Talos Energy(US:TALO)2019-08-07 21:28Revenue Performance - Total revenue for Q2 2019 was $286.8 million, an increase of approximately $82.9 million, or 41%, compared to Q2 2018[166]. - Total revenue for the six months ended June 30, 2019, was $465.5 million, an increase of approximately $115.7 million, or 33%, compared to the same period in 2018[171]. - Oil revenue increased by approximately $76.7 million, or 43%, in Q2 2019, driven by a 14.9 MBblpd increase in production volumes[167]. - Oil revenue increased by approximately $104.7 million, or 34%, during the six months ended June 30, 2019, compared to the same period in 2018, driven by a 10.9 MBblpd increase in production volumes[172]. - Natural gas revenue decreased by approximately $1.7 million, or 10%, in Q2 2019, primarily due to a $0.32 per Mcf lower price realization[169]. - Natural gas revenue remained flat during the six months ended June 30, 2019, with a slight increase of $3.3 million from a 6.2 MMcfpd increase in volumes, offset by a decrease of $3.2 million due to lower price realization[173]. - NGL revenue decreased by approximately $0.7 million, or 9%, in Q2 2019, attributed to a $8.37 per Bbl lower price realization[170]. - NGL revenue decreased by approximately $1.0 million, or 8%, during the six months ended June 30, 2019, primarily due to a $5.0 million decrease from lower price realization[174]. Production and Operational Metrics - Oil production volume for Q2 2019 was 4,006 MBbls, compared to 2,651 MBbls in Q2 2018, reflecting a significant increase in production capacity[165]. - Total production volume for the six months ended June 30, 2019, was 9,151 Mboe, compared to 6,831 Mboe in the same period in 2018[165]. Expenses and Impairments - Total operating expenses for the six months ended June 30, 2019, were $352.3 million, an increase of approximately $90.3 million, or 34%, compared to $261.9 million for the same period in 2018[176]. - General and administrative expenses for the six months ended June 30, 2019, decreased by approximately $3.0 million, or 8%, to $36.5 million compared to $39.5 million for the same period in 2018[187]. - Depreciation, depletion, and amortization expense for the six months ended June 30, 2019, increased by approximately $43.6 million, or 37%, to $160.4 million compared to $116.8 million for the same period in 2018[185]. - Workover and maintenance expenses for the six months ended June 30, 2019, increased by approximately $10.7 million, or 43%, to $35.3 million compared to $24.6 million for the same period in 2018[184]. - The company recorded a non-cash $12.4 million impairment related to unproved property in Block 2 offshore Mexico[152]. - The company recorded a $12.4 million impairment during the six months ended June 30, 2019, related to unproved property located in Block 2 offshore Mexico[186]. Financial Performance - For the three months ended June 30, 2019, the company reported a net income of $94.8 million compared to a net loss of $74.9 million for the same period in 2018, representing a significant turnaround[196]. - Adjusted EBITDA for the six months ended June 30, 2019, was $300.7 million, up from $187.0 million in the same period of 2018, reflecting a 60.5% increase[196]. Debt and Liquidity - As of June 30, 2019, the company's total debt was approximately $697.1 million, which includes $382.5 million in 11.00% Senior Secured Notes and $308.6 million outstanding under the Bank Credit Facility[198]. - The company had available liquidity of $358.9 million as of June 30, 2019, which includes cash and available capacity under the Bank Credit Facility[197]. - The company is in compliance with all debt covenants as of June 30, 2019, ensuring financial stability for ongoing operations[198]. Capital Expenditures - Capital expenditures for the six months ended June 30, 2019, totaled $257.1 million, an increase of $88.6 million compared to the same period in 2018[210]. - Total capital expenditures for the six months ended June 30, 2019, amounted to $310.842 million, with an additional $32.206 million for plugging and abandonment, bringing the total to $343.048 million[214]. - Estimated capital expenditures and plugging and abandonment for the remainder of 2019 are projected to be between $122.0 million and $142.0 million, funded through cash flows from operations and borrowings[214]. Accounting and Risk Management - Critical accounting policies include oil and natural gas properties, proved reserve estimates, and revenue recognition, with no changes reported since the 2018 Annual Report[216]. - Recently adopted and issued accounting standards are detailed in the condensed consolidated financial statements, with no specific changes highlighted[217][218]. - There have been no material changes in market risk exposures since the disclosures in the 2018 Annual Report[219]. - Price risk management activities resulted in an expense of $79.6 million for the six months ended June 30, 2019, compared to an expense of $143.2 million for the same period in 2018[192]. Acquisition - The Whistler Acquisition was completed for $52.6 million, enhancing the company's asset portfolio[150].