Talos Energy (TALO) Goldman Sachs Energy, CleanTech & Utilities Conference 2025 summary

Macro environment and strategic priorities

• Commodity prices remain uncertain but currently favorable for investment, with oil in the mid-$70s per barrel.

• Regulatory environment in the Gulf of Mexico has improved, supporting regular lease sales and industry-friendly policies.

• Companies are finalizing 2025 budgets, with planned drilling and capital programs proceeding as expected.

• Focus remains on both short and long-cycle investments, with attention to capital allocation across diverse asset bases.

• Natural gas price inflection is anticipated in late 2025, but expansion is limited by plant capacity constraints.

Key project updates and catalysts

• Major milestone achieved with GTA First Gas, aiming for full capacity by end of Q1 2025 and 20+ years of reserve life.

• Significant discovery in Vietnam's Cuu Long Basin, with appraisal drilling planned to determine full resource potential.

• Côte d'Ivoire exploration program to begin late 2025, targeting high-impact prospects.

• Gulf of Mexico development pipeline extends through the decade, with ongoing drilling and production growth in Eagle Ford and Montney.

• Katmai West #2 well ahead of schedule, with high-impact Daenerys exploration well planned, offering up to 300 million barrels of recoverable resource.

Capital allocation and financial strategy

• Free cash flow generation remains strong, with discussions ongoing about prioritizing share repurchases.

• Maintenance capital is prioritized for 2025, focusing on maximizing cash and repaying debt after a multi-year build cycle.

• Progressive dividend increases and opportunistic share buybacks are planned, especially when shares trade below intrinsic value.

• Appraisal and exploration wells are being integrated into existing capital programs without major budget surprises.