Talos Energy to sell TLCS to TotalEnergies for $148M

Talos Energy (TALO) announced that it has entered into an agreement for the sale of its wholly owned subsidiary, Talos Low Carbon Solutions, to TotalEnergies E&P USA (TTE) for a purchase price of $125M plus customary reimbursements, adjustments and retention of cash, combined totaling approximately $148M. 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 business, including its three projects along the U.S. Gulf Coast: Bayou Bend CCS LLC, Harvest Bend CCS LLC and Coastal Bend CCS LLC. 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.