Overview of Talos A Uniquely Positioned Energy Company Supplying and Serving the U.S. Gulf Coast TX LA Upstream Oil & Gas River Bend CCS 190 MMBoe 66-71 MBoe/d Bayou Pro Forma Proved Reserves 2023E Production Bend CCS Freeport…
Building the Energy Company of Tomorrow GROWTH ADVANCEMENT A COMPLETE IN UPSTREAM OF CCS ENERGY COMPANY Providing safe and Executing large-scale Producing the energy needed responsible conventional decarbonization solutions today and…
A Key Participant in The Gulf Coast Industrial Ecosystem Talos is a Key Supplier and a Service Provider to a Massive Industrial Region U.S. Gulf of Mexico U.S. Gulf Coast U.S. Gulf Coast Oil & Gas Industrial Complex Carbon…
Key Statistics 190 66-71 1.2 MMBoe MBoe/d Billion Pro Forma Proved Reserves (2023E) Pro Forma LTM EBITDA 1.5 1.7 260 Million Billion Tons Thousand Gross Upstream Acres Est. Gross Storage Capacity Gross CCS Acres 805 0.9x…
Recent Update Buyback Program First-Ever Return of Capital Program 100 million share repurchase program announced on March 20, 2023 7% of market cap at announcement 1.9 million shares repurchased, or 1.5% of total shares…
Complementary Upstream & CCS Skill Sets Leveraging Transferrable Core Skills to Drive Value Creation from Two Attractive Businesses Upstream Crossover Skills Carbon Capture Acquire attractive assets to facilitate Utilize seismic…
Upstream Strategy Focused on Full Life Cycle Opportunities Regional Seismic Database Talos utilizes seismic technology and M&A to build value through High- Value- Focused M&A Impact drilling opportunities across Exploration the…
Full Life Cycle Case Study Ram Powell Taloss Strategy Optimizes Existing Infrastructure Through Revitalization, Commercial Deal-Making and New Exploration Ram Powell Growth Since Acquisition New Discoveries Expected to Come Online…
U.S. Gulf of Mexico is a Global Emissions Intensity Leader 2020 Oil Production and GHG Intensity 60 HIGHEST Iran Iraq 50 Norway Russia Production GHG (CO2e kg/Bbl) 40 All U.S. EMISSIONS U.S. Gulf of Mexico…
ESG Updates Committed to Exceptional Governance, Transparency, Safety and Environmental Performance Talos MSCI Rating History Sustainability Highlights Recently received second upgrade within the last twelve months ESG Reporting…
BUSINESS FUNDAMENTALS 14
Talos Trades at a Discount to PV-10 of Flowing Production Talos is Currently Valued Below PDP PV-10, After Deducting P&A Product Mix PF SEC Reserves SEC PV-10(1) 75 PV-10(1) (MMBoe) (MM) (MM) 23% Oil PDP 109 4,878 3,453 190 NGL 7%…
Competitive Margins Margins are Highly Competitive with Peers and Improve with Growth Due to Cost Leverage Operating Expenses are primarily fixed costs, providing significant operating leverage; any new production to Talos facilities…
Talos Trades at a Compelling Relative Valuation Talos Trades at a Discount to Energy Industry Peers Based on current consensus estimates, Talos trades at a discount to E&P industry peers EV / 2023E Adj. EBITDA 10.0x 9.0x 8.0x…
Existing Reserves Underpin Compelling Equity Valuation Fundamental Valuation Implies Significant Equity Upside, Before Factoring in Key Catalysts Net PV-10 grossed up for ARO then deducted for clarification 702 4,836 Current…
Evolving Drilling Inventory Diverse High-Quality Prospect Inventory Representative of the Basins Differentiated Opportunities Wide Variety: Mix of high-impact targets and low-risk development opportunities Geographically Diverse:…
23-26 Drilling Locations Span Multiple Regions & Play Types Ram Powell Pompano Prospect Inventory by Type Amberjack 22 Petronius Development 111 54 Exploitation Miocene Cognac Prospects 35 Exploration Cretaceous Lobster…
Capital Allocation Framework Capex Profile, Debt Repayment, and Shareholder Returns Commensurate with Prices Shareholder Capital Program Debt Repayment Returns Highly Increased Exploration & CCS 85/BBL WTI Rapid RBL paydown…
UPSTREAM 22
Lime Rock & Venice Discoveries Key Highlights Ram Powell Exploitation targets drilled in 4Q 2022; Lime Rock / Venice Talos holds a 60% working interest Discoveries Discovered 20 30 MMBoe gross combined recoverable resources(1)…
Lime Rock & Venice Details Recent Discoveries Expected to Materially Grow Production in Early 2024 Key Data Points Production Forecast (Net MBoe/d) Expected First Oil 1Q 2024 12.0 Est. Resource (Gross MMBoe)(1) 20 30 (40% Oil) Est.…
Lobster Steady Development drilling program has revitalized a prolific asset Lobster Re-Development Campaign Lobster Facility Oil Production 35,000 Lobster and Oyster initially publicized as 68 MMBOE discovery 30,000 Ongoing…
Sunspear Pliocene Opportunity Targeting Multiple Amplitude Supported Horizons Key Data Points PL-4 Sand Map Spud Date 2Q 2023 First Oil TBD Est. Resource (Gross MMBoe)(1) 12 18 Est. Initial Rate (Gross MBoe/D) 8 10 PSL Target…
Pancheron (fka Camellia) Potentially High-Impact Exploration Target Added Through Recent Business Development Key Data Points Regional Asset Map Spud Date 1H 2023 First Oil Not Yet Disclosed Tahiti Holstein Est. Resource (Gross…
Daenerys High-Impact Subsalt Miocene Opportunity Type Log Key Data Points M15 Structure Map 1 OCS-G-24194 Spud Date 2H 2024 First Oil TBD M15 Est. Resource (Gross MMBoe)(1) 100 300 Est. Initial Rate (Gross MBoe/D) TBD Target…
Zama Grupo Carso Transaction Overview Sale of Minority Stake in Talos Mexico Increases Visibility and Bolsters Value Proposition Highlights of Grupo Carso Transaction About Grupo Carso A diversified global conglomerate in Latin America…
Zama Recent Developments Advancing a World-Class Project Toward FID March 2023: Unit Development Plan (UDP) submitted to government for approval Integrated Project Team (IPT) formed; Talos co-leading wells and infrastructure…
Zama Development Plan & Summary Economics Key Details Zama Development Concept 735 MMBoe gross estimated recoverable (NSAI)(1) ZAMA PLATFORM B 180,000 Bbl/d capacity from 2 fixed leg platforms WATER DEPTH 585 FT. 94% oil 26-29…
CARBON CAPTURE 32
One of the Largest CCS Portfolios in the U.S. 1.7 Billion Tons of Estimated Capacity Across 260,000 Acres in Key Industrial Epicenters Coastal Bend Freeport LNG Bayou Bend River Bend Total Beaumont, Port Arthur, Baton Rouge /…
Project Overview Bayou Bend Beaumont Texas Liberty 100,000 Acre County Onshore Storage Port Arthur Harris Complex County Sabine Lake Jefferson County Chambers Baytown County Private Landowner Key Data Points Trinity…
Project Overview River Bend Livingston Parish Ascension Parish EnLink Pipeline St. John the Baptist Parish Key Data Points Regional Brownfield 80 MTPA CO2 Emissions Lessor(s) Private Landowners River Bend Footprint…
Project Overview Coastal Bend Coastal Bend Corpus Nueces Bay Christi Bay Ingelside Redfish Bay Key Data Points Regional Brownfield 20 MTPA CO2 Emissions Coastal Bend Port of Lessor(s) Port of Corpus Christi Corpus Christi…
Developing an Industry-Leading Carbon Capture Business CCS Today 2023 Goals 2030 Vision One of the Largest CO2 Fortifying, Expanding and World-Class Storage Portfolios in the U.S. Advancing the Business CCUS Franchise Four high-quality…
FINANCIAL OVERVIEW 38
Solid Credit Position with Ample Liquidity High Liquidity and Low Leverage Provides Increased Optionality Capitalization Summary (MM) Recent Credit Updates Tranche 1Q 2023 Maturity Upgraded by S&P and Fitch(1) RBL Facility (965…
Current Capitalization and Balance Sheet Trends Prioritizing Financial Health, Stability and Successful Long-Term Value Creation Net Debt / LTM Adjusted EBITDA Liquidity (MM) RBL Balance (MM) 3.0x 900 500 847 465 807 805 800 450 2.5x…
2023 Operational and Financial Guidance 2022A 2023E Oil (MMBbl) 14.6 17.6 18.9 Natural Gas (Bcf) 32.2 29.3 31.6 Production NGL (MMBbl) 1.8 1.6 1.8 Total MMBoe 21.7 24.1 25.9 Avg. Daily Production (MBoe/d) 59.5 66.0 71.0 Cash…
APPENDIX 42
Hedge Book as of June 5, 2023 Instrument Type Avg. Daily Volume W.A. Swap W.A. Sub-Floor W.A. Floor W.A. Ceiling Crude WTI (Bbls) (Per Bbl) (Per Bbl) (Per Bbl) (Per Bbl) April - June 2023 Fixed Swaps 27,000 74.12 April - June 2023…
Non-GAAP Reconciliations Three Months Ended ( Thousands, Except per Boe) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Reconciliation of Net Income (Loss) to Adjusted EBITDA Net Income (Loss) 89,860 2,750 250,465…
Non-GAAP Reconciliations ( thousands) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Reconciliation of Adjusted EBITDA to Adj. Free Cash Flow (before changes in working capital) Adjusted EBITDA 203,063 185,224 197,560…
Non-GAAP Reconciliations March 31, 2023 Reconciliation of Net Debt ( thousands) 12.00% Second-Priority Senior Secured Notes due January 2026 638,541 11.75% Senior Secured Second Lien Notes due April 2026 257,500 Bank Credit…
Non-GAAP Reconciliations December 31, 2022 Reconciliation of PV-10 to Standardized Measure (Pro Forma for EnVen) ( thousands) Standardized Measure(1)(2) 5,994,973 Present value of future income taxes discounted at 10% 1,200,673 PV-10…
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