NYSE$TALO

Talos Energy Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced third quarter 2024 operational and financial results.

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.

Headline financials

Total Revenue

$509M

Previous: $383M+32.9%
EPS

$0.49

Previous: $0.15+226.7%
Capital Expenditures

-$355M

Previous: -$439M+19.0%
Free Cash Flow

-$267M

Previous: -$441M+39.4%
Net Income

$88.2M

Previous: -$2.1M+4292.7%
Operating Income

$23.5M

Previous: $127M-81.4%
Gross Profit

$509M

Previous: $383M+32.9%
Cash & Equivalents

$45.5M

Previous: $13.6M+234.1%
Total Assets

$6.4B

Previous: $4.75B+34.6%
Stock-Based Comp

$3.32M

Previous: $393K+743.5%

Revenue & EPS history

Talos Energy · Revenue · Quarterly

$509M

Q3 2024+32.9%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Talos Energy updated its 2024 operational and financial guidance, reflecting improved production estimates and reduced capital expenditures.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q3 2024

Historical avgQ3 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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