Talos Energy Inc. is an offshore exploration and production company. They are managed by a team of experienced people who have decades of experience in offshore exploration and production in the oil field. Their field of expertise in deep-water exploration, drilling and optimizing their assets of innovative technologies.
Formed in 2012, Talos Energy Inc., which is based out of Houston, will be buying Stone Energy Corp. The merger has a price tag of $1.9 billion. Once the two companies are merged, they will be knowns as Talos Energy LLC., and will be trading under ticker symbol “TALO” on the New York Exchange. This will all be finalized during the first quarter of next year.
Timothy S. Duncan indicates that this is an essential step for Talos Energy. Their goal is to become a premier offshore exploration and production company. The two combining companies create synergy for Talos Energy. Stone Energy Corp brings with it technical resources and a balance sheet that will allow Talos to accelerate the development of its own hardy project inventory. It also gives Talos the ability to pursue transactional and explorational opportunities.
The equity market capitalization is impressive at an estimated $1.9 billion, including an enterprise value of approximately $2.5 billion. Next year, by the end of the first quarter, Talos stakeholders will have acquired 63 percent of the company, while Stone shareholders will acquire 37 percent.
Talos Energy will own 1.2 million acres in the Gulf of Mexico. Their daily production is an impressive 47 thousand barrels of oil daily. As of June 30, the proven reserves are at 136 million barrels.
The merger allows Talos Energy Inc. greater financial opportunity allowing it to grow. The expectation is that Talos will have a $1 billion credit facility, and an initial borrowing capacity of $600 million, along with no maturity of the material long-term notes until 2022.
Timothy S. Duncan will be filling the position of CEO of Talos Energy. They will be filling the ten board of director positions with four members from Stone, and six members from Talos. Their headquarters will be based out of Houston. They will have two additional offices located in New Orleans and Lafayette.
Talos Energy has previously created and sold two additional related private equity-backed companies. These two companies were Gryphon Exploration and Phoenix Exploration. Both ventures produced significant returns for their investors. The management team of Talos Energy has a record of accomplishment dating back decades of successfully developing a profitable portfolio of investments and opportunities.
Their Facebook Page: https://www.facebook.com/talos.energy/