Talos Energy Announces First Quarter 2025 Operational and Financial Results

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HOUSTON, May 5, 2025 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced its operational and financial results for the three months ended March 31, 2025. Talos also provided second quarter 2025 guidance for production and reiterated its operational and financial guidance for the full year 2025.

(PRNewsfoto/Talos Energy)
(PRNewsfoto/Talos Energy)

First Quarter and Recent Key Highlights

  • Production of 100.9 thousand barrels of oil equivalent per day ("MBoe/d") (68% oil, 78% liquids).

  • Finished well completion operations on Sunspear discovery, with first production expected late second quarter 2025.

  • Initiated completion operations on Katmai West #2 well, with first production expected late second quarter 2025.

  • Drilling operations to commence on Daenerys prospect late second quarter 2025, following the completion of the Katmai West #2 well.

  • Net Loss of $9.9 million, or $0.05 Net Loss per diluted share, and Adjusted Net Income* of $10.5 million, or $0.06 Adjusted Net Income per diluted share*.

  • Adjusted EBITDA* of $363.0 million.

  • Capital expenditures of $117.6 million, excluding plugging and abandonment and settled decommissioning obligations.

  • Net cash provided by operating activities of $268.2 million.

  • Adjusted Free Cash Flow* of $194.5 million.

  • Expect to allocate up to 50% of annual Free Cash Flow to share repurchases. Repurchased approximately 2.3 million shares for $22.0 million and Talos's Board of Directors increased its stock repurchase authorization to $200 million.

  • Maintained a strong balance sheet with $203.0 million of cash with an undrawn credit facility, a Net Debt to Last Twelve Months ("LTM") Adjusted EBITDA* of 0.8x, and liquidity of $960.2 million at March 31, 2025.

  • Hedge positions cover approximately 42% of the balance of 2025 expected oil production at the midpoint of guidance, with a weighted average floor price over $72 per barrel, and mark-to-market hedge book value of $120.0 million, as of April 30, 2025.

Talos President and Chief Executive Officer Paul Goodfellow stated, "I'm excited to be a part of Talos and pleased to report our fifth consecutive quarter of record production, achieving approximately 101 MBoe/d in the first quarter 2025. This milestone was accompanied by strong Adjusted EBITDA and Adjusted Free Cash Flow, highlighting our disciplined focus on execution. Operationally, we achieved strong results, finishing well completion operations on our Sunspear discovery. Furthermore, completion operations are underway at Katmai West #2, following successful drilling results announced in early January 2025. We remain on track for both projects to begin production in late second quarter 2025.