Helix To Sell To Talos

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
620MM
Description

Sale of oil & gas unit with GoM assets

Helix Energy Solutions Group Inc. (NYSE: HLX) plans to sell its oil and gas oil and gas unit to Talos Production LLC for about $610 million in cash.

The oil and gas unit to be sold, Energy Resource Technology GOM Inc., is drilling and testing the Wang exploration well. The purchase price could rise to as much as $700 million if the Wang exploration well meets certain targets. If the Wang exploration prospect is unsuccessful, the estimated value of the transaction to Helix is closer to $600 million.
Talos Production LLC is a subsidiary of Talos Energy LLC, a privately-held Houston oil and gas company.

Jefferies & Co. Inc. served as the exclusive financial advisor to Helix in conjunction with the transaction. The transaction has an effective date of Dec. 1, 2012 and is expected to close in the first quarter of 2013.
The divestment of ERT is in line with Helix’s strategy of focusing on providing well Intervention and robotics services. Helix intends to use the proceeds from this transaction to repay debt and to grow into these businesses.

Helix Energy Solutions Group, headquartered in Houston, is an international offshore energy company that provides development solutions and other key life of field services to the energy market as well as to its own oil and gas business unit.

Talos Energy LLC is a private upstream oil and gas company with a focus in the Gulf of Mexico and Gulf Coast. Talos is backed by investment funds affiliated with Apollo Global Management LLC (NYSE: APO), Riverstone Holdings LLC, and Talos management.