S&P puts Talos on positive watch

S&P said it placed its ratings for Talos Energy Inc., including the B+ secured issue rating, on CreditWatch with positive implications.

Talos said it will buy EnVen Energy Corp. for about $1.1 billion, which includes 43.8 million Talos shares, $212.5 million of cash, and the assumption of its debt.

“The CreditWatch placement reflects the likelihood that we will upgrade Talos following the close of its acquisition of EnVen Energy Corp., which we anticipate will occur around year-end 2022. We expect the combined company will become one of the larger pure-play offshore producers with over 200 million barrels of oil equivalent of proved reserves (about 85% developed) and more than 85,000 barrels of oil equivalent per day of production. We also expect the transaction will be financially accretive for Talos,” the agency said in a press release.

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