Start here if you're new
what it is
Kosmos drills for oil and gas in deepwater fields off Africa and the Gulf of America, then sells what it produces.
how it gets paid
Last year Kosmos Energy made $1.7B in revenue. Ghana was the main engine at $0.40B, or 20% of sales.
what just happened
Latest quarter revenue hit $870M, but EPS fell to -$0.68 and that is the number your portfolio feels.
At a glance
C+ balance sheet — struggling to keep the lights on
20/100 earnings predictability — expect surprises
2.2x trailing p/e — the market's not buying it — or you found a deal
5.9% return on capital — nothing to write home about
$0.40 fy2024 eps est
xvary composite: 23/100 — weak
What they do
Kosmos drills for oil and gas in deepwater fields off Africa and the Gulf of America, then sells what it produces.
Kosmos wins by owning hard-to-replace offshore positions in five producing or development areas, with just 243 employees running the platform. Operating margin was 55.2% in 2024, which means after the wells, ships, and operating costs, more than half of each revenue dollar stayed in the business. If you want exposure to these barrels, you are buying access to scarce acreage, not a prettier logo.
How they make money
$1.7B
annual revenue
Ghana
$0.40B
Equatorial Guinea
$0.40B
Mauritania
$0.40B
Senegal
$0.40B
Gulf of America
$0.40B
The products that matter
offshore oil production
Jubilee & TEN Fields
core producing assets
These Ghana assets are the current backbone, but Kosmos ended 2025 underlifted by 1.1 million barrels of oil equivalent. That means some production showed up in operations before it showed up in revenue.
current cash flow
lng development
Tortue Phase 1
major capital project
This offshore Mauritania/Senegal gas project is the future case for the stock. It's also why execution matters so much when you already have $2.7B of long-term debt.
future cash flow bet
Key numbers
2.2x
trailing p/e
You are paying 2.2 times trailing earnings, which screams cheap, but the market is charging a discount for leverage and volatility.
$2.7B
long-term debt
Debt is the real story here because it is nearly three times the company's roughly $1 billion market cap.
55.2%
operating margin
Operating margin → profit after running the business → so what: the assets throw off strong unit economics when production behaves.
$0.40
2024 EPS est.
That is the full-year earnings estimate for 2024, which makes the latest quarterly loss look even uglier in context.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $2.7B (66% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for KOS right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest quarter revenue hit $870M, but EPS fell to -$0.68 and that is the number your portfolio feels.
Revenue jumped 94% vs. prior year, but profit still broke the wrong way. That is the quiet part out loud: more sales do not help much if the capital structure and operating swings eat the benefit.
$870M
revenue
$0.68
eps
55.2%
operating margin
the number that mattered
EPS of -$0.68 matters more than the revenue jump because a company with $2.7 billion of debt cannot live on volume alone.
source: company earnings report, 2026
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What could go wrong
The top risk is discounted equity issuance to support a heavily leveraged offshore balance sheet.
high
Dilutive Equity Offering
March 10, 2026 — Kosmos announced a $175M public stock offering priced at a 21% discount to market.
It already cut the stock about 20%. It also means existing holders now own a smaller slice of any future recovery.
high
Material Weakness in Financial Reporting
June 26, 2023 — an auditor cited risk around not detecting a material misstatement from fraud.
Governance problems are bad in any stock. They are worse in a leveraged one asking the market for fresh capital.
med
$2.7B Debt Load
Long-term debt is 66% of total capital and the balance sheet grade is C+.
That leverage limits flexibility. If project timing slips or commodity prices weaken, the capital structure takes the first punch.
med
Revenue Timing Distortion From Underlifts
Kosmos ended 2025 underlifted by 1.1 million barrels of oil equivalent.
That does not destroy value by itself, but it makes near-term reported revenue harder to read in a stock that already has 20 / 100 predictability.
Put the numbers together: $2.7B of debt on a $1B market cap company that just sold $175M of stock at a 21% discount. That's a financing problem first and an equity story second.
source: institutional data · regulatory filings · risk analysis
Pay attention to
capital structure
whether the $175M raise is enough
A discounted raise buys time, not credibility. If Kosmos needs more equity soon, the dilution story gets worse fast.
calendar
q1 2026 earnings report
Estimated May 11, 2026. You want to see how management explains the raise, updated liquidity, and whether guidance changes again.
costs
$100M cost reduction target
Management says it is targeting more than $100M of net cost reductions in 2026. In human-speak: they need the expense base to move, not just the PowerPoint.
governance
board structure and shareholder pushback
A shareholder engagement report noted votes against all director nominees because of the classified board structure. Governance rarely drives the first selloff, but it can make recovery harder.
Analyst rankings
earnings predictability
20 / 100
Earnings are hard to model here. In human-speak, analysts do not trust near-term results to show up cleanly quarter after quarter.
risk rank
5
That means safer than only 5% of stocks in the dataset. You are getting paid for risk here because there is a lot of it.
source: institutional data
Institutional activity
institutional ownership data for KOS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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