- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the Talos Energy Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded today. I would now like to turn the conference over to Sergio Maiworm, Investor Relations. ahead. go Please

Sergio Maiworm

Good Quarter operator. and to welcome Thank Earnings morning, Conference Third XXXX Call. our you, everyone,

Joining me Officer. Vice today President to Strategy Fielder, discuss our results Low President, Executive Financial and Carbon Shane Executive Chief Vice and Chief are Officer; Young, and Executive Sustainability President and Officer; Robin Chief Tim Duncan,

these call Actual you remarks today by quarter will the Before we of to statements. as based like and our those information our XX-Q I’d forward-looking forward-looking differ take this a on from forward-looking we in we could that Any results today, in statements. events. to results obligation press new undertake that of as XX, get or started, opportunity may this XXXX, that statements ending materially future SEC to are release and for update cause remind are yesterday. differ to Factors include yesterday’s result filed these set with the assumptions statements Form no contemplated these forth on materially September make

SEC which and filed now we was Tim. at I’d in GAAP GAAP the over release, present turn earnings both call to measures. And which and included to available financial also on this call, our press reconciliation During non-GAAP A the may measures with is talosenergy.com. non-GAAP yesterday’s of was website like to

Tim Duncan

today. Sergio. everyone, for Thank our and morning, Good call you you, thank joining

to the for flow costs, our generate these us pipeline production sheet. substantial earnings rapidly second dock despite with in free balance dry substantial discussed we the and knew outages, our But quarter Odyssey allowing expectations in quarter downtime the maintenance. by the quarter controlling our we we continue third planned delever going operating planned Shell our and surpassed we the to cash As have call, quarter were in to internal to HP-X

per debt, the $XXX paid the approximately which In repaid third credit on last Talos debt our repaid balance over its the in of another is Talos. period. $XXX approximately $X.XX front This equates for sheet back share has Over million outstanding Talos to the million alone, facility. quarter record-breaking X in quarter quarters,

is leverage million, the history, lowest company’s highest liquidity history. in is company’s than Talos’ and in at more level the metric now Our the X.Xx, now $XXX the

We catalysts make organic continue business robust in which a drilling of our M&A opportunities. generate to carbon inventory, pursuit and growth cultivate sequestration and to several our capture and include the accretive business unique,

which kicked on expected barrels significant report, in successful, drilling project’s are prospects not the farm in-house down are reprocessing ahead. techniques levels acquired months resources to resource our and is replacement, the could be which deepwater high, ownership XXXX very a drilling significant working if of to reserve oil better basis. millions tens, them growth look typically projects years we the off exposes seismic into side, initial reserve gross to in add Talos of interest. which of to continue not were XXX% that transactions level our additional our drill exciting our represent opportunities a of third of capital these and should the federal could for currently and upside. equivalent On we potential, After campaign to our are these proved noted hundreds, allocation of If our reserves quarter, makes most of in expect team Talos sales Because multiple organic to additional of they add most ownership the the we leases M&A generated These applying usually months very coming through in talented times geoscientists. It a or to strategy. then that fits in often lease by define

able quality were Oil to these to we include the the for think Gas, speaks opportunities. and BP, and Ecopetrol sophisticated attract Walter others, projects that partners of Chevron, among such I to Oxy, these fact

our partners long-term Another finally, focused on and major ones; parallel capture focused workstreams we and portfolio Since catalyst about for in and contracts the commitment COX, this goals. industrial their was with industrial carbon we and working sequestration. these and confident Talos’ the heightened will the by to priorities: to a to is decarbonization low law, be transportation enthusiasm have FEED a secure milestones moving Act the securing In forward believe business partnerships a that projects. will primarily our and of of passed forging business, earnings our by in business capacity, strengthening new coming that inflation emitters solutions engineering continue their in extremely contributor CCS sequestration renewed additional storage are cash work positive excited our existing to carbon and and year-end, on flow Talos to X the of lead with we Reduction significant existing be advancing several seen years. I’m We

a acquisition us Lastly, a late we EnVen believe logical consideration. catalyst of a also that acquisition September, Energy, opportunities stock of and cash private of through Gulf we combination $X.X In as operator acquirer. announced key for a Mexico are for billion the strategic

excited consist owning through very the deepwater basin. which of these infrastructure production assets, across operated the of are about We oil-weighted logic industrial

It a to per to additional deleveraging flow approximately probable increased operated doubling plus significant as bring XX,XXX reducing will as The to cash to as accretive expected reserves to day barrels to scale, facility free field attractive XXXX of balance and be sheet. production and already million strong financially immediately share approximately transaction XX deepwater equivalent our proved asset diversity, barrels including well transaction our estimated footprint. concentration the be well. XXXX is level equivalent shareholders expect Talos and We is

forward. catalyst our metric align enhance interest a of our intensity declassify better the GHG acquisition and will and improves Board shareholder independence Directors Lastly, be to its with to going

we and our checks boxes all since the deals. overwhelmingly performance the transaction reinforces announcement that received investors that positive shareholders M&A from convinced We this that belief. from expect stock are feedback The

platforms rely those from third per in affect currents loop floating deepwater potential for to the units positioned production quarter equivalent I’ll for for only with day These of position, filed vessels and not drilling are quarter these update noteholders before we their maintain credit production speed per recently dock as quarter first updates of floating HP-X XX% to we since the Talos in the over allows several detail. of to oil created loop strong an through closing capture our X,XXX equivalent quarter the X dynamically December positioned, key and third either transaction, are to by quarter. per production the we an operational and by synergies the briefly HP-X the in at dynamically Canyon few in currents. dry combination on obtaining review all was process HP-X support in planned Green as assets Gulf extended walk and profile resulted third the the expect the running planned Stress the loop address production. and to the review day oil have to of experienced Mexico. up improved well, barrels us the Talos’ overwhelming and transaction. balance fixed resulted window, loop current. they fourth Canyon. from on and constant Depending registration close our additional and of like the of equivalent the moored planned shut-ins production expected. achieve. the provide vessels one close barrels is statement the The system X,XXX January. loop the to transaction maintenance Form in in deferred bonds rigs the the operations turning impacted impacted call area day, XX% production drilling of in operations, to activities barrels which Mississippi XX,XXX own oil approximately This This in sheet thrusters on oil maintenance in Hart-Scott-Rodino pipeline maximize Shane of quarter, weeks of for of the these by conditions or Shell’s HP-X of received their the we currents In assets in of continued consent impact the Phoenix Field S-X, loop current the unplanned bring the the quarter and production caused As on timelines, are and The deferrals of currently Having expiration expect specifically the last the EnVen’s liquid. inclusive unit to deepwater related into week, Because although The while SEC. is Odyssey production our quarter. to of regulatory intermittency on the downtime very currents the SEC the currents the After we our

drilling possession On took operations the in front, rig, deepwater Sevan the Seadrill of August. Louisiana we our

The planned After targeted first area. to we to project. the operational difficulties encountered loop our and uphole the bullet completion currents the with of We was associated area. to online. the move finalize of Canyon first the bring Green the We recompletion project the the from Canyon well to that quarter an results very temporarily in encouraging zone, in recompletion work in the on operation decided Mississippi project and area rig XXXX suspend similar operations return

Lime the Rock facility. campaign Ram Venice near drilling also Mississippi Our area our prospect, by will our Lime facility. our project, operated followed started Rock Powell with be in by our Ram Canyon Powell

deliver will day barrels these And XX,XXX a to X,XXX facility. recompletion these months joint within equivalent And if Rigolets exploitation projects, each per We at XX Bulleit successful wrap gross back drill to will up interest each projects which, tied could a result. partners. each. working then prospect, secured XX% XX Talos of to Pompano have we before in our our of the of oil of achieving venture successful, be new could participate starting

planning We have rig the and XXXX the program. options we’re finalizing for with additional our capital

production reserve XXXX. solid growth additional this confident rig growth program organic and are of in XXXX lay will and We a exciting foundation

number Beyond and XXXX. in for non-operated participating Puma results our appraisal exploration West our operated the in well early We in Green projects. rig also October program, those Canyon a project interesting we’re spud into of anticipate

miocene expect prospect details cross-assignment sub-salt XXXX. in in project under that to closing guidance, and and quarter, acres covering Green we busy trade transaction. Walker the EnVen project as We to the that drill named of which completed part early a roll more flow a we has over XX,XXX project in to through the was on with In focusing Oxy, has back in multi-block team and acreage share the our we but our called our Additionally, hope some attributes execution Camellia, out while to Ridge a presentation Penteron, position highlighted high-impact Analyst it by Day operational intend balance areas healthiest in May to on on Canyon the to cash sheet use our of XXXX challenges been. it our at summary, managed ever that free put continuing downtime excess the

and focus With year turn as closing program details Now attractive we we close quarter. a key address exciting our additional transaction to to call integrating capture the are continued deepwater portfolio. out in of Shane very drilling the well-positioned to development sequestration for some the M&A and over that, catalysts I’ll on the carbon and and and

Shane Young

I’m topics. this everyone quarter, for performance joining focus Tim, X call our very and our us this Thank pleased you, morning, on third with morning. I’ll thank the you, on during and also

results I’ll further on the quarter. First, financial our provide details for

Next, of focus sheet. strength the I will our balance on

the Finally, some of the balance guidance on I year. will provide

to $XXX.X strong or production our adjusted third of barrels HP-X equivalent million per oil million dry-dock of as hedge million diluted oil BOE of per of On barrels of This margins, the as operational in $XXX per which settlements. developments, and In barrel approximately X,XXX income cash with EBITDA net in midstream cash NGLs over mostly the in of price of or generating equivalent to adjusted a day natural inclusive capital deferred for for per the the margins, over working day, X the million margins from $XXX quarter. of earlier We the downtime flow was production received this call. generation of we to of we represent the planned $XX Tim revenue of for per $XX $XX equivalent of referred generate and million. per Net XX,XXX roughly before brings $X.XX of realizations or approximately gas oil interest approximately adjusted per excluding This During produced in well quarter, other quarter, our third-party basis, per before oil, changes at the million. $XXX continued quarter the share, and translated total and $XXX the Those resulted we per EBITDA approximately diluted $X barrel production. expense, and of realized expenditures was income oil BOE. realized on XX% quarter Mcf strong total adjusted share. year approximately of $X.XX free XX% free first $XXX.X million hedge impact losses generated flow during respectively. $XX.X to capital, XX% months million third $XX and EBITDA After cash pricing

the of strength to Turning balance our sheet.

$XXX approximately year balance at the we leaves million quarter, under reducing relative share, $X.XX per at borrowings undrawn credit end. the our and from to beginning repaid million another $XX to outstanding RBL the facility During is XX% just of or our of million $XXX third the commitments. the quarter’s our revolving down approximately This of RBL

XX, stood EBITDA, history. stands million. refinanced leverage Since bonds, the by liquidity company’s in we debt debt first approximately quarter’s X.Xx at share. $XXX At $XXX at to stood at $X.XX million, debt of of while $XXX net approximately lowest quarter or XXXX, adjusted As end, approximately total per we’ve over level September outstanding reduced when our the million the

water expect update We’re roll our after through deleveraging the closing we program expected albeit with I in EnVen the credit outstanding Moreover, the our profile very hedges further is going our legacy and pleased deleveraging recent are continue borrowing quarters. off. program. further and we base repayment with redetermination have forward. of pace our capital we’ll to of XXXX, at ramped as strengthen as addition it Currently, concluded the with month. expect I fall XXXX transaction into of our slower to our market later our a has deleveraging launching process, in remainder of up the open rapid drilling debt

turning Finally, guidance financial to the year. the for our remainder of

This night, our production by quarter timing of our for quarter XX,XXX us to we currents between that anticipated barrels lower full for release press per year we’ve Fourth day. from of the below oil impacted loop X,XXX of experienced shift as quarter and equivalent inclusive last at day on at is quarter the deferrals the this in non-operated recompletion by and earnings the putting XXXX the oil given outlined mentioned beginning of production year. of royalty gas slightly from Tim XXXX. to provided As ongoing fourth XX,XXX first Delta of of guidance equivalent downtime as barrels expect from relief fourth per production X,XXX the is also realizations well the volumes, higher price House, in

of towards our and within expect half administrative continue and inflation costs general to upper the original cash to range guidance We operating be pushing them expenses that with range.

say timing. discussed previously capital quarter of capital project currently be we We With high expenditures expenditures now as inclusive quarter of $XXX of expenditures. non-operated the the continued second more inflationary call, end We’ll of fourth between Lastly, to turn $XXX back closing pressures I’ll during the Tim. towards the to over around earnings have XXXX that, our our outlook to time about range P&A expect and to the due EnVen the million guidance transaction. and call capital expect million,

Tim Duncan

we believe investment in we basins. made that because Gulf Mexico it more of would Shane. Thanks, opportunities Talos, time, built a stay other decision significant the we generate to When over in

company, as of of our excited about As we years in the anniversary a life over opportunities XXth extremely we ahead I celebrated the us. reflect where on are and cycle I’m public X Talos,

We and shareholder an public Q&A. open mid-cap of impactful assortment our believe from alpha opportunities. used opportunities a business and build development counterparty we’ve have continues there of we believe one other differentiate ourselves sets drilling And a in With the we to to positioned will team small business value in-house market I out of think deliver choice we’ll long-term build as largest Our to up we line continue now skill In opportunities. to that low-carbon future. ourselves that, terms, the generation operator, E&Ps. the out for in have

Operator

will begin question Subash from our answer We the question come Instructions] Benchmark session. Company. [Operator now here will first and with And Chandra

Subash Chandra

recompletion? been that first thank you for the that. quarter But add could current you so look some and morning. loop quantified guess, exit like further speculate Good you it’s it, current Tim, in quarter loop with the the into even addressed issue, rate those what would issues, I fourth when maybe of subsiding

Tim Duncan

it’s current. matter, Yes, seasonal. different Gulf of Mexico. loop things really parts tell are Those are the They on a us impacted over the as of I they the that of you couple would interesting last years. haven’t hit just general

think year, I the Canyon the year, were Canyon around around last they’re Mississippi lingering lingering This they area. area. Green

everybody. we operate. positioned. doesn’t impacts impact those So that dynamically frustrating have are those in vessels of hard and again, it And to obviously, HP-X. the It And one

a quarter we lot we’ll thesis. then have think most quarter. volumes challenged ship up. get to we would So returned and I would that loop and have rate the knew a say the volumes lot removed -- back thought, to how hey, the build then normal, get the about that of the And of currents those back back Things to up HP-X for

day in we is then to thousand quarter. that as which subsided, facilities a surprise. are loop So maintenance some we non-operated currents and year. back doing several barrels think repairs The we generally those volumes Bulleit some bit that’s had that get back And a first Those a that that of get we were the we should would knew have we something exit so recompletion, about. the have volume of

It’s called back mind, Hunter. the keep Mount could in in a think We that rig come project we’ve first platform quarter. Now got running. doing a

up. which don’t But planned is some We also got the builds you These up. of this there’s need recompletion contingency And of back production, That think that, back quarter a are back building compressor guidance. builds about you’ve on getting as That’s that the that. Bulleit fine. projects the maybe then I knew So potential we a on are in that lot some victim currents. change out contingency. weather, any non-op. about fourth That of think loop back

Subash, up next and and go on talked XX over see You I we quarter to We again, drilling build on you the the that kind goes that, forward about thinking program first which XX just in rig then just this platform then where the Hunter, of start from program, months. all Mount about. And area. our have back Pompano if a work

have program. add We actually, the about We and And tiebacks. talked X We rig maybe Hunter. goes Bulleit an water of it execute about really recompletion. these Then even and talked straight, simple Ram open Mount X straight right I’ve are to barrels X,XXX the We If Powell day these successful, can facility. they own XX% of talked about these off XX,XXX the off facility. Pompano those. equivalent gross. a are one

they And What to get second can have the pretty on ‘XX, immediate half potential and we’re these excited impact of up Oxy. in side reserves. big water, but on stack open so you Puma really about. with could in [indiscernible] a we West, what doing the don’t see Those start the things ‘XX that’s impact into prospect non-op have production, how on

to to to tiebacks pretty when an the then interesting So great they EnVen with the water delivered doing catalyst a where to that’s Lobster look the go quarter program if lot of we’re platform have we’re be to assets, with have in going what first you really similar it’s of start stack our work own think tiebacks. And open They’ve go exciting. there’s they the done Field. pieces. then their program. I you rig in a together, to couple And moving trying But to

to quarter, you XX first look and going on fourth So to excited get businesses, at when XX the the a got I is it. where quarter I loves as combined next into out get Nobody little this but pretty months. choppy you the you look it, be

Subash Chandra

feel first numbers putting any quarter expectations? of you sort the Tim, comfortable around,

Tim Duncan

then about I forma a end anchors do of the capital year, get get we’re closed at can, things that year enough goes business, you the say gave through those is some pro filing, vision mean just our would put back we All hoping kind be into this that satisfied how everything to day, closing, build as which sneaks out with to hopefully, roll that we’re think S-X we through of fast the think to think guidance lot to a But And what of that I trying and or for that about closed, start going to effective. by of end when could things next be we’re will closing, build we the going working I we the pretty come of transaction this of as think out. No, of how active our do the the to we point up to is with. I January. going together programs we’re and allocation.

Subash Chandra

Okay. Look Robin. you that. perhaps and A forward follow-up, for to

know U.S. the brand globally, out I’m provides Broadly, there. that sort a cetera. et your advantages lot we’re of the sort put announcements, context competition more seeing What seeing projects Where different of you are a as of whole bunch dominating go We this? forward, that? of your others in assuming you competitive Talos projects now cetera. you CCS can So you’re But have, in don’t? et

Tim Duncan

Yes.

me with over to Let going it Subash, I’m piggyback that, and hand start and that. to maybe Rob,

we’ve our some from announcements friends I these on think seen some and and congrats of peers competitors. of

These in you X you, written think negotiate. would months to months last aren’t quick. they months and weeks, I and whatever took probably the things tell might have

we so still we try the talked I’m pretty some the by end intend I that’s the And have achieve to of that to up why year. that call milestones I about. pick excited

still there’s we’ve I putting coming what think from together. And lot us been so on a

geology very and waters. think took and it the the early into advantages, I geology state extends Gulf generally, we as we our Coast the really that understand

that us. was reflected partner in Chevron And to think I chose nimble. move with We’re We fast. why

and Texas. Southeast Just Robin for example,

paths space, things And I that and geology-based, even Robin’s really parallel provide was about in Robin around emitters, see you’re And team these your the talked as call to is on between I enhancing of talking think going storage more what some partnerships. working which permitted, is the well. enhancing so getting views to milestones our

Robin Fielder

that. echo I’ll Yes.

first some advantage leasehold, announced here, our we’re Gulf very X of across getting a got tons project U.S. look being strategic approaching what think billion of at mover X the areas. storage when metric I Coast we’ve in you COX

have And customers, so good us is additional that attracting allowing those to discussions with equity partners, be whether they partners.

As last you project Carbonvert’s into know, Bend Chevron our in we ourselves Bayou with brought quarter. in

it’s so And right now. exciting very

others We feel quarters their are seeing start a positions. few behind. are to they build I like

the us, And of continuing for it’s we permits other activities. as some progress collect and pre-FEED the we FEED so need to advancing milestones data and for on

Tim Duncan

think of amount infrastructure. enormity of The kind I unit, emissions remove obviously, would of going carbon an though, of call the places mentioned a market if the addressable storage of storage all good you just to the we’ve can that them. not level just kind to you of enormity from of good that you’re even have market, different of relative more where

on address goals emission I There broader still of of needing our achieve the announcements to you’ve us storage. going that more their achieve years is going say, from you just there’s of to our do if to CCS the to for out large for goals room and types peer X on those reading point absolutely look companies think amount to the this now, to announcements. a week, be CCS, plenty been you’re

of again, as well. those of areas big I a a think market, I it’s like think we’re some well-positioned. to those, well-positioned partnerships and we’re with So and going partner And other one enhance and in the Chevron

Subash Chandra

Okay.

you what talked about you year-end type might on specify in CCS. be? Could So announcement that category

Tim Duncan

get doing Hopefully, get of as the X multiples. got things, classic projects already you’ve kind to When you’re parallel the strat things you that with done, have filed. respect you’re permit well working in such

areas. to carbon around project your You’ve got trying you’re more get storage

certainly then think to having part I emitter you’re one X I too. And at You’ve any ultimately, got they could move that’s different speeds. preview and one It partnerships But in point, those discussions. going any places. am of from discussions of particular. And come the of different those not

can because thinking quickly is then Somebody these dragged first just on of time. somebody conversations and for we’re the the together something come pretty out negotiations

a they anticipated, first-time contracts. And there admit there’s So space. go this really type in slower happening we’ll but I a we all of the little for out They not effort. lot think than that’s are lack

So I it or X next those. of you pretty I’m don’t X which the gives those X be know milestone, of will confident but

Operator

with question will next come Water Jeff Robertson Tower from Our Research.

Jeff Robertson

will have the costs Good Morning, will water Tim, on tornado impact breakthrough? any overall operating early of

Tim Duncan

we’re Maybe liquid a think bad. A total don’t what it’s Jeff, slight I still a we’re too one. number. lot managing of doing,

So these XX,XXX wells somewhere X gross were producing between and XX,XXX barrels a day.

and I facility by synergies offset at when liquid think to of some running fees and fees that. that when of are There to right, part a so those might assets put same it’s you go EnVen uptime liquid the water. You token, still But that’s we day, substituted going is have some of tied have XX,XXX, XX,XXX barrels collect but the that oil, have think, of that down. together going to you’re again, the we’re I tremendous do -- we some has have

transparent I margins broadly. negligible be think that we’re a these again, this about just And to But it’s we things. put project, when in think important perspective. it is will it about

imagine it’s water do which wellbore. which barrels project, to can we we pretty the those million kind, ahead I million produced a already the of and XX And think XX across you decided barrels. produced since is about first the novel, when same And those wells barrels all go injection its then. prices it produce in intra-water inside

really of So is It’s a got one little only of a left. the more volume Again, water early. of years heck That’s wells. this lot project. a a

great shape. in flushing But But felt acting and project to so And The through volumes earlier our to again, model, months act. I it’s good and wells like some supposed is it’s through. speaks other broke think, probably manage. we’ll than we couple like something of a

Jeff Robertson

Can in in things like throughout And rig the those would for XXXX? you EnVen some back the terms Lobster would area? projects or I the have, spoke platform it of XXXX be comment think, they of add production also more are you half-weighted program Talos, to on respect with that of

Tim Duncan

owns. I so us asset so what this bid they and in of and tried that’s that to assets. kind come that many and of team in at you, Lobster assets back makes the looked the beat tell Yes. bid to the interesting it Field on an would that’s on like these EnVen and it them, to bid We

And work over last so of platform you they years asset. that And admired new to you can they’ve fields continue turn X focusing turn have up done in opportunities. a When we’ve got it’s can rig. environment, right a opportunities. it, one up team constructive the just to that the it’s had when They’ve X on oil the those

for at next so last they’ve see X least to that, years. an And the program reason done to active for the really any months. fantastic had We XX They’ve X job. don’t a change

you type of you And turn program you around if have and so that is where absolutely have the production. success, then

those to get way types opportunities. you a consistent of your when assets that’s have great redevelopment production So from

going you if programs at And have same time. rig at you combined look X would platform businesses, the the so

be programs starting going type in for are You year West. their rig water XX we’ll with the then going, tieback would the open like going Puma time, a that program rig. have of And high-impact stuff of next same the first have to is opportunity. non-operated to quarter X water XX-month which Those open at

chunkier the impactful I several some XX will got And if months. out, be stuff, it would call near-term you’ve it bigger but be complement what volume, then may there. gets it XX the So opportunities, works, years full but of volume it mid-term some to when very

So months. how bullish I’m on the and it over the pretty how we’re both to reserves XX rate next together and putting adds program XX

Jeff Robertson

the they drop the on before can S-X. Shane, would mechanics require in? a How question long you the SEC September XX to go with you of financials

Shane Young

would the have that XX today, refiled if do We to Yes. September we today numbers.

EnVen for have and our filing. we that those a we’re numbers, to roll into subsequent Now to file XX well September as going

Jeff Robertson

some So there’ll be at with point, amended September XX? an filing

Shane Young

That’s correct.

Jeff Robertson

Okay.

Operator

will Nate Pendleton question Stifel. next from with come Our

Unidentified Analyst

maybe question, Good Robin. first morning. My for

CCS, based that do could achieve? to you the projects, back about your have how well the indication your along offshore? versus compare Going any Gulf geology potential onshore across earlier CCS, And especially that activity on the inj for would favorable projects on Coast per

Robin Fielder

for to the construction per annum Yes, tonnes well. size the a how thanks range wellbore really about wellbore going planning injection question. and you in be of It’s about itself to X the per We’ve million been million X.X design. of

in onshore want design will differently, There build can as it’s it fairly portfolio. we construct that’s we we So where designed really are of having few a a our of across this little offshore. or of things whether bit a be approach similar, efficiencies that see the some but that many portfolio could be part beauty project one,

Tim Duncan

cage. or to we what properties Yes. in The funny It producing well. It’s well doesn’t rock thickness change. you a is when call and around go a from injecting theory really

you isn’t that different inject index you productivity well when well. that create the so a when go you And produce

areas rock might section, section have some some have thinner better and a better properties. areas but but rock properties, might a thicker So

coast, so just X generally, and And it depends, the the miles you change. off But into when can dramatically different. isn’t miles coast or that the XX geology go

Robin Fielder

Yes.

areas some rock collect that properties, confirmatory So of planning for help just go to the but data understand not we’ll some better we in also drill data will these additional the stratigraphy permitting, us many there, we’re for injection. as wells these will get

Unidentified Analyst

earlier, my talked as as project follow-up, And large the detail. Coast. about there Gulf for along CCS greenfield several Thanks you been announcements Great. have

the could if comment Given appetite And also to your speak your you you team additional Gulf for beyond interested challenges your in sites? Any those maybe adding Coast can to opportunity sites? sequestration region? surrounding is developing on your brownfield taking projects, expertise significant the

Robin Fielder

Nate. one. a great Yes, the It’s really I appreciate question.

investment So as yes, industrial there corridors, well. in a in which we’ve areas, of current got greenfield of of leasehold. these regional will lot many already established emissions there be is these But an some

export and calling projects, Coastal about hydrocarbons, Bend our been a to we’re think Port new attract large hub about still wanting Christi. but a It’s when they’ve of participate blue very we investments what project the very in Corpus of is economy. around One vocal the energy been

those preferred will these some they products on be decarbonize can thought get is, end, exported are the time, globally. fuels getting of and premium over types as you front supplier or a if So of products the a at least

yes, emitters So I’d say, with, conversations we’re categories. having certainly both in

today, looking in require solution a have who will are of getting facilities to And those place. but Sometimes existing part for new investments. final decarbonization decision their investment

gives a to leg us where And it of storage that’s have in some got region. foothold conversations. those site we’ve So a up really and the strategic a

is about point best the some to I’ll and scale. designing as bespoke think we which where your we’re an along exploring the about you’ve think solution that in We point well, developing Gulf of we diversification play for second the areas, certainly particular upfront, solutions for these of a world’s some and properties in so as say and emitter where that’s we But Coast, other some those rock we yes. source portfolio. geologic carbon And a have got have opportunities hub as customer low very can are independent, both where worlds our of great

Tim Duncan

thinking for may of enough new are that in majors is the Yes. space. you nimble, is, we’re absolutely that some solution. in can there are Gulf store, an because with right. wouldn’t the And what The and and of someone Coast the mean like smaller are, about thing and I’d that. think are Texas, be in is not exactly we Southeast folks a area hubs reiterate partnering point playing along because work maybe wants But excited just Chevron a Robin on company, I things small, construction about interesting big immediately these super-interesting only that

be flexible every trying value to expertise So more how that to I monetize out and we’re and just use low figure the to building space. think day we’re in carbon this

excited of Gulf Coast a build portfolio only hub participating Coast. then the So different but actually outside not also in I’m in point of we Gulf the and about parts sequestration, how source can

Operator

our Duncan like closing questions, Tim to to no conclude With Instructions] the we for remarks. turn remaining will back conference [Operator any question would and answer over session. I

Tim Duncan

Thanks joining the respect do the get and hopefully to finish to to only is where would big get came wait on is transaction side. announced organic have today have with that we in And and line. and wrapped the can’t the think the what we’re up we’re And the CCS side, and I the on tell drilling we a moving catalysts what across Great. trying then just through us excited capital call. on about program most for business, you not we we

with next really bigger community, going we wants to of. speak the company capable so our think be investor a going and what be I going we’re do and And the think absolutely And we’re time to like it’s it’s what to it’s look bigger and roll to out company, to going vision that extremely what exciting. of I

speaking us, really we we thanks vision next time And get those about look look company. in to know forward Thanks. pro until then, and of who and a to we forward the this get So with for how to really together interest the have of participating hold the and talk forma you. call

Operator

concluded. you today’s now The attending conference Thank has presentation. for

disconnect your lines. You may now

Talos Energy (TALO) 4 Nov 222022 Q3 Earnings call transcript