A merger that took place between Talos Energy Inc. and Stone Energy last May caused shockwaves to resonate throughout the oil and energy production industry. Both companies have operated independently in the oil and gas industry and have a history of expert asset management and development. When Stone Energy was forced to file for bankruptcy in late 2016, the road was paved for the efforts of the entities to be joined under the umbrella of Talos Energy. Tim Duncan, Talos Energy CEO, says that the merger will be beneficial to shareholders due to the new company’s increase in both scale and liquidity. Duncan also expressed the joy he felt at getting the deal done after so many of his peers openly doubted the merger decision.
Many thought that the deal was a bad idea for Talos Energy Inc. due to the large size of Stone Energy and the financial woes the company was currently experiencing. The merger was further complicated by the devastation that Hurricane Harvey brought to the greater Houston area just as the merger negotiations were reaching their peak. In fact, Duncan and his family were forced to evacuate by way of a FEMA boat as the flood waters from the storm rendered all roads to and from his Kingwood, Texas home completely impassable. Once assuring the safety of his family in Alabama, Tim Duncan returned to Houston, taking up temporary residence at the home of his parents who had fared a little better from the storm.
Tim Duncan set up a makeshift office in his parents’ kitchen and the negotiations that were interrupted by the fury of mother nature began again. A few months later, these negotiations were completed and the new Talos Energy was born. The result of the merger is that Tim Duncan is now the chief executive officer of a company that boasts of annual revenue reaching $900 million. The company will also have the use of the public listing that had been enjoyed by Stone energy and the company balance sheet should also excite shareholders as the company is encumbered by $700 million currently to go along with $2.3 billion in assets.