Talos Energy(TALO) - 2025 Q3 - Quarterly Results

Production and Exploration - Talos produced 95.2 MBoe/d in Q3 2025, with 70% being oil and 76% liquids[17] - Full-year 2025 guidance was revised to an average daily production range of 94.0 to 97.0 MBoe/d, with 69% oil and 78% liquids[27] - Talos announced a successful exploration discovery at Daenerys and plans to drill an appraisal well in Q2 2026[4] - The company expects first production from the Monument discovery to be between 20–30 MBoe/d gross by late 2026[10] - Total production for FY 2025 is expected to range from 34.3 MMBoe to 35.5 MMBoe, with average daily production estimated between 94.0 MBoe/d and 97.0 MBoe/d[29] Financial Performance - The company generated $103.4 million in adjusted free cash flow and repurchased 5 million shares for approximately $48 million[6] - Talos achieved over $40 million in free cash flow enhancements, exceeding its $25 million Optimal Performance Plan target for 2025[4] - The company recorded a net loss of $95.9 million, or $0.55 per diluted share, including $60.2 million in non-cash impairment charges[16] - Total revenues for Q3 2025 were $450.1 million, a decrease of 11.6% compared to $509.3 million in Q3 2024[44] - Oil revenues decreased to $400.2 million in Q3 2025 from $467.6 million in Q3 2024, reflecting a decline of 14.4%[44] - Net loss attributable to Talos Energy Inc. for the nine months ended September 30, 2025, was $291.7 million, compared to a loss of $11.9 million in the same period of 2024[44] - Cash flows from operating activities for the nine months ended September 30, 2025, were $734.0 million, compared to $613.3 million in 2024, an increase of 19.7%[46] - Adjusted Net Income attributable to Talos Energy Inc. was $(32,997) thousand, resulting in an Adjusted Earnings per Share of $(0.19) for the same period[65] Expenses and Liabilities - Operating expenses increased to $536.2 million in Q3 2025, up from $485.7 million in Q3 2024, representing an increase of 10.4%[44] - Cash operating expenses are projected to be between $545 million and $575 million, with G&A expenses estimated at $120 million to $130 million[29] - Total liabilities decreased to $3.3 billion as of September 30, 2025, from $3.4 billion at the end of 2024, a reduction of 3.3%[42] - Adjusted General and Administrative Expenses for Q3 2025 were $36.0 million, down from $41.5 million in Q3 2024, a decrease of 13.5%[49] Cash and Debt Management - Talos maintained a strong balance sheet with $332.7 million in cash and a net debt to LTM adjusted EBITDA ratio of 0.7x[25] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $408.4 million, compared to $150.9 million at the end of Q3 2024, an increase of 170.5%[46] - Total Debt amounts to $1,250,000, with Net Debt calculated at $917,309 after accounting for cash and cash equivalents of $332,691[71] - The Net Debt to LTM Adjusted EBITDA ratio stands at 0.7x, which would increase to 0.8x if Finance Lease payments were included[71] Capital Expenditures - Capital expenditures for Q3 2025 totaled $104.6 million, excluding plugging and abandonment costs[21] - Capital expenditures (Capex) for FY 2025 are expected to be between $480 million and $520 million[29] Market and Pricing - The company has fixed swaps for crude oil with an average price of $71.01 per barrel for October to December 2025, and $66.03 per barrel for January to March 2026[33] - Natural gas fixed swaps are set at an average price of $3.53 per MMBtu for October to December 2025, and $4.13 per MMBtu for January to March 2026[33] - The company emphasizes the importance of market demand and prices for oil and gas in estimating future production volumes[38] Impairments and Estimates - The company reported an impairment of oil and natural gas properties amounting to $284.1 million for the nine months ended September 30, 2025[44] - Reserve estimates are subject to significant uncertainty and may differ from actual recoverable quantities due to various factors[39] Conference Call and Reporting - The company will host a conference call on November 6, 2025, to discuss its third-quarter earnings[34] - Adjusted EBITDA attributable to Talos Energy Inc. for the same period was $301,240 thousand, a slight increase from $294,247 thousand in the prior quarter[54] - Total production for the three months ended September 30, 2025, was 8,757 Boe, up from 8,494 Boe in the previous quarter[54]