How Risks Made Talos Energy to Grow to a Publicly Traded Company
Opportunities are all around us for those willing to take the risk. Big companies have made their fortunes relying not only on specific events but also taking risks that allow them to lock in profits. Profit is the main reason the companies are in business, and they can only be realized by those willing to take those risks. Often many individuals avoid great risks cannot seize the significant opportunities that come with higher risks.
Oil drilling is a risky venture not only in land but more at sea, where the cost of drilling is more expensive. Risk because there is a possibility that the drilled wells could be dry with no oil, after such a substantial investment of more than $200 million in drilling wells offshore.
At 45 Duncan is the chief executive officer of Talos energy, what makes it unique is its ability to take the significant risk of doing that which many companies could consider the chance to invest in. Talos energy went on a merge with Stone energy which is a publicly traded company with high debt. Despite the bankruptcy concerns, Talos went in a merger. The merger turned out to be a phenomenal a deal as the company got publicly traded hence earning the securities exchange that has enabled it to avoid expenses.
Talos energy has taken on in the risk affair of getting in the Mexican gulf which is risky. The risk is heightened by the imminent threats that come with drilling offshore. The chances are expensive to drill and the catastrophic spill possibilities, but it was a chance that needed to be taken. The gamble paid off by having 48000 barrels per day.
Every cloud has a silver lining Talos took on BP Macon well that had been hit by disaster in the deepwater horizon. This saw them be able to harvest more than 4 million that gushed from it all. This points out to the fact that significant risks taken are not to guarantee profits because at times the risks leave you as an investor with lessons learned. However, the chances that get to pay they pay massively. So the chances are worth taking.
Duncan having joined the oil industry as a young engineer in 1996 has seen positive growth attributed to the fact that he has been willing to take high risks that have paid off highly. Being able to take that which many could find to avoid has seen Talos make a tremendous turnover.