The previously announced contract in which Talos Energy acquired Stone Energy, a Louisiana-based public firm closed on 10th May 2018. The merged firm is now known as Talos Energy Inc., and it’s currently trading on NYSE under a new ticker icon “TALO.” According to the United States’ Exchange and Securities Commission, every common stock share of Stone Energy Corporation was translated into one Talos Energy Inc. share before the markets opened on 10th May 2018.
This is a placeholder account for Talos Energy LLC in Houston, Texas. Questions about the company should be directed to 713-328-3000.
— talosenergy (@talosenergyllc) February 12, 2013
When the transaction was announced in early November 2018, the corporations said that Talos was anticipated to have an enterprise value of around $2.5 billion and an equity market capitalization amounting to $1.9 billion, based on the price of Stone Energy stock on 20th November. Former Talos shareholders own 63% of the merged firm with previous Stone Energy stakeholders holding the remaining 37%. When closing the deal, the amalgamated corporation also entered a new credit contract with an initial borrowing capacity of $600 million. The firm has liquidity of approximately $450 million, and this includes around 150 million dollars in cash.
When the contract was announced, the merged firm was anticipated to have 136 million oil reserves and 1.2 million acres combined in the Gulf of Mexico. According to Timothy Duncan, the Chief Executive Officer of Talos, the transformational merger will significantly benefit all the shareholders from the increased liquidity and scale. Duncan also stated that Talos is in a better position to capitalize on the returns-focused capital initiatives and top quality asset portfolio in the United States Offshore Mexico and the Gulf of Mexico and also take advantage of prospective business development opportunities as well.
Talos Energy is an independent gas and oil exploration company which is technology driven, and its operation is in the Gulf of Mexico in the United States as well as the offshore Mexico Coast. Talo’s expertise in the Gulf of Mexico in the US is mainly based on acquiring, exploring, developing, and exploiting the deepwater assets located close to the existing infrastructure. The offshore Mexico Coast offers this oil and gas giant a high-level exploration opportunities in the emerging basin.
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