• Production: 109,000 barrels of oil equivalent per day, 68% oil, 78% liquids.

• EBITDA: $363 million, with an EBITDA net back margin of about $40 per barrel of oil equivalent.

• Capital Expenditures (CapEx): $118 million, plus an additional EUR10 million on plugging and abandonment activities.

• Free Cash Flow: $195 million for the quarter.

• Stock Repurchase: 2.3 million shares repurchased for $22 million; stock repurchase authorization increased to $200 million.

• Cash Balance: Approximately $203 million at the end of the quarter.

• Liquidity: Approximately $960 million.

• Leverage Ratio: 0.8 times.

• Hedging Positions: 42% of projected 2025 oil production hedged at over $72 per barrel.

• 2025 Production Guidance: 90,000 to 95,000 barrels of oil equivalent per day, 69% oil, 79% liquids.

• 2025 Capital Expenditures Guidance: $500 million to $540 million, with $100 million to $120 million for plugging and abandonment activities.

• Warning! GuruFocus has detected 3 Warning Signs with TALO.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Talos Energy Inc (NYSE:TALO) achieved record production levels of 109,000 barrels of oil equivalent per day, marking the fifth consecutive quarter of record production.

• The company reported a record EBITDA of $363 million for the first quarter, with a net back margin of about $40 per barrel of oil equivalent.

• Talos Energy Inc (NYSE:TALO) generated record free cash flow of $195 million for the quarter, demonstrating strong financial performance.

• The board approved an increase in the stock repurchase authorization to $200 million, with plans to allocate up to 50% of annual free cash flow to share buybacks.

• The company maintains a strong balance sheet with a leverage ratio of 0.8 and liquidity of approximately $960 million, positioning it well for future opportunities.

Negative Points

• The company anticipates an increase in plugging and abandonment expenditures throughout the remainder of the year, which could impact cash flow.

• There is potential for weather-related disruptions, including hurricanes, which could affect production and operational activities.

• The company faces challenges in maintaining production levels due to scheduled maintenance and tie-back operations, which may temporarily lower production rates.

• Talos Energy Inc (NYSE:TALO) operates in a volatile commodity price environment, which could impact the economic viability of its projects.

• The company has significant capital expenditures planned for the year, with a guidance range of $500 million to $540 million, which could strain financial resources if not managed carefully.