Talos Energy Acquires EnVen Energy for $1.1B

Talos Energy, one of the most active oil and gas producers in the Gulf of Mexico, announced Thursday that it is acquiring private operator EnVen Energy for $1.1 billion in a stock-and-cash deal.

The deal, which involves $212.5 million in cash and 43.8 million shares of Talos, will result in a combined company 66 percent owned by Talos shareholders. Reuters reported last July that Talos and EnVen, both headquartered in Houston, were discussing a merger to create a larger footprint in deepwater exploration and take advantage of operational synergies. The deal, which Talos describes as immediately deleveraging, also includes $50 million in EnVen debt, resulting in an estimated year-end net-debt ratio of less than 0.8x. The deal is expected to close during the fourth quarter of 2022.