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Talos Energy acquires QuarterNorth Energy, a US offshore company, with proven reserves and significant production of oil equivalent per day.
Talos is an energy company specializing in oil and natural gas exploration and production. Recently, Talos Energy signed definitive agreements to acquire QuarterNorth Energy, a company with properties in several offshore fields in the Gulf of Mexico.
The acquisition of QuarterNorth Energy by Talos Energy will strengthen the company's position in the oil and gas market. The expectation is that the production da Talos reach around 30 thousand barrels of oil equivalent per day by 2024, with the majority being oil.
Talos adds proven reserves and promotes expansion in the Offshore Energy sector
It also contributes to proven reserves, with around 69 million barrels of oil equivalent (MMBoe) and a PV-10 of US$1,7 billion.
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High Quality Deepwater Business Expansion
According to the statement from Talos Energy, the acquired assets will provide a additional scale, sourced from prolific offshore fields with a favorable decline profile, as well as offering attractive future development opportunities.
Transaction Terms and Board Approval
Consideration for the transaction includes 24,8 million shares of Talos common stock and approximately $965 million in cash. Both boards of directors unanimously approved the transaction.
Goal of Business Completion and Impact on Operations
The transaction is expected to close by the end of the first quarter of 2024, subject to certain customary closing conditions and regulatory approvals. Talos CEO Timothy Duncan points out that the addition of QuarterNorth's overlapping deepwater portfolio will increase the operational breadth and profile of production of Talos, in addition to increasing margins and the cash flow.
Alignment with Strategy and Possible Operational Synergies
The transaction aligns with Talos' overall strategy of leveraging existing infrastructure and complementary areas to accelerate shareholder value creation. Pro forma presence in the US Gulf of Mexico allows for the capture of significant operational synergies.
Financing Structure and Future Prospects
The expected financing structure of the transaction accelerates deleveraging, improves the credit profile and increases key metrics, preparing Talos to consider additional capital return initiatives following deleveraging in the near term.
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