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TALOS TALOS ENERGY ANNOUNCES THIRD QUARTER 2021 RESULTS Houston , Texas , November 3 , 2021 - Talos Energy Inc. ( " Talos " or the " Company " ) ( NYSE : TALO ) today announced its operational and financial results for the third quarter of 2021 . Key Highlights : Production of 56.5 thousand barrels of oil equivalent per day ( " MBoe / d " ) net ( 69 % oil , 78 % liquids ) , inclusive of Hurricane Ida production deferrals of 10.0 - 11.0 MBoe / d net ● ENERGY ● Talos was named the winning bidder and operator of the Texas General Land Office's ( “ GLO ” ) Jefferson County carbon storage site , the only major offshore carbon capture and storage ( " CCS " ) site in the United States Net Loss of $ 16.7 million , inclusive of $ 81.5 million in commodity hedging losses , or $ 0.20 Net Loss per diluted share , and Adjusted Net Loss ( ¹ ) of $ 3.2 million , inclusive of $ 71.6 million of realized hedging losses , or $ 0.04 Adjusted Net Loss per diluted share Adjusted EBITDA of $ 131.4 million , or approximately $ 25 per Boe ; Adjusted EBITDA excluding hedges of $ 203.1 million , or approximately $ 39 per Boe Capital expenditures of $ 86.2 million Free Cash Flow ( ¹ ) ( before changes in working capital ) of $ 12.8 million President and Chief Executive Officer Timothy S. Duncan commented : " Following two consecutive quarters of record production , we were anticipating a very robust third quarter , including the benefit of several new wells coming online , prior to the impacts of Hurricane Ida . Despite those production deferrals , primarily caused by complications affecting downstream , third - party service providers , we still generated meaningful Adjusted EBITDA and free cash flow in the quarter , validating the operational and financial resiliency of our asset base and the success of our 2021 capital program thus far . Entering the fourth quarter with production largely restored , we still expect to meet our original free cash flow generation goals for the year , with production , expenses and capital expenditures remaining within our guidance , and look forward to entering 2022 on strong footing across our business . During the third quarter we also made meaningful progress in our carbon capture and storage business , in which we are leveraging our Gulf Coast and shallow water expertise to become a leader in a quickly growing and important sector . We were awarded and will be the operator of what is expected to be the first - ever dedicated offshore sequestration site in the U.S. , located just off the coast of Beaumont and Port Arthur , Texas , providing an avenue for the major industrial region to permanently sequester CO₂ emissions . In our regional partnership with Storegga Geotechnologies we are working to assemble a portfolio of opportunities and look forward to providing market updates in the coming months . Most recently , we announced an alliance with TechnipFMC , one of the leading engineering and technology firms in our industry , which we believe further demonstrates the interest level and pace of commercial development in this quickly evolving space . " RECENT DEVELOPMENTS AND OPERATIONS UPDATE Carbon Capture : In August , Talos , along with partner Carbonvert , Inc. ( " Carbonvert " ) , was selected as the winning bidder for the GLO's Jefferson County carbon storage site . The successful bid makes Talos the operator of what is expected to be the first and only large scale offshore carbon storage location in the United States , comprising over 40,000 acres in close proximity to the Beaumont and Port Arthur , Texas industrial corridor . Subsequently , on October 18 , 2021 , Talos announced a strategic alliance with TechnipFMC related to full project lifecycle engineering and design , leveraging TechnipFMC's extended history in subsea engineering , system integration and automation and control . The alliance builds on Talos's partnerships with Storegga Geotechnologies and Carbonvert to further advance the Company's leadership in Gulf Coast CCS project opportunities . Pompano Rig Program : Talos recently commenced its platform rig program from the Company's Pompano facility . The Company expects to bring online 1.5-2.0 MBoe / d of low - risk recompletion and asset management projects in the fourth quarter of 2021 , executing rapid turnaround production additions and capitalizing on favorable commodity price trends . The platform rig will remain at the Pompano facility into 2022 when the Company expects to execute development and exploitation step - out projects as part of the 2022 capital program . Hurricane Ida : Talos experienced significant deferred production of 10.0 - 11.0 MBoe / d net for the third quarter of 2021 ( compared to the Company's projections for the quarter pre - hurricane ) driven by facilities shut - ins , and to a greater extent , complications affecting third - party downstream service providers such as refiners , crude oil terminals and pipelines . The Company's assets did not experience significant damage and the majority have been returned to normal operations , producing an average of approximately 66.5 MBoe / d net in the last week of September of 2021. Talos continues to expect annual production near the lower end of the previously guided annual range , and expects production for the fourth quarter of 2021 of 64.0-66.0 MBoe / d net . All other previously guided line items ( including TALOS ENERGY INC . 333 Clay St. , Suite 3300 , Houston , TX 77002