Yahoo Finance Talos (TALO) Continues Merger Discussions With Harbour Energy
Talos Energy Inc. (TALO) is in merger discussions with Harbour Energy, Britain's largest North Sea oil and gas company, per media reports. Specific details of the anticipated deal could not be obtained.
In response to Britain's decision to levy a windfall tax on oil and gas producers last year (following a spike in energy prices), CEO Linda Cook decided to reduce North Sea spending and diversify Harbour Energy's activities internationally. This move will provide Harbour Energy with an opportunity to list in New York and gain access to banks and investors who specialize in the oil and gas industry.
According to Talos, the Gulf of Mexico is expected to produce up to 71,000 barrels of oil equivalent per day (boed) in 2023.
Both TALO and Harbour Energy have a share in the Zama oil project, located off the coast of Mexico. This establishes the partnership between the two companies.
Talos has been looking for expansion in conventional oil and gas, as well as carbon capture and sequestration. Harbour Energy is in the process of drastically decreasing its personnel in Britain by about 350 (out of a global workforce of 1,700).
While the corporations have been in intermittent dialogue for at least the past six months, the recent weeks have seen a resurgence in communication.
Zacks Rank & Key Picks
Currently, Talos has a Zack Rank #5 (Strong Sell).
Some better-ranked stocks for investors interested in the energy sector are Sunoco LP SUN, Eni SpA E and RGC Resources Inc. RGCO. While Sunoco sports a Zacks Rank #1 (Strong Buy), both RGC Resources and Eni carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flows. For this year, SUN has witnessed an upward earnings estimate revision in the past 30 days.
Eni SpA is a leading integrated energy major, which operates primarily through three business segments —Exploration & Production (E&P), Gas & Power, and Refining & Marketing and Chemicals. E has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries —Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas. For this year, the company has witnessed an upward earnings estimate revision in the past 30 days.
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