Kosmos Energy Ltd. (NYSE:KOS) shares were trading around 6% higher on Monday following the company’s announcement last week, according to which it will acquire $550 million of additional stakes in its Jubilee and TEN fields in Ghana from Occidental.

Following this announcement, analysts at Berenberg Bank raised their price target on the company’s shares to $5.20 from $3.80, mentioning that the deal is accretive to NAV at oil prices above $51/bbl.

According to the analysts, the deal adds c17kboe/d of production, increasing the company’s exposure to a key cash-generating asset, and significantly improves the company’s ability to reduce its net debt.