Talos Energy Acquires Stone Eenrgy, Goes Public

After acquiring Louisiana-based Stone Energy in a deal valued at $2 billion, Houston-based Talos Energy will now trade on the New York Stock Exchange under the symbol TALO. The deal leaves Talos shareholders with a 63% majority of the company and Stone Energy’s backers with 37%. Talos, previously backed by private equity Firm, went public by acquiring the already publicly traded Stone Energy instead of conducting an Initial Public Offering. The deal was initially announced last November.

Originally founded in 2012 with backing from Apollo Global Management and Riverstone Holdings, the focus of the company was always on the Gulf of Mexico. Talos rapidly established itself as one of the top wildcat operations in the gulf region and planned to go public in either 2014 or 2015, but a slump in the oil market put those plans on hold until this year. Lafayette, Louisiana-based Stone energy had filed for bankruptcy in 2016 amid the crash in oil prices after 20 years in business.

The deal will create a larger company to compete in the offshore market in both the United States and Mexican markets in the gulf of Mexico. Talos Energy president and Chief Executive Officer, Timothy Duncan calls the merger “transformational” and believes that this move will allow Talos to take advantage of its asset portfolio and capital programs in the offshore market in both the US and Mexico.

Seizing on the opportunity of loosened State control in the Mexican oil market and leveraging their experience in offshore drilling in the region, Talos struck big with their recent joint venture Zama discovery off the coast of Mexico. Drilling the first well in Mexican waters not drilled by the state owned Oil Company since the 1930s. Talos currently holds 1.2 million gross acres in the Gulf of Mexico, with 160,000 of them off the coast of Mexico.

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