Why These Energy Stocks Are Losing This Week

6. Kosmos Energy Ltd. (NYSE:KOS)

Share Price Decline Between Mar. 27 and Apr. 3: 22.08%

Kosmos Energy Ltd. (NYSE:KOS) is a leading deepwater exploration and production company with assets in proven basins offshore Ghana, Equatorial Guinea, and the Gulf of America, as well as a world-class gas development offshore Mauritania and Senegal.

Shares of Kosmos Energy Ltd. (NYSE:KOS) continue to plunge after it posted its Q4 2024 results, reporting a net loss of $7 million against a net income of $22 million in the same period in 2023. Hence, the company’s planned 2025 CapEx budget of $400 million is down by over 50% from recent years, as it aims to prioritize the generation of free cash flow from its increased production base together with disciplined capital investment.

Hotchkis & Wiley stated the following regarding Kosmos Energy Ltd. (NYSE:KOS) in its Q4 2024 investor letter:

Kosmos Energy Ltd. (NYSE:KOS) is an independent exploration and production company focused offshore. In addition to its existing production, KOS has liquefied natural gas assets that are set to begin production in 2024 and a platform to acquire and operate additional offshore resources. Performance was negatively impacted by a report stating the company was interested in acquiring competitor Tullow Oil. The report was subsequently dismissed and shares rebounded modestly, though not enough to fully recover. We continue to believe Kosmos enjoys a competitive advantage due to the expertise required to explore, discover, and operate assets offshore. We also view the stock as being significantly undervalued as the stock doesn’t fully reflect the value of the company’s existing production.”