Talos Energy Inc. TALO and partner Carbonvert Inc. have been awarded the lease on a carbon capture and storage (“CCS”) project on the Gulf Coast region of Texas.
The companies were selected as the sole winning bidders among 12 submissions by the Texas School Land Board for the Texas General Land Office’s (GLO) CCS project.
The project site, which covers an area of more than 40,000 gross acres, is situated offshore Texas state waters in the U.S. Gulf of Mexico. The site is fully covered by Talos Energy’s existing seismic database and lies in the vicinity of a large concentration of industrial emitters across the Texas and Louisiana Gulf Coast.
On the basis of Talos Energy's preliminary insights into the rock and fluid properties of the project’s saline reservoirs, the company expects to sequester 225-275 million tons of carbon dioxide from industrial activities in the area. Notably, Talos Energy will be the operator of the project.
In the next stage, Talos Energy and Carbonvert will negotiate a lease agreement with the GLO staff on the terms of the Talos Energy bid and the initial request for proposal from the GLO. Final terms are subject to the approval of the Texas School Land Board.
Oil and gas companies are getting actively involved in CCS-related projects as it offers a transition pathway for the rapid and effective reduction of CO2 emissions beyond what can be achieved by alternative methods like electrification and renewable fuels. Hence, U.S. government officials provided support for such projects as they are crucial to meeting climate targets.
With the latest award, the companies are well-positioned to be among the first independent U.S. energy companies with an identified site involved in carbon sequestration. In June, Talos Energy announced another partnership with clean energy player Storegga Geotechnologies to develop CCS project opportunities along the US Gulf Coast.
Company Profile & Price Performance
Headquartered in Houston, TX, Talos Energy is a leading upstream company, which engages in the exploration, development, and production of oil and natural gas properties.
Shares of the company have underperformed the industry in the past six months. Its stock has gained 5.6% compared with the industry’s 13.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently has a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are RPC, Inc. RES, Cheniere Energy, Inc. LNG and Earthstone Energy, Inc. ESTE, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.
RPC’s earnings for 2021 are expected to surge 511.1% year over year.
Cheniere’s earnings for 2021 are expected to surge 126.3% year over year.
Earthstone’s earnings for 2021 are expected to increase 40.6% year over year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cheniere Energy, Inc. (LNG): Free Stock Analysis Report
RPC, Inc. (RES): Free Stock Analysis Report
Earthstone Energy, Inc. (ESTE): Free Stock Analysis Report
Talos Energy Inc. (TALO): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.