It’s official folks, Talos Energy which is based out of Houston, Texas will be acquiring Stone Energy Corporation. Stone Energy isn’t based that far from Talos, being headquartered in Lafayette, Louisiana. These two companies when combined will create a $1.9 billion merger and that is what was reported by a press release. Not only is the deal expected to close next year, this will change the overall makeup of current giant Talos Energy completely.
“This combination represents an important step in our goal of becoming the premier offshore exploration and production company,” as stated by Timothy S. Duncan. Duncan, who is Talo’s current CEO has been behind this movement 100% and is thrilled to see what the future has to bring for his company.
In other news, Talos Energy will grow not only in the areas of finance by this deal, they will be expanding in terms of physical size as well. The acquisition of the Gulf of Mexico acreage will seal the deal as a major improvement company wide. The increase of 136 million barrels will definitely raise production levels greatly.
The final part that must be addressed is the set up of the board of directors for Talos Energy. The current CEO Duncan will head a 10 member board of directors. Six members for Talos and four members coming from Stone will be the balance of this board for the foreseeable future.
Talos energy will see some form of familiarity with the headquarters staying in Houston, Texas. There are currently plans for additional offices in Lafayette as well as New Orleans. Stone did, however, file for bankruptcy in Houston last year with $1.23 billion in assets to go along with $1.75 billion in debt.
This discovery has lead some to believe that bankruptcy s the main reason for this news of a merger. Back in 2013 Talos merged with Energy Resource Technology GOM Inc or ERT for $620 million. ERT had a specialty and that was oil and gas, as it was a subsidiary of Helix Energy Solutions Group. Talos has recently expressed how stiff the competitors were for the Gulf and Mexican exploration efforts.
During 2015 Talos happened to win it’s bid to explore in Mexico after the goverment reformed their energy industry. In July Talos made the announcement of an extraordinary find yielding oil in the amount of 2 billion barrels, which will surely make a difference to investors.