How do you feel if Talos did this? Sometimes these names get hammered when they issue stock. ESTE comes to mind.
https://www.reuters.com/markets/deals/e ... 022-07-29/
Talos Energy Inc (TALO.N) is in talks to acquire Bain Capital-controlled EnVen Energy for about $1 billion and also take on the debt of the U.S. Gulf of Mexico operator, according to people familiar with the matter.
The deal would be among the most significant in recent years in the Gulf, creating a bigger company that would be better placed to take advantage of higher oil prices.
https://www.enven.com/docs/March%202022 ... tation.pdf
Talos 1 b asset buy
Re: Talos 1 b asset buy
I'm not so sure they've demonstrated the best judgement over the last 2 years. Their Management make me nervous, in spite of their assets, as they seemed to be caught flat footed by the Mexican Government. Who's to say Biden doesn't take a whack at them with some stupid new reg..
Re: Talos 1 b asset buy
Geopolitical Risk (Mexico) is always out there and hard to control, but there is big potential offshore Mexico.
Acquisitions and Mergers are also risky but can be quite rewarding.
Talos has a first-class management team. They survived the pandemic and the crap from Mexico. They increased production in 2020 (+5.3%) and 2021 (+17.9%). Operating cash flow in 2022 ($786 million) is on pace to be double what it was in 2021 ($393 million). They are FCF positive and PV10 Net Asset Value should be over $4.5 Billion at 12-31-2022 (over $54/share).
My job is to find profitable, FCF positive companies with lots of "running room". Your job is to decide which ones you want to invest in.
Acquisitions and Mergers are also risky but can be quite rewarding.
Talos has a first-class management team. They survived the pandemic and the crap from Mexico. They increased production in 2020 (+5.3%) and 2021 (+17.9%). Operating cash flow in 2022 ($786 million) is on pace to be double what it was in 2021 ($393 million). They are FCF positive and PV10 Net Asset Value should be over $4.5 Billion at 12-31-2022 (over $54/share).
My job is to find profitable, FCF positive companies with lots of "running room". Your job is to decide which ones you want to invest in.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Talos 1 b asset buy
I agree with both of you.