Talos, Stone Energy Announce All-stock Combination - Quick Facts

(RTTNews) - Talos Energy LLC and Stone Energy Corp. (SGY) announced their Boards have approved the combination of Talos and Stone in an all-stock transaction. Each outstanding share of Stone common stock will be exchanged for one share of Talos Energy, Inc. common stock and the current Talos stakeholders will be issued an aggregate of approximately 34.2 million common shares. At closing, Talos stakeholders will own 63% of the combined company, with Stone shareholders owning the remaining 37%.

The combined company will be named Talos Energy, Inc. and is expected to trade on the NYSE under the ticker, TALO. Talos Energy, Inc. will have an initial equity market capitalization of approximately $1.9 billion and an enterprise value of approximately $2.5 billion. The combined company will have estimated 2017 average daily production of approximately 47 Mboe and proved reserves of 136 MMboe as of June 30, 2017 based on SEC prices. The combined company expects to achieve up to $25 million in annual pre-tax synergies from supply chain management and other operational efficiencies by year end 2018.

Timothy Duncan, Talos's CEO, will be Chief Executive Officer of Talos Energy, Inc. The transaction is expected to close in late first quarter or early in the second quarter of 2018.