Talos Energy presents at EnerCom’s The Oil & Gas Conference®

Talos Energy (ticker: TALO) is an independent oil & gas company focused on offshore exploration and production. Talos Energy’s expertise is based upon acquiring assets in and around the Gulf Coast and Gulf of Mexico regions with a high-emphasis on asset optimization, exploitation, and exploration.

Q2 highlights

  • Liquidity position of approximately $433 million as of June 30, 2018, including $354 million available under the $600 million Bank Credit Facility (Borrowing Base) and approximately $79 million of cash
  • As of June 30, 2018 the Company’s total debt principal was $748 million, including capital lease. Net Debt to pro forma annualized Adjusted EBITDA(1)was 1.2x

Breakout session at the EnerCom conference

During Talos Energy’s breakout session at the 2018 EnerCom conference, management was asked the following questions:

  • On your presentation, you have a lot of red dots on the acreage. How many of those are still producing (i.e. first term, second term)?
  • I was wondering if you could comment on your production philosophy. How do you balance between “drill bits” and “acquisitions”?
  • Did you guys take a look at Cobalt International Energy’s assets?
  • For those of us that aren’t in the details of the story, can you walk us forward through the next 12-24 months with well production and asset optimization?
  • I’m not familiar with the Gulf of Mexico. When you pick up bigger producers, and they have the hold and so forth that you hook up into, do you have a new lease with them or go off an existing agreement?
    • Are there pipelines out of these wells?
    • Once you’ve found these drilling sites, how much does it cost you to get that into production?
  • Can we talk a little bit about how much of your capital budget you’re spending in Mexico?
    • And how are you going to balance between your US Gulf of Mexico and other assets?
  • Did you mention your starting commodity cost inflation?
  • Could you give some more details regarding your overall deep water infrastructure and assets?
    • In terms of M&A, are you looking at all types of assets, or only deep water?
  • Once you buy the buy these assets, and then use seismic data to reprocess, do you have to underwrite it?
    • Is it possible to introduce us to some of this seismic technology? What’s the complexity of it?
  • I’m looking at the book here, and it says you have 54 million shares afloat. How much do the management team and the public own as a result of the merger with Stone Energy between the “old” and the “new” company?
  • I was wondering whether you could elaborate on your hedging strategy, your reasoning.
  • Could I get some clarification on your developed reserves and undeveloped reserves? Specifically, how that ties into the valuation you presented, the percentages or weighting of each (developed and undeveloped)?
    • Are performance probables something that’s come about recently?
  • In terms of breakeven points, there seems to be offshore breakeven points and Gulf of Mexico breakeven points. Could we clarify the definition of breakeven points?
  • Just on that return to shareholders comment, do you know in your timeline when you plan on being there?

You can listen to Talos Energy’s presentation here

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