Fossil Energy – Acquisition
Talos Energy announced the execution of definitive agreements to acquire QuarterNorth Energy for $1.29 billion.
QuarterNorth is a privately-held U.S. Gulf of Mexico exploration and production company with ownership in several prolific offshore fields. QuarterNorth’s assets will provide additional scale from high quality deepwater assets with a favorable base decline profile along with attractive future development opportunities.
The Transaction is immediately accretive to Talos shareholders on key metrics and is expected to accelerate de-leveraging of Talos’s balance sheet.
Consideration for the Transaction consists of 24.8 million shares of Talos’s common stock and approximately $965 million in cash. The board of directors of both Talos and QuarterNorth have unanimously approved the Transaction.
The Transaction is expected to close by the end of the first quarter of 2024, subject to certain customary closing conditions and regulatory approvals.
