NYSE$TALO

Talos Energy Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Talos Energy's financial performance improved due to the QuarterNorth transaction, which led to record production levels and strategic capital allocation.

Talos Energy reported revenue of $549.2 million and net income of $12.4 million for Q2 2024. The company achieved record production levels following the QuarterNorth acquisition and strategically reduced debt while repurchasing shares.

  • Production reached 95.5 MBoe/d, at the high end of guidance.
  • 3.8 million shares repurchased for approximately $43 million.
  • Debt reduced by $100 million, maintaining leverage at 1.0x.
  • 21.4% working interest acquired in the Monument discovery.

Headline financials

Total Revenue

$549M

Previous: $367M+49.6%
EPS

$0.07

Previous: $0.09-22.2%
Avg Realized Oil Price

$80.50

No prior period
Avg Realized Gas Price

$2.59

No prior period
Avg Realized NGL Price

$22.33

No prior period
LOE per Boe

$18.11

No prior period
Adjusted EBITDA

$344M

No prior period
Capital Expenditures

-$269M

Previous: -$299M+9.9%
Free Cash Flow

-$257M

Previous: -$285M+9.9%
Net Income

$12.4M

Previous: $13.7M-9.5%
Operating Income

$54.4M

Previous: $40.4M+34.5%
Gross Profit

$549M

Previous: $367M+49.6%
Cash & Equivalents

$37.8M

Previous: $17.5M+115.7%
Total Assets

$6.36B

Previous: $4.81B+32.4%
Stock-Based Comp

$2.79M

Previous: $4.75M-41.3%

Revenue & EPS history

Talos Energy · Revenue · Quarterly

$549M

Q2 2024+49.6%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Talos Energy expects average daily production of 92.0 - 97.0 MBoe/d for Q3 2024 and reiterates its full-year 2024 production guidance of 89.0 - 95.0 MBoe/d, targeting a long-term leverage ratio below 1.0x.

Tailwinds

  • Expected average daily production of 92.0 - 97.0 MBoe/d for Q3 2024.
  • Reiterated full-year 2024 average daily production guidance of 89.0 - 95.0 MBoe/d.
  • Targeting a long-term leverage ratio below 1.0x.
  • Expected Free Cash Flow in the second half 2024 in excess of its Credit Facility balance.
  • 71% of the production is expected to be oil.

Headwinds

  • No specific negative aspects were mentioned in the provided guidance summary.
  • Reliance on continued market demand and prices for oil and gas.
  • Potential disruptions in production, transportation, and storage.
  • Uncertainty in well performance assumptions.
  • Exposure to various risks including weather events and regulatory changes.

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 Q2 2024

Historical avgQ2 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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