Talos Energy Takes Over the Mexican Gulf Energy Sector
Who knew that such a calamity as Hurricane Harvey would spearhead the biggest deal in the history of Talos Energy? Possibly, nobody anticipated this. As the severe cyclone swept over Houston, people lost their property, and others perished. Roads were impassable, and the region had a power blackout. Dreams were shattered. But to Talos Energy Chief Executive Officer Tim Duncan, Kingwood resident, it wasn’t over.
Duncan had been spearheading a deal between his company and Stone Energy Company. The tropical torment marked the fourth month of unripe 2.5 billion dollar merger between the two companies. Even though the acquisition seemed risky owing to the troubled nature of both companies, the deal would save Talos Energy the costs of transforming into a public outfit. Thus, the executive was determined to make the deal successful at all expenses.
Refusing to get distraction from the flood, Duncan hired private plane for his family with the destination in his parent’s Alabamian home. There, he transformed his mother’s dining room into a working area, where he camped for weeks until he sealed the deal. The successful merger would see Talos Energy control 900 million dollars revenue per annum.
Talos would also control assets valued at 2.3 billion USD. On the other hand, the energy company will be operating with a debt of 700 million USD, making the deal a risk-free acquisition. The fact that nearly all these assets are spread in the Mexican Gulf adds a limitation to Talos; it is expensive to drill new platforms, and there is a high probability of catastrophes in the waters. However, the difference between the assets and debts would be useful in offsetting such substantial operational expenses.
Even though Talos Energy is on the path of becoming the leading energy company in the Gulf of Mexico, its history hasn’t been rosy. The firm’s biggest Phoenix field asset received a distraction when Hurricane Rita rolled over New Orleans in 2005. Despite having the asset swept aware, Talos was ready to clean up the mess. Currently, 16,000 daily barrels are pumped from the field.
With the inheritance of Stone Energy assets such as Pompano Platform, Talos is anticipating a vast infrastructure base that would increase its output. And as the firm has sailed through catastrophes, this would go down in history as the biggest deal in the firm’s play in the Mexican Gulf.
Read More : www.indeed.com/cmp/Talos-Energy