Talos Energy closes purchase of EnVen

Houston-based oil and gas company Talos Energy has completed the acquisition of EnVen Energy Corporation, a private operator in the deepwater U.S. Gulf of Mexico, for $1.1 billion. 

The announcement comes five days after Talos Energy received stockholder approval for the acquisition.

With the completion in place, Talos has approximately 126,370,000 shares of common stock outstanding and a market capitalization of approximately $2.5 billion, assuming the closing share price as of 10 February.

According to the company’s President and CEO Timothy S. Duncan, the added scale and greater free cash flow generation ability also allow the company to be more competitive in its carbon capture and sequestration business.

“We are excited to close the EnVen transaction, which adds significant scale and diversity to our business and integrate these high-margin, oil-weighted assets, operated infrastructure and overlapping acreage into our portfolio, strengthening our position as a safe, reliable, responsible operator in the Gulf of Mexico,” Duncan said.

“I am extremely proud of the Talos team for their strong focus and hard work and appreciate the continued support of the EnVen employees as we work together to ensure successful integration and realize the valuable synergies this transaction provides.”

The combined company is led by Talos’ senior management team. Robert Tichio, the Riverstone Holdings representative serving on Talos’s Board of Directors, resigned from the Board of Directors, and Shandell Szabo and Richard Sherrill, directors designated by EnVen, were appointed to the board. The board now consists of seven independent directors and Duncan.

Talos expects to provide 2023 financial and operational guidance for the combined company to investors concurrently with the fourth quarter and full year 2022 earnings on 28 February 2023.

EnVen currently produces approximately 24 MBoe/d in the U.S. Gulf of Mexico which is more than 80 per cent oil-weighted, more than 90 per cent operated and more than 95 per cent from deepwater regions.

The company operates numerous platforms, including five major deepwater facilities with significant open capacity, and holds an acreage footprint of approximately 420,000 gross acres in core deepwater areas for future infrastructure-led development, exploitation and exploration opportunities.