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Kosmos Energy (KOS) Risk Analysis
Risk Overview Q2, 2026
Source: the company's latest filing for the period ended Jun 30, 2026, filed Aug 03, 2026
Risk Change Over Time
- Debt & Financing - Risk 1Our commercial debt facility facility, GoA Term Loan Facility, the bond terms governing our GTA Nordic bonds and the indentures governing our Senior Notes and Convertible Senior Notes contain certain covenants that may inhibit our ability to make certain investments, incur additional indebtedness and engage in certain other transactions, which could adversely affect our ability to meet our future goals.
Our commercial debt facility, GoA Term Loan Facility, the bond terms governing our GTA Nordic bonds and the indentures governing our Senior Notes and Convertible Senior Notes include certain covenants that, among other things, restrict: - our investments, loans and advances and certain of our subsidiaries' payment of dividends and other restricted payments;- our incurrence of additional indebtedness;- the granting of liens, other than liens created pursuant to the commercial debt facility, GoA Term Loan Facility, the bond terms governing our GTA Nordic bonds or the indentures governing our Senior Notes and Convertible Senior Notes and certain permitted liens;- mergers, consolidations and sales of all or a substantial part of our business or licenses;- the hedging, forward sale or swap of our production of crude oil or natural gas or other commodities;- the sale of assets (other than production sold in the ordinary course of business); and - in the case of the commercial debt facility and the GoA Term Loan Facility, our capital expenditures that we can fund with the proceeds of our commercial debt facility and GoA Term Loan Facility. Our commercial debt facility, the bond terms governing our GTA Nordic bonds and GoA Term Loan Facility require us to maintain certain financial ratios, such as asset coverage ratios, debt service coverage ratios and cash flow coverage ratios. All of these restrictive covenants may limit our ability to move funds among our subsidiaries, operate our business, or expand or pursue our business strategies. Our ability to comply with these and other provisions of our commercial debt facility, GoA Term Loan Facility, the bond terms governing our GTA Nordic bonds and the indentures governing our Senior Notes and Convertible Senior Notes may be impacted by changes in economic or business conditions, our results of operations or events beyond our control. The breach of any of these covenants could result in a default under our commercial debt facility, GoA Term Loan Facility, the bond terms governing our GTA Nordic bonds and the indentures governing our Senior Notes and Convertible Senior Notes, in which case, depending on the actions taken by the lenders thereunder or their successors or assignees, such lenders could elect to declare all amounts borrowed under such debt instruments, together with accrued interest,to be due and payable. If we were unable to repay such borrowings or interest, our lenders, successors or assignees could proceed against their collateral. If the indebtedness under our commercial debt facility, GoA Term Loan Facility, the bond terms governing our GTA Nordic bonds and the indentures governing our Senior Notes and Convertible Senior Notes were to be accelerated, our assets may not be sufficient to repay in full such indebtedness. In addition, the limitations imposed by such debt instruments on our ability to incur additional debt and to take other actions might significantly impair our ability to obtain other financing.
Risk Highlights Q2, 2026
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 52
- Share Price & Shareholder Rights - Risk 1The unit partners' respective interests in the Jubilee Unit and Greater Tortue Ahmeyim Unit are subject to redetermination and our interests in each such unit may decrease as a result.
The interests in and development of the Jubilee Field are governed by the terms of the Jubilee UUOA. The parties to the Jubilee UUOA, the collective interest holders in each of the WCTP and DT Blocks, initially agreed that interests in the Jubilee Unit will be shared equally, with each block deemed to contribute 50% of the area of such unit. The respective interests in the Jubilee Unit were therefore initially determined by the respective interests in such contributed block interests. Pursuant to the terms of the Jubilee UUOA, the percentage of such contributed interests is subject to a process of redetermination. Following an initial redetermination process completed on OctoberĀ 14, 2011, the tract participation was determined to be 54.4%for the WCTP Block and 45.6% for the DT Block. Consequently, our Unit Interest (participating interest in the Jubilee Unit) was increased from 23.5% to 24.1% upon completion of the initial redetermination process. Following the acquisition of Anadarko WCTP Company in October 2021 and completion of the subsequent pre-emption by Tullow in March of 2022, Kosmos' interest in the Jubilee Unit Area now stands at 38.6%. An additional redetermination could occur sometime if requested by a party that holds greater than a 10% interest in the Jubilee Unit. We cannot assure you that any redetermination pursuant to the terms of the Jubilee UUOA will not negatively affect our interests in the Jubilee Unit or that such redetermination will be satisfactorily resolved. The interests in and development of the Greater Tortue Ahmeyim Field are governed by the terms of the GTA UUOA. The parties to the GTA UUOA, the collective interest holders in each of the Mauritania Block C8 and Senegal Saint Louis Offshore Profond blocks, initially agreed that interests in the Greater Tortue Ahmeyim Unit will be shared equally, with each block deemed to contribute 50% of the area of such unit. The respective interests in the Greater Tortue Ahmeyim Unit were therefore initially determined by the respective interests in such contributed block interests. Pursuant to the terms of the GTA UUOA, the percentage of such contributed interests is subject to a process of redetermination once sufficient development work has been completed in the unit. We cannot assure you that any redetermination pursuant to the terms of the GTA UUOA will not negatively affect our interests in the Greater Tortue Ahmeyim Unit or that such redetermination will be satisfactorily resolved.
- Share Price & Shareholder Rights - Risk 2Our share price may be volatile, and purchasers of our common stock could incur substantial losses.
Our share price may be volatile. The stock market in general has experienced extreme volatility that has often been unrelated to the operating performance of particular companies. The market price for our common stock may be influenced by many factors, including, but not limited to: - the price of oil, natural gas and LNG;- the success of our exploration and development operations, and the marketing of any oil and natural gas we produce;- operational incidents;- regulatory developments in the United States and foreign countries where we operate;- the recruitment or departure of key personnel;- quarterly or annual variations in our financial results or those of companies that are perceived to be similar to us;- market conditions in the industries in which we compete and issuance of new or changed securities;- analysts' reports or recommendations;- the failure of securities analysts to cover our common stock or changes in financial estimates by analysts;- the inability to meet the financial estimates of analysts who follow our common stock;- the issuance or sale of any additional securities of ours;- investor perception of our company and of the industry in which we compete; and - general economic, political and market conditions.
- Share Price & Shareholder Rights - Risk 3Holders of our common stock will be diluted if additional shares are issued.
We may issue additional shares of common stock, securities that are convertible into shares of common stock, preferred shares, warrants, rights, units and debt securities for general corporate purposes, including, but not limited to, repayment or refinancing of borrowings, working capital, capital expenditures, investments and acquisitions. We continue to actively seek to expand our business through complementary or strategic acquisitions, and we may issue additional shares of common stock in connection with those acquisitions. We also issue restricted share units to our executive officers, employees and independent directors as part of their compensation. If we issue additional shares of common stock or securities that are convertible into shares of common stock in the future, it may have a dilutive effect on our current outstanding shareholders.
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