Apollo Global Management LLC, New York, (NYSE: APO) and New York-based energy focused private-equity firm Riverstone Holdings LLC have committed $600 million to Houston-based E&P startup Talos Energy LLC.
Talos will focus on oil and gas opportunities in the Gulf Coast and Gulf of Mexico regions, primarily in shallow water.
Tim Duncan is chief executive and president of the company, and Steve Heitzman, John Parker and John Harrison hold other management positions. The executive management team has more than a decade-long track record of working together to build successful private equity-backed companies including Gryphon Exploration Co. and more recently, Phoenix Exploration Co. LP, a Riverstone portfolio company. Gryphon was formed in late 2000 and sold in August 2005 to Woodside Energy, while Phoenix was formed in April 2006 and sold in August 2011 to a group led by Apache Corp.
Duncan says, "We are fortunate to have such a long-standing, cohesive management team at Talos and we are confident in our ability to create value for our investors by executing a broad range of business development opportunities. We believe with the right professionals and technical approach, the Gulf Coast and Gulf of Mexico continues to be a rewarding basin to acquire assets and use innovative techniques to develop another round of investment opportunities.”
Apollo senior partner Greg Beard says, “We are delighted to partner with the top-notch team at Talos, which has an outstanding track record in the region.”
Riverstone co-founders Pierre Lapeyre and David Leuschen report, “This investment exemplifies Riverstone’s strategy of re-partnering with proven management teams with deep, basin-focused operating expertise. We look forward to repeating the success we had with Phoenix.”
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