M&A moves

Houston energy company makes strategic acquisition in $1.29B deal

Talos, a technology-based energy company that aims to work towards low-carbon solutions, acquired QuarterNorth Energy Inc. Photo via talosenergy.com

Houston-based Talos Energy Inc. announced a $1.29 billion acquisition this month.

Talos, a technology-based energy company that aims to work towards low-carbon solutions, acquired QuarterNorth Energy Inc., which has ownership in several big offshore fields, and is a privately-held U.S. Gulf of Mexico exploration and production company. The acquisition of the assets are expected to provide additional scale from high quality deepwater assets “with a favorable base decline profile along with attractive future development opportunities” from QuarterNorth.

QuarterNorth's assets include six major fields and are 95 percent operated and 95 percent in deepwater. The deal will add production of around 30,000 barrels of oil equivalent per day expected for 2024, which will average 75 percent oil.Talos will now expect run-rate synergies of about $50 million a year to be by end of 2024.

QuarterNorth's assets will bring ”significant reserves upside beyond current production from both producing probable zones and near-term development opportunities in 2024 and 2025” according to Talos.

“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 President and CEO Timothy S. Duncan says in a news release. “This transaction aligns with Talos's overall strategy of leveraging existing infrastructure and complementary acreage to accelerate shareholder value creation. The pro forma footprint in the U.S. Gulf of Mexico should allow us to capture meaningful operating synergies.”

Talos secured $650 million in bridge financing from a syndicate of banks representing the majority sum of the company's reserves-based loan lender group.

“The expected financing structure of the transaction accelerates de-leveraging, immediately improves our credit profile, is accretive on key metrics, and positions us to consider additional capital return initiatives following deleveraging in the near term,” Duncan adds. “We look forward to completing this transaction in the next few months and continuing our strategy of building a large-scale, diverse energy company."

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A View From HETI

Lawson Gow, founder of The Cannon, will lead Greentown Houston. Photo courtesy Greentown Labs.

Greentown Labs has named Lawson Gow as its Head of Houston.

Gow is the founder of The Cannon, a coworking space with seven locations in the Houston area, with additional partner spaces. He also recently served as managing partner at Houston-based investment and advisory firm Helium Capital. Gow is the son of David Gow, founder of Energy Capital's parent company, Gow Media.

According to Greentown, Gow will "enhance the founder experience, cultivate strategic partnerships, and accelerate climatetech solutions" in his new role.

“I couldn’t be more excited to join Greentown at this critical moment for the energy transition,” Gow said in a news release. “Greentown has a fantastic track record of supporting entrepreneurs in Houston, Boston, and beyond, and I am eager to keep advancing our mission in the energy transition capital of the world.”

Gow has also held analyst, strategy and advising roles since graduating from Rice University.

“We are thrilled to welcome Lawson to our leadership team,” Georgina Campbell Flatter, CEO of Greentown Labs, added in the release. “Lawson has spent his career building community and championing entrepreneurs, and we look forward to him deepening Greentown’s support of climate and energy startups as our Head of Houston.”

Gow is the latest addition to a series of new hires at Greentown Labs following a leadership shakeup.

Flatter was named as the organization's new CEO in February, replacing Kevin Dutt, Greentown’s interim CEO, who replaced Kevin Knobloch after he announced that he would step down in July 2024 after less than a year in the role.

Greentown also named Naheed Malik its new CFO in January.

Timmeko Moore Love was named the first Houston general manager and senior vice president of Greentown Labs. According to LinkedIn, she left the role in January.

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