HOUSTON, March 18, 2024 /PRNewswire/ -- Talos Energy Inc.
("Talos") (NYSE: TALO) today announced that it has entered into an
agreement for the sale of its wholly owned subsidiary, Talos Low
Carbon Solutions LLC ("TLCS"), to TotalEnergies E&P
USA, Inc. ("TotalEnergies") for a
purchase price of $125 million plus
customary reimbursements, adjustments and retention of cash,
combined totaling approximately $148
million. The transaction was based on an effective date of
January 1, 2024 and will close later
today. Talos intends to use the proceeds from the sale to
immediately repay borrowings under its credit facility and for
general corporate purposes.
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 LLC, Harvest Bend CCS LLC
("Harvest Bend") and Coastal Bend CCS LLC ("Coastal Bend"). 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.
Talos President and Chief
Executive Officer Timothy S. Duncan
stated: "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. 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."
Morgan Stanley & Co. LLC served as financial advisor to
Talos and Latham & Watkins LLP served as legal advisor to
Talos.
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.
INVESTOR RELATIONS CONTACT
investor@talosenergy.com
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This communication may contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements, other than
statements of historical fact included in this communication,
regarding our strategy, future operations, financial position,
estimated revenues and losses, projected costs, prospects, plans
and objectives of management are forward-looking statements. When
used in this communication, the words "will," "could," "believe,"
"anticipate," "intend," "estimate," "expect," "project,"
"forecast," "may," "objective," "plan" and similar expressions are
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forward-looking statements contain such identifying words. These
forward-looking statements are based on our current expectations
and assumptions about future events and are based on currently
available information as to the outcome and timing of future
events.
We caution you that these forward-looking statements are subject
to numerous risks and uncertainties, most of which are difficult to
predict and many of which are beyond our control. These risks
include, but are not limited to, potential adverse reactions or
competitive responses to our acquisitions, dispositions and other
transactions; changes in market conditions affecting the oil and
gas industry or long-term oil and gas price levels; political or
regulatory developments; reservoir performance; the outcome of
future exploration efforts; timely completion of development
projects; technical or operating factors; the uncertainty inherent
in projecting ultimate recoverable resources and future rates of
production and cash flows and access to capital; and the other
risks discussed in our Annual Report on Form 10-K for the year
ended December 31, 2023. Should one
or more of the risks or uncertainties described herein occur, or
should underlying assumptions prove incorrect, our actual results
and plans could differ materially from those expressed in any
forward-looking statements. All forward-looking statements,
expressed or implied, included in this communication are expressly
qualified in their entirety by this cautionary statement. This
cautionary statement should also be considered in connection with
any subsequent written or oral forward-looking statements that we
or persons acting on our behalf may issue. Except as otherwise
required by applicable law, we disclaim any duty to update any
forward-looking statements, all of which are expressly qualified by
the statements in this section, to reflect events or circumstances
after the date of this communication.
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