Kosmos Energy Outperforms Q4 Expectations Amid Production Challenges
Portfolio Pulse from Akanksha Bakshi
Kosmos Energy Ltd (NYSE:KOS) reported a Q4 fiscal 2023 revenue of $507.81 million, a 10% decline YoY but above consensus of $477.73 million. Net production increased 12% YoY to 66,000 boepd. Adjusted EPS was $0.31, beating the $0.24 consensus. The company faced production challenges due to decreased water injection at Jubilee, now resolved. With new projects, production is expected to increase. Operating cash flow decreased to $765.17 million from $1.13 billion YoY. KOS expects 2024 production of 71,000 – 77,000 boe per day and capital expenditure of $700 million – $750 million. KOS shares fell 3.1% to $5.78.
February 26, 2024 | 2:58 pm
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POSITIVE IMPACT
Kosmos Energy reported higher than expected Q4 revenue and adjusted EPS, despite a YoY revenue decline and production challenges. The company has a positive outlook for 2024 with increased production expected.
Despite a year-over-year decline in revenue and production challenges, Kosmos Energy's Q4 performance exceeded expectations, with a significant beat on both revenue and adjusted EPS. The resolution of production issues and the launch of new projects suggest a positive outlook for 2024, which could drive investor optimism and potentially lead to a short-term increase in stock price, despite the recent 3.1% drop.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100