Company Participants - The conference call included key participants such as Clay P. Jeansonne (VP of Investor Relations), Gregory M. Babcock (VP, Interim CFO & Chief Accounting Officer), and Paul R. A. Goodfellow (President, CEO & Director) [1][3] Conference Call Overview - The Talos Energy Second Quarter 2025 Earnings Conference Call was held on August 7, 2025, and was recorded for future reference [2] - The call was initiated by Clay Jeansonne, who welcomed participants and introduced the key executives present for the discussion [3] Earnings Presentation - A detailed look at the company's results and operations update was provided through a prepared earnings presentation available on Talos' website under the Investor Relations section [4]

Report Overview 1. Report Industry Investment Rating - No investment rating information is provided in the report. 2. Report Core View - The oil market may shift to a weaker market dominated by pessimistic supply - demand fundamentals due to the weakening geopolitical risk premium and the expected loose supply - demand outlook after the peak season. The fuel oil, low - sulfur fuel oil, asphalt, and LPG markets are all affected by the weakening of the oil market, with different market characteristics and trends [2][3][4]. 3. Summary by Related Catalogs Crude Oil - Overnight international oil prices declined, with the SC09 contract dropping 2.24% during the day. Trump imposed a 25% tariff on India for buying Russian oil, to be implemented in 21 days. But the risk of Russian oil supply has weakened, and the geopolitical risk premium has significantly decreased. The supply - demand outlook for crude oil after the peak season remains loose, and the oil market may turn to a weaker trend [2]. Fuel Oil & Low - Sulfur Fuel Oil - SC led the decline in the oil product market, and the weakness of fuel - related futures continued. The arrival of fuel oil in the Asian market in August was abundant, and the ship - bunkering demand lacked support. The Singapore inventory remained high, and the diesel crack spread in Singapore continued to decline. The low - sulfur fuel oil market was weak, and the high - low sulfur fuel oil price difference continued to shrink [2]. Asphalt - SC led the decline in the oil product market. The asphalt supply - side increase space is currently considered neutral, and the demand has a weak reality but a repair expectation. The asphalt's unilateral trend follows crude oil, and the BU crack spread has rebounded significantly recently [3]. LPG - After the CP was lowered, the spot market was weak. The North American market was under pressure, and the import cost continued to put pressure on the domestic market. The domestic demand has bottom - support, and the LPG futures are running at a low level with the fundamental negatives having landed [4].

Group 1 - The event "China-Saudi Dialogue: Co-creating Youth" was organized by Sinopec News Agency and Sinopec International Petroleum Engineering Company, featuring 16 students from King Fahd University of Petroleum and Minerals and over 20 Chinese youth representatives [1][3] - Participants showcased traditional cultural elements, including Chinese tea culture and calligraphy, while Saudi youth presented their red tea culture, Arabic calligraphy, and performed traditional dances and poetry recitations [3] - Attendees expressed a desire for increased cultural exchanges between China and Saudi Arabia to promote long-term development of bilateral relations [3] Group 2 - Saudi students participated in a 54-day summer social practice activity organized by the National Engineering Company in collaboration with Saudi Aramco during their stay in China [3]

Group 1 - WTI September crude oil futures rose by $0.78, an increase of over 1.19%, closing at $66.03 per barrel [1] - Brent September crude oil futures increased by $0.67, nearly a 0.98% rise, closing at $69.18 per barrel [1] - Abu Dhabi Murban crude oil futures are currently up by 0.98%, priced at $72.06 per barrel as of 02:34 Beijing time [1] Group 2 - NYMEX August natural gas futures rose by over 0.55%, closing at $3.0940 per million British thermal units [1] - NYMEX August gasoline futures closed at $2.1042 per gallon [1] - NYMEX August heating oil futures closed at $2.4129 per gallon [1] Group 3 - As of Thursday (July 24), ICE UK natural gas futures fell by 0.84% [1] - TTF benchmark Dutch natural gas futures decreased by 1.23% [1] - ICE EU carbon emission trading allowances (futures prices) increased by 1.17% [1]

Group 1 - The domestic futures market for crude oil is experiencing a downward trend, with fuel oil futures showing a decline of approximately 2.61% [1] - The main contract for fuel oil opened at 2839.00 yuan/ton, fluctuating between a high of 2839.00 yuan and a low of 2754.00 yuan [1] - Analysts from Everbright Futures express a bearish outlook on the future price movements of high and low sulfur fuel oil, suggesting a weak and volatile market [1] Group 2 - Newhu Futures reports that OPEC+ has increased production by 548,000 barrels per day in September, contributing to a decline in crude oil prices [2] - The recent drone attack has led to the shutdown of the Russian refinery in Kuybyshev, impacting supply dynamics [2] - Inventory levels are rising in Singapore (up 6.7%), ARA (up 5.2%), and Fujairah (up 21.7%), while U.S. residual fuel oil inventory has decreased by 1.2% [2]

8月8日消息，近日，国务院国资委公布2024年度中央企业对标世界一流企业价值创造行动考核结果，中 国石油再次获评A级。自2023年度该考核实施以来，中国石油已连续两次获评A级。 炒股就看金麒麟分析师研报，权威，专业，及时，全面，助您挖掘潜力主题机会！ 近年来，中国石油聚焦提升增加值、功能价值、经济增加值、战略性新兴产业收入和增加值占比、品牌 价值等"五个价值"，统筹推进价值创造行动与生产经营管理重点工作，价值创造行动取得明显成效。国 内油气勘探新获一批重大发现和重要突破，油气当量产量持续增长，加快产业转型升级步伐，在深地钻 探、"数智石油"建设等领域取得多项进展。 责任编辑：杨赐 特别是在实现油价同比下降的情况下，中国石油的经营业绩连续3年创历史新高。（刘丽丽） ...

| Market | 国投期货 | 能源 日报 | | --- | --- | --- | | 操作评级 | | 2025年08月07日 | | 原油 | ☆☆☆ | 高明宇 首席分析师 | | 燃料油 | ☆☆☆ | F0302201 Z0012038 | | 低硫燃料油 | | 李祖智 中级分析师 | | 沥青 | ななな | F3063857 Z0016599 | | 液化石油气 文☆☆ | | | | | | 王盈敏 中级分析师 | | | | F3066912 Z0016785 | | | | 010-58747784 | 【原油】 隔夜国际油价回落，SC09合约日内跌0.97%。周三特朗普因印度购买俄油对其加征25%关税，但将于21天后执 行,同时在8月8日俄乌停火协议截止日前的2天,特朗普表示美俄会谈成果积极，俄罗斯或通过空中停火等形式 达成阶段性协议。种种迹象表明美国持续威胁的对俄制裁最终落地或不及预期，地缘风险溢价大幅消退。上周 美国EIA原油库存超预期下降302.9万桶，但旺季后原油供需展望仍偏宽松，关注美国对俄制裁的最终落地情 况,油市或再次转向悲观供需面主导的偏弱行情。 【燃料油&低硫 ...

Report Industry Investment Rating - Not provided in the report Core View - The weakening US job market has heightened expectations of a Fed rate cut, and with global central banks continuing to buy gold, precious metal prices are likely to rise and difficult to fall. Investors are advised to buy on price dips. [1] Summary by Relevant Catalogs Precious Metal Market Data - **Shanghai Gold**: Closing price was 782.50 yuan/g, with a change of 1.18 yuan compared to the previous day; trading volume was 191,341.00, down 2,012.00 from the previous day; open interest was 215,212.00, down 3,440.00 from the previous day; inventory was 36,045.00 (in ten - gram units). [1] - **Shanghai Silver**: Closing price was 9,182.00 yuan/kg, with a change of 107.00 yuan compared to the previous day; trading volume was 372,060.00, down 728,580.00 from the previous day; open interest was 373,376.00, up 2,266.00 from the previous day; inventory was 1,208,033.00 (in ten - gram units). [1] - **COMEX Gold Futures**: Closing price was 3,431.80 dollars/ounce, with a change of - 3.20 dollars compared to the previous day; trading volume was 143,644.00, down 6,488.00 from the previous day; open interest was 340,930.00, up 4,008.00 from the previous day; inventory was 38,679,703.32 (in troy ounces). [1] - **COMEX Silver Futures**: Closing price was 37.94 dollars/ounce, with a change of 0.10 dollars compared to the previous day; trading volume was 38,956.00, down 2,669.00 from the previous day; open interest was 122,977.00, down 711.00 from the previous day; inventory was 506,311,741.34 (in troy ounces). [1] Market News and Macroeconomic Information - Trump ordered an additional 25% tariff on India, and the US plans to impose an additional 15% tariff on the existing tariff base in the US - Japan trade agreement [1] - Trump's advisors are pushing to temporarily fill the vacant positions on the Fed board, and Fed official Cook hinted at a possible rate cut in the near future [1] - The US Treasury may issue about $50 billion in bonds in Q3, which may cause a liquidity shock. US consumer - end inflation has risen, but due to the possible significant downward revision of new non - farm payrolls from May to July, the expectation of a Fed rate cut in September, October, and December has increased [1] - The ECB paused rate cuts in July, and the market expects the ECB to cut rates once by the end of 2025. The Bank of England may cut rates 2 - 3 times by the end of 2025, and the Bank of Japan still has the possibility of raising rates by the end of 2025 [1] Trading Strategy - Investors are advised to buy on price dips. For London gold, focus on the support level around $3,150 - $3,250 and the resistance level around $3,500 - $3,700; for Shanghai gold, focus on the support level around 730 - 760 yuan and the resistance level around 800 - 850 yuan; for London silver, focus on the support level around $34 - $36 and the resistance level around $37 - $40; for Shanghai silver, focus on the support level around 8,500 - 8,700 yuan and the resistance level around 9,100 - 9,500 yuan [1]

Financial Data and Key Metrics Changes - The company reported record quarterly returns to shareholders, returning nearly $290 million this quarter, which is more than 260% of its free cash flow [5] - Adjusted EBITDAX for the quarter was $324 million, exceeding consensus expectations, driven by strong commodity price realization, higher than expected production, and lower operating costs [11] - Free cash flow generated was $109 million, or $165 million before changes in working capital, demonstrating the resilience and cash-generating power of the company's assets [11] - Year-to-date costs were down approximately 11% from 2024, reflecting lower general and administrative expenses, non-energy operating costs, and lower taxes other than on income [10] Business Line Data and Key Metrics Changes - Net total production was recorded at 137,000 BOE per day, with average realizations at 97% of Brent before hedges and 100% after hedging [9] - The company has reduced nearly all of its 2025 operating expense items by about 7% compared to the original outlook, despite anticipating higher energy costs and increased activity levels in the second half [10] Market Data and Key Metrics Changes - The California Energy Commission's response to Governor Newsom's directive to ensure fuel reliability during the energy transition was positively received, indicating a collaborative effort with refiners and the industry [7] - The state is actively working to improve the oil and gas permitting process, with expectations for additional details once the legislature reconvenes in mid-August [8] Company Strategy and Development Direction - The company is focused on advancing its carbon and power platforms while returning meaningful capital to shareholders, indicating a commitment to both operational performance and shareholder value [4] - The company is uniquely positioned to support California's energy transition, providing cleaner and more affordable in-state production while advancing decarbonization solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving regulatory environment in California, indicating constructive conversations regarding oil and gas permitting [21] - The company expects to raise full-year production guidance, lower both cost and drilling capital expectations, and increase its adjusted EBITDAX forecast [13] Other Important Information - The company has implemented ERA-related merger synergies ahead of schedule, fulfilling a $235 million target three months early, with a net present value of these synergies estimated at approximately $1.4 billion over the next ten years [6] - The company has slightly over $200 million remaining under its current share repurchase authorization, which was recently extended through June 2026 [13] Q&A Session Summary Question: What is the company's view on the current regulatory changes in California regarding oil and gas permitting? - Management expressed optimism about the dynamic changes in California, indicating that the state is actively looking to resolve the permitting situation and stabilize local production [21][23] Question: What is driving the underlying capital efficiency improvements? - The combination of strong assets with operational leadership has led to exceptional performance, allowing the company to maintain capital efficiency and lower maintenance capital expectations [28] Question: How does the company plan to allocate free cash flow going forward? - The company plans to remain opportunistic with share repurchases while balancing other strategic priorities, including redeeming the remainder of its 2026 notes [42] Question: Can you provide an update on the Class six permitting process? - The company is on track to complete construction by the end of the year and is ready to inject early in 2026, pending final regulatory approvals [46] Question: What is the current status of the Elk Hills power plant and potential power deals? - The company is focused on providing an update before the end of the year, with ongoing interest and conversations regarding power deals [58]

Financial Data and Key Metrics Changes - The company reported record quarterly returns to shareholders, returning nearly $290 million this quarter, which is more than 260% of its free cash flow [5] - Adjusted EBITDAX for the quarter was $324 million, exceeding consensus expectations, driven by strong commodity price realization, higher than expected production, and lower operating costs [12] - Free cash flow generated was $109 million, demonstrating the resilience and cash-generating power of the company's assets [12] - Year-to-date, the company has returned nearly $422 million to shareholders, with a record $287 million returned in the second quarter [13] Business Line Data and Key Metrics Changes - The company recorded net total production of 137,000 BOE per day, with average realizations at 97% of Brent before hedges and 100% after hedging [10] - First half 2025 costs were down approximately 11% from 2024, reflecting lower general and administrative expenses, lower non-energy operating costs, and lower taxes other than on income [11] - Total capital was $56 million, with 60% allocated to high return workovers and sidetracks [11] Market Data and Key Metrics Changes - The California Energy Commission is actively working to improve the oil and gas permitting process, which could provide greater flexibility for the company to access its extensive inventory [8] - The state is collaborating with refiners and the industry to ensure fuel reliability during the energy transition [7] Company Strategy and Development Direction - The company is focused on advancing its carbon and power platforms while returning meaningful capital to shareholders [4] - The company is strategically positioned to support California's energy transition, providing cleaner and more affordable in-state production while advancing decarbonization solutions [18] - The company plans to get California's first CCS project into operation, with construction authorization received from the EPA [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving regulatory environment in California and the potential for new oil and gas permits [22] - The company expects to raise full-year production guidance, lower both cost and drilling capital expectations, and increase its adjusted EBITDAX forecast [14] - Management highlighted the importance of local production to address California's energy challenges, emphasizing the need for affordable and clean energy [23] Other Important Information - The company has slightly over $200 million remaining under its current share repurchase authorization, which was recently extended through June 2026 [14] - The company is committed to driving long-term shareholder value and providing shareholder returns, having returned about $1.5 billion in dividends and share repurchases since the inception of its program [38] Q&A Session Summary Question: What is the company's view on the regulatory changes in California regarding oil and gas permitting? - Management is optimistic about the changes and believes the state is actively looking to resolve the permitting situation to stabilize local production [22][24] Question: What is driving the underlying capital efficiency improvements? - The combination of strong assets and operational leadership has led to improved performance, with maintenance capital expected to be at the lower end of the previously guided range [28] Question: How does the company plan to allocate free cash flow going forward? - The company plans to remain opportunistic with share repurchases while balancing other strategic priorities, including redeeming the remainder of its 2026 notes [40] Question: What is the status of the Class six permitting process? - The company is encouraged by the progress and expects to receive incremental Class six permits in the near term [72] Question: How does the company view the potential Elk Hills power deal? - The company is focused on making the right deal that adds significant value to shareholders and is optimistic about the interest in clean power solutions [50][54]