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Talos Energy Acquires Whistler Energy, Enhances GoM Position
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Talos Energy Inc. (TALO - Free Report) recently acquired a privately-owned oil and gas company, Whistler Energy II LLC for $52 million. With the acquisition, the company largely bolstered its presence in the Gulf of Mexico (GoM).
Although the purchase price was set at $52 million, the net cash consideration for the acquisition was $14 million for Talos Energy, representing an acquisition metric of $9,333 per net barrel of oil equivalent per day.
Assets
The buyout has provided Talos Energy with full working interest in three blocks in the Central GoM. The blocks, namely Green Canyon 18, Green Canyon 60 and Ewing Bank 988, added 16,494 acres to the company’s asset base.
A fixed production platform, which is located at the Green Canyon Block 18, was also part of the acquired properties. The water depth at the location is around 750 feet. The production facility is located 18 miles North of Phoenix Field and Tornado discovery of Talos Energy. It has a production capacity of around 35,000 barrels of oil equivalent per day (BOED).
Gross production from the acquired assets in the first eight months of 2018 came in at around 1,900 BOED. Net production from the assets after royalties was 1,500 BOED during the said period, majority (82%) of which was oil.
Increasing Presence in GoM
Notably, Talos Energy emerged among the top five bidders in the latest GoM lease sale held on Aug 15, 2018 by the Bureau of Ocean Energy Management. Seven deepwater leases were awarded to the company during the lease sale. The latest acquisition will further strengthen the company’s presence in the prolific GoM region, which is coming back into the limelight aided by strengthening oil price and cost-reduction initiatives.
Also, three drilling prospects from the recent lease sale, received by Talos Energy, can be tied back to the recently-acquired production facility from Whistler Energy.
Price Performance
Talos Energy has gained 28.3% in the past year, outperforming the 19.4% collective growth of the stocks belonging to the industry.
Zacks Rank & Stocks to Consider
Currently, Talos Energy has a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks like McDermott International, Inc. , Subsea 7 S.A. (SUBCY - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based McDermott is an equipment provider for energy companies. The company’s top line for 2018 is likely to improve 145% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 101.7%.
Luxembourg-based Subsea is an oilfield service providing company. In the last four reported quarters, the company delivered an average positive earnings surprise of 318.6%.
Houston, TX-based Helix Energy’s bottom line surpassed the consensus mark in three of the last four quarters, with the average positive earnings surprise being 66.7%.
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Talos Energy Acquires Whistler Energy, Enhances GoM Position
Talos Energy Inc. (TALO - Free Report) recently acquired a privately-owned oil and gas company, Whistler Energy II LLC for $52 million. With the acquisition, the company largely bolstered its presence in the Gulf of Mexico (GoM).
Although the purchase price was set at $52 million, the net cash consideration for the acquisition was $14 million for Talos Energy, representing an acquisition metric of $9,333 per net barrel of oil equivalent per day.
Assets
The buyout has provided Talos Energy with full working interest in three blocks in the Central GoM. The blocks, namely Green Canyon 18, Green Canyon 60 and Ewing Bank 988, added 16,494 acres to the company’s asset base.
A fixed production platform, which is located at the Green Canyon Block 18, was also part of the acquired properties. The water depth at the location is around 750 feet. The production facility is located 18 miles North of Phoenix Field and Tornado discovery of Talos Energy. It has a production capacity of around 35,000 barrels of oil equivalent per day (BOED).
Gross production from the acquired assets in the first eight months of 2018 came in at around 1,900 BOED. Net production from the assets after royalties was 1,500 BOED during the said period, majority (82%) of which was oil.
Increasing Presence in GoM
Notably, Talos Energy emerged among the top five bidders in the latest GoM lease sale held on Aug 15, 2018 by the Bureau of Ocean Energy Management. Seven deepwater leases were awarded to the company during the lease sale. The latest acquisition will further strengthen the company’s presence in the prolific GoM region, which is coming back into the limelight aided by strengthening oil price and cost-reduction initiatives.
Also, three drilling prospects from the recent lease sale, received by Talos Energy, can be tied back to the recently-acquired production facility from Whistler Energy.
Price Performance
Talos Energy has gained 28.3% in the past year, outperforming the 19.4% collective growth of the stocks belonging to the industry.
Zacks Rank & Stocks to Consider
Currently, Talos Energy has a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks like McDermott International, Inc. , Subsea 7 S.A. (SUBCY - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based McDermott is an equipment provider for energy companies. The company’s top line for 2018 is likely to improve 145% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 101.7%.
Luxembourg-based Subsea is an oilfield service providing company. In the last four reported quarters, the company delivered an average positive earnings surprise of 318.6%.
Houston, TX-based Helix Energy’s bottom line surpassed the consensus mark in three of the last four quarters, with the average positive earnings surprise being 66.7%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>