Talos Energy, Inc.

Thank you for watching. Thank you for watching. Thank you. Good morning, ladies and gentlemen, and welcome to the Talos Energy third quarter 2026 earnings call. At this time online, then listen down remote. Following the presentation, we will conduct a question and answer session. If at any time during this call it requires immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, November 4th, 2026. I would like to turn the conference over to Kyle Sani, Manager, Investor Relations. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and welcome to our third quarter 2026 earnings conference call. Joining me today to discuss our results are Paul Goodfellow, President and Chief Executive Officer, Zach Dailey, Executive Vice President and Chief Financial Officer, and Bill Langin, Executive Vice President, Exploration and Development. Please refer to our third quarter 2026 earnings presentation that is available on our website under the investor relations section for a more detailed look at our results and operations. Before we start, I would like to remind you that our remarks will include forward-looking statements subject to various cautionary statements identified in our presentation and earnings release. Actual results may differ materially from those contemplated by the company. Factors that could cause these results to differ materially are set forth in yesterday's press release in our Form 10-K for the period ending December 31, 2025, filed with the SEC. Forward-looking statements are based on assumptions as of today, and we undertake no obligations to update these statements as a result of new information or future events. During this call, we may present GAAP and non-GAAP financial measures. A reconciliation of certain non-GAAP to GAAP measures is included in yesterday's press release, which was furnished with our Form 8K filed with the SEC and is available on our website. And now I would like to turn the call over to Paul.

Thanks, Kyle, and good morning to everyone joining us on the call today. As always, I want to start by thanking our employees for their continued commitment to safety and environmental stewardship. The results Zach and I will discuss today are a direct reflection of the talent, drive, and relentless focus on execution across the OneTalus team. The third quarter continues to demonstrate the strength of the business we are building. We delivered another quarter of consistent execution from the base business completed our Gulf of America bolt-on acquisition while keeping leverage at 0.6 times, raised full-year production guidance, and significantly bolstered our portfolio of development and exploration opportunities. Taken together, these results reflect continued progress across all three pillars of our strategy and further strengthen the foundation to be a leading pure-play offshore EMP. I want to begin, as I always do, with the base business. which continues to provide the foundation for everything we do. Oil production averaged approximately 69,000 barrels per day, and total production averaged approximately 92,000 barrels of oil equivalent per day, both exceeding guidance. That was driven by strong base business performance, the absence of storm-related downtime, and an initial contribution from the Gulf of America acquired asset following closing on September 22nd. Importantly, even after adjusting for weather and excluding the acquisition contribution, production was at the high end of our guidance range. That clearly signals the underlying strength of the business. Those operational results, combined with premium oil realizations, translated into strong adjusted free cash flow of $186 million and support another increase to our full year 2026 production guidance. Zach will walk through the details later in the call. These results also reflect our optimal performance plan, and I'm pleased to report that we have delivered on our full year $100 million target by the end of the third quarter. We expect these business improvements to be lasting and carry into next year and beyond. They have been broad-based across the organization, spanning margin enhancement, capital efficiency, commercial opportunities, and organizational improvements. Delivering the target does not change our focus. continuous improvement is embedded in how we operate, and we will keep looking for opportunities to improve production and uptime, spend capital more efficiently, and reduce costs across the portfolio. This is exactly what we mean when we talk about improving the business every day. I'm incredibly proud of what the team has accomplished this year. These results were delivered because our teams choose excellence each and every day. We saw that again in early October ahead of Hurricane Isaiah's. Our priority was the safety of our offshore personnel and protecting the environment, which meant shutting in production and evacuating our platforms. I want to thank our operations team for their commitment to living our values. Once it was safe to return, we confirmed that there was no damage to our facility and shifted our focus to restoring production. The increased full-year guidance Zach will discuss includes the fourth quarter hurricane impact of approximately 7,000 barrels of oil equivalent per day which was within the weather allowance incorporated into our full-year plan and guidance. In addition to the outstanding performance in production operations, TALIS continues to distinguish itself through best-in-class execution, and we advance several important projects during the quarter. That execution starts with drilling. When we benchmark our recent operated wells, including Daenerys, Sunspear, Katmai West No. 2, and CPN, They all rank in the top quartile of Gulf of America industry performance, and the recent Daenerys appraisal well, drilled to a total vertical depth of nearly 29,500 feet, ranked in the top decile. Full credit goes to our drilling team. Drilling and completing faster and more efficiently translates directly into lower well costs and better returns, and is a clear example of what we mean when we describe Thales as a technically differentiated offshore operator. At CPN, we achieved first oil in September as planned and the well is performing in line with expectations. CPN is an operated infrastructure-led tieback to Nakika and is a good example of the type of high return, short cycle opportunity that underpins our development program. At Brutus, we commenced the development program during the third quarter with operations from the platform-based rig. Our team has optimized the plan to incorporate batch drilling and completions, which we believe improves execution efficiency and project returns. The program has also expanded from four to five wells with the addition of another sidetrack opportunity. We expect first oil beginning in the second quarter of 2027 with production phased in through the fourth quarter as the wells come online. At Monument, the first development well TD'd in June and found approximately 250 feet of net oil pay in line with predrill expectations. and the second well spud in early September following the operator's rigged deployment to one of its own fields. First oil is now expected in the first quarter of 2027 and our view of the project economics is unchanged. Now let me turn to Daenerys. We spud the appraisal well in early July and drilled to target depth in late August, meeting our appraisal objectives. The well tested the northern portion of the prospect and encountered oil pay in multiple sands. We collected samples that are undergoing testing to further assess the reservoir and fluid properties. Daenerys is a multi-year appraisal program. The additional appraisal activity is needed to better understand the reservoir. As planned, the next step in the program is an appraisal sidetrack in 2027. Together, the data from this year's well and next year's sidetrack will help inform the path forward. In parallel, our teams continue to evaluate a range of development concepts. from a tieback to existing infrastructure to a standalone host. We're also building out a broader opportunity set around Daenerys. In late 27 or early 2028, we expect to drill an exploration well targeting a prospect we acquired in the December 2025 Big Beautiful Gulf lawn lease sale. If successful, it has the potential to be co-developed with Daenerys. Turning to the Gulf of America bolt-on acquisition, On September 22nd, we closed the transaction alongside our partner Ridgewood. This added a 50% working interest and operatorship in the Coulomb field, along with a 25% non-operated working interest in the BP-operated Nikika platform and four associated fields. The final net cash purchase price was $420 million, less than our original expectations. Integration is well underway, and we're pleased with how the assets are performing to date. The acquisition adds high-quality, oil-weighted production that enhances our scale, margins, and free cash flow generation, while providing infrastructure-led growth opportunities that leverage our core strengths. I also want to spend a moment on why we believe the value of this acquisition extends well beyond the acquired reserves. Thales has a proven track record of acquiring mid-life assets and extending field life. As an example, across Rampal, Pompano, and Brutus, Cumulative production since acquisition combined with the remaining 2P reserves at year-end 2025 represents more than a 40% uplift relative to the 2P reserves at the time of acquisition. That uplift came from extending field life and identifying additional resources through infrastructure-led opportunity. We intend to apply that same playbook to the acquired assets here. We have already identified multiple development and infrastructure-led exploration opportunities including the operated Coulomb Development Well, which we expect to compete for capital in 2027. Beyond the Gulf of America, we continue to progress our newest exploration and development opportunities. In Mexico, we continue to work with the operator to advance Zama towards an expected FID in 2027, while also progressing our new opportunity in Block 29. In Block 29, we are progressing the scenario approval required to close the farming transaction for that block while working with Repsol towards FID in 2027. With two oil discoveries holding more than 200 million barrels of oil equivalent of gross recoverable resource and similar exploration potential on the block, this remains a development-led opportunity with meaningful upside. And we continue to work with Repsol to plan an exploration well late in next year. In Honduras, we commenced the first ever 3D seismic program across a portion of the deepwater acreage in October, less than three months after signing the agreements. This initial deepwater 3D program has now been completed, and we expect the first process data in the early part of 2027. The broader position is equivalent to roughly 700 Gulf of America blocks, with the existing main Cape All Discovery validating a working petroleum system in this large underexplored basin. While these opportunities are at different stages of maturity, that is by design. Our portfolio now spans a strong base business in the Gulf of America, combined with pre-FID development and longer cycle expiration. The speed with which our teams and partners are moving them forward continues to be a key differentiator for us here at Thales. The common theme across the quarter is disciplined execution. We deliver strong operational and financial performance from the base business, close an acquisition that increases our deep water scale, completed the non-core gas-weighted shelf divestment and advanced the deeper portfolio of development, appraisal, and exploration opportunities. We carry significant momentum through year-end and into 2027. With that, I will now turn the call over to Zach to discuss our financial results, updated guidance, balance sheet and capital allocation in greater detail, as well as some early thoughts on 2027.