Why Kosmos Energy (KOS) is Tumbling

NEW YORK (TheStreet) -- Kosmos Energy (KOS) tumbled during morning trading Wednesday after announcing oil production at one of its sites was lower than forecast. By mid-morning, shares had taken off 5.9% to $10.45.

The Bermuda-based business said Tullow Oil, the manager of Kosmos' Jubilee field site off the Ghanaian coast, had revised its production forecast of 100,000 barrels of oil per day (bopd) for full-year 2014. The revised rate allows for a two-week shutdown for maintenance of the production, storage and offloading vessel. The revision is related to a third gas injection well set up in the fourth quarter of 2013 which provided minimal relief.

Similar to 2013 production levels, Kosmos' net interest in the site will total 24,100 bopd over 2014, less than investors had hoped for. The company said this equates to the sale of eight crude oil cargoes over the year.

TheStreet Ratings team rates KOSMOS ENERGY LTD as a Sell with a ratings score of D. The team has this to say about their recommendation:

"We rate KOSMOS ENERGY LTD (KOS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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