Talos Energy(TALO)2025-05-22 20:20Production and Operations - Talos achieved record production of approximately 101 MBoe/d in Q1 2025, with 68% being oil and 78% liquids[3][11] - Talos expects average daily production for Q2 2025 to be between 92.0 to 96.0 MBoe/d, with full-year guidance of 90.0 to 95.0 MBoe/d[21][23] - Talos completed well operations on the Sunspear discovery, with first production expected in late Q2 2025, projecting 8-10 MBoe/d gross[5][7] - The Katmai West 2 well is currently in completion operations, with first production also expected in late Q2 2025, and an estimated ultimate recovery of approximately 50 MMBoe gross[5][8] - Talos increased its interest in the Monument discovery to 29.76%, expecting first production of 20-30 MBoe/d gross by late 2026[9] Financial Performance - Adjusted EBITDA for Q1 2025 was $363.0 million, with a net loss of $9.9 million or $0.05 per diluted share[5][10] - The company reported total revenues of $513.1 million for Q1 2025, with average realized prices of $71.73 per barrel for oil and $4.32 per Mcf for natural gas[10][12] - Total revenues for Q1 2025 reached $513.1 million, a 19.4% increase from $429.9 million in Q1 2024[39] - Oil revenues increased to $440.7 million, up 12.1% from $393.2 million in the same period last year[39] - Net loss for Q1 2025 was $9.9 million, compared to a net loss of $112.4 million in Q1 2024, representing a significant improvement[39] - Operating income for Q1 2025 was $43.5 million, down from $67.8 million in Q1 2024, indicating a decrease of 35.8%[39] - Cash flows from operating activities for Q1 2025 were $268.2 million, compared to $96.4 million in Q1 2024, showing a substantial increase[41] - Adjusted Free Cash Flow before changes in working capital was $194,472 thousand for the three months ended March 31, 2025[56] Liquidity and Capital Expenditures - The company maintained a strong cash balance of $203.0 million and an undrawn credit facility, resulting in total liquidity of approximately $960.2 million[4][19] - Capital expenditures for Q1 2025 totaled $117.6 million, with plans to allocate up to 50% of annual free cash flow to share repurchases[5][15][6] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $310.0 million, up from $124.4 million at the end of Q1 2024[41] - Total current assets increased to $708.8 million as of March 31, 2025, up from $659.4 million at the end of 2024[37] - Total liabilities decreased to $3.4 billion as of March 31, 2025, down from $3.4 billion at the end of 2024[37] - Total Debt as of March 31, 2025, was $1,250,000 thousand, with Net Debt calculated at $1,047,050 thousand[68] - LTM Adjusted EBITDA reached $1,393,160 thousand, resulting in a Net Debt to LTM Adjusted EBITDA ratio of 0.8x[68] Risk Factors and Strategic Focus - The company is subject to various risks including commodity price volatility and geopolitical events that may impact its operations[30] - Talos Energy focuses on maximizing long-term value through its Exploration & Production business in the U.S. Gulf of America and offshore Mexico[28] - The company emphasizes safe and efficient operations, environmental responsibility, and community impact in its business strategy[28] - Future production estimates are based on assumptions of capital expenditure levels and market demand for oil and gas[31] - Reserve estimates are subject to significant uncertainty and may differ from actual recoverable quantities[32] Conference and Investor Relations - The company plans to host a conference call on May 6, 2025, at 10:00 AM Eastern Time to discuss earnings and future outlook[27] - Talos Energy's investor relations contact is Clay Jeansonne, available via email for inquiries[29] Non-GAAP Measures and Adjustments - Talos Energy utilizes non-GAAP financial measures such as EBITDA and Adjusted EBITDA to provide additional insights into its financial performance[34] - The adjustments for derivative fair value loss amounted to $15,853 thousand, impacting the overall financial performance[61] - Non-cash equity-based compensation expense for the period was $4,141 thousand, contributing to the Adjusted Net Income of $10,466 thousand[61] - The company reported a transaction expense of $(4,579) thousand related to severance costs and acquisition expenses[61] - Adjusted General & Administrative Expenses for Q1 2025 were $30.3 million, down from $34.6 million in Q1 2024[44] - Adjusted EBITDA for the same period was $363,003 thousand, compared to $361,814 thousand in the previous quarter, reflecting a stable operational performance[49] - Production for the three months ended March 31, 2025, was 9,080 Boe, with an Adjusted EBITDA per Boe of $39.98[49] - The company did not pay any cash income taxes during the period, which had no impact on the reported Adjusted Free Cash Flow[55]