Why Kosmos Energy Stock Dropped More Than 10.5% Today
Shares of energy company Kosmos Energy (NYSE: KOS) fell as much as 10.5% on Monday. By roughly 2:30 p.m. EST today, the stock was still holding on to most of that loss, down roughly 9.5%. With oil and natural gas prices roughly flat, the big news was really the exploration and production company's third-quarter earnings update.
As you might expect from the market reaction, Kosmos' third-quarter earnings weren't exactly what investors were hoping for. On the top line, revenue came in at $200.5 million, down from roughly $225 million in the same period of 2020. That's after a rather notable run-up in energy prices, with the company's average sales price per barrel of oil equivalent jumping from $41.05 last year to $66.10 this year. Only when you include hedging, the average sales price fell to $47.68. Sometimes hedging works against a company.
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Source Fool.com
