Following the completion of the merger between Talos Energy and Stone Energy, Talos has taken control of Stone’s listing. Talos Energy is now trading on the New York Stock Exchange as TALO, its new ticker symbol. After the conclusion of the merger, the new outfit is now referred to as Talos Energy Inc. Timothy Duncan is still the Chief Executive Officer of the new company.According to the terms of the deal, most of the company’s assets will remain in the Gulf of Mexico. According to Duncan, a respected veteran in the oil and gas industry, the deal poses no serious risk. Stone Energy has a total debt of $700 million against $2.3 billion worth of assets. The balance sheet comfortably offsets the risks involved, especially the high cost of drilling and possible oil leaks.
This is a placeholder account for Talos Energy LLC in Houston, Texas. Questions about the company should be directed to 713-328-3000.
— talosenergy (@talosenergyllc) February 12, 2013
The stocks opened on may 10 with each share of Stone Energy’s common stock trading as one share of Talos Energy Inc. stock. Based on the Stone’s stock price of $35.49, Talos Energy Inc will have an initial equity market capitalization of roughly $1.9 billion, and about $2.5 billion in enterprise value. Previous Stone’s stakeholders own 37% while former Talos stakeholders remain with the rest 67% of the newly formed company.
Upon the completion of the merger, the newly formed company secured a credit facility with an expanded borrowing base of up to $600 million. Already, $300 million has been disbursed. Additionally, Talos Energy Inc. has increased its liquidity to $450 million. The figure is inclusive of approximately $150 million in available cash. Also, the new company has a combined 1.2 million acres and an equivalent 136 million barrels of oil proved reserves in the Gulf of Mexico.
According to Timothy Duncan, the merger is a landmark deal, from which the shareholders will greatly benefit. The benefits will mostly come from increased liquidity and scale of operation. The agreement places Talos energy in a superior position to optimize on its quality collection of assets and returns from Capital Programs in the United States.
“We sincerely thank and appreciate everyone who dedicated their time and resources to facilitate the progress of the deal to this point,” said the CEO
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