HOUSTON, December 21, 2021 / PRNewswire / – Talos Energy Inc. (NYSE: TALO) (“Talos” or the “Company”) today announced the successful completion of its semi-annual reserve-based loan (“RBL”) redetermination process. The Company added an additional lender to the RBL facility and increased the liabilities of one of the others, adding a total of approximately $ 62 million new commitments. In addition, Talos added key provisions to increase the flexibility of pre-FID start-up investments in commercial carbon capture and sequestration (“CCS”) opportunities.
The Company’s borrowing base was reaffirmed at $ 950 million. Total commitments increased from $ 730 million around $ 792 million, including a new major lender joining the RBL facility with initial commitments of $ 50 million as the fourteenth lending bank. In combination with an additional repayment of RBL from cash flow, Talos expects liquidity at the end of 2021 of more than $ 450 million, representing about one $ 75 million increase September 30, 2021, and the Company expects liquidity to continue to increase in 2022. The Company has also introduced provisions on the RBL facility to further increase its flexibility to invest in CSC and other transition opportunities. emerging energies. Talos intends to advance stratigraphic well testing and other costs associated with Class VI injection permits, initial engineering and design (“FEED”), and site leasing. additional sequestration as part of its 2022 capital program.
President of Talos and CEO Timothy S. Duncan commented, “This successful reassessment process highlights the strong relationships we have with our lenders and the high quality of our asset base as we continue to attract capital and add flexibility to grow our business. activities. We have steadily increased our liquidity throughout the year with a combination of debt repayment and increasing liabilities and we expect this trend to continue as we approach our leverage target of 1.0x to 1, 5x in 2022 through additional debt reduction from free cash flow. pandemic position of high liquidity, low leverage and no major maturities, and will do so while continuing our 20+ year experience of protecting shareholder value in the process. I think Talos is well positioned for continued success in 2022. “
Duncan continued, “In addition, I am very pleased with the additional flexibility we have gained to fund start-up investments in our rapidly growing CCS business, which will allow us to advance our two identified project sites as well as continue to explore other opportunities along the US Gulf Coast. In the second half of 2021, our team successfully won the only offshore CCS project site announced in the United States in Jefferson County, Texas. We also announced what we plan to be the first active “point source” CCS project on the Gulf Coast with Freeport LNG, enabling substantial decarbonization of their on-site installation. In 2022, we plan to devote a small portion of our investment program to advancing these and other potential opportunities as we build a significant and industry-leading CCS business unit for the future. “
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is an independent, technically-driven exploration and production company focused on the safe and efficient maximization of long-term value through its operations, currently in United States and off 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 Largest independent public producers, we leverage decades of offshore technical and operational expertise to acquire, explore and develop assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we also use our expertise to explore opportunities to reduce industrial emissions through our carbon capture and storage initiatives along the US Gulf Coast and Gulf of Mexico. For more information visit www.talosenergy.com.
TALOS ENERGY INVESTOR RELATIONS CONTACT
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This communication may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this communication, regarding our strategy, future operations, financial condition, estimated income and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this communication, the words “could”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “plan”, “anticipate” power ”,“ objective ”,“ plan ”and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions regarding future events and are based on information currently available as to the outcome and timing of future events.
We caution you that these forward-looking statements are subject to many risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, our liquidity and the impact of the RBL Amendments, the success of our CCS business, the volatility of commodity prices, including the sharp decline in oil prices from march 2020, the impact of the 2019 coronavirus disease (“COVID-19”) and related government actions on the global demand for oil and natural gas and on our business operations, the capacity or the will of the Organization oil-exporting countries (“OPEC”) and non-OPEC countries, such as Saudi Arabia and Russia, to fix and maintain oil production levels and the impact of such actions, lack of transportation and storage capacity due to oversupply, government regulations and actions or other factors, inflation , lack of availability of drilling and production equipment and services, environmental risks, drilling risks and other operating risks, regulatory changes, uncertainty inherent in estimating reserves and projecting future production rates , cash flow and access to capital, timing of development spending, the possibility that the anticipated benefits of recent acquisitions may not be realized when expected or not at all, including due to the impact or problems resulting from the integration of such acquisitions, and other factors that may affect our future results and operations, in general, including those discussed under the heading ” Risk Factors ”in our annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 11, 2021 and our quarterly report on Form 10-Q for the completed quarterly period September 30, 2021, filed with the SEC on November 3, 2021.
If one or more of these risks were to occur, or if the underlying assumptions prove to be incorrect, our actual results and plans could differ materially from those expressed in the forward-looking statements. All forward-looking statements, express or implied, are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may make. Unless otherwise provided by applicable law, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such communication.
View original content to download multimedia: https://www.prnewswire.com/news-releases/talos-energy-increases-liquidity-adds-additional-lender-and-expands-ccs-financing-flexibility-as-part -of-successful-semi-annual-loan-base-reassessment-301448801.html
SOURCE Talos Energy