The recent relentless rally in crude oil and natural gas prices has attracted investors' attention to the sector. And because the rally shows no sign of abating in the near term, we think it’s worth exploring if Kosmos (KOS) could be a good addition to one’s portfolio now, given its mixed valuation? Keep reading to find out. Kosmos Energy Ltd . (NYSE:KOS) in Hamilton, Bermuda, operates as an independent oil and gas exploration and production company, focused along the Atlantic Margins. The company's primary assets include production offshore Ghana, Equatorial Guinea, the U.S. Gulf of Mexico, and gas development offshore Mauritania and Senegal.
Due to rising crude oil and natural gas prices amid a prolonged supply squeeze, the oil & gas industry has gained impressively over the past year. Shares of KOS have gained 217.5% in price over the past year and 19.4% over the past five days. Also, KOS’ shares returned 7.3% in their last trading session to close at $3.81. Moreover, the stock is trading above its 50-day and 200-day moving averages of $2.74 and $2.80, respectively.
The company has been benefiting primarily from rising energy prices. Since analysts expect oil prices to hit $200 per barrel, KOS should keep thriving. According to Goldman Sachs (NYSE:GS), “the possibility of $150-$200 per barrel seems increasingly likely over the next 6-24 months.”