Talos Energy Enters Agreement to Amend Credit Agreement, Decrease Borrowing Base

On December 4, 2024, Talos Energy Inc. (NYSE:TALO) announced in an 8-K filing that it had entered into an agreement to amend its Credit Agreement. The company, along with its subsidiary Talos Production Inc. and various other subsidiaries, signed the Borrowing Base Redetermination Agreement and Eleventh Amendment to the Credit Agreement. This amendment, dated as of May 10, 2018, aims to decrease the borrowing base to $925.0 million and the total commitments to $925.0 million.

As part of the agreement, an availability cap has been implemented. This cap dictates that if the aggregate exposure of all lenders under the Credit Agreement exceeds $800 million at any time post the Eleventh Amendment, lenders holding at least two-thirds of the aggregate commitments must approve any additional loan or issuance of extra credit.

A copy of the Eleventh Amendment has been attached as Exhibit 10.1 to the Current Report on Form 8-K and is incorporated by reference. Talos Energy states that the description of the Eleventh Amendment in the report is a summary and refers interested parties to the complete text for detailed information.

Moreover, the financial obligation arising from this agreement has been categorized under Item 2.03 of the filing, which pertains to the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant. The details provided in Item 1.01 of the 8-K report have been incorporated into Item 2.03 by reference.

Talos Energy Inc. outlined the financial statements and exhibits pertinent to this agreement in the filing. Exhibit 10.1 includes the Borrowing Base Redetermination Agreement and Eleventh Amendment to the Credit Agreement dated December 4, 2024.

This significant move by Talos Energy Inc. to amend its Credit Agreement marks a strategic financial decision aimed at optimizing its financial arrangements and commitments moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Talos Energy’s 8K filing here.

Talos Energy Company Profile

Talos Energy Inc, through its subsidiaries, engages in the exploration and production of oil, natural gas, and natural gas liquids in the United States and Mexico. It also engages in the development of carbon capture and sequestration. Talos Energy Inc was founded in 2011 and is headquartered in Houston, Texas.