Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Talos Energy Buys EnVen for $1.1 Billion to Expand
10/21/2022
Talos Energy Inc. is acquiring EnVen Energy Corp. for $1.1 billion to raise Talos’ Gulf of Mexico production by 40%.
The purchase of EnVen, a private operator, increases Talos' operated deepwater facility footprint 2 times, expanding key infrastructure in existing Talos operating areas. Almost 80% of the assets will be deepwater, with Talos operating more than 75% of the acreage it holds interests in.
During a conference call on September 22, it was announced that the EnVen purchase “just checks a lot of boxes” in terms of scale, assets, similar strategies, and what Talos is doing from a technology standpoint.
The acquisition is anticipated to close by the end of the year and generate $30 million or more annually in synergies related to general and administrative cost reductions. Moreover, it extends the company’s Gulf of Mexico footprint with acreage Talos has previously attempted to purchase.
EnVen holds 78 MMboe of 2P reserves and 420,000 gross acres in the Gulf of Mexico. The deal also includes about 24,000 boe/d to Talos’ production stream.
EnVen operates the Brutus/Glider asset in 2,900 feet to 3,243 ft water depth with 100% interest. The production facility has a gross capacity of 120,000 bbl/d. EnVen’s operated Lobster Field in 775 ft of water and a gross oil capacity of 80,000 bbl/d. EnVen holds 67% working interest in the field.
The EnVen-operated Cognac Field in 1,023 ft of water has a gross oil capacity of 30,000 bbl/d. The company holds 63% interest in that field. EnVen manages Neptune with 65% interest. With a gross oil capacity of 50,000 bbl/d, the field is in 4,250 ft water depth.
Prince, which EnVen manages with 100% interest, is in 1,500 ft of water and has a gross oil capacity of 50,000 bbl/d. EnVen holds a 50% interest in the Chevron Corp.-operated Petronius Field in 1,754 ft water depth. It has a gross oil capacity of 60,0000 bbl/d.
The combination of Talos and EnVen deepwater facilities will encourage more subsea tieback activity for unused capacity at the various production units.
EnVen had around three dozen subsea tieback ideas rolling through their inventory. Talos would pull together those ideas during planning for the 2023, 2024, and 2025 spending programs.
Consideration for the transaction consists of 43.8 million Talos shares and $212.5 million in cash, plus the assumption of EnVen's net debt upon closing, currently valued to be $50 million at year-end 2022.
The transaction has been unanimously approved by each company's board of directors. Closing is expected by year-end 2022, subject to customary closing conditions. Following the transaction, Talos shareholders will get about 66% of the pro forma company and EnVen's equity holders will get the other 34%.
The company said the agreement implies a valuation of about 2.4x 2022 estimated hedged adjusted EBITDA with the transaction more than 13% accretive to Talos shareholders on 2023E free cash flow per share. Talos anticipates the transaction to be immediately de-leveraging at closing, with year-end 2022 leverage of less than 0.8x. Additionally, Talos will have no near-term maturities.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Talos Energy Plans to Close the EnVen Acquisition Soon: Stockholders to vote on $1.1B Deal on February 8
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/116Blog_Talos_Will_Close_the_Acquisition_of_the_EnVen_01_2023.png)
Talos Energy Inc. is closing its $1.1 billion purchase of private operator EnVen Energy. A special meeting for Talos’ stockholders to vote on the deal and other matters is set on February 8, according to a prospectus filed on January 11 with the Securities and Exchange Commission. Shareholders are being asked to approve the EnVen merger, which as the company considered in September would raise its Gulf of Mexico production up to 40%. According to a January 11 press release, Talos asserted that it anticipates closing the transaction soon after the meeting. Talos Energy Inc. supposes that adding EnVen would double its operated deepwater facility footprint, extending key infrastructure in existing Talos operating areas. More than 80% of the combined assets will be deepwater, with the company operating more than 75% of the acreage it holds interests in. Talos is one of the largest independent operators in the U.S. Gulf of Mexico, with production operations, prospects, leases, and seismic databases spanning the basin in both Deep Water and Shallow Water. The company aims to actively grow through a balanced focus on asset optimization, development, and exploration while also seeking to add to its portfolio through acquisitions and business development.
February Top U.S. Midstream Deals: Delaware Appears As the Key Area
![$data['article']['post_image_alt']](https://rextag.com/images/public/blog/NextEra-Howard_NG_Transportation_Partnership_in_Delaware.jpg)
Midstream companies seek partnerships, connect their most robust assets to the fastest growing markets. Let us see what they did this past February
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/184Blog_Rangeland Energy Divests Canadian Pipeline to Kingston Midstream.png)
Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/187Blog_ONEOK Completes Acquisition of Magellan Midstream.png)
The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/186Blog_Viper Energy Secures $1 Billion in Permian.png)
Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.