Category Archives: Industry

Talos Energy and the Stone Merger – Looking to Dominate Offshore Energy Exploration

Talos Energy operates as an independent oil and gas company that places focus on energy production ad offshore exploration. The company operates primarily in and around the Gulf Coast and the Gulf of Mexico. The company also places emphasis on acquiring assets, exploration, and exploitation. Talos, based in Houston, recently focused its efforts on acquiring Stone Energy Corp. The company bases operations out of Louisiana. The merger aims to trade on the New York Stock Exchange and identifies itself as TALO.

Talos Energy is on a mission to become a major player in offshore exploration and energy production. The company’s CEO, Timothy Duncan, notes that his company positions itself to do so due to its talent pool, technical resources, and well-run operations that enable it to go after major exploration opportunities. The merger works well for Talos stockholders who will own 63 percent of the company. Stone stockholders will own the remaining shares.

Talos and Stone’s merger will command a combined total of 1.2 million acres of the Mexico’s Gulf Coast. Daily oil production purposes to reach 47,000 daily barrels. Oil reseverves may total136 million barrels. The merger will give the new company a lot of flexibility to control and manage its finances. Its credit access may reach $1 billion, with an initial capacity to borrow $600 million void of any long-note maturity expectations until 2022. Headquarters will remain in Houston along with additional offices in New Orleans and Lafayette.

Oil is still the most dynamic commodity in the world. As such, there are a number of things to watch in 2018, and beyond.

  1. Global oil demand will rise according to a number of industry experts.
  2. The U.S. production of crude oil should rise.
  3. Saudi Arab is likely to increase their oil output, and their cost per barrel should also rise.

Oil exploration is a challenge, and only the best companies can compete, thrive, and grow. Offshore drilling is a mechanical process where oil companies dig wellbores below the seabed. Much of the oil lies in rock formations located beneath the seabed. Oil and gas exploration companies must face a lot of scrutiny due to ongoing environmental issues, environmental impacts, and existing obligations to industry regulations.