HOUSTON - Energy company Talos Energy Inc. (NYSE: NYSE:TALO) today confirmed the sale of its carbon capture and sequestration subsidiary, Talos Low Carbon Solutions LLC (TLCS), to TotalEnergies (EPA:TTEF) E&P USA, Inc. for a total consideration of approximately $148 million. The transaction, effective as of January 1, 2024, is set to close later today.
The deal includes the entirety of Talos's carbon capture business, encompassing three Gulf Coast projects: Bayou Bend CCS LLC, Harvest Bend CCS LLC, and Coastal Bend CCS LLC. Talos may receive additional payments based on future milestones or sales related to the Harvest Bend or Coastal Bend projects.
Proceeds from the sale are designated for immediate repayment of borrowings under Talos's credit facility and for general corporate purposes. This strategic move allows Talos to focus on its core Upstream Exploration & Production business.
Talos President and CEO Timothy S. Duncan emphasized the company's success in developing decarbonization solutions and the financial return realized for shareholders through this transaction. He also noted the potential for exploring further business development and strategic mergers and acquisitions.
Robin Fielder, Executive Vice President of Low Carbon Strategy and Chief Sustainability Officer at Talos, will assist with the transition before departing to pursue other opportunities.
Morgan Stanley & Co (NYSE:MS). LLC acted as financial advisor, and Latham & Watkins LLP served as legal advisor to Talos in the transaction. This sale marks a significant shift for Talos, as it divests from its low carbon solutions business to concentrate on its primary operations in the energy sector.
This news is based on a press release statement.
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