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Talos Closes Acquisition of U.S. Gulf of Mexico E&P Company for $1.3 Billion

Written by Paulo Nogueira

Published on 16/01/2024 at 05:20

Oil and Gas

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Talos Energy Acquires QuarterNorth Energy, An Offshore Company from the USA, With Proven Reserves and Significant Oil Equivalent Production Per Day.

Talos is an energy company specializing in oil and natural gas exploration and production. Recently, Talos Energy signed definitive agreements for the acquisition of 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 Talos‘ production will reach around 30,000 barrels of oil equivalent per day by 2024, with most of it being oil.

Talos Adds Proven Reserves and Promotes Expansion in the Offshore Energy Sector

It also contributes to proven reserves, with approximately 69 million barrels of oil equivalent (MMBoe) and a PV-10 of US$ 1.7 billion.

ARTICLE CONTINUES BELOW

Expansion of High-Quality Deepwater Business

According to the statement from Talos Energy, the acquired assets will provide additional scale, arising from prolific offshore fields with a favorable decline profile, as well as offering attractive future development opportunities.

Transaction Terms and Approval by the Boards

The consideration for the transaction includes 24.8 million shares of Talos common stock and about US$ 965 million in cash. Both boards of directors unanimously approved the transaction.

Goal for Closing the Deal 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 emphasizes that the addition of QuarterNorth’s overlapping deepwater portfolio will enhance Talos’s operational breadth and production profile, in addition to increasing margins and cash flow.

Alignment with Strategy and Potential Operational Synergies

The transaction aligns with Talos’s overall strategy of leveraging existing infrastructure and complementary areas to accelerate value creation for shareholders. The pro forma presence in the U.S. Gulf of Mexico allows for capturing significant operational synergies.

Financing Structure and Future Prospects

The expected financing structure of the transaction accelerates de-leveraging, improves credit profile, and enhances key metrics, positioning Talos to consider additional capital return initiatives following de-leveraging in the short term.

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Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

Talos Closes Acquisition of U.S. Gulf of Mexico E&P Company for $1.3 Billion

Talos Energy Acquires QuarterNorth Energy, An Offshore Company from the USA, With Proven Reserves and Significant Oil Equivalent Production Per Day.

Talos Adds Proven Reserves and Promotes Expansion in the Offshore Energy Sector

Expansion of High-Quality Deepwater Business

Transaction Terms and Approval by the Boards

Goal for Closing the Deal and Impact on Operations

Alignment with Strategy and Potential Operational Synergies

Financing Structure and Future Prospects

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Talos Closes Acquisition of U.S. Gulf of Mexico E&P Company for $1.3 Billion

Talos Energy Acquires QuarterNorth Energy, An Offshore Company from the USA, With Proven Reserves and Significant Oil Equivalent Production Per Day.

Talos Adds Proven Reserves and Promotes Expansion in the Offshore Energy Sector

Expansion of High-Quality Deepwater Business

Transaction Terms and Approval by the Boards

Goal for Closing the Deal and Impact on Operations

Alignment with Strategy and Potential Operational Synergies

Financing Structure and Future Prospects

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Spain installs two giant pipelines 2.2 km off the coast to draw water from the Mediterranean and supply a megafacility capable of producing 200 million liters of drinking water per day.

Without wheels, iron, or machines, teams of up to 32 men would have dragged 2.3-ton blocks over wet sand up a ramp embedded in the pyramid itself, raising the structure in 20 to 27 years, according to a new computer model that reignites a millennia-old debate.

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A 400-meter colossus powered by natural gas has just set sail from Shanghai to Europe, carrying over 24,000 containers. It is the world’s largest dual-fuel container ship and can cross the planet without refueling even once.

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