Talos Concludes Acquisition of QuarterNorth Energy and Its Deepwater Oil Assets
March 5, 2024
Talos Energy has completed the acquisition of QuarterNorth Energy, a U.S. Gulf of Mexico exploration and production company with ownership in several prolific offshore fields.
After completing the acquisition, Talos has approximately 183.0 million shares of common stock outstanding, including approximately 24.4 million shares issued to the QuarterNorth shareholders as consideration for the transaction.
Additionally, Talos has appointed QuarterNorth's designee, Joseph A. Mills, to the Talos Board of Directors.
The company said it plans to update its 2024 operational and financial guidance to reflect the acquisition closing timing in the coming days.
At the time the acquisition was first announced in January 2024, Talos said it would be valued at $1.29 billion and would boost its production for approximately 30 thousand barrels of oil equivalent per day (MBoe/d) expected for the full year 2024, averaging about 75% oil from approximately 95% operated assets, while also adding proved reserves of approximately 69 million barrels of oil equivalent (MMBoe) with a PV-10 of $1.7 billion.
"We are excited to close this important transaction ahead of schedule as we focus on operational execution and acceleration of synergies from the transaction.
“We expect the addition of these predominantly operated, oil-weighted deepwater assets and related infrastructure will enhance our ability to consistently generate substantial free cash flow while expanding our portfolio of growth opportunities.
“We also welcome Joe Mills to our Board. Joe brings valuable experience and insight to our business as an accomplished public company executive in the energy industry and board member in the upstream and midstream business sector,” said Timothy S. Duncan, Talos President and Chief Executive Officer.
