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Dec 31, 2024
Talos Energy Q4 2024 Earnings Report
Expected Revenue:$489M
+27.0% YoY
Expected EPS:-$0.02
105.4% YoY
Key Takeaways
Talos Energy reported a net loss of $64.5 million for Q4 2024, but achieved key operational objectives, with production at 98.7 MBoe/d. The company successfully drilled the Katmai West #2 well ahead of schedule and under budget, and paid off its credit facility, reducing leverage to 0.8x.
Production averaged 98.7 MBoe/d (70% oil, 79% liquids).
Net loss was $64.5 million, or $0.36 per diluted share; Adjusted Net Income was $15.2 million, or $0.08 per diluted share.
Adjusted EBITDA was $361.8 million.
Adjusted Free Cash Flow was $164.0 million.
Talos Energy
Talos Energy
Forward Guidance
Talos Energy intends to prioritize free cash flow generation and the advancement of key drilling projects expected to drive future shareholder value creation in its 2025 operational and financial plan.
Positive Outlook
- Production for the first quarter 2025 is estimated to be in the range from 99.0 to 101.0 MBoe/d, with 68% oil volumes.
- Talos’s production guidance takes into account known and anticipated factors influencing the productive capacity between 100 Mboe/d and 105.0 MBoe/d, including expected planned downtime for facility and downstream maintenance activities.
- Key maintenance includes work scheduled for such assets as Katmai, Pompano, and Brutus, in addition to third-party pipeline maintenance.
- Production for the full year 2025 is expected to range from 90.0 to 95.0 MBoe/d, consisting of 69%oil and 79% liquids.
- Talos intends to prioritize free cash flow generation and the advancement of key drilling projects.
Challenges Ahead
- Production guidance considers potential expected but unplanned downtime due to unforeseen risks and weather-related disruptions.
- FY 2025 Cash Operating Expenses and Workovers are estimated between $580 and $610 million.
- FY 2025 G&A is expected to be between $120 and $130 million.
- FY 2025 Capital Expenditures are projected between $500 and $540 million.
- FY 2025 Interest Expense is anticipated to be between $155 and $165 million.