Talos Energy Debuts On The NYSE Following Merger With Stone Energy

Offshore oil and gas company Talos Energy has begun publicly trading on the New York Stock Exchange in the aftermath of its $2 billion merger with Louisiana-based Stone Energy Corporation. Prior to the merger, Stone Energy Corporation, founded in 1993, had filed for bankruptcy protection, following a precipitous collapse in oil prices in 2016 resulting from a rapid acceleration of global surpluses of crude oil.

Houston-based Talos had previously intended to go public through an initial public offering, but the oil glut that led to Stone’s bankruptcy filing put those plans on hold. As Stone Energy was already being publicly traded on NYSE, the acquisition of a controlling interesting in the company meant Talos could go public without filing for an IPO as is common and was originally envisioned. The company now trades under the ticker “TALO”, and owns 63 percent of the merged company, with Stone shareholders controlling the remainder.

The deal sees the merger of two large offshore energy entities that operated in and around the Gulf of Mexico, and comes in the wake of Talos’ July 2017 “Zama discovery”, which saw the company discover an oil field along the southern coast of the Gulf of Mexico containing an estimated 2 billion barrels of crude oil. The find has been calculated to be one of the largest discoveries of shallow-water fields in the last two decades, and is expected to yield as many as 425 million barrels of usable crude oil.

In a statement announcing the merger and the new public status of his company, Talos founder and Chief Executive Officer Tim Duncan touted the oil producer as being “very well positioned to capitalize on its high-quality asset portfolio and returns-focused capital programs in the U.S. Gulf of Mexico and offshore Mexico.”

Talos Energy was founded in 2012 by Duncan with the financial aid of private equity giants Riverstone Holdings and Apollo Global Management. Operating in the Gulf Coast and the Gulf of Mexico, the company is headed by a management team with an average thirty years of experience in the energy industry.

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