When it comes to the development and production of natural gas and oil-related properties on the Gulf Coast, Talos Energy is one of the biggest names in the game. The company is based in the city of Houston and they have quickly become one of the most trusted providers in the exploration and development realm.
The company has been in existence for the past six years and founder Timothy Duncan has pressed all of the right buttons (so to speak) when it comes to building the aforementioned trust. After a recent discovery over one billion barrels of crude oil, they are well positioned for future success.
This includes their pending acquisition of Stone Energy. The merger that is about to take place is a $1.9 billion dollar acquisition and once the two companies have combined, they will be known as Talos Energy Inc.
At this time, the company will also go public for the first time. Once the company is added to the NYSE, it will be traded under the ticker symbol TALO. The deal is going to be closed by the time the second quarter of the current fiscal year has been completed. Timothy Duncan says that this acquisition will allow the company to achieve some of its most important goals.
Talos Energy Inc. is looking to bolster their reputation even further by becoming the premier company for production and offshore exploration. Thanks to the talent that will be assembled, the timetable for the projects that are currently in the pipeline can now be accelerated.
In addition to accelerating the timeline for the company’s current project inventory, other transactional opportunities can now be pursued. Once the deal has been completed, 37 percent of the shares will be owned by shareholders from stone. The remaining 63 percent of the company is still going to be owned by Talos.
The financial flexibility that this transaction is going to be able to provide also bears noting. Talos’ borrowing capacity will swell to $600 million and Duncan will become the CEO. A ten person board is also going to be formed. Six members are going to hail from Talos and Stone is responsible for the remaining four.
This acquisition is also designed to help Talos fend off all of the competition for Mexican offshore opportunities that currently exists in the area. The merger also allows Stone to successfully restructure its finances in the wake of their recent bankruptcy filing.