Talos Energy LLC of Houston, Texas will soon be Talos Energy Inc. once a deal to finalize the acquisition of Stone Energy Corp. a Louisiana based company. The merger is estimated at $1.9 billion. The deal is expected to finalize in the early part of the upcoming 2nd quarter of 2018. The new Talos Energy Inc, will go public and will have be the ticker symbol “TALO” on the New York Stock Exchange.The independent energy company specializes in the exploration and production of oil and gas offshore, primarily in the Gulf of Mexico region and was founded in 2012. The company is also diversified in business developments like farm ins and joint ventures that enables them to utilize over 10.2 million acres that contains seismic inventory for the optimization of transactions.
Stone Energy Corp. is also in the natural gas and oil industry. The energy producer and explorer has office locations and offices in Houston, New Orleans and their HQ is currently in Lafayette, Louisiana. They practice a strategy of leveraging high cash flow that was generated from existing assets for increasing oil and gas reserves in addition to maintaining stable oil production.Both companies are excited about the merger and the future it offers them to expand the offshore production and exploration abilities to new levels. Combining these two talents, finances and resources should result in a very large rapid increase in opportunities, production and future development. Once the merger becomes final shareholders from Talos will possess 63% and Stone Energy shareholders will claim 37%. There will be great opportunity for Talos Energy Inc. to expansion and growth.
They produced 47K barrels of oil equivalents on an average daily basis in 2017. The newly formed energy company will hold its hq in Houston plus operate offices out of Lafayette and New Orleans. Timothy S Duncan is the current CEO of Talos Energy LLC and will be named the CEO of the Talos Energy Inc. The board of directors will consist of 4 members from Stone Energy and 6 members from the former Talos Energy LLC.Throughout the merger process Stone Energy was consulted by Petrie Partners Securities while Talos Energy was advised by UBS Investment banks and Citigroup. Stone went through a bankruptcy and reorganization recently and this merger is a good sign that the company has been successful re-organizing and structuring their finances.The merger and growth are timely for Talos due to the fact that the competition for offshore opportunities in the Gulf of Mexico is getting tougher every day. Stock investors will keep a close eye on this company as the merger closing becomes closer and an opportunity to get in early as the larger more diversified Talos moves forward.