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Kosmos Energy Ltd.
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$1.3B
Market Cap
8.6
P/E
10.12
PEG
-11.4%
ROCE
-80.9%
ROE
5.80
D/E
-32.5%
OPM
-19.3%
% from 52W High
96
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for KOS including FX impact
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📈 Price History
Ratio Health
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About

Kosmos Energy Ltd., a deepwater exploration and production company, engages in the exploration, development, and production of oil and natural gas properties. It has oil and gas production projects in offshore Ghana, Equatorial Guinea, Mauritania, Senegal, and the Gulf of America. The company was founded in 2003 and is headquartered in Dallas, Texas.

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📈 Growth Pattern
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⭐ Superinvestors Holding KOS
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 5.34M $14.8M 0.02% Mar 2026
Steve Cohen Point72 Asset Management 1.96M $5.5M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Kosmos Energy Q1 2026 record production 75k BOE/d, up 25% YoY, reducing net debt 7% from year-end.
Revenue & Profitability
The company reported record quarterly production of 75,000 BOE per day in Q1 2026. Realized price was slightly lower year-on-year due to the changing production mix with more gas volumes from GTA. Operating expenses came in at just under $20 per BOE, a 47% decrease year-on-year. Net debt was reduced by approximately 7% from year-end 2025, and the company has doubled its debt reduction target to around 20% by year-end 2026. Specific revenue and net income figures were not provided in the call.
Outlook
Management highlighted that Dated Brent hit an all-time record high in early April and continues to trade at a premium to Brent futures due to market tightness from the Middle East conflict. The premium of Dated Brent over WTI has more than tripled. However, due to pricing lags in sales contracts, the benefit of higher prices that started in late Q1 will be realized in the second and third quarters of 2026. The outlook acknowledges potential future price declines but notes that the lag effect provides some protection.
Growth Drivers
Key growth drivers include the ramp-up of GTA, which produced above its nameplate capacity in Q1, and the ongoing Jubilee drilling campaign in Ghana, with three new producer wells expected online in June and July 2026 that should add around 20,000 bbl per day gross. The Tiberius project in the Gulf of Mexico reached FID with first oil expected in the second half of 2028. The company also entered a strategic exploration alliance with Shell targeting the Trailblazer prospect, which has around 200 million barrels of oil-equivalent gross resource. The GTA Phase 1 expansion is progressing with pipeline infrastructure and a power station in Senegal.
Balance Sheet & CapEx
CapEx guidance for 2026 remains unchanged and is expected to be around $400 million, with a focus on sustaining capital. The Tiberius development will have capital spent largely in 2027 and 2028, with net CapEx of around $100 million. The GTA Phase 1 expansion requires minimal CapEx for Kosmos. A farm-out process is underway for Tiberius to reduce Kosmos's working interest to around one-third, and proceeds are expected to cover 2026 CapEx. For 2027, management indicated CapEx would be 'tight' and only modestly higher than 2026.
Margins
Operating expenses per BOE decreased 47% year-on-year to just under $20 in Q1 2026. The company is targeting a 20% reduction in absolute operating costs this year, and management expressed confidence in potentially exceeding that target. Combined with production growth, this should deliver a reduction of around 35% in operating costs per BOE year-on-year. For GTA, management expects OpEx to decline to sub-$4 per MMBtu as expansion volumes are added without increasing fixed costs. The Tiberius project is expected to have development costs of around $10 per barrel and operating and transport costs of around $20 per barrel for the first phase, indicating high margins.
Key Risks
Key risks flagged include commodity price volatility and the lag in realizing higher prices in revenue due to sales contract structures. Hedging positions resulted in a large mark-to-market loss; cash derivative costs were about $30 million in Q1. Operational risks include the Winterfell-2 well shut-in in the Gulf of Mexico and seasonality at GTA affecting LNG production. Tax exposure was noted as an area to monitor, with cash taxes only paid in Ghana currently. The company also faces execution risks related to the Jubilee drilling campaign and the farm-out process for Tiberius.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-03
Production rose 18% and net debt fell by 50% versus year-end 2025, driven by strong performance at Jubilee, GTA, and Gulf of Mexico assets. Significant cost reductions and portfolio optimization improved margins, while progress on growth projects and refinancing initiatives support a positive outlook.
Q1 2026 Q1 2026 2026-05-05
Record Q1 production and significant cost reductions drove improved financials, with net debt down and leverage targets accelerated. Growth projects and asset sales support a positive outlook, while exposure to premium benchmarks and prudent capital allocation position the company for further gains.
Q4 2025 Q4 2025 2026-03-02
Strong operational and financial progress in Q4 and early 2026, with production growth, cost reductions, and debt paydown underway. Ghana and GTA assets are driving performance, while asset sales and strategic partnerships support a lower-cost, growth-focused portfolio.
Q3 2025 Q3 2025 2025-11-03
Production is nearing record highs with further growth expected from Jubilee and GTA, while costs and CapEx are falling below guidance. Debt maturities have been extended, hedging increased, and new revenue streams added, supporting improved balance sheet resilience.
Q2 2025 Q2 2025 2025-08-04
Production is nearing record highs as GTA achieves commercial operations and Jubilee drilling resumes. CapEx guidance is reduced to $350 million, with strong free cash flow and proactive debt management supporting long-term growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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