Talos Successfully Completes Fall Borrowing Base Redetermination

(Talos, 27.Dec.2022) — Talos Energy Inc. (NYSE: TALO) announced that its current borrowing base was reaffirmed at $1.1bn as part of its semi-annual redetermination process for the fall of 2022.

Effective upon closing of the previously announced acquisition of EnVen Energy Corporation, which is expected by early February of 2023, the xompany’s borrowing base will be automatically increased to $1.5bn from the current $1.1bn and bank commitments will increase to $965mn from the current $806mn, an increase of approximately 20%. Further, the maturity of the facility will be extended to March of 2027 from the current November of 2024. The company will have more favorable interest rate margins, an increased Letters of Credit sublimit, increased flexibility to grow its Carbon Capture and Sequestration (CCS) business and more favorable administrative terms. At closing of the EnVen acquisition, Talos’s liquidity is expected to be approximately $1bn and the Company will have no debt maturities until 2026.

Talos Executive Vice President and Chief Financial Officer Shane Young commented: “We are excited with the results of our redetermination process. The increased commitments and extended maturity to 2027 expected upon closing of the EnVen acquisition demonstrate the strong support of our lender group as we continue to grow our Upstream business, expand our CCS portfolio and mature our key catalysts. We are proud of our accomplishments in 2022 and look forward to an exciting year ahead in 2023. Upon closing of the EnVen acquisition in early 2023, Talos will have a larger, more diverse asset base and the strongest credit profile in the company’s history.”