Custom Search



Kosmos Energy IPO could transform company into producer

Posted by

Texas-based oil and gas explorer Kosmos Energy’s recent IPO filing could signal the explorer’s looking to transform itself into a producer on the strength of the the massive Jubilee oilfield off the coast Ghana. Kosmos, which plans to trade under the ticker KOS, recently shot down a $5 billion offer from Chinese and Ghanaian oil companies to buy the company’s 23 percent stake in the Jubilee field, according to the Wall Street Journal.

Kosmos plans to use the bulk of cash from the IPO for new exploration in deep waters off the African coast through 2013. With five deep-water discoveries under its belt, the company’s been at the forefront of exploration at depths up to 35,000 feet – far deeper than explorers were attempting just a few years ago.

Still, the relatively small size of the company’s IPO at $500 million could indicate Kosmos is testing the market’s appetite for an even larger IPO down the road. A bigger IPO would help fund the company’s transformation from explorer to producer.

Kosmos’ management has a long history of drilling success. The company was founded in 2003 by managers from Triton Energy – a company that was eventually acquired by Hess Corporation (NYSE:HES). Brian F. Maxted took the reins as CEO after James C. Musselman retired last month. Maxted formerly served as COO for Kosmos.

The company reported a net loss of $180.2 million for the nine months ended Sept. 30, 2010. Now that oil’s flowing at Jubilee, though, Kosmos has a steady revenue source on its relatively small investment of $1 billion developing the field. Low costs and lots of oil could translate into big returns when the company goes public.

“It would be like they won the lottery,” Oppenheimer & Co. analyst Fadel Gheit told the Journal.

Related

SILVER SHEEN


Three triggers that could push silver over $50 ounce


BE YOUR OWN BOSS


Five cheap franchises to start with less than $10,000


HAPPY DAYS


3 reasons U.S. stock market forecast for 2011 is bullish


BYE BYE OIL


Death to Exxon? A sythentic fuel maker hopes so


DROPPING DOLLARS


Signs double digit inflation is coming to U.S.

SWIPING IS PASSE


NFC: The next trillion dollar industry (AAPL)

Comments

comments

Powered by Facebook Comments

Tags: , ,

Leave a Reply

Name and Email Address are required fields. Your email will not be published or shared with third parties.









Killer Articles

Top 10 best gold and silver ETF funds

Here’s a look at the Top 10 best gold and silver ETFs that trade on major U.S. exchanges. We’ve ranked them by volume, as some of the niche ETFs in the precious metals market are so... Read on.

3 reasons NOT to invest in Groupon’s IPO

An IPO date hasn’t been set, but here are three big warning signs you might want to consider before investing in Groupon’s stock... Read on.

From start-up to titan: The unofficial tech IPO calendar for 2012

From Facebook to Twitter to Groupon, the planned tech IPOs in 2012 could be among the most exciting string of new public companies... Read on.

How to invest in water stocks

Often overlooked as a commodity, water supplies could become increasingly critical as emerging economies around the world improve their diets and demand more agricultural resources for the production of meat... Read on.

World’s largest economies in 2050 will look very different

India’s rapid ascent to economic supremacy will be driven by a surging working age population, which will grow more than 40 percent between now and 2050... Read on.

How to invest in cotton stocks

If you’d like exposure to cotton markets without delving into futures and options contracts, a handful of cotton ETNs and cotton-related stocks are available... Read on.

How to buy Chinese Yuan

The Chinese yuan or renminbi has risen about 5 percent a year over the past five years, and some investors argue that China’s currency is still undervalued by 40 percent. If the dollar suffers ... Read on.

Five cheap franchises to start with less than $10,000

Franchises are so ubiquitous we often don’t realize we’re shopping at one. From McDonald’s to Hampton Inns and doggie day cares to campgrounds, they’re literally everywhere. All told, franchises account for 10.5 percent of all businesses in the U.S, and they... Read on.

Why invest in silver?

Ask 10 people why you should invest in gold and silver, and you’ll probably get 10 different answers – many of which will be accompanied by a shrug. Most investors don’t understand the motivation for holding gold or silver bullion. Nonetheless, it’s been difficult to ignore... Read on.

How to Invest in Copper

Copper isn’t as glitzy or glamorous as gold or silver, but in many ways it feels safer. Since copper is regularly used in electronics, it’s consumption per person (particularly in the developed world) has been on the rise for decades. So how does one invest in copper? Read on.