Talos Energy, Merger And Acquisition.

Talos energy is an independent gas and oil company which was founded in 2012. The company has exponential expertise in exploring and producing offshore hydrocarbons in the United States Gulf of Mexico region and offshore Mexico. The company was formed in close partnership with Riverstone Holdings and Apollo Global Management. This was for the sole purpose of acquiring assets in the Gulf Coast and Gulf of Mexico areas. Apart from that Talos takes part in business development activities that incorporate JV’s and farm-ins.

On 31st August 2018, Talos announced that it had gotten into and concluded a deal to acquire Whistler Energy II. Before the acquisition, Whistler had a gross production of roughly 1,900 barrels of oil daily. The buy-out price was set at $52 million. As a fragment of this acquisition, Talos was able to negotiate the release of $77 million of a surety that had safeguarded Whistler’s security bonds which the firm was not required to interchange. Due to this, Talos received $31 million which as the total cash collateral that was released. The seller on their part was titled to the remaining $46 million.

Besides the acquisition of Whistler Energy, Talos energy also made a merger. The merger involved another entity known as Stone Energy Corporation. This is after the Board of Directors of both corporations solidly agreed to the amalgamation of these companies in an all-stock transaction that brought about a leading offshore-focused production and Exploration Corporation. However, the merger maintained the name Talos Energy. Under the terms and conditions laid out in the deal, every outstanding share of Stone common stock was traded for one share of Talos energy, Inc. shared stock.

At the closing of the agreement, Talos stakeholders owned 63% of the joint firm with Stone shareholders holding the remainder which was 37%. This merger was a critical step towards the company’s objective of being the premier offshore production and exploration corporation. Also, the merger gave room for more financial flexibility which would ensure that the company could conduct business most effectively and ultimately making Talos Energy a leading offshore exploration and production company.

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