Talos has posted an updated investor presentation to their website. Their objectives for 2024 on slide 5 match up to my forecast.
If you go to my forecast model on the EPG website you can find the PV10 Net Asset Value of $28.03/share, which does not include the assets they acquired from QuarterNorth on March 4th.
Timing is good on this one because Talos is going to report SIGNIFICANT production increases in Q1 and Q2 this year thanks to the acquisition and the strong well results at Lime Rock and Venice.
Slide 10: They monetized their CCS business for $148 million and contingent future payments. There is nothing in my current valuation for this.
Slide 19 shows details of the QuarterNorth Acquisition. Talos current production is close to 100,000 Boepd (~71% crude oil + 8% NGLs)
Slide 42 is an update on the development of Zama (offshore Mexico) and shows the importance of Carlos Slim's ownership in the project and equity ownership in Talos.
Full slide deck can be found here: https://www.talosenergy.com/home/default.aspx
Talos Energy (TALO) Update - Mar 18
Talos Energy (TALO) Update - Mar 18
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Talos Energy (TALO) Update - Mar 18
Good stuff. Are they out of the carbon capture business now? Time to get Dan Duncan back for an EPG luncheon.
Re: Talos Energy (TALO) Update - Mar 18
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."
This appears to add $1 per share to stock value. $$$Cash
I am very happy they have exited this experiment realizing significant value. With the likely prospect of the Obiden/Granholm feckless energy policies exiting the stage in less than a year, I would have to agree with Carlos Slim that this one has very positive regulatory landscape on the horizon and is set up very nicely moving forward.
The sale includes Talos's entire carbon capture and sequestration ("CCS") business, including its three projects along the U.S. Gulf Coast: Bayou Bend CCS LLC, Harvest Bend CCS LLC ("Harvest Bend") and Coastal Bend CCS LLC ("Coastal Bend"). Talos may realize additional future cash payments upon achievement of certain milestones at the Harvest Bend or Coastal Bend projects or upon a subsequent sale of these projects by TotalEnergies. Robin Fielder, Talos Executive Vice President, Low Carbon Strategy and Chief Sustainability Officer, will continue to serve in her role for a transition period before leaving Talos to pursue other opportunities.
Talos President and Chief Executive Officer Timothy S. Duncan stated: "Since TLCS's inception, we have successfully applied our energy expertise as an early mover aimed at developing decarbonization solutions along the U.S. Gulf Coast. Strong market interest during our capital raise provided the strategic option to fully monetize the business to TotalEnergies, an established global leader in CCS development. Robin and our entire CCS team did an outstanding job crystallizing value for Talos shareholders for a strong financial return. The transaction will further enable Talos to prioritize cash flow generation and optimal capital allocation in our core Upstream business. We are also continuing to explore business development and strategic M&A opportunities."
This appears to add $1 per share to stock value. $$$Cash
I am very happy they have exited this experiment realizing significant value. With the likely prospect of the Obiden/Granholm feckless energy policies exiting the stage in less than a year, I would have to agree with Carlos Slim that this one has very positive regulatory landscape on the horizon and is set up very nicely moving forward.
Re: Talos Energy (TALO) Update - Mar 18
Glad to see this. I think the CCS business was a distraction for the company.
I will call Tim to see if I can get him to host a Houston luncheon for us.
We have the U.S. Energy Development luncheon this week on March 28 and InPlay Oil hosting a luncheon on April 23.
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March 18 (Reuters) - U.S. oil and gas producer Talos Energy said on Monday it will sell its carbon capture and sequestration unit to French firm TotalEnergies for about $148 million.
The sale, expected to close later in the day, includes its three projects along the U.S. Gulf Coast.
Talos intends to use the proceeds from the sale to immediately repay borrowings under its credit facility and other corporate purposes, it said in a statement.
Talos is entitled to additional future cash payments upon achievement of certain milestones or upon a subsequent sale of these projects by TotalEnergies, it said.
"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," CEO Timothy Duncan said.
I will call Tim to see if I can get him to host a Houston luncheon for us.
We have the U.S. Energy Development luncheon this week on March 28 and InPlay Oil hosting a luncheon on April 23.
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March 18 (Reuters) - U.S. oil and gas producer Talos Energy said on Monday it will sell its carbon capture and sequestration unit to French firm TotalEnergies for about $148 million.
The sale, expected to close later in the day, includes its three projects along the U.S. Gulf Coast.
Talos intends to use the proceeds from the sale to immediately repay borrowings under its credit facility and other corporate purposes, it said in a statement.
Talos is entitled to additional future cash payments upon achievement of certain milestones or upon a subsequent sale of these projects by TotalEnergies, it said.
"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," CEO Timothy Duncan said.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group