Talos Energy’s new deal with Stone Energy

Tim Duncan is the CEO of Talos Energy, a new business which has been formed recently after a merger of two oil and gas drilling companies. The merger deal which cost $2.5 billion was between Talos Energy and Stone Energy. Stone Energy had filed for bankruptcy due to the challenges it was facing in managing its operations. Tim Duncan who has a record of taking over dilapidated businesses and making them great took this opportunity to propose a deal to Stone Energy which went through. Luckily for him, the deal went on well, and a partnership was formed. The new deal has brought these two companies back in business in a huge way. The operations of the new establishment are expected to improve as it now has more capability to run more business activities.

Talos energy is expected to move its operations outside the United States and into Mexico as well. The new company currently has the potential to drill 48,000 barrels of oil every day. This is however expected to improve in the future as the company grows further. Under the management of Tim Duncan, there is almost guaranteed certainty that the business will improve. The manner in which he pushed for this deal was impressive. He was ready to grab it, by all means, possible since by the time he wanted to complete the deal there was a hurricane in Texas, he decided to fly out to his mother’s place to complete the deal. He was so passionate about this deal and clearly did not want to waste even a minute.

Tim Duncan sought the help of Franklin Templeton Investments and Mackay Shields who would help him finance the deal. The sough $800 million which went to the deal. He considers this a great deal since it is a debt of $800 million against a total asset cost of $2.5 billion. Talos is now trading in the New York Stock Exchange courtesy of the deal. Stone Energy was already a publicly traded company, and it did not require any IPO for the new establishment to be added into the stock market. Talos owns vast oil fields in Phoenix.