At a cursory glance, Kosmos Energy (KOS) is in a bit of a pickle. Pulling up its 52-week chart, investors can see that KOS stock incurred a loss of nearly 15%. In addition, the hydrocarbon sector has not exactly been enticing recently. Even though major oil-producing nations agreed to production cuts, crude has been basically flat in the past year.
On the surface, these and other factors don’t particularly bode well for KOS stock. After all, Kosmos is an upstream specialist in the energy value chain; that is, the business model centers around the exploration, development and production of hydrocarbons. If the price of crude is flat to declining, that presents a huge obstacle given that the upstream industry is capital intensive.
