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Kosmos Has Outperformed Oil and Its Peers since Its 1Q17 Results

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Strong upward movement

Kosmos Energy (KOS) released its 1Q17 earnings before the market opened on May 8, 2017. Since its earnings release, KOS stock has been on a strong upward trend, rising from $5.95 to $6.65.

Crude oil’s (USO) price has also been on an upward trajectory, rising from $46.22 per barrel to $48.90 per barrel during the same timeframe.

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Year-to-date performance

So far in 2017, Kosmos Energy is turning out to be one of the best-performing stocks in the energy sector. Year-to-date (or YTD), KOS has fallen ~5%, whereas other oil and gas producers such as Denbury Resources (DNR), W&T Offshore (WTI), and Murphy Oil (MUR) have fallen ~53%, ~23%, and ~18%, respectively. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has fallen ~18% YTD.

Currently, KOS is trading above its 50-day and 200-day moving averages. On May 25, 2017, KOS’s stock price closed at $6.65. Its 50-day and 200-day moving averages stand at $6.37 and $6.08, respectively.

Peers

KOS’s peer W&T Offshore has risen ~12% since it released its 1Q17 earnings on May 3, 2017. WTI also operates in the offshore exploration and production spaces, with the majority of its operations occurring in the US Gulf of Mexico.

Overall, oil and gas exploration companies (XOP) have lagged crude oil (USO) prices and the SPDR S&P 500 ETF (SPY) since May 8. According to the SPDR S&P 500 ETF Trust prospectus, “The Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index.”

In this series

Having looked at the outperformance by KOS stock both YTD and since its 1Q17 earnings results, we can see that some positive developments are emerging for the stock. 

In this series, we’ll explore some of KOS’s fundamental strengths by studying its financial and operational performances. We’ll study KOS’s quarterly earnings, revenues, productions, cash flows, debt, and analyst ratings.

Let’s start with KOS’s 1Q17 earnings.

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