Talos Energy, Inc. · NYSE:TALO

Talos Energy — Pareto Securities Energy Conference 2022

18 slides from Talos Energy's conference presentation, Sep 14, 2022

  1. Slide 1: Pareto Securities Energy Conference

    September 2022 Pareto Securities Energy Conference

  2. 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

  3. Slide 3: Expansive Operational and Geological Footprint

    Expansive Operational and Geological Footprint 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 HP1 Talos Seismic Productivity Fairway Emerging CCS Coastal Bend Project Oppor

  4. Slide 4: Reserve Summary – Year-End 2021

    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 $3,798 Product PDNP 41 599 794 Mix 9% 24% Oil 162 MMBoe PUD 25 254 35

  5. Slide 5: Strategic Accomplishments of Last Months

    Strategic Accomplishments of Last 18 Months ACHIEVED RECORD PRODUCTION IN MULTIPLE QUARTERS REDUCED NET DEBT BY ~$350MM AND REDUCED LEVERAGE FROM 2.7X TO 1.0X ACHIEVED COMPANY RECORD >$700MM IN LIQUIDITY HIGH-IMPACT EXPLORATION SUCCESS AT PUMA WEST SUCCESSFULLY LAUNCHED CARBON CAPTURE & SEQUESTRATIO

  6. Slide 6: 2Q 2022 Highlights

    2Q 2022 Highlights Highest EBITDA, highest liquidity and lowest leverage in company history Key Statistics Operational & Financial Highlights >65 MBoe/D  Expanded Bayou Bend CCS JV with Chevron transaction Production  Repaid ~$150 million in debt (including ~40% of RBL) >$250MM  ~$4.20/share of n

  7. Slide 7: A Leading Environmental & Emissions Story

    A Leading Environmental & Emissions Story GOM Deepwater is an emissions-leading basin; Talos is advancing its long-term GHG goals GHG Intensity by Global Resource Type Talos Scope 1 GHG Intensity Targets (MT CO2 Equivalent/MBoe) (Gross Operated Production, MT CO2 Equivalent/MBoe) 25.0 80 30% Base Re

  8. Slide 8: Catalysts Driving Future Value Creation

    Catalysts Driving Future Value Creation Development & Access to major catalysts Exploration Pipeline is a unique differentiator for Talos and provides the basis for exceptional Unprecedented long-term value creation M&A Opportunity Low Carbon Initiatives 8

  9. Slide 9: Talos Strategic Approach

    Talos Strategic Approach High- 3 Regional Impact Talos utilizes seismic technology Seismic Exploration Database and M&A to build value through drilling opportunities across 2 the full asset lifecycle. Step-Out Value- Full Lifecycle Exploitation Focused M&A Investment Approach 1 Asset In-Field Manage

  10. Slide 10: Project Inventory

    Current Drilling Inventory Locations Ram Powell Pompano Project Inventory Amberjack 30 Development 36 97 Projects Exploitation Exploration 2022 Pompano 31 Rig Program Coelacanth Delta House 2022 Open Talos Facility GC 18 Water Program Other Key Facility Talos Seismic Phoenix HP1 Selected Project Pro

  11. Slide 11: M&A Track Record and Opportunity Set

    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 divestments targeted by Super Majors  Proven ability to a

  12. Slide 12: Applying Expertise Towards CCS

    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 HSE Track Record Business Development and Commercially Driven 12

  13. Slide 13: Talos CCS Project Portfolio: Million MT CO2 Storage

    Talos CCS Project Portfolio: 800 Million MT CO2 Storage Supporting 150 MTPA of regional emissions on ~80,000 acres 3 1 River Bend (30%) Gulf of 2 Bayou Bend Mexico (25%) Freeport LNG (50%) Coastal Bend (50%) 1. Bayou Bend 2. Freeport LNG 3. River Bend 4. Coastal Bend Industrial Region Beaumont / Por

  14. Slide 14: Bayou Bend CCS

    Bayou Bend CCS Beaumont Key Highlights  Country’s first and only major offshore CCS project, Sabine operated by Talos Lake  High volume of major emissions sources in close Port Arthur proximity to storage site lease ~30 MM MTPA  CCS-As-A-Service model: transportation, sequestration per year of an

  15. Slide 15: Beyond Net Zero

    Beyond Net Zero PERMANENTLY Executing Decarbonization for Industrial Partners SEQUESTERED CO2 (MMTPA)  At full scale, Talos CCS will permanently sequester >50x the annual emissions of its 20.0+ Upstream operations  Talos CCS plans to contribute to broad industrial decarbonization well beyond its o

  16. Slide 16: Current Capitalization & Balance Sheet Trends

    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 6/30/22 Maturity $800 $702 $673 RBL Facility ($1,100 BB, $806.3 Commitments) $200

  17. Slide 17: Compelling Investment Opportunity

    Compelling Investment Opportunity Talos trades at a significant discount to peers despite consistently solid performance Relative Valuation Key Takeaways (All U.S. E&Ps with 2022E EBITDA $500M to $5,000MM) 8.0x  LTM FCF Yield: 19% after hedges, 46% before E&P CCS Focus hedges 7.0x Talos 6.0x  Reco

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