In a move to create a leading off-shore exploration and production company in the Gulf of Mexico, Talos Energy LLC has announced plans to merge with Stone Energy Corporation. The $1.9 million merger will be an all-stock merger and the company will have an enterprise value of approximately $2.5 billion. The merged company will be known as Talos Energy, Inc. and the New York Stock Exchange ticker will be “TALO”. The current Talos Energy headquarters in Houston, Texas will be the headquarters of the merged company and the company will maintain offices in New Orleans and Lafayette.
Executive Board Members and Shareholders
The current CEO of Talos Energy LLC, Timothy S. Duncan, will be the CEO for Talos Energy Inc and the interim CEO of Stone Energy will be the non-executive CEO for the new company. The board will consist of ten members–six from Talos and four from Stone. According to Talos CEO Timothy S. Duncan, the merger will allow for more resources for new and more efficient exploration in the Gulf of Mexico. With the combined resources and efforts of two premier exploration companies, acceleration of developments will be possible and future earnings will be progressively profitable for shareholders.
Resources and Production for Talos Energy Inc.
With the merger of the two companies, resources and production output will exponentially increase. Talos Energy Inc. will control 1.2 million acres of area in the Gulf of Mexico. The company will be able to produce 47 thousand barrels of oil daily. Talos Energy Inc. will also have an initial $600 million borrowing capacity, $1 billion credit facility, and long-term note maturities won’t begin for four years.Talos Energy LLC. was founded in 2012 by Timothy Duncan. He secured $600 million in equity from Apollo Global Management and Riverstone Holdings to launch the company. In 2017, the company made a historical discovery of a formation that is expected to yield 425 million barrels of oil. Acquiring Stone gives Talos additional resources to maximize on the foundation’s potential. The combined financial and production power of these two companies is phenomenal. With the new formation discovery, and the two more recent discoveries, Rampart and Tornado II, this newly birthed company is going to be a force to be reckoned with.