Talos Energy, Inc. · NYSE:TALO

Talos Energy — EnerCom – The Oil and Gas Conference 2018

20 slides from Talos Energy's conference presentation, Aug 21, 2018

  1. Slide 1: EnerCom – The Oil and Gas Conference 2018

    EnerCom – The Oil and Gas Conference 2018

  2. Slide 2: Legal Disclosure

    Legal Disclosure 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 opera

  3. Slide 3: Snapshot of Talos Energy

    Snapshot of Talos Energy Talos Key Assets Corporate Snapshot – Pro Forma (“PF”) Proved Reserves (1) 151 MMBoe 2P Reserves (1) 205 MMBoe Ewing Bank 305 Field Amberjack Proved PV‐10 (1)(2) $2,421 MM 2P PV‐10 (1)(2) $3,435 MM Strip (modified) Proved PV‐10 (2)(3) $3,398 MM Ram Powell Strip (modified) 2P

  4. Slide 4: Leadership Team

    Leadership Team Highly experienced Management Team, with a significant track record of creating superior returns for investors Name Position Prior Companies Years of Experience  Key executives have Chief Executive worked together since Timothy S. Duncan 22+ years Officer 2000 and provided attractiv

  5. Slide 5: Long Term Value Creation

    Long Term Value Creation Talos Energy represents an opportunity to invest in a positive free cash flow generating business in an underinvested basin, with a basin‐leading management team with a best‐in‐class track record of delivering value to investors. Value Creation Over Time Near Term Medium Ter

  6. Slide 6: Well Positioned Relative to both Offshore and Onshore Peers

    Well Positioned Relative to both Offshore and Onshore Peers 2018 Q2 EBITDA(1) Margins ($/Boe) Mean =$29.06 $37.31 $30.87 $29.30 $28.86 $26.93 $26.06 $24.06 Int'l Offshore Bakken Talos Permian Large Cap Mid‐Cap Other GoM Oil (% of Strip Proved Reserves) Mean =70% 75% 71% 71% 70% 69% 57% Bakken Mid‐Ca

  7. Slide 7: Talos Year‐to‐Date Results and Guidance

    Talos Year‐to‐Date Results and Guidance(1) 2018 Pro‐Forma Results 2018 Full Year Pro‐Forma Guidance Q2 2018 Pro‐Forma Production of 51.6 mboe/d Oil (mmbbl) 12.5 – 13.5 Natural Gas (bcf) 27 – 30 Production NGL (mmbbl) 0.9 – 1.0 1H 2018 Pro‐Forma Adjusted EBITDA Margin of (NRI basis) $29.30/boe; unhed

  8. Slide 8: Gulf of Mexico Investment Thesis

    Gulf of Mexico Investment Thesis 1 One of the most important and prolific oil basins in the US, second only to the Permian basin in total current oil production 2 Long history of production, with year‐over‐year production growth since 2013, and forecasted to continue to grow over the next 10 years 3

  9. Slide 9: Premium Crude Sales Market and Realized Prices

    Premium Crude Sales Market and Realized Prices Talos Energy Sales Pricing Talos Energy Sales Pricing Other 1% LLS  Compared to the Permian basin and other onshore 7% premium basins, the Gulf of Mexico tends to afford a much more robust pricing market EIC 40%  Talos Energy’s production is sold cons

  10. Slide 10: Top‐Tier Economics in the Deepwater GoM

    Top‐Tier Economics in the Deepwater GoM GoM Project Economics Comparable to US Shale Oil $100 $80 Breakeven (WTI US$/bbl) $60 $40 $20 Majority of Talos acreage in the highly economical Miocene play in the GoM Average breakeven $0 Wolf‐ Eagle Niobrara GoM Bone Bakken Three Scoop Utica camp Ford Sprin

  11. Slide 11: Existing Infrastructure Creates Compelling Project Economics

    Existing Infrastructure Creates Compelling Project Economics RAM POWELL POMPANO Pompano Cardona Template Malcolm AMBERJACK Audubon Praline Rampart Deep In‐Field and Short Tie‐Back Examples (Pompano Platform) Pompano Key Notes  Deepwater tie‐back opportunities can be categorized into three buckets t

  12. Slide 12: Deepwater Project Economics

    Deepwater Project Economics ENSCO 8503 on In‐Field Phoenix Well Risked Deepwater Project IRR’s at $50  $70/bbl 100% 90% 80% Un‐risked Success Case 70% Price Sensitivity $50  $70 60% IRR, % 50% 40% 30% 20% 10% 0% 5 10 15 20 Key Notes EUR, MMBO (with a GOR of 1000 scf/bbl)  Deepwater project econom

  13. Slide 13: US Gulf of Mexico Assets – Poised for Growth

    US Gulf of Mexico Assets – Poised for Growth Through our extensive seismic footprint and the latest advancements in reprocessing, Talos will continue to develop our exploration portfolio around our infrastructure and the established Miocene trend in deepwater. Ram Powell 2018 Q2 Production 10.4 mboe

  14. Slide 14: Offshore Mexico

    Offshore Mexico Strategic Context Macro View • Mature offshore basin with significant production • Talos was the first foreign operator to enter offshore • Single operator was historically tasked with discovering Mexico in Round 1.1 after winning the only two and developing everything for more than

  15. Slide 15: Mexico – Bid and Lease Progression

    Mexico – Bid and Lease Progression After Round 1.1 ‐ July 2015 After Round 3.1 ‐ March 2018 Key Operators Key Operators  Pemex  Exxon  Repsol  Talos  Shell  Murphy  Chevron  Pan American  BP  DEA  Total  Cairn As a first‐mover in offshore  ENI  Newpek  Statoil  Fieldwood Mexico, Talo

  16. Slide 16: Zama Discovery – Overview

    Zama Discovery – Overview Seismic Line Amplitude/Structure Map Zama‐1: Gross Pay Section & MDT Gradient 0 3500 00 -3400 W E Zama – 2ST1 -2900 -3300 -4100 (Appraisal) -3200 -2800 -3100 -4000 00 -39 -30 -38 00 Zama – 2 00 700 00 -37 0 (Appraisal) 36 60 00 -3 0 50 -3 0 0 Approx 40 -290 00 -3 -33 00 00

  17. Slide 17: Mexico Portfolio Development – Additional Prospects

    Mexico Portfolio Development – Additional Prospects Block 2 – 48,180 acres – 45% working interest Block 7 – 115,255 acres – 35% working interest Prospect to be tested in 1Q 2019 Prospect to be drilled in 2Q 2019 Stranded discovery by Pemex Block 2 Key Notes Block 7 Key Notes • Average water depth is

  18. Slide 18: Zama Comparison to Appomattox

    Zama Comparison to Appomattox Appomattox Development (US Deepwater GoM) Zama Development (Offshore Mexico) https://www.shell.com/about‐us/major‐projects/appomattox.html Discovery Overview1,2 Discovery Overview  Discovered 530 ft gross/425 ft net oil pay (Dec 2009)  Discovered 1,100 ft gross/655 ne

  19. Slide 19: Talos Energy – Net Asset Value

    Talos Energy – Net Asset Value(1)(2) Talos Energy trades significantly below its peer group on a NAV basis Mexico Long‐Term Portfolio 12 Locations and 1 Discovery Near‐Term 250 – 550 MMBOE(3) 2P Core NAV Catalysts 38 Locations (net of ARO) 200 – 500 MMBOE(3) 6,000 5,000 23 Locations 40‐70 MMBOE(3) U

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