We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Helix (HLX) Wins Gulf of Mexico Decommissioning Contract
Read MoreHide Full Article
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).
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.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Helix (HLX) Wins Gulf of Mexico Decommissioning Contract
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.