Talos Energy LLC is a highly successful Houston-based oil and gas company that specializes in offshore exploration and production. One of their competencies is acquisition of assets in and around both Gulf of Mexico and Gulf Coast environs. They focus more on exploration, exploitation, and asset optimization.
The management and technical teams of Talos Energy LLC are filled with people who have spent a substantial number of years working in the Gulf of Mexico and some parts of gulf coast. One thing that sets Talos Energy apart from others is the experience of their employees and the use of highly sophisticated drilling and explorations equipment that only very few oil companies can afford. This is probably the secret of their rapid growth within the last 70 years.
Talos Energy is set to acquire another oil and gas company based in Lafayette in Louisiana – Stone Energy. The merger will become Talos Energy Inc. The acquisition comes at about $1.9 billion. It has also been revealed that the merger company will trade on the New York Stock Exchange under the ticker symbol “TALO”. The merger should be concluded at the early part of second quarter next year if not concluded in the first year.
The merger has been described as a step in the right direction because it further reinforces their collective brand. Since Stone Energy is also doing well, the acquisition is more of a synergy.
Both management and technical teams of both companies will work together to move Talos Energy Inc. forward. Pulling their resources together will give the merger increased horsepower to handle more projects. In a nutshell, the merger is for higher productivity.
If the deal sails through, Talos’ shareholders will own 63 percent of the merger with the owners of Stone Energy owning the rest. According to the press release, the new merger will be repositioned for more solid financial flexibility which will in turn, pave way for faster growth.
The release also stated that the merger will have a credit facility of up to $1 billion. As expected, Timothy Duncan, the current CEO of Talos Energy will remain at the helm of affairs of the merger and 60 percent of the 10-member board of the new company will be from Talos Energy while the remaining 4 members will be from Stone Energy.
While the Headquarter of the merger will remain in Houston, Stone Energy’s office in Lafayette will be one of its offices too. The oil and gas industry anxiously awaits the billion-dollar merger.