Talos Energy Inc.-Acquiring deepwater GoA assets-07/01/2026

Research evidence excerpt

Talos Energy Inc.-Acquiring deepwater GoA assets-07/01/2026

Talos Energy Inc.

NEWSFLASH | 1 JUL 2026

Acquiring deepwater GoA assets

Talos, alongside Ridgewood Energy, acquires Shell's interest in the greater Na Kika complex in the deepwater Gulf of

America for USD 850m net (final net cash of USD 450-500m after interim cash flow), funded by cash and debt. FY’26 pro

forma production rises to ~104 kbd (based on current mid-range production guidance and 16 kbd production in Q1’26 from

the acquired assets). We view the deal positively and continue to see Talos as the natural consolidator in the GoA midcap

space, with this a textbook example of the low-cost (acquired LOE USD ~5/boe vs Talos standalone USD ~16/boe), oil-

weighted bolt-on the equity story calls for. We currently have a BUY/TP USD 20 rec. on Talos.

Deal details

• Dates: Effective date July 2025, close expected end-2026

• Purchase price: The USD 850m net headline is based on a 1 July 2025 effective date, with final net cash consideration expected at USD

450-500m assuming a 1 September 2026 close

• Assets: 50% operated WI in Coulomb plus 25% non-operated WI in the BP-operated Na Kika platform and four associated fields (Kepler,

Ariel, Fourier, Herschel)

• Reserves, oil ratio and margins: 23 mmboe proved (1P) / 10 mmboe probable, i.e. 33 mmboe 2P (NSAI SEC YE'25), 77% oil. Acquired

LOE USD ~5/boe vs Talos standalone USD ~16/boe

• Preferential rights: BP holds a 30-day preferential right over the Na Kika interests, and if exercised, Talos retains only the operated

Coulomb stake

• Funding: The deal is funded by cash and debt, with lenders providing USD 150m of incremental commitments that lift the borrowing base

from USD 700m to USD 850m upon close of the transaction

Olav Haugerud