Talos Energy, Inc. · NYSE:TALO
Talos Energy — Barclays CEO Energy-Power Conference 2020
23 slides from Talos Energy's conference presentation, September 2020
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy- Power Conference September 2020
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Statement Regarding Forward-Looking Statements This presentation contains “forward-looking statements” for purposes of the federal securities laws. All statements, other than statements of historical fact included in this presentation, regarding our strategy, future
Slide 3: Talos Energy at a Glance
Talos Energy at a Glance Attractive Operating Profile 71-73 MBoe/d December 2020E Exit Rate Talos Blocks ~70% Operated ~70% Liquids Mississippi Canyon ~70% Deepwater Consistently generate free cash flow with high margins and a leading cost profile Green Canyon Strong Credit Gulf of Mexico
Slide 4: Gulf of Mexico Basin Contributions
Gulf of Mexico Basin Contributions 2019 Jobs Impact of the Gulf of Mexico Oil and Gas Industry > 2 MILLION BOE/D PRODUCTION >340K JOBS ACROSS NATIONWIDE SUPPLY CHAIN >$28 BILLION U.S. GDP IMPACT >$5 BILLION 147,000 94,000 20,000 28,000 GOVERNMENT REVENUES(1) “ Jobs Supported Jobs Supported Jobs Supp
Slide 5: Long-Term Value & Strong Credit Profile
Long-Term Value & Strong Credit Profile Talos has an attractive profile with equity upside and solid asset coverage $4,500 Key Highlights $4,000 $1,344 $4,164 >130 prospects(1) representing >1.2 BN BOE net unrisked resource potential $3,500 Numerous re-completions in $3,000 PDNP and low-risk PUD
Slide 6: Environmental Stewardship
Environmental Stewardship Environmental Best Practices Minimal flaring (only for occasional safety/operational reasons) Zero overboard tolerance – Rigorous materials, equipment handling policies All production flows directly into offshore pipelines (no trucking, rail, barge, etc.) Robust wat
Slide 7: Social and Corporate Responsibility
Social and Corporate Responsibility Talos strives to enhance the quality of life for our employees and the communities where we work and live Community Involvement Top Workplace Employee-led Community Outreach Committee organizes Ranked a Top Workplace in the Houston Chronicle Top support for lo
Slide 8: Investing Across the Asset Lifecycle
Investing Across the Asset Lifecycle Success driven by ability to invest across the asset lifecycle and consistently improve opportunity set Advanced Seismic Reprocessing Asset Management In-Field Drilling Exploitation Exploration Invest in recompletions Execute low-risk drilling to Add new pr
Slide 9: Key Operated Facilities
Key Operated Facilities Key assets have available capacity for future drilling and hosting third party production Phoenix Complex Green Canyon 18 Pompano Ram Powell Amberjack Block: Green Canyon 236 Block: Green Canyon 18 Block: Viosca Knoll 989 Block: Viosca Knoll 912 Block: Mississippi Canyon 109
Slide 10: Seismic Footprint
Seismic Footprint Extensive seismic footprint provides advantage in evaluating prospects to improve results and reduce risk Seismic database covers ~45MM acres (70k square miles) across the Gulf of Mexico Footprint covers 90%+ of Talos operations and exploration areas 10
Slide 11: Active M&A and Business Development
Active M&A and Business Development Robust business development pipeline provides avenues for exploration and portfolio management Key Takeaways Low entry-cost M&A and subsequent business development provide a pathway to leverage core competencies on organic E&P activities as the primary value cre
Slide 12: Full-Cycle Regional Case Study – Green Canyon
Full-Cycle Regional Case Study – Green Canyon Technical expertise unlocks resource opportunity, leveraging infrastructure provides strong full-cycle value creation 1 2 3 3 1 Green Canyon 18 2 Phoenix Complex 3 Geophysics & Business Development Acquired GC-18 for <$15mm in 2018 Since acquiring as
Slide 13: Full-Cycle Regional Case Study – Mississippi Canyon
Full-Cycle Regional Case Study – Mississippi Canyon Technical expertise unlocks resource opportunity, leveraging infrastructure provides strong full-cycle value creation 1 1 3 3 2 1 3 2 3 1 Substantial Regional Infrastructure 2 PHA Partners 3 Access for Future Exploration Mississippi Canyon assets
Slide 14: Inventory Overview – Portfolio Summary
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 sustainable growth Talos’s project inventory consists of over 130 pro
Slide 15: Substantial Acreage Position
Substantial Acreage Position Large and diverse acreage position provides broad future exploration opportunity set Key Takeaways Significant acreage position across known Gulf of Mexico geologies, including Pliocene, Miocene, Subsalt Miocene, Wilcox, etc. Although Talos holds over 800k primary te
Slide 16: 2020 Activity Overview
2020 Activity Overview Mississippi Canyon Green Canyon Claiborne #3 Bulleit hook-up and first oil, PHA successfully drilled, on Kaleidoscope #1 well at GC 18 production Coelacanth Ram Powell Tornado water flood initiation GC 18 Helix HP-1 Stonefly PHA first oil Shelf & Gulf Coast Mexico
Slide 17: Zama – Appraisal Program Overview
Zama – Appraisal Program Overview Zama-2ST Zama-1 Zama-3 Pressure Samples Clearly delineated 185 the reservoir and identified the oil/water contact’s 47 for Zone 3-5 and Zone 6-7 Pre-Appraisal Post-Appraisal Well test produced at Logs 28 ~7,900 boe/d, increasing confidence on field deliverabilit
Slide 18: Zama – Forward Looking Timeline
Zama – Forward Looking Timeline Three-well appraisal program complete Unitization discussion with Pemex ongoing Consortium preparing to FID in 2H2021 Expect Zama resources to convert into Proved, Probable reserves upon FID 2019 2020 2021 2022 2023 2024 Appraisal Drilling 2 2ST 3 Development
Slide 19: Talos Financial Principles
Talos Financial Principles Conservative balance sheet combined with calculated risk-taking and an active hedging program Leverage Liquidity Maturity Profile Risk Management Balance debt load to cash flow Maintain ample liquidity Access market windows for Grow high-quality, diverse and total
Slide 20: 2020 Capital Expenditures & Other Cost Reductions
2020 Capital Expenditures & Other Cost Reductions Capital Expenditures ($MM) Talos revised its 2020 capital program downward $598 by approximately 40% from 2019 pro-forma capital expenditures and 30% from initial 2020 guidance $600 $533 ― Drilling and completion consists of a one-well program at G
Slide 21: Flexibility in Capital Allocation
Flexibility in Capital Allocation Appropriate prioritization of capital spending ensures long-term success of the business Prioritization of P&A and maintenance spending ensures the operational health of asset base Seismic, Land and G&G spending provides the foundation for future investments A
Slide 22: Capitalization & Credit Statistics
Capitalization & Credit Statistics Key Credit Statistics Debt Capitalization ($MM) as of June 30, 2020 Reserve Based Lending Facility – Drawn (Borrowing Base - $985 MM) $650 2.4x Proved Developed PV-10 / 2.9x Proved PV-10 / 11.00% 2nd Lien Notes due 2022 352 Net Debt Net Debt 7.50% Senior Notes due
Slide 23: 23
23
Talos Energy — Barclays CEO Energy-Power Conference 2020 on 6ix