When Hurricane Harvey hit Houston and the surrounding area, Tim Duncan, CEO of Talos Energy, was in his Kingswood, Texas home as the flood waters around him began to rise. The streets were quickly flooded and impassable, the power was out, and daylight was fading into darkness. To make matters worse, Harvey was about to deliver another 6 feet of floodwaters. Maintaining his composure and keeping a level head, Duncan maneuvered himself and his family through waist-high floodwaters to a waiting FEMA rescue boat. A difficult and frightening situation to be sure, but Duncan knows how to navigate through rough waters.
After retreating to Alabama for a short time, Duncan returned to Houston to stay at his parents home which was safe and dry. He had a big problem to tackle after Harvey. Duncan had been negotiating a merger between his private company Talos Energy and the publicly traded company, Stone Energy. It was a risky venture, to say the least. Stone Energy was bankrupt, but the merger would allow Talos to become publicly traded without the high cost of a public offering. After many days and long hours into the night at his parent’s kitchen table, the deal was done. Headed by Duncan, Talos energy will boast an impressive $900 million in revenue with most of its assets in the Gulf of Mexico.
Despite the company’s low-risk balance sheet of $700 million in debt against 2.3 billion in assets, building and operating drilling platforms in the water pose huge risks, but Talos energy is prepared to take the risks necessary to be a productive leader in offshore drilling. While Stone Energy was a bankrupt company, Talos did inherit a promising piece of real estate. The Pompano platform along with several promising prospects for new drilling were all included in the merger. Duncan along with fellow executives believe the Pompano platform will be a major role player in what Duncan calls “A Developed Deepwater Model” or the ability to “tie back” new discoveries into other platforms located miles away. Talos energy not only focuses on exploration and production of energy resources, it relies on innovative and cutting-edge techniques and skills to locate, acquire, and exploit resources that are normally considered unreachable.