Talos Energy Inc (TALO) Announces Third Quarter 2023 Operational and Financial Results
Talos Energy Inc (NYSE:TALO) reported total revenues of $383.1 million for Q3 2023
The company experienced a net loss of $2.1 million, translating to a net loss per diluted share of $0.02
Adjusted net income stood at $18.6 million, with an adjusted net income per diluted share of $0.15
Upstream adjusted EBITDA margin was $43.59 per Boe
On November 7, 2023, Talos Energy Inc (NYSE:TALO) announced its operational and financial results for the fiscal quarter ended September 30, 2023. The company reported total revenues of $383.1 million and a net loss of $2.1 million, equating to a net loss per diluted share of $0.02. The adjusted net income was $18.6 million, with an adjusted net income per diluted share of $0.15. The company's adjusted EBITDA was $248.8 million, while the upstream adjusted EBITDA stood at $255.2 million.
Operational Highlights and Challenges
CEO Timothy S. Duncan commented on the company's performance, stating,
During the third quarter, we were pleased with the advancements we made on several aspects of our business. Our operations team is working hard on our Lime Rock and Venice discoveries, which are expected to come online as scheduled in early 2024."
However, he also noted that weather-related disruptions in the Gulf of Mexico impacted the company's production and drilling operations during the third quarter.
Financial Performance
The company's total revenues for the third quarter of 2023 amounted to $383.1 million. Despite this, Talos Energy Inc (NYSE:TALO) reported a net loss of $2.1 million, translating to a net loss per diluted share of $0.02. On the other hand, the adjusted net income was $18.6 million, with an adjusted net income per diluted share of $0.15. The adjusted EBITDA was $248.8 million, while the upstream adjusted EBITDA stood at $255.2 million. The company's capital expenditures, including plug and abandonment, were $194.6 million.
Production and Expenses
Production was 63.7 MBoe/d for the third quarter of 2023, with 76% oil and 83% liquids. Total lease operating expenses for the quarter were $103.5 million or $17.69/Boe. Upstream General and Administrative expenses for the quarter, excluding non-cash equity-based compensation, was $20.7 million, or $3.54/Boe.
Liquidity and Leverage
As of September 30, 2023, Talos had approximately $752.9 million of liquidity, with $750.0 million undrawn on its credit facility and approximately $13.6 million in cash, less approximately $10.8 million in outstanding letters of credit. On the same date, Talos had $1,096.0 million in total debt. Net Debt was $1,082.4 million. Net Debt to Pro Forma Last Twelve Months (LTM) Adjusted EBITDA was 1.1x.
Outlook
For the fourth quarter of 2023, Talos expects average daily production of 66.5 - 68.5 MBoe/d. For the full year 2023, Taloss average daily production per day is projected toward the low end of the current guidance of 66.0 - 71.0 MBoe/d given the fourth quarter 2023 production guidance update.
Explore the complete 8-K earnings release (here) from Talos Energy Inc for further details.
This article first appeared on GuruFocus.
