Talos Energy Inc said this week it would buy privately held QuarterNorth Energy in a cash and stock deal valued at $1.29 billion.
Talos said it expected the acquisition to improve its base decline rate by about 20%.
The acquisition is expected to add about 30,000 barrels of oil equivalent per day (Mboe/d) for the full year 2024 and about 69 million barrels of oil equivalent (MMBoe) in proved reserves.
QuarterNorth Energy is to receive 24.8 million shares of Talos Energy Inc’s common stock and about $965 million in cash.
The transaction is expected to close by the end of the first quarter.
“The addition of QuarterNorth’s overlapping deepwater portfolio with valuable operated infrastructure will increase Talos’s operational breadth and production profile while enhancing our margins and cash flow,” Talos Energy’s Chief Executive Officer Timothy Duncan was quoted as saying by Reuters.
Talos said it expected annual run-rate synergies of nearly $50 million by year-end 2024.
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