The History and Operations of The Talos Energy Merger

In November of 2017, The Stone Energy Corporation and Talos Energy LLC announced that the Board of Directors for the companies had unanimously approved the combination of Stone and Talos for an all-stock transaction would be created in a premier offshore-focused production and exploration company. The company was to be named Talos Energy, Inc., and the company is expected to trade in the New York Stock Exchange which will appear under the ticker symbol “TALO”. Some of the highlights of the combined company include two recent discoveries that include Rampart and Tornado II. And also a Long-Term growth profile that has underscored by historic and world-class Zama oil that was discovered within the shallow waters of Mexico.

As the terms of the transaction states, every outstanding share of the Stone common stock shall be exchanged and be replaced with one share of Talos Energy, Inc. After closing, Talos will end up owning 63% of the overall combined company and the Stone shareholders owned the remaining 37%. Based on the stock price of Stone at 35.49 at the end of November 2017 and the terms for the proposed transaction. Talos Energy, Inc will have the initial equity market capitalization totaling at exactly 1.9 billion dollars and an enterprise that was valued at 2.5 billion.

The combined companies had also benefited from the deep inventory of the development prospects and identified exploration as well as a significant footprint in the Gulf of Mexico. The Zama oil was the first private sector of the offshore exploration of history in Mexico. Along with all of this, the new company will also have an increase in financial flexibility, this is partially impart of an expected 1 billion credit facility and an expected 600 million in initial borrowing capacity, with no material long-term note maturities until the year 2022.