Talos Energy (TALO) Update - Jan 19

[dan_s]

We will be publishing an updated profile on TALO on Friday.

Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) announced that the U.S. Securities and Exchange Commission has declared effective its Registration Statement on Form S-4 related to its previously announced acquisition of EnVen Energy Corporation ("EnVen") and that Talos has set a date of February 8, 2023 for the Special Meeting of its stockholders to vote and approve certain matters relating to such acquisition. Talos expects to close the transaction soon after the Special Meeting.

I am updating my forecast/valuation model today based on the EnVen Acquisition closing mid-February and the two new deep water discoveries (Lime Rock and Venice) to be on production Q1 2024.
> EnVen Acquisition will push Talos' production over 80,000 Boepd
> Lime Rock and Venice wells will add another 10,000 to 12,000 Boepd, so Talos has a clear path to 100,000 Boepd within 18 months.

First Call's Price Target is $28.67

[dan_s]

I spent several hours today updating my forecast/valuation model for TALO. My valuation increases by $6 to $33.50, primarily due to the significant impact of the EnVen Acquisition set to close February 10th and the recently announced two deepwater discovery wells that should both be online within 12 months.

My forecast has been posted to the EPG website and we will be publishing an updated profile tomorrow morning.