Kosmos Energy (KOS) AI Stock Analysis

• Market Cap: $836.94M
• Dividend Yield: N/A
• Average Volume (3M): 9.15M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.19
• Revenue Growth: -21.77%
• EPS Growth: -160.32%
• Country: US
• Employees: 243
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.19
• Shares Outstanding: 478,253,970
• 10 Day Avg. Volume: 9,842,373
• 30 Day Avg. Volume: 9,150,551
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.33
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 14.11
• Enterprise Value/Ebitda: 6.52
• 1Y Price Target: $2.55
• Price Target Upside: 45.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: $2.00 ▲(14.29% Upside)

Kosmos Energy's overall score is primarily impacted by financial challenges, including high leverage and negative profitability. While the earnings call provided some positive operational updates, the technical indicators and valuation metrics suggest caution. The company's focus on cost reduction and production enhancement is a positive, but financial and operational risks remain significant.

Positive Factors

Operational Milestone

Achieving the Commercial Operations Date for the Gimi FLNG vessel signifies a major step forward in Kosmos Energy's operational capabilities, enhancing its LNG production capacity and potentially boosting long-term revenue streams.

Cost Management

A significant reduction in capital expenditures indicates strong cost management, which can improve financial stability and allow for reinvestment in growth opportunities, enhancing long-term profitability.

Financial Strategy

Securing a new term loan to address debt maturities improves liquidity and financial resilience, providing Kosmos with greater flexibility to manage its debt and invest in strategic initiatives.

Negative Factors

High Leverage

High leverage poses a financial risk by increasing the company's vulnerability to interest rate changes and economic downturns, potentially limiting its ability to invest in growth or weather financial challenges.

Negative Cash Flow

Negative free cash flow indicates challenges in generating surplus cash after capital expenditures, which can limit the company's ability to fund operations, invest in growth, or reduce debt, impacting long-term financial health.

Declining Revenue

Declining revenue reflects challenges in maintaining top-line growth, which can pressure margins and profitability, potentially affecting the company's competitive position and ability to invest in future opportunities.

Kosmos Energy Business Overview & Revenue Model

Company Description

Kosmos Energy Ltd., a deep-water independent oil and gas exploration and production company, focuses along the Atlantic Margins. The company's primary assets include production offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program. The company was founded in 2003 and is headquartered in Dallas, Texas.

How the Company Makes Money

Kosmos Energy generates revenue primarily through the production and sale of crude oil and natural gas. The company earns money by operating oil and gas fields, selling the extracted hydrocarbons to refiners and distributors at market rates. Key revenue streams include production from its operated fields, as well as royalties and production-sharing agreements with host governments in the countries where it operates. Additionally, Kosmos engages in joint ventures and partnerships with other energy companies, which can provide shared resources and reduce operational costs, further enhancing profitability. Factors contributing to its earnings include fluctuating commodity prices, operational efficiency, and successful exploration results that lead to new production opportunities.

Kosmos Energy Financial Statement Overview

Summary

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

Income Statement

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

Balance Sheet

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

Cash Flow

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

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

Kosmos Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOS, the sentiment is Neutral. The current price of 1.75 is above the 20-day moving average (MA) of 1.72, below the 50-day MA of 1.80, and below the 200-day MA of 2.24, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 44.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KOS.

Kosmos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTS	73 Outperform	$904.33M	22.51	6.49%	9.45%	3.96%	29.26%
INR	66 Neutral	$829.75M	―	―	―	―	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HPK	64 Neutral	$909.41M	8.39	6.80%	2.22%	-20.30%	-27.90%
VTLE	56 Neutral	$660.55M	2.02	-30.17%	―	5.26%	-309.56%
KOS	53 Neutral	$836.94M	4.03	-14.81%	―	-21.77%	-160.32%

Kosmos Energy Corporate Events

Kosmos Energy Announces CCO Retirement and Leadership Change

On August 19, 2025, Kosmos Energy Ltd. announced that Christopher J. Ball, the Chief Commercial Officer, will retire effective September 30, 2025. His responsibilities will be taken over by Neal D. Shah, the current Chief Financial Officer. Following his retirement, Mr. Ball will continue to provide advisory services to the company under an Advisory Agreement, for which he will be compensated. This transition marks a significant change in the company’s leadership structure, potentially impacting its commercial operations and strategic direction.