Talos Energy LLC is based in Houston and is in the process of acquiring the Stone Energy Corporation based in Louisiana. The company name will be Talos Energy Inc. They will additionally trade under the ticker symbol of TALO on the New York Stock Exchange. The CEO of Talos is Timothy S. Duncan. He believes the company is reaching towards their goal of becoming the premier production company for offshore exploration. He stated the combination of their balance sheet, offshore resources and talent is enabling them to explore new opportunities. Once the deal has closed the stakeholders will own 63 percent of Talos. Another 37 percent will be owned by the Stone shareholders. The capitalization for the equity market is approximately $1.9 billion and the value of the enterprise is roughly $2.5 billion. These figures are based on the price of Stone stock at $35.49. Approximately 1.2 million acres contained within the Gulf of Mexico will be a part of Talos.
The average daily production for 2017 was 47 thousand barrels per day. The reserves for the oil equivalent are at 136 million barrels. Talos will be more flexible financially to enable more growth. The estimations are a credit facility of $1 billion, an initial borrowing capacity of $600 million and no note maturities until the year 2022. The CEO of Talos Energy Inc. will be Duncan. The board of directors will consist of ten members including four from Stone and six from Talos. Houston will house the Talos headquarters but there will also be offices in both New Orleans and Lafayette.Talos was honored when WorkplaceDynamics named them the best small, local business place to work. Duncan stated the reason had nothing to do with their perks for playing hard and working hard such as day care on the site or happy hours on Fridays. Talos is actually in the center of the pack concerning their compensation.
The difference is the piece of the equity pie Duncan gave to the Houston employees, receptionists and geoscientists. Duncan believes both the rewards and risks should fall to the management of the company as well as the employees. He sees the business as a boat everyone is rowing together. He felt it was important to give the employees something tangible to hold onto. He does not believe the value of a private company can be efficiently analyzed. He stated it is their actions that increase or decrease the value. Talos acquired a subsidiary of Helix Energy Solutions that produces gas and oil for $620 million. They are reported to be ready to make another purchase. Talos is backed by an estimated revenue of approximately $500 million per year. This places them in an ideal position to achieve even more growth in the future.