Chronicle of Week recently published Haley Thompson’s article “Talos Energy Merges with Stone Energy: A Complete Guide”. The article provides details on the latest merger for the energy companies. The two companies both work in the energy and production sector of the market, working specifically with oil and gas.
A key insight is that the merger allows Talos Energy to become publically traded without having to deal with the cost of an IPO. CEO of Talos Energy, Tim Duncan revealed that the combination of companies will be a huge benefit to the stockholders because it allows both companies to increase their production and liquidity. Talos contains a variety of high-quality assets focused particularly in the U.S. Gulf of Mexico and offshore drilling. The company will now be able to take advantage of possible business developments. The $2.5 billion dollar merger will help the oil and gas companies bounce back. After the price collapsed in 2015, the price of oil has once again risen to $60 per gallon. The oil and gas companies around the nation are currently poised to provide the country with crude oil and Talos Energy in particular has increased production of the natural resource. The merger will allow the company to continue producing and increase its production to nearly 47,000 barrels of oil per day.
The merger will also allow Talos to have more financial flexibility, allowing them to develop and innovate within the market. Tim Duncan suggests that Talos Energy will also invest in the Gulf of Mexico assets while also drilling Mt. Providence. The company has become successful under the leadership of CEO, Tim Duncan, who was the first to demonstrate the ability of the company to turn risky assets into successes. For example, after Hurricane Rita happened in 2005, an oil field in Phoenix capsized. Luckily, Duncan quickly acquired the field and turned it into one of the company’s largest asset. He also helped discover Zama-1 field, a Mexican offshore oil field that has the potential for long term success. It contains nearly 2 billion barrels of oil which will be produced within 5 years.
Talos Energy’s Facebook Page: www.facebook.com/talos.energy/