search

The Merger Between Talos Energy and Stone Energy


For four months, the chief executive officer of Talos Energy organized the $2.5 billion amalgamations of his company with Stone Energy Corporation, a bankrupt and publicly traded company. He risked getting hold of Stone Energy, a troubled company as big as his own, but it made Talos a public unit without the cost of a public offering.

Talos Energy and Stone Energy signed a multi-billion deal to become one firm with the aim of expanding its operations. Thankfully, the deal made the two companies the biggest oil exploration body in the Gulf of Mexico. The new company now uses the ticker symbol “TALO” on the stock market for easy reading.

Further, both firms plan to retain their old offices. However, the bad news is that some workers may lose their positions because of the restructuring. The union is part of the energy industry that focusses on offshore companies. Notably, unions in the off-shore sector are always trying to strike a balance between keeping both production costs and oil prices low.

The new Talos will have a big asset variation. It will create a brilliant executive team and a strong economic position to boost value for the shareholders. The amalgamation creates a chance for the two companies to increase their explorations potential. By merging their capital, Talos and Stone should see a quick boost in future development.

The two companies will also merge their extensive list of known exploration and development prospects. This will add to their number of acres to a combined 1.2 million acres. Increased monetary flexibility is another advantage of the merger. Talos energy expects to have a new one billion credit amount and six hundred million in the first borrowing capacity. This will let the new company chase other attractive growth opportunities. The company will be at an advantage for drilling prospects in the new site.

Follow Talos On Facebook : https://www.facebook.com/talos.energy/

close
search
Categories
Deadly Sites

Hi, guest!

settings

menu