Was It A Successful Merge For Talos Energy?

Merging of businesses are pretty common in a volatile market. The economy can be very generous but it can go south and nobody knows. Talos Energy already began doing business after the merge with Stone Energy company. Probably, the reason why Talos Energy immediately started to do the work is because the firm has an interest in Gulf of Mexico and Gulf Coast. A successful business merge means $1.9 billion in properties. CEO Timothy S. Duncan understands possible complexities of the merge. Board members from Stone Energy are joining Talos Energy as well to form an idea about boosting income for business growth. Local and international oil explorations have greater business potential.

Combining these two companies, stocks in the New York Stock Exchange have also merged. Stakeholders of Talos Energy will soon get 34.2 million shares. After the merge, shareholders of Talos will only get around 67 percent share of the firm. On the other hand, shareholders of Stone will get 37 percent. Changes can be somewhat understandable at some point. However, things can always go differently as expected.

Mitigating Risks

To minimize them, it is important to diversify business opportunities. Focusing on local exploration and production is not that efficient. Combining this with offshore exploration can be overwhelming for a profitable business. Risks can never be avoided, but minimizing them is key. According to reports, the focus now is on Gulf of Mexico which has deep water sea level. Merging of these two companies will increase borrowing potential from $600 million to $1 billion. This will expedite plans of exploring the oil production in Gulf of Mexico.

It is expected that the two firms are open for effective planning that would need advisors. Talos picked Vinson and Elkins LLP as its own legal defense counsel while Stone selected Akin Gump Strauss Hauer & Feld LLP.

Preparations were made effectively to minimize things associated with risks. Both companies are successful in field of production and exploration in deep water. It is still impossible to predict the future of these companies. Hopes are high and future plans are very promising. Coordination of management on both sides is essential to a successful deep water exploration.

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