Pla2na/iStock via Getty Images Talos Energy Inc. (NYSE:TALO) may see production increases in 2024 from the Sunspear discovery as well as Venice and Lime Rock. In my view, thanks to the CO2 storage market growing at close to 21% CAGR and TALOS's storage portfolio, the company may receive significant demand for the stock. There are obvious risks associated with future crude price volatility or lower oil reserves than expected, however, TALO does look very cheap at its current valuation. Talos Energy Talos Ene ...

HOUSTON, Dec. 22, 2023 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that it was named as the apparent high bidder on 13 deepwater blocks comprising approximately 74,000 gross acres (approximately 48,000 net acres) in the U.S. Gulf of Mexico Outer Continental Shelf Federal Lease Sale 261 held by the Bureau of Ocean Energy Management ("BOEM") on December 20, 2023. Leases for all blocks remain subject to normal-course, formal award by the Department of the Interior. ...

Financial Data and Key Metrics Changes - In Q3 2023, Talos Energy generated production of 63,700 barrels of oil equivalent per day, with 76% being oil and 83% liquids, leading to $383 million in revenue and $255 million in adjusted EBITDA, resulting in an EBITDA netback margin of approximately $45 per BOE [14][15] - The company reported a net loss of approximately $2 million or $0.02 net loss per diluted share, while adjusted net income was around $19 million or $0.15 adjusted net income per diluted share [15] - Capital expenditures for the quarter were $181 million in the upstream business and about $14 million in the CCS business, resulting in positive free cash flow generation of approximately $9 million [15][12] Business Line Data and Key Metrics Changes - The upstream business generated significant revenue and EBITDA, while the CCS business is progressing with the filing of multiple EPA Class VI permit applications [10][11] - The company is advancing its Lime Rock and Venice discoveries toward first production, with expectations for production growth from these projects in early 2024 [10][22] Market Data and Key Metrics Changes - The company anticipates production for Q4 2023 to be between 66,500 and 68,500 barrels of oil equivalent per day, aligning with the low end of the full-year guidance of 66,000 to 71,000 barrels of oil equivalent per day [26] - The company expects cash operating and G&A expenses for the full year to be between $410 million and $430 million, with capital expenditures tracking at the low end of the guided range of $650 million to $675 million [26] Company Strategy and Development Direction - Talos Energy plans to reduce capital investments in 2024 compared to 2023, focusing on generating free cash flow and evaluating reinvestment levels [16][17] - The company is actively pursuing M&A opportunities that align with its strategies and enhance shareholder value, while also maintaining a strong credit position [12][71] Management's Comments on Operating Environment and Future Outlook - Management expressed frustration with government energy policies that seem to favor certain sectors over traditional energy forms, emphasizing the need for balanced energy policy [19][35] - The company is optimistic about production growth in 2024, despite a tempered long-term growth trajectory, and aims to increase shareholder returns and debt reduction [16][17] Other Important Information - Talos closed a sale of a 49.9% minority equity stake in its Talos Mexico subsidiary for approximately $75 million, with an additional $50 million due upon first production [65] - The company is exploring capital raises for its Low Carbon Solutions business and expects to benefit from the Department of Energy's investment in a regional hydrogen hub in Texas [63][71] Q&A Session Summary Question: Can you provide thoughts on the further delay of announced lease sales? - Management expressed frustration over the delay and the impact on the industry, highlighting the need for timely lease sales to support energy development [29] Question: What are the expectations for production growth and spending in 2024? - Management indicated a focus on free cash flow generation and a potential slowdown in capital spending, with expectations for production growth despite reduced investment [38][39] Question: Can you provide details on the partnership with Repsol and its implications? - The partnership is seen as a long-term portfolio generation strategy, with expectations for new opportunities arising from the collaboration [36][78] Question: What is the status of the CCS business and its marketability? - Management noted that the partnership with Equinor enhances the marketability of the CCS project, with ongoing discussions with potential emitters [80][85] Question: How does the company view M&A opportunities in the current market? - Management is optimistic about M&A opportunities in the Gulf of Mexico, emphasizing the importance of being a trusted counterparty for potential sellers [61][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q | Delaware | 82-3532642 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 333 Clay Street, Suite 3300 | | | Houston, TX | 77002 | | (Address of principal executive offices) | (Zip Code) | Registrant's telephone number, including area code: (713) 328-3000 Se ...

Financial Data and Key Metrics Changes - Talos generated production of 73,000 barrels of oil equivalent per day, leading to $367 million in revenue and $253 million in adjusted EBITDA in the upstream business [8][30] - Adjusted EBITDA netback margin was close to $40 per BOE, placing Talos in the top quartile among public E&P companies [9] - Capital expenditures during the second quarter were $189 million in the upstream business, with a positive free cash flow generation of $13 million [10][31] - Net income for the quarter was approximately $14 million or $0.11 per diluted share, with adjusted net income of approximately $12 million or $0.09 per diluted share [30] Business Line Data and Key Metrics Changes - Upstream capital expenditures for the quarter were $189 million, while CCS CapEx was approximately $1.9 million [31] - The company made additional progress in its opportunistic share buyback program, repurchasing approximately $21 million or 1.5 million shares [33] Market Data and Key Metrics Changes - Pricing from production in the second quarter reflected softening in commodity markets, with realizations of approximately $70 per barrel of oil and NGLs at approximately 23% of realized oil prices [30] - Natural gas production realized over $2.40 per Mcf during the same period [30] Company Strategy and Development Direction - Talos is focused on high-margin upstream operations and has made a successful discovery in the Sunspear exploitation prospect, with first oil expected in the next 18 to 24 months [11][12] - The company is also advancing its CCS business, having filed its first EPA Class VI permit application for the Harvest Bend CCS project [19] - Talos is actively evaluating business development opportunities that fit its skill sets and strategies, including potential M&A activities [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering guided financial results for the remainder of the year, tracking in the lower half of upstream CapEx range [26] - The company anticipates a strong trajectory for its business, with a focus on reducing leverage and enhancing shareholder value [35] Other Important Information - Talos was recognized for its commitment to ESG and sustainability, receiving the 2023 Hart Energy ESG Award for a Public Producer [23] - The company expects to pay down debt and reduce its RBL balance in the second half of the year following the partial sale of Talos Mexico [33] Q&A Session Summary Question: What type of production is expected from the Sunspear discovery? - Management expects production to be in the range of 8,000 to 12,000 barrels equivalent per day gross, with a potentially higher oil cut than initially anticipated [42][47] Question: How does recent M&A in the CCS space impact ongoing capital raise for TLCS? - Management noted increased interest in CCS platforms and highlighted the company's prime storage sites adjacent to emission sources, which enhances its attractiveness [109] Question: What is the impact of the service environment in the Gulf of Mexico on capital investment decisions? - Management acknowledged rising rig rates and tight market conditions but emphasized the company's focus on its assets and the potential for moderated investment [111]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38497 Talos Energy Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 82-3532642 | | --- | --- | | (State or ...

Talos Energy Inc. (NYSE:TALO) Q1 2023 Earnings Conference Call May 9, 2023 10:00 AM ET Company Participants Sergio Maiworm - VP, Finance, IR & Treasurer Tim Duncan - President & Chief Executive Officer Shane Young - Executive Vice President & Chief Financial Officer Robin Fielder - Executive Vice President, Low Carbon Strategy & Chief Sustainability Officer Conference Call Participants Michael Scialla - Stephens Leo Mariani - ROTH MKM Partners Subash Chandra - Benchmark Company Nate Pendleton - Stifel Tim R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38497 Talos Energy Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 82-3532642 | | --- | --- | | (State o ...

Talos Energy Inc. (NYSE:TALO) Q4 2022 Earnings Conference Call March 1, 2023 10:00 AM ET Company Participants Sergio Maiworm - VP, Finance, IR and Treasurer Tim Duncan - President and CEO Shane Young - EVP and CFO Robin Fielder - EVP, Low Carbon Strategy and Chief Sustainability Officer Conference Call Participants Nate Pendleton - Stifel Subash Chandra - Benchmark Company Jeff Robertson - Water Tower Research Leo Mariani - MKM Partners Operator Good day, and welcome to the Talos Energy Fourth Quarter and F ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 For the transition period from to FORM 10-K Commission File Number 001-38497 | Talos Energy Inc. | | --- | (Exact name of Registrant as specified in its Charter) (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR | Title of Each Class | Trading Symbol(s) ...