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Tag: Kosmos Energy

  • Pre-Market Gains For Kosmos Energy (KOS) Amid Acquisition Withdrawal

    Pre-Market Gains For Kosmos Energy (KOS) Amid Acquisition Withdrawal

    Kosmos Energy Ltd. (NYSE: KOS) has captured attention on the US stock charts following a key strategic decision. After declining to pursue an acquisition, KOS stock surged by 14.76% in the pre-market session, reaching $3.11 as of the latest update. This development reflects growing investor confidence in the company’s strategic focus.

    Withdrawal from Tullow Acquisition Discussions

    Kosmos Energy declared that it will not be submitting a formal offer to buy Tullow Oil plc. A possible all-share deal was alluded to in earlier, exploratory talks between the two organizations. In accordance with the limitations imposed by Rule 2.8 of the UK Takeover Code, KOS indicated that it will not move further with the purchase at this time. This choice demonstrates the company’s careful approach to major acquisitions and strategic assessment.

    Despite stepping back, Kosmos retains certain rights under the Code’s provisions. For instance, the company may reconsider its stance if Tullow’s Board agrees to set aside the restrictions, if a third party declares an intention to acquire Tullow, or if Tullow announces significant corporate changes such as a Rule 9 waiver or a reverse takeover. These contingencies allow KOS to remain agile while prioritizing its current strategic objectives.

    Background of the Preliminary Discussions

    Last week, KOS acknowledged Tullow’s disclosure regarding preliminary talks of a potential transaction. The topic of discussion was Kosmos’ potential all-share bid for Tullow. However, the company made no guarantees regarding the certainty or structure of any such offer. The company explicitly reserved the right to modify the terms and structure of any future proposals, highlighting its flexible yet cautious approach.

    Regulatory Compliance and Timeline

    Kosmos adhered to regulatory timelines stipulated by Rule 2.7 of the UK Takeover Code. By January 9, 2025, the company was required to either announce a firm intention to make an offer or confirm its decision not to proceed. The latest announcement formalizes the company’s choice to withdraw from the acquisition pursuit, marking it as a statement governed by Rule 2.8 of the Code.

    Market Implications

    This strategic retreat has been positively received by the market, as reflected in the rising share value. Kosmos’ prudent decision-making process, paired with its ability to revisit the acquisition under specific circumstances, underscores its commitment to creating shareholder value while maintaining strategic flexibility.

  • How Did The Kosmos (KOS) Stock Rise 5% In Extended Trades?

    How Did The Kosmos (KOS) Stock Rise 5% In Extended Trades?

    Kosmos Energy Ltd. (KOS) gained 4.33% to trade at $2.41 in after-hours trading on Friday. Kosmos closed at $2.31 after falling -7.23% during the regular session. There were 9.56 million shares traded of KOS stock, which is a larger amount than the average volume for the past three months of 7.02 million shares. During the regular session, KOS fluctuated from $2.30 to $2.60.

    With an earnings ratio of -0.79, KOS had negative earnings per share. On a year-to-date basis, KOS stock has lost -1.70% but the loss rises to -24.51% in the past five sessions. As of Friday, KOS has an SMA-50 of $3.20, higher than its 200-day moving average of $2.54. Also, the RSI of KOS trades at 28.65.

    As KOS stock recovered in the extended trades when no new information was available, so there may be some reason to believe that recent developments will reveal new information about the KOS.

    What has been happening at KOS lately?

    Kosmos is an independent deepwater oil and gas exploration and production company focusing on the Atlantic Margin. One of KOS’s key assets is a world-class gas development offshore Mauritania and Senegal, as well as production offshore Ghana, Equatorial Guinea, and the Gulf of Mexico. In keeping with its ethical, transparent, and professional ethos, KOS does things the right way. The KOS Business Principles identify the company’s commitment to transparency, ethics, human rights, environmental protection, and safety.

    A recent operational report by Kosmos Energy elaborated upon the company’s production, development, and exploration activities.

    • It is ahead of KOS’ financial results for the second quarter, which will be released on August 9, 2021.
    • With infill drilling planned in all three hubs, KOS has an active second half of the year, which is supportive of near-term production growth.
    • As well, KOS plans to relaunch exploration and appraisal drilling for the Winterfell appraisal well and Zora ILX well this quarter.
    • KOS is in a strong position to create shareholder value throughout the rest of 2021 as oil prices rise and its financial position strengthens.
    • In line with guidance, KOS’ sales volumes in the second quarter averaged 66,000 barrels of oil equivalent per day (boepd), with 4.5 cargos lifted.
    • During the second quarter, net production at KOS averaged approximately 52,000 boepd, a modest decline primarily due to lower production in Equatorial Guinea.
    • KOS plans to produce 53,000 to 57,000 boepd for the full year, with an additional 60,000 boepd expected to be produced from new wells by year-end.

    How does KOS anticipate the second quarter?

    As a result of higher sales volumes, strong operational performance in Ghana, and rising realized oil prices, Kosmos (KOS) generated positive cash flow in the second quarter that helped to reduce its net debt by around $100 million. With a new drilling rig has been sent to Equatorial Guinea for development drilling, and two new oil wells were drilled in Ghana and the U.S. Gulf of Mexico, KOS has been seeing increase in production across its hubs during the quarter.

  • 15 Hot Stocks for Friday in Oil & Gas Industry

    Oil in London has risen above $50 a barrel for the first time since the pandemic brought the global economy to a halt in a remarkable rally that few predicted would soon happen.
    International index futures rose 2.8% on Thursday to a nine-month peak. The revival is a startling reversal for a business brought to a halt earlier this year by an unforeseen lack of demand. With places to hold surplus oil drying out, OPEC and its allies worked together to stagnate outflows and balance prices as the world searched for a vaccine.
    Last month’s reports by Pfizer Inc. and others that effective vaccinations will be carried out by spring enhanced the global demand forecast. In the wake of strong purchases by China’s private refiners, Asia appears to lead the physical demand turnaround. The U.S. dollar also declined, which boosted the appeal for currency-priced commodities and helped thrust Brent over $50.

    Marathon Oil Corporation (NYSE:MRO) shares were trading up 2.10% at $7.30 at the time of writing on Thursday.

    Marathon Oil Corporation (NYSE:MRO) share price went from a low point around $3.02 to briefly over $14.07 in past 52 weeks, though shares have since pulled back to $7.30. MRO market cap has remained high, hitting $5.21B at the time of writing, giving it price-to-sales ratio of more than 1.

    If we look at the recent analyst rating MRO, Tudor Pickering upgraded coverage on MRO shares with a Buy rating and a $6.76 price target, which implies room for -0.54% downside momentum this year.

    Exxon Mobil Corporation (XOM) last closed at $44.01, in a 52-week range of $30.11 to $71.37. The firm reported on December 1, 2020, that it has completed a review of its forward business plans and will prioritize near-term capital spending on advantaged assets with the highest potential future value. Analysts have a consensus price target of $43.77.

    PetroleoBrasileiro S.A. – Petrobras (PBR) stock soar by 6.63% to $11.26. The most recent rating by Raymond James, on May 18, 2020, is at an Underperform.

    Kinder Morgan Inc. (NYSE:KMI) Shares headed rising, higher as much as 1.23%.The company recently declared its preliminary financial projections for 2021. The most recent rating by Wells Fargo, on November 30, 2020, is at an Equal weight.

    Energy Transfer LP (NYSE:ET) rose 5.08% after gaining more than $0.33 on Thursday.

    BP p.l.c. (BP) last closed at $22.41, in a 52-week range of $14.74 to $40.08. Analysts have a consensus price target of $28.19.

    Apache Corporation (APA) stock soar by 9.85% to $16.50. OnDecember 7, 2020, the board of directors of Apache Corporation (APA) has declared a regular cash dividend on the company’s common shares. The most recent rating by CapitalOne, on September 11, 2020, is at an Overweight.

    ConocoPhillips (NYSE:COP) Shares headed rising, higher as much as 3.04%. The firm recently reported exchange offers. The most recent rating by BofA Securities, on November 02, 2020, is at a Buy.

    Kosmos Energy Ltd. (NYSE:KOS) rose 20.81% after gaining more than $0.41 on Thursday after reporting that it has closed the transaction with B.V. Dordtsche Petroleum Maatschappij (“Shell”), to farm down interests in Suriname, Sao Tome & Principe and Namibia for approximately $95 million, plus future contingent payments of up to $100 million.

    Schlumberger Limited (SLB) last closed at $23.38, in a 52-week range of $11.87 to $41.14. Analysts have a consensus price target of $22.96.

    Enterprise Products Partners L.P. (EPD) stock soar by 3.39% to $21.37 following the declaration from the firm that it has become a member of The Alliance to End Plastic Waste, an international community of CEOs from across the plastic value chain who are committed to addressing the global plastic waste challenge.The most recent rating by Wolfe Research, on November 23, 2020, is at an Outperform.

    The Williams Companies Inc. (NYSE:WMB) Shares headed falling, lower as much as -1.79%. The firm recently revealed the appointment of Rose Robeson as an independent director on the Board. The most recent rating by Goldman, on October 15, 2020, is at a Neutral.

    Chevron Corporation (NYSE:CVX) rose 3.22% after gaining more than $2.91 on Thursday. On December 3, 2020, the company reported a 2021 organic capital and exploratory budget of $14 billion.

    Halliburton Company (HAL) last closed at $19.99, in a 52-week range of $4.25 to $25.47. The firm on December 2, 2020 declared a partnership with Accenture (NYSE: ACN), to fast Halliburton’s digital supply chain transformation and support digitalization within the Company’s manufacturing function. Analysts have a consensus price target of $16.32.

    Range Resources Corporation (RRC) stock soar by 9.04% to $7.72. The most recent rating by Stephens, on November 16, 2020, is at an Overweight.