Talos Energy Sets to Acquire Stone Energy

According to a Press release, Talos Energy LLC based in Houston will acquire Stone Energy Corp. through a $1.9 billion merger. In addition, the combined company is set to trade on the New York Stock exchange under the symbol “TALO.”As per the release, the deal is expected to be closed next year in the month of March or April. Timothy Duncan, the CEO of Talos, stated that the combination was just a representation of Talos’ goal to be a premiere offshore production and exploration company.“Our combined talent and resources will allow us to grow at an accelerated rate. That will allow us to focus on our robust project while giving horsepower to pursue transactional and explorational opportunities within and outside our country,” Timothy stated.At the end of the deal, Talos stakeholders will own nearly 63% of the company and Stone shareholders the rest. An estimated equity market capitalization puts the merger to a nearly whooping $1.9 billion. That’s because Stone’s enterprise value is approximately $2.5 billion.

The Success of Talos Energy LLC

Talos Energy, started in 2012, began at the height of financial crisis. During that time, Timothy and his partners decided to send some money back to the bank. His mission was to gather some funds and deploy them to the most lucrative spots.With around $600 million, they decided to start Talos Energy. At that time, they had already secured assest in the Gulf of Mexico. These assets produced more than 16,000 barrels of oil per day in the previous year. They decided to hire around 60 professionals from Houston to help the work.Even though it has only been six years, Talos has already received a lot of awards.

One of them was being names as the best workplace among small businesses. Duncan acknowledges that it was as a result of Talos Energy having the same purpose from those who did labor work to the experts.Currently, Talos is in the middle, like most companies, when it comes to compensating their employees. However, the team decided to invest heavily into the work done by their experts back in Houston. Apparently, this has helped Talos grow in terms of discovery of newer and cheaper exploration methods.Duncan has stated several times that he’s planning to ensure that the working environment in Talos Energy is convenient for everyone.“Keep in mind, this is our environment and we are all rowing the boat together,” Duncan said. Compared to many private companies, Talos Energy continues to prove that it can grow rapidly while treating their employees with respect.

Source of the article : https://www.ogj.com/articles/2017/11/gulf-of-mexico-producers-to-become-talos-energy-inc.html