporting cash flow and financial flexibility. This can make it easier to repay debt, fund future drilling and return money to shareholders. As long as geopolitical uncertainty and tight gas supplies persist, commodity prices could remain supportive for the international exploration and production industry.
Zacks Industry Rank Reflects Bearish Outlook The Zacks Oil and Gas – International E&P industry is an eight-stock group within the broader Zacks Oil - Energy sector. It currently carries a Zacks Industry Rank #171, which places it in the bottom 30% of 246 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Despite the dim near-term prospects of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms Sector & S&P 500 The Zacks Oil and Gas - International E&P industry has fared better than the broader Zacks Oil – Energy sector as well as the Zacks S&P 500 composite over the past year.
The industry has gone up 54.6% over this period compared with the broader sector’s increase of 34.1% and the S&P 500’s gain of 20.8%.
One-Year Price Performance
Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 5.35X, significantly lower than the S&P 500’s 17.91X. It is also below the sector’s trailing 12-month EV/EBITDA of 5.92X.
Over the past five years, the industry has traded as high as 9.28X, as low as 2.80X, with a median of 4.64X.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio (Past Five Years)
3 Oil and Gas - International E&P Stocks to Watch EnQuest: EnQuest is an independent energy company focused on getting more value from mature oil and gas assets. Its core production operations are in the UK North Sea, Malaysia and Vietnam, supported by experience in extending field life, managing reservoirs and carrying out decommissioning. The Zacks Rank #2 (Buy) company also operates the Sullom Voe Terminal in Shetland and has a growing footprint across South East Asia.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its strategy combines disciplined investment in existing fields with selective acquisitions and geographic diversification. EnQuest is expanding in Vietnam, Brunei and Indonesia while pursuing growth in the UK. Through Veri Energy, it is also exploring ways to repurpose existing infrastructure for decarbonization and renewable-energy projects.
The Zacks Consensus Estimate for 2026 earnings of the company indicates 283.3% growth. EnQuest’s shares have moved up 121.7% in a year.
Price and Consensus: ENQUF
Kosmos Energy: Kosmos Energy’s portfolio centers on offshore oil and gas assets and projects in Ghana, Mauritania and Senegal, and the Gulf of America. Jubilee in Ghana remains an important oil asset, while Greater Tortue Ahmeyim adds LNG exposure. The Zacks #2 Ranked company is also developing further opportunities through Tiberius and the Trailblazer prospect in the Gulf of America.
Its current strategy centers on lifting production from core assets, lowering operating costs and reducing debt while keeping near-term development spending controlled. Kosmos is also preparing longer-term drilling at Jubilee and TEN, advancing GTA expansion and domestic gas opportunities, and using partnerships to share capital needs on larger projects.
The Zacks Consensus Estimate for 2026 earnings of the company indicates 161.6% growth. Kosmos Energy’s shares have moved up 58.9% in a year.
Price and Consensus: KOS
Harbour Energy: Harbour Energy is a large, diversified oil and gas producer with operations centered on Norway, the UK, Argentina, the United States and Mexico. Its portfolio combines established producing assets with a pipeline of shorter-cycle projects, giving the Zacks Rank #3 (Hold) company exposure to oil, European gas and longer-term development opportunities. Management is increasingly directing investment toward lower-cost, lower-tax areas while maintaining production at scale.
Growth plans include new and expanding projects in Norway, Argentina and the Gulf of America, alongside development options at Mexico’s Zama and Kan fields. Harbour also emphasizes operational control, capital discipline and financial resilience, with acquisitions used selectively to strengthen portfolio quality.
The Zacks Consensus Estimate for 2026 earnings of the company indicates 393.8% growth. Harbour Energy’s shares are up 12.7% in a year.
Kosmos Energy remains too financially risky due to a debt ratio above 2.0. Management aims to reduce KOS's debt ratio to 2.0 or below by year-end. Current long-term debt stands at $2.5 billion with $145 million due soon, against a six-month EBITDAX of $527 million.
California State Teachers Retirement System raised its stake in shares of Kosmos Energy Ltd. (NYSE:KOS – Free Report) by 52.3% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 663,917 shares of the oil and gas producer’s stock after acquiring an additional 227,978 shares during the quarter. California State Teachers Retirement System owned approximately 0.11% of Kosmos Energy worth $1,846,000 at the end of the most recent quarter.
Several other hedge funds also recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. increased its position in shares of Kosmos Energy by 175.2% in the 4th quarter. Goldman Sachs Group Inc. now owns 6,766,857 shares of the oil and gas producer’s stock worth $6,140,000 after purchasing an additional 4,308,275 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of Kosmos Energy by 224.0% during the first quarter. Renaissance Technologies LLC now owns 5,339,638 shares of the oil and gas producer’s stock worth $14,844,000 after purchasing an additional 3,691,800 shares during the last quarter. First Trust Advisors LP lifted its position in shares of Kosmos Energy by 66.9% during the fourth quarter. First Trust Advisors LP now owns 7,048,196 shares of the oil and gas producer’s stock worth $6,396,000 after purchasing an additional 2,825,517 shares during the last quarter. Squarepoint Ops LLC grew its stake in Kosmos Energy by 333.0% in the second quarter. Squarepoint Ops LLC now owns 3,221,011 shares of the oil and gas producer’s stock worth $5,540,000 after purchasing an additional 2,477,102 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its stake in Kosmos Energy by 19.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 12,045,593 shares of the oil and gas producer’s stock worth $10,930,000 after purchasing an additional 1,962,936 shares in the last quarter. 95.33% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling In other news, CFO Nealesh D. Shah sold 45,980 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total transaction of $94,259.00. Following the completion of the transaction, the chief financial officer directly owned 1,935,410 shares of the company’s stock, valued at approximately $3,967,590.50. This represents a 2.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director John Douglas Kelso Grant sold 43,466 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $2.73, for a total value of $118,662.18. Following the transaction, the director directly owned 82,311 shares of the company’s stock, valued at $224,709.03. This trade represents a 34.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 294,580 shares of company stock valued at $689,275 over the last 90 days. 1.90% of the stock is owned by corporate insiders.
Kosmos Energy Trading Down 1.6% Kosmos Energy stock opened at $2.52 on Thursday. Kosmos Energy Ltd. has a 1 year low of $0.84 and a 1 year high of $3.34. The firm’s 50-day moving average is $2.44 and its 200-day moving average is $2.46. The company has a debt-to-equity ratio of 3.58, a quick ratio of 0.38 and a current ratio of 0.59. The company has a market cap of $1.50 billion, a P/E ratio of -2.12, a PEG ratio of 0.19 and a beta of 0.72.
Kosmos Energy (NYSE:KOS – Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.02. The business had revenue of $607.25 million during the quarter, compared to the consensus estimate of $483.23 million. Kosmos Energy had a negative net margin of 33.98% and a negative return on equity of 17.73%. On average, equities analysts expect that Kosmos Energy Ltd. will post 0.45 earnings per share for the current year.
Analyst Upgrades and Downgrades Several analysts recently weighed in on KOS shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Kosmos Energy in a report on Monday, August 3rd. Mizuho raised Kosmos Energy to a “strong sell” rating in a report on Friday, July 31st. Stephens decreased their target price on Kosmos Energy from $3.00 to $2.40 and set an “equal weight” rating for the company in a research report on Tuesday, July 21st. Royal Bank Of Canada lowered Kosmos Energy to a “neutral” rating in a research report on Wednesday, May 27th. Finally, Wall Street Zen upgraded Kosmos Energy from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Kosmos Energy presently has a consensus rating of “Reduce” and an average price target of $2.53.
Get Our Latest Analysis on KOS
Kosmos Energy Company Profile (Free Report)
Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities.
The company’s portfolio is anchored by assets in West Africa and the Gulf of Mexico.
Read More Five stocks we like better than Kosmos Energy GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs Want to see what other hedge funds are holding KOS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Kosmos Energy Ltd. (NYSE:KOS – Free Report).
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Kosmos Energy (KOS - Free Report) . KOS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Investors should also recognize that KOS has a P/B ratio of 0.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. KOS's current P/B looks attractive when compared to its industry's average P/B of 2.34. Over the past year, KOS's P/B has been as high as 1.80 and as low as 0.66, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KOS has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.48.
These are just a handful of the figures considered in Kosmos Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KOS is an impressive value stock right now.
Kosmos Energy NYSE: KOS reported higher second-quarter production, lower operating costs and continued balance-sheet progress as new wells in Ghana and the ramp-up of its Greater Tortue Ahmeyim LNG project supported first-half performance.
Chairman and Chief Executive Officer Andy Inglis said the company had made progress on its four priorities for 2026: increasing production, reducing costs, lowering debt and advancing its growth portfolio while limiting capital spending.
Production in the first half was up 18% from the same period of 2025, while absolute operating costs declined 24%, Inglis said. Chief Financial Officer Neal Shah said second-quarter production was approximately 12% higher year over year, driven by new Jubilee wells and GTA's ramp-up. Absolute operating costs during the quarter were about 25% lower than a year earlier.
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Jubilee wells support Ghana outlook Kosmos said its Jubilee field offshore Ghana continued to benefit from an active drilling campaign. Two producer wells, J76 and J77, began production following the company’s first-quarter report, while J50, the completion of a previously drilled well, was expected to start in the coming days.
With J50 online, Kosmos expects Jubilee gross production to exceed 90,000 barrels of oil per day. The company maintained its full-year Jubilee guidance of 70,000 to 80,000 barrels per day, with Inglis saying the latest well performance supported the upper end of that range.
Inglis described J76 as the best Jubilee well drilled in more than a decade. He said the well identified up-dip, unswept opportunities in the core part of the field and encountered deeper horizons that could provide additional resources.
The company is working with the field operators to secure a rig for a 2027-28 drilling campaign of up to 10 wells, targeted to begin around the middle of 2027. The program is expected to incorporate fully processed 4D seismic data and fast-track ocean-bottom-node seismic results.
Management also identified water injection as an operational focus. Inglis said water replacement volumes were about 130% in the first quarter but fell to roughly 65% in the second quarter, partly because of planned maintenance and water-pump availability. He said the issue was operational rather than reservoir-related and would be a focus through the remainder of 2026.
GTA meets LNG cargo expectations as domestic gas work advances At the Greater Tortue Ahmeyim project offshore Mauritania and Senegal, gross LNG production in the second quarter was approximately 2.65 million tonnes per annum equivalent. The project lifted nine gross LNG cargoes during the quarter, bringing first-half cargoes to 18.5.
Kosmos maintained its full-year guidance for 32 to 36 gross LNG cargoes. The company said daily LNG production is expected to be somewhat lower during the summer because warmer air and sea temperatures affect operations, with volumes expected to improve later in the year.
The project also lifted one condensate cargo during the second quarter, representing about 300,000 barrels net to Kosmos. A further condensate cargo, estimated at about 400,000 barrels net to Kosmos, is expected late in the third quarter.
Kosmos said it remains on track to reduce GTA operating expense per MMBtu by 50% this year and sees potential for further reductions in 2027. Inglis said increased domestic gas sales could further reduce unit costs because additional gas volumes can be processed without material added costs.
In Senegal, land has been cleared for the onshore section of a pipeline intended to connect GTA gas to the 250-megawatt Gandon power station near Saint Louis. In Mauritania, the country signed a 25-year agreement with Saudi Power Company for a 230-megawatt gas-fired power plant in Nouadhibou that is expected to use GTA gas.
Gulf of Mexico portfolio advances Gulf of Mexico production was in line with Kosmos’ expectations, supported by its operated Odd Job and Kodiak fields. However, the operator of the Winterfell development temporarily abandoned the No. 5 well after encountering casing issues during drilling.
Shah said Winterfell contains significant reserves and has shown good pay, but Kosmos was dissatisfied with the drilling performance and resulting additional costs. The partners have paused activity to understand and resolve the issues before committing further capital, he said.
Kosmos also completed a farm-down of its Tiberius project, bringing Navitas in as a 33.33% partner. Kosmos will remain operator with a 33.34% interest, while OXY will hold the remaining 33.33% interest and operates the nearby Lucius facility.
Shah said the transaction included upfront cash, a development capital carry and future milestone payments. The carry is expected to cover Kosmos’ Tiberius capital expenditures in 2026 and fund its share of development through the first half of 2027. First oil remains expected in the second half of 2028.
The first Tiberius well is targeting roughly 40 million barrels of recovery, according to Shah, with production estimated at about 10,000 barrels per day gross per well. Kosmos also said Shell plans to drill the Trailblazer prospect in the first quarter of 2027 under their exploration alliance. Trailblazer is targeting about 200 million barrels of oil equivalent gross, with Kosmos holding an interest representing just under 60 million barrels, Shah said.
Debt reduction and refinancing plans Kosmos paid down approximately $420 million of debt in the first half through free cash flow, an equity raise and proceeds from the sale of its Equatorial Guinea assets. It ended the quarter with more than $500 million of available liquidity.
The company said S&P and Fitch upgraded its rating to B-minus. Kosmos is targeting about a 20% reduction in net debt for 2026 and expects leverage to move toward two times by year-end, depending in part on commodity prices.
Shah said Kosmos has started discussions with lenders to amend and extend its reserve-based lending facility, targeting completion in the fourth quarter and a facility size of about $1.2 billion. After addressing that facility, the company expects to consider options for its 2028 notes, including opportunistic repurchases or refinancing.
About Kosmos Energy (NYSE:KOS)Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities.
The company's portfolio is anchored by assets in West Africa and the Gulf of Mexico.
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Key Takeaways KOS provides exposure to international exploration amid a supportive oil-price environment.WTI offers offshore oil production exposure as geopolitical risks tighten supply concerns.DTI adds drilling-services exposure and carries an attractive Value Score of A. Oil prices have returned to the spotlight as renewed geopolitical tensions in the Middle East raise concerns about global energy supplies. Crude has climbed back above $80 a barrel and is now approaching $90, reminding investors how quickly market conditions can change. While volatility often creates uncertainty, it can also open attractive opportunities. For investors seeking affordable exposure to the energy sector, fundamentally strong stocks trading below $5 deserve a closer look.
Among the names worth watching are Kosmos Energy (KOS - Free Report) , W&T Offshore (WTI - Free Report) and Drilling Tools International (DTI - Free Report) . Although these stocks trade at relatively low prices, each offers exposure to different parts of the energy value chain — from international exploration and offshore oil production to drilling services.
The business models and valuation levels of these companies make them candidates for investors looking to benefit from a supportive oil-price environment while keeping initial investment costs low. These companies also hold a Value Score of A or B, offering an additional incentive for investors amid the prevailing market uncertainty.
Why the Oil Market Still Looks Strong
The oil market remains highly sensitive to geopolitical developments. Renewed fighting involving the United States and Iran has once again raised concerns about disruptions around the Strait of Hormuz, one of the world's most important oil shipping routes. At the same time, threats to additional shipping lanes have increased uncertainty, pushing Brent crude close to $95 a barrel and U.S. crude above $85. Even if supply disruptions prove temporary, traders continue to price in the risk of tighter global supplies.
Looking ahead, the outlook for oil remains constructive despite continued volatility. Major Wall Street firms believe prices could stay above $80 under a base-case scenario, while a prolonged disruption to Middle East exports could drive crude well above $100. Strong seasonal demand, lower inventories and ongoing geopolitical risks are likely to keep energy markets supported, creating a favorable backdrop for companies with solid operations and attractive valuations.
Why Energy Stocks Under $5 Deserve a Closer Look
Against this backdrop, investors may want to consider undervalued energy companies that have the potential to benefit from higher oil prices while offering meaningful upside if market conditions remain favorable. Stocks trading below $5 — often referred to as penny stocks — can fit that profile. While these shares typically carry greater volatility and higher risk than larger companies, careful selection based on business fundamentals rather than price alone can uncover compelling investment opportunities.
3 Stocks to Focus On
Kosmos Energy: Kosmos Energy is an international oil and gas exploration and production company with a portfolio spanning West Africa, the Gulf of America and liquefied natural gas (LNG) projects in Mauritania and Senegal. The company focuses on developing high-quality assets while steadily expanding production, lowering costs and strengthening its balance sheet.
Its growth strategy combines disciplined investment with the advancement of large-scale development projects and selective exploration opportunities. Kosmos is progressing projects in Ghana, the Gulf of America and the Greater Tortue Ahmeyim LNG development, while pursuing additional prospects through partnerships. By balancing production growth with capital discipline, the company aims to create sustainable value and maintain financial flexibility over the long term.
At less than $2.50 per share and with a Value Score of B, Zacks Rank #2 (Buy) KOS presents an appealing option for energy sector investors looking for a stock with a reasonable valuation. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has gone up 21%. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
W&T Offshore: W&T Offshore is an independent oil and natural gas producer focused on the Gulf of America, where it has operated for more than four decades. Founded in 1983 and headquartered in Houston, the company has built its business by acquiring producing offshore assets and developing them through technical expertise, disciplined operations and targeted drilling.
The Zacks Rank #3 (Hold) company manages a diversified portfolio of offshore fields and combines acquisitions with well optimization projects to extend reserve life, improve production and lower costs. W&T also benefits from owned infrastructure, a strong operating position and an experienced management team. Its strategy centers on generating long-term value through operational efficiency, selective acquisitions and carefully planned development opportunities across the Gulf of America.
WTI shares trade for around $3.63 as of this writing. An incredible bargain for investors, the Zacks Consensus Estimate for 2026 earnings of the company indicates 64.9% growth. W&T Offshore has a Value Score of B.
Drilling Tools International: Drilling Tools International provides rental tools, equipment and related solutions used throughout the drilling, well construction and abandonment process for the oil and gas industry. The #3 Ranked company, with a Value Score of A, serves customers across North America, Europe, the Middle East, Africa and Asia-Pacific, supported by an extensive rental fleet, in-house manufacturing capabilities and a growing global service network.
DTI differentiates itself through its broad product portfolio, repair and manufacturing facilities, and its proprietary COMPASS order management platform, which simplifies tool rentals and improves customer visibility. Strategic acquisitions have expanded its geographic reach and product offerings, while its focus remains on operational efficiency, innovation and delivering reliable support to both exploration and production companies and oilfield service providers.
With a share price of just $2.27, DTI is a stock that energy sector investors should consider for their watchlist. The Zacks Consensus Estimate for 2026 revenues of the company indicates modest growth.
July 07, 2026 02:06 ET | Source: Kosmos Energy, LLC
DALLAS, July 07, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy (NYSE/LSE: KOS) announced today the following schedule for its second quarter 2026 results:
Earnings Release: Monday, August 3, 2026, pre-UK market open via Notified, Regulatory News Service, and the Company’s website at www.kosmosenergy.com.Conference Call: Monday, August 3, 2026, at 11:00 a.m. ET. The call will be available via telephone and webcast. Dial-in telephone numbers:
Toll Free: 1-800-715-9871
Toll/International: 1-646-307-1963
UK Toll Free: 0800 260 6466
Webcast:
investors.kosmosenergy.com
Webcast Conference Call Replay: A replay of the webcast will be available at investors.kosmosenergy.com for approximately 90 days following the event.
About Kosmos Energy
Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS.
As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
DALLAS, July 06, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”) is pleased to provide the following update on activities across its portfolio: In Ghana, the third well of the 2026 campaign, J76, was completed and came online in mid-June, two weeks later than initially planned. Initial production rates have been very strong with the new well, which benefits from the latest seismic and Kosmos' reservoir modelling, contributing approximately 20,000 barrels of oil per day (bopd) to gross production.
Kosmos Energy (KOS - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 20.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why KOS Could Experience a TurnaroundThe RSI reading of 28.42 for KOS is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for KOS has increased 20.8%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, KOS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Kosmos Energy (KOS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Kosmos Energy is one of 238 companies in the Oils-Energy group. The Oils-Energy group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Kosmos Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for KOS' full-year earnings has moved 20.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that KOS has returned about 133.6% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 18.7%. This means that Kosmos Energy is outperforming the sector as a whole this year.
Valvoline (VVV - Free Report) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 36.3%.
For Valvoline, the consensus EPS estimate for the current year has increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Kosmos Energy belongs to the Oil and Gas - Exploration and Production - International industry, a group that includes 6 individual stocks and currently sits at #104 in the Zacks Industry Rank. Stocks in this group have gained about 33.5% so far this year, so KOS is performing better this group in terms of year-to-date returns.
Valvoline, however, belongs to the Oil and Gas - Refining and Marketing industry. Currently, this 17-stock industry is ranked #47. The industry has moved +31.8% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Kosmos Energy and Valvoline as they could maintain their solid performance.
Enhances portfolio, high grades capital allocation, lowers costs and enhances liquidity June 17, 2026 02:00 ET | Source: Kosmos Energy, LLC
DALLAS, June 17, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”) is pleased to announce the completion of the sale of its interests in the Ceiba Field and Okume Complex production assets in Block G offshore Equatorial Guinea to Panoro Energy (“Panoro”).
The final cash consideration on completion, post-closing adjustments, was approximately $127 million. The closing adjustments reflect the cash received from the assets in the first half of 2026 to completion on June 16, 2026. Future contingent payments of up to ~$40 million are subject to certain oil price and production thresholds.
The transaction proceeds will be used to repay borrowings under the Company’s reserves-based lending (RBL) credit facility.
Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer said: “We are pleased to have closed this transaction, a win-win for Kosmos and Panoro. For Kosmos, the transaction high grades our portfolio by divesting high unit operating cost production and increases balance sheet resilience, with retained exposure to future upside from the assets. Strategically, it also enables Kosmos to focus our capital and expertise on our world-class assets where we can add the most value for our stakeholders over the long-term. We’d like to thank CEMAC and the Government of Equatorial Guinea for their timely approvals.”
To reflect the impact of the sale completion, Kosmos will provide updated full year 2026 guidance with its second quarter results in August. Production year-to-date has been around 5,800 barrels of oil per day net to Kosmos. An asset retirement obligation liability of around $140 million will also be removed from the balance sheet.
About Kosmos Energy
Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate, we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Key Takeaways Kosmos completed the sale of its Equatorial Guinea assets to Panoro Energy for a final $127M payment.Kosmos will use proceeds to repay reserves-based lending debt and focus on higher-return core assets.Panoro Energy's stake in Block G will rise to 54.625% following the acquisition. Kosmos Energy (KOS - Free Report) , a U.S.-based exploration and production company, has concluded the sale of its non-operating interests in certain offshore production assets in Equatorial Guinea to Panoro Energy. The deal was announced earlier this year, with Panoro Energy agreeing to acquire KOS’ subsidiary, which owns a 40.375% interestin the block containing the production assets. The deal includes the Ceiba field and the Okume Complex production assets, located in Block G, offshore Equatorial Guinea.
Financial Terms of the DealPer the terms of the deal, the acquiring firm agreed to an upfront cash payment of $180 million, subject to adjustments. Kosmos Energy has received a final cash payment of $127 million following the conclusion of the deal and after accounting for post-closing adjustments. Besides the cash received at closing, Kosmos could still earn additional payments under the terms of the agreement. This includes contingent payments of $12.5 million if the Ceiba field meets certain production targets and $9 million in each of 2027, 2028 and 2029 if oil prices and production levels reach specific target thresholds.
Divestment Supports Balance Sheet StrengtheningThe closing of this deal reduces the company’s 2026 production. Before the deal’s closing, these assets contributed nearly 5,800 barrels of oil per day net to Kosmos in 2026. However, it enables Kosmos Energy to streamline its asset portfolio and focus on its core assets that generate higher returns. Furthermore, the company has stated that it will use the divestment proceeds to pay down the borrowings under its reserves-based lending credit facility. The transaction will also remove an asset retirement obligation of $140 million from the company’s balance sheet. The transaction is expected to benefit the company by improving its financial flexibility, strengthening its balance sheet and freeing up capital for other strategic priorities.
Deal Creates Value for Both CompaniesKosmos Energy has highlighted that this deal is mutually beneficial for both companies. Panoro Energy previously owned a 14.25% interest in Block G, and the acquisition will raise its stake in the block to 54.625%. For Kosmos, the deal streamlines its portfolio and allows it to focus on its deepwater assets while selling assets with relatively high unit operating costs. Moreover, the deal is structured such that the company can still benefit from any future upside from the assets. Kosmos Energy’s focus lies on its key offshore assets across Ghana, Mauritania, Senegal and the Gulf of America, which have the potential for long-term growth.
KOS’s Zacks Rank and Key PicksKOS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are W&T Offshore (WTI - Free Report) , Galp Energia SGPS SA (GLPEY - Free Report) and FuelCell Energy (FCEL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its future production prospects and is expected to enhance its revenues.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to expand its global presence with the potential to become a significant oil producer in the region. It is also involved in refining and marketing of oil products and natural gas marketing and sales.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
The Zacks Oil and Gas - Exploration and Production - International industry remains well-positioned as strong commodity prices and supply constraints continue to support earnings. Companies operating outside the United States are benefiting directly from higher realizations, which are boosting cash flows and improving balance sheets. At the same time, a clear shift toward capital discipline and cost efficiency is helping operators lower break-even levels and focus on high-return projects. Portfolio reshaping and geographic repositioning are further strengthening cash flow quality and long-term resilience. Though there are challenges, including natural field declines and ongoing reinvestment needs, the broader setup looks constructive. The industry’s solid ranking, strong relative performance versus the S&P 500, and attractive valuation suggest room for further upside. As companies continue to refine portfolios and improve execution, the outlook remains encouraging. Within this space, Harbour Energy (HBRIY - Free Report) , Vermilion Energy (VET - Free Report) and Kosmos Energy (KOS - Free Report) stand out as compelling names to watch.
Industry Overview The Zacks Oil and Gas - International E&P industry consists of companies primarily operating outside the United States and focused on the exploration and production (E&P) of oil and natural gas. These firms find hydrocarbon reservoirs, drill oil and gas wells, and produce and sell these materials to be refined later into products such as gasoline, fuel oil, distillate, etc. The economics of oil and gas supply and demand are the fundamental drivers of this industry. In particular, a producer’s cash flow is determined by realized commodity prices. In fact, all E&P companies are vulnerable to historically volatile prices in the energy markets. A change in realizations affects their returns on drilling inventory and causes them to alter production growth rates. These operators are also exposed to exploration risks where drilling results are uncertain.
4 Key Investing Trends to Watch in the Oil and Gas - International E&P Industry Commodity Price Gains: The sharp rise in crude prices following supply disruptions in the Middle East creates a strong macro tailwind for the global oil and gas exploration and production space. When benchmark prices move from the $60 range to near or above $100, upstream players typically see a direct and meaningful improvement in realizations and cash flows. This kind of pricing environment not only boosts near-term profitability but also strengthens balance sheets, enabling higher reinvestment into exploration and development activities. At the same time, supply constraints tied to key chokepoints like the Strait of Hormuz highlight the structural importance of diversified production sources, which further support sustained demand for international upstream output. Overall, elevated prices combined with tighter supply conditions create a favorable backdrop for earnings visibility and capital discipline across the industry.
Improving Cost Structures and Capital Discipline: Companies are steadily reshaping portfolios toward lower-cost, higher-return assets while exiting mature or expensive operations. This shift, combined with tighter capital allocation and efficiency gains, is driving down unit costs and improving margins. Production growth is increasingly tied to high-return projects with quick paybacks, helping sustain cash flows even in uncertain price environments. Over time, this disciplined approach enhances resilience, supports debt reduction, and allows firms to better navigate commodity cycles while still investing in future growth.
Declining Legacy Assets and High Reinvestment Needs: Many portfolios still include aging fields with natural decline rates, requiring continuous drilling and capital spending just to maintain production levels. At the same time, newer projects often demand significant upfront investment and longer development timelines. This creates a balancing act between funding growth and preserving balance sheet strength. If capital discipline weakens or project execution falters, returns can suffer. Additionally, shifting capital away from higher-cost regions may reduce diversification and expose companies more to specific basin risks.
Portfolio High-Grading and Geographic Repositioning: Companies are actively reshaping their asset mix by divesting higher-cost, mature operations and reallocating capital toward more competitive regions with better fiscal terms and stronger margins. This shift is not just about reducing costs—it’s about improving the overall quality of cash flows. By concentrating on assets with longer life, lower taxes, and better operating control, firms are building portfolios that can generate steadier and more predictable returns. In many cases, production from legacy regions is being replaced with output from newer, higher-margin basins, which enhances profitability even if total volumes remain stable. Over time, this repositioning supports stronger free cash flow generation, lowers break-even levels, and gives companies greater flexibility to navigate commodity cycles while still funding growth initiatives.
Zacks Industry Rank Reflects Positive Outlook The Zacks Oil and Gas – International E&P industry is a six-stock group within the broader Zacks Oil - Energy sector. It currently carries a Zacks Industry Rank #44, which places it in the top 18% of 243 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms S&P 500 but Lags Sector The Zacks Oil and Gas - International E&P industry has fared better than the Zacks S&P 500 composite, though it has underperformed the broader Zacks Oil - Energy Sector over the past year.
The industry has gone up 27.5% over this period compared with the broader sector’s increase of nearly 32%. The S&P 500 has gained 20%.
One-Year Price Performance
Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 5.95X, significantly lower than the S&P 500’s 17.34X. It is also below the sector’s trailing 12-month EV/EBITDA of 7.14X.
Over the past five years, the industry has traded as high as 9.60X, as low as 2.33X, with a median of 4.17X.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio (Past Five Years)
3 Oil and Gas - International E&P Stocks to Watch Vermilion Energy: Vermilion Energy is a globally diversified producer with core assets in Canada’s Deep Basin and Montney, complemented by operations across Europe and Australia. This mix provides exposure to premium gas markets while keeping cash flows balanced and decline rates low. The Zacks Rank #1 (Strong Buy) company prioritizes steady production, sustainable free cash flow and disciplined capital use.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent updates highlight improving operations and a deep drilling inventory, though meaningful free cash flow growth is expected later in the decade. Canada now anchors production, supported by long-life assets and existing infrastructure, while European gas offers attractive economics and pricing upside. As leverage falls, Vermilion expects to increase buybacks and other return-of-capital measures over time.
The Zacks Consensus Estimate for 2026 earnings of the company indicates 268.4% growth. Vermilion Energy’s shares have gained more than 51% in a year.
Price and Consensus: VET
Harbour Energy: It is one of the largest independent oil and gas exploration and production companies listed in London. Formed through the merger of Chrysaor and Premier Oil, and later expanded with the acquisition of Wintershall Dea, the company produces around 460–500 thousand barrels of oil-equivalent per day. Harbour Energy’s operations span Norway, the U.K., Argentina, North Africa and Mexico, giving it a broad and balanced global presence.
The Zacks Rank #3 (Hold) company has grown through a series of acquisitions, supported by a focus on improving operations, reducing debt and returning cash to shareholders. Recent deals, including entry into the U.S. Gulf of Mexico, aim to strengthen cash flow and long-term growth. With strong scale now achieved, Harbour Energy is increasingly focused on improving returns and optimizing its portfolio.
The Zacks Consensus Estimate for 2026 earnings of the company indicates 287.5% growth. Harbour Energy’s shares are up 56.6% in a year.
Price and Consensus: HBRIY
Kosmos Energy: Kosmos Energy is a deepwater exploration and production company with a balanced portfolio of oil and natural gas assets across proven basins. Its operations span offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, complemented by world-scale gas developments offshore Mauritania and Senegal. The company pursues a mix of long-cycle gas projects, meeting rising global demand and shorter-cycle oil opportunities that generate strong returns at current prices.
With a stable production base and strategic partnerships, Zacks Rank #3 Kosmos emphasizes disciplined growth, balance sheet resilience and sustainable cash generation. Recent milestones, including first gas at its flagship LNG project, have positioned the business to deliver meaningful free cash flow for years ahead. By combining infrastructure-led exploration with phased project development, Kosmos seeks to minimize risk, optimize costs and advance value creation while supporting the broader energy transition.
The Zacks Consensus Estimate for 2026 earnings of the company indicates 46.6% growth. Kosmos Energy’s shares have edged up 2.2% in a year.
Kosmos Energy Ltd. (NYSE: KOS - Get Free Report) saw some unusual options trading on Thursday. Investors purchased 16,738 call options on the company. This is an increase of 109% compared to the typical daily volume of 8,002 call options. Analyst Ratings Changes Several research firms have recently weighed in on KOS. Weiss Ratings reiterated a
Director Adebayo Ogunlesi reported an open-market purchase of 3,157,895 shares of Kosmos Energy (KOS 0.69%) for a transaction value of ~$6.0 million, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares traded3,157,895Transaction value$6.0 millionPost-transaction shares (direct)4,974,184Post-transaction value (direct ownership)$12.0 millionTransaction value based on SEC Form 4 reported price ($1.90); post-transaction value based on March 10, 2026 market close ($2.41).
Key questionsHow does this purchase compare to Ogunlesi's prior trading activity in Kosmos Energy?
This is the first open-market purchase by Ogunlesi in at least the past three years; all previous Form 4 filings since June 2023 reflected only administrative updates with no net buying or selling.What proportion of his prior holdings does the transaction represent?
The purchase increased direct common stock holdings by 173.87%, taking his position from 1,816,289 to 4,974,184 shares, more than doubling his exposure to the company.Is there any indication of indirect or derivative participation in this transaction?
No; all shares were acquired for direct ownership, and the filing shows zero indirect holdings and no derivative security involvement.How does the transaction size relate to Ogunlesi’s current ownership and Kosmos Energy's total insider ownership?
Post-transaction, Ogunlesi’s direct holdings represent approximately 1.03% of total shares outstanding as of the latest available data, contributing materially to overall insider exposure in the company.Company overviewMetricValueRevenue (TTM)$1.29 billionNet income (TTM)-$699.79 millionDividend yield0.00%1-year price change4.48%* 1-year price change calculated as of March 10, 2026.
Company snapshotOffers deep-water oil and gas exploration and production, with principal assets offshore Ghana, Equatorial Guinea, the U.S. Gulf of Mexico, and gas development projects offshore Mauritania and Senegal.Operates an independent exploration-led business model, generating revenue primarily from the sale of crude oil and natural gas produced from its offshore assets.Serves global energy markets as an independent oil and gas exploration and production company.Kosmos Energy is a Dallas-based independent oil and gas company specializing in deep-water exploration and production along the Atlantic Margins. The company leverages a focused asset portfolio and proven basin exploration strategy to drive growth and operational efficiency. Its competitive edge lies in technical expertise and access to high-potential offshore resources in underexplored regions.
What this transaction means for investorsThis is a sizable purchase and notable because the director hadn’t acquired company stock in the past three years.
The stock price has been skyrocketing this year, up about 198% year-to-date (YTD), and since March 10, the company’s stock price has jumped about 35% to its current $2.71 per share.
This comes at a time of rising oil prices, due in part to the war in Iran and geopolitical tensions in the Middle East.
However, it also occurred when Kosmos had a public offering of its common stock on March 10 at $1.90 per share, a significant discount to the approximately $2.00 per share price at the time. The offering was to raise money primarily for debt repayment.
In addition, in February, the government of Ghana extended its license to drill for oil there until 2040. Also, it sold assets in Equatorial Guinea to focus on its assets in Ghana and other locations. Further, the company guided for a significant increase in production in fiscal 2026.
The stock is trading at just 8 times forward earnings.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Kosmos Energy Ltd. (NYSE: KOS - Get Free Report) shares were up 8.3% during trading on Thursday after Johnson Rice upgraded the stock from an accumulate rating to a buy rating. Johnson Rice now has a $4.25 price target on the stock. Kosmos Energy traded as high as $2.93 and last traded at $2.88. Approximately 6,357,492
Shares of Kosmos Energy Ltd. (NYSE:KOS – Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $2.69, but opened at $2.93. Kosmos Energy shares last traded at $2.98, with a volume of 5,678,729 shares traded.
Analysts Set New Price Targets A number of analysts recently weighed in on the stock. Mizuho lowered their price objective on shares of Kosmos Energy from $2.00 to $1.50 and set a “neutral” rating for the company in a research note on Friday, December 12th. Bank of America reiterated an “underperform” rating and set a $1.00 price objective (down from $3.40) on shares of Kosmos Energy in a research note on Friday, December 5th. Wall Street Zen raised Kosmos Energy from a “sell” rating to a “hold” rating in a research report on Saturday. Weiss Ratings reissued a “sell (d-)” rating on shares of Kosmos Energy in a research report on Monday, December 29th. Finally, Johnson Rice raised shares of Kosmos Energy from an “accumulate” rating to a “buy” rating and set a $4.25 price objective on the stock in a research report on Wednesday, March 25th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Kosmos Energy has an average rating of “Hold” and a consensus target price of $2.19.
View Our Latest Analysis on KOS
Kosmos Energy Price Performance The company has a quick ratio of 0.45, a current ratio of 0.75 and a debt-to-equity ratio of 5.53. The stock has a 50 day moving average price of $2.16 and a two-hundred day moving average price of $1.61. The firm has a market cap of $1.41 billion, a PE ratio of -2.01, a price-to-earnings-growth ratio of 0.44 and a beta of 0.65.
Kosmos Energy (NYSE:KOS – Get Free Report) last issued its earnings results on Saturday, February 14th. The oil and gas producer reported ($0.16) earnings per share (EPS) for the quarter. Kosmos Energy had a negative return on equity of 39.29% and a negative net margin of 54.18%.The firm had revenue of $294.62 million during the quarter. As a group, equities analysts expect that Kosmos Energy Ltd. will post 0.42 earnings per share for the current year.
Insiders Place Their Bets In other news, CFO Nealesh D. Shah acquired 157,894 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were bought at an average cost of $1.90 per share, for a total transaction of $299,998.60. Following the acquisition, the chief financial officer owned 1,863,061 shares in the company, valued at approximately $3,539,815.90. This represents a 9.26% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Josh R. Marion sold 19,656 shares of Kosmos Energy stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $1.37, for a total transaction of $26,928.72. Following the sale, the senior vice president directly owned 197,409 shares in the company, valued at approximately $270,450.33. This trade represents a 9.06% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have bought 3,684,210 shares of company stock worth $6,999,999 and have sold 272,844 shares worth $377,592. 1.99% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows Institutional investors and hedge funds have recently modified their holdings of the company. Captrust Financial Advisors grew its position in Kosmos Energy by 93.9% in the fourth quarter. Captrust Financial Advisors now owns 28,601 shares of the oil and gas producer’s stock worth $26,000 after acquiring an additional 13,854 shares during the period. Blueshift Asset Management LLC acquired a new position in shares of Kosmos Energy in the 2nd quarter valued at $27,000. Old Port Advisors purchased a new position in shares of Kosmos Energy during the 4th quarter worth approximately $27,000. Cibc World Markets Corp acquired a new stake in Kosmos Energy in the 4th quarter valued at approximately $28,000. Finally, Public Employees Retirement System of Ohio raised its position in Kosmos Energy by 35.7% in the fourth quarter. Public Employees Retirement System of Ohio now owns 42,577 shares of the oil and gas producer’s stock valued at $39,000 after purchasing an additional 11,209 shares during the period. Institutional investors and hedge funds own 95.33% of the company’s stock.
About Kosmos Energy (Get Free Report)
Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities.
The company’s portfolio is anchored by assets in West Africa and the Gulf of Mexico.
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Kosmos Energy Ltd. (NYSE:KOS – Get Free Report) has received a consensus recommendation of “Hold” from the nine ratings firms that are currently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $2.1857.
Several brokerages have recently weighed in on KOS. Wall Street Zen upgraded Kosmos Energy from a “sell” rating to a “hold” rating in a report on Saturday. The Goldman Sachs Group increased their price target on Kosmos Energy from $1.75 to $2.00 and gave the company a “neutral” rating in a report on Friday, January 30th. Mizuho reduced their price objective on Kosmos Energy from $2.00 to $1.50 and set a “neutral” rating on the stock in a research report on Friday, December 12th. Johnson Rice raised Kosmos Energy from an “accumulate” rating to a “buy” rating and set a $4.25 price objective on the stock in a research note on Wednesday, March 25th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Kosmos Energy in a report on Monday, December 29th.
Read Our Latest Research Report on KOS
Kosmos Energy Trading Up 0.3% Shares of KOS opened at $2.93 on Monday. The stock has a market cap of $1.41 billion, a PE ratio of -2.01, a price-to-earnings-growth ratio of 0.44 and a beta of 0.65. Kosmos Energy has a 52-week low of $0.84 and a 52-week high of $3.02. The firm’s fifty day moving average is $2.16 and its two-hundred day moving average is $1.61. The company has a quick ratio of 0.45, a current ratio of 0.75 and a debt-to-equity ratio of 5.53.
Kosmos Energy (NYSE:KOS – Get Free Report) last announced its quarterly earnings data on Saturday, February 14th. The oil and gas producer reported ($0.16) earnings per share (EPS) for the quarter. The business had revenue of $294.62 million for the quarter. Kosmos Energy had a negative net margin of 54.18% and a negative return on equity of 39.29%. Research analysts forecast that Kosmos Energy will post 0.42 earnings per share for the current fiscal year.
Insider Activity In other news, CFO Nealesh D. Shah purchased 157,894 shares of the stock in a transaction dated Tuesday, March 10th. The shares were purchased at an average price of $1.90 per share, with a total value of $299,998.60. Following the transaction, the chief financial officer owned 1,863,061 shares in the company, valued at $3,539,815.90. The trade was a 9.26% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Andrew G. Inglis acquired 315,790 shares of the company’s stock in a transaction that occurred on Tuesday, March 10th. The stock was purchased at an average cost of $1.90 per share, with a total value of $600,001.00. Following the acquisition, the chief executive officer directly owned 4,542,807 shares of the company’s stock, valued at $8,631,333.30. This trade represents a 7.47% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have acquired 3,684,210 shares of company stock worth $6,999,999 and have sold 272,844 shares worth $377,592. 1.99% of the stock is owned by insiders.
Institutional Trading of Kosmos Energy Several hedge funds have recently made changes to their positions in KOS. AQR Capital Management LLC lifted its holdings in Kosmos Energy by 56.7% in the first quarter. AQR Capital Management LLC now owns 387,739 shares of the oil and gas producer’s stock valued at $884,000 after acquiring an additional 140,261 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Kosmos Energy by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 278,082 shares of the oil and gas producer’s stock worth $634,000 after acquiring an additional 12,045 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Kosmos Energy by 21.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,541,006 shares of the oil and gas producer’s stock worth $5,793,000 after acquiring an additional 443,384 shares during the last quarter. Strs Ohio purchased a new stake in Kosmos Energy in the first quarter valued at $120,000. Finally, Rhumbline Advisers raised its position in Kosmos Energy by 7.9% in the second quarter. Rhumbline Advisers now owns 718,954 shares of the oil and gas producer’s stock valued at $1,237,000 after purchasing an additional 52,750 shares during the period. Hedge funds and other institutional investors own 95.33% of the company’s stock.
About Kosmos Energy (Get Free Report)
Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities.
The company’s portfolio is anchored by assets in West Africa and the Gulf of Mexico.
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Kosmos Energy (KOS 0.69%), deepwater Atlantic oil and gas producer, closed Monday at $3.10, up 6.36%. The stock advanced after multiple reports highlighted new 52-week highs and reiterated neutral analyst views. Investors are watching whether recent gains can be sustained given mixed fundamentals and high leverage.
The company’s trading volume reached 37.6 million shares, which is about 39% above compared with its three-month average of 27 million shares. Kosmos Energy IPO'd in 2011 and is down 90% since its IPO.
How the markets moved todayThe S&P 500 (^GSPC +0.50%) added 0.44% to finish Monday at 6,611.83, while the Nasdaq Composite (^IXIC +0.31%) gained 0.54% to close at 21,996. Among oil, gas & consumable fuels producers, peer Apa (APA +0.65%) closed at $43.02, rising 2.33% as energy stocks tracked supportive sector sentiment.
What this means for investorsKosmos Energy shares climbed to a new 52-week high near $3.05 on strong trading volume, moving well above the average analyst price target of about $2.19. This rise happened even though BofA still rates the stock as Underperform and most analysts remain neutral. The gap between the stock’s momentum and expectations stands out for the company focused on deepwater oil production in the Atlantic.
The rally is driven by forecasts of about a 30% free cash flow yield in 2026 and the company’s goals for more production, lower costs, and less debt, all linked to better output and efficiency in its offshore projects. Investors are watching to see if Kosmos’s offshore production gains will turn into steady free cash flow at current oil prices, which would help the company reduce its debt levels. Otherwise, the stock rally could get ahead of a balance sheet that is still exposed to execution risk and commodity price volatility.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Kosmos Energy is a midcap offshore oil and gas company with operations off Africa and in the Gulf of America. KOS experienced an 60% drawdown due to high leverage and persistent negative cash flow generation. I analyze the company's financial backstory to understand the drivers behind its current distressed position.
April 15, 2026 02:00 ET | Source: Kosmos Energy, LLC
DALLAS, April 15, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy (NYSE/LSE: KOS) announced today the following schedule for its first quarter 2026 results:
Earnings Release: Tuesday, May 5, 2026, pre-UK market open via Notified, Regulatory News Service, and the Company’s website at www.kosmosenergy.com.Conference Call: Tuesday, May 5, 2026, at 11:00 a.m. ET. The call will be available via telephone and webcast. Dial-in telephone numbers:
Toll Free: 1-800-715-9871
Toll/International: 1-646-307-1963
UK Toll Free: 0800 260 6466
Webcast:
investors.kosmosenergy.com
Webcast Conference Call Replay: A replay of the webcast will be available at investors.kosmosenergy.com for approximately 90 days following the event.
About Kosmos Energy
Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS.
As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
DALLAS, May 05, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS) announced today its financial and operating results for the first quarter of 2026. For the quarter, the Company generated a net loss of $226 million, or $0.45 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net loss(1) of $36 million, or $0.07 per diluted share for the first quarter of 2026.
FIRST QUARTER 2026 AND POST QUARTER END HIGHLIGHTS
Net Production(2): ~74,800 barrels of oil equivalent per day (boepd), up ~25% versus first quarter 2025Revenues: $371 million, or $55.81 per boe (excluding the impact of derivative cash settlements) Production expense: $131 million (or $19.66 per boe), down ~22% versus first quarter 2025 (~$167 million)Capital expenditures: $91 million Greater Tortue Ahmeyim (GTA) gross production averaged ~2.85 million tonnes per annum (mtpa) for the first quarter, in excess of the floating LNG nameplate capacity (2.7 mtpa) Kosmos successfully completed a $350 million senior secured bond offering in the Nordic marketKosmos successfully completed an equity raise of approximately $200 million with the proceeds used to accelerate debt paydownKosmos announced the sale of its interest in the Ceiba Field and Okume Complex in Equatorial Guinea, for up to ~$220 millionThe TEN partnership finalized the acquisition of the TEN FPSO, which is expected to result in a material reduction in operating expensesKosmos took final investment decision for the operated Tiberius project in the Gulf of America Commenting on the Company’s first quarter 2026 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: “Earlier this year, we set four goals for 2026: increase production from our core assets; lower costs; reduce debt; and advance our high‑quality growth portfolio with minimal capital. We are delivering strongly on all four of these goals.
“In the first quarter, Kosmos achieved record daily and quarterly production, driven by GTA fully ramped up and new wells at Jubilee. Operating costs were ~22% lower year-on-year and we reduced net debt(1) by ~7% versus year‑end 2025. With this ongoing momentum, we have raised our full‑year debt reduction target from 10% to ~20%.
“We continue to maintain our capital discipline while we progress our quality growth options. We took final investment decision on the Tiberius development, entered into a strategic exploration alliance with Shell in the Gulf of America, and are moving forward on GTA Phase 1+ expansion.
“With oil prices higher, our goals are unchanged. We will direct excess free cash flow toward accelerated debt reduction and further strengthening the balance sheet. Our exposure to premium international oil markets positions Kosmos to capture value from current market dislocations and reinforces our confidence in the path ahead.”
FINANCIAL UPDATE
In January 2026, Kosmos successfully completed a $350 million senior secured bond offering in the Nordic market with proceeds used to repurchase ~$250 million of the Company's 2027 senior unsecured notes and to repay $100 million of borrowings under the reserve-based lending facility (RBL).
In March, Kosmos successfully raised approximately $200 million of equity with the proceeds used to accelerate debt repayment.
In April, Kosmos completed its spring RBL re-determination with the borrowing base reduced to approximately $1.25 billion. Post the sale of the Company's production assets in Equatorial Guinea, expected around midyear 2026, the borrowing base will reduce to approximately $1.2 billion,
Kosmos has growing exposure to higher near-term oil prices, with realizations and free cash flow expected to rise in the second quarter, taking account of the lag effect between sales and benchmark prices. In the second quarter so far, we have seen record pricing and record differentials for production priced off premium international benchmarks such as Dated Brent in Ghana.
Kosmos has taken advantage of a higher forward price curve to add further hedges for 2027. The company has 5.7 million barrels of oil hedged for the remainder of 2026 with an average floor of approximately $66/barrel and a further 4.0 million barrels hedged in 2027 with a floor of approximately $65/barrel.
Net capital expenditure for the first quarter of 2026 was $91 million, in line with guidance. Full year 2026 capital expenditure guidance of $350 million is unchanged.
The Company generated net cash provided by operating activities of approximately $107 million and free cash flow(1) of approximately $14 million. Kosmos exited the first quarter of 2026 with approximately $2.8 billion of net debt(1) and liquidity of approximately $488 million.
OPERATIONAL UPDATE
Production
Total net production(2) in the first quarter of 2026 averaged approximately 74,800 boepd, a record quarterly high for Kosmos, up ~25% versus first quarter 2025. The increase was largely driven by the ramp up at GTA and new wells coming online at Jubilee. Sales for the first quarter 2026 were approximately 73,800 boepd.
The Company exited the quarter in a net underlift position of approximately 1.3 mmboe.
Mauritania and Senegal
GTA Phase 1 production averaged approximately 17,000 boepd net during the quarter, or 2.85 mtpa of LNG equivalent gross as the project continued to produce above the floating LNG vessel's nameplate capacity (2.7 mtpa), benefiting from cooler seasonal temperatures. The partnership lifted 9.5 gross LNG cargos in the first quarter, in line with guidance. Full year guidance of 32-36 gross LNG cargos remains unchanged. One condensate cargo was lifted by BP in the first quarter. The second and third condensate cargos in 2026 are expected to be lifted by Kosmos and the national oil companies of Mauritania and Senegal.
Lowering operating costs for GTA Phase 1 remains a priority for the partnership in 2026 with net operating costs per boe on track to fall by more than 50% year-on-year with scope for further reductions in 2027 and beyond.
With Phase 1 production fully ramped up and performing well, the partnership is now focusing on future production growth through Phase 1+, which fully utilizes the existing infrastructure for sales to the domestic markets in Senegal and Mauritania. Heads of terms for domestic gas sales are expected in 2026. In addition, Senegal has begun construction of an onshore power plant near Saint Louis and is expected to commence construction of the gas pipeline network around the midyear, which will transport gas from the GTA hub terminal to shore for domestic power generation.
Ghana
Production in Ghana averaged approximately 35,400 boepd net in the first quarter of 2026, which included gas production of approximately 6,900 boepd. Kosmos lifted three cargos from Ghana during the quarter, in line with guidance.
At Jubilee (38.6% working interest), oil production in the first quarter averaged approximately 70,000 bopd gross. The J74 well came online in early 2026 followed by the J75 well at the end of the quarter. Both wells are performing in line with expectations.
The next well in the campaign (J76) has been drilled and the completion is about to commence. Two additional producer wells (J77 and J50) have also been drilled and will be completed shortly after J76. As the operator recently communicated, all three producer wells are expected online in June and July and Kosmos expects an aggregate contribution from these wells of around 20,000 bopd gross. A water injection well will conclude the drilling campaign and is expected online at the end of the third quarter.
At TEN (20.4% working interest), oil production averaged approximately 14,900 bopd gross for the first quarter, in line with expectations. In February 2026, the TEN partnership finalized a sale and purchase agreement to acquire the TEN FPSO at the end of its current lease. Signing the agreement is expected to significantly reduce TEN operating costs and positively impact leverage in 2026 and beyond.
Also in February, the Ghanaian parliament formally ratified the license extensions for the West Cape Three Points and Deepwater Tano Petroleum Agreements, which cover the Jubilee and TEN fields, following government approval of the extensions in December. The licenses now extend to 2040. With an extended license period, the partnership is aligned on securing a rig for the 2027/2028 drilling campaign, which is expected to include up to ten wells and start in mid-2027.
Gulf of America
Production in the Gulf of America averaged approximately 16,800 boepd net (~84% oil) during the first quarter, in line with guidance, with strong performance from the Kosmos-operated Odd Job and Kodiak fields. Early in the second quarter, the Winterfell-2 well was shut in pending future intervention.
On Tiberius, in the outboard Wilcox play, Kosmos (operator, 50% working interest) took final investment decision with our partner Occidental (50% working interest) in March. The project targets first oil in the second half of 2028, with long-lead items already secured and most of the capital expected in 2027 and 2028. A farm down to reduce Kosmos’ working interest to ~33% has now commenced and is expected to close later this year.
As previously announced, Kosmos deepened its inventory of future opportunities for its infrastructure-led exploration (ILX) strategy in the Gulf of America, entering into a strategic alliance with Shell in February in the Norphlet trend. Shell and Kosmos now have alignment over ten blocks in the Gulf of America to explore multiple high-potential prospects, including Trailblazer, a prospect with significant potential (~200 mmboe gross). In the event of success, it could be tied back into Shell's nearby Appomattox platform. Drilling of Trailblazer is planned for the first half of 2027 with Kosmos designated as development operator.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 16,000 bopd gross and 5,600 bopd net in the first quarter. Kosmos lifted 0.4 cargos from Equatorial Guinea during the quarter in line with guidance.
In February, Kosmos announced that it entered into an agreement to sell its 40.375% non-operating working interest in the Ceiba Field and Okume Complex production assets to Panoro Energy for up to $220 million. Proceeds will be used to reduce borrowings outstanding under the RBL. The transaction has been approved by the Government of Equatorial Guinea and is expected to close around midyear 2026, subject to customary CEMAC approval.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure. Net debt excludes $80.1 million TEN FPSO finance lease liability. For purposes of the debt cover ratio calculation under the RBL Facility, the finance lease liability is included in net debt.
(2) Production means net entitlement volumes. In Ghana, Equatorial Guinea, and Mauritania and Senegal this means those volumes net to Kosmos' working interest or participating interest and net of royalty or production sharing contract effect. In the Gulf of America, this means those volumes net to Kosmos' working interest and net of royalty.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss first quarter 2026 financial and operating results today, May 5, 2026, at 10:00 a.m. Central time (11:00 a.m. Eastern time). The live webcast of the event can be accessed on the Investors page of Kosmos’ website at http://investors.kosmosenergy.com/investor-events. The dial-in telephone number for the call is +1-800-715-9871. Callers in the United Kingdom should call 0800 260 6466. Callers outside the United States should dial +1-646-307-1963. A replay of the webcast will be available on the Investors page of Kosmos’ website for approximately 90 days following the event.
About Kosmos Energy
Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.
Non-GAAP Financial Measures
EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines EBITDAX as Net income (loss) plus (i) exploration expense, (ii) depletion, depreciation and amortization expense, (iii) equity based compensation expense, (iv) unrealized (gain) loss on commodity derivatives (realized losses are deducted and realized gains are added back), (v) (gain) loss on sale of oil and gas properties, (vi) interest (income) expense, (vii) income taxes, (viii) debt modifications and extinguishments, (ix) doubtful accounts expense and (x) similar other material items which management believes affect the comparability of operating results. The Company defines Adjusted net income (loss) as Net income (loss) adjusted for certain items that impact the comparability of results. The Company defines free cash flow as net cash provided by operating activities less Oil and gas assets, Other property, and certain other items that may affect the comparability of results and excludes non-recurring activity such as acquisitions, divestitures and National Oil Company ("NOC") financing. NOC financing refers to the amounts funded by Kosmos under the Carry Advance Agreements that the Company has in place with the national oil companies of each of Mauritania and Senegal related to the financing of the respective national oil companies’ share of certain development costs at Greater Tortue Ahmeyim. The Company defines net debt as total long-term debt less cash and cash equivalents and total restricted cash.
We believe that EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, Net debt and other similar measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the oil and gas sector and will provide investors with a useful tool for assessing the comparability between periods, among securities analysts, as well as company by company. EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt as presented by us may not be comparable to similarly titled measures of other companies.
This release also contains certain forward-looking non-GAAP financial measures, including free cash flow. Due to the forward-looking nature of the aforementioned non-GAAP financial measures, management cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Amounts excluded from these non-GAAP measures in future periods could be significant.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Kosmos Energy Ltd.
Consolidated Statements of Operations
(In thousands, except per share amounts, unaudited)
Three Months Ended March 31, 2026 2025 Revenues and other income: Oil and gas revenue $370,728 $290,135 Other income, net 169 296 Total revenues and other income 370,897 290,431 Costs and expenses: Oil and gas production 130,595 167,308 Exploration expenses 19,744 9,669 General and administrative 27,710 26,255 Depletion, depreciation and amortization 119,873 120,667 Interest and other financing costs, net 58,802 51,842 Derivatives, net 251,996 6,732 Other expenses, net 3,264 1,989 Total costs and expenses 611,984 384,462 Loss before income taxes (241,087) (94,031)Income tax expense (benefit) (15,513) 16,575 Net loss $(225,574) $(110,606) Net loss per share: Basic $(0.45) $(0.23)Diluted $(0.45) $(0.23) Weighted average number of shares used to compute net loss per share: Basic 506,198 475,681 Diluted 506,198 475,681 Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
March 31, December 31, 2026
2025
Assets Current assets: Cash and cash equivalents $129,957 $91,518Receivables, net 110,510 103,472Assets held for sale 18,707 —Other current assets 194,268 232,884Total current assets 453,442 427,874 Property and equipment, net 3,367,489 3,733,784Non-current assets held for sale 408,895 —Other non-current assets 553,616 534,968Total assets $4,783,442 $4,696,626 Liabilities and stockholders’ equity Current liabilities: Accounts payable $194,969 $202,555Accrued liabilities 332,078 237,609Current maturities of long-term debt 30,220 132,143Liabilities held for sale 43,544 —Other current liabilities 156,243 —Total current liabilities 757,054 572,307 Long-term liabilities: Long-term debt, net 2,866,043 2,920,616Deferred tax liabilities 134,750 305,924Long-term liabilities held for sale 260,601 —Other non-current liabilities 249,885 369,189Total long-term liabilities 3,511,279 3,595,729 Total stockholders’ equity 515,109 528,590Total liabilities and stockholders’ equity $4,783,442 $4,696,626 Kosmos Energy Ltd.
Condensed Consolidated Statements of Cash Flow
(In thousands, unaudited)
Three Months Ended March 31, 2026 2025 Operating activities: Net loss $(225,574) $(110,606)Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depletion, depreciation and amortization (including deferred financing costs) 122,465 122,551 Deferred income taxes (49,013) 1,811 Unsuccessful well costs and leasehold impairments 14,541 1,903 Change in fair value of derivatives 302,976 7,586 Cash settlements on derivatives, net(1) (81,321) 494 Equity-based compensation 5,950 8,361 Debt modifications and extinguishments (1,217) — Other (7,561) (5,597)Changes in assets and liabilities: Net changes in working capital 25,310 (27,391)Net cash provided by (used in) operating activities 106,556 (888) Investing activities Oil and gas assets (87,047) (90,245)Notes receivable and other investing activities (11,598) (44,048)Net cash used in investing activities (98,645) (134,293) Financing activities: Borrowings under long-term debt 124,167 100,000 Payments on long-term debt (277,738) — Net proceeds from issuance of senior notes and bonds 350,000 — Repurchase and redemption of senior notes (346,984) — Net proceeds from issuance of common stock 206,440 — Payments on finance lease (5,262) — Other financing costs (7,731) — Net cash provided by financing activities 42,892 100,000 Net increase (decrease) in cash, cash equivalents and restricted cash 50,803 (35,181)Cash, cash equivalents and restricted cash at beginning of period 117,744 85,277 Cash, cash equivalents and restricted cash at end of period(2) $168,547 $50,096 (1) Cash settlements on commodity hedges were $(30.3) million and $(1.8) million for the three months ended March 31, 2026 and 2025, respectively.
(2) Includes cash reported within current assets held for sale on the Consolidated Balance Sheets relating to the Ceiba and Okume Complex located in Block G offshore Equatorial Guinea cash held for sale.
Kosmos Energy Ltd.
EBITDAX
(In thousands, unaudited) Three Months Ended Twelve Months Ended March 31, 2026 March 31, 2025 March 31, 2026Net loss$(225,574) $(110,606) $(814,754)Exploration expenses 19,744 9,669 233,691 Depletion, depreciation and amortization 119,873 120,667 555,980 Impairment of long-lived assets — — 177,563 Equity-based compensation 5,950 8,361 25,542 Derivatives, net 251,996 6,732 191,599 Cash settlements on commodity derivatives (30,341) (1,751) (18,197)Other expenses, net(1) 3,263 1,989 14,766 Gain on sale of assets — — (2,200)Interest and other financing costs, net 58,802 51,842 230,390 Income tax expense (benefit) (15,513) 16,575 33,117 EBITDAX$188,200 $103,478 $627,497 Pro Forma Adjustment - TEN FPSO Lease(1) — — 47,421 Pro Forma EBITDAX 188,200 103,478 674,918 EBITDAX - M|S (5,784) (57,932) (77,333)Pro Forma EBITDAX - Base Business$193,984 $161,410 $752,251 (1) Adjustment to present Pro Forma EBITDAX for the impact to operational expense for the periods presented resulting from executing the TEN FPSO finance lease transaction.
The following table presents our net debt as of March 31, 2026 and December 31, 2025:
March 31, December 31, 2026
2025
Total long-term debt $2,946,876 $3,100,274Cash and cash equivalents 129,957 91,518Cash included in assets held for sale 7,960 —Total restricted cash 30,630 26,226Net debt(1) $2,778,329 $2,982,530 (1) Excludes $80.1 million TEN FPSO finance lease liability.
Kosmos Energy Ltd.
Adjusted Net Income (Loss)
(In thousands, except per share amounts, unaudited)
Three Months Ended March 31, 2026 2025 Net loss$(225,574) $(110,606) Derivatives, net 251,996 6,732 Cash settlements on commodity derivatives (30,341) (1,751)Other, net(2) 3,259 1,664 Write-off of leasehold costs 13,181 — Debt modifications and extinguishments (1,217) — Total selected items before tax 236,878 6,645 Income tax (expense) benefit on adjustments(1) (46,926) (1,465)Adjusted net income (loss)$(35,622) (105,426) Net loss per diluted share$(0.45) $(0.23) Derivatives, net 0.50 0.01 Cash settlements on commodity derivatives (0.06) — Write-off of leasehold costs 0.03 — Total selected items before tax 0.47 0.01 Income tax (expense) benefit on adjustments(1) (0.09) — Adjusted net income (loss) per diluted share$(0.07) $(0.22) Weighted average number of diluted shares 506,198 475,681 (1) Income tax expense is calculated at the statutory rate in which such item(s) reside. Statutory rates for the U.S., Equatorial Guinea and Ghana are 21%, 25% and 35%, respectively.
Kosmos Energy Ltd.
Free Cash Flow
(In thousands, unaudited)
Three Months Ended March 31, 2026 2025 Reconciliation of free cash flow: Net cash provided by (used in) operating activities$106,556 $(888)Net cash used for oil and gas assets (87,047) (90,245)Payments on finance lease (5,262) — Free cash flow 14,247 (91,133)Net cash provided by (used in) operating activities - M|S (4,400) 14,971 Net cash used for oil and gas assets - M|S (1,714) (49,943)Base business free cash flow$20,361 $(56,161)Kosmos Energy Ltd.
Operational Summary
(In thousands, except barrel and per barrel data, unaudited)
Three Months Ended March 31, 2026 2025 Net Volume Sold Oil (MMBbl) 4.414 3.659 Gas (MMcf) 12.749 (1)
4.172 (1)
NGL (MMBbl) 0.104 0.091 Total (MMBoe) 6.643 4.445 Total (MBoepd) 73.809 49.393 Revenue Oil sales$297,011 $270,405 Gas sales 72,104 17,629 NGL sales 1,613 2,101 Total oil and gas revenue 370,728 290,135 Cash settlements on commodity derivatives (30,341) (1,751) Realized revenue$340,387 $288,384 Oil and Gas Production Costs$130,595 (1)
$167,308 (1)
Sales per Bbl/Mcf/Boe Average oil sales price per Bbl$67.29 $73.90 Average gas sales price per Mcf 5.66 4.23 Average NGL sales price per Bbl 15.51 23.09 Average total sales price per Boe 55.81 65.27 Cash settlements on commodity derivatives per Boe (4.57) (0.39) Realized revenue per Boe 51.24 64.87 Oil and gas production costs per Boe$19.66 $37.64 Oil and gas production costs per Boe ex. M/S (1)$14.24 $24.99 (1) Includes $55.3 million and $58.1 million for the three months ended March 31, 2026 and 2025, respectively, of oil and gas production costs related to the LNG production at the GTA Phase 1 project in Mauritania and Senegal. GTA Phase 1 project LNG sales volumes for the three months ended March 31, 2026 and 2025 were 1.357 MMboe and 0.1 MMboe, respectively. First LNG was achieved in February 2025 and the first LNG cargo was successfully completed in April 2025.
Kosmos was underlifted by approximately 1.3 million barrels of oil equivalent (mmboe) as of March 31, 2026.
Kosmos Energy Ltd.
Hedging Summary
As of March 31, 2026(1)
(Unaudited)
Weighted Average Price per Bbl Index MBbl Floor(2) Sold Put Ceiling2026: Two-way collars 1H26 Dated Brent 500 $60.00 — $74.75Three-way collars FY26 Dated Brent 1,500 60.00 50.00 75.51Swaps 1H26 Dated Brent 500 72.90 — —Swaps FY26 Dated Brent 2,250 70.62 — —Swaps FY26 WTI 1,000 64.83 — —2027: Three-way collars 1H27 Dated Brent 2,000 70.00 55.00 85.00Three-way collars FY27 Dated Brent 2,000 60.00 47.50 75.00 (1) Please see the Company’s filed 10-K for additional disclosure on hedging material. Includes hedging position as of March 31, 2026 and hedges put in place through filing date.
(2) “Floor” represents floor price for collars and strike price for purchased puts.
Note: Excludes 0.6 MMBbls of Dated Brent sold calls with a strike price of $100.00 per Bbl, 0.7 MMBbls of Dated Brent sold calls with a strike price of $80.00 per Bbl and 1.5 MMBbls of Dated Brent sold puts with a strike price of $55.00 in 2026. Excludes 1.0 MMBbls of WTI sold puts with a strike price of $50.00 in 2026.
2026 Guidance
2Q 2026FY 2026 Production(1,2,3)70,000 - 74,000 boe per day70,000 - 78,000 boe per day Opex$25.00 - $28.00 per boe$20.00 - $22.00 per boe DD&A$15.50 - $17.50 per boe$18.00 - $20.00 per boe G&A(~65% cash)$20-$25 million~$75 million Exploration Expense(4)~$5 million$10 - $30 million Net Interest Expense$55 - $65 million$230 - $250 million Tax$10.00 - $13.00 per boe$5.00 - $7.00 per boe Capital Expenditure$100 - $125 million~$350 million Note: Ghana / Equatorial Guinea / Mauritania & Senegal revenue calculated by number of cargos. All guidance includes Equatorial Guinea assets. Revised guidance to be issued post the closing of transaction. Guidance includes Equatorial Guinea contribution of approximately 6,000 boepd of production, operating costs of $45-55/barrel and ~$15 million of capital expenditures.
(1) 2Q 2026 net cargo forecast – Ghana: 3-4 cargos / Equatorial Guinea: 0.4 cargo. FY 2026 Ghana: 12-13 cargos / Equatorial Guinea 2-3 cargos. Average cargo sizes 950,000 barrels of oil.
(2) 2Q 2026 gross cargo forecast - Mauritania & Senegal: 8-9 cargos. FY 2026: 32-36 cargos. Average cargo size ~170,000 m3 with Kosmos NRI of ~24%. Kosmos expects 0.3 net condensate cargos in 2Q26
(3) Gulf of America Production: 2Q 2026 forecast 14,000 - 16,000 boe per day. FY 2026: 15,000-17,000 boe per day. Oil/Gas/NGL split for 2026: ~83%/~11%/~6%.
(4) Excludes leasehold impairments and dry hole costs.
Investors might want to bet on Kosmos Energy (KOS - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Kosmos Energy basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Kosmos Energy imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Kosmos EnergyThis independent oil and gas company is expected to earn $0.24 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Kosmos Energy. Over the past three months, the Zacks Consensus Estimate for the company has increased 161.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Kosmos Energy to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
On March 31, 2026, Jeremy Grantham (Trades, Portfolio) executed a significant reduction in holdings of Kosmos Energy Ltd KOS . The transaction involved a decrease of 16,496,599 shares, representing a 47.40% reduction in Grantham's position in the company. This strategic move has drawn attention from investors and analysts, given Grantham's reputation for astute market predictions and investment strategies. The shares were traded at a price of $2.78, impacting Grantham's portfolio by -0.12%. Post-transaction, Grantham holds 18,307,718 shares, which constitute 3.16% of the total holdings in Kosmos Energy Ltd.
Jeremy Grantham (Trades, Portfolio): A Profile of Investment Acumen Jeremy Grantham (Trades, Portfolio) is the Chairman of Grantham Mayo van Otterloo (GMO) LLC, a Boston-based asset management firm. Known for identifying speculative market bubbles, Grantham has a reputation for steering clients away from impending market crashes. Over his long career, Grantham has built a reputation for correctly identifying market bubbles and avoiding investments in overvalued sectors. His top holdings include Apple Inc AAPL , Meta Platforms Inc META , Alphabet Inc GOOGL , Lam Research Corp LRCX , and Microsoft Corp MSFT , with a total equity of $39.12 billion. The firm's top sectors are Technology and Healthcare.
Understanding Kosmos Energy Ltd Kosmos Energy Ltd is a deepwater exploration and production company with operations in Ghana, Equatorial Guinea, Mauritania, Senegal, and the Gulf of America. The company has a market capitalization of $1.72 billion and is currently trading at $2.89 per share. Despite a year-to-date price increase of 223.7%, the stock has a poor GF Score of 66/100, suggesting limited future performance potential. The stock is modestly undervalued with a GF Value of $3.64, indicating a price to GF Value ratio of 0.79.
Financial Metrics and Valuation Kosmos Energy Ltd's financial metrics reveal some challenges. The company has a Balance Sheet Rank of 3/10 and a Profitability Rank of 4/10. Over the past three years, the company has experienced a 17.10% decline in revenue growth and a 43.40% decline in EBITDA growth. The Altman Z score of -0.29 and a Piotroski F-Score of 2 further highlight financial challenges. The company's Growth Rank is 5/10, and the GF Value Rank is 8/10.
Other Notable Investors in Kosmos Energy Ltd Aside from Jeremy Grantham (Trades, Portfolio), other notable investors in Kosmos Energy Ltd include Jefferies Group (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), and Barrow, Hanley, Mewhinney & Strauss. The largest holder of Kosmos Energy Ltd shares is Hotchkis & Wiley Capital Management LLC. These investors' involvement indicates a continued interest in the company's potential, despite its current financial challenges.
Transaction Analysis The reduction in Grantham's stake in Kosmos Energy Ltd reflects a strategic decision to adjust the firm's portfolio. The transaction's impact on the portfolio was -0.12%, indicating a relatively minor adjustment in the overall scheme of Grantham's investments. However, the decision to reduce holdings by nearly half suggests a reassessment of the company's future prospects, possibly influenced by its financial metrics and market conditions. This move may prompt other investors to reevaluate their positions in Kosmos Energy Ltd, considering the insights and strategies of a seasoned investor like Grantham.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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Kosmos Energy Ltd. (KOS) reported Q1 2026 EPS of -$0.07, missing consensus of $0.08 and triggering a 6% pre-market decline. My BUY rating remain, and increased the price target from $4.97 to $7.26 on the back of higher oil prices. Management demonstrated Turnaround progress with annualized oil production increasing more than 20% YoY.
