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
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
