Pareto Securities E&P Independents Conference January 2020
Overview of Talos Energy Talos is a technically driven independent energy company with a track record of shareholder value creation 53 152 TALOS CORE AREAS PRODUCTION MBoe/d MMBoe AND RESERVES (PRE-ACQUISITION) 3Q 2019 Production…
Key Achievements Since Public Listing Since becoming a public company in 2018, Talos has continued to hit key milestones Delivered strong results and advanced on 2018 May: Closes Stone Energy merger numerous strategic fronts since…
Talos Energy Core Areas GREEN MISSISSIPPI GOM SHELF / OFFSHORE CANYON CANYON OTHER MEXICO Proved Reserves1 (Pre-Acquisition) 70 mmboe 54 mmboe 27 mmboe - 3Q 2019 Production 19.7 mboe/d net, 19.0 mboe/d net, 13.9 mboe/d net, -…
Talos Strategy Green Canyon Core Area Example Technical expertise unlocks resource opportunities; leveraging infrastructure provides strong full-cycle value creation 1 2 3 3 3 1 Green Canyon 18 2 Phoenix Complex 3…
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: ExxonMobil Seller: Shell,…
Recent Transaction Announcement Overview 19 MBoe/d 47 MMBoe (Proved) 65% Oil, 72% Liquids (3Q 2019) 75% Proved Developed (of Proved) Material, Oil-Weighted Production Deep Reserves Base 150 MM 40+ Prospects on Free Cash Flow (2019E)…
Overview of Recent Transformative Acquisitions High-quality portfolio of oil-weighted assets with significant production, increased diversity and material upside 640 million Ram Powell Overview of ILX/Castex effective date July 1, 2019…
Strategic Rationale Increases production and cash flow while diversifying across asset lifecycle and adding growth optionality Scale 30% increase in daily production volumes and Proved Increased Size and Developed reserves Top…
Deep Inventory for Future Growth Bolsters organic growth funnel with sizable inventory in well understood geology 40+ exploration prospects providing several years of drillable inventory Discovery at Coronado Ram Powell 480,000…
Financing & PF Capitalization 250 million of TALO shares (11.0 million shares based Consideration on 30-day VWAP through December 5, 2019) Details Cash from existing sources of liquidity Existing RBL increased to 950 million on…
Valuation & Transaction Metrics Immediately accretive on key metrics Significant discount to NAV of Acquired Assets, based Valuation on Talos estimates Compelling valuation compared to precedents EV / 2019E Operating Cash Flow: 3.0x…
Mexico Block 7 Block 7 contains the globally recognized Zama discovery and numerous other high quality prospects Participating Interest: 35% Operator: Talos Energy Acreage: 57,427 gross acres Block 7 Water Depth: 500-650 ft Zama…
Mexico Block 7 Zama Appraisal Completed Independent third-party evaluation finalized with positive findings Zama 2 Zama 2 ST1 Zama 3 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…
Key Activities in 2019 Talos was extremely active in 2019 across its portfolio, with a high degree of success on key projects Geography Type / Block Asset Status Timing Results Tornado 3 On Production 1Q Boris 3 On Production 1Q…
Social Corporate Responsibility Talos strives to operate safely, responsibly and in a manner that protects the public and the environment Health Safety and Environment Community Involvement Leadership is committed to creating a strong…
Key Investment Highlights Oil-focused and large scale conventional asset base generating high margins, high returns on capital employed and robust free cash flow Portfolio balanced between low risk producing assets, infield…
Appendix
Non-GAAP Reconciliations Reconciliation of net income (loss) to Adj. EBITDA and of Adj. Three Months Ended EBITDA to Adj. EBITDA excluding hedges ( in millions) December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Net…
Non-GAAP Reconciliations Reconciliation of Net Debt Reconciliation of 3Q 2019 Adjusted EBITDA Margin in millions As of September 30, 2019 in millions Margin Margin (ex. hedges) Debt Principal 712 3Q19 Adj. EBITDA / ex. hedges 158 152…
Non-GAAP Reconciliations TALOS ENERGY Three Months Ended ACQUIRED ASSETS Three Months Ended Reconciliation of Net Income (loss) to Adj. EBITDA and Adj. EBITDA to Free Cash Flow September 30, 2019 Reconciliation of Operating Cash Flow…
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