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Tag: NYSE: KOS

  • 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.

  • 3 High Potential Stock to Watch Today: Biotechs Lead the Way

    MyoKardia Inc [NASDAQ: MYOK]

    In a bid to expand its portfolio of heart drugs, Bristol-Myers Squibb Co. Has agreed with MyoKardia Inc to purchase the company for $13.1 billion. In the agreement, Bristol-Myers is set to pay $225 per share which is about 61% premium over the company’s Friday’s closing stock price. MyoKardia’s stock price had risen 59% in its premarket trading.  Following this purchase, Bristol-Myers will now control MyoKardia’s leading product Mavacamten.

    This experimental drug treats obstructive hypertrophic cardiomyopathy. This acquisition will have expanded Bristol-Myers’ scope of heart drugs from those focussing only on oncology, an area where the industry has focussed on for quite a while now. According to the statement issued regarding this deal, Bristol-Myers will issue an application for the approval of Mavacamten during the first quarter of 2021.

    The company plans to research more on the uses of this drug and manufacture other additional experimental compounds that they will get from MyoKardia. Hypertrophic cardiomyopathy is a heart condition in which heart muscles develop abnormal thickness preventing the heart from pumping blood effectively. The condition affects about one in 500 people.

    Kosmos Energy Ltd [NYSE: KOS]  

    Kosmos Energy, a deepwater independent gas and oil exploration and production company announced today that it has shut down its facility at the Gulf of Mexico with Trafigura Trading LLC and Beal Bank USA.  In a move set to strengthen the corporation’s liquidity position, it has restructured its facility at the Gulf of Mexico into a five-year $200 million loan term that will be backed by the company’s assets at the same Gulf.

    Another $50 million advanced from Trafigura signed in June has been rolled into the facility with backing from CSG Investments; Inc. Beal Bank will provide the remaining $150 million. With a 6% interest rate, the facility has increased its borrowing capacity by $50 million, extended its repayment term by five years, and secured a feature to expand the facility by up to $300 million.

    Neal Shah, the Chief Financial Officer said in a statement that the closing of this facility has enhanced the company’s liquidity position, given it access to low-cost and flexible financing as well as free cash generated low-cost production assets. He expects the company’s balance sheet to strengthen significantly as of 2021.

    Corvus Pharmaceuticals Inc [NASDAQ: CRVS]

    Corvus share price saw a sudden spike after the company announced that its small phase 1 early-stage clinical trial could produce antibodies and T-cells among some Covid-19 patients. The share price rose by 39.1% in premarket trading on Monday after this announcement.

    The clinical trial, open-label, Phase 1 study has already administered three doses in 15 test-patients and hopes to expand its scope to about 30 patients that exhibit mild to moderate symptoms of the disease.  In a preprint issued in September, the company had shown the results for the two of the doses administered in 10 patients. This publication has not been peer-reviewed.

    Corvus plans to release the full results from the first phase at the end of this year.  Its stock is still 25.2% down as of this year with the S&P 500 gaining about 3.6%.