Talos Energy (TALO) Update - Feb 6

[dan_s]

Talos Energy Provides Updates On Pending Acquisitions And U.S. Gulf Of Mexico Operations
Press Release: https://finance.yahoo.com/news/talos-en ... 00488.html

Summary:
> Majority of the shareholders have approved the acquisition.
> If the SEC does not review the filing, Talos expects to close the Transaction on or before March 16, 2020.
> Upon closing of the Acquisition, the Company will issue 11.0 million shares of Talos's common stock to the sellers and pay the cash consideration. The cash consideration of $385.0 million will be reduced at closing by the approximately $31.8 million deposit paid into escrow upon the signing of the definitive agreements. The cash consideration will be further reduced at closing by the cash flow generated by the Acquired Assets between the July 1, 2019 effective date of the Acquisition and the closing date.
> Production Update: Based on preliminary seller estimates, production from the Acquired Assets in the fourth quarter of 2019 was approximately 1.1 million barrels ("MMBbl") of oil, 0.1 MMBbl of NGLs and 3.1 billion cubic feet ("Bcf") of natural gas, representing approximately 18.6 thousand barrels of oil equivalent per day ("MBoe/d").

I am updating my forecast/valuation model for Talos now and it will be posted to the EPG website this evening.