Talos Energy Grows Their Business With Mergers And Acquisitions

November 8th, 2018 by admin
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The much anticipated merger between Houston, Texas based company Talos Energy and Louisiana based company Stone Energy Corporation is finally complete and Talos Energy is now publicly traded. According to information provided by “Houston Business Journal“, the deal was originally announced in November and the final stages were completed before the Stock Market opened on May 10, when all shares of Stone Energy’s common stock were converted to shares of Talos Energy Inc (TALO).

The new company, Talos Energy Inc., is headquartered in Houston and offers great business benefits as well as benefits to shareholders who will see an increased scale and liquidity. With the merger complete, Talos Energy stands in an ideal position to capitalize on many assets in the U.S. Gulf of Mexico, where they will have roughly 1.2 million combined gross acres, as well as some located in the off shore area of Mexico.

According to “Oil and Gas Investor”,Talos Energy has now gained a new credit agreement and has half of its borrowing base of $600 million available for use. The company also has roughly $150 million cash on hand, all part of a liquidity worth about $450 million.

Talos Energy didn’t stop at acquiring Stone Energy Corporation though. More recently, September 2018, Talos announced another acquisition when the company announced the completion of the acquisition of Whistler Energy II, LLC. This transaction is considered a win for both parties, Whistler Energy was paid a high price in order for Talos Energy to obtain all the companies assets including area in the Central Gulf of Mexico which is home to leases that are held-by-production which have produced over 117 million barrels of oil to date.

Finally, Talos Energy has also announced they have a transaction underway with Pan American Energy that will serve to cross-assign interests in some of their blocks offshore in Mexico. The conditions would allow Talos Energy to swap some of their blocks with Hokchi, who currently operates blocks in the area. The swap is expected to be a win for Talos Energy, but is still currently waiting for approval from the Mexican Oil & Gas Regulator and the National Commission of Hydrocarbons.

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