Talos Energy Inc., represented by its abbreviation TALO, has initiated a deal for the divestment of its subsidiary, Talos Low Carbon Solutions LLC. The deal is set with TotalEnergies E&P USA, and it comprises a purchase price of $125 million. In addition to this, the agreement includes standard reimbursements, adjustments, and the retention of cash that cumulatively amounts to roughly $148 million. This transaction entails the complete transfer of Talos's carbon capture and sequestration enterprise.
The company intends to utilize the funds raised from this sale to clear pending loans under its credit facility immediately. It also plans to allot these funds for various general corporate operations. Talos has indicated a possibility of garnering additional cash payments in the future, contingent on the fulfillment of certain objectives at the Harvest Bend or Coastal Bend projects. These additional incomes may also arise following any future sales of these projects by TotalEnergies.
