The chief executive of Talos Energy, Tim Duncan, never turns his nose up at a challenge. He would much rather ditch the concept of finding oil and natural gas more efficiently on the land, for the problem of drilling and finding success in the Gulf of Mexico.
Though there may be a far higher risk in the water, there is also a much higher reward as well. Stone Energy is a similar offshore production company that has seen some success with their fields in the Gulf. However, they are still creeping towards failure. For nearly four months, as Hurricane Harvey edged its way toward his neighborhood of Kingwood.
Texas, Tim Duncan was negotiating a $2.5 billion merger with the floundering Stone Energy. Knowing that the impending storm could not stop the progress he had seen, Tim took his family and pets to a nearby FEMA rescue boat in the waist-high waters of his town and found refuge in parents home which was high and dry in Houston. Once his family was safe, Tim could once again focus on the massive task at hand, merging his company with one just as large.
It might seem a daunting task to take on such a big feat, but he has never been one to tuck his tail and run when things get tough; Conflict is where Tim Duncan thrives according to his peers. Before the launch of Talos Energy in 2012, Tim and his team built and successfully sold two Gulf Coast oil companies.
The merger was eventually a success, and shareholders would see the new ticker, TALO, show up for the new company. At the start of its work in the Gulf, the team at Talos Energy drilled several new wells where Stone’s previous wells had been and are successfully producing nearly 50,000 barrels of natural gas a day. Equity shareholders should look at Talos Energy and Tim Duncan’s full body of work before feeling nervous about the merging of the two production companies. Also, Stone was not a complete failure; Though they may have a tremendous debt of $700 million, they also hold a profit margin of $2.3 billion.
Talos Energy’s Facebook Page.