
Talos Energy headquarters in Houston, TX. (Source: Shutterstock)
Talos Energy Inc. said Dec. 27 it has completed its fall 2022 semi-annual redetermination process, with its current borrowing base raised 36% to $1.5 billion from $1.1 billion.
The borrowing base increase will be effective upon the closing of Talos’ $1.1 billion acquisition of EnVen Energy Corp. expected in February 2023. Talos’ liquidity is expected to be $1 billion with no debt maturities until 2026 upon the EnVen acquisition’s closing.
The company said its bank commitments will also increase by approximately 20% to $965 million from $806 million. The maturity of the facility will also be extended from November 2024 to March 2027.
This season’s redetermination process brings favorable interest rate margins, an increased letters of credit sublimit, flexibility to focus on carbon capture and sequestration (CCS) and favorable administrative terms, the company said in the release.
“The increased commitments and extended maturity to 2027 expected upon closing of the EnVen acquisition demonstrate the strong support of our lender group as we continue to grow our upstream business, expand our CCS portfolio and mature our key catalysts,” said Shane Young, Talos executive vice president and CFO.
Talos is an E&P company currently in the U.S. and offshore Mexico focused on upstream oil and gas production and CCS development.
Recommended Reading
What's Affecting Oil Prices This Week? (Feb. 3, 2025)
2025-02-03 - The Trump administration announced a 10% tariff on Canadian crude exports, but Stratas Advisors does not think the tariffs will have any material impact on Canadian oil production or exports to the U.S.
Oil, Gas and M&A: Banks ‘Hungry’ to Put Capital to Work
2025-01-29 - U.S. energy bankers see capital, generalist investors and even an appetite for IPOs returning to the upstream space.
Chevron Targets Up to $8B in Free Cash Flow Growth Next Year, CEO Says
2025-01-08 - The No. 2 U.S. oil producer expects results to benefit from the start of new or expanded oil production projects in Kazakhstan, U.S. shale and the offshore U.S. Gulf of Mexico.
Baker Hughes to Supply Equipment for NextDecade’s Rio Grande LNG
2025-03-11 - Baker Hughes will provide turbine and compression for NextDecade’s trains at Rio Grande LNG.
Murphy Shares Drop on 4Q Miss, but ’25 Plans Show Promise
2025-02-02 - Murphy Oil’s fourth-quarter 2024 output missed analysts’ expectations, but analysts see upside with a robust Eagle Ford Shale drilling program and the international E&P’s discovery offshore Vietnam.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.