Talos Energy Inc. has merged with Stone Energy Corporation to form “Talos Energy.” The recent development has sparked waves in the energy industry with other companies fearing that they will be run out of business by the new company which is expected to take a large chunk of oil and gas drilling operations. These two companies have an excellent history of strategic and asset management. While Stone energy was struggling to meet its financial obligations and even filed for bankruptcy in order to cushion itself from collapse, Talos Energy Inc, on the other end was performing very well. Talos has a history of taking over management of companies that are struggling and uplifting them. With the merger of the two companies Talos Energy will go into the New York Stock Exchange without requiring to pass through the Initial Public Offering (IPO).
Tim Duncan has been appointed as the new CEO of Talos energy. He was previously working as the CEO of Talos Energy Inc. After the merger, he was promoted to take charge of the overall management of the company. With the new business arrangement, there will be a high likelihood that investors and shareholders will make a good return due to the expansion of business creation which will follow. Duncan played a key role in facilitating the merger of the two businesses which cost $2.5 billion.
With the prices of oil rebounding from the 2015 decline, the company is likely to earn more. There he has been an increase of more than $60 per gallon of oil. This is a big increase that will facilitate the growth of the newly established business. There will also be better production after the merger; it is expected that production will move to 47,000 barrels in one day. The new company will also retain vast oil reserves in the Gulf of Mexico and of the coast of Mexico.
With the proven leadership of CEO Duncan, it is not a wonder for the new company to become the largest oil and natural gas company in the world. His earlier success in developing Talos Energy Inc. is a factor that will prove vital in the industry.
About Talos Energy: www.indeed.com/cmp/Talos-Energy