Tag Archives: privately held oil and gas company

Talos Energy Goes Public with $2 billion Stone Energy Merger Deal

The month of may has seen significant activities in the energy sector in Texas. McDermott International Inc. based in Houston completed the $6 billion transactions which saw it merge with Chicago Bridge and Iron Company NV. The Woodlands-based firm has now been written off the public market following prolonged losses in market capitalization over the years.

In November 2017, Houston-based Talos Energy Inc. had announced its merger Stone Energy Corp and the $2 billion deal was closed this month. The combined company even traded on the New York Stock Exchange using “TALO” as its ticker symbol. Talo was previously a private company, and the deal has seen it become public. With the deal, Talos stakeholders will have 63% percent ownership of the combined company, with previous Stone shareholders having the remaining 37 percent.

Stone Energy Corporation stakeholders will benefit from increased liquidity and sales. Talos Energy is well placed to use its high asset portfolio and returns on specific programs in offshore Mexico and the US Gulf of Mexico. This includes using available business opportunities with potential in developing more business operations. The merged company will be provided with a separate announcement containing intricate financial and operational guidance details in a few weeks.

Talos Energy LLC is a privately held oil and gas company that boasts of an offshore exploration and production management team that is experienced. They operate shelf developed deepwater assets in Mexico (Gulf). They use modern seismic technological innovations and techniques to explore, produce and maximize such assets. The company was founded in 2012 after the management had help started, operated and later sold off two oil and gas companies in Mexico.

Following the deal, Talos Energy has engaged in a new credit facility agreement put at $600 million initial borrowing base, half of which is currently available. With the closing of the deal, Talos has a $450 million liquidity which includes $150 million cash at hand.

Stone Energy was based in Louisiana, but the now new company will be in Houston. It was an offshore driller in the Appalachian Basin before its assets were sold. The merger deal follows a bankruptcy reorganization filed in 2016.