Talos Energy Inc. Q4 FY2025 earnings call

• Safety: 2025 had no serious injuries, strong safety performance and low spill rates. • Strategy: Three core pillars - improving business daily (achieved $72M free cash flow improvements in 2025), growing production and profitability (advanced organic growth, Katmai field production, Tarantula throughput expansion), building long-lived scale portfolio (Daenerys discovery, new leases, increased working interest in Monument project, investment in seismic technology). • Projects: Cardona well delivered under budget and ahead of schedule, CPN well expected in 2026, Brutus rig reactivation program planned, Monument Project advancing, Daenerys appraisal well planned for late 2026.

In 2025, Talos Energy Inc. had strong safety performance with no serious injuries and low spill rates. They achieved significant free cash flow improvements, with approximately $72 million in 2025, half being one-time and half structural and recurring. Operating costs were on average 30% lower than the offshore peer group average, resulting in top decile EBITDA margins. Production included first production at Sunspear and Katmai West number two, with Katmai West number one being a top performer. Tarantula’s gross processing capacity was expanded and throughput boosted. Reserves were 175 million barrels of oil equivalent, with 75% being oil, and PV-10 of proved reserves was ~$3.2 billion. Probable reserves added an additional PV-10 of ~$2.3 billion. Fourth quarter production was impacted by Genovese well shut-in, but expected higher oil cut in 2026 to support margins.

• 2026 capital expenditures excluding P&A range between $500M - $550M, focusing on low-breakeven, high-margin oil projects. ~60% allocated to operated projects, ~40% to non-operated. ~10% for exploration including Daenerys appraisal. P&A ~$100M - $130M. • Production expected to average 85,000 - 90,000 barrels of oil equivalent per day, 62,000 - 66,000 barrels of oil per day. Oil as % of total production expected to increase to ~73%. Planned maintenance, weather, and unplanned downtime factors considered. Year-end exit rate expected higher due to new projects and Genovese return.

• Weather impact: Risk of weather delay during Daenerys appraisal well drilling. • Facility and well issues: Genovese well safety valve failure, need for intervention and alignment with facility operator. • Market and commodity price: Volatile commodity price environment affecting business. • Supply chain and rig availability: Potential issues with rig availability and supply chain impacting drilling and project timelines.

Q: Talk about key next operational steps for Monument project and path to first oil by 2026.

A: Beacon to mobilize rig in March, drill both wells back-to-back and complete by end of year, continuous operation starting in March.

Q: Remediation of Genovese well safety valve?

A: Plan to run insert safety valve off intervention vessel in early second half of year, aligning with facility operator.

Q: Next steps at Daenerys and timeline?

A: Expect to spud well late in second quarter, drill and evaluate by end of third or start of fourth quarter, timeline depends on results.

Q: Medium term growth and inorganic opportunities?

A: Focus on strategic execution, active in organic space, look at inorganic activity outside Gulf Of America within disciplined capital framework.

Q: Tarantula facility debottlenecking and transferability?

A: No more optimization gains from Tarantula, approach transferable to other facilities.

Q: Timeline for big beautiful auction leases?

A: Roughly plus or minus a year from lease award to being ready for drill schedule.

Q: Production expectations for Cardona and CPN?

A: Both in line with expectations, CPN well to come online in second half of year.

Q: Katmai North prospect timing and resource?

A: Compete for capital in 2027, still encouraged by greater Katmai area.

Q: Seismic investments and tangible results?

A: Tangible results in lease sale success, use of OBN seismic.

Q: Capital program exploration spend and operated vs non-operated?

A: No target for exploration spend, strength from operating, but partner with others where value exists.

Q: Service environment and rig crowding?

A: Plan ahead with procurement strategy, focus on low breakeven projects.

Q: Legacy infrastructure and market?

A: See more interest in deepwater, technical barrier to entry, consider infrastructure in deepwater opportunities