TALOS ENERGY FILES 8-K ON OPERATIONS, FINANCIAL CONDITION

TL;DR

**Talos Energy just dropped an 8-K with fresh financial and operational deets.**

AI Summary

Talos Energy Inc. filed an 8-K on January 17, 2024, to report on its results of operations and financial condition, along with Regulation FD Disclosure and other events. This filing indicates that the company is providing updated financial information, which is crucial for investors to understand its current performance and future outlook. For shareholders or potential buyers, this matters because it offers transparency into the company's health and any significant developments that could impact its stock price.

Why It Matters

This filing provides investors with the latest financial and operational updates from Talos Energy Inc., allowing them to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This 8-K is a routine disclosure of financial and operational updates, not indicating any immediate new risks.

Analyst Insight

A smart investor would review the full details of the 'Results of Operations and Financial Condition' and 'Regulation FD Disclosure' once available to understand the specific financial updates and their potential impact on Talos Energy Inc.'s stock.

Key Players & Entities

• TALOS ENERGY INC. (company) — the registrant filing the 8-K
• January 17, 2024 (date) — date of earliest event reported and filing date
• 001-38497 (string) — Commission File Number for Talos Energy Inc.
• TALO (string) — trading symbol for Talos Energy Inc. Common Stock
• NYSE (string) — exchange where Talos Energy Inc. Common Stock is registered

Forward-Looking Statements

• Talos Energy Inc. will likely release more detailed financial statements or an earnings report soon, given the 'Results of Operations and Financial Condition' item. (TALOS ENERGY INC.) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $300.0 million — ) commenced an underwritten offering of $300.0 million of shares of its common stock, par valu
• $0.01 — f shares of its common stock, par value $0.01 per share (the "Common Stock") made pur
• $380 million — mber 31, 2023 ranged from approximately $380 million to $395 million, and from approximately
• $395 m — nged from approximately $380 million to $395 million, and from approximately $1,450 mi
• $1,450 million — to $395 million, and from approximately $1,450 million to $1,465 million, respectively, with d
• $1,465 m — nd from approximately $1,450 million to $1,465 million, respectively, with direct operat
• $105 million — such periods ranging from approximately $105 million to $120 million, and from approximately
• $120 m — ging from approximately $105 million to $120 million, and from approximately $390 mill
• $390 million — to $120 million, and from approximately $390 million to $410 million, respectively. Additi
• $410 m — and from approximately $390 million to $410 million, respectively. Additionally, as
• $33.6 million — 2023, the Company estimates that it had $33.6 million of cash and cash equivalents and $1,025
• $1,025.7 million — illion of cash and cash equivalents and $1,025.7 million of total indebtedness, approximately $2
• $200.0 million — on of total indebtedness, approximately $200.0 million of indebtedness and $10.8 million in le
• $10.8 million — tely $200.0 million of indebtedness and $10.8 million in letters of credit outstanding under
• $754.2 million — vailability thereunder of approximately $754.2 million and total liquidity of $787.9 million.

Filing Documents

• d662861d8k.htm (8-K) — 68KB
• d662861dex231.htm (EX-23.1) — 3KB
• d662861dex232.htm (EX-23.2) — 3KB
• d662861dex233.htm (EX-23.3) — 3KB
• d662861dex234.htm (EX-23.4) — 3KB
• d662861dex991.htm (EX-99.1) — 11KB
• d662861dex992.htm (EX-99.2) — 496KB
• d662861dex993.htm (EX-99.3) — 440KB
• d662861dex994.htm (EX-99.4) — 402KB
• d662861dex995.htm (EX-99.5) — 48KB
• d662861dex996.htm (EX-99.6) — 435KB
• d662861dex997.htm (EX-99.7) — 108KB
• d662861dex998.htm (EX-99.8) — 107KB
• g662861dsp001.jpg (GRAPHIC) — 3KB
• g662861dsp059.jpg (GRAPHIC) — 8KB
• g662861dsp060.jpg (GRAPHIC) — 4KB
• g662861dsp061a.jpg (GRAPHIC) — 12KB
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• g662861g0110185446750.jpg (GRAPHIC) — 3KB
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• g662861g72z45.jpg (GRAPHIC) — 7KB
• g662861g88r25.jpg (GRAPHIC) — 4KB
• g662861sp002.jpg (GRAPHIC) — 3KB
• 0001193125-24-009281.txt ( ) — 2616KB
• talo-20240117.xsd (EX-101.SCH) — 3KB
• talo-20240117_lab.xml (EX-101.LAB) — 18KB
• talo-20240117_pre.xml (EX-101.PRE) — 11KB
• d662861d8k_htm.xml (XML) — 3KB

02

Item 2.02. Results of Operations and Financial Condition. Preliminary Operating and Financial Results As of the date hereof, the Company has not finalized its financial and operational results for the three months or year ended December 31, 2023. However, based on preliminary information, the Company estimates that, for the three months and year ended December 31, 2023, its production ranged from approximately 67 to 68 MBoe/d, and from approximately 66 to 67 MBoe/d, respectively. Similarly, the Company estimates that its revenues for the three months and year ended December 31, 2023 ranged from approximately $380 million to $395 million, and from approximately $1,450 million to $1,465 million, respectively, with direct operating expenses (consisting of lease operating expenses and production taxes) for such periods ranging from approximately $105 million to $120 million, and from approximately $390 million to $410 million, respectively. Additionally, as of December 31, 2023, the Company estimates that it had $33.6 million of cash and cash equivalents and $1,025.7 million of total indebtedness, approximately $200.0 million of indebtedness and $10.8 million in letters of credit outstanding under our Bank Credit Facility, resulting in remaining availability thereunder of approximately $754.2 million and total liquidity of $787.9 million. Although the Company's independent petroleum engineers have yet to prepare, audit or review the Company's proved reserve estimates as of December 31, 2023, the Company currently expects based on management estimates that, when compared to its 140.6 MMBoe of proved reserves as of December 31, 2022, its proved reserve estimates as of December 31, 2023 will include, among others, the following adjustments: (i) acquisitions of 55.9 MMBoe (including 34.4 MMBoe of proved developed producing ("PDP") reserves), primarily attributable to the EnVen Acquisition, (ii) additions of between 6.2 MMBoe and 9.3 MMBoe (including 0.2 MMBoe of PD

01

Item 7.01. Regulation FD Disclosure. On January 17, 2024, the Company issued a press release announcing the commencement of the Offering. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated into this Item 7.01 by reference. The information furnished pursuant to this Item 7.01 (including the exhibit) shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act or the Exchange Act.

01

Item 8.01. Other Events. In connection with the Offering, the Company intends to provide certain additional disclosures to investors related to the Company's previously announced acquisition of QuarterNorth Energy Inc. ("QuarterNorth," and such acquisition, the "QuarterNorth Acquisition"). Specifically, as a result of the QuarterNorth Acquisition, the Company expects to acquire approximately 252,000 net leasehold acres, increasing its total net leasehold acreage position to approximately 1,015,000. QuarterNorth's producing assets include approximately 365,000 gross acres and are approximately 95% operated. Additionally, the Company expects to realize annual run-rate synergies of approximately $50 million, consisting of both operational and general and administrative cost reductions as a result of the QuarterNorth Acquisition. Pro forma for the QuarterNorth Acquisition, the Company estimates that it would have generated average net daily production for the quarter ended December 31, 2023, ranging from approximately 97.0 MBoe/d to 99.0 MBoe/d. This Item 8.01 incorporates by reference the information contained in Item 2.02 of this Current Report on Form 8-K. In addition, this Item 8.01 incorporates by reference, the following: the Unaudited Pro Forma Condensed Combined Balance Sheet of the Company as of September 30, 2023 and the Unaudited Pro Forma Condensed Combined Statements of Operations of the Company for the Nine Months ended September 30, 2023 and the Year Ended December 31, 2022, and the notes related thereto, collectively filed as Exhibit 99.2 herewith; the Audited Consolidated Balance Sheet of QuarterNorth as of December 31, 2022, and the Audited Consolidated Statements of Operations, Changes in Stockholders' Equity and Cash Flows of QuarterNorth for the Year Ended December 31, 2022, and the notes related thereto, collectively filed as Exhibit 99.3 herewith; the Audited Consolidated Balance Sheet of QuarterNorth as of December 31, 2021, and the Au

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits Exhibit Description 23.1 Consent of Ernst & Young LLP (QuarterNorth 2022). 23.2 Consent of Ernst & Young LLP (QuarterNorth 2021) 23.3 Consent of Ernst & Young LLP (QuarterNorth Assets). 23.4 Consent of Netherland, Sewell and Associates, Inc. (QuarterNorth Reserves). 99.1 Press Release, dated January 17, 2024. 99.2 Unaudited Pro Forma Combined Balance Sheet of Talos Energy Inc. as of September 30, 2023 and Unaudited Pro Forma Combined Statements of Operations of Talos Energy Inc. for the Nine Months ended September 30, 2023 and the Year Ended December 31, 2022, and the notes related thereto. 99.3 Audited Consolidated Balance Sheet of QuarterNorth Energy Inc. as of December 31, 2022, and Audited Consolidated Statements of Operations, Changes in Stockholders' Equity and Cash Flows of QuarterNorth Energy Inc. for the Year Ended December 31, 2022, and the notes related thereto. 99.4 Audited Consolidated Balance Sheet of QuarterNorth Energy Inc. as of December 31, 2021, and the Audited Consolidated Statements of Operations, Changes in Stockholders' Equity and Cash Flows of QuarterNorth Energy Inc. for the period from August 27, 2021 to December 31, 2021, and the notes related thereto. 99.5 Audited Statement of Revenues and Direct Operating Expenses of the oil and natural gas properties acquired by QuarterNorth Energy Inc. and Mako Buyer 2 LLC on August 27, 2021 from Fieldwood Energy Inc. and its debtor affiliates for the period from January 1, 2021 through August 26, 2021, and the notes related thereto. 99.6 Unaudited Condensed Consolidated Balance Sheets of QuarterNorth Energy Inc. as of September 30, 2023 and December 31, 2022, and the Unaudited Condensed Consolidated Statements of Operations, Changes in Stockholders' Equity and Cash Flows of QuarterNorth Energy Inc. for the Nine Months Ended September 30, 2023 and 2022, and the notes related thereto. 99.7 Report of Netherl

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View this 8-K filing on SEC EDGAR