Helix Energy Solutions Group Inc. (NYSE: HLX) has closed the previously announced sale of Energy Resource Technology GOM Inc. (ERT), the company’s oil and gas subsidiary, to Talos Production LLC, a wholly owned subsidiary of Talos Energy LLC, a privately held Houston-based oil and gas company.
Ranked by total gross revenue, Houston-based Helix has been noted as one of the top US-based oilfield service and supply companies. The energy company came in at No. 34 in the OGJ150 quarterly ranking in total assets for 2Q12.
The company announced its plan to divest the oil and gas subsidiary in December, noting its strategic shift to focus on providing well intervention and robotics services.
Proceeds from the transaction were approximately $620 million in cash, as well as overriding royalty interests in ERT’s Wang discovery and certain exploration prospects. Jeffries & Company Inc. served as the exclusive financial advisor to Helix in conjunction with the transaction.
A portion of the cash proceeds from the sale of ERT will be used to repay the company’s term loans and revolving credit facility indebtedness as required by the governing credit agreement.
Owen Kratz, president and CEO of Helix, stated that “the sale of ERT is an important milestone in the Company’s previously announced strategic plans to grow its Well Intervention and Robotics businesses.”
Helix Energy Solutions Group, headquartered in Houston, Texas, is an international offshore energy company that provides development solutions and other key life of field services to the energy market.