NYSE$TALO

Talos Energy Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Talos Energy's financial performance was announced for the quarter ended March 31, 2024.

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.

Headline financials

Total Revenue

$430M

Previous: $323M+33.3%
EPS

-$0.71

Previous: -$0.01-7000.0%
Capital Expenditures

-$146M

Previous: -$104M-40.5%
Free Cash Flow

-$259M

Previous: -$14.1M-1733.2%
Net Income

-$112M

Previous: $89.9M-225.1%
Operating Income

$67.8M

Previous: $7.85M+764.0%
Gross Profit

$430M

Previous: $323M+33.3%
Cash & Equivalents

$21M

Previous: $16.2M+29.9%
Total Assets

$6.43B

Previous: $4.8B+34.2%
Stock-Based Comp

$2.75M

Previous: $3.94M-30.1%

Revenue & EPS history

Talos Energy · Revenue · Quarterly

$430M

Q1 2024+33.3%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Talos Energy provided second quarter 2024 production guidance and reiterated its operational and financial guidance for the full year 2024.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.3%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+3.2%

Avg return

30 days after

47%

18 / 38 earnings

Positive

+19.2%

Q2 2024

Best reaction

-17.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-7.5%-5.7%
Q4 2025-13.5%-1.8%+26.2%
Q3 2025+2.4%+11.5%+24.0%
Q1 2025+4.4%+14.6%+11.5%
Q4 2024+5.3%-2.3%+9.6%
Q3 2024+1.2%-4.6%-13.4%
Q2 2024+19.2%+18.3%+7.9%
Q1 2024-3.7%-5.8%-18.6%
Q4 2023-0.2%+0.3%+7.2%
Q3 2023-9.4%-8.5%-20.6%
Q2 2023+3.5%+3.2%+3.3%
Q1 2023-17.0%-13.2%+4.4%
Q4 2022-11.9%-7.7%-18.7%
Q3 2022-4.5%-0.0%-9.2%
Q2 2022+8.3%+9.6%+24.1%
Q1 2022+1.4%-10.7%+20.7%
Q4 2021+9.6%+33.1%+28.9%
Q3 2021-2.9%-1.7%-25.5%
Q2 2021-6.9%-2.0%+15.3%
Q1 2021+5.8%+6.5%+38.7%
Q4 2020+1.8%+11.3%-9.8%
Q3 2020-4.7%+9.6%+58.6%
Q2 2020-4.4%+7.2%-8.5%
Q1 2020+3.4%+4.2%+39.0%
Q4 2019-10.3%-1.1%-7.5%
Q3 2019+0.2%-1.6%+5.3%
Q2 2019+3.7%+4.8%+7.2%
Q1 2018-1.9%-3.2%-22.4%
Q1 2019-2.0%-4.6%-22.9%
Q4 2018+11.8%+10.5%+25.4%
Q1 2017+11.8%+12.3%+28.3%
Q3 2018+2.5%-8.7%-21.9%
Q3 2017+2.5%-8.7%-21.9%
Q4 2015-2.8%+0.1%-9.1%
Q4 2017-2.8%+0.1%-9.1%
Q4 2016-2.8%+0.1%-9.1%
Q2 2017-3.8%-8.0%-2.4%
Q2 2018-2.9%-8.0%-8.1%

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