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Texas Oil Co. Sells CCS for US$148 Million Cash
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Talos Energy, Inc. recently announced the sale of its entire carbon capture and storage (CCS) business for a total of US$148 million in cash, according to a Roth MKM research note.

Talos Energy Inc. (TALO:NYSE) recently announced the sale of its entire carbon capture and storage (CCS) business for a total of US$148 million in cash, which includes reimbursements and adjustments, noted Roth MKM analyst Leo Mariani in a March 18 research note. 

According to the report, this equates to approximately US$0.80 per share. The company plans to use the proceeds to pay off borrowings under its credit facility.

Additionally, Talos may realize future cash payments upon the achievement of certain milestones at the Harvest Bend or Coastal Bend CCS projects.

Mariani noted, "We think the market may be slightly disappointed in the sale price." 

Still, Mariani pointed out the company's improving balance sheet, high oil cut, low production declines, below-average valuation, and material potential upside from its carbon capture business when discussing his valuation of the company.

Mariani gave Talos a Buy rating and a US$17 target price. 

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  1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Roth MKM, Talos Energy Inc., March 18, 2024

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures: The price target and rating history for Talos Energy, Inc. prior to February 1, 2023 reflect MKM’s published opinion prior to the acquisition of MKM Partners, LLC by Roth Capital Partners, LLC. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Talos Energy, Inc.. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for Talos Energy, Inc.

Not Covered [NC]: ROTH MKM does not publish research or have an opinion about this security.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.

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