Energy Prospectus

Dan

Can you please explain the 5mm share secondary offering for Talos. I looks like a few of the original debt based finance entities that must have gotten shares/warrants and are now able to sell them? I don't remember that topic being discussed in the webinar, but maybe it was? I seem to remember Talos doing something about a year ago with the issuance of more shares and the market not liking it, where you said it was probably a good thing. Was this dilution always there and just now it's being realized?

Thanks

HOUSTON, June 23, 2021 /PRNewswire/ -- Talos Energy Inc. (NYSE: TALO) ("Talos" or the "Company") announced today the pricing of an underwritten public offering of an aggregate of 5,000,000 shares of its common stock (the "Offering") by certain affiliates of Apollo Global Management and Riverstone Holdings LLC (the "Selling Stockholders"). Talos is not selling any shares of common stock in the Offering and will not receive any proceeds from any sale of shares by the Selling Stockholders. The Offering is expected to close on June 28, 2021, subject to customary closing conditions.

This is not dilutive.

My valuation of TALO is $25.00 and it will be going up if WTI stays over $70/bbl. Talos sells their oil into the Gulf Coast market at a premium to WTI.

It is not dilutive, but might cap the upside until the market absorbs the shares, unless they already have a buyer. It does create some uncertainty. Shares are down pre-market, as expected. Might be an opportunity for anyone wishing to add.

My guess is that Apollo is cashing out, but still has lots of upside with their warrants. Apollo probably found the Buyer. Again, this is not dilutive and has no significant impact on TALO. BUY the dip is good advice.

FYI: Talos is low-balling their production guidance just in case they have to shut in a lot of production during hurricane season like they did last year. Regardless, they are going to ramp up production sharply into year-end when oil, gas and NGL prices are likely to be much higher than they are today.

When things go on sale, buy them. I added this am