Talos Energy has agreed to acquire EnVen Energy, a US private operator in the US deepwater Gulf of Mexico, in a deal valued at $1.1 billion including debt.
Under the deal, Talos will issue 43.8 million of its shares and $212.5 million in cash.
After the deal closes, Talos will assume EnVen’s net debt, which is estimated to be approximately $50 million at the end of 2022.
Talos shareholders will own approximately 66% of the combined company, with EnVen owners holding the remaining shares.
Subject to customary closing conditions, the transaction is expected to close by the end of this year.
The acquisition of deepwater assets with significant infrastructure is expected to increase Talos’ production capacity by 24,000 barrels of oil equivalent per day. It will also double the area of the firm’s operated deepwater facilities.
Talos President and CEO Timothy Duncan said, “This transaction adds significant scale and diversity to our business through a logical expansion within the basin with an excellent strategic approach. EnVen’s highly profitable oil-weighted assets in key deepwater regions, managed infrastructure and significant overlapping acreage will enhance our ability to accelerate shareholder value creation.
“The acquisition is financially attractive, expands our operating margins and increases free cash flow per share, while improving our credit profile without taking into account the significant expected cost synergies.
“The improved cash flow profile will provide us with additional capital allocation opportunities, including additional high-impact subsea communications opportunities, opportunistic acquisitions, acceleration of our low-carbon initiatives and positioning Talos for a potential future shareholder return program. .”
EnVen is primarily engaged in the development, exploration and acquisition of oil fields in the US Gulf of Mexico.
Talos, one of the largest operators in the Persian Gulf, has bought about a dozen energy companies, including Stone Energy, to capitalize on higher oil prices, according to reports Reuters.
https://www.offshore-technology.com/news/talos-deal-oil-enven/ Talos signs US$1.1 billion deal to acquire Gulf of Mexico oil producer EnVen