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Jun 30, 2022
Talos Energy Q2 2022 Earnings Report
Announced second quarter 2022 operational and financial results.
Key Takeaways
Talos Energy reported a strong quarter with rapid debt reduction, record-breaking revenue, and cost control efforts, achieving the lowest leverage multiple and highest liquidity in the company's history.
Production of 65.4 MBoe/d (67% oil, 75% liquids).
Revenue of $519.1 million, driven by realized prices of $108.03 per barrel for oil, $37.79 per barrel for NGLs and $8.00 per Mcf for natural gas.
Net Income of $195.1 million, or $2.33 Net Income per diluted share, and Adjusted Net Income of $100.6 million, or $1.20 Adjusted Net Income per diluted share.
Free Cash Flow (before changes in working capital) of $134.1 million.
Forward Guidance
Talos expects to spud the Puma West appraisal well early in the fourth quarter and is closely monitoring recent legislative developments regarding the Inflation Reduction Act.
Positive Outlook
- Initiating operated open water rig program testing high-impact drilling opportunities in the second half of the year.
- Expecting to spud Puma West appraisal well early in the fourth quarter.
- Closed the Bayou Bend transaction with Chevron and Carbonvert, welcoming Chevron into the joint venture.
- Expect to spud the first stratigraphic evaluation well this year to expedite the EPA Class VI permitting process.
- Actively working with Pemex and its Block 7 partners to finalize the Zama Field Development Plan, targeting submission to CNH latest by March 2023.
Challenges Ahead
- HP-1 vessel mobilizing to shore for regulatory-required maintenance, resulting in 6.0 – 9.0 MBoe/d of deferred production in Q3.
- Planned third-party midstream downtime and other miscellaneous planned downtime activities to result in 4.0 – 5.0 MBoe/d of deferred production in Q3.
Historical Earnings Impact
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