The acquisition of Stone Energy by Talos Energy was something that the CEO had been working on for 4 months before Hurricane Harvey Hit. the flood waters were at waist level when he received warning that 6-foot flood waters were going to hit the Kingwood, suburb where Tim Duncan is a resident. He, therefore, decided to move family to higher ground. He moved his family to his parent’s house and from there continued to work on making the deal a reality. Apart from the fact that he did not want to use the storm as an excuse, he saw the benefits of the acquisition for his company.
The deal will allow Talos Energy trade on the stock market without the hassle and expense associated with Initial Public Offerings. Stone Energy Corporation is bankrupt but is a public company, the acquisition will make Talos Energy public too. Talos Energy will trade as TALO on the New York Stock Exchange. Shareholders in Talos Energy will also receive 63% of Stone energy shares. The combination off Stone Energy and Talos Energy will give the new company the best of both top management team which is likely to increase the company’s revenue.
The merger also will ensure that both companies share inventory on their different exploration and production projects. Their combined skills and technical know how will also ensure that projects are completed faster. Tim Duncan sees the merger as an opportunity providing Talos Energy with new and exciting projects drawn from their combined inventory. The new company will have capital that will enable it to pursue new exploration and production projects.
The acquisition wa settled on after both companies consulted experts for advice on merging with Talos Energy. Stone Energy received advice from Petrie Partners Securities who are experts in the energy industry. Akin Gump Strauss Hauer & Feld LLP provided legal advice on the merger. Talos Energy was guided by Citigroup and UBS Investment Bank and received legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP and Vinson & Elkins LLP.
About Talos Energy
Talos Energy was established in 2012 and has its headquarters in Houston. The company specializes in offshore exploration and drilling with a focus on the Gulf of Mexico.
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