Talos Energy is a company located in Houston, Texas. They are mainly focused on oil and gas energy along the Mexican Gulf. The company was started in 2012 and their main functions are to explore and develop valuable deep sea resources that are located in close proximity to infrastructures.
Stone Energy is a company that drills and produces natural gas. The company is located in Louisiana and they have branches in New Orleans and Texas. The company takes advantage of the high-profit margins obtained from assets.
During the second quarter of the 2018 business year, Talos Energy and Stone Energy Corporation have become one in an acquisition that totaled approximately $1.9 billion. As a result of this merger, the company will change names and become Talos Inc with the main branch being in Texas.
The stakeholders of Talos Energy will gain about $34 million which translates to existing Talos shareholder having a 63% share in the new company while Stone shareholders will own the rest which is 37%. Overall, the merger will give the company a net worth of $2.5 billion.
There will be large-scale diversification of assets which is guaranteed to increase the value for shareholder and potential investors.
The two companies both have a very valuable set of resources which when put together are more than likely to increase the chances of development for the company which will allow them to take charge of the Mexican Gulf, Zama Oil and the coast of Mexico. The main goal of this acquisition is to make Talos Inc a leading explorer and producer of energy.
In addition to this, the area to be occupied by the new company, Taos Inc will increase to almost 1.2 million acres with 160,000 acres being from Mexico. Before deciding upon this merger, both individual companies were given special advice by the best legal advisory teams.
However, despite all this, this merger was closed and Talos Energy turned into a publicly traded company and will be trading in the New York Stock Exchange and will be identified as TALO.
To Know More Please Click Here