Talos Energy to buy QuarterNorth Energy in $1.29B cash and stock deal (NYSE:TALO)
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Talos Energy (NYSE:TALO) said Monday it agreed to acquire privately-held Gulf of Mexico exploration and production company QuarterNorth Energy for 24.8M common shares and ~$965M in cash.
QuarterNorth’s producing assets include six major fields and are ~95% operated and 95% in deepwater; the deal will add production of ~30K boe/day expected for FY 2024, averaging 75% oil.
Talos (TALO) expects run-rate synergies of ~$50M/year to be achieved by year-end 2024.
QuarterNorth’s assets bring significant reserves upside beyond current production from both producing probable zones and near-term development opportunities in 2024 and 2025, Talos (TALO) said.
The company said it secured $650M in bridge financing from a syndicate of banks representing most of the company’s reserves-based loan lender group.
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