The volatility in crude oil prices might be bad news for motorists, but it’s been very good for small-cap stock Kosmos Energy (NYSE: $KOS).
The Texas-based upstream oil company has seen its share price more than triple (up 208%) this year as the Iran war upends crude oil prices.
The stock of Kosmos Energy is up another 3% on July 23 as the price of Brent crude, the international standard, tops $100 U.S. a barrel with fighting between the U.S. and Iran escalating.
Founded in 2023, Kosmos Energy has production and development operations in the Gulf of Mexico, as well as offshore Ghana, Equatorial Guinea, and Senegal.
In 2007, Kosmos made one of the world’s largest oil discoveries off the coast of Ghana. Production of that filed began in 2010.
The company went public in 2011 and today its shares are dual listed in New York and London. Like other oil companies, KOS stock has soared alongside crude prices this year.
Despite its success, Kosmos Energy remains a small-cap stock with a market value of only $1.60 billion U.S.
With its shares trading at $2.74 U.S., Kosmos Energy is also a penny stock, defined as any security that trades for less than $5 U.S.
There’s also no dividend provided by Kosmos Energy, which is unusual for an oil company.
However, the stock’s big move higher this year is exciting and the bull run could continue if crude oil prices march higher as many analysts forecast.
KOS stock could be a good way to play the continued volatility in global energy markets.
