TalosEnergy : Progression Through Acquisition

The E&P sector waits for no one and if a new company shows any kind of stagnation they will be sure to see a rapid decline. T. Boone Pickens, a member of the billionaire club live by this model and if his net worth is any indication about the value of his words than those companies just starting should take notes.

One small independent E&P company refusing to not only slow down but remain within the status quo is Talos Energy. Talos’s route to growth seems to be through acquisition, in fact, Talos Energy recently announced that they had purchased Whistler Energy II. This is one of many routes that Talos is taking to continue their progression, another prime example of their refusal to live by the status quo is their investment on Zama-1 discovery. The discovery made in an adjacent block to PEMEX, Mexico’s state-run oil company has allowed them to rapidly reach into international waters. The milestone for Talos Energy to partner with PEMEX is not only an internal accomplishment but one on a global scale. Since 1938, the Mexican government did not allow PEMEX to do business with any foreign entity. Some say that Talos was at the right place at the right time, however, much of their negotiations by their CEO Tim Duncan was what spurred talks to evential selling of rights to their oilfields, Talos Energy being one of the first to purchase.

Those in the E&P Sector understand that growth can only come from acquisition, this is the route Talos Energy is taking and one that is proving to be the right step for company. Recently, Talos announced their acquisition of Stone Energy. The purchased although nothing new to the oil community did give Talos a huge advantage in term of their stock. By Purchasing Stone Energy, Talos could now offer stock to the public without having to go into an Initial public offering that would lead to the company losing its private status.

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