Building the Energy Company of the Future GROWTH ADVANCEMENT A COMPLETE IN UPSTREAM OF CCS ENERGY SOLUTION Providing responsible Executing large-scale A responsible energy conventional energy decarbonization solutions company…
Expansive Operational and Geological Footprint 2022 Drilling River Bend Focus Area Emerging CCS CCS Site Bayou Bend Opportunities CCS Site Pompano Ram Powell Freeport LNG Amberjack CCS Site GC18 Talos Acreage High…
Strategic Accomplishments of Last 18 Months ACHIEVED RECORD PRODUCTION IN MULTIPLE QUARTERS REDUCED NET DEBT BY 350MM AND REDUCED LEVERAGE FROM 2.7X TO 1.0X ACHIEVED COMPANY RECORD 700MM IN LIQUIDITY HIGH-IMPACT EXPLORATION…
2Q 2022 Highlights Highest EBITDA, highest liquidity and lowest leverage in company history Key Statistics Operational & Financial Highlights 65 MBoe/D Expanded Bayou Bend CCS JV with Chevron transaction Production Repaid 150 million…
Compelling Investment Opportunity Talos trades at a significant discount to peers despite consistently solid performance Relative Valuation Key Takeaways (All U.S. E&Ps with 2022E EBITDA 500M to 5,000MM) 8.0x LTM FCF Yield: 19% after…
Positive Impacts from the Inflation Reduction Act Offshore Lease Sale Implications VK 988 Ram Powell Reinstates winning bids from Lease Sale 257 MC 68 Pompano Talos was one of most active bidders (high bidder on 10 blocks totaling…
Catalysts Driving Future Value Creation Development & Access to major catalysts Exploration Pipeline is a unique differentiator for Talos and provides the basis for exceptional Unprecedented long-term value creation M&A Opportunity…
A Leading Environmental & Emissions Story GOM Deepwater is an emissions-leading basin; Talos is advancing its long-term GHG goals GHG Intensity by Global Resource Type Talos Scope 1 GHG Intensity Targets (MT CO2 Equivalent/MBoe) (Gross…
The Gulf of Mexico A Significant National Resource One of the largest, most diverse and most prolific basins on Earth Top U.S. Basins by Daily Oil Production Large-Scale Operations from Majors, Independents, Privates 4,500 500…
Talos Strategic Approach High- 3 Regional Impact Talos utilizes seismic technology Seismic Exploration Database and M&A to build value through drilling opportunities across 2 the full asset lifecycle. Step-Out Value- Full…
Conventional Offshore Well Profiles Outstanding conventional rock properties allow for lower decline rates and extraordinary production rates Illustrative Decline Profile Illustrative Relative Cumulative Cash Flow Profiles 100% 90% 3…
Sub-Salt Miocene: An Evolving Exploration Trend Diverse geology and outstanding rock properties are spread over a huge geographic area Gulf of Mexico Key Highlights Geologic Ages Norphlet Seismic advancements are enhancing subsurface…
Current Drilling Inventory Locations Ram Powell Pompano Project Inventory Amberjack 30 Development 36 97 Projects Exploitation Exploration 2022 Pompano 31 Rig Program Coelacanth Delta House 2022 Open GC 18 Water…
Zama Remains A Key Catalyst for Shareholder Value World-class Exploration discovery with increasing line of sight to FID Mexico Accomplishments Unitization Updates First and only successful entrant in initial 2015 A Zama development…
M&A Track Record and Opportunity Set Talos has a solid history of successful acquisitions and is well-positioned to execute on future opportunities Talos Track Record Current M&A Landscape 12 acquisitions since inception 100 billion in…
Talos Low Carbon Solutions TLCS Vision TLCS targets to be a recognized leader in domestic decarbonization focused on delivering responsible, reliable, and cost-effective solutions to create sustainable value for our stakeholders.…
Applying Expertise Towards CCS Complementary Skill Sets E&P CCS Conventional Reservoir Expertise, G&G Team Significant Gulf Coast / GOM Presence Vast Seismic Database Established Operator & Project Mgmt. Capabilities Strong…
Talos CCS Project Portfolio: 800 Million MT CO2 Storage Supporting 150 MTPA of regional emissions on 80,000 acres 3 1 River Bend (30%) Gulf of 2 Bayou Bend Mexico (25%) Freeport LNG (50%) Coastal Bend (50%) 1. Bayou Bend…
Bayou Bend CCS Beaumont Key Highlights Countrys first and only major offshore CCS Sabine Lake project, operated by Talos High volume of major emissions sources in Port Arthur close proximity to storage site lease 30 MM MTPA per…
Illustrative CCS Commercial & Economic Considerations Large-scale projects and contracted cash flows with high visibility Incentives Estimated Capture Cost by Industry (/tonnes) Federal tax credits and direct pay provisions 100 New,…
Bayou Bend CCS Transaction with Chevron Chevron brings significant expertise to the first and only major offshore CCS project Completed deal to add Chevron to Bayou Bend CCS joint venture Consideration of 50 million gross for 50%…
Beyond Net Zero PERMANENTLY Executing Decarbonization for Industrial Partners SEQUESTERED CO2 (MMTPA) At full scale, Talos CCS will permanently sequester 50x the annual emissions of its 20.0+ Upstream operations Talos CCS plans to…
Financial Highlights Key Takeaways Key Statistics Shareholder value creation through responsible deployment of capital 1.5 Billion Free Cash Flow 2021-2025(1) Infrastructure-led model generates highly competitive EBITDA netbacks…
Current Capitalization & Balance Sheet Trends Prioritizing financial health, stability and successful long-term value creation - ILX and Venari Acquisitions Capitalization Summary (MM) Liquidity (MM) Pandemic Tranche 6/30/22 Maturity…
Complementary Businesses Increase Value Proposition Upstream High-return projects Step-change catalysts Exceptional Value Creation Ample inventory Uniquely positioned in U.S. CCS and Upstream businesses form GOM the…
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APPENDIX 29
Reserve Summary Year-End 2021 SEC Regional 80.00/3.50 66.55/3.60 Mix 26% 33% Green Canyon YE 21 SEC Reserves PV-10 PV-10 162 Mississippi Canyon Total by Category (MMBoe) (MM) (MM) MMBoe Shelf & Gulf Coast 42% PDP 96 3,073…
Taloss Substantial Acreage Position Large, diverse acreage position provides low-risk, short-cycle projects and material exploration opportunities Regional Mix 6% Miss. Canyon 39% 32% 1,238 Green Canyon Acres Diverse Shelf &…
Maturing Two CCS Project Types Regional Hub Point Source Source Clustered Industrial Base Single facility / Plant Operator / Turnkey Operator / Talos Role / Offering Project Mgr. Project Mgr. Third Parties Midstream Provider…
Advancing Short and Medium-Cycle Project Types Illustrative schedule for CCS projects Year 1 Year 2 Year 3 Year 4 Year 5 Project Quarter Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Point Source Project FEED Work…
Illustrative CCS Commercial & Economic Considerations Key Economic Factors Illustrative Annual Cash Flows Critical Model Variables: Long-term, tolling fee- Tolling fee per tonne based cash flow stream Total Volume Capital…
Non-GAAP Reconciliations Three Months Ended ( thousands, except per Boe) June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Reconciliation of net income (loss) to Adjusted EBITDA: Net Income (loss) 195,141 (66,441)…
Non-GAAP Reconciliations ( thousands, except per share amounts) June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Reconciliation of Adjusted EBITDA to Free Cash Flow (before changes in working capital) Adjusted EBITDA…
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