Talos Energy (TALO) Update - Nov 22

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dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Talos Energy (TALO) Update - Nov 22

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I am reviewing the updated profile for Talos Energy now and we will publish it on Tuesday morning. My valuation will be in the high $20s.

TipRanks: In the last 3 months, 4 ranked analysts set 12-month price targets for TALO. The average price target among the analysts is $20.00.

November 4, 2021
Stifel analyst Michael Scialla raised the price target on Talos Energy (NYSE: TALO) to $26.00 (from $25.00) while maintaining a Buy rating.

The analyst commented, "We view the Q3 release as neutral to slightly positive. The positives included: i) 3Q21 FCF beat our estimate as capex was 20% below our forecast and 8% below consensus; ii) production has been largely restored following Hurricane Ida and could beat lowered expectations barring additional storms as late September rates were tracking above the 4Q21 guidance midpoint; iii) the company's emerging CCS business could benefit from proposed legislation that would amend the 45Q tax credit for sequestering CO2 in permanent geologic storage to $85/ton from $50/ton. The negatives included: i) 3Q21 CFPS was 8% below our estimate on higher than expected unit cash costs. In summary, TALO would have likely reported a strong quarter were it not for Hurricane Ida. The company is well positioned to compete for accretive acquisitions as its balance sheet is quickly deleveraging."

Talos Energy Announced As High Bidder On 57,600 Deepwater Acres In Federal Lease Sale 257
7:00 AM ET 11/18/21 | Dow Jones

HOUSTON, Nov. 18, 2021 /PRNewswire/ -- Talos Energy Inc. (NYSE: TALO) ("Talos" or the "Company") today announced that it was named as the apparent high bidder in the Outer Continental Shelf Federal Lease Sale 257 on ten deepwater blocks comprising 57,600 gross acres, or 36,720 net acres, for a net total consideration of approximately $4.8 million. Nine of the blocks are in close proximity to the Company's operated Green Canyon and Mississippi Canyon facilities, while the remaining block offsets the Company's recent Puma West discovery. Talos was the one of the most active bidders behind ExxonMobil, bp, Chevron, Oxy and Shell. The acquired prospect inventory includes both low risk subsea tie-backs and high impact exploration opportunities. Royalty rates and other key economic terms of the new leases are consistent with historical standards and existing regulations. Leases for all blocks remain subject to normal-course, formal award by the Department of the Interior.

Talos President and Chief Executive Officer Timothy S. Duncan commented: "After a brief pause in federal leasing, the increased level of bidding activity in this sale highlights the attractiveness of the basin and our industry's willingness to invest offshore in the responsible development of reliable energy sources. I'm proud of our team for achieving broad success with a high level of activity, adding acreage and prospects to our already robust portfolio at an attractive acquisition cost. The proximity of these prospects to our existing assets bolsters our infrastructure-led, near-field strategy, creating robust economics while also lowering the overall carbon intensity of our assets over time."

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States and offshore Mexico, both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities. As one of the Gulf of Mexico's largest public independent producers, we leverage decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and storage initiatives along the U.S. Gulf Coast and Gulf of Mexico. For more information, visit www.talosenergy.com.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Talos Energy (TALO) Update - Nov 22

Post by dan_s »

My updated profile will be posted to the EPG website shortly. My valuation of TALO has been adjusted to $28.
Dan Steffens
Energy Prospectus Group
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