The Talos Energy And Stone Energy Merger

Talos Energy, LLC has been in been exploring, developing and producing oil and natural gas properties in Gulf Coast and the Gulf of Mexico. The company recently went public after merging with Stone Energy from Louisiana came close to two billion dollars, giving the backers of Talos Energy 63% of the stake and leaving the remaining 37% to Stone Energy Merger. This happened after the company acquired a controlling interest in Stone Energy which had already started being traded earlier. They now go by the name TALOS on the New York Stock Exchange.

Apollo Global Management and Riverstone Holdings were the financial backers of the foundation of Talos back in 2012. The intention of the management was for the company to begin public trading in 2014 or 2015, but their plans didn’t go through as there was a fall in the prices of crude oil during that time prompting them to hold off from offering the Initial Public Offering. In 2017, however, the company was lucky enough to win the bid to produce petroleum from the Zama discovery off the shores of Mexico. This breakthrough enabled the company to acquire the 63% stake of Stone Energy now helped them to pursue their previous intentions of trading publicly. This was a move that Talos Energy made after Stone Energy filed for bankruptcy in 2016. This deal has helped both parties by assisting resurface Stone Energy’s sinking ship and allowing Talos Energy to trade in the stock exchange market.

The now new merged company will have more substantial financial backing from stakeholders of both companies. This also includes the formation of a new board comprising of six Talos Energy members and four Stone Energy members, who will all be headed by Timothy S. Duncan who previously led Talos Energy, LLC. Now with combined resources, the company will control the exploration and production based in the Zama Oil location, off the Mexican shore and the U.S. Gulf of Mexico Deepwater. All these factors will lead to the eventual growth of the company which could lead to more opportunities being seized by this company.

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