J.P. Morgan High Yield & Leveraged Finance Conference February 2020
Overview of Talos Energy Standalone Key Statistics Talos is a technically driven independent energy company with a track record of shareholder value creation 53 149 197 TALOS CORE AREAS PRODUCTION MBoe/d MMBoe MMBoe AND RESERVES…
Recent Acquisition Transaction Details Quality portfolio of oil-weighted assets with significant production, increased diversity and material upside 640MM 19 MBoe/d, 68 MMBoe (2P) Transaction July 1, 2019 effective date Overview ILX,…
Recent Acquisition 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…
U.S. Gulf of Mexico Asset Base Broad portfolio of producing assets and prospects spanning key geological trends and operating environments Gulf of Mexico Shelf Talos 19 MBoe/d net(1) Acquired Assets 53% Oil Talos Seismic Ram…
Gulf of Mexico Investment Thesis Gulf of Mexico production benefits from ample infrastructure and proximity to refining capacity, driving premium pricing relative to WTI The basin also benefits from a low royalty burden and no ad…
Core Competencies Geology & Geophysics Targeting prolific Pliocene -- Miocene window Excellent rock properties and advances in seismic lead to direct hydrocarbon indicators (DHIs) Reduce risk and increase exploration success…
Differentiated Strategic Approach Success driven by ability to invest across the asset lifecycle and consistently improve opportunity set Advanced Seismic Reprocessing Active business development allows for consistent expansion and…
Core Areas GREEN MISSISSIPPI GOM SHELF / OFFSHORE CANYON CANYON OTHER MEXICO 3Q19 Production 20 mboe/d net, 33 mboe/d net, 19 mboe/d net, - (Pro Forma) 81% oil 77% oil 53% oil Key Assets Phoenix Pompano Ewing Bank 305/306…
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…
Mexico Core Area Core Area Background Regional Map Talos was one of the first international companies to enter basin following energy reforms World-class Zama discovery in 2017 one of the largest shallow-water discoveries globally in…
Mexico Core Area Block 7 Zama Appraisal 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…
Financial Principles Conservative balance sheet, combined with low-risk developments and active hedging program Financial Discipline [xx] Low Leverage High Liquidity Minimize refinancing risk Low risk approach across Avoid excessive…
2020 Guidance Summary Highlights 2020 Guidance Highlights Total Capital Expenditures by Type (%) Plugging & Expect significant positive free cash flow at 50 / 2 price deck Abandonment 13% Includes impact from recent acquisition from…
Appendix
Social and 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…
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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