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EX - 99.1 2 d400994dex991.htm EX - 99.1 TALOS ENERGY TALOS ENERGY ANNOUNCES FIRST QUARTER 2021 RESULTS Houston , Texas , May 5 , 2021 - Talos Energy Inc. ( " Talos " or the " Company " ) ( NYSE : TALO ) today announced its operational and financial results for the first quarter of 2021 . Exhibit 99.1 Key Highlights : Successful high - impact sub - salt Miocene deepwater exploration discovery at Puma West , located approximately 15 miles from the prolific Mad Dog field . Successful multi - well drilling program at Green Canyon 18 concluded . Rig mobilizing to Pompano to begin multi - well campaign . Completed two high - yield transactions that increased liquidity and materially extended the Company's maturity profile . Record production of 66.1 thousand barrels of oil equivalent per day ( " MBoe / d " ) net ( 68 % oil , 76 % liquids ) . This is the Company's highest quarterly production since inception . Net Loss of $ 121.5 million , inclusive of $ 137.5 million in commodity hedging losses , or $ 1.49 loss per diluted share , and Adjusted Net Loss ( 1 ) of $ 27.3 million , inclusive of $ 48.4 million of realized hedging losses , or $ 0.34 adjusted loss per diluted share . Adjusted EBITDA ( 1 ) of $ 136.6 million , or approximately $ 23 per Boe . Adjusted EBITDA excluding hedges of $ 185.0 million , or over $ 31 per Boe . Capital expenditures , inclusive of plugging and abandonment costs , of $ 71.2 million . Free Cash Flow ( 1 ) of $ 31.3 million before changes in working capital , reflecting the quarter's strong operational performance . President and Chief Executive Officer Timothy S. Duncan commented : “ The first quarter of 2021 was a busy period for Talos with multiple development and exploration projects underway . We achieved success across the board on those projects , ranging from in - field developments to a high impact deepwater sub - salt discovery at Puma West . We believe this discovery builds momentum around our sub - salt Miocene portfolio in our Green Canyon and Mississippi Canyon core areas , where we are focused on accelerating significant value creation in the coming years through exploration . On the development and exploitation front , we look forward to drilling an additional well at Tornado to maximize our water flood project , as well as starting the Pompano platform rig program campaign , which should deliver high - value projects in the second half of 2021 and into 2022. " Duncan continued : " It was also a strong quarter financially with over $ 31 million of free cash flow generation , despite hedge settlements , winter weather events and planned downtime at Pompano . Thematically , the results of the quarter illustrate what's possible with our high - quality asset base , diverse project inventory and competitive cost structure , all of which allowed us to generate over $ 31 per Boe of Adjusted EBITDA margin before hedge settlements . With our oil - weighted asset base we expect this high margin trend to continue and we believe our balanced capital program will generate solid returns moving forward . " RECENT DEVELOPMENTS AND OPERATIONS UPDATE Puma West : The Puma West deepwater sub - salt discovery was drilled on Green Canyon Block 821 to a total depth of 23,530 feet . The well encountered high quality Miocene pay with similar rock and fluid properties as other significant discoveries in the prolific sub - salt Miocene basin . bp is the operator and holds a 50.0 % working interest . Talos and Chevron each hold a 25.0 % working interest . Talos holds over 17,000 acres in the surrounding area . Additionally , the Company also holds an inventory of sub - salt Miocene prospects throughout its Green Canyon and Mississippi Canyon core areas and is active in exploration business development activities in similar high - impact opportunities . Platform Rig Program : Talos recently completed a year - long redevelopment campaign in the Green Canyon 18 field . The project included four new completions , which added net production of over 7.5 - 8.0 MBoe / d , significantly lowering the production cost per barrel in the asset and enhancing its margins . The drilling program also generated several future asset management opportunities that the Company plans to execute in due course . The platform rig will next move to the Company's Pompano platform to begin a multi - well development and exploitation campaign through the remainder of 2021 and into 2022 . Zama Unitization : Talos continues to work to finalize unitization beyond the March 2021 deadline previously established by Mexico's Ministry of Energy ( " SENER " ) . A final unitization agreement will address operatorship , initial participating interest splits and the mechanism to re - determine participating interest splits in the future , among other key topics . Talos is continuing to finalize its field development plans in parallel and is prepared to rapidly advance the project to Final Investment Decision ( " FID " ) following the conclusion of unitization . TALOS ENERGY INC . 333 Clay St. , Suite 3300 , Houston , TX 77002