Presentation

Founded in 2012 by Timothy Duncan (current CEO) with USD 600 million equity investment by Apollo Global Management and Riverstone Holdings, Talos Energy was formed through the combination of Talos Energy LLC and Stone Energy Corporation. It is a Houston‐based independent exploration and production company with operations in the US Gulf of Mexico and in the shallow waters off the coast of Mexico. Talos is listed on the New York Stock Exchange with a market cap of USD ~530m and an EV of USD ~1.4bn.

Talos’ focus in the US Gulf of Mexico is the exploration, acquisition, exploitation and development of shallow and deepwater assets near existing infrastructure. The shallow waters off the coast of Mexico provide Talos with high impact exploration opportunities in an emerging basin. Talos has 35% operated interest in the 670-1,010 mmboe Zama discovery in Mexico, the first private offshore oil discovery in Mexico’s recent history. Unitization of the field is expected to be completed before year-end.

Talos has a track record of executing projects on time and on budget. Additionally, the company has a history of allocating capital efficiently, as evidenced by industry-leading finding and development costs. Talos’ project inventory consists of over 130 drilling projects with a net unrisked resource potential of ~1.2bn boe. Talos is the largest public pure-play oil company in the Gulf of Mexico with projected ~72 kboepd exit rate in 2020E.

Talos possesses a robust balance sheet with <1.5x leverage (LTM EBITDA), USD >400m in liquidity and an active hedging program to protect their base business. The company reported H1’20 Adj. EBITDA of USD ~245m and mid-year 2020 2P reserves stood at 269 mill boe net.