Recently, Talos Energy LLC had a merger with Stone Energy Corp. the merger was worth $2 billion. The completion of the transaction happened on May 10, 2018. The new company has begun trading under a new ticker symbol (TALO) on the New York Stock Exchange. The base of the new company will be in Houston, Texas.
The CEO of Talos Energy LLC, Timothy Duncan, worked on this merger deal in between the Hurricane Harvey floodwater crisis. Before the merger, Stone had done poorly in the oil business where it was in debt and had become bankrupt. It recorded a loss of $189.5 million in 2014, $1.1 billion in 2015 and $590.6 in 2016.
The new company is estimated to bring in $900 million worth of revenue annually as it begins to trade. Per day, the new company can produce 48000 barrels of oil and even more. This merger also will benefit Talos since it has inherited a crucial asset known as the Pompano platform that had been acquired from BP at $200 million.
Talos’ CEO, Thomas Duncan, knows how to make most of any tough situation. He took over the Chevron’s field, formerly known as the Typhoon Field (the now Phoenix Field) after the Hurricane Rita (2005) destroyed Chevron’s activities on the field. It now produces a maximum of 16000 barrels of oil per day. Talos has a plan of making more discoveries in the Phoenix Field 3000 feet deeper than the current oil reservoirs.
Before becoming the CEO of Talos Energy, Duncan started off in Zilkha Energy as an engineer (1996). The founding of Gryphon Exploration happened with Duncan’s help in 2000. He then began the Phoenix Exploration as a co-founder (2006). In 2012, Duncan founded Talos Energy where Riverstone and Apollo raised $600 million for the company’s start.
Recently, Talos, in collaboration with the U.K.’s Premier Oil and Sierra Oil & Gas got acreage in the Mexican water. During drilling, they discovered a sandstone containing an approximated 2 billion barrels of oil. This discovery is an advantage for Talos since it will significantly boost the company’s oil business.
Talos Energy LLC, a Houston-based energy company will soon acquire Stone Energy Corp. from Lafayette, Lousiana. The merging was valued to be at $1.9 billion, based on a press release. The combination of the company will be named Talos, Energy, Inc. They will be trading on the New York Stock Exchange representing the symbol “TALO.”
The closure of the deal is expected in 2019, during the first quarter or the early part of the second quarter.
According to Timothy Duncan, Talos Energy CEO, the merging of the two companies is a crucial step in Talos’ goal to become a prime offshore production and exploration company. He added that the merging of talents, resources, and even the balance sheet of Stone Energy and Talos will move them towards progress in many projects and will allow them to become more efficient in exploration ventures.
Upon the closure of the deal, all Talos stakeholders will have 63% of the company equity, while Stone Energy stakeholders will be having the 37%, according to the press release. The initial market capitalization is valued at $1.9 billion amounting to an enterprise value of $2.5 billion. Stone’s stock price was valued at $35.49 per share during November of 2017.
Additionally, Talos Energy will be owning 1.2 million combined acres located in the Gulf of Mexico, which is able to produce 47,000 barrels of oil as well as 136 million proved reserves on June 30.
About Talos Energy
Talos Energy is a known Texas-based independent oil and gas company. Their organization mainly focuses on offshore explorations and energy production. Their expertise involves being able to acquire land and energy assets located in the Gulf of Mexico or Gulf Coast regions, with the goal to optimize assets and explore more energy-producing opportunities. Talos Energy aims for growth, and they are using modern seismic technology to acquire high-quality gas and oil. Their company is also geared towards becoming a powerhouse of smart energy that can supply more users over time.
Talos Energy is powered by innovative ideas. They also focus on implementing projects which are results-driven. They are open to dynamic, collaborative and entrepreneurial ideas for individuals who are willing to bring something new to the table. Their company encourages all individuals to share ideas and to help their system improve and promote value for all their stakeholders. According to employees, Talos Energy is a great company to work with. It is currently ranked as one of the best workplaces in the Houston Chronicle Top Workplace for five consecutive years.
In a joint endeavor between Talos Energy LLC., Sierra Oil & Gas, and Oil Plc, a new offshore oil well has been placed in the waters of Mexico. This hasn’t happened in close to 80 years in the area, because every other offshore well has been launched by Petroleos Mexicanos since the late 1930’s. The well can contain up to 500 million barrels of crude, and it will cost $16 million to finish the drilling by the three companies who won the rights through a bidding process.
It is expected that the oil well will be watched very closely by those in the oil industry, and that it should have a high chance of succeeding due to its excellent structure. It is located in the Sureste Basin and is hoped to begin to help balance out the slowly failing oil industry in Mexico. Talos Energy owns 35% of the oil well and is also the operator of it, and analysts believe that it is a very interesting happening for the Mexican market.
Talos Energy is a gas and oil company that is independent and ran by experts in its field. With a knack for picking up matured assets in the deep waters of the Gulf of Mexico, the company profits by using new technologies and seismic technologies that exploit them. Before the founding of Talos Energy in 2012, the experts who run the company had already put together and sold two gas and oil companies in the Gulf of Mexico region. Click here to know more.
Talos Energy is always looking for new ways to increase its efficiency and operations and is committed to keeping par with environmental regulations. Their specialized drilling and completion techniques have allowed them to improve hydrocarbon recovery and keep at the cutting-edge of their industry. As an employer, the company has earned a spread of awards for being one of the top workplaces for employees and has made top workplaces lists for 5 years in a row.
For the past 80 years, the Mexican government had put in strict measures to discourage foreign investors from venturing into the country’s energy markets. Foreign investors now have something to be proud of because the Mexican government has lifted off the ban. This initiative will allow foreigners to participate in their first offshore exploration since Mexico’s oil industry was nationalized in 1938.
Sierra Oil & Gas, Premier Oil PLC, and Houston’s Talos Energy PLC began the exploration of Mexican oil fields in May. Other privately-owned foreign companies are also expected to debut their operations in the fields soon. The three companies had successfully challenged the Mexican government to lift the ban back in 2015.
The Zama-1 Well is one of the largest oil and gas reserves in Mexico. It is situated on the Sureste Basin found in Tobasco State. The well has a capacity of holding 100 million to 500 million crude oil barrels. Premier Oil is certain that drilling will take place for about 90 days and this will cost over $16 million.
According to an analyst, working for Edison Investment Research, practitioners in the Mexican energy sector will keenly pay attention to the first oil and gas exploration conducted by foreigners. Elaine Reynolds expressed this insight in a note targeting Edison’s clients. Elaine also added that the project seems to have a “high geological success chance” judging from the structure of Zama-1 Well’s basin.
In reference to a statement released by Premier, Talos Energy, the operator, owns 35 percent share in the drilling venture. Consequently, Premier Oil controls 25 percent share while Sierra Oil & Gas controls 40 percent.
About Talos Energy
As an independently-owned company, Talos Energy’s operations are centered on offshore exploration and production. The company invests most of its resources on exploration, exploitation, and asset optimization. It also focuses on exploiting wells based in Gulf of Mexico and the Gulf Coast.
Talos Energy has been operating for the last 70 years. Based on the firm’s experience in the industry, it has managed to upgrade its geophysical technology, well control, and exploitation techniques. Talos Energy’s staff usually maintain an entrepreneurial style and independent spirit that focuses on achieving success.