Talos Energy Is Now A Public Company Due To A Merger With Stone Energy

Talos Energy is an offshore gas and oil producer in Houston. The company’s merger with Stone Energy out of Louisiana on Thursday has also made them a public company. The merger was worth almost $2 billion. A much bigger offshore energy player has been created through the deal. The focus is on the Mexican and United States sides of the Gulf of Mexico. Talos Energy is a privately backed company who went public. This became possible due to the controlling interest acquired in Stone. Instead of filing for a public offering, Stone had the advantage of already being publicly traded. Talos Energy officially began trading under the TALO ticker on the New York Stock Exchange.

Tim Duncan serves Talos Energy as the Chief Executive. He stated the deal was a transformational combination. The backers of Talos Energy currently own 63 percent of the company after the merger. The shareholders of Stone received a total of 37 percent. Tim Duncan made an announcement discussing the asset portfolio of the company. He said they were in an excellent position to capitalize on the capital focused returns programs and high quality assets for both offshore Mexico and the United States Gulf of Mexico. He also believes they can take advantage of opportunities offering the potential for business development.

Six years ago Talos Energy was founded with a focus on the Gulf. Major private equity firms provided the financial backing including Riverstone Holdings and Apollo Global Management. The goal was to use an IPO in either 2014 or 2015 to take Talos public. These plans were jeopardized due to the subsequent oil bust until recently. Last summer Talos Energy struck it big with the offshore Mexico Zama discovery. This happened after the company was successful in winning several of the first bids for offshore. Along with others partners in the energy reform process of Mexico, foreign investors received access to offshore blocks. The first significant discovery in the deregulation process of the country was Zama.

Stone Energy Company has been based from Lafayette for over two decades. The oil price collapse forced them to file for bankruptcy protection during 2016. They did emerge last year.

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