Kosmos Energy Ltd. (KOS) vs Mach Natural Resources LP (MNR)

Kosmos Energy Ltd. and Mach Natural Resources LP are both Oil & Gas E&P companies. Kosmos Energy Ltd. and Mach Natural Resources LP are of similar size ($1.8B and $1.7B). Kosmos Energy Ltd. has negative trailing earnings, so its P/E is not meaningful; Mach Natural Resources LP trades at 17.3×. Mach Natural Resources LP grew revenue faster over the last twelve months: 34.4% against 7.13%. Mach Natural Resources LP has the higher net margin (7.44% vs −34.0%) and the higher return on invested capital (4.09% vs 2.91%). Across the 19 metrics below, Mach Natural Resources LP leads on 18 and Kosmos Energy Ltd. on 1.

Valuation

Metric KOS MNR Oil & Gas E&P median
P/E n/m 17.33 10.57
P/S 0.99 1.29 1.80
P/B 2.23 0.94 1.27
Price to free cash flow 14.14 6.96 9.99
EV/EBITDA 6.00 5.28 5.08
EV/Sales 2.58 2.18 2.39
Earnings yield (44.91%) 5.77% 6.06%
Free cash flow yield 7.07% 14.36% 6.17%

Profitability

Metric KOS MNR Oil & Gas E&P median
Gross margin 47.27% 56.26% 80.41%
Operating margin 9.48% 14.40% 21.39%
Net margin (33.98%) 7.44% 14.17%
Free cash flow margin 6.97% 18.51% 9.71%
Return on equity (62.95%) 0.00% 10.05%
Return on assets (11.39%) 3.35% 5.81%
Return on invested capital 2.91% 4.09% 6.32%

Growth

Metric KOS MNR Oil & Gas E&P median
Revenue growth (TTM) 7.13% 34.42% 9.94%
EPS growth (last fiscal year) (467.50%) (42.63%) —
Revenue growth, 5-year CAGR 7.58% — 18.67%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric KOS MNR Oil & Gas E&P median
Debt to equity 3.79 0.63 0.28
Current ratio 0.59 0.88 0.96
Net debt to EBITDA 10.18 2.03 0.91

Dividend

Metric KOS MNR Oil & Gas E&P median
Dividend yield — — 4.93%
Payout ratio 0.00 — 0.07

Size

Metric KOS MNR Oil & Gas E&P median
Market cap 1.66b 1.76b 923.59m

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