Acquisitions and mergers, deals and longshot bets can make or break a company. Tim Duncan CEO of Talos Energy was working on one of the most important deals of his career. Then Harvey struck and he found his home in waist deep water and the forecast was for another six feet of water through the night. A FEMA rescue boat removed Duncan and his family to safety, but Tim Duncan found he had so much more on the line than his house.
Duncan pulled himself together, sent his family to Alabama where they could be safe. Ducan had to return to Texas and stay at his parents home, where he could work on the acquisition of Stone Energy, a publicly traded company that was bankrupt but had some beautiful leases, with all the right qualities for further drilling. The merger would be a 2.5 Billion merger and take Telos Energy into the publicly traded stocks of the energy sector. The merger of Telos Energy with Stone Energy would have an annual revenue of 900 Million per year.
The Gulf coast is the second largest producer of oil for the United States, roughly 1.6 million barrels per day, the largest in the Permian Basin. A large part of the oil is located in protected waters that have recently been opened to drilling with changes made by the Trump administration.
Drilling in the Gulf will always be a high risk and expensive venture, but for Tim Duncan, the potential rewards for a system he has developed of buying and bringing to life old wells have made his company profitable.
“We resisted the temptation to join the landrace onshore,” Duncan says. “I try explaining to young investors, and they have a hard time getting it.” Matt McCarroll, who runs privately held Gulf of Mexico rival Fieldwood Energy, dismisses the Permian as a “manufacturing” assignment: “You can run the business on a spreadsheet.”
Learn More: www.indeed.com/cmp/Talos-Energy