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Talos Energy (NYSE: HOME) +3.3% in premarket trading Monday after saying it had agreed to sell its subsidiary Talos Low Carbon Solutions to TotalEnergies (TTE) for $148 million in cash.
Talos (TALO) said the sale includes its entire carbon capture and sequestration business, including its three projects along the Gulf Coast of the United States: Bayou Bend, Harvest Bend, and Coastal Bend.
The company said it may make additional future cash payments upon the achievement of certain milestones at the Harvest Bend or Coastal Bend projects or the subsequent sale of the projects by TotalEnergies (TTE).
“The transaction will also allow Talos to prioritize cash flow generation and optimal capital allocation in our core Upstream business,” said President and CEO Timothy Duncan.