Talos Energy (TALO) Update - Sept 8

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

Talos Energy (TALO) Update - Sept 8

Post by dan_s »

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
Energy Prospectus Group
SergioSays
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Joined: Mon Jul 12, 2021 8:59 am

Re: Talos Energy (TALO) Update - Sept 8

Post by SergioSays »

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

Re: Talos Energy (TALO) Update - Sept 8

Post by dan_s »

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.
Dan Steffens
Energy Prospectus Group
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