Talos Energy Inc. (NYSE:TALO) Q4 2022 Earnings Call Transcript

That’s why we’re very bullish about 2024 and ’25 and ’26. It’s also why we don’t have to add another project specifically in 2023 that was gas weighted put that later into our portfolio when the market is more constructive. I still think though, we want to continue to have a portion of our capital allocated towards things that can be really high impact, which is what Puma West can be, which is what Pancheron can be. We don’t want to overweight our capital program with that, but it always makes sense when you’re an operator in the Gulf of Mexico to expose yourself to those opportunities. So very bullish about the successes we had and the impact they’re going to have, still want to always make sure we have a blended portfolio of the things we’re doing going forward.

Shane Young: Yes, Jeff, I would just say I think the advantage of that and having sort of the size and scale and the ability to deploy capital program that is diverse and has different risk characteristics is we’re trying to develop a bit of a conveyor belt. So as we get to the end of this year, beginning of next year we got Lime Rock, we got a Venice coming online that’s going to add fresh production to the mix, we’re drilling a rig lead in Pancheron this year that would hopefully to the extent we have success, begin to come on kind of in the next stage beyond that. I think each and every year we’d like to be in a position to expose the shareholders to that kind of opportunity.

Sergio Maiworm: I think what changes brought up to as we always have to understand is our cycle times are different than what you see sometimes in the onshore unconventional. What might take three, four months to bring the well online and the onshore can take 12 to 18 to 24 months and so that’s why we wanted to make sure we were reiterating a broader compounded annual growth rate on the production side, even if again some years you’re taking a step back to move forward. It’s just the nature of the cycles of how we bring on subsea wells.

Jeff Robertson: Okay. Along those lines Tim, the EnVen assets also added a lot of infrastructure that has a lot of unused currently unused capacity, right? How do you assess the opportunities to either add third-party volumes through those if there’s a third-party activity in the area? And as you all know, look at those assets to start to try to define or develop prospects. Is that more of a tough 2024, ’25, ’26 event?

TimDuncan: No, actually I don’t think so. I would tell you, just from a business development standpoint. I think the pace has picked up as other operators in the area, know that we’re controlling those assets and we’re looking at other opportunities, and so we hit very hard as soon as we close. For example, do we launch some additional reprocessing projects around those platforms, which is exactly what we did around Ram Powell that led to Venice and Lime Rock discovery? So the approach we took to the strategy of our infrastructure in the past is exactly the approach we’ll take these and look they had some inventory going in, that we’re trying to firm up as well. So we’re extremely bullish on it, and again it’s consistent with the strategy and what we talked about this.

It creates a lower carbon emitting barrel, we’re using the infrastructure, we’re focused on subsea tiebacks, I would expect Prince, Lobster you’re going to see hopefully Brutus/Glider, you’re going to see these assets be a part of the discussion on where we’re drilling locations in the next two to three years. I’m fully confident of that.