Kosmos Energy Ltd. (NYSE:KOS) is an oil and gas exploration and production company focused on deepwater drilling around the the western coast of Africa. Kosmos focuses on discovering oil and gas reserves in regions that it thinks are under-explored. Upon discovery, the company installs the necessary offshore drilling platforms and sells the fuel to large oil companies like Exxon Mobil (XOM).
The decrease in easily accessible, large oil reserves has increased the price of oil and pushed oil and gas exploration to develop riskier, smaller, and less certain reserves. As a result, the exploration and production done by Kosmos relies on the expectation that gas prices will remain high. If prices being to fall, it may no longer be economically feasible for the company to purse some of its reserves. Furthermore, the company relies on receiving drilling permits from the coastal African nations on whose land Kosmos drills.
The company's initial public offering of stock on the NYSE occurred on May 10, 2011. The company offered 33M shares each for $18. This was at the high end of the $16-$18 initial price range. This offering raised a total of $594M. The company had originally announced that it would sell 30M shares. The high pricing and increase in shares raised the offering by 16%. The lead managers of the IPO were Citigroup (C), Barclays (BCS) and Credit Suisse Group (CS).
For the full year 2010, Kosmos reported a total revenue of $9.3M. The company reported a net loss for the same period of $323M. While revenue dropped slightly from 2010, the net loss was a substantial increase from the $80M loss reported in 2009.