Barclays CEO Energy-Power Conference September 2019
Talos Energy Overview Talos is a technically driven offshore independent oil and gas company with significant track record of shareholder value creation through exploration success and accretive M&A. Talos consistently generates free…
Delivering Results Despite Market Sentiment In contrast to sector performance and investor skepticism, Talos has delivered strong results and consistent free cash flow, and is continuing to build a well-positioned business…
US Gulf of Mexico Assets Free Cash Flow Machine Through our extensive seismic footprint and the latest advancements in reprocessing, Talos continues to develop its exploration portfolio around infrastructure and the established Miocene…
Gulf of Mexico Investment Thesis Why Gulf of Mexico WTI Differentials Better than WTI One of the most important and prolific oil basins in the US, second only to the Permian basin in total current oil production Long history of…
Talos Core Competencies and Focus Areas Geology & Geophysics 3 Targeting prolific Pliocene -- Miocene window 2 Excellent rock properties and advances in seismic lead to direct hydrocarbon indicators (DHIs) 1 Reduce risk and…
Talos Energy Core Areas GREEN CANYON MISSISSIPPI CANYON GOM SHELF / OTHER OFFSHORE MEXICO 2P Reserves1 95 mmboe 67 mmboe 35 mmboe - 2Q 2019 Production 23.9 mboe/d net, 20.7 mboe/d net, 14.4 mboe/d net, - 81% oil 77% oil 61%…
Green Canyon 18 Strategy in Motion 2Q 2019 oil GC 18 Facility Bulleit discoveries Bullwinkle Facility Orlov Antrim HP-1 GREEN Phoenix FPU CANYON Complex Hershey Talos Future tiebacks Green Canyon 18 Strategy in Motion…
Green Canyon Phoenix Complex Phoenix Complex Lay-Out Material rate and reserve growth since acquiring Recently drilled and completed Boris 3 and Tornado 3 Reached a production milestone in May 2019 of 43 MBoe/d Phoenix…
Active in All Business Development Areas Stranded Discoveries & Exploration, Development JVs Single Asset Acquisition Working with partners in Low cost of entry on all metrics deepwater plays to pull Typically sold by Majors…
Recent Business Development Activity Single Asset Acquisition Roll-Up of Private Company Single Asset Acquisition Stranded Discoveries & Expl., Dev. JVs RAM POWELL GREEN CANYON 18 GUNFLINT ANTRIM Seller: Shell, ExxonMobil, Seller:…
Mexico Block 7 Core Area Block 7 contains the globally recognized Zama Discovery and numerous other high quality prospects Overview 2 2ST Participating Interest: 35% 1 Operator: Talos Energy 3 Acreage: 114,854 gross acres…
Block 7 Zama Appraisal Plan Results Zama 2 Zama 2 ST1 Zama 3 Pressure Samples 1,676 ft gross TVD sand 873 ft gross TVD pay 1,000 ft gross TVD sand 581 ft gross TVD pay 68-73% net to gross 748 ft gross TVD pay 185 68-73% net to gross…
Zama One of the Lowest Breakevens in the World The Zama discovery stacks up well against WoodMacs new global sources of oil supply and is considered one of the most economic projects in the world US Lower 48 states and conventional…
Mexico Block 2/31 Shallow Water Area Very attractive shallow water acreage set with Olmeca prospect de-risked by Pemex well Block 2/31 Overview Participating Interest: 25% Operator: Hokchi Energy, a subsidiary of Pan American…
Mexico Block 2/31 Olmeca Complex Exploration Background Xaxamani-1 well Drilled by Pemex in 2003 65 ft gas and 130 ft oil pay in two sands Resource area was included in the Block 31 exploration area Just offshore from the 1950s era…
Mexico Preliminary Timeline to FID 2 2019 2020 2ST 1 3 Zama Appraisal 2 2ST 3 Development Plan & Opcom Approval FID Drilling Zama Unitization Unitization Discussion Resource Evaluation and Current Res Cat. 2C NSAI…
Unprecedented Activity In Offshore Mexico Success at Zama is being followed by unprecedented activity from the private sector Since the Zama discovery was announced in Drilling Projects 2017, permitting activity in the region has…
Key Activities in 2019 Talos Energy has been extremely active in the first half of 2019 across its portfolio, with a high degree of success on key projects Geography Type / Block Asset Status Timing Results Tornado 3 On Production…
Talos Trading Below Proved Developed Producing PV-10 Talos currently trades below PV-10 of PDP reserves of 2.0 billion at 55/2.75 Long-Term Portfolio Near-Term Catalysts Drilled in 3+ 4,500 2P PV-101,2 Discovered Resources…
APPENDIX
Zama Illustrative Estimated Cash Flows First Year of Peak Production Illustrative estimated cash flows assumes first full year of production. Due to cost recovery early in the life of the project, cash flow to E&P consortium is…
Non-GAAP Reconciliations Reconciliation of net income (loss) to Three Months Ended Adj. EBITDA and of Adj. EBITDA to Adj. EBITDA excluding hedges ( in millions) September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 Net…
Non-GAAP Reconciliations Reconciliation of Net Debt Reconciliation of Net Debt / 2Q 2019 LTM Adj. EBITDA in millions As of June 30, 2019 in millions As of June 30, 2019 Debt Principal 712 Net Debt 710 Capital Leases 87 2Q 2019 LQA…
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