Talos Energy (TALO) Update - Sept 8

Talos Energy (TALO) Update - Sept 8

Postby dan_s » Thu Sep 08, 2022 1:00 pm

TALO Put Out New Slides & The Company Mentioned A New GOM Deal With OXY.

TALO put out an updated slide deck this morning, and the company made reference to a new deal in the Gulf of Mexico that it entered into in August with OXY (Neutral, $75 FV). Details are a bit thin, but this sounds like some kind of pooled interest AMI deal that covers 8 GOM blocks (46,000 acres) and TALO expects drilling to begin on the block in 1H23.
Dan Steffens
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Re: Talos Energy (TALO) Update - Sept 8

Postby SergioSays » Thu Sep 22, 2022 1:57 pm

Talos Energy to buy EnVen Energy in $1.1B cash and stock deal

Talos Energy (NYSE:TALO) +4.3% pre-market Thursday after agreeing to acquire deepwater Gulf of Mexico private operator EnVen Energy for $1.1B, consisting of $212.5M in cash and 43.8M shares, plus the assumption of ~$50M in net debt.

Talos (TALO) said the deal expands its Gulf of Mexico operations with high margin, oil-weighted assets, is accretive to shareholders on estimated 2023 free cash flow per share and is immediately de-leveraging.

The deal adds 24K boe/day of production (more than 80% oil), increases production by 40% and gross acreage by 35%, doubles the company's operated deepwater facility footprint, and is expected to add $170M of free cash flow in 2022 and generate at least $30M in annual run-rate synergies in 2023.

Talos (TALO) expects no changes to senior management from the transaction; an expanded board will include two independents from EnVen's board.
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Re: Talos Energy (TALO) Update - Sept 8

Postby dan_s » Thu Sep 22, 2022 2:41 pm

Once we get through hurricane season, I expect TALO to move a lot higher.
This deal should push their 2022 production exit rate up to ~90,000 Boepd, from 65,433 in Q2.

I will be updating my Talos forecast model on Saturday.
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Re: Talos Energy (TALO) Update - Sept 8

Postby Fraser921 » Thu Sep 22, 2022 5:49 pm

https://s201.q4cdn.com/120347489/files/doc_presentations/2022/09/2022.09.22-Talos-Energy-EnVen-Energy-Acquisition-Announcement-Presentation-vFINAL.pdf
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