Talos Energy, Inc. (NYSE:TALO) Q3 2023 Earnings Conference Call November 7, 2023 10:00 AM ET

Company Participants

Sergio Maiworm - SVP & CFO

Timothy Duncan - Founder, President, CEO & Director

Robin Fielder - EVP, Low Carbon Strategy & Chief Sustainability Officer

Conference Call Participants

Nathaniel Pendleton - Stifel, Nicolaus & Company

Michael Scialla - Stephens Inc.

Subhasish Chandra - The Benchmark Company

Jeffrey Robertson - Water Tower Research

Operator

Hello, and welcome to the Talos Energy Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

I would like now to turn the conference over to Sergio Maiworm, Chief Financial Officer and Senior Vice President. Please go ahead.

Sergio Maiworm

Thank you, operator. Good morning, everyone, and welcome to our third quarter 2023 earnings conference call. Joining me today to discuss our results are Tim Duncan, President and Chief Executive Officer; and Robin Fielder, Executive Vice President, Low Carbon Strategy and Chief Sustainability Officer.

Before we start, 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 most recent annual report on Form 10-K and our quarterly reports on Form 10-Q filed with the SEC. 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 filed with the SEC and available on our website.

And now I'd like to turn the call over to Tim.

Timothy Duncan

Thank you, Sergio, and welcome, everyone, to our call. We appreciate you listening in. I plan to briefly cover some of the key operational highlights of the quarter and then turn it over to Sergio for final commentary ahead of Q&A.

During the third quarter, we were pleased with our advancements on several aspects of our business. We continue to advance our Lime Rock and Venice discoveries toward first production. We closed our previously announced Zama transaction in Mexico with Grupo Carso. We reached a new milestone with our first EPA Class VI permit application and filed our second EPA Class VI permit application for 2 additional wells.

So quite a bit was accomplished since our last call, and we're excited about the direction of our business. On the drilling and completions capital program, we are in the process of completing the Venice and Lime Rock wells before bringing them online in early 2024. Additionally, we are drilling another development well from our Lobster platform, which is successful to bring incremental production late in 2023 and help contribute to production growth in 2024. Beyond our operator rig program, we are also participating in several interesting nonoperated projects with our partners in the basin. The Marmalard well operated by Murphy and was successful over this past weekend. We expect production to commence in the first quarter of 2024. The odd job subsea pump project operated by Kosmos continues to progress and remains on track to be in service by mid-2024. Lastly, the well, operated by Beacon is scheduled for a rig intervention in the fourth quarter of 2023 to reinstate production in early 2024.