#United States #Houston #Talos Energy #Q1 2025 #production results

Talos Energy Reports Strong Operational and Financial Results in Q1 2025

On May 5, 2025, Talos Energy Inc. (NYSE: TALO) unveiled its financial and operational results for the first quarter of 2025, showcasing significant achievements in both production and market presence. With continuous growth and robust strategic execution, Talos has positioned itself as a notable player in the energy sector.

Key Highlights from Q1 2025

• - Production: Talos recorded an impressive production average of 100.9 thousand barrels of oil equivalent per day (MBoe/d), consisting of 68% oil, marking a substantial contribution from liquids. This performance can be attributed to successful well completion operations and the effective management of existing resources.
• - Oil Wells: The company achieved a crucial milestone by completing well operations on its Sunspear discovery, with anticipated first production expected in late second quarter 2025. Furthermore, operations on the Katmai West #2 well began, forecasting production commencement shortly after.
• - Financials: Despite a net loss of $9.9 million, or $0.05 per diluted share, Talos experienced an adjusted net income of $10.5 million, equivalent to $0.06 per diluted share. Adjusted EBITDA reached $363 million, marking a firm financial footing even in a fluctuating market.
• - Cash Flow and Share Repurchases: The company reported net cash from operating activities at $268.2 million, with an adjusted free cash flow amounting to $194.5 million. Of note, Talos initiated an aggressive share repurchase strategy, reinvesting up to 50% of its annual free cash flow, with approximately 2.3 million shares repurchased for $22 million during the quarter.
• - Balance Sheet Strength: At the end of March 2025, Talos maintained a solid cash reserve of $203 million along with a liquidity total of $960.2 million, showcasing prudent capital management and positioning for ongoing investment opportunities.

Future Endeavors

Talos has successfully laid out plans for future drilling operations. Daenerys, another high-impact project, is set to commence drilling in late second quarter 2025, projected to tap into the prolific geological formations with substantial resource potential. Additionally, Talos increased its interest in the Monument discovery, signaling its confidence in the long-term growth prospects within key areas.

CEO Statement

Paul Goodfellow, President and CEO of Talos, expressed his enthusiasm about the company's trajectory: "It is incredibly rewarding to witness our fifth consecutive quarter of record production. The results are not only a testament to our operational effectiveness but also reflect our commitment to robust capital discipline and strategic execution. We are well-positioned to navigate potential market volatility while ensuring continued growth and shareholder return."

Closing Remarks

Talos Energy is dedicated to reinforcing its position in the energy sector, emphasizing innovative exploration and production techniques. As the company moves into the second quarter of 2025, stakeholders can expect a continuation of strong performance as it prepares to kick off new production milestones and maintain financial resilience in the face of industry challenges.

For more detailed information regarding Talos Energy's strategies and future projects, a conference call will be conducted on May 6, 2025, to discuss these results in greater depth and answer any questions from investors and analysts alike.