Talos energy was formed from the merging of Talos Energy Incorporated and Stone Energy Corporation which both operated in the industry of energy and production providing oil and gas.
Stone Energy was undergoing financial hardship, and Talos Energy had already been used to financial struggles and this the merger to quickly go public while avoiding the cost of an initial public offering associated.
Tim Duncan, Talos Energy CEO and also the former Talos Energy Inc. Chief Executive Officer said that through the merger their shareholders would benefit significantly from the company’s increased scale.
They are now capable of utilizing high-quality assets and programs on returns focused capital in offshore Mexico and the U.S. Gulf of Mexico. After the 2015 oil price collapse, the industry is rebounding following the price increase recently.
Talos energy now will experience an increase in production of oil. The company has more assets such as seen in their vast oil reserves in the Gulf of Mexico. Since the merger saw the formation of a large company, it is now able to attain an increase in their financial flexibility.
After entering a new credit facility agreement, the company had an initial borrowing base of about six hundred million dollars. The company also has liquidity of 450 million dollars which also includes their cash on hand which is roughly 150 million dollars.
Talos energy released their new financial and operated guidance for the year 2018. It would include an expectation of positive cash flow generation after the debt service. This would be while still developing in the high-quality assets in the U.S. Gulf of Mexico.
It also highlighted success in the drilling of Mt. Providence well expected to be finished by September. The company is under the leadership of an experienced CEO in Tim Duncan.
He has gained success over the years in various corporations. An example was when he was the Senior Vice President of the Phoenix Exploration Company, and he was able to turn around a disaster struck field for Cabot Oil and Gas Corporation into a success. He was also able to discover and secure the Zama-1 field in the Mexican offshore.
About Talos Energy: www.indeed.com/cmp/Talos-Energy