Talos Energy provides initial 2019 outlook and operations update
Wednesday, May 30, 2018
Talos Energy Inc. provided details of the Company's strategy, its key assets and 2018 financial and operating guidance. It also provided an initial outlook for 2019 and an operations update. A presentation containing additional information can be found on the Company's website at www.talosenergy.com in the Investor Relations section.

Highlights:

  • The Company expects that it will generate positive free cash flow after debt service in 2018 – on a pro forma basis – and also in 2019, while investing in the development of its high-quality US Gulf of Mexico assets, appraise the Zama discovery offshore Mexico and continue its high-impact exploration programs both in the US and Mexico
  • The Company forecasts:
    • 2018 pro forma production sales volumes of 18.0 – 19.5 million barrels of oil equivalent ("MMBoe"), which represents an average daily production of 49 – 53 thousand barrels of oil equivalent per day ("MBoe/d")
    • 2018 pro forma capital expenditures of $430 million to $450 million that is expected to be funded with cash on hand and cash flow from operations
  • Successfully drilled Mt. Providence well in January 2018, which is expected to be completed and brought online by September 2018
  • Tornado #3 well is expected to be spud in 4Q 2018 with first oil expected in 2Q 2019
  • Pro forma 1Q 2018 EBITDA(1) margin per barrel of oil equivalent ("Boe") of $31.20/Boe
President and Chief Executive Officer Timothy S. Duncan commented, "We are pleased to present our Financial and Operational guidance, including a detailed view on the company and its strategy, which outlines Talos' high-quality portfolio on both sides of the Gulf of Mexico, and value proposition as the largest pure-play public company in the basin. Our guidance reflects a strong free cash flow generating business, with our capital program being internally financed, while effectively managing our liquidity and maintaining balance sheet flexibility.  We believe this flexibility will allow us to be a natural consolidator in the basin."


For more information, please visit: https://www.talosenergy.com

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