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TechnipFMC (FTI), Talos Energy Unite to Provide CCS Solutions

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TechnipFMC plc (FTI - Free Report) along with Talos Energy Inc. (TALO - Free Report) , a Houston-based independent exploration and production firm, recently established a long-term strategic collaboration to develop and provide technical and economic solutions to Carbon Capture and Storage (CCS) projects throughout the US Gulf Coast.

The partnership brings together TechnipFMC's extensive experience in subsea engineering, system integration, automation and control as well as Talos' offshore operating capabilities and subsurface understanding.

This unique cooperation will speed offshore CCS adoption with dependable, customized CCS systems, thanks to the companies’ common aim to sustainably offer CCS solutions that will assist in decreasing the overall carbon intensity.

Per the terms of the deal, the businesses will work together to advance CCS prospects across the complete lifecycle of storage site characterization, front-end engineering and design (FEED), and first injection through field operations. This strengthens the firms' position as market leaders in the developing Gulf Coast CCS sector, based on Talos' recent recognition as the operator of the United States' only large offshore carbon sequestration center.

TechnipFMC is excited to work with Talos to offer offshore CCS solutions that will help curb carbon footprints as the energy revolution unfolds. This alliance utilizes the combined experience as well as TechnipFMC's position as a system integrator and architect to provide a sustainable industrial-scale CCS solution.

Oil and gas companies are getting actively involved in CCS-related projects as the same 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 backed such projects as these are crucial to meeting climate targets.

Also, recently, TechnipFMC announced completing its purchase of Magma Global (Magma), the premier producer of composite pipe technology to aid in energy transition.The company's knowledge of delivering complex integrated Engineering, Procurement, Construction and Installation (iEPCI) projects offshore combined with Magma's leadership position in composite technologies demonstrates its commitment to address the industry's most pressing challenges while upholding its sustainability goals.

Brief on the Company

TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions to the energy industry. The company, having descended from the January 2017 merger between Technip and FMC Technologies, is engaged in designing, producing and servicing technologically-sophisticated systems and products for subsea, onshore/offshore and surface projects.

Zacks Rank & Key Picks

TechnipFMC currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Continental Resources, Inc. (CLR - Free Report) and Magnolia Oil & Gas Corp (MGY - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Continental Resources’ earnings beat the Zacks Consensus Estimate in three of the previous four quarters, missing the same on one occasion.

Magnolia’s earnings beat the Zacks Consensus Estimate in all the last four quarters.