Helix Energy Solutions Group, Inc. (HLX - Free Report) , an offshore energy services company, entered into a five-year joint framework agreement with Talos Energy, Inc. (TALO - Free Report) for the latter’s decommissioning requirements in the U.S. Gulf of Mexico. Per the terms of the agreement, Talos has granted Helix the first right of refusal related to specific annual work scopes for the former’s decommissioning projects.
Helix will provide decommissioning services, for offshore wells and infrastructure, primarily on the U.S. Gulf of Mexico (GoM) Shelf. The agreement also mentions a base pricing structure and processes for determining and scheduling specific projects on the basis of Talos’ requirements. The work is expected to begin in the second quarter of 2024.
The project has been awarded to Helix Alliance, Helix’s Louisiana-based subsidiary. The scope of work involves normal course abandonment of Talos’ offshore wells, pipelines and platforms, primarily on the GoM shelf. Throughout the campaign, Helix Alliance plans to use derrick barges for structure removals, lift boats for plug and abandonment activities, and dive support vessels for pipeline abandonments. The subsidiary also intends to use multiple offshore supply vessels and several other Helix Alliance assets during the campaign.
Helix Energy Solutions also recently signed a contract extension with Trident Energy for decommissioning work offshore Brazil. The contract has been extended for another 12 months and is a direct continuation of the ongoing contract.
In February 2024, HLX secured a new contract for deepwater well intervention work, offshore Nigeria. The contract involves work for Esso Exploration and Production Nigeria (Esso) at Erha and Usan fields. The project is scheduled to begin in September 2024. The Q4000, a DP3 riser-based semi-submersible well intervention vessel, will be utilized for this project and is scheduled to be in Nigeria into 2025.
Zacks Rank and Other Key Picks
Currently, HLX holds a Zacks Rank #2 (Buy), whereas TALO carries a Zacks Rank #5 (Strong Sell).
Investors might want to look at some other top-ranked stocks in the energy sector, such as Energy Transfer LP (ET - Free Report) and Archrock, Inc. (AROC - Free Report) . Both Energy Transfer and Archrock presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
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Helix Energy Solutions Group, Inc. (HLX - Free Report) , an offshore energy services company, entered into a five-year joint framework agreement with Talos Energy, Inc. (TALO - Free Report) for the latter’s decommissioning requirements in the U.S. Gulf of Mexico. Per the terms of the agreement, Talos has granted Helix the first right of refusal related to specific annual work scopes for the former’s decommissioning projects.
Helix will provide decommissioning services, for offshore wells and infrastructure, primarily on the U.S. Gulf of Mexico (GoM) Shelf. The agreement also mentions a base pricing structure and processes for determining and scheduling specific projects on the basis of Talos’ requirements. The work is expected to begin in the second quarter of 2024.
The project has been awarded to Helix Alliance, Helix’s Louisiana-based subsidiary. The scope of work involves normal course abandonment of Talos’ offshore wells, pipelines and platforms, primarily on the GoM shelf. Throughout the campaign, Helix Alliance plans to use derrick barges for structure removals, lift boats for plug and abandonment activities, and dive support vessels for pipeline abandonments. The subsidiary also intends to use multiple offshore supply vessels and several other Helix Alliance assets during the campaign.
Helix Energy Solutions also recently signed a contract extension with Trident Energy for decommissioning work offshore Brazil. The contract has been extended for another 12 months and is a direct continuation of the ongoing contract.
In February 2024, HLX secured a new contract for deepwater well intervention work, offshore Nigeria. The contract involves work for Esso Exploration and Production Nigeria (Esso) at Erha and Usan fields. The project is scheduled to begin in September 2024. The Q4000, a DP3 riser-based semi-submersible well intervention vessel, will be utilized for this project and is scheduled to be in Nigeria into 2025.
Zacks Rank and Other Key Picks
Currently, HLX holds a Zacks Rank #2 (Buy), whereas TALO carries a Zacks Rank #5 (Strong Sell).
Investors might want to look at some other top-ranked stocks in the energy sector, such as Energy Transfer LP (ET - Free Report) and Archrock, Inc. (AROC - Free Report) . Both Energy Transfer and Archrock presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
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