By Alex Kozul-Wright
Kosmos Energy shares fell 19.9% in premarket trading Wednesday but the moves seem unrelated to the Iran war where Brent crude futures and West Texas Intermediate, have experienced wild swings.
The exploration and production company said it would underwrite a public offering of 97.5 million shares of common stock at $1.90 per share late Tuesday. The stock has been riding high the past three months, up 134% but has been volatile since the start of the war in Iran.
Kosmos Energy said the offering is expected to generate $185.25 million and the transaction is slated to close Thursday.
"Kosmos intends to use the net proceeds from this offering to repay outstanding borrowings under its commercial debt facility and repayment of additional outstanding debt," the company said in a statement.
Kosmos exited the fourth quarter of 2025 with approximately $3 billion of net debt, according to it's February earnings statement, compared with a current market capitalization of roughly $1.2 billion. So the transaction should lower its debt pile.
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
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(END) Dow Jones Newswires
March 11, 2026 08:51 ET (12:51 GMT)
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