Talos Energy, Inc. · NYSE:TALO

Talos Energy — Merger or Acquisition (January 2024)

12 slides from Talos Energy's merger presentation, Jan 15, 2024

  1. Slide 1: Acquisition of QuarterNorth Energy

    Acquisition of QuarterNorth Energy January 15, 2024 1

  2. Slide 2: Cautionary Statements

    Cautionary Statements Cautionary Statements Reserve Information The information in this presentation includes “forward-looking statements” within the meaning of the Securities Act of 1933, Reserve engineering is a process of estimating underground accumulations of oil, natural gas and NGLs that cann

  3. Slide 3: Transaction Highlights: $1.29 BN Acquisition of QuarterNorth Energy

    Transaction Highlights: $1.29 BN Acquisition of QuarterNorth Energy High Quality Deepwater Assets with Low Base Decline Key QuarterNorth Statistics ‒ High Free Cash Flow Generation with Low Reinvestment ~30 ~75% ~95% ‒ Adds Material Scale With Low Decline Production MBOE/D (2024E) Oil-Weighted Opera

  4. Slide 4: Transaction Overview

    Transaction Overview  Deepwater-focused private Gulf of Mexico operator QuarterNorth Energy  ~30 MBOE/D (2024E); highly operated and oil-weighted Asset Overview  69 MMBOE Proved Reserves with a PV-10 of ~$1.7 BN  7 key deepwater facilities across the basin  Transaction value of $1.29 BN, consis

  5. Slide 5: Strategic Rationale: Exceeds All M&A Criteria

    Strategic Rationale: Exceeds All M&A Criteria Criteria QuarterNorth Benefits  Sizeable production and reserves base, plus high-quality inventory that immediately Strategic Fit competes for capital  Improves free cash flow profile and asset diversity Complementary Asset  Overlapping deepwater foot

  6. Slide 6: Talos Is One Of The Gulf Of Mexico’s Largest Independent Operators

    Talos Is One Of The Gulf Of Mexico’s Largest Independent Operators Largest Operators (U.S. Gulf of Mexico Gross Production) 550 500 450 Talos continues to build scale and 400 is one of the largest operators in Gross Operated Production (MBOE/D) 350 the Gulf of Mexico 300 250 200 150 100 50 - Source:

  7. Slide 7: Overview of QuarterNorth Energy

    Overview of QuarterNorth Energy Scale and Diversity Benefits Louisiana Impactful, Low Base Diversified Prolific Wells Decline Core Assets Gulf of Mexico Big Bend / Dantzler Acreage Overview Shelf Hickory ~365K ~63% Gross Acres Held By Production Galapagos / Genovesa Facilities Overview Troika / Orlo

  8. Slide 8: Overview of QuarterNorth’s Katmai Field

    Overview of QuarterNorth’s Katmai Field  Premier deepwater field poised to deliver stable, consistent production and significant free cash flow Katmai West Future  50% WI; QuarterNorth operated ST 308 Lobster Well Tarantula Future  100% WI in QuarterNorth operated Tarantula Well host facility Kat

  9. Slide 9: Overview of Other Major QuarterNorth Fields

    Overview of Other Major QuarterNorth Fields Galapagos  Post-Deal WI: 65%; QuarterNorth operated Genovesa Production 15,000  Three subsea wells tied into the Galapagos Loop system, produces at Na Kika Gross Production, BOE/D  Genovesa well remains a strong producer at 10,000 ~8.5 MBOE/D (gross); b

  10. Slide 10: Highly Accretive Transaction with Meaningful Synergies

    Highly Accretive Transaction with Meaningful Synergies Accretion Metrics Projected Cost Savings ($MM/Year) Free Cash Flow Per Share(1): >65% Accretive in 2024 and 2025  Operational economies of scale  Insurance  G&A Cash Flow Per Share: >15% Accretive in 2024 and 2025 $50 Accretive to Net Asset V

  11. Slide 11: 2024 Capital Program Objectives To Maximize Shareholder Value

    2024 Capital Program Objectives To Maximize Shareholder Value Strategy 2024 Activity Overview  Focus on maximizing free cash 1H 2024 flow  Focus on smaller, lower risk non-  Invest in high-value prospects op projects with more impactful production  Platform rig at Lobster and reserves upside 2H

  12. Slide 12: www.talosenergy.com

    www.talosenergy.com 12

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