Talos reaffirms $1.1 billion borrowing base and extends maturity to grow carbon capture business
(WO) — Talos Energy Inc. announced on Dec. 27 that its current borrowing base was reaffirmed at $1.1 billion as part of its semi-annual redetermination process for the fall of 2022.
Effective upon closing the previously announced acquisition of EnVen Energy Corporation, which is expected by early February of 2023, Talos’ borrowing base will automatically increase to $1.5 billion from the current $1.1 billion. Bank commitments will increase to $965 million from the current $806 million, an increase of approximately 20%.
Further, the maturity of the facility will be extended to March 2027 from the current November 2024. Talos will have more favorable interest rate margins, an increased letters of credit sub-limit, increased flexibility to grow its carbon capture and sequestration ("CCS") business and more favorable administrative terms.
At the closing of the EnVen acquisition, Talos's liquidity is expected to be approximately $1 billion with zero debt maturities until 2026.
Talos Executive Vice President and Chief Financial Officer Shane Young commented, “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.”