Skip to content

Kosmos Energy Stock Surges After Strengthening Liquidity Position

Updated 5 Oct 2020
KOS

Independent oil and gas company Kosmos Energy (NYSE/LON: KOS) has announced the closure of its Gulf of Mexico facility with Beal Bank USA and Trafigura Trading.

new-recommended-broker-banner

The company announced that it has restructured its Gulf of Mexico prepayment facility into a five-year $200 million term-loan facility which is secured against Kosmos’ assets in the US Gulf of Mexico. 

Its previously announced $50 million prepayment agreement with Trafigura has now been rolled into a new facility which is structured by CSG Investments. 

The facility increases the company’s borrowing capacity by $50 million.

Kosmos’ Chief Financial Officer, Neal Shah, said that the closing of the Gulf of Mexico facility “enhances the company’s strong liquidity position with access to low-cost, flexible financing. 

“Along with free cash generated by our low-cost production assets and proceeds of the recent Shell transaction expected this quarter, the company’s balance sheet is expected to strengthen into 2021.” 

Kosmos said it now has approximately $650 million of available liquidity following the closing of the Gulf of Mexico facility. 

KOS
(NYSE: KOS)

The company’s London and US-listed shares surged higher after the news…

Its London-listed shares are currently trading at 128p per share, up 61%, while its shares in the US are up 45% premarket, trading at $1.50 after closing Friday’s trading session at $1.03. 

PEOPLE WHO READ THIS ALSO VIEWED: