Talos Energy Divests Carbon Capture Subsidiary in $148M Deal
Innovative energy company, Talos Energy (NYSE: TALO), will sell its wholly owned subsidiary, Talos Low Carbon Solutions, to TotalEnergies E&P USA 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 business, including its three projects along the US Gulf Coast.
Commenting on the deal, Talos President and Chief Executive Officer Timothy S. Duncan, said, “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. 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.”
Talos says it intends to use the proceeds from the sale to immediately repay borrowings under its credit facility.
About Talos Energy
Talos Energy (NYSE: TALO) 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. We 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. For more information, visit www.talosenergy.com.
