Talos Energy Divests Its Talos Low Carbon Solutions Subsidiary to TotalEnergies for $148 Million
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Talos Energy has entered into an agreement for the sale of its wholly owned subsidiary, Talos Low Carbon Solutions (TLCS), to TotalEnergies for a purchase price of $125 million plus customary reimbursements, adjustments and retention of cash, combined totaling approximately $148 million.
The sale includes Talos’s entire carbon capture and sequestration (CCS) business, including its three projects along the U.S. Gulf Coast: Bayou Bend CCS, Harvest Bend CCS, and Coastal Bend CCS.
Talos may realize additional future cash payments upon achievement of certain milestones at the Harvest Bend or Coastal Bend projects or upon a subsequent sale of these projects by TotalEnergies.
Robin Fielder, Talos executive vice president, Low Carbon Strategy and Chief Sustainability Officer, will continue to serve in her role for a transition period before leaving Talos to pursue other opportunities.
“Since TLCS’s inception, we have successfully applied our energy expertise as an early mover aimed at developing decarbonization solutions along the U.S. Gulf Coast. Strong market interest during our capital raise provided the strategic option to fully monetize the business to TotalEnergies, an established global leader in CCS development,” said Talos president and chief executive officer Timothy Duncan.
“Robin and our entire CCS team did an outstanding job crystallizing value for Talos shareholders for a strong financial return. The transaction will further enable Talos to prioritize cash flow generation and optimal capital allocation in our core upstream business. We are also continuing to explore business development and strategic M&A opportunities,” added Duncan.
Talos Energy is a technically driven, innovative, independent energy company focused on maximizing long-term value through its upstream exploration & production business in the United States Gulf of Mexico and offshore Mexico. They leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while maintaining a focus on safe and efficient operations, environmental responsibility, and community impact.
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