Talos Energy LLC and Stone Energy Corp.’s boards of directors have unanimously approved the combination of Talos and Stone in an all-stock transaction that will create a premier offshore-focused exploration and production company. The company will be named Talos Energy Inc.
Under the terms of the transaction, each outstanding share of Stone common stock will be exchanged for one share of Talos Energy Inc. common stock, and current Talos stakeholders will be issued an aggregate of approximately 34.2 million common shares. At closing, Talos stakeholders will own 63 percent of the combined company, with Stone shareholders owning the remaining 37 percent. Based on Stone’s stock price and the terms of the proposed transaction, Talos Energy Inc. will have an initial equity market capitalization of approximately $1.9 billion and an enterprise value of approximately $2.5 billion.