Shares of Talos Energy Inc. (NYSE: TALO) rose 3.3% in after-hours trade on Tuesday following the company's announcement that it has signed a definitive agreement to acquire deepwater assets in the Gulf of Mexico from Shell Offshore Inc. The transaction is structured as a joint purchase with an affiliate of Ridgewood Energy Corporation, with aggregate cash consideration of $850 million, subject to customary purchase price adjustments.
Talos said its expected net cash outlay will be in the range of $450 million to $500 million. That estimate reflects the buyer's assessment of interim cash flows attributable to the assets for the period beginning on the July 1, 2025 effective date.
Assets and production
The assets being acquired include a 50% working interest, along with operatorship, in the Coulomb field. In addition, the package includes a 25% non-operated working interest in the Na Kika platform, which is operated by BP, and stakes in four associated fields identified as Kepler, Ariel, Fourier, and Herschel.
Talos reported that average production for the first quarter of 2026 from the acquired interests was approximately 16 thousand barrels of oil equivalent per day (boe/d), and that roughly 77% of that output was oil.
Reserves and rights
The transaction will add approximately 23 million barrels of oil equivalent of proved reserves to Talos' portfolio, together with about 10 million barrels of oil equivalent classified as probable reserves. The company noted that the working interests tied to the Na Kika platform and the associated fields are subject to a 30-day preferential right held by affiliates of BP.
Financing and timing
Talos plans to finance the acquisition through a mix of cash on hand and incremental debt. The company has secured $150 million of additional commitments from existing lenders, which will increase its revolving borrowing base from $700 million to $850 million, effective upon closing.
The parties expect the transaction to close by the end of 2026, though completion remains contingent on customary closing conditions, including obtaining regulatory approvals and the expiration of any applicable preferential purchase rights.