Kosmos Energy: Scratched And Dented, But Still A Strong Buy

Kosmos Energy (KOS) has faced challenges but is poised for growth with the upcoming start of the Tortue LNG project, lower capex, and increased cash flow.
Operational issues at Winterfell and Jubilee, and the FID delay for Tiberius, have been offset by positive developments in other projects and debt rescheduling.
The balance sheet is stronger with new senior notes, and reduced capex will allow for debt reduction and potential shareholder returns by 2026.
Despite current market reactions, I maintain a Strong Buy rating for KOS, with a price target of $8.00-$10.00 as cash flow improves.

FatCamera/E+ via Getty Images

Introduction

Kosmos Energy, (NYSE:KOS) has had a tough year on Wall Street and in some of its GoM and Ghanan operations. The macro environment for gas upon which its marquee, Tortue LNG project in Mauritania/Senegal rests, hasn't

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