Talos Energy Steers Ahead, Built to Withstand Turbulent Times
The oil and gas business can be difficult to navigate — especially in the unchartered waters of a pandemic and economic downturn. That’s why Talos Energy’s founders set out to create a sturdy ship from the outset, one able to weather just about any storm. “We’ve been able to build this company from scratch,” CEO Timothy Duncan said. “And we also built our business culture from the ground up.” When the offshore energy exploration company began seven years ago, five individuals pooled their resources, and raised an additional $600 million of private equity, to form Talos Energy in Houston. Now, there are about 500 employees. The company also evolved from a private startup in 2012 to a publicly traded
company in May 2018. Last year, Talos was the top-performing stock in the energy business based on pricing data from Bloomberg.
Duncan considers having a location in the nation’s energy capital critical to the companies’ success. “Downtown Houston provides us with the most flexibility and the best option for recruiting top talent.”
Staying in the Gulf, while other companies moved back onshore, was also a prudent move for business.
“We’ve always been in the Gulf of Mexico — it fits us and our skillset. We know we can create value where we are — and that we can evolve with the cutting edge technology that is deployed offshore.” Duncan said.
The entrepreneurs not only relied on decades of experience and use of smart technology but also on finding value in redeveloping midlife assets.
“We’ve evolved from shallow to deep water operators,” Duncan said. “We’re always advancing and learning to be more efficient. We’ve embraced taking on a leadership role in the communities where we work and being part of the solution regarding environmental stewardship.” For instance, Talos Energy found one of the largest
discoveries in the shallow water world in 2017 in offshore Mexico, a discovery that could make a positive impact in Mexico for years and allow Talos to be an example of how the private sector can contribute in positive ways in other countries.
Pushing the company forward and pulling value out of their discovered assets and producing assets is key, Duncan said.
Part of the vision behind Talos was developing a culture where employees could excel. “We want our employees to feel like they’re a part of the company, where there is employee ownership and where employees are shareholders,” Duncan said.
The effort paid off. For each year of its existence, Talos has ranked
as a top place in the Houston Chronicle’s annual list. “Our culture has been key to withstanding COVID-19 and a commodity crisis, knowing we are going to work together to figure this out,” Duncan said.
He explained that having employees who believe in the company makes a major difference. Being transparent and open with employees is also a priority.“There are times to focus on opportunity,” Duncan said. “Then, there are years like 2020 that are full of challenges, and we have to
ask what can we accomplish together that protects what we’ve built?”
Whether the market is up or down, he wants employees to share their views.
“We’ve built a culture where ideas matter, where we are always listening,” he said. “If we do that right, it translates to our stakeholders, whether that is investors or members of our community.”
Being in the industry for the long-haul means taking time to protect assets. “Last year was great, but now we have to protect that to be a survivor in this crisis,” Duncan said. In a market of ever-changing oil prices, companies have to know there are always challenges around the corner.
“We want to get stronger and better every year, but if we don’t do it the right way, it can all fall apart,” he said. “We’re nurturing this company so we can move forward safely and responsibly, grow our business in a way our community can be proud of, and to maximize long-term shareholder value.”
“We’ve built a culture where ideas matter, where we are always listening.” Timothy Duncan, CEO of Talos Energy