Preliminary estimated results include:

• Average daily production between 67.5 and 69.0 thousand barrels of oil equivalent ("MBoe/d") in the fourth quarter and between 64.0 and 64.5 MBoe/d in the full year 2021, representing new quarterly and annual record highs for the Company. Fourth quarter production was above the previously indicated range due to better than expected uptime and was approximately 69% oil and 77% liquids.
• Realized prices before hedges of approximately $73 per barrel of oil, $33 per barrel of NGLs and $5 per Mcf of natural gas in the fourth quarter.
• Realized cash hedge losses of approximately $100 million in the fourth quarter. This excludes unrealized mark-to-market hedge losses as of December 31, 2021.
• Cash operating and general and administrative costs are expected to be in line with the Company's previously issued financial guidance for the full year 2021.
• Capital expenditures for the fourth quarter between $63 - $68 million putting the Company near the low end of its previously issued full year capital guidance range.
• Repaid an additional $25 million of debt from the Company's credit facility in the fourth quarter, bringing the year end facility balance to $375 million, a $90 million reduction from March 31, 2021.

Talos President and Chief Executive Officer Timothy S. Duncan commented: 
"It was an outstanding fourth quarter, capping a record year for Talos with strong production, attractive oil-weighted margins and robust free cash flow. The team finished the year strong and worked hard to manage the portfolio at an extremely efficient level. We look forward to providing more details on the quarter and the full year results in our earnings release. We are excited about the strength of our business as we exit 2021. Our 2022 plan will continue to focus on generating meaningful free cash flow, which will allow us to continue to deleverage the balance sheet and increase liquidity. We also will expose the business to more high impact drilling projects in 2022. Moreover, we will be expanding our budget in carbon capture and sequestration to build upon the early wins achieved in that business. This framework best positions Talos to build long term shareholder value as a differentiated conventional, offshore-focused firm. We will maintain a strong balance sheet, invest in unique catalysts, such as our Puma West discovery and carbon capture business, and continue to actively evaluate an array of transformational M&A opportunities. Fiscal year 2022 will be an exciting year for Talos and we look forward to providing more updates very soon."

KeyFacts Energy: Talos Energy US Gulf of Mexico country profile   l   Talos Energy Mexico country profile