Talos Energy Makes Historic Discovery And Merger

Talos Energy Makes Historic Discovery and Merger

It has been a great year for Talos Energy; the widely reputed Houston, Texas based offshore oil and gas producer. It $2 billion merger with Louisiana’s Stone Energy has been a great business move and it has now gone public.

The deal will be fruited as it makes Talos Energy a larger offshore energy producer on the U.S and Mexican parts of the Gulf of Mexico. Talos is a privately funded company and went public by getting a major interest in Stone Energy, which has been publicly traded for many years. This means that Talos energy did not have to file for a preliminary public offering.

After the merger, Talos started trading on the New York Stock Exchange under the “TALO” stock ticker. Tim Duncan who is the Chief Executive Officer at Talos termed the deal a transformational acquisition. Talos shareholders own 63% of the acquisition while Stone Energy backers got 37% from the deal.

Tim Duncan went on to clarify that Talos is in a good position to make use of its high-quality asset assortment and returns. It will also make the most of its capital programs in the U.S Gulf of Mexico as well as offshore Mexico. The company will also capitalize on any business development openings that will come its way.

Talos Energy was founded in 2012 to ply its trade along the Gulf with financial backing of both Apollo Global Management and Riverstone Holdings two major private equity companies. This initiative was undertaken to take Talos public via an IPO in 2014 or 2015. However, the plans were affected by the following oil production drop.

Talos did not stop there as it made great business stride by what is referred to as the Zama Discovery offshore of Mexico. Tim Duncan said that Zama discovery is a significant and historic innovation. This is after the company acquired the first offshore bids with many other partners in Mexico’s energy reform process. This also opened offshore opportunities for other foreign investors. Stone Energy has operated within Lafayette for more than 20 years. However, it filed for bankruptcy protection in 2016 in the middle of oil prices reduction.

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