Report: Talos Energy in talks to buy EnVen Energy

Aug. 1, 2022
The acquisition would be for $1 billion plus debt.

Offshore staff

HOUSTONTalos Energy Inc. is in talks to acquire Bain Capital-controlled EnVen Energy for about $1 billion plus debt, according to a Reuters report.

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.

Talks between Talos Energy and EnVen Energy have reportedly reached an advanced stage, and a deal would see Talos buy EnVen using either mostly or all stock, according to the Reuters report. The deal value is expected to be higher after including EnVen’s debt, which stood at $288 million at the end of 2021, according to a March presentation on EnVen’s website.

The sources in the Reuters report requested anonymity as the discussions are confidential, and cautioned that the deal talks could still end without an agreement.

Talos Chief Executive Tim Duncan said in May that his company was looking for acquisition targets in the US Gulf of Mexico, to boost its production profile. Those targets could become increasingly available as major oil companies look to decarbonize, Duncan observed. "The majors are going to decarbonize and we want to be available for the right M&A deal at the right spot," Duncan was quoted by Reuters to say.

"We're a natural consolidator, particularly when you think about the Gulf of Mexico," he said. Duncan was also reported to say that Talos would look at opportunities around Brazil and West Africa.

Formed just a decade ago, Talos has become one of the largest offshore oil and gas operators in the Gulf of Mexico through roughly a dozen mergers and acquisitions. The company also is expanding through carbon capture and sequestration facilities along the US Gulf Coast.