Kosmos Energy Considers All-Share Acquisition of Tullow Oil
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Kosmos Energy Ltd. KOS, a U.S.-based upstream energy firm, has announced that it is in the early stages of discussion for the acquisition of Tullow Oil plc TUWOY. Kosmos mentioned that the proposed transaction is expected to be an all-share acquisition. However, Tullow Oil recently specified that the deal is not guaranteed yet, implying that the company is not certain if a formal offer will be made or what the terms and conditions might be for any potential offers.Kosmos Energy has been provided with a deadline of Jan. 9, 2025, until 5 p.m. (London time) to decide whether it wants to pursue the acquisition or not. The company must firmly announce its decision within the stipulated time to go ahead with the deal.Kosmos Energy’s potential acquisition of Tullow Oil would result in the creation of a leading exploration and production (E&P) firm with its operations focused on the Atlantic Margin. Kosmos Energy’s E&P operations are focused in deepwater regions, including, offshore Ghana and Equatorial Guinea. The company also operates in the deepwater blocks of the U.S. Gulf of Mexico. Its third-quarter production amounted to approximately 65,400 barrels of oil equivalent per day (boe/d).Tullow Oil’s production for the first half of the year came in at 63,700 boe/d. The company currently has a market capitalization of approximately $480.5 million.The oil and gas sector in North America has seen significant consolidation in recent years, with companies increasingly engaging in mergers and acquisitions to expand their resource base and reduce costs. The potential deal between Kosmos Energy and Tullow Oil could signal the start of a similar consolidation trend in other regions.Zacks Rank and Key PicksKOS and TUWOY carry a Zacks Rank #3 (Hold) each at present.Some better-ranked stocks from the energy sector are TechnipFMC plc FTI and Nine Energy Service NINE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a high of $14.7 million in the third quarter of 2024, indicating an 11.1% increase from the previous year’s level. This growing backlog ensures strong revenue growth for FTI.Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TechnipFMC plc (FTI): Free Stock Analysis Report Kosmos Energy Ltd. (KOS): Free Stock Analysis Report Tullow Oil PLC (TUWOY): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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