Talos Energy Inc. has agreed to acquire EnVen Energy Corp., a private operator in the deepwater US Gulf of Mexico, for $1.1 billion, expanding Talos's Gulf of Mexico operations with high margin, oil-weighted assets, the operator said in a release Sept. 22.
The deal increases operational scale and diversity, Talos said, increasing production by 40%, gross acreage by 35%, and doubles the company’s operated deepwater infrastructure footprint.
EnVen currently produces about 24,000 boe/d (80% oil-weighted, over 90% operated), primarily (95%) from deepwater regions. The company operates numerous platforms, including five major deepwater structures with open capacity and holds about 420,000 gross acres in core deepwater areas for future infrastructure-led development, exploitation, and exploration opportunities, Talos said.
The infrastructure is backed by over $160 million in restricted cash and receivables reserved against future abandonment obligations, the operator noted.
On a pro forma basis, Talos expects to be more than 70% oil-weighted, more than 75% operated, and over 80% focused in deepwater regions.
Consideration consists of 43.8 million Talos shares and $212.5 million in cash, plus the assumption of EnVen's net debt upon closing, currently estimated at $50 million at yearend 2022.
At closing Talos shareholders will own about 66% of the pro forma company and EnVen's equity holders will own the remaining 34%.
Closing is expected by yearend, subject to closing conditions, at which time Talos expects to provide 2023 financial guidance.
