History
Talos Energy was formed in 2018 by merging Stone Energy with a sponsor-backed private firm, then grew through serial Gulf of Mexico acquisitions funded by debt and new shares.
2017-2019: A merger and a Mexican bet
Talos Energy, Inc. began on paper in December 2017, when a new holding company filed to combine bankruptcy-emerged Stone Energy Corporation with privately held Talos Energy LLC, which was backed by Apollo and Riverstone. Stone shareholders were to own 37% of the result and Talos's private owners 63%. The merger closed on May 10, 2018. A ten-member board was split between Apollo and Riverstone nominees and management, and a new $600 million JPMorgan-led credit facility replaced Stone's old debt. Most of Stone's notes were tendered into an exchange offer. Shares on issue rose from about 31.2 million at the end of 2017 to about 54.2 million a year later.
In January 2019 Talos forecast positive free cash flow and production of 53-56 thousand barrels of oil equivalent a day. It highlighted the Zama discovery offshore Mexico, and CEO Timothy Duncan targeted first production by the end of 2022. In May 2019 Talos and partner Hokchi Energy signed a 30-year production-sharing contract for Block 31, giving Talos a 25% non-operated interest. In July the credit facility grew to $850 million.
2020-2021: Related-party deals and a pandemic squeeze
In March 2020 Talos closed a $385 million cash-and-preferred-stock purchase of Gulf of Mexico assets from ILX Holdings and Castex Energy entities. The sellers were affiliated with Riverstone, so it was disclosed as a related-party deal. The 110,000 preferred shares were to convert into about 11 million common shares.
In June 2020 Talos agreed to buy more properties from Castex Energy 2005 affiliates, paying partly with about 4.95 million new shares. The same day its lenders cut the borrowing base from $1.15 billion to $985 million, raised interest margins by 0.25% and added hedging and anti-cash-hoarding terms. Shares on issue reached about 81.3 million by the end of 2020.
In January 2021 Talos issued $650 million of 12.00% second-priority notes due 2026 and used the money to pay down its revolving credit facility. By June it had extended the facility to November 2024 and had its borrowing base set at $950 million.
2022-2023: Sponsors step back, EnVen arrives
In March 2022 Apollo's three board designees resigned and its governance rights under the 2018 Stockholders Agreement ended. In September Talos announced a $1.1 billion deal for EnVen Energy, a deepwater Gulf operator, paying 43.8 million shares plus $212.5 million in cash. EnVen holders would own about 34% of the combined company. Management said it would add about 24,000 barrels a day and $30 million of annual synergies. The share issue was large enough to need a shareholder vote. Riverstone affiliates, with about 15% of the votes, agreed to vote in favour. In December the borrowing base was raised from $1.1 billion to $1.5 billion.
The deal closed on February 13, 2023, with Talos also assuming $257.5 million of EnVen's 11.75% notes. The board was declassified, Riverstone's director Robert Tichio resigned, and two EnVen directors joined an eight-member board. This was the end of the sponsor-controlled board. Shares on issue rose to about 124 million by year end.
2024-2026: QuarterNorth, a quieter filing record and refinancing
In January 2024 Talos announced a $1.29 billion purchase of QuarterNorth Energy, paid in shares plus about $965 million in cash. It was to add about 30,000 barrels a day and 69 million barrels of proved reserves. To help fund the cash, Talos sold 34.5 million new shares. It also issued new senior notes to redeem both the 12.00% notes and the assumed 11.75% notes. The deal closed on March 4, 2024, with 24.35 million shares issued and about $1.27 billion paid in cash, and QuarterNorth's Joseph Mills joined a nine-member board. Shares on issue were about 180 million at the end of 2024.
Later in 2024 the record turns to listing and registration notices. In October the exchange certified the securities for listing. In December it filed to remove a class of securities, and Talos deregistered its securities, ending its obligation to file SEC reports. The beats do not explain these steps further.
Lenders also tightened credit. In December 2024 the borrowing base fell from $1.5 billion to $925 million, and in August 2025 to $700 million. In January 2026 Talos replaced its 2018 credit agreement with an amended one at $700 million, maturing January 2030.
In June 2026 Talos agreed with a Ridgewood Energy affiliate to buy Shell Offshore's Na Kika and Coulomb assets for $1.7 billion, with Talos paying about $850 million for a 50% share. It would operate Coulomb and take 25% of Na Kika, subject to BP's right to buy that piece itself. In July it issued $800 million of 8.000% notes due 2034, using part of the proceeds to redeem its 9.000% notes and the rest to help fund the deal. On July 27 it took a 50% interest in Repsol's Block 29 offshore Mexico, with a contingent $30 million payment at final investment decision and a $20 million well-cost carry. As of that date, the Shell purchase was pending and the Block 29 payment had not been triggered.
Written from the 31 story beats below (2017 to 27 July 2026), which come from the company's own announcements and filings.