Talos Energy, a company based in Houston is going to be experiencing a number of changes in its internal structure, owing to an acquisition deal that is currently set into play. The company that stands as one of the leading energy companies in the state is all set to acquire Stone Energy, a company based out of Louisiana. The announcement about the announcement was made through a press release and is set to come into action somewhere during the early months of next year. After the acquisition goes through, there are some things that will remain unchanged. For one, the company will collectively be called Talos Energy and will continue to be listed on the New York Stock Exchange as TALO.
In a press conference, Timothy Duncan, who stands as the CEO of Talos Energy came forward to state his opinions regarding the acquisition that is going to be undertaken. In this statement, he mentioned how the company was in need of an increased amount of talent and resources. By itself, the company was not able to meet the growing demand, which is why an acquisition was a good way to be able to get resources and benefit all those involved. Duncan stated that this acquisition and increased funds would not only help the company achieve a better line of products but can also help them expand their radius and take on better opportunities.
After the acquisition goes through, a number of changes will go into order. One of the main differences is regarding the stakeholders of the company. Those belonging to Talos Energy initially will own sixty-three percent, while those who come from Stone Energy will only be allowed to hold thirty-seven percent.
One of the drastic changes that the company will experience is the financial flexibility as a result of the acquisition. After the announcement was made, the stock price of the company suddenly started to see an upward curve. Over time, this amount can increase, thereby benefiting the company even more.
This is not the first instance where Talos Energy has undergone a significant acquisition that is going to improve the company hugely. In the past, the company has gone on to acquire well-known names like GOM Inc., Helix Energy Group and many more. These acquisitions helped the company grow and become a notable name, and have proven to be incredibly beneficial for the company.