OXY - A Thumbs Up For The Kosmos Energy - Occidental Petroleum Deal

• Kosmos Energy is acquiring an additional interest in the TEN and Jubilee oilfields offshore Ghana from Occidental Petroleum.
• The metrics of the deal look excellent, even using a base case scenario of $65 Brent (Brent is at $85 right now).
• Yes, the Kosmos balance sheet will be a bit stretched, but the debt ratio should drop below 2 again by the end of next year.
• Kosmos is in the final straight line to become a major LNG producer as it's just two years away from first production at Tortue.
• Although the balance sheet still contains a lot of debt, the risk/reward ratio is improving at Kosmos.

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