Talos Energy wraps up $1.1bn acquisition of EnVen Energy

14 February 2023

Talos Energy has closed the previously announced $1.1bn acquisition of EnVen Energy, a private operator in the deepwater US Gulf of Mexico.

Talos Energy acquires US Gulf of Mexico operator EnVen Energy. (Credit: Stephen Marrable from Pixabay

The stock and cash deal, which was announced in September 2022, is said to expand the Gulf of Mexico operations of Talos Energy with high margin, oil-weighted assets.

Talos Energy has added nearly 24,000 barrels of oil equivalent per day (MBoe/d) of production. Of this, over 80% is oil-weighted, more than 90% of production is operated by EnVen Energy, and over 95% is produced from deepwater regions.

EnVen Energy has five deepwater facilities, that are claimed to have considerable open capacity. The company has an acreage footprint of around 420,000 gross acres in core deepwater areas.

With the acquisition, Talos Energy’s production will be increased by 40%, while its gross acreage will go up by 35% to considerably increase both operational scale and diversity, said the US-based exploration and production company.

The consideration is made up of 43.8 million shares of Talos Energy and $212.5m in cash to EnVen Energy along with the assumption of the latter’s net debt upon closing. At year-end 2022, EnVen Energy’s net debt was estimated at around $50m.

Following the closing of the deal, Talos Energy said that it has nearly 126.4 million shares of common stock outstanding. Assuming the closing share price as of 10 February 2023, the company’s market capitalisation is around $2.5bn.

Talos Energy president and CEO Timothy Duncan said: "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.

“The added scale and greater free cash flow generation ability also allows us to be even more competitive in our Carbon Capture & Sequestration business.”

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