GoA Bolt-On Highly Accretive, Advances Strategic Pillars

Research evidence excerpt

GoA Bolt-On Highly Accretive, Advances Strategic Pillars

June 30, 2026 | 20:38 ET~

Talos Energy, Inc.

TALO-NYSE Rating Price: Jun-30 Target Total Rtn US E&P

Market Perform $12.91 $18.00 39%

Phillip Jungwirth, CFA Analyst

phillip.jungwirth@bmo.com (303) 436-1127

Ajay Bakshani, CFA Senior Associate

GoA Bolt-On Highly Accretive, Advances Strategic ajay.bakshani@bmo.com (332) 268-6994

Jack Kindregan, CFA VP AssociatePillars

Jack.Kindregan@bmo.com (303) 436-1115

Bottom Line: Legal Entity: BMO Capital Markets Corp.

We view Talos’s acquisition of Gulf of America deepwater assets as favorable in that

2YR Price Volume Chart

it adds oily, margin accretive barrels in an existing area at an inexpensive valuation. 18

We estimate the deal is highly accretive, while base decline is below average, with 16

the purchase price easily manageable given Talos’ low leverage. We revised estimates 14

higher post the deal, and estimate >30% CFPS accretion in 2027. Separately, an 12 15

operations update indicated important 2Q projects on-track. Bottom line, a nice bolt-on 10 10

that advances the company’s strategic pillars. 8 5

6 0

Dec Jun Dec Jun

Key Points LHS: Price ($) / RHS: Volume (mm) Source: FactSet

Company Data in $

Talos announced the acquisition of deepwater assets from Shell for $850mm, with

Dividend $0.00 Shares O/S (mm) 166.9cash at close estimated to be $450-500mm (July 1, 2025 effective date). Talos and

Ridgewood partnered in the purchase, while our numbers reflect Talos’ 50% net share. Yield 0.0% Market Cap (mm) $2,155

The assets include 50% interest/operatorship in Coulomb field, plus 25% non-operated EV (mm) $3,150 Net Debt (mm) $841

interest in BP-operated Na Kika platform and associated fields, Kepler, Ariel, Fourier, BMO Estimates in $

Herschel.