Talos Energy to acquire EnVen Energy for $1.1 billion in cash and stock

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Talos Energy Inc. Talo,
-5.62%
said on Thursday that it would buy privately held EnVen Energy Corp. to acquire $1.1 billion in cash and stock. Under the terms of the deal, EnVen shareholders will receive 43.8 million shares and $212.5 million in cash, with an assumption of approximately $50 million in EnVen’s debt. Once the deal closes, Talos shareholders will own approximately 66% of the pro forma company, while EnVen will own the remaining 34%. The deal is expected to close by the end of the year. Talos expects the move to increase production of 24MBoid. This will increase production by 40% and gross area by 36%. The deal will add $170 million to projected free cash flow in 2022 and generate at least $30 million in annual run-rate synergies in 2023. “The increased cash flow profile will provide us with increased capital allocation optionality, including additional high-impact sub-tie-back opportunities, opportunistic acquisitions, accelerating our low-carbon initiatives and the potential shareholder return of the capital program to Talos in the future.” position,” Talos CEO Timothy S. Duncan said in a statement. Shares of Talos jumped 4% premarket on the news and are up 93% so far in the year, while the S&P 500 SPX,
-0.63%
20% has fallen.

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Credit: www.marketwatch.com /

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