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Tag: Talos Energy

  • Insider Buying Boosted Investor Confidence In TALO Stock

    Insider Buying Boosted Investor Confidence In TALO Stock

    Talos Energy Inc. (NYSE: TALO) demonstrated remarkable stability in its stock price during the recent trading session, exhibiting a modest increase of 0.95% to settle at $12.73. This positive performance was attributed to a noteworthy insider buying activity, adding a layer of confidence to the market sentiment.

    In a Securities and Exchange Commission (SEC) filing last Friday, it came to light that Control Empresarial de Capital, a 10% owner of Talos (TALO), had acquired nearly 19.66 million company shares. This significant insider investment amounted to approximately $230 million, with shares purchased at a per-share price of $11.70.

    This infusion of capital takes on added significance as Talos recently unveiled its strategic move to acquire QuarterNorth Energy Inc. for $1.29 billion. QuarterNorth, a privately-held U.S. Gulf of Mexico exploration and production company, boasts ownership in several prolific offshore fields. The assets of QuarterNorth are poised to augment Talos’s operational scale, featuring high-quality deepwater assets with a favorable base decline profile and promising future development prospects.

    The transaction, structured with 24.8 million shares of Talos’s common stock and approximately $965 million in cash, has received unanimous approval from the boards of directors of both Talos and QuarterNorth. The deal, which is expected to close by the end of the first quarter of 2024, is pending regulatory clearance and usual closing conditions.

    For Talos, this acquisition represents a critical turning point in the company’s ongoing development into a major offshore exploration and production enterprise. The integration of QuarterNorth’s deepwater portfolio, coupled with valuable operated infrastructure, is expected to broaden Talos’s operational scope and production profile while enhancing margins and cash flow.

    Aligning with Talos’s overarching strategy, which emphasizes leveraging existing infrastructure and complementary acreage, this transaction is poised to accelerate shareholder value creation. The expanded footprint in the U.S. Gulf of Mexico positions Talos to realize meaningful operating synergies.

    The financing structure of the transaction not only expedites de-leveraging but also immediately enhances the company’s credit profile, proving accretive on key metrics. This strategic move positions Talos to consider additional capital return initiatives in the near term, underscoring the company’s commitment to sustained value creation for its shareholders.

  • What Caused Talos (TALO) Stock To Drop In Extended Trades?

    Talos Energy Inc. (TALO) shares were down -5.90% in after-hours trading at $17.55. During the last session, Talos shares closed at $ 18.65, increasing 2.75% or $ 0.5. Over the course of the day, TALO stock fluctuated between $ 18.16 and $ 18.93.

    In the past six months, TALO stock has increased by 132.25%, and the stock has risen by 50.28% in the past three months. TALO stock returns so far this year have been 126.33%.  Even after announcing changes to its reserves-based lending facility, TALO stock fell.

    How did that financing work?

    Talos is a technically-driven publicly traded energy company focused on getting the most out of its operations both in the U.S. and offshore Mexico. Exploration and production of crude oil and natural gas make up upstream operations at TALO, and emissions capture and storage operations comprise downstream operations of the company. Through its joint venture in carbon capture and storage along the Gulf Coast and Gulf of Mexico, TALO is also using its expertise to reduce industrial emissions.

    Talos announced the completion of amendments to its reserves-based lending facility (the “credit facility”), which includes an extension of its maturity date until November 2024.

    • After this amendment, TALO expects to be significantly free cash flow positive by the end of 2021 due to its minimal near-term debt maturities, strong liquidity and anticipated free cash flow.
    • Based on TALO’s liquid-weighted assets, the loan agreement approved $950 million as the borrowing base, reflecting the high quality of its diverse, liquid-weighted portfolio.
    • As a result, the maturity date for the credit facility has been extended from May 2022 to November 2024, or about three and a half years after the amendments were made.
    • TALO currently has $655 million under its credit facility.
    • TALO expects liquid assets of approximately $300 million at June 30, 2021, compared to $465 million on March 31, 2021.
    • The next scheduled redetermination of the borrowing base will occur in November 2021.
    • TALO’s borrowings in accordance with its credit facility are expected to decrease as a result of the supportive commodity price environment.
    • Thus, TALO will increase liquidity and return to pre-pandemic levels of leverage ahead of expectations.

    TALO’s financial strategy:

    Since Dec 2020, Talos (TALO) has raised over $1.3 billion in four separate transactions spanning the entire capital structure as a result of these commitments and maturity extension of its credit facility. By executing these transactions, TALO has strengthened its financial position considerably.

  • Up’s and downs of Oil sector

    Up’s and downs of Oil sector

    As the market pondered the possibility of strengthening New York and London restrictions before a readily accessible vaccine, oil prices increased.

    Since switching earlier between losses and gains, futures ended at a nine-month high. The U.S. began distributing the Covid-19 vaccine and national immunization initiatives in other countries, offering a roadmap for stabilizing oil demand.

    However, price gains remain minimal as reopening plans across the globe are affected by the virus’s spread. In the middle of a new strain of the epidemic, London is growing pandemic controls this week while New York City’s mayor said people should be prepared for a complete lockdown. The Association of Petroleum Exporting Countries, meanwhile, cut forecasts for global fuel demand by 1 million barrels a day in the first quarter of 2021.

    GasLog Partners LP (NYSE:GLOP) shares were trading up 31.18% at $3.45 at the time of writing on Monday.

    GasLog Partners LP (NYSE:GLOP) share price went from a low point around $1.51 to briefly over $16.20 in past 52 weeks, though shares have since pulled back to $3.45. GLOP market cap has remained high, hitting $177.88M at the time of writing, giving it price-to-sales ratio of more than 0.

    If we look at the recent analyst rating GLOP, BTIG Research downgraded coverage on GLOP shares with a Neutral rating and a $3.28 price target, which implies room for -0.17% downside momentum this year.

    Mid-Con Energy Partners LP (MCEP) last closed at $3.78, in a 52-week range of $1.14 to $8.70.

    SandRidge Energy Inc. (SD) stock soar by 10.61% to $3.44 after reporting that it has entered into a definitive agreement for the sale of its North Park Basin assets. The most recent rating by Seaport Global Securities, on June 21, 2017, is at a Neutral.

    Enservco Corporation (AMEX:ENSV) Shares headed rising, higher as much as 5.73%. The most recent rating by Northland Capital, on November 13, 2015, is at an Outperform.

    Renewable Energy Group Inc. (NASDAQ:REGI) rose 4.31% after gaining more than $2.68 on Monday. The company on December 3, 2020 declared changes to the organizational construct of its senior leadership team intended to accelerate the company’s performance as a leader in a rapidly growing industry.

    U.S. Well Services Inc. (USWS) last closed at $0.48, in a 52-week range of $0.23 to $2.02.

    NOW Inc. (DNOW) stock soar by 2.38% to $6.45. The firm has scheduled a conference call to discuss fourth quarter and full-year 2020 earnings on Wednesday, February 17, 2021 at 8:00 am (US Central Time). The most recent rating by Stephens, on October 16, 2020, is at an Equal-weight.

    Ultrapar Participacoes S.A. (NYSE:UGP) Shares headed rising, higher as much as 2.21%. The most recent rating by Morgan Stanley, on June 02, 2020, is at an Overweight.

    ChampionX Corporation (NYSE:CHX) rose 1.08% after gaining more than $0.15 on Monday following the announcement of early tender offer results and extension of early tender premium.

    Oceaneering International Inc. (OII) last closed at $8.25, in a 52-week range of $2.01 to $15.99. Analysts have a consensus price target of $7.48.

    Euronav NV (EURN) stock soar by 0.61% to $8.25. The most recent rating by BTIG Research, on October 21, 2020, is at a Neutral.

    TransAtlantic Petroleum Ltd. (AMEX:TAT) Shares headed rising, higher as much as 0.60%. On November 20, 2020, the company released its financial results for the quarter ended September 30, 2020. The most recent rating by TD Securities, on September 09, 2016, is at a Speculative buy.

    Pacific Ethanol Inc. (NASDAQ:PEIX) rose 0.17% after gaining more than $0.01 on Monday. The firm declared on December 1, 2020, the closing of its agreement with Liberty Basin, LLC to sell 134 acres, rail loop and grain handling assets at its Pacific Ethanol Magic Valley plant in Burley, Idaho for $10 million in cash.

    Talos Energy Inc. (TALO) last closed at $9.21, in a 52-week range of $5.00 to $31.34 after declaring proposed offering of $400 million of second-priority senior secured notes due 2026. Analysts have a consensus price target of $13.17.

    Valvoline Inc. (VVV) stock drop by -0.17% to $23.01. The most recent rating by JP Morgan, on August 05, 2020, is at an Overweight. The company on December 2, 2020 reported that it plans to acquire 27 quick-lube locations that will expand its service center network across the U.S.

  • That’s why Talos Energy Inc. (TALO) stock nose-dived in the Premarket trading session

    That’s why Talos Energy Inc. (TALO) stock nose-dived in the Premarket trading session

    Talos Energy Inc. (NYSE: TALO) stock dropped -16.75% to $8.75 in the pre-market session after it recently confirmed that it has priced its subscribed public offering of the Company’s 8,250,000 common stock shares for anticipated net revenue of $73,425,000 before relevant fees and expenses.

    Also, the Company issued an option to the underwriter to buy up to an additional 1,237,500 shares of common stock.

    The Organization plans to use the Sale’s net proceeds to support its general funding plan and repay part of its remaining borrowings under its reserve-based loan facility and general corporate purposes. The Offering is scheduled to close on 11 December 2020.

    The primary underwriter for the Deal is BMO Capital Markets Corp. The securities can from time – to – time, be offered for sale by the underwriter in one or more transactions on the New York Stock Exchange, on the over-the-counter market, through negotiated transactions, or either at prevailing market rates at the moment of sale, at prevailing market prices or negotiated prices.

  • Early Morning Vibes: 3 Best Performing Stocks Under

    Early Morning Vibes: 3 Best Performing Stocks Under $3

    On December 8, American stock exchanges closed at historic highs. The S&P 500 Index climbed 0.28% to 3702 points, the Dow Jones added 0.35%, the NASDAQ rose 0.5%. The purchases spurred hope for fiscal stimulus, as well as the start of the UK vaccine distribution. The health and energy sectors were the top gains, rising 0.73% and 1.57%, respectively. The real estate segment turned out to be an outsider, losing 0.5%.

    Corporate news

    Tesla (TSLA: + 1.3%) announced a $ 5 billion additional share issue.

    Productivity software maker Smartsheet (SMAR: + 11%) reported strong quarterly results and improved management forecasts.

    Apparel retailer Stitch Fix (SFIX: + 39%) posted a good quarterly report, with a pleasant surprise for investors the company’s profit at a consensus loss.

    Today, world stock markets are showing mostly positive dynamics. The likelihood of accepting an economic aid package is increasing. The day before, Treasury Secretary Stephen Mnuchin presented House Speaker Nancy Pelosi a $ 916 billion economic support bill. Unlike the bipartisan stimulus package last week, the bill provides for a one-time payment of $ 600 to each citizen instead of $ 300 weekly in addition to the unemployment. Republican leaders have already expressed support for Mnuchin’s bill. We believe that the congressmen have not yet been so close to a compromise in the past few months, and this is encouraging.

    Another supportive factor was a report released by the FDA that the Pfizer / BioNTech anticancer vaccine is completely safe and highly effective. The probability of its approval on December 10 is close to 100%, and on the 11th, the distribution of the drug in the United States may begin. We estimate the risk that the pharmaceutical giant will face difficulties in mass production of the vaccine as minimal, although not zero.

    Today Top Movers Under $3

    Cinedigm Corp (CIDM) is up 50.35% at $1.30 in early morning on Wednesday after

    Spherex revealed a strategic alliance with Cinedigm (NASDAQ: CIDM) to drive Cinedigm’s global growth.

    Usio Inc (USIO) is up 38.80% in Wednesday’s premarket session after reporting that it has entered into a non-binding Letter of Intent (LOI) to acquire the assets of Information Management Solutions, LLC (IMS).

    Recon Technology Ltd (RCON) was taking the aerial route in the after-market session as it surged 95.8% to $2.82, after a China-based independent solutions integrator in the oilfield service and environmental protection, electric power, and coal chemical industries, today announced its financial results for the fiscal year 2020.

    Top Upgrades & Downgrades

    JP Morgan turned bullish on Array Technologies Inc. (ARRY), upgrading the stock to “Overweight” and assigning a $41.0 price target.

    Community Trust Bancorp Inc. (CTBI) has won the favor of Piper Sandler’s equity research team. The firm upgraded the shares from Neutral to Overweight.

    Earlier Wednesday JP Morgan reduced its rating on Bloom Energy Corporation (BE) stock to Neutral from Overweight and assigned the price target to $26.0. With shares trading at around $30.59, the Wall Street firm thinks Bloom Energy Corporation’s stock could decline more than -62.5%.

    DZ Bank analysts reduced their investment ratings, saying in research reports covered by the media that its rating for American Express Company (AXP) has been changed to Hold from Buy and the new price target is set at $128.0.

    Analysts at KeyBanc downgraded Talos Energy Inc. (TALO)‘s stock to Sector Weight from Overweight Wednesday.

    Latest Insider Activity

    Freeport-McMoRan Inc. (FCX) Vice Chairman, President & CEO ADKERSON RICHARD C announced the sale of shares taking place on Dec 04 at $25.17 for some 467,887 shares. The total came to more than $11.78 million.

    Discovery Inc. (DISCA) Director LOWE KENNETH W sold on Dec 04 a total 1,202,403 shares at $25.22 on average. The insider’s sale generated proceeds of almost $2.32 million.

    Regulus Therapeutics Inc. (RGLS) 10% Owner Sonsini Peter W. declared the purchase of shares taking place on Dec 04 at $0.62 for some 4,398,602 shares. The transaction amount was around $2.74 million.

    Hepion Pharmaceuticals Inc. (HEPA) CEO and Director Foster Robert T bought on Dec 08 a total 25,259 shares at $1.58 on average. The purchase cost the insider an estimated $39,418.

    Earnings To Watch Today

    Top US earnings releases scheduled for today include Asana Inc. (NYSE:ASAN). It will announce its Oct 2020 financial results. The company is expected to report earnings of -$0.37 per share from revenues of $54.14M in the three-month period.

    Analysts expect Mesa Air Group Inc. (NASDAQ:MESA) to report a net income (adjusted) of -$0.02 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Sep 2020 is predicted to come in at $92.95M.

    Adobe Inc. (ADBE), due to announce earnings after the market closes today, is expected to report earnings of $2.66 per share from revenues of $3.36B recently concluded three-month period.