Talos Energy Acquires a Big Competitor

Talos Energy is sure one of the biggest names in offshore exploration and production. It is an oil and gas company based in Houston, Texas. For several years, Talos Energy has dominated both Gulf of Mexico and Gulf Coast and the regions around them. Apart from exploitation and exploration, the company is also into asset optimization.

One of the reasons for the success of the company is that its management team is filled with highly experienced individuals that have cognate experience of several decades. Apart from the expertise of the management and technical teams of this company, it is also important to mention the fact that Talos Energy makes use of the very best equipment and technology. Once any new technology or equipment emerges, Talos Energy will be one of the first to acquire it.

Due to their success, Talos Energy is set to acquire Stone Energy, another big name in the oil and gas industry. When you look at the modalities, you will understand that it is more of a merger than acquisition. It is just that Talos Energy will have more shares. The merger of the two companies will be Talos Energy Inc. According to a reliable source, the deal will cost Talos Energy an estimated $1.9 billion. It has also been disclosed that the merger will trade on the New York Stock Exchange.

The merger is one of the biggest mergers and it is anxiously awaited within the oil and gas industry and beyond. This merger means that their financial resources will be merged together as well as their team of management. In other words, the new company that will emerge from the merger will be bigger, stronger, more credible, more popular and more successful.

According to the same source, Talos Energy has 63 percent of the merger while Stone Energy has the remaining 37 percent. So it will be shared among the shareholders of both companies. Since Talos has the larger share, its current CEO will be retained as the CEO of the new company.

The board of the new company will have just 10 members and 6 of them will be from Talos Energy while the remaining 4 will be from Stone Energy. Several other decisions are being taken as the merger is perfected.

The Headquarter of Talos Energy in Houston will be the Headquarter of the merger. Meanwhile, Stone Energy’s office in Lafayette will be one of the branch offices of the new company. From all indications, the merger will be concluded by or before the end of second quarter next year.