In the aftermath of a blockbuster $2 billion merger with Stone Energy Corporation, oil and gas corporation Talos Energy Inc. is now a public company, trading under the ticker TALO on the New York Stock Exchange.
The Houston-based company went public through acquisition of a 63% controlling interest in Stone Energy, which was already publicly traded on the NYSE, as opposed to filing for an initial public offering as most companies do. This deal sees the merging of two large offshore companies possessing major assets and carrying out significant undertaking on the Gulf of Mexico.
Stone Energy Corporation had been in operation in Louisiana for over two decades when it filed for bankruptcy in 2016, following the mid-2010s glut which saw an excess of crude oil in the global market adversely affect prices. Talos was in the midst of preparation for an IPO filing when it abandoned the process, also as a result of the oil glut. Talos’ subsequent announcement of a merger with Stone served the dual purpose of allowing the former to go public, while preserving the financial integrity of the latter – the remaining 37% stake in Stone Energy is controlled by its longtime shareholders. In a statement, Talos’ founder, President and Chief Executive Officer Timothy Duncan described the completed merger as a “transformational combination in which shareholders will greatly benefit from our increased scale and liquidity.”
Talos Energy Inc. was founded in 2012 by Duncan, with $600 million in private equity funding from firms Riverstone Holdings and Apollo Global Managements. Shortly before the completion of the merger with Stone, Talos had announced its discovery of an oil field on the Gulf of Mexico possessing up to two billion barrels of crude oil. The “world-class field”, found during speculative drilling under the “Zama” program, qualifies as one of the largest field discoveries in energy sector for over two decades, possessing roughly twice as much crude oil as was originally expected.
Detailed guidelines concerning the finances and effective operation of the newly merged companies are expected in the next few weeks.
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SahmAdrangi Founded the Kerrisdale Capital Management in 2009. He is also the Chief Investment Officer and is practically involved in all the aspects of the firms’ development over the years. He started the company with a capital of 1 million dollars, to date; the company manages over 150 million dollars. MrSahmAdrangi is also known for his shorting and exposing fake and fraudulent Chinese organisations such as the China-Biotics, China Marine Food and Lihua International in 2010 and 2011. Some of the target companies such as ChinaCast Education Corp and China Education Alliance became subject to investigation action from the Securities Exchange Commission. These activist activities helped MrAdrangi create a reputation for himself.
Kerrisdale is a corporation best known for short selling and sharing research on stock markets. MrAdrangi believes in sharing the views on the stock market exchange such as overhyped shorts and under-followed longs, concepts that are considerably misunderstood by the general public. In the past few years, SahmAdrangi has concentrated the company’s efforts on some particular sectors of expertise. These include the biotechnology field where Kerrisdale has published numerous research on development stage companies such as Sage Therapeutics, Bavarian Nordic, and Zafgen among others. Another area of interest is the mining sector where the firm has focused on the market estimation as well as the marketing predictions of the Northern Dynasty Minerals and the first Majestic Silver.
Kerrisdale has also shifted attention to the telecommunication sector and has been publishing many reports on this area, sharing cynical views on Dish Network, Globalstar, Viasat Inc. and Straight Path Communications. In 2014, SahmAdrangi uncovered the weaknesses of the Proposed Terrestrial Low Power Service (TLPS) by Globalstar. He did this in a live demonstration, and webcast, followed by a series of publications, ex parte letters filled with the FCC and a meeting with FCC.
Apart from Publishing research, MrAdrangi is also an activist who led a delegation contest to substitute the Directors of Morgans Hotel Group in 2014. In the previous year, he had engaged Lindsy Corporation Management to optimise the company’s cash deployment and capital allocation policies. He has also given speeches in numerous conferences including the Activist Investor Conference.
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