Talos Energy Q1 2024 Earnings Report
Key Takeaways
Talos Energy reported revenue of $429.9 million and a net loss of $112.4 million for the first quarter of 2024. The company's production reached 79.6 MBoe/d, near the high end of guidance. Talos completed the QuarterNorth acquisition and the sale of TLCS, achieving $20 million in run-rate synergies. Debt was reduced by $225 million, resulting in a leverage ratio of 1.0x.
Production of 79.6 MBoe/d (71% oil, 80% liquids) was at the high end of Q1 2024 guidance.
Closed QuarterNorth Energy Inc. acquisition and progressing integration activities.
Completed the sale of Talos Low Carbon Solutions LLC (TLCS) to TotalEnergies for approximately $148 million.
Reduced debt by $225 million since closing the QuarterNorth acquisition, achieving a leverage ratio of 1.0x.
Talos Energy
Talos Energy
Forward Guidance
Talos Energy provided second quarter 2024 production guidance and reiterated its operational and financial guidance for the full year 2024.
Positive Outlook
- Talos expects average daily production of 93.0 - 96.0 MBoe/d for the second quarter 2024.
- Second quarter production includes the impact of 5.0 – 6.0 MBOE/D from the planned HP-I drydock.
- Second quarter production includes a full quarter contribution from QuarterNorth.
- Talos continues to expect average daily production of 89.0 - 95.0 MBoe/d for full year 2024.
- Talos increased its target debt reduction amount to $550 million from the previous $400 million.
Challenges Ahead
- HP-1 vessel mobilized to shore for regulatory required maintenance in April.
- The vessel is expected to resume production in June.
- Talos expects the drydock to result in 5.0 – 6.0 MBoe/d of deferred production in the second quarter 2024.
- Talos’s operational and financial guidance includes downtime estimates for the HP-1 drydock.
- No negative information provided.