Talos Energy is an offshore oil and gas producer from Houston. The company has now become a public company after a $2 billion merger with Stone Energy from Louisiana. The deal sees the creation of one major player in the oil and gas industry in the U.S who will focus on mining in Mexico and the United States. Talos has been operating as a private firm but went public after it acquired a controlling stake in Stone Energy Company. Stone was already public, and therefore Talos did not have to fill anything to become a public company. Normally a private company needs to fill an Initial Public Offering (IPO) in order to become public.
Talos Energy has since joined the New York Stock Exchange operating under the ticker “TALO.” In the new deal, Talos is expected to go through a thorough transformation. The backers of Talo Energy own 63% of the new deal while those of Stone Energy has 37%. Under the new deal, Talo is tipped to grow further by taking advantages of the business opportunities that will result from the expansion. Talos Energy has a special focus on the Gulf of Mexico, and it is even the reason it was created six years ago. Talos Energy has enjoyed the financial backing of Apollo Global management and River stone Holdings.
Talos Energy made a big win last summer after it won a number of bids in Mexico. It was among the first companies to take over oil and gas drilling after Mexico started allowing international investors to start their operations in the area. Stone energy on its part has been going through rough times financially. In 201, it filed for bankruptcy protection. Oil prices had gone so low that they feared a collapse. It resurfaced in 2017 stronger.
The merger has been tipped as historical and one of the biggest to ever occur in recent times in the oil-gas industry. With the new developments, Talos Energy which has been operating as independent exploration and production company in shallows water of Mexico is likely to take its operations to the deep waters.
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