Strategic Rationale:
Complements Scale with Vital Monetary Accretion: Provides cheap, high-margin, oil-weighted manufacturing and is anticipated to be straight away accretive to key monetary metrics.
Will increase Reserves and Manufacturing with Long run Construction Upside: Provides proved reserves of roughly 23 million barrels of oil identical (“MMBoe”) and 10 MMBoe of possible reserves, with further operated Infrastructure‑Led Exploration (ILX) alternatives supporting long run expansion. Manufacturing for the primary quarter 2026 was once 16 thousand barrels of oil identical according to day (“MBoe/d”), ~77% oil.
Maintains Stability Sheet Power and Monetary Flexibility: The transaction is anticipated to be funded thru a mix of money readily available and debt, permitting Talos to handle a powerful stability sheet and leverage profile in line with its disciplined capital allocation framework.
Talos President and Leader Govt Officer Paul Goodfellow commented, “We are pleased to announce the acquisition of these high-quality deepwater assets directly aligned with Pillar Two of our strategy. The bolt-on is highly accretive, materially enhances free cash flow, and includes Infrastructure-Led Exploration opportunities where our field life extension track record can unlock value beyond current reserves. We also see a clear pathway for operated development activity to compete for capital beginning in 2027, further supporting long-term value creation as we continue to advance our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P.”
GULF OF AMERICA BOLT-ON ACQUISITION
The bought property come with a 50% operating hobby and operatorship within the Coulomb box owned completely by way of Shell and a 25% non-operated operating hobby within the BP-operated Na Kika platform and 4 related fields, together with Kepler, Ariel, Fourier, and Herschel. Upon executing definitive agreements, Talos supplied a deposit of $42.5 million in escrow, to be credited at shut. Based totally upon estimated meantime money drift from the bought property from the July 1, 2025 Acquisition efficient date, Talos expects its ultimate internet money attention to be roughly $450 – $500 million(1), except the deposit. The operating pursuits within the BP-operated Na Kika platform and related fields are topic to a 30-day preferential proper by way of associates of BP, which, if exercised, would lead to Talos handiest obtaining a 50% operating hobby and operatorship within the Coulomb box.
First quarter 2026 moderate manufacturing for the pursuits Talos is obtaining was once roughly 16 MBoe/d (~77% oil). The bought property come with roughly 23 MMBoe of proved reserves and possible reserves of 10 MMBoe, in keeping with NSAI SEC year-end 2025 reserves record, internet to Talos and internet of P&A.
Different industrial phrases of the settlement come with a 50% upside sharing settlement efficient at remaining thru year-end 2027 topic to commodity-price-based thresholds if learned charge exceeds $60/Bbl in addition to sure different contingencies and agreements.
The Acquisition is anticipated to near by way of the tip of 2026, topic to standard remaining stipulations, together with the expiration or termination of the ready length beneath the Hart-Scott-Rodino Antitrust Enhancements Act of 1976 and the expiration of acceptable preferential acquire rights with recognize to acceptable Na Kika pursuits.
TRANSACTION FINANCING
The Corporate expects to fund the Acquisition thru a mix of money readily available and debt. In reference to the transaction, Talos has secured $150 million of incremental commitments from its current lenders, expanding the Corporate’s borrowing base from the present $700 million to $850 million, topic to and efficient upon remaining the Acquisition.
Talos Govt Vice President and Leader Monetary Officer Zach Dailey added, “This strategic transaction in the Gulf of America is expected to be immediately accretive to key financial metrics and deliver long-term value while maintaining balance sheet strength and preserving financial flexibility. Importantly, the increased borrowing base reflects strong confidence from our lenders in the quality of the acquired assets, Talos’s base business, and the financial framework that underpins our strategy. On a pro forma basis, we expect to maintain leverage consistent with our financial framework.”
OPERATIONS UPDATE AND 2026 GUIDANCE
The Corporate effectively finished the Genovesa workover and returned the smartly to manufacturing overdue in the second one quarter of 2026, in line with its earlier steering.
As lately introduced by way of the operator, the primary Monument building smartly was once effectively drilled to its general measured intensity of 32,250 ft and encountered 245 ft of internet pay confirming pre-drill expectancies. Drilling is about to start on the second one building smartly adopted by way of finishing touch operations on each wells. First oil is anticipated by way of overdue 2026.
The Corporate expects to replace its 2026 working and monetary steering for the Acquisition following remaining.
ADVISORS
Greenhill, a Mizuho associate, served as unique monetary guide to Talos at the Acquisition.
Footnotes:
(1) Assumes estimated remaining date of September 1, 2026.
ABOUT TALOS ENERGY
Talos Power (NYSE: TALO) is a technically pushed, cutting edge, unbiased power corporate involved in safely maximizing long-term price thru its Exploration & Manufacturing industry in america Gulf of The us and offshore Mexico. We leverage a long time of technical and offshore operational experience to obtain, discover, and convey property in key geological developments whilst keeping up a focal point on protected and environment friendly operations, environmental accountability, and group affect. For more info, seek advice from www.talosenergy.com.
INVESTOR RELATIONS CONTACT
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This conversation would possibly comprise “forward-looking statements” throughout the that means of Segment 27A of the Securities Act of 1933, as amended, and Segment 21E of the Securities Trade Act of 1934, as amended. When used on this conversation, the phrases “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “forecast,” “may,” “objective,” “plan” and identical expressions are supposed to spot forward-looking statements, even though no longer all forward-looking statements comprise such figuring out phrases. All statements, instead of statements of historic truth integrated on this conversation, are forward-looking statements, together with, however no longer restricted to, statements relating to our plans and expectancies in regards to the Acquisition, together with the predicted financing, timing and advantages of the Acquisition, the predicted affect of the Acquisition on our monetary place, expansion alternatives and aggressive place, and our projected prices, potentialities, plans and targets of control. Those forward-looking statements are in keeping with our present expectancies and assumptions about long run occasions and are in keeping with recently to be had data as to the result and timing of long run occasions.
We warning you that those forward-looking statements are topic to a lot of dangers and uncertainties, maximum of which can be tough to are expecting and plenty of of which can be past our keep an eye on. Those dangers come with, however aren’t restricted to, our talent to consummate the Acquisition at the phrases recently pondered, together with the danger that we or different events to the transaction could also be not able to fulfill the stipulations to remaining the Acquisition; our talent to appreciate the predicted advantages of the Acquisition; the danger that BP workout routines its preferential proper with recognize to the Na Kika amenities and related fields; adjustments in marketplace stipulations affecting the oil and fuel trade or long-term oil and fuel charge ranges; political or regulatory traits; reservoir efficiency; the result of long run exploration efforts; well timed finishing touch of building initiatives; technical or working elements; the uncertainty inherent in projecting final recoverable sources and long run charges of manufacturing and money flows and get entry to to capital; the timing of building expenditures; attainable opposed reactions or aggressive responses to our acquisitions and different transactions, together with the proposed Acquisition; dangers and uncertainties associated with financial, marketplace or industry stipulations; and the opposite dangers and uncertainties mentioned in our maximum lately filed Annual Document on Shape 10-Okay, Quarterly Reviews on Shape 10-Q, Present Reviews on Shape 8-Okay and different Securities and Trade Fee filings.
Will have to a number of of the hazards or uncertainties described herein happen, or must underlying assumptions turn out mistaken, our exact effects and plans may just range materially from the ones expressed in any forward-looking statements. All forward-looking statements, expressed or implied, integrated on this conversation are expressly certified of their entirety by way of this cautionary remark. This cautionary remark must even be regarded as in reference to any next written or oral forward-looking statements that we or individuals performing on our behalf would possibly factor. With the exception of as in a different way required by way of acceptable regulation, we disclaim any responsibility to replace any forward-looking statements, all of which can be expressly certified by way of the statements on this phase, to replicate occasions or cases after the date of this conversation.
SOURCE Talos Power
