Talos Energy (TALO) Update - Mar 1
Posted: Tue Mar 01, 2022 8:49 pm
Note for Stifel
Talos Energy Inc. (TALO, $15.71, Buy; Target $25.00)
TALO Enters Another CCS Agreement With Midstream and Storage Solutions - Michael S. Scialla
An option agreement to lease ~13,000 acres from the Port of Corpus Christi Authority for CO2 sequestration along with midstream private Howard Energy is another positive step for TALO's Gulf Coast CCS network. Like the recent River Bend Project with ENLC, the new agreement offers an integrated CCS solution in an area with 20MM metric tons per year of CO2 emissions. The partners plan to sequester 1.0-1.5MM metric tons of CO2 per year in saline aquifers with the potential to expand the project to 6-10 MM tons per year. While TALO's most recent agreements with midstream partners require re-purposing natural gas pipelines to transport CO2, the company has quickly positioned itself to play a significant role in decarbonizing two important industrial regions with significant point source emissions.
CCS = Carbon Capture and Sequestration
Talos Energy Inc. (TALO, $15.71, Buy; Target $25.00)
TALO Enters Another CCS Agreement With Midstream and Storage Solutions - Michael S. Scialla
An option agreement to lease ~13,000 acres from the Port of Corpus Christi Authority for CO2 sequestration along with midstream private Howard Energy is another positive step for TALO's Gulf Coast CCS network. Like the recent River Bend Project with ENLC, the new agreement offers an integrated CCS solution in an area with 20MM metric tons per year of CO2 emissions. The partners plan to sequester 1.0-1.5MM metric tons of CO2 per year in saline aquifers with the potential to expand the project to 6-10 MM tons per year. While TALO's most recent agreements with midstream partners require re-purposing natural gas pipelines to transport CO2, the company has quickly positioned itself to play a significant role in decarbonizing two important industrial regions with significant point source emissions.
CCS = Carbon Capture and Sequestration