The $1.9 billion merger between Stone Energy Corp. and Talos Energy, LLC is almost complete, and the new company’s name will be Talos Energy, Inc. It will be based in Huston, Texas with support staff in Lafayette, Louisiana and New Orleans. The new company will consist of ten of Board Directors with Talos producing six and the rest four from Stone Energy Corporation. However, Timothy S. Duncan, the current Chief Executive Officer of Talos will remain in the same capacity. The merger’s main agenda was to combine the two of them and come up with one reliable company. Board of Directors of both companies met in 2017 and agreed to merge the two companies. In the New York Stock Exchange, the new company will be recognized through the name, TALO, the ticker symbol.
Each share of Stone Energy would exchange with one share of Talo. Inc. In other words, the shareholders of Stone Energy will maintain the same number of their shares after the merger. However, the ownership of the new company will not be equal because Talos will have 63 percent while Stone the remaining 37 percent. In his appreciation remarks, the Stone Energy Chairman, Neal P. Goldman noted that the process would benefit the shareholders. The reason was that the company had announced to them that it would undergo some strategic review processes and the idea of having Talos was a blessing.
Additionally, the new Talos Energy Inc. would have a healthy workforce and enough money to run its business successfully
Timothy S. Duncan, the Chief Executive Officer of Talos Energy, pointed out that the new company would attract more investors and the merger was a good chance for the two companies. The merger would strengthen their quest to compete in the Gulf of Mexico. The company also planned to diversify to the U.S Gulf of Mexico and Zama Oil Location. Duncan added that the two companies had a chance to be the leaders in production and exploration because of the combined balance sheet, technical resources, and talent. The combination would speed up development of new inventions and increase exploration and transactional opportunities.
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