Category Archives: Management

Talos Energy Merges With Stone Energy

Talos Energy, an independent oil, and gas company headquartered in Houston concentrate on offshore production and exploration. It emphasizes exploitation, research, and asset optimization and it is skilled in asset acquisition in and around the Gulf of Mexico and the Gulf coast. The company’s experience is in geophysical, geological and operating aspects and its corporate strategy is acquiring, exploring and exploiting the basin using their reprocessing methods and seismic database. Talos Energy aims to maintain control of all operational areas hoping to safeguard the environment, increase hydrocarbon recovery and enhance performance.

The company recently went public after merging with Stone Energy, a deal costing almost $2 billion. Instead of filing for an initial public offering (IPO), Talos opted to join with Stone Energy Company which was already publicly traded, by acquiring controlling interest of 63% while Stone remained with 37%. With the closing of the deal, a more massive offshore energy player was created to focus on the Mexican and United States sides of the Gulf of Mexico. Talos Energy has already begun trading on NYE under “TALO” sticker. Tim Duncan, Talos’ Chief Executive Officer described the move as a transformational combination. He added that Talos can now capitalize on its high-quality asset portfolio due to its strategic positioning, which also enables it to take advantage of potential opportunities to further develop its business.

Talos Energy was established six years ago by Timothy Duncan, with the $600 million financial support of top private equity firms Riverstone Holdings and Apollo Global Management, it was able to focus its operations on the Gulf. The firm had planned to go public through an IPO in either 2014 or 205, but following the oil burst, they postponed the plan. Talos was successful last summer when it won some of the offshore bids with other partners of the energy reform process in Mexico, which opened up offshore blocks to foreign investors. The Zama-1 filed discovery is the first major one in Mexico’s deregulation process, and the exploratory drilling uncovered 1.4 billion to 2 billion barrel of crude oil, which could yield around 425 million barrels.

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