Value Creation Catalysts
Talos’s current valuation implies a steep discount to net asset value (NAV). Management estimates the company’s year-end 2022 pro forma proved reserves have a gross PV-10 value of ~$5.5 billion (~$4.8 billion net of asset retirement obligations [ARO]) based on oil and natural gas prices of $75/bbl and $3.50/Mcf. Adjusting for March 31, 2023, balance sheet items, leaves an estimated NAV of ~$3.6 billion, or $28.38/share. The shares are currently trading at a 51% discount to this NAV. Year-end 2022 pro forma proved reserves exclude any value from the unbooked reserves at the Zama located in shallow waters offshore Mexico. Talos has agreed to sell a 49.9% ownership stake in its Mexican subsidiary to a wholly owned subsidiary of Grupo Carso. The transaction establishes a base valuation for the Zama discovery between $250 million and $263 million, equating to ~$2 per Talos share...Talos Energy is a holding company. Through its subsidiaries, the company is an exploration and production company with operations in the United States Gulf of Mexico and offshore Mexico. The company's focus in the United States Gulf of Mexico is the acquisition of deep water assets with existing infrastructure and the exploration, exploitation and development of such assets in key geological trends.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.