Operating between Houston, Texas and New Orleans, Louisiana, there is one American oil, drilling, and exploration company with 33,000 miles of seismological data in its possession that will be merging with a similar company in the very near future. That company is Talos Energy of Houston, Texas, and they will be trading under the ticker symbol TALO under the new name of Talos Energy Incorporated after a merger with Stone Energy. Stone Energy, ticker symbol SGY on the New York Stock Exchange, was founded by James Stone in 1993. The merger of the two companies will be managed by Citibank and UBS, and is valued at 1.9 billion dollars; Current shareholders of Talos energy will receive 67% shares in the new formed company, and current shareholders of stone energy will receive 33% of the newly-formed company’s shares.
Since about 1950, the technological advances in drilling, oil wells, and exploration have drastically increased across the board for all drilling companies. Founded in 2012, Talos energy has taken full advantage of the new advances and will be managing 1.2 million acres worth of data under their combined ownership. Talos Energy has year-over-year been chosen by the Houston Chronicle to be one of the best places to work for Houstonians, since 2013. In 2015 nearly even voted as one of the top 100 best companies to work at. CEO Timothy Duncan claims that this merger with stone energy will yield a premium exploration, drilling, and oil production company. After being formed, the new formation will let both companies jointly operate at a synergistically faster pace than before when they were single entities, and allow them to cover more ground as a combined unit.
Before the union of the two companies, Talos Energy’s stock was at $35.49 as of November 20th, which values the company at 2.5 billion dollars. Last year in 2017, Talos Energy was producing on average 47,000 barrels of oil per day and had a reserve of 136 million barrels. Now with Stone’s assets teaming up with Talos to form Talos Energy Incorporated, business should prove to interesting for the joint venture.
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