Talos Energy, Inc. · NYSE:TALO
Talos Energy — Investor Presentation (June 2025)
23 slides from Talos Energy's investor presentation, Jun 17, 2025
Slide 1: Fueling Our Future
Fueling Our Future June 17, 2025 1
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Statements Should any risks or uncertainties occur, or should underlying assumptions prove incorrect, our actual results and plans The information in this presentation includes “forward-looking statements” within the meaning of Section 27A of the could differ materia
Slide 3: The Next Generation of Talos: Transforming Into a Leading Pure-Play E&P Offshore Company
The Next Generation of Talos: Transforming Into a Leading Pure-Play E&P Offshore Company Investment Rationale Leading pure play offshore E&P with unique operational capabilities, capital discipline, and ability to scale Talos Today The Next Generation of Talos Since its formation, Talos has expanded
Slide 4: Build on Unique Offshore Capabilities To Drive Momentum
Build on Unique Offshore Capabilities To Drive Momentum Unique Capabilities and Core Strengths 1 Experienced, proven offshore operator • Track record of efficient and successful operations • Proven operator of offshore facilities • Committed to environmental stewardship and unwavering commitment to
Slide 5: Growth Through Value Added Acquisitions and Near-Field Organic Drilling
Growth Through Value Added Acquisitions and Near-Field Organic Drilling Meaningful Value Has Been Unlocked When a Disciplined Acquisition Framework Has Been Applied • Acquired additional Phoenix • Listed on NYSE through • Founded with working interest • Acquired reverse merger with Stone 5 employees
Slide 6: Leading Synergy Capture Rate and Top Quartile Ranking for EBITDA Margin
Leading Synergy Capture Rate and Top Quartile Ranking for EBITDA Margin Industry leader in synergy capture One of the highest EBITDA/BOE margins(2)(3) Synergy Run-Rate Achieved % Transaction Value $BN 2025E E&P EBITDA Margin Consensus $/BOE $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Talos(1) 5.0 1.3
Slide 7: Talos’s Operational Cost Is Top Quartile
Talos’s Operational Cost Is Top Quartile Normalized Operating Cost Benchmark(1) Normalized USD Talos is an industry leading Top Decile operator with top quartile normalized operating costs in Talos deepwater, driven by lean Deepwater 40.0 operations and maintenance Average staffing and targeted main
Slide 8: Strong Balance Sheet Allows Talos Financial Flexibility To Execute
Strong Balance Sheet Allows Talos Financial Flexibility To Execute Committed To Returning Capital to Shareholders While Thoughtfully Evaluating Opportunistic Acquisitions Cash Balance and Debt Maturities 1Q 2025 Leverage Ratio(3)(5) $Millions • Paid down $550 MM of $800(4) debt in 2024 since closing
Slide 9: Deliver Shareholder Value Through Disciplined Capital Allocation
Deliver Shareholder Value Through Disciplined Capital Allocation INVEST in projects that generate robust returns throughout the commodity cycles GROW RETURN via selective accretive up to 50% of growth opportunities annual FCF to shareholders STRENGTHEN the balance sheet Target long-term leverage of
Slide 10: Fueling Our Future Through Three Strategic Pillars
Fueling Our Future Through Three Strategic Pillars Improve Our Business Grow Production and Build a Long-Lived Scaled Every Day Profitability Portfolio Improve business performance and Increase production and cash flow Participate in greenfield developments reduce costs to generate more profit throu
Slide 11: Fueling Our Future Through Three Strategic Pillars
Fueling Our Future Through Three Strategic Pillars Improve Our Business Grow Production and Build a Long-Lived Scaled Every Day Profitability Portfolio Improve business performance and Increase production and cash flow Participate in greenfield developments reduce costs to generate more profit throu
Slide 12: Targeting $100 MM of additional cash flow in 2026
Improve Our Business Every Day Optimal Performance Plan for Cash Flow Enhancements CAPITAL MARGIN COMMERCIAL ORGANIZATIONAL EFFICIENCY ENHANCEMENT OPPORTUNITIES IMPROVEMENT Optimize capital planning process and Maximize profit margins via Enhance value by increasing Deliver meaningful efficiency gai
Slide 13: Fueling Our Future Through Three Strategic Pillars
Fueling Our Future Through Three Strategic Pillars Improve Our Business Grow Production and Build a Long-Lived Scaled Every Day Profitability Portfolio Improve business performance and Increase production and cash flow Participate in greenfield developments reduce costs to generate more profit throu
Slide 14: Expanding on Talos’s Asset Base Through Organic Opportunities
Expanding on Talos’s Asset Base Through Organic Opportunities INFRASTRUCTURE-LED Focused Efforts LEASE SALES & FARM-IN ORGANIC GROWTH JOINT VALUES Ewing Bank 953 Federal GOA Lease Sale 261 Katmai West BP, Chevron, and Hess Sunspear Acreage Consolidation 14
Slide 15: Infrastructure-Led Efforts Drive Cash Flow Through High-Margin Projects
Infrastructure-Led Efforts Drive Cash Flow Through High-Margin Projects Katmai West Sunspear Ewing Bank 953 Lease Sale 261 Tarantula Prince Megalodon Talos: 100% WI Katmai West #1 Katmai West #2 Producing Sunspear Spud 4Q 2024 (50% WI) (50% WI) (GC 78 SS2) SALT SALT SALT PL-4 Sand SALT Seismic Gas W
Slide 16: Fueling Our Future Through Three Strategic Pillars
Fueling Our Future Through Three Strategic Pillars Improve Our Business Grow Production and Build a Long-Lived Scaled Every Day Profitability Portfolio Improve business performance and Increase production and cash flow Participate in greenfield developments reduce costs to generate more profit throu
Slide 17: The Next Phase of Growth in Upstream Is Offshore
The Next Phase of Growth in Upstream Is Offshore Deep and Ultra Deepwater Oil Production MMBBL/D Monument 18 Actuals Forecast Shenandoah 16 Middle East 14 Asia Pacific Future Future P1 Well CIS P2 Well 12 Europe SALT 10 North America 8 Africa Miocene Oligocene 6 Wilcox Cretaceous 4 South America 2 0
Slide 18: Qualities of a Great E&P Company
Qualities of a Great E&P Company Sustains and grows Consistently returns investment in the capital to business to create shareholders value Generates significant Longevity and Free Cash Flow optionality in the through the cycle portfolio 18
Slide 19: Build a Long-Lived, Scaled Portfolio Through Accretive Acquisitions
Build a Long-Lived, Scaled Portfolio Through Accretive Acquisitions Opportunistic and Selective Acquisitions Must Meet Our Strategic Criteria IMPLICATIONS STRATEGIC ACQUISITION CRITERIA Increased Scale to Bolster Capital Return Program Accretive (CFPS, FCFPS, NAV) Increase Longevity in Portfolio Mai
Slide 20: Fueling Our Future
Fueling Our Future Talos Is Committed to a Disciplined Focused Execution Is Paramount to Capital Allocation Framework Talos’s Success Invest in projects that generate robust Improve our business everyday returns throughout the commodity cycles Return up to 50% of annual Free Cash Grow production and
Slide 21: Appendix
Appendix 21
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ Thousands) March 31, 2025 Reconciliation of Net Debt: 9.000% Second-Priority Senior Secured Notes – due February 2029 $625,000 9.375% Second-Priority Senior Secured Notes – due February 2031 $625,000 Bank Credit Facility – matures March 2027 — Total Debt $1,250,000 Less:
Slide 23: www.talosenergy.com
www.talosenergy.com NYSE: TALO 23