Analyst & Investor Day Agenda Topic Speaker Business Overview Tim Duncan The Gulf of Mexico Tim Duncan Conventional Offshore Strategy Tim Duncan ESG Focus Robin Fielder Guest Presenter: Seismic Imaging with CGG Sophie Zurquiyah, CEO…
TALOS ENERGY ANALYST & INVESTOR DAY BUSINESS OVERVIEW 4
Talented & Experienced Management Team Talos leaders are proven explorers, successful entrepreneurs and accomplished stewards of capital Tim Duncan John Parker Robin Fielder Shane Young Bob Abendschein Chief Executive Officer…
Who We Are Talos Energy is an innovative, industry- We are committed to leveraging our leading energy company focused on technical, operational and commercial Exploration & Production and Carbon expertise to help supply societys growing…
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…
Unique and Attractive Energy Investment Case Conventional offshore strategy Carbon capture leadership Strong free cash flow profile Solid balance sheet Exploration catalysts Natural consolidator 8
Celebrating 10 Years of Consistent Performance Since formation in 2012, Talos has continued to grow and hit key milestones Major discovery at Puma West Established CCS Business Added to S&P Won first of its kind offshore Acquired…
Building a Leading Independent Energy Company 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 Phoenix…
TALOS ENERGY ANALYST & INVESTOR DAY THE GULF OF MEXICO 11
The Gulf of Mexico The Gulf of Mexico offers immense resources and unique opportunities for those qualified to manage its technical and operational requirements. Our basin benefits from: Diverse and prolific geology Ample in-place…
Relative Scale of the Gulf of Mexico Basin Footprint Comparison (To Scale) Permian Marcellus Basin Shale Gulf of Eagle Mexico Ford Bakken Shale The GOM has DJ Basin unparalleled size, scale and diversity compared to other…
Diversity of Geology Diverse geology and outstanding rock properties are spread over a huge geographic area Gulf of Mexico Talos is active across numerous plays Geologic Ages in a diverse range of operating Norphlet conditions,…
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 and Privates 4,500 500…
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%…
A Leading Environmental & Emissions Story GOM Deepwater is the clear leader for cleaner, environmentally responsible energy supply GHG Intensity by Global Resource Type Key Environmental Data Points (MT CO2 Equivalent/MBoe) 15% of U.S.…
GOM Provides Social Impact on a Nationwide Scale A highly compelling resource for social impact, job creation and public budgetary considerations Job Creation & Community Impact Public Impact 350,000 30 BILLION JOBS ACROSS ALL 50…
TALOS ENERGY ANALYST & INVESTOR DAY CONVENTIONAL OFFSHORE STRATEGY 19
Talos Core Competencies Technical Subsurface Expertise Offshore Operations Experience Geoscience & Engineering-led firm Proven operator in diverse that consistently generates results offshore environments Decades of conventional…
Technical Subsurface Expertise Proven Explorers Established track record of finding new resources Leadership has numerous discoveries at predecessor companies (predecessor figures excluded from below) 1.0 60 70% BILLION BOE WELLS…
Offshore Operations Experience Experience operating safely and responsibly across a wide spectrum of water depths and facility types Shelf Platform EW305 GC18 Amberjack Pompano HP-1 Ram Powell WD 50ft WD 271ft WD 750ft WD 1,100ft WD…
Talos Strategic Approach High- Regional Impact Seismic Exploration Database Step-Out Value- Exploitation Full Lifecycle Focused M&A Talos utilizes seismic technology Investment and M&A to build value through Approach drilling…
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 &…
Gulf of Mexico Lease Sale Impacts Updates & Talos Mitigations Potential Impacts of a 5-Year Leasing Program Delay 1.5 Billion Interior Department cancelled offshore O&G Recent leases on May 11, 2022 Actions Current 5-year GOM…
Seismic Reprocessing Expertise Talos reprocessing capabilities drive better results and provide a competitive advantage in exploration Key Takeaways Proprietary reprocessing provides a strategic advantage in discovering new…
Taloss Key Operated Facilities Key assets have available capacity for future drilling and hosting third party production HP-1 Green Canyon 18 Pompano Ram Powell Amberjack Block: Green Canyon 236 Block: Green Canyon 18 Block: Viosca…
Full Lifecycle Case Study Green Canyon 18 Highly successful campaign currently being replicated in 2022 Pompano program Project Background & Results Production Growth Since Acquisition Comprehensive field study identified overlooked…
Full Lifecycle Case Study Phoenix / Tornado Advanced seismic reprocessing and increasingly impactful drilling optimized a prolific asset Project Background & Results Resource Growth Since Acquisition 200 Seismic reprocessing provided…
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…
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…
Catalysts Driving Future Value Creation Development & Exploration Pipeline Access to major catalysts is a unique differentiator Unprecedented for Talos and provides M&A Opportunity the basis for exceptional long-term value…
TALOS ENERGY ANALYST & INVESTOR DAY ESG FOCUS 33
ESG Journey Action & Reporting Alignment U.N. Sustainable Development Goals (Nine Most Impactful for Talos) 2021 ESG report references GRI Standards; mapped to SASB Oil & Gas E&P Sustainability Accounting Standard 2021 ESG report…
Taloss Environmental Stewardship Talos is committed to lowering its emissions intensity and maintaining strong environmental standards Driving Down Talos Scope 1 GHG Intensity Benchmarking Pace of GHG Intensity Reductions (Gross…
Beyond Net Zero PERMANENTLY Executing Decarbonization for Industrial Partners SEQUESTERED CO2 At full scale, Talos CCS will permanently sequester 50x the annual emissions of its 20.0+ Upstream operations Talos CCS will contribute…
Exceptional Safety Performance Talos consistently outperforms industry safety averages and continues to improve performance Lost Time Incident Rate (LTIR) Safety Highlights (Average Combined Rates Employees & Contractors) Safety &…
Social Engagement Talos actively engages with community leaders and stakeholders, and factors that feedback into its planning processes Talos is also proud to support our local communities along the U.S. Gulf Coast for charitable…
Our People Aiming to be a positive influence in the lives of our workforce We actively promote and measure employee engagement, diversity and inclusion in the workplace, including through partnering with contractors Effective and…
Governance Talos maintains an independent Board with strong shareholder alignment Strong Governance Enhanced Ownership 6 Independent Directors plus Founder/CEO Legacy private equity ownership transition has significantly increased…
TALOS ENERGY ANALYST & INVESTOR DAY GUEST PRESENTER: SEISMIC IMAGING WITH CGG 42
CGG Our Businesses Combining human ingenuity, data and new technology to understand and solve the worlds most complex challenges for a more sustainable future Focused on 6 key markets Oil & Gas Energy Transition Infrastructure…
CGG Our Capabilities CGG Strengths Three Core Competencies Remarkable Data & Technology Geoscience / Data science Established leader in subsurface imaging, geology and Unique Earth Data library, imaging, geoscience services /…
Leading Experience in Gulf of Mexico and Deepwater Continuous presence in the Gulf of Mexico since 1965 Subsurface Imaging Earth Data 1,500 employees, with major 1.25m km2, including: hubs in: GoM: 406,000 km2 Houston Brazil:…
Subsurface Imaging An Industry Unique Solution Specialized high-performance computing Leading geoscience & data science technologies Highly optimized software Exceptional people Service excellence A highly specialized, optimized…
Specialized, High-Performance Computing Highly specialized scientific compute resource Constantly optimized for new technologies In the top 15 worldwide, all industries Supports over 700 users running over 6 million jobs on 15…
Leading Geoscience & Data Science Technologies Subsalt Imaging Milestones in the Gulf of Mexico Constant innovation driven by the challenges in the Gulf of Mexico Leading and differentiated technologies Only commercially…
External Benchmark Kimberlite Seismic Imaging Survey Supplier seen as leader in selected technologies OBN Multiple Multi- Attenuation Component Least De-blending Processing Squares WAZ / FAZ Time Depth Imaging & Imaging &…
CGG Service Excellence Culture of service excellence Projects uniquely based on result quality, not compute usage or applied technology CGG operations integrated with client teams Project based, or as long term dedicated…
A Long History of Success in the Gulf of Mexico Data Coverage in the Gulf of Mexico Earth Data Active in the area since 1965 Using most advanced acquisition and imaging technologies Almost two thirds of all discoveries in the…
Atlantis OBN Smoothed Legacy Model and 18Hz RTM CGG technology delivers step change Gulf of Mexico Atlantis OBN: Smoothed Legacy Model and 18Hz RTM in salt model and subsurface image 52
Atlantis OBN 18Hz TLFWI model and 18Hz RTM CGG technology delivers step change Gulf of Mexico Atlantis OBN: 18Hz TLFWI Model and 18Hz RTM in salt model and subsurface image 53
Talos Camellia Prospect CGGs latest technology brings Gulf of Mexico WR WAZ: Legacy Model & 20Hz RTM Image a paradigm shift to streamer data 54
Talos Camellia Prospect CGGs latest technology brings Gulf of Mexico WR WAZ: 12Hz TLFWI Model & 25Hz RTM Image a paradigm shift to streamer data 55
CGG Imaging Provides Superior Correlation with Well Data The step-change in image accuracy and resolution provided by CGGs FWI Imaging enables well paths and locations to better target reservoirs and avoid hazards Legacy Data CGG…
CGG Subsurface Imaging Helping Our Clients Make faster, better-informed decisions Improve well placement Reduce the costs and risks of drilling Increase exploration/near step-out success Optimize development & production Reduce GHG…
TALOS ENERGY ANALYST & INVESTOR DAY UPSTREAM 58
Talos Upstream Since our founding 10 years ago, Talos has grown to be one of the largest independent operators in the Gulf of Mexico. We have the necessary skill sets, a proven strategy and a solid asset base, positioning Talos for…
Inventory Evolution Process Review of seismic data Talos is constantly expanding and high-grading Evaluation of known analogs its inventory for flexibility and long-term growth Integrated evaluation with Engineering, Drilling,…
Inventory Overview Portfolio Summary Low risk portfolio to sustain and diversify production plus high impact targets for future growth The Company maintains and continues to grow a deep, diverse inventory portfolio providing…
Inventory Overview Generic Project Categorization Talos prioritizes a balance of project risk, impact, cost and cycle time in developing its capital planning for future periods As project risk increases, Talos generally targets a lower…
Current Drilling Inventory Locations Ram Powell Pompano Amberjack At 2022 pace of 10 wells per year, Talos has 10 years of existing, identified drilling inventory 2022 Pompano Rig Program Coelacanth Delta House 2022 Open GC…
Seville Pompano Platform Rig Miocene exploitation opportunity targeting amplitude correlative to proven hydrocarbons Key Data Points Seismic Overview Spud Date 1Q 2022 POMPANO First Oil 3Q 2022 SALT Est. Resource (Gross MMBOE) 5…
Mount Hunter Pompano Platform Rig Development well targeting attic proved reserves in a prolific Miocene sand Key Data Points Seismic Overview Spud Date 3Q 2022 First Oil 1Q 2023 Est. Resource (Gross MMBOE) 5 10 Est. Initial Rate…
Lime Rock Open Water / Floater Rig Class III AVO exploitation opportunity nearby Ram Powell facility with strong analogs Key Data Points Seismic Overview Spud Date 3Q 2022 NW SE M66 First Oil 2Q 2024 270 Gross Thickness Est.…
Venice Open Water / Floater Rig Exploitation opportunity near Ram Powell identified via advanced seismic analysis Key Data Points Seismic Overview Spud Date 3Q 2022 N S First Oil 1Q 2024 Est. Resource (Gross MMBOE) 10 20 Est.…
Rigolets Open Water / Floater Rig Miocene exploitation opportunity targeting multiple amplitude supported horizons Key Data Points Seismic Cross Section Spud Date 4Q 2022 First Oil 1Q 2024 Est. Resource (Gross MMBOE) 20 30 M85/87…
Puma West Open Water (Non-Operated) Appraisal to delineate 2021 high-impact exploration discovery Key Data Points Regional Asset Map Spud Date 2H 2022 Talos Blocks First Oil Pending Appraisal Est. Resource (Gross MMBOE) Pending…
Select Projects In-Field / Development In-Field / Development Exploitation Exploration Select Projects Prospect Count by Core Area Current Name Location Working Interest Bulleit Recompletion GC21 50% Miss. Canyon 15 36 Mt.…
Select Projects Exploitation In-Field / Development Exploitation Exploration Select Projects Prospect Count by Core Area Current Name Location Working Interest 4 Seville MC27 100% Miss. Canyon 31 Venice VK912 60% 7 Prospects…
Select Projects Exploration In-Field / Development Exploitation Exploration Select Projects Prospect Count by Core Area Current Name Location Working Interest 2 Miss. Canyon Puma West GC821 25% 30 Green Canyon Coronado WR98 40%…
Zama Update 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 plan is the main gating item to bid…
TALOS ENERGY ANALYST & INVESTOR DAY TALOS LOW CARBON SOLUTIONS 74
Talos Carbon Capture & Sequestration Talos is leveraging its decades of experience as an Upstream operator to build a portfolio of CCS projects driving large-scale decarbonization efforts through the direct removal of CO2 from industrial…
What is Carbon Capture and Sequestration CCS involves capturing, transporting, injecting and permanently storing CO2 emissions from industrial sources back into the ground in saline aquifers. Carbon Capture and Sequestration Value…
CCS Growth is Required to Meet Climate Objectives Talos has rapidly taken a leadership role in the developing market for global emissions reductions Additional CCS Capacity is Required to Meet Global Targets REQUIRED 2050 3,000…
Energy Industry Consistently Evolves To Meet Challenges Decades of evolution by the industry have solved complex, global problems Evolution of Oil and Gas Focus and Advancements PETROLEUM MEGA-PROJECT HORIZONTAL U.S. SHALE CRISIS…
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…
U.S. Gulf Coast World-Class CCS Market Opportunity Emissions concentrated along the Gulf Coast are adjacent to best-in-class storage capacity & infrastructure Americas Industrial Epicenter Critical power generation, industrial and…
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.…
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 Large-scale projects and contracted cash flows with high visibility Incentives Carbon Tax/Credit Value (US/tonne CO2) Federal tax credits 2021 2022 2023 2024 2025 2026 2027 2028 2029…
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…
Talos CCS Project Portfolio: 800 Million MT CO2 Storage Supporting 150 MTPA of Regional Emissions on 80,000 acres 3 1 Gulf of 2 Bayou Bend Mexico (25%) River Bend Freeport LNG (30%) (50%) Coastal Bend (50%) 1. Bayou Bend 2.…
Bayou Bend CCS Regional Hub Project for Beaumont / Port Arthur, Texas region (Jefferson County) Key Data Points 2022 Milestones Region Offshore Beaumont / Port Arthur Lessor State of Texas Lease finalized with State of Texas April…
Bayou Bend CCS Transaction with Chevron Chevron brings significant expertise to the first and only major offshore CCS project Executed MOU to add Chevron to Bayou Bend CCS joint venture Consideration of cash at closing and capital…
Freeport LNG CCS Point Source Project for Freeport LNG Key Data Points 2022 Milestones Region Onshore Freeport Lessor Freeport LNG Drill stratigraphic well test to confirm geologic conditions in Acreage 500 2022 Storage Capacity…
River Bend CCS Regional Hub Project along Mississippi River corridor Key Data Points 2022 Milestones Region Onshore Baton Rouge / New Orleans Lessor Private Landowner Finalize subsurface evaluation activities Acreage 26,000 Lease…
Coastal Bend CCS Point Source Project at the Port of Corpus Christi Key Data Points 2022 Milestones Region Onshore Corpus Christi Lessor Port of Corpus Christi Advancing project investigation with formal lease expected 2H Acreage…
TALOS ENERGY ANALYST & INVESTOR DAY GUEST FIRESIDE CHAT: CCS PARTNERSHIPS WITH ENLINK 92
TALOS ENERGY ANALYST & INVESTOR DAY FINANCE & VALUATION 93
Financial Principles We aim to maximize shareholder value through disciplined investments, healthy credit and responsible risk management. Our key financial principles include: Appropriate capital reinvestment with positive Free Cash…
Financial Highlights Key Takeaways Key Statistics Shareholder value creation through 1.5 Billion responsible deployment of capital Free Cash Flow 2021-2025(1) Infrastructure-led model generates 500 Million highly competitive…
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 3/31/22 Maturity…
2022 Operational and Financial Guidance Production 2021A 2022E 66% oil, 75% liquids 3.0 4.0 MBoe/d of annual downtime Oil (MMBbl) 16.2 14.6 15.5 impact: 45 60 days of HP-1 dry-dock downtime Natural Gas (Bcf) 32.8 33.1 35.3 40…
2022 Capital Guidance Overview Balanced capital program targeted at unique high-impact drilling and CCS opportunities Upstream Investments 55% upstream Floater and Platform Rigs reinvestment rate 3 Development projects 50% 0…
Resilient Pricing in a Diverse Set of End Markets Ample pipeline infrastructure and high-quality crude support steady price realizations Crude Markets (% of Total Sales) Basis Differentials Near or Above WTI 5.00 4.00 3.00 2.30…
Hedging Overview Key Principles & Details RBL Hedging Requirements Talos has consistently hedged since its 50% of Oil, Gas PDP for forward quarters 1-4 founding, and will continue to do so 45% in July and November 25% in August,…
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