KOS - Kosmos Energy: Production FCF Increases Expected And Quite Cheap

2024-03-22 17:17:24 ET

Summary

• Kosmos Energy announces impressive increase in new production for 2024 and increased FCF expectations.
• Data from Yakaar and Teranga discoveries and lower capex expectations could accelerate FCF expectations.
• Despite risks such as share count increases and debt, Kosmos Energy is considered a buy.

Kosmos Energy Ltd. ( KOS ) recently announced an impressive increase in the new production for 2024 in oil and gas, and many analysts increased their FCF expectations. Besides, data coming from the Yakaar and Teranga discoveries and lower capex expectations for 2024 and 2025 could also accelerate FCF expectations in the coming months. I believe that stock dilution could represent a risk and the debt is not small. With that, I think that KOS is a buy. We are talking about a company that trades at 3.52x forward EBITDA , and intends to lower its debt obligations as new FCF comes in.

Kosmos

Kosmos is an independent company specialized in deepwater oil and gas exploration and production along the offshore Atlantic margins. Its main operations cover Ghana, Equatorial Guinea, and the Gulf of Mexico, with additional gas projects in Mauritania and Senegal ....

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