Talos Energy Inc (TALO) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Talos Energy third quarter 2024 earnings conference call. (Operator Instructions). This call is being recorded on Tuesday, November 12, 2024.

早安，女士們、先生們，歡迎參加 Talos Energy 2024 年第三季財報電話會議。（操作員說明）。此電話錄音於 2024 年 11 月 12 日星期二進行。

I would now like to turn the conference over to Clay Jeansonne, Head of Investor Relations. Please go ahead.

我現在想將會議交給投資人關係主管 Clay Jeansonne。請繼續。

Thank you, operator. Good morning, everyone, and welcome to our third quarter 2024 earnings conference call. Joining me today to discuss our results are Joe Mills, Interim President and Chief Executive Officer; Sergio Maiworm, Executive Vice President and Chief Financial Officer; and John Spath, Executive Vice President and Head of Operations.

謝謝你，接線生。大家早安，歡迎參加我們的 2024 年第三季財報電話會議。今天與我一起討論我們的業績的是臨時總裁兼執行長喬·米爾斯 (Joe Mills)； Sergio Maiworm，執行副總裁兼財務長；執行副總裁兼營運主管 John Spath。

For our prepared remarks, we'll refer to our third quarter 2024 earnings slide presentation that we have prepared to accompany our discussion today. It is available on Talos' website under the Investor Relations section. We encourage you to review this presentation for a more detailed look at our results and operations update.

對於我們準備好的評論，我們將參考我們在今天的討論中準備的 2024 年第三季收益幻燈片演示。您可以在 Talos 網站的投資者關係部分找到這些資訊。我們鼓勵您查看此演示文稿，以更詳細地了解我們的業績和營運更新。

Now let's start on slide 2, cautionary statements. I'd like to remind you that our remarks will include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in yesterday's press release and our Form 10-Q for the period ending September 30, 2024, which will be filed with the SEC on Tuesday, November 12, 2024.

現在讓我們從第二張投影片開始，即警告性聲明。我想提醒您，我們的言論將包含前瞻性陳述。實際結果可能與這些前瞻性陳述預期的結果有重大差異。昨天的新聞稿和我們截至 2024 年 9 月 30 日期間的 10-Q 表格中列出了可能導致這些結果出現重大差異的因素，該表格將於 2024 年 11 月 12 日星期二向 SEC 提交。

Forward-looking statements are based on assumptions as of today, and we undertake no obligation 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 GAAP to non-GAAP measures is included in yesterday's press release, which was filed with the SEC and is available on our website. And now, I'd like to turn the call over to Joe.

前瞻性陳述基於截至目前為止的假設，我們不承擔因新資訊或未來事件而更新這些陳述的義務。在本次電話會議中，我們可能會介紹 GAAP 和非 GAAP 財務指標。昨天的新聞稿中包含了 GAAP 與非 GAAP 衡量標準的對賬，該新聞稿已向 SEC 備案並可在我們的網站上查看。現在，我想把電話轉給喬。

Thank you, Clay. Good morning, ladies and gentlemen, and thank you for joining us this morning. I'm excited to be speaking with you today and proud to be here serving as Talos interim CEO. Since joining Talos Board in March of 2024 as part of the QuarterNorth acquisition, I've been impressed by the highly talented Talos team. The Board and I are working closely together and continue to be very focused on delivering long-term value to our stockholders.

謝謝你，克萊。早安，女士們先生們，感謝你們今天早上加入我們。我很高興今天能與大家交談，並很自豪能夠擔任 Talos 臨時執行長。自從 2024 年 3 月作為 QuarterNorth 收購的一部分加入 Talos Board 以來，才華橫溢的 Talos 團隊給我留下了深刻的印象。我和董事會密切合作，並繼續致力於為股東創造長期價值。

For today's call, I'll discuss some of the operational highlights for the quarter, and then I'll discuss some corporate matters. First, I'm pleased with our overall results, especially considering the challenges we faced during the quarter, including managing through four different named hurricanes affecting the Gulf of Mexico.

在今天的電話會議中，我將討論本季的一些營運亮點，然後討論一些公司事務。首先，我對我們的整體業績感到滿意，特別是考慮到我們在本季面臨的挑戰，包括應對影響墨西哥灣的四場不同名稱的颶風。

If you'll turn to slide 5, we're happy to report another consecutive quarter of record production totaling 96,500 barrels of oil equivalent per day, which was 70% oil and including the NGL barrels, a total of 80% liquids. Despite disruptions from the hurricanes, we managed to navigate the effects of those storms and achieved production that was at the high end of our third quarter guidance range.

如果您翻到投影片 5，我們很高興地報告連續一個季度的產量創紀錄，每天總計 96,500 桶油當量，其中 70% 是石油，包括 NGL 桶，總共 80% 是液體。儘管受到颶風的干擾，我們還是設法克服了這些風暴的影響，並實現了第三季指導範圍的高端產量。

We reported EBITDA of $324 million, which equates to an EBITDA netback margin of about $37 per BOE. Our netback margin was slightly lower quarter-over-quarter due primarily to lower oil prices. However, we believe we rank in the top quartile among public E&P companies in this important category.

我們報告的 EBITDA 為 3.24 億美元，相當於每桶油當量的 EBITDA 淨回利潤率約為 37 美元。我們的淨利潤率環比略有下降，主要是由於油價下跌。然而，我們相信我們在這一重要類別的上市勘探與生產公司中排名前四分之一。

We spent $119 million of capital expenditures, excluding plugging and abandonment, which in turn led to positive free cash flow generation of $122 million during the quarter. With that free cash flow, we were able to continue paying down our debt. We paid down $100 million of debt and lowered our leverage ratio to 0.9, hitting our leverage target of 1 or below ahead of schedule. Sergio will give more color on our debt pay down in a few minutes.

我們花了 1.19 億美元的資本支出（不包括堵塞和廢棄），這反過來又導致本季產生了 1.22 億美元的正自由現金流。有了自由現金流，我們就能夠繼續償還債務。我們償還了 1 億美元的債務，並將槓桿率降至 0.9，提前達到了 1 或以下的槓桿目標。塞爾吉奧將在幾分鐘內詳細說明我們的債務償還。

Looking at slide 6, I want to highlight that Talos continues to deliver on key expectations. Our third quarter results are building on the track record of our previous two quarters this year as we delivered record production results and strong EBITDA and free cash flow growth. I'm proud of the work and dedication of the Talos team as we continue to execute on our base business, including our integration of the QuarterNorth assets and employees into the Talos organization and culture.

看投影片 6，我想強調 Talos 繼續實現關鍵期望。我們的第三季業績建立在今年前兩個季度的業績記錄之上，我們實現了創紀錄的生產業績以及強勁的 EBITDA 和自由現金流增長。我為 Talos 團隊的工作和奉獻精神感到自豪，因為我們繼續執行我們的基礎業務，包括將 QuarterNorth 資產和員工整合到 Talos 組織和文化中。

We believe we're on track to realize our estimated synergies of $65 million in 2025. Moving to slide 8 and 9. We are focused on our 2024 and 2025 drilling program, which we finally have underway. We have a robust drilling program starting with the drilling of our important Katmai West number-2 delineation well in the Ewing Bank area, followed by the drilling of the high potential Daenerys exploration well, which will be located in the Walker Ridge area, followed by the Helm's Deep prospect in the Green Canyon area.

我們相信，我們預計在 2025 年實現預計 6,500 萬美元的協同效應。轉到投影片 8 和 9。我們專注於 2024 年和 2025 年的鑽探計劃，終於開始實施。我們有一個強大的鑽探計劃，首先鑽探位於尤因班克地區的重要卡特邁西 2 號探界井，然後鑽探位於沃克嶺地區的高潛力丹妮莉絲勘探井，然後鑽探綠峽谷地區的Helm's Deep 礦區。

Our plan is to utilize the Seadrill West Vela seventh generation drillship to drill these wells. In addition to the West Vela rig, we've also committed to the Transocean Deepwater Conquer, which is lined up for our Sunspear completion in early 2025. The Sunspear well is expected to commence production during the second quarter of 2025, and then we anticipate using the Conqueror rig to complete the Katmai West number-2 well beginning later in the second quarter of 2025.

我們的計劃是利用 Seadrill West Vela 第七代鑽井船鑽探這些井。除了 West Vela 鑽井平台外，我們還致力於 Transocean Deepwater Conquer 鑽井平台，該鑽井平台預計將於 2025 年初完成 Sunspear 鑽井平台。Sunspear 井預計將於 2025 年第二季開始生產，然後我們預計使用 Conqueror 鑽機於 2025 年第二季稍後開始完成 Katmai West 2 號井。

Now I'd like to touch on our discovery at Ewing Bank 953, which is on slide 10. In September, we announced that we logged approximately 127 feet of net pay, which was better than expected going into the project. Preliminary assessments indicate an estimated recoverable resource potential of approximately 15 million to 25 million barrels of oil equivalent from a single subsea tieback to the Megalodon platform, which Talos partially owns and which we believe should lead to a production flow rate of between 8,000 to 10,000 barrels of oil equivalent.

現在我想談談我們在尤因銀行 953 的發現，該發現位於幻燈片 10 上。9 月，我們宣布淨工資約為 127 英尺，優於專案的預期。初步評估表明，透過與Megalodon 平台的單一海底回接，估計可採資源潛力約為1500 萬至2500 萬桶石油當量，Talos 部分擁有該平台，我們認為該平台的生產流量應在8,000 至10,000 桶之間油當量。

Talos owns a 33% working interest in the well, and we expect first production by mid-2026. Next is our Katmai West number-2 well, which is on slide 11 of your presentation. We recently commenced drilling of the Katmai West number-2 well in late October as a down dip delineation well to further appraise the field and potentially add additional proved reserves.

Talos 擁有該井 33% 的工作權益，我們預計將於 2026 年中期首次投入生產。接下來是卡特邁西 2 號井，位於簡報的第 11 張投影片上。我們最近在 10 月底開始鑽探 Katmai West 2 號井，作為下傾探勘井，以進一步評估該油田並可能增加額外的探明儲量。

Our original plans were to spud this well earlier this year, but the rig was delayed by the previous operator and the various hurricanes in the Gulf of Mexico this past summer. Notwithstanding, our rig campaign is underway, and we still expect first production from the well around midyear 2025.

我們最初的計劃是在今年早些時候開鑽這口井，但由於前任運營商以及去年夏天在墨西哥灣發生的各種颶風，鑽井平台被推遲了。儘管如此，我們的鑽機活動正在進行中，我們仍然預計該井將於 2025 年年中左右首次生產。

Our Katmai field is a major asset and a key focus area for us. We continue to evaluate the reprocess seismic imaging of this area and see even more upside within the broader Katmai area. We estimate potential resources in the Greater Katmai area of up to 200 million barrels of oil equivalent gross. Recall, we own a 50% working dress and operate the Katmai field.

我們的卡特邁油田是我們的主要資產和重點關注領域。我們繼續評估該地區的後處理地震成像，並在更廣闊的卡特邁地區看到更多的上行空間。我們估計大卡特邁地區的潛在資源總量高達 2 億桶石油當量。回想一下，我們擁有 50% 的工作服裝並經營卡特邁油田。

Talos also owns 100% and operates the host facility, which we call Tarantula. In order to further increase throughput capacity at our Torrance facility, in late October, we started additional topside work on the platform, which should enable us to increase the daily throughput from 27,000 barrels of oil equivalent per day to 35,000 barrels of oil equivalent per day.

Talos 還擁有 100% 的股權並經營主機設施，我們稱之為狼蛛。為了進一步提高托倫斯設施的吞吐量，10 月下旬，我們開始在平台上進行額外的上部工作，這將使我們能夠將日吞吐量從每天 27,000 桶油當量增加到每天 35,000 桶油當量。

We recently completed the topside work and are currently bringing the platform back online and ramping up the volumes. We look forward to sharing more with you regarding the Katmai West number-2 well results in early 2025 once we have the well down.

我們最近完成了上部工作，目前正在使平台重新上線並增加交易量。我們期待在 2025 年初關閉卡特邁西 2 號井後與您分享更多有關該井的結果。

Turning next to our Daenerys prospect on slide 12. We are looking forward to drill and evaluate this high-impact four-way sub-salt Miocene prospect and see Daenerys as another potential Katmai-size opportunity. with estimated gross resource potential between 100 million and 300 million barrels of oil equivalent. We expect to spud Daenerys in the first quarter of 2025 following the drilling of Katmai. Talos is also the operator of Daenerys with a 27% working interest. If successful, Daenerys could be another key project to Talos' long-term organic growth potential.

轉向幻燈片 12 上我們的丹妮莉絲前景。我們期待鑽探和評估這個高影響力的四向鹽下中新世礦區，並將丹妮莉絲視為卡特邁規模的另一個潛在機會。估計總資源潛力在1億至3億桶油當量之間。我們預計在卡特邁鑽探之後，丹妮莉絲將在 2025 年第一季開鑽。Talos 也是 Daenerys 的營運商，擁有 27% 的工作權益。如果成功，Daenerys 可能成為 Talos 長期有機成長潛力的另一個關鍵項目。

Another exciting area for Talos is the Wilcox Trend in the ultra-deep waters of the Gulf of Mexico, which we highlight on slide 13. This geological trend has already produced over 1 billion barrels of oil equivalent out of 10 existing fields, and is producing over 250,000 barrels of oil equivalent each day.

Talos 的另一個令人興奮的領域是墨西哥灣超深水域的威爾科克斯趨勢，我們在幻燈片 13 中重點介紹了這一點。這種地質趨勢已經在 10 個現有油田中生產了超過 10 億桶油當量，並且每天生產超過 25 萬桶油當量。

Leading the way in this trend of the majors like Chevron, which are developing the successful adoption of high-pressure technology that is rated to safely operate at up to 20,000 psi equipment and subsidiaries. Chevron recently announced the successful start-up of their anchor field utilizing [20K] equipment, which is key in helping to unlock the potential in this lower Wilcox trend.

雪佛龍等大型企業在這一趨勢中處於領先地位，它們正在開發成功採用高壓技術的技術，該技術可在高達 20,000 psi 的設備和子公司下安全運行。雪佛龍最近宣布使用 [20K] 設備成功啟動其錨定油田，這對於幫助釋放威爾科克斯下游趨勢的潛力至關重要。

Talos has a significant acreage position in the Lower Wilcox trend, and we believe this represents a growth opportunity for us with prospects like Coronado Enterprise and Dunharrow being actively evaluated using current seismic technology.

Talos 在下威爾科克斯 (Lower Wilcox) 趨勢中佔有重要的面積地位，我們相信這對我們來說是一個成長機會，使用當前的地震技術對 Coronado Enterprise 和 Dunharrow 等前景進行積極評估。

Back in August, we acquired a 21.4% interest in the monument discovery operated by Beacon Offshore Energy. Looking at slide 14, Monument was drilled and discovery with two-well penetration and was FID for development back in February of this year. We estimate proved plus probable gross reserves of approximately 115 million barrels of oil equivalent and expect to flow production back to the Shenandoah production facility, which Beacon is expected to start up by mid-2025.

早在 8 月份，我們就收購了 Beacon Offshore Energy 經營的紀念碑發現地 21.4% 的權益。請看幻燈片 14，Monument 已透過兩井滲透進行鑽探和發現，並於今年 2 月進行了最終開發決定。我們估計探明及概算總儲量約為 1.15 億桶油當量，並預計將生產回流至 Shenandoah 生產設施，Beacon 預計該設施將於 2025 年中期啟動。

We expect first production of monument by late 2026 and with incremental upside of another 25 million, up to 35 million barrels of oil equivalent from an additional prospective drilling location on the south side of the main trapping fault in the field.

我們預計到 2026 年底將首次生產，並在該油田主要圈閉斷層南側的另一個預期鑽探地點再增加 2,500 萬桶油當量，達到 3,500 萬桶油當量。

Talos is well positioned to be a key player in this growing Wilcox play, and we intend to leverage our broader acreage position to drive future production and reserve growth.

Talos 處於有利地位，可以成為不斷增長的 Wilcox 礦區的關鍵參與者，我們打算利用我們更廣泛的種植面積地位來推動未來的產量和儲量增長。

Now before turning the call over to Sergio, I want to touch on the stockholder rights agreement that the Board put in place at the beginning of October. The rights agreement was implemented in response to control and [Prosadio Decapitales] continued accumulation of shares, resulting in a significant ownership stake of about 24%. The rights agreement is meant to protect all of our stockholders by preventing any single stockholder from taking actual or effective control of Talos without paying a premium for that control.

現在，在將電話轉給 Sergio 之前，我想談談董事會在 10 月初制定的股東權利協議。權利協議的實施是為了因應控制權，[Prosadio Decapitales] 繼續累積股份，導致擁有約 24% 的重要股權。此權利協議旨在保護我們所有的股東，防止任何單一股東在不支付溢價的情況下實際或有效地控制 Talos。

We'll continue to work with Grupo Carso, which is controlled by control [inprosadio] on our mutual investment in the Zama field in Mexico. We will continue to have open and constructive conversations with their team.

我們將繼續與 Grupo Carso 合作，該公司由我們在墨西哥 Zama 油田的共同投資控制 [inprosadio] 控制。我們將繼續與他們的團隊進行開放和建設性的對話。

Now, I'll turn the call over to Sergio to address some financial details for the quarter.

現在，我將把電話轉給塞爾吉奧，以解決本季的一些財務細節。

Thank you, Joe, and good morning again, everyone. I'm very pleased to be working closely with Joe in his role as interim CEO. But before I start, I would like to comment on the Talos Audit Committee internal review we announced with our earnings release, which has no material impact to our financial results. In September of 2024, the company received a notification from a third party suggesting that a mid-level employee was engaged in an appropriate procurement practices.

謝謝你，喬，大家早安。我很高興能與喬擔任臨時執行長密切合作。但在開始之前，我想對我們在收益發布中宣布的 Talos 審計委員會內部審查發表評論，這對我們的財務表現沒有重大影響。2024 年 9 月，該公司收到第三方通知，暗示一名中階員工從事適當的採購行為。

In response, the Audit Committee of the company's Board of Directors conducted a review of the matter with the help of independent legal counsel. This thorough review did not identify or implicate any other current or former employees. The employee in question is no longer with the company. The Audit Committee also concluded that there were no material financial impact to the company. However, in the course of this review, the company identified two material weaknesses in our control environment.

對此，公司董事會審計委員會在獨立法律顧問的幫助下對此事進行了審查。這次徹底的審查沒有發現或暗示任何其他現任或前任員工。該員工已不再在公司工作。審計委員會也得出結論認為，這對公司沒有重大財務影響。然而，在審查過程中，該公司發現了我們的控制環境中的兩個重大缺陷。

The first was due to our inability to rely on the review control performed by the subject employee with respect to the estimated future asset retirement obligations recognized on the balance sheet. This is an internal controls issue only. We concluded that the numbers we have presented in the past can continue to be relied on.

第一個原因是我們無法依賴相關員工對資產負債表上確認的預計未來資產報廢義務進行的審查控制。這只是內部控制問題。我們的結論是，我們過去提供的數字仍然可以信賴。

The second material weakness identified was due to an inappropriate segregation of duties without designing and maintaining effective monitoring controls over the timely review of expenditures. Again, no numbers previously disclosed have changed as a result of this identification.

發現的第二個重大缺陷是由於職責劃分不當，沒有設計和維護對及時審查支出的有效監控控制。同樣，先前揭露的數字並未因此次識別而改變。

Talos plans to file an amended Form 10-KA to our annual report on Form 10-K for the year ended December 31, 2023, and an amended Form 10-QA for each of the quarterly r,,eports on Form 10-Q for the quarters ended March 31, 2024, and June 30, 2024, respectively, to amend and restate the disclosures to address the material weaknesses identified at the end of 2023 in our internal controls. We expect to file these amended documents today after market in conjunction with the filing of our third quarter 10-Q.

Talos 計畫針對截至 2023 年 12 月 31 日的年度 10-K 表格提交修訂後的 10-KA 表格，並針對 10-Q 表格的每份季度報告提交修訂後的 10-QA 表格。月31 日和2024 年6 月30 日的季度，修改和重述揭露內容，以解決2023 年底在我們的內部控制中發現的重大缺陷。我們預計今天在盤後提交這些修訂後的文件，同時提交第三季 10-Q 報告。

I want to reemphasize that the numbers have not changed at all. These amendments only address new disclosures around internal controls, and investors can continue to rely on our previously disclosed numbers. As Joe emphasized, we continue to be laser-focused on executing our business, as demonstrated by our strong performance in the third quarter. We had another quarter of beating expectations across the board and reported strong results.

我想再次強調，這些數字根本沒有改變。這些修訂僅涉及有關內部控制的新披露，投資者可以繼續依賴我們先前披露的數據。正如喬所強調的那樣，我們將繼續專注於執行我們的業務，第三季的強勁業績證明了這一點。我們又一個季度全面超出預期，並報告了強勁的業績。

Looking at slide 15, if you take the $122 million of free cash flow in the third quarter, and add that to what we achieved during the first half of the year, that ramps up to $347 million of free cash flow. And as shown on slide 16, during the third quarter, we repaid $100 million of debt. Our leverage metric reached 0.9 times and we've achieved our long-term leverage ratio of below 1 times ahead of schedule.

請看投影片 15，如果將第三季 1.22 億美元的自由現金流加上我們上半年所取得的成果，自由現金流將增加至 3.47 億美元。如投影片 16 所示，第三季我們償還了 1 億美元的債務。我們的槓桿指標達到了0.9倍，並且提前實現了長期槓桿率低於1倍的目標。

Our total debt at the end of September stood at $1.375 billion. I wanted to point out that the $550 million of debt that Talos is repaying this year equates to a value accretion to shareholders of over $3 per share. In my opinion, this is a very robust form of value creation for shareholders.

截至 9 月底，我們的總債務為 13.75 億美元。我想指出的是，Talos 今年償還的 5.5 億美元債務相當於為股東帶來了每股超過 3 美元的價值增值。在我看來，這是為股東創造價值的一種非常強大的形式。

Finally, as I mentioned, we are on track to fully pay off the revolver by year-end and the Board continues to evaluate possible increases in capital return to shareholders, which will be compared to other investment opportunities the company may have in the near term to generate outsized returns to shareholders and as always, is subject to market conditions.

最後，正如我所提到的，我們預計在年底前全額還清左輪手槍，董事會將繼續評估股東資本回報的可能增加，這將與公司短期內可能擁有的其他投資機會進行比較一如既往地為股東帶來豐厚的回報，這取決於市場條件。

I'd now like to turn the call back over to Joe to wrap up about Talos' key takeaways.

現在我想將電話轉回給 Joe，以總結 Talos 的關鍵要點。

Thank you, Sergio. Before concluding, I want to touch briefly on the CEO transition and search. I'll then address my key initiatives, a few comments regarding the fourth quarter outlook, and how we're gearing up for 2025.

謝謝你，塞爾吉奧。在結束之前，我想簡單談談執行長的過渡和尋找。然後，我將闡述我的主要舉措、有關第四季度前景的一些評論以及我們如何為 2025 年做好準備。

First, the CEO transition. In making the decision to change CEOs, the Board determined after extensive deliberation that as Talos looks to the future and enters this next phase of growth a new leadership approach and a different skill set was needed to align Talos strategy and execution with the Board's view of the best path forward. I want to reiterate that the board and I recognize Tim's significant achievements advancing Talos during his tenure, and we all thank him for his contributions as CEO.

首先，CEO換屆。在做出更換執行長的決定時，董事會經過廣泛審議後確定，隨著Talos 展望未來並進入下一階段的成長，需要新的領導方法和不同的技能組合，以使Talos 的策略和執行與董事會的觀點保持一致。我想重申，董事會和我認可 Tim 在任職期間推動 Talos 的重大成就，我們都感謝他作為執行長所做的貢獻。

The Board, in partnership with a nationally recognized external search firm is moving forward in a deliberate process to select a new permit CEO and is interviewing some very impressive and seasoned executives. The Board is looking for someone with strong offshore exploration and production experience running large operations in the deepwater Gulf of Mexico and in international arenas with a demonstrated track record of disciplined execution and value creation.

董事會與一家全國公認的外部獵人頭公司合作，正在審慎地選擇新的許可證首席執行官，並正在面試一些非常令人印象深刻且經驗豐富的高管。董事會正在尋找具有豐富的海上勘探和生產經驗的人，在墨西哥灣深水和國際舞台上經營大型業務，並在嚴格的執行和價值創造方面擁有良好的記錄。

The Board is also seeking a CEO who can build on Talos' existing strengths and aligns with Talos' focus on high-margin oil-weighted assets and deepwater operations. We'll provide an update once the Board has reached a final decision.

董事會也正在尋找一位能夠發揮 Talos 現有優勢並與 Talos 對高利潤石油資產和深水業務的重點保持一致的執行長。一旦董事會做出最終決定，我們將提供最新資訊。

Now turning to my key initiatives. Following our successful post-merger integration of QuarterNorth, we expect to realize significant cost savings and synergies totaling more than $65 million, surpassing our initial expectations. As we look to the future, I have prioritized continuously assessing Talos for further opportunities to reduce costs and improve efficiencies across our operations.

現在談談我的主要舉措。在成功完成 QuarterNorth 的合併後整合後，我們預計將實現總計超過 6500 萬美元的顯著成本節約和協同效應，超出我們最初的預期。展望未來，我優先考慮不斷評估 Talos，尋找進一步降低成本和提高營運效率的機會。

As Interim CEO, I'm also prioritizing a strong focus on execution and capital discipline to generate significant free cash flow. Advancing Talos' drilling program is a key priority with specific emphasis on optimizing existing infrastructure, and expanding capacity. Additionally, we are continuing to pursue business development opportunities and invest high-value and high-impact assets with potential production and reserve growth, similar to what we did with our Monument acquisition.

作為臨時首席執行官，我還優先重視執行和資本紀律，以產生大量的自由現金流。推進 Talos 的鑽探計劃是一個關鍵優先事項，特別強調優化現有基礎設施和擴大產能。此外，我們將繼續尋求業務發展機會，並投資具有潛在產量和儲量成長的高價值和高影響力資產，類似於我們收購 Monument 的做法。

Now let's quickly look at the fourth quarter. I want to provide an update on the estimated impact on our production from last week's Hurricane Rafael in the Gulf and the previously discussed planned downtime at our torrential facility. Unfortunately, we're not free from hurricanes just yet. Hurricane season lasts from June through as late as the beginning of December.

現在讓我們快速回顧一下第四季。我想提供有關上周海灣颶風拉斐爾以及之前討論的暴雨設施計劃停機對我們生產的估計影響的最新信息。不幸的是，我們還沒有擺脫颶風。颶風季節從六月持續到十二月初。

Fortunately, Hurricane Rafael did not have a material impact to our volumes and facilities. Given the uncertain trajectory of the storm, we did take precautions to evacuate all nonessential personnel and did have to suspend our drilling activities at Katmai. A few of our facilities were shut in for a few days but we're bringing everything online as we speak. So we do not expect any material downtime from the storm.

幸運的是，颶風拉斐爾並未對我們的產量和設施產生重大影響。鑑於風暴軌跡的不確定性，我們確實採取了預防措施，疏散了所有非必要人員，並且不得不暫停在卡特邁的鑽探活動。我們的一些設施被關閉了幾天，但就在我們說話的時候，我們正在將所有設施都恢復到網路上。因此，我們預計風暴不會造成任何重大停機。

Despite the weather impact and plant shut-in of Tarantula capacity expansion, -- we have improved our 2024 production guidance with a revised estimate of 91,000 to 94,000 barrels of oil equivalent per day and lowered our 2024 total capital expenditures guidance to $510 million to $530 million.

儘管塔蘭圖拉毒蛛產能擴張受到天氣影響和工廠關閉，但我們還是提高了2024 年產量指導，將產量修正為每日91,000 至94,000 桶油當量，並將2024 年總資本支出指導下調至5.1億美元至530 美元百萬。

As we approach the end of the year and reflect on Talos progress, slide 18 is a scorecard that points out Tyle's strong performance and commitment to long-term value creation for our stockholders. Our focus on capital discipline, strategic growth, and generating significant free cash flow has not only allowed us to achieve meaningful financial milestones, but also set the stage for an important drilling campaign in 2025.

當我們接近年底並反思 Talos 的進展時，幻燈片 18 是一張記分卡，它指出了 Tyle 的強勁業績以及對為股東創造長期價值的承諾。我們對資本紀律、策略成長和產生大量自由現金流的關注不僅使我們能夠實現有意義的財務里程碑，而且還為 2025 年重要的鑽探活動奠定了基礎。

As we gear up for our 2025 capital program, we are considering various scenarios that factor in a possible softer commodity price environment. Our team is in the process of finalizing the 2025 budget, carefully evaluating project mix, and capital expenditure plans, which will be heavily dependent on commodity price trends. If oil prices decreased significantly, we have the flexibility to reduce discretionary CapEx in the latter half of 2025 and while continuing to generate meaningful free cash flow, even at lower commodity prices. We plan on announcing more detailed information on our capital budget in early 2025.

在我們為 2025 年資本計畫做準備時，我們正在考慮考慮大宗商品價格環境可能疲軟的各種情境。我們的團隊正在最終確定 2025 年預算，仔細評估專案組合和資本支出計劃，這將在很大程度上取決於大宗商品價格趨勢。如果油價大幅下跌，我們可以靈活地在 2025 年下半年減少可自由支配的資本支出，同時繼續產生有意義的自由現金流，即使大宗商品價格較低。我們計劃在 2025 年初公佈有關資本預算的更詳細資訊。

Wrapping up, I also want to reemphasize the Board's commitment to creating long-term stockholder value and ensuring we have the right leadership to make that happen. I'm here to ensure a seamless transition while continuing Talos' focus on executing its drilling programs and generating free cash flow until a permanent CEO is selected.

最後，我還想再次強調董事會致力於創造長期股東價值並確保我們擁有正確的領導力來實現這一目標。我來這裡是為了確保無縫過渡，同時繼續 Talos 專注於執行鑽探計劃和產生自由現金流，直到我選出永久執行長為止。

I have the utmost confidence in Talos' management team, its Board, and the future direction and strategy of the company. While the Board continues its search for a permanent CEO who shares Talos' long-term vision and strategy, the team and I will keep focusing on disciplined execution and doing our very best operationally.

我對 Talos 的管理團隊、董事會以及公司未來的方向和策略充滿信心。在董事會繼續尋找與 Talos 長期願景和策略相同的永久執行長的同時，我和我的團隊將繼續專注於嚴格執行，並在營運方面盡最大努力。

On a final note, I want to thank all of the Talos employees for their focus on safe operations, dedication, and unwavering commitment to tallows during this period of transition. Your efforts are crucial to our continued success, and I personally thank each of you.

最後，我要感謝所有 Talos 員工在此過渡期間對安全操作的關注、奉獻精神以及對牛脂的堅定承諾。你們的努力對於我們的持續成功至關重要，我個人感謝你們每一個人。

With that, we'll now open the line up for Q&A.

現在，我們將開始問答環節。

(Operator Instructions)

（操作員說明）

Leo Mariani, ROTH.

利奧·馬裡亞尼，羅斯。

I wanted to follow up a little bit on the production here. Just wanted to get a better sense if you guys could quantify what the downtime was in 3Q from the storms. And it sounds like, obviously, the last storm Rail had fairly limited downtime in fourth quarter, but you guys did mention turning down Tarantula. Or do you have kind of an estimate of what you're assuming for downtime in fourth quarter that's baked into the guidance?

我想跟進一下這裡的製作情況。只是想更了解你們是否可以量化第三季風暴造成的停機時間。顯然，聽起來最後一次風暴鐵路在第四季的停機時間相當有限，但你們確實提到了拒絕狼蛛。或者您對第四季度的停機時間有某種估計，並將其納入指引？

Thanks for the question. So we did have some downtime in the third quarter, right? We have multiple named storms and hurricanes coming through the Gulf. So we did have to shut in some of our facilities from time to time. We have not disclosed that publicly yet. But suffice it to say that the asset base is performing incredibly well even with those shut-ins, which were more or less in line with what we were estimating internally. -- the assets outperformed and ultimately, we ended up with a much better production number in the third quarter than what everybody was expecting.

謝謝你的提問。所以我們在第三季確實有一些停機時間，對嗎？我們有多個已命名的風暴和颶風穿越海灣。因此，我們確實不得不時不時地關閉一些設施。我們尚未公開披露這一點。但只要說即使有這些關閉，資產基礎的表現也非常好，這或多或少符合我們內部的估計。 ——資產表現出色，最終，我們第三季的產量比大家的預期好得多。

So we're very pleased with the way the assets are performing. In the fourth quarter, as Joe mentioned, we did have to shut in a few of our platforms for the hurricane Rafael we had to evacuate some nonessential personnel because the direction of the storm was very uncertain during various times there. But ultimately, the impact is not going to be that high. I think we are still very confident on the 91% to 94% for the full year, that was after we analyzed the impact of Rafael. So we feel very, very good about fourth quarter even with that storm and even with the shut-in, in our Torrential facility. Which is now complete, by the way.

因此，我們對資產的表現非常滿意。正如喬所提到的，在第四季度，我們確實不得不關閉一些平台以應對颶風“拉斐爾”，我們不得不疏散一些非必要人員，因為風暴的方向在不同時期都非常不確定。但最終影響不會那麼大。我認為我們對全年的 91% 到 94% 仍然非常有信心，那是在我們分析了拉斐爾的影響之後。因此，我們對第四季度的感覺非常非常好，即使有暴風雨，即使我們的 Torrential 設施被關閉。順便說一下，現在已經完成了。

Okay. And then with respect to activity as we roll into 2 million I mean it sounds like that, that West Vela rig is going to be running the majority of the year next year, just looking at kind of the drilling plan for the next three wells here. Just wanted to kind of get a sense. I mean, directionally, as a result of that, I'm assuming that you guys think capital will be up in '25 versus 24?

好的。然後就活動而言，當我們達到 200 萬時，我的意思是，聽起來是這樣的，West Vela 鑽井平台將在明年的大部分時間裡運行，只是看看這裡接下來三口井的鑽井計劃。只是想了解一下。我的意思是，從方向上來說，因此，我假設你們認為 25 年與 24 年相比資本會增加？

Yes. Leo, this is Joe. Yes, I'll take that one. So Yes. Look, obviously, as I mentioned earlier, the drilling program was delayed due to a previous operator in the hurricanes this summer. So that -- we got started with our drilling program a little bit later. So that means some of the shift of capital from this year moved into next year.

是的。利奧，這是喬。是的，我會接受那個。所以是的。顯然，正如我之前提到的，由於今年夏天颶風中的前操作員，鑽探計劃被推遲。因此，我們稍後就開始了鑽探計劃。因此，這意味著今年的部分資本轉移轉移到了明年。

So I think it's fair to say that our CapEx will be a little higher next year, in particular because of the West Vela -- right now, we've got a commitment to maintain the West Vela basically through kind of the helms deep program, then we have an option that we can exercise to keep it if we want to keep going or let it go at that time. So I think it's fair to say that West fellow will be with us probably until at least the end of the second quarter, possibly even into the beginning of the third quarter.

因此，我認為可以公平地說，明年我們的資本支出會更高一些，特別是因為西維拉——現在，我們承諾基本上通過某種掌舵深度計劃來維護西維拉，那麼我們就有一個選擇，如果我們當時想繼續或放棄的話，我們可以選擇保留它。所以我認為可以公平地說，韋斯特可能會和我們在一起至少到第二季末，甚至可能到第三季初。

As I mentioned earlier, we have committed to pick up the Conquer rig from Transocean. And so that will allow us to complete Sunspear. Our intentions now are to use that to also complete Katmai. We are in discussions with Transocean or whether or not we can keep that rig for the completion of Cat M. If we can't, then we'll have to use the West Vela to complete Katmai. So there's a little bit of timing issue here. So we're going to have to manage through that.

正如我之前提到的，我們已承諾從 Transocean 購買 Conquer 鑽孔機。這樣我們就能完成陽戟之城。我們現在的目的是用它來完成卡特邁。我們正在與 Transocean 討論是否可以保留該鑽機來完成 Cat M。所以這裡存在一點時間問題。所以我們必須設法解決這個問題。

But yes, so I think it's fair to say we'll keep the West Vela certainly through the end of the second quarter probably into the third quarter.

但是，是的，所以我認為可以公平地說，我們肯定會在第二季末或第三季保留西貝拉。

Greta Drefke, Goldman Sachs.

格蕾塔·德雷克，高盛。

I was just wondering if you could speak a little bit about the outlook for M&A in the Gulf of Mexico. -- both on a kind of broader basis and for Talos specifically, how do you view the opportunity set for incremental acquisitions for Talos from here? And do you expect the Gulf of Mexico to continue to be a strong area of M&A activity?

我只是想知道您是否可以談談墨西哥灣併購的前景。 ——無論是在更廣泛的基礎上，還是就 Talos 而言，您如何看待這裡為 Talos 進行增量收購的機會？您預計墨西哥灣將繼續成為併購活動的熱門地區嗎？

Yes. Thank you, Greta. I appreciate that question. look, obviously, the Gulf of Mexico is our backyard, and we know it extremely well and remain very active in it. I think M&A activity -- well, first off, the financial assurance plan that the buy administration rolled out, certainly has put a little bit of a chilling effect on M&A in the Gulf. Certainly, the -- some of the uncertainty around how that program is going to be administered I think has caused some of the majors to pull back in terms of some of their divestitures.

是的。謝謝你，格蕾塔。我很欣賞這個問題。顯然，墨西哥灣是我們的後院，我們非常了解它，並在其中保持非常活躍的態度。我認為併購活動——嗯，首先，購買政府推出的財務保證計劃肯定對海灣地區的併購產生了一些寒蟬效應。當然，我認為該計劃的管理方式存在一些不確定性，導致一些專業公司撤回了部分資產剝離計劃。

Obviously, that's been a big source of opportunity for us and others is major selling off non-core assets that we see opportunities on. Now with the Trump administration coming in, it is a little unclear how that's going to affect the financial assurance plan, I suspect that there will be changes, potentially even rolling it back some.

顯然，這對我們和其他人來說是一個重要的機會來源，主要是拋售我們看到機會的非核心資產。現在，隨著川普政府的上台，目前尚不清楚這將如何影響財務保障計劃，我懷疑將會發生變化，甚至可能會回滾一些。

I don't think they'll eliminate it, but potentially roll it back. So my hope is that we'll free up and we'll start to see some more M&A activity come back into the Gulf, which I think will be a good thing. Obviously, Talos has been a consolidator. We've grown through acquisitions. As I mentioned in my prepared remarks, we certainly are looking for additional business opportunities similar to what we did at Monument, right? We think there are some real opportunities out there for us to continue to grow.

我認為他們不會消除它，但有可能將其回滾。因此，我希望我們能夠解放出來，並開始看到更多的併​​購活動重新回到海灣地區，我認為這將是一件好事。顯然，Talos 一直是個整合者。我們透過收購實現了成長。正如我在準備好的發言中提到的，我們當然正在尋找與我們在紀念碑類似的額外商機，對嗎？我們認為我們有一些真正的機會可以繼續發展。

And look, I don't need to paint the picture for you. So today, at our size, producing 90,000 barrels plus a day we're going to produce 33 million, 34 million barrels a year. So it's incumbent on us certainly to be looking for larger projects, larger targets, similar to what we did at Katmai, very similar to what we're doing at Daenerys. We're chasing bigger objectives now, and that would include doing some larger M&A type projects. We obviously, with our Ewing acquisition last year and QuarterNorth, which have been both very highly successful for us, I don't think you'll see us take down another big company.

看，我不需要為你描繪這幅畫。所以今天，按照我們的規模，每天生產 9 萬桶，我們每年將生產 3,300 萬桶、3,400 萬桶。因此，我們當然有責任尋找更大的專案、更大的目標，類似於我們在卡特邁所做的事情，與我們在丹妮莉絲所做的事情非常相似。我們現在正在追求更大的目標，其中包括進行一些更大的併購類型項目。顯然，去年我們收購了尤因和 QuarterNorth，這對我們來說都非常成功，我認為你不會看到我們打敗另一家大公司。

Obviously, there's not a whole lot left in the Gulf. But we are trying to really focus on what we think are more high impact high-growth potential type acquisitions, very similar to what we did at Monument. So those are the type of things that we're focusing on. And I do think you'll see hopefully more opportunities out there. Look, I mean, as you know, the Gulf is not a place that anybody can do alone, not even the majors can do things alone. Everybody's got to partner up -- we all know each other. We all work well together. So I think there'll be continued opportunities for us in the Gulf of Mexico next year.

顯然，海灣地區已經所剩無幾了。但我們正在努力真正專注於我們認為更具影響力、高成長潛力的收購，這與我們在 Monument 所做的非常相似。這些就是我們關注的事情類型。我確實認為您會看到更多機會。聽著，我的意思是，正如你所知，海灣不是一個任何人都可以單獨完成的地方，即使是各大巨頭也無法單獨完成任務。每個人都必須合作──我們都互相認識。我們大家一起工作得很好。所以我認為明年我們在墨西哥灣將繼續有機會。

That's very helpful. And then my second question also is on you're achieving the leverage target and on schedule and congratulations on that point. I was wondering if you could speak a bit on your appetite to further allocate free cash flow towards incremental debt reduction from current levels into next year? And any thoughts on how you weight that relative to other applications of that capital.

這非常有幫助。我的第二個問題也是關於您是否按計劃實現了槓桿目標，對此表示祝賀。我想知道您是否可以談談您對進一步分配自由現金流以減少從當前水平到明年的債務增量的興趣？以及關於如何權衡該資本相對於該資本的其他應用的任何想法。

Brett, this is Sergio. I can answer that or I can start answering Joe can come in as well. So we are still focused on kind of repaying the revolver by year-end, and we feel very confident that we can get there. So that is the near-term focus. And beyond that, the Board will continue to evaluate how we can deploy capital or deploy free cash flow, whether that's going to be towards share repurchases or any other sort of -- or any other form of capital return to shareholders.

布雷特，這是塞爾吉奧。我可以回答這個問題，或者我可以開始回答喬也可以進來。因此，我們仍然專注於在年底前償還左輪手槍的債務，並且我們非常有信心能夠實現這一目標。這是近期的重點。除此之外，董事會將繼續評估我們如何部署資本或部署自由現金流，無論是用於股票回購或任何其他形式的股東資本回報。

We also need to weigh that to kind of the commodity backdrop and whether we should preserve liquidity versus actually actively buying back our stock and also look at other investment opportunities that we might have in the near term. We have a pretty robust pipeline of things that we could do. So all of those things are being considered actively by the Board. But I would say in the near term, the focus is to continue to repay the revolver, which we believe we're going to be successful at by the end of the year.

我們還需要權衡大宗商品的背景，以及我們是否應該保留流動性，而不是實際積極回購我們的股票，並考慮我們在短期內可能擁有的其他投資機會。我們有很多可以做的事情。因此，董事會正在積極考慮所有這些事情。但我想說，短期內的重點是繼續償還左輪手槍的債務，我們相信我們將在今年年底前取得成功。

Michael Scialla, Stifel.

麥可·斯夏拉，斯蒂菲爾。

Joe, I wanted to ask you about the CEO changes you and the Board look to fill that position. the company is historically focused on acquiring assets in the Gulf of Mexico, exploiting them and drilling an occasional high-impact well. There's obviously a big disconnect between the PV-10 value of your reserves and net of the debt and the stock price. Do you expect to change that strategy at all? I guess what are you looking for specifically with the new CEO? And where do you see that CEO taking the company?

喬，我想問您有關執行長變動的情況，您和董事會希望填補該職位。該公司歷來專注於收購墨西哥灣的資產，對其進行開發，並偶爾鑽一口高影響力的油井。顯然，你的儲備金和債務淨值的 PV-10 價值與股票價格之間存在著很大的脫節。您希望改變這項策略嗎？我猜你對新任執行長的具體期望是什麼？您認為這位執行長會將公司帶到何處？

Yes. No, great question. Thanks, Michael. Yes, look, as I said earlier, I mean the Board is being very deliberate. Look, we are talking to and interviewing a number of really, really high very impressive seasoned executives, guys that I would say or individual, I would say that have real gravitas and that have been a part of building large organizations. Today, again, as I said earlier, Talos is now a large company producing 33 million, 34 million barrels a year, so we're going to have to chase bigger targets.

是的。不，很好的問題。謝謝，麥可。是的，正如我之前所說，我的意思是董事會非常謹慎。看，我們正在與一些非常非常非常令人印象深刻的經驗豐富的高管進行交談和採訪，我想說的是這些人或個人，我想說的是，他們有真正的莊嚴，並且是建立大型組織的一部分。今天，正如我之前所說，Talos 現在是一家年產 3,300 萬桶、3,400 萬桶的大公司，因此我們將不得不追求更大的目標。

And look, it's fair to say we have to even look beyond our shores into international arenas to continue to pursue larger targets. So in terms of change in the strategy, I don't see the new CEO altering the strategy materially, meaning we will still continue to be an acquirer, but we also are going to have to pursue larger projects into the ultra-deepwater plus even into the international arena.

公平地說，我們甚至必須把目光投向國際舞台，以繼續追求更大的目標。因此，就策略變化而言，我認為新任執行長不會對策略做出重大改變，這意味著我們仍將繼續成為收購方，但我們也將不得不在超深水甚至超深水領域尋求更大的項目進入國際舞台。

Historically, the company has not done that. And quite frankly, it has not had the opportunity to really pursue more international-type projects Obviously, we have Mexico, great discovery in Zama. We're seven years into it and still have not FID-ed it. So a lot of frustration there, as you can imagine, world-class asset but we don't get any credit for it today. So we definitely stepped on some land mines there, and that's going to be part of what the new CEO is going to help us avoid stepping on landmines as we think about international projects.

從歷史上看，該公司從未這樣做過。坦白說，它沒有機會真正追求更多國際型項目。我們已經投入了七年，但仍未對其進行最終決定。正如你可以想像的那樣，這裡有很多挫敗感，世界級的資產，但我們今天卻沒有得到任何榮譽。因此，我們肯定在那裡踩到了一些地雷，這將是新執行長將幫助我們在考慮國際項目時避免踩到地雷的一部分。

So fundamentally, I don't see the strategy changing dramatically. I think, if anything, there's an advancement of the strategy. But clearly, we have to be chasing bigger objectives now. So that's where the new CEO will come in to help us.

因此從根本上來說，我認為該策略不會發生巨大變化。我認為，如果有的話，那就是策略的進步。但顯然，我們現在必須追求更大的目標。這就是新任執行長將為我們提供幫助的地方。

Appreciate that detail. You mentioned about CapEx directionally being up next year. I guess with Katmai 2 coming on, Sunspear, this recent Brutus recompletion Obviously, you have given guidance here on '25 production yet, but just relative to '24, can you say directionally where you think that will be?

欣賞這個細節。您提到明年資本支出將定向上升。我想隨著Katmai 2 的到來，Sunspear，最近的Brutus 重新完成，顯然，你已經在這裡給出了關於'25 生產的指導，但只是相對於'24，你能說一下你認為會在哪裡嗎？

Yes. Look, I mean -- so as I touched on, we are -- I'm a big believer in building budgets that you focus on what's discretionary and what's nondiscretionary we are concerned about a potentially softer commodity price environment. You will -- you know as well as I do that everything we do is long lead times, right?

是的。聽著，我的意思是——正如我所談到的，我們是——我堅信在製定預算時，你應該關注可自由裁量的內容和不可自由裁量的內容，我們擔心大宗商品價格環境可能會走軟。你會——你和我一樣知道，我們所做的一切都需要很長的交貨時間，對吧？

So it's not like -- like some of the onshore guys that can pivot on a dime, we have to make long-term decisions almost regardless of price just because these projects take one to two to three years to develop. So -- but we have tried to or are working on a budget that we've got a pretty fixed program in the first half of the year, obviously, with the West Vela rig committed.

因此，這不像一些可以立即轉向的陸上公司，我們必須做出長期決策，幾乎不考慮價格，只是因為這些項目需要一到兩到三年的時間來開發。所以 - 但我們已經嘗試或正在製定預算，我們在今年上半年有一個相當固定的計劃，顯然，西維拉鑽機已經投入使用。

We're looking at really the second half of the year, which really impacts more of the 2026 profile. So in terms of what I see today, I mean, I think volumes will probably be in the flat to up, and that's kind of where we're focusing on right now. Obviously, we're doing everything we can to accelerate where we can. If prices stay where they are, let's call it something with a seven in front of it. I think you'll see us hopefully accelerate if you see prices drop back into the 6 or even 5s, you'll definitely see us look to slow activity down in order to protect the balance sheet and maximize free cash flow.

我們真正關注的是今年下半年，這確實會對 2026 年的情況產生更多影響。因此，就我今天所看到的情況而言，我的意思是，我認為成交量可能會持平到上升，這就是我們現在關注的重點。顯然，我們正在盡一切努力加快速度。如果價格保持不變，我們就稱之為前面帶有「7」的名稱。我認為，如果您看到價格回落至 6 甚至 5，您肯定會看到我們希望加速成長，您肯定會看到我們希望放慢活動速度，以保護資產負債表並最大化自由現金流。

Paul Diamond, Citi.

保羅戴蒙德，花旗銀行。

Just wanted to touch quickly on the facility expansion in currently. You mentioned going from 27 to 35. I just want to get some idea of, I guess, how ratable is that further? Is there -- like what type of constraints would it be to expand that facility or any others incrementally?

只是想快速了解目前的設施擴建情況。你提到從 27 歲到 35 歲。我只是想知道，我想，這進一步的評價有多高？是否存在—例如逐步擴展該設施或任何其他設施會受到哪種類型的限制？

Yes. Thank you, Paul. I'll take that. Yes. Look, we spend a lot of time talking about that. We -- so first off, the turnaround is basically complete. We're starting to bring the volumes back up and slowly ramping them. We do have to commission a new vessel, so we won't be able to really hit kind of the full rate until -- and full rate right now is probably around 32,000 barrels a day until sometime in early December.

是的。謝謝你，保羅。我會接受的。是的。看，我們花了很多時間談論這件事。我們——所以首先，轉變基本上已經完成。我們開始恢復銷量並緩慢增加。我們確實必須委託一艘新船，所以直到 12 月初的某個時候，我們才能真正達到全速生產，目前的全速生產可能約為每天 32,000 桶。

We will have to -- when we drill cap line number-2. And right now, obviously, we're going to bump up both Katmai 1 East, which is our East well as well as Katmai West number-1. We're drilling the number-2 well, which, again, we hope to be online, say, second half of next year.

當我們鑽第 2 號線蓋時，我們必須這樣做。現在，顯然，我們將提升卡特邁 1 東（我們的東部）和卡特邁西 1 號。我們正在鑽探 2 號井，我們再次希望該井能夠上線，例如明年下半年。

At that point, we'll be able to hopefully bring all up to full rate at Between now and then, we certainly are trying to figure out if there's incremental ways for us to debottleneck that facility. Part of our challenge really is the flow line between the manifold, i.e., the ocean floor back to the host facility, that's part of our constraint. Is that pipeline itself is kind of limited about how much volumes we can push through it. As I touched on, we are continuing to work our seismic reprocessing in this area. And we are seeing additional opportunities that if they materialize, we think there could be incremental drilling in this area.

到那時，我們將有望使一切達到全速。我們面臨的部分挑戰實際上是歧管之間的流線，即海底返回主機設施的流線，這是我們約束的一部分。該管道本身對於我們可以通過它的流量有一定的限制嗎？正如我所說，我們正在繼續在該地區進行地震後處理工作。我們看到了更多機會，如果這些機會成為現實，我們認為該地區可能會進行增量鑽探。

If that's the case, then probably one of the things we're going to have to evaluate, and we are actively looking at it, is laying what we call a loop line, right, and an additional flow line from the manifold back to the Tarantula facility. In addition to that, we'll have to expand. -- expanding Tarantula, somewhat of our problem is we are constrained by the deck space. There's only so much room on the facility for us to be able to add additional equipment.

如果是這樣的話，那麼我們可能必須評估的事情之一，我們正在積極研究它，就是鋪設我們所說的循環線（右），以及從歧管回到總管的附加流線。除此之外，我們還必須擴展。 ——擴大狼蛛，我們的一些問題是我們受到甲板空間的限制。設施上只有這麼多空間可供我們增加額外的設備。

We have -- I came via the quarter North acquisition, so I was on that board, and we had evaluated even building a sister kind of host platform next to it. quite frankly, that's more CapEx that we want to spend. The right answer is trying to figure out if we can maximize kind of the deck space at Tarantula.

我們——我是透過 Quarter North 收購而來的，所以我是該董事會成員，我們甚至評估了在旁邊建立一個姐妹類型的主機平台。坦白說，我們希望花費更多的資本支出。正確的答案是試圖弄清楚我們是否可以最大化塔蘭圖拉毒蛛的甲板空間。

We have plenty of export pipeline capacity to get off of Tarantula, our real problem is just the deck space and how much equipment can we put on the facility itself. So a lot of work is going on into that as we speak. I mean, literally, we met on it. We meet earned about every week as we're trying to figure out how we can ramp up the facility there.

我們有足夠的出口管道能力從塔蘭圖拉毒蛛離開，我們真正的問題只是甲板空間以及我們可以在設施本身上放置多少設備。因此，就在我們說話的時候，很多工作正在進行中。我的意思是，從字面上看，我們是在這件事上認識的。我們每週都會見面，因為我們正在努力弄清楚如何擴大那裡的設施。

One of the challenges we always face though and really our philosophy is we hate to build -- overbuild the facility, right, where you're building a facility for kind of a peak rate that will only last 6 months or less or a year. And that's a lot of capital.

我們始終面臨的挑戰之一，實際上我們的理念是，我們討厭建造——過度建造設施，對吧，你正在建造一個設施，以達到峰值速率，但只能持續6 個月或更短時間或一年。這是大量的資本。

So we tend to try and not build to the maximum, but we try and build to a longer term, trying to hold the facility flat for a longer period of time. We think that's a better use of capital, a better return on investment, and quite frankly, sometimes better for the reservoir. So all that's going into our analytics as we think about how we can expand that facility and bring on incremental capital or incremental production. Look, I'd love to get the facility up to about 40,000 barrels a day. And if I could hold it at 40,000 barrels a day, I think that would be an absolutely excellent outcome for us.

因此，我們傾向於嘗試不建造最大的建築，但我們嘗試建造更長期的建築，試圖在更長的時間內保持設施平坦。我們認為這可以更好地利用資本，獲得更好的投資回報，坦白說，有時對水庫來說會更好。因此，當我們思考如何擴展該設施並帶來增量資本或增量生產時，所有這些都將納入我們的分析中。看，我很想讓該設施每天生產約 40,000 桶。如果我能將產量保持在每天 40,000 桶，我認為這對我們來說絕對是一個極好的結果。

So trust me when I tell you, there's a lot of smart people here working on that challenge. But again, I think, ultimately, for us to really ramp up the production even more, we'll have to consider laying an additional flow line, which I will tell you is not a cheap endeavor.

所以請相信我，這裡有很多聰明人正在努力應對這項挑戰。但我再次認為，最終，為了讓我們真正進一步提高產量，我們將不得不考慮鋪設一條額外的生產線，我會告訴你這不是一項廉價的努力。

Understood. I appreciate the clarity. And just one quick one on the hedging book. As you guys look out towards an uncertain pricing environment '25 and beyond, I guess how does that -- or how do you see that impacting your rate of hedge, you're willing it to do so? And should we expect to see any modulation up or down from where we currently sit.

明白了。我很欣賞這種清晰度。簡單介紹一下對沖帳本。當你們展望25年及以後不確定的定價環境時，我想這會如何影響你的對沖率，你願意這麼做嗎？我們是否應該期望看到我們目前所處位置的任何調整？

Paul, this is Sergio. Thanks for the question. So I mean we are fairly consistent with our hedging practices. So I don't think we're necessarily going to deviate that much from it. We have a fair bit of '25 production already hedged in the 70s. We're always going to look to continue to add to the hedge book as we go along. So like I said, I don't think we're going to change materially how we do it.

保羅，這是塞爾吉奧。謝謝你的提問。所以我的意思是我們的對沖做法相當一致。所以我認為我們不一定會偏離那麼多。我們有相當一部分 25 世紀的生產已經在 70 年代進行了對沖。隨著我們的發展，我們總是會尋求繼續增加對沖帳簿。所以就像我說的，我認為我們不會實質地改變我們的做法。

I think it's a fairly consistent way and it's been very successful in the past. So we're going to continue to do that. But as I said, we have a fair bit, almost half of our 2025 production already hedged in the 70s and a little bit of not too far from there.

我認為這是一種相當一致的方式，並且在過去非常成功。所以我們將繼續這樣做。但正如我所說，我們 2025 年產量的相當一部分、幾乎一半已經在 70 年代進行了對沖，還有一點距此不遠。

(Operator Instructions).

（操作員說明）。

Michael Furrow, Pickering Energy Partners.

麥可‧弗羅，皮克林能源合作夥伴。

I'd like to go back to your comments, Joe, surrounding the capital flexibility in the back half in a softer pricing environment. So I recognize these are some long-term projects, but at some point, a decision needs to get made whether to go forward with that discretionary spending. So my question is, when does that decision get made? And does that look like a specific project gets pushed out in time? Or is this sort of the cutting of a high-risk project from the '25 plan?

喬，我想回到您的評論，圍繞較軟的定價環境中後半部分的資本靈活性。因此，我認識到這些是一些長期項目，但在某些時候，需要做出是否繼續進行可自由支配支出的決定。所以我的問題是，這個決定什麼時候會做出？這看起來像是一個特定的項目被及時推出了嗎？還是這是從「25」計畫中刪除一個高風險項目？

Yes. That's a great question. Thank you, Michael. Yes, look, so Yes, I would describe it, and I think you've heard us talk about this before. We always -- we're moving forward with every project that we think we would want to drill next year, and that includes getting permits and even spending capital on some long lead items. The projects that would be discretionary in the second half of the year, I would describe those as the mid-market rigs -- so these are going to be not our big drillships that we need to bring in, but what we call the mid-market -- and there's certainly more rig availability in that market.

是的。這是一個很好的問題。謝謝你，麥可。是的，看，所以是的，我會描述它，我想你以前聽過我們談論過這個。我們總是——我們正在推進我們認為明年想要鑽探的每個項目，其中包括獲得許可，甚至在一些長期項目上投入資金。下半年可自由支配的項目，我將這些項目描述為中端市場鑽井平台——所以這些將不是我們需要引進的大型鑽井船，而是我們所說的中端市場鑽井平台。市場肯定有更多的鑽孔機可供使用。

So these tend to be projects that are off of existing infrastructure that we can tie back to our existing infrastructure fairly quickly or to other host platforms that we either have PHAs we're already in discussions with those host operators. So in terms of timing, look, we pretty much have to start making decisions really by the end of the first quarter for those projects to kind of be go or no go. So it's not like we can pivot, we've got to commit to the rigs.

因此，這些專案往往脫離了現有基礎設施，我們可以相當快速地連接到我們現有的基礎設施，或連接到我們擁有 PHA 的其他主機平台，我們已經在與這些主機營運商進行討論。因此，就時間安排而言，我們幾乎必須在第一季末之前真正開始做出決定，以決定這些項目是進行還是不進行。所以我們不能改變方向，我們必須致力於鑽機。

So I would say by the time we get to, call it, March, we're either committing to some of that capital or we're not. There's probably a little bit of -- it may drag into even the beginning of the second quarter that we can make some of those decisions, but we can't drag it out too long. So again, unlike my onshore counterparts where they can kind of pick up and drop rigs pretty quickly, we have to work a little closely with the existing rig providers in order to get those rigs secured.

所以我想說，當我們到達三月時，我們要么承諾投入一些資金，要么不承諾。可能有一點——甚至可能會拖到第二季度初，我們才能做出一些決定，但我們不能拖得太久。因此，與我的陸上同行不同，他們可以很快地拿起和放下鑽機，我們必須與現有鑽機提供商密切合作，以確保這些鑽機的安全。

Great. That's helpful color. But my next question is just on the impacts of Hurricane season. Look, it's good to see the assets performing at the upper end of guidance and beating consensus oil production estimates despite such a busy hurricane season. We always ask about the impacts that shut in that evaluations have on production, but I'd like to take a different approach and ask how it impacts sort of the financial costs of evacuations and production shut-ins.

偉大的。這是有用的顏色。但我的下一個問題只是關於颶風季節的影響。看起來，儘管颶風季節如此繁忙，但很高興看到這些資產的表現處於指引的上限，並且超出了普遍的石油產量預期。我們總是詢問評估對生產的影響，但我想採取不同的方法，並詢問它如何影響疏散和生產關閉的財務成本。

So if there's any color you could provide on sort of the operating or capital costs that are tied to such frequent evacuations during the hurricane season would be great.

因此，如果您能提供與颶風季節如此頻繁的疏散相關的運營或資本成本的任何信息，那就太好了。

Yes. No, that's a great question, Michael. And I may ask John path to give you a little bit of color, but I'll take the first cut at it. Yes, look, every time a storm brews up, John and his team, we've got a whole group of guys that we pulled together very quickly to evaluate decisions around shut-ins and evacuations we always err on the side of conservative and being safe. We never want to put people at risk in case they're the storm and you know how these storms are. I mean, candidly, Hurricane Rafael, I'm not sure in my lifetime, I've seen a category 1, category 2 store, be so erratic and just kind of float around the Gulf.

是的。不，這是一個很好的問題，麥可。我可能會要求約翰·帕斯給你一點顏色，但我會先做決定。是的，看，每次風暴醞釀時，約翰和他的團隊，我們都會很快召集一整群人來評估有關關閉和疏散的決定，我們總是犯保守的錯誤安全的。我們不想讓人們處於危險之中，以防他們成為風暴，而你知道這些風暴是怎樣的。我的意思是，坦白說，颶風拉斐爾，我不確定在我的一生中，我見過 1 類、2 類商店，非常不穩定，就像在海灣周圍漂浮一樣。

So it was highly frustrating as we were trying to make decisions about shut-ins. And obviously, we had to suspend drilling operations at Katmai because of the states -- but look, there is a real cost every time we have to evacuate. I mean, case in point, we're like -- I mean, honestly, we've had over 500 people, nonessential people on some of our platforms over the past couple of weeks, in particular around the Torrential turnaround. So you can imagine, when we say we're evacuating nonessential personnel, that is not a minor statement, okay?

因此，當我們試圖做出關閉的決定時，這非常令人沮喪。顯然，由於各州的原因，我們不得不暫停卡特邁的鑽探作業 - 但看，每次我們必須撤離時都會產生真正的成本。我的意思是，舉個例子，我們就像——老實說，過去幾週，我們的一些平台上有超過 500 名無關緊要的人，特別是在 Torrential 轉型期間。所以你可以想像，當我們說我們正在疏散非必要人員時，這不是一個小聲明，好嗎？

That is involving a lot of helicopters and a lot of boats having to get people off of these platforms and take them onshore and a lot of times put them up in hotels so that we can bring them back as soon as the storms are over. So there is a real cost every time we have one of these storms. So that's kind of where we are. In terms of quantifying it, I mean, it varies, obviously, from storm to storm. So it's hard for me to give you a number. But I wanted to give you a little sense that it is not an inconsequential number. Michael, did I lose you?

這涉及到大量的直升機和船隻，必須將人們從這些平台上救出並帶上岸，很多時候將他們安置在酒店，以便我們可以在風暴結束後立即將他們帶回來。因此，每次發生這種風暴時，我們都會付出實際代價。這就是我們現在的處境。就量化而言，我的意思是，顯然，每次風暴的影響都是不同的。所以我很難給你一個數字。但我想讓你們知道，這並不是一個無關緊要的數字。邁克爾，我失去你了嗎？

No, you got me. That's good detail.

不，你抓住了我。這個細節很好啊

Thank you. We do not have further questions at this time. I would now like to turn back the call over to Joe Mills. Please.

謝謝。目前我們沒有進一步的問題。我現在想把電話轉給喬·米爾斯。請。

Great. Thank you. All right. Well, ladies and gentlemen, look, first off, I really, really appreciate everybody's time. I hope this was helpful. Obviously, as I said, earlier, I'm really excited and really proud to be here. it's just Talos is just an extraordinary organization. The employees, we have some really high talented employees here, and I couldn't be more proud to be a part of this organization.

偉大的。謝謝。好的。女士們先生們，首先，我真的非常感謝大家抽出時間。我希望這有幫助。顯然，正如我之前所說，我對來到這裡感到非常興奮和自豪。只是 Talos 是一個非凡的組織。員工們，我們這裡有一些非常有才華的員工，我為成為這個組織的一員而感到無比自豪。

I do want to thank the employees. They've really embraced me. Welcomed me into the organization. We have a lot to do here. We're super excited, not only about what we've got going on now, but really into 2025. So again, thank you. Sergio and I definitely plan on being on the road. Hopefully, we get a chance to see some of you while we're on the road and can answer more questions in the future. So with that, we'll let everybody -- we'll let you go.

我確實要感謝員工。他們真的擁抱了我。歡迎我加入組織。我們在這裡有很多事情要做。我們非常興奮，不僅對我們現在所發生的事情感到興奮，而且對 2025 年的發展感到非常興奮。再次感謝您。塞爾吉奧和我肯定計劃上路。希望我們有機會在旅途中見到你們中的一些人，並能在將來回答更多問題。因此，我們將讓所有人——我們將讓你離開。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。