Kosmos Energy (Kosmos Energy) Interest Coverage : 10.31 (As of Dec. 2023)

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What is Kosmos Energy Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Kosmos Energy's Operating Income for the three months ended in Dec. 2023 was $259 Mil. Kosmos Energy's Interest Expense for the three months ended in Dec. 2023 was $-25 Mil. Kosmos Energy's interest coverage for the quarter that ended in Dec. 2023 was 10.31. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Kosmos Energy's Interest Coverage or its related term are showing as below:

KOS' s Interest Coverage Range Over the Past 10 Years
Min: 1.94 Med: 6.92 Max: 10.08
Current: 6.87

KOS's Interest Coverage is ranked better than
50.46% of 759 companies
in the Oil & Gas industry
Industry Median: 6.75 vs KOS: 6.87

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Kosmos Energy Interest Coverage Historical Data

The historical data trend for Kosmos Energy's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Kosmos Energy Interest Coverage Chart

Kosmos Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.94

3.18

8.98

6.92

Kosmos Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															7.97	6.03	3.25	8.04	10.31

Competitive Comparison of Kosmos Energy's Interest Coverage

For the Oil & Gas E&P subindustry, Kosmos Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Kosmos Energy's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kosmos Energy's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kosmos Energy's Interest Coverage falls into.

Kosmos Energy Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Kosmos Energy's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Kosmos Energy's Interest Expense was $-104 Mil. Its Operating Income was $719 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,391 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	718.74	/	-103.936
	=	6.92

Kosmos Energy's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Kosmos Energy's Interest Expense was $-25 Mil. Its Operating Income was $259 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,391 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	258.712	/	-25.089
	=	10.31

The higher the ratio, the stronger the company's Financial Strength is.

Kosmos Energy (NYSE:KOS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Kosmos Energy Interest Coverage Related Terms

Thank you for viewing the detailed overview of Kosmos Energy's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Kosmos Energy (Kosmos Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Kosmos Energy Ltd (NYSE:KOS) » Definitions » Interest Coverage

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Traded in Other Exchanges

KOSl:UK KOS:UK KOS1:Germany

Address

C/O Kosmos Energy LLC, 8176 Park Lane, Suite 500, Dallas, TX, USA, 75231

Website

https://www.kosmosenergy.com

Kosmos Energy Ltd is an independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. The company focuses on field developments designed to accelerate production. Kosmos' exploration is tied to a geologically based approach geared toward the identification of petroleum systems. Its process starts with geologic studies that assess a region's subsurface but also incorporates basin modeling as well as techniques to identify reservoir/seal pair development and trap definition. In addition, a 3D seismic analysis is done to identify prospective traps of interest. In tandem with the subsurface analysis, a country-specific analysis is done to get an understanding of above-ground dynamics before targeting specific licenses.

Executives

Roy A. Franklin	director	8176 PARK LANE, SUITE 500, DALLAS TX 75231
Deanna L Goodwin	director	11911 FM 529, HOUSTON TX 77041
Grant John Douglas Kelso	director	8176 PARK LANE, SUITE 500, DALLAS TX 75231
Hanssen Maria Moraeus	director	5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056
J Michael Stice	director	525 CENTRAL PARK DRIVE, OKLAHOMA CITY OK 73105
Dearlove Sir Richard Billing	director	C/O KOSMOS ENERGY LTD., CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM 11
Nealesh D. Shah	officer: SVP and CFO	C/O KOSMOS ENERGY, LLC, 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Ronald W. Glass	officer: VP & Chief Accounting Officer	C/O DAVIS POLK & WARDWELL LLP, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Richard Ryan Clark	officer: SVP, President Gulf of Mexico	501 WHITE WING LANE, HOUSTON TX 77079
Andrew G Inglis	director, officer: Director and CEO	C/O KOSMOS ENERGY, LLC, 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Steven Sterin	director	19100 RIDGEWOOD PARKWAY, SAN ANTONIO TX 78259
Lisa Ann Davis	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Warburg Pincus & Co.	director, 10 percent owner	450 LEXINGTON AVENUE, NEW YORK, NY NY 100173147
Blackstone Holdings Iii L.p.	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Bcp Iv Gp L.l.c.	10 percent owner	C/O THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154