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.
To Know More Click Here