Kosmos Energy ( KOS Quick Quote KOS - Free Report) announced the conclusion of re-determining its reserve-based lending credit facility (“RBL”). In the course of the re-determination in September, a borrowing base capacity of $1.32 billion got sanctioned by the company’s lending syndicate, suggesting a reduction from the earlier base of $1.45 billion. The borrowing base curtailment is predominantly due to assuming lower oil price as compared with the upstream energy firm’s oil price prediction during March re-determination, thanks to the coronavirus pandemic. The repayment of the reduced borrowing base will be made in the last quarter from the available resources. Notably, the RBL is secured by the Ghana and Equatorial Guinea assets of the deepwater independent oil and gas producer. The company added that the scheduled time for the first amortization payment is Mar 2022. Kosmos added that its Mauritania and Senegal gas properties now remain unencumbered. Investors should also note that as of Oct 1, the oil and gas explorer had $0.5 billion of available liquidity. Kosmos added that its liquidity position is quite good since it has access to several low cost and flexible financing sources, thanks to the successful RBL re-determination and the recent restructuring of the Gulf of Mexico prepayment facility into a $200-million five-year term loan. The company expects to further strengthen the balance sheet with the proceeds from divesting some exploration assets to Royal Dutch Shell plc ( RDS.A Quick Quote RDS.A - Free Report) and free cash flow generations from low-cost upstream assets. Company Profile & Price Performance Headquartered in Dallas, TX, Kosmos is a leading independent deepwater oil and gas exploration and production company, with a strong footprint in prolific offshore resources in Ghana, Equatorial Guinea and the U.S. Gulf of Mexico. Notably, its shares have outperformed the industry in the past six months. The company’s stock has lost 5.8% compared industry’s 18.2% decline in the said timeframe. Zacks Rank & Stocks to Consider Kosmos currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space are Sunoco LP ( SUN Quick Quote SUN - Free Report) and Equinor ASA ( EQNR Quick Quote EQNR - Free Report) , both currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Over the past 60 days, the Zacks Consensus Estimate for 2020 earnings for Equinor has been raised 38.6%. Sunoco is expected to see earnings growth of 52.3% in 2021. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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