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Sep 30, 2024
Talos Energy Q3 2024 Earnings Report
Announced third quarter 2024 operational and financial results.
Key Takeaways
Talos Energy reported a strong third quarter in 2024, marked by record production of 96.5 MBoe/d, robust Adjusted EBITDA, and solid Adjusted Free Cash Flow, which enabled the company to reduce its debt and achieve a leverage of 0.9x.
Achieved record production of 96.5 MBoe/d, at the high-end of third quarter 2024 guidance.
Reduced debt by $100 million, bringing leverage to 0.9x.
Commenced drilling at the high-impact Katmai West #2 well in the Gulf of Mexico.
Discovered commercial quantities of oil and natural gas at the Ewing Bank 953 well.
Talos Energy
Talos Energy
Forward Guidance
Talos Energy updated its 2024 operational and financial guidance, reflecting improved production estimates and reduced capital expenditures.
Positive Outlook
- Improved average daily production guidance to 91.0 - 94.0 MBoe/d for the full year 2024.
- Capital Expenditures guidance was reduced significantly to $510 - $530 million.
- Talos expects to maintain a long-term leverage ratio below 1.0x.
- The company is focused on paying down the balance of its debt under the Bank Credit Facility by year end 2024.
- The company expects first production from the Katmai West #2 well in the second quarter 2025.
Challenges Ahead
- P&A, Decommissioning range increased to $100 - $110 to reflect the acceleration of selected non-operated activities into 2024 from previously planned 2025.
- Total General & Administrative expenses, including both expense and capitalized costs, remains in line with prior guidance, but the expense range increased to $120 - $130 million.
- The West Vela is expected to commence drilling at Helms Deep in the third quarter 2025.
- First production from the Ewing Bank 953 well is expected in mid-2026.
- First production from the Monument discovery is expected by late 2026 under restricted flow.