The fuel and energy industry has been significant in the development of economies around the world. As such, many companies have emerged to invest in oil drilling and the sale of petroleum products. Talos Energy is an independent oil drilling and gas company that operates in the US Gulf of Mexico. The company was founded in 2012 and has witnessed tremendous growth through asset optimization, exploration, and exploitation. The firm has also focused on the establishment of private equity to maximize profit margins.
In a bid to expand their operations, Talos Energy announced that it was going into a merger with Stone Energy Company. After the completion of the merger process which is estimated to cost over $2 billion, Talos Energy shareholders will own 63 percent stake while Stone Energy will hold the remaining 37 percent stake. The merger process has led to the introduction of a new company to start trading on New York Stock Exchange. As such, the Talos Energy will remain headquartered in Houston, Texas in the United States of America.
There are a couple of reasons that made the two companies to the merger, the foundation stone of the two oil giants was solid thus leading to a successful merger process. Timothy Duncan established Talos Energy, and he took much interest in deep water oil exploration in what was a politically volatile Mexican nation. As such, the company maximized the opportunity to invest in other shallow water exploration centers thus leading to increased production. On the other hand, Stone Energy Corporation was also an oil exploration company which operated in Lafayette, Louisiana. The Stone Energy was established in 1993 by James Hiram and worked in the same region with Talos Energy. But with the collapse of oil prices in 2016, the company filed for bankruptcy protection. Later on in 2018, the company regained its footing and elected a new board of directors that helped merger process.
Talos Energy has taken the full mandate and obligation of spearheading the oil exploration activities in entire Mexico. It has also initiated the development and acquisition of assets to ensure the company remains in a profit-making position.
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