Daily Archives: June 13, 2018

Talos Energy And Its Major Merger With Stone Energy

Talos Energy is a Houston offshore gas and oil producer. It is currently a public company following the closure of its almost $2 billion Thursday merger with Louisiana’s Stone Energy. The Talos Energy Company is headed by Tim Duncan, who is the Talos’ Chief Executive. It was initially formed six years ago in order to focus on the Gulf of Mexico. This was to be facilitated with the financial assistance from significant equity firms like Riverstone Holdings and Apollo Global Management.

The idea behind Talos being financed by major private equity firms was to publicize it through an IPO in the year 2014 or 2015, but following a consequent oil kaput dashed those strategies until currently. This means that the privately backed Talos Energy went public as a result of attaining concern in Stone, which was previously publicly transacted, comparatively than filing for a preliminary public subscription.

The merger between Louisiana’s Stone Energy and Talos Energy was to create a more prominent offshore dynamism performer which would focus on the Mexican parts of Mexico’s Gulf and the United States. Consequently, the new publicized Houston-situated Talos energy instigated trading under the “TALO” ticker on the New York Stock Exchange Market. Tim Duncan thereby terms this merger as a transformational amalgamation. It is widely known that Talos’ financiers possess 63% of the merged company while the Stone shareholders got 37%.

Therefore, Talos Energy is in a good position to exploit its great value asset assortment as well as revenues motivated capital programs in offshore Mexico and the U.S Gulf of Mexico as stated by Talos Energy President and Chief Executive, Timothy Duncan. Talos Energy did well the previous summer after productively winning several offshore tenders with other associates in Mexico’s energy restructuring development of Mexico’s Zama innovation offshore.

Mexico’s energy restructuring progression opened up offshore inhibitors to extraneous investors with Zama as the paramount innovation in the state’s deregulation process. Further, Stone Energy had been operating out of Lafayette for more than 20 years. Nonetheless, Stone Energy filed for insolvency protection in the year 2016, amidst the downfall in oil charges earlier emerging the previous year.

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