Talos Energy expects production growth of 20%-25% between 2023 and 2026

Pro forma Proved reserve at year-end 2022 of 190.0 MMBoe, with a standardized measure of $6.0B and with a PV-10 of $7.2B at year end based on SEC prices. Sees FY23 Production 72.0MBoe/d-76.0MBoe/d, including 10.5 months of production from the recent EnVen acquisition. Sees FY23 oil and gas capital investments $650M-$675M focused on developing recent drilling successes; CCS investments $70M-$90M, which may grow as additional key milestones and further portfolio expansions are achieved. Expects production growth of approximately 20-25% between 2023 and 2026, or a compound annual growth rate of 6%-8% per year over the same period. Projected cumulative Adjusted Free Cash Flow of $1.7B-$2.0B through 2026, assuming current strip pricing or $2.0B-$2.5B assuming a flat $75/Bbl and $3.50/Mcf price deck, equating to approximately 75%-90% and 90%-110% of the Company’s current market capitalization, respectively. Capital allocation framework focused on continued debt reduction, investment in key Upstream and CCS catalysts, and providing a path towards returning capital to shareholders. Additionally, Talos would consider participating in share repurchases in the event of any potential significant monetization by private equity holders, subject to Board approvals. Talos President and CEO, said: "We have a very positive outlook as we look forward to a busy 2023. Over the last four months, and pro-forma for our recent transaction, we have drilled six successful wells from our open water subsea and platform rig programs. We are prioritizing the acceleration to first oil from these discoveries in our 2023 capital program, with the most impactful production growth in 2024. We believe our remaining 2023 projects will help us achieve our target production growth rate while lowering our reinvestment rate over time, providing ample capital allocation opportunities. With Talos Low Carbon Solutions, we continue to add strategic U.S. Gulf Coast leasehold for CO2 storage to build the largest carbon sequestration portfolio in the U.S., while advancing our efforts to build additional strategic partnerships and to attract captured CO2 volumes. Today we announced exactly that – an expansion of our partnership with Chevron in Southeast Texas with an additional major leasehold acquisition, bringing our total storage capacity in the region to over 1B tons, one of the largest CCS project sites in the U.S. With respect to capital allocation, our priority continues to be generating free cash flow and lowering our total quantum of debt post-closing of our recent acquisition while also investing in our key catalysts. That includes the continuation of CCS growth and potential Upstream M&A opportunities. However, we are also very focused on building out a capital return model. That could include Talos participating in a share buyback program associated with private equity shareholder liquidity events that could occur over the next several years, helping to alleviate the short-term technical impact to Talos’s shareholder base. Our team is committed to building a diverse and sustainable energy company and we could not be more excited to see what the next twelve months bring."