12 Best Oil and Gas Penny Stocks to Invest in Now

3. Kosmos Energy Ltd. (NYSE:KOS) 

Number of Hedge Fund Holders: 27

Share Price as of April 16: $1.67

Kosmos Energy Ltd. (NYSE:KOS) is a deep-water oil and gas exploration company, operating across Ghana, Equatorial Guinea, Mauritania, Senegal, and the Gulf of Mexico. The company focuses on major hydrocarbon basins with 2P reserves lasting over 20 years.

In Q4 ending December 31, 2024, Kosmos Energy Ltd. (NYSE:KOS) missed production targets due to issues at Jubilee and other delays, but long-term asset performance remained solid. The company achieved 137% 2P reserve replacement and improved finances by refinancing $900 million in bonds and expanding its lending facility. Additionally, Kosmos slashed 2025 spending to $400 million—over half of the previous year’s—and aims to cut $25 million in annual overhead costs by the end of the year.

Moreover, the company’s Greater Tortue Ahmeyim (GTA) LNG project started production in February 2025, targeting full operations by Q2. The contracted volume is 2.45 million tons yearly, with a potential to exceed 2.7 million tons. Kosmos Energy Ltd. (NYSE:KOS) is working on expanding the project and expects costs to drop as startup expenses end. While in Ghana, the company is fixing Jubilee’s issues and, to reinforce production, is planning six new wells through 2026.

Meanwhile, in the Gulf of America and Equatorial Guinea, Kosmos Energy Ltd. (NYSE:KOS) is advancing the Winterfell project and has completed two wells producing about 9,000 barrels daily. The company’s disciplined approach at Tiberias balances long-term value with near-term cash flow.

With growing LNG assets, diverse deep-water operations, debt reduction efforts, and a pivot to sustainable cash generation, Kosmos Energy Ltd. (NYSE:KOS) is among the best oil and gas penny stocks.