• Record Production: 98,700 barrels of oil equivalent per day in Q4 2024, with 70% oil and 79% liquids including NGLs.

• EBITDA: $362 million for Q4 2024, with an EBITDA netback margin of approximately $40 per barrel of oil equivalent.

• Free Cash Flow: $164 million in Q4 2024; $511 million for the full year 2024.

• CapEx: $133 million in Q4 2024, with an additional $23 million for plugging and abandonment activities.

• Year-End Cash Position: $108 million.

• Net Debt to EBITDA Ratio: 0.8 times at year-end 2024.

• Total Debt Reduction: $550 million in 2024, including $125 million in Q4.

• Proved Reserves: 194 million barrels of oil equivalent, approximately 74% oil.

• PV-10 of Proved Reserves: Approximately $4.2 billion.

• 2P Value: Approximately $7.2 billion, including $3 billion in probable reserves.

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

• 2025 CapEx Guidance: $500 million to $540 million.

• 2025 P&A and Decommissioning Activities: $100 million to $120 million.

• 2025 Cash Operating Expenses: $580 million to $610 million.

• 2025 G&A Expenses: $120 million to $130 million.

• Warning! GuruFocus has detected 5 Warning Signs with TALO.

Release Date: February 27, 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 of 98,700 barrels of oil equivalent per day in Q4 2024, with 70% being oil.

• The company reported record EBITDA of $362 million for the fourth quarter, equating to an EBITDA netback margin of about $40 per barrel of oil equivalent.

• Talos Energy Inc (NYSE:TALO) successfully reduced its leverage ratio to 0.8 times net debt to EBITDA and ended the year with a healthy cash position of $108 million.

• The company fully repaid its credit facility during 2024, reducing total debt by $550 million, which equates to over $3 per share of value accretion for shareholders.

• Operational efficiency was demonstrated with the successful drilling of the Katmai West number two well, completed 35% under budget and over a month ahead of schedule.

Negative Points

• The 2025 production guidance is cautious, with expectations of 90,000 to 95,000 barrels of oil equivalent per day, reflecting planned maintenance and weather-related downtime.

• There is uncertainty regarding the impact of leadership changes, with a new CEO, Paul Goodfellow, set to join, which may affect strategic direction.

• The company faces potential challenges in maintaining production levels due to planned downtime and maintenance projects scheduled for 2025.

• Despite strong financial performance, Talos Energy Inc (NYSE:TALO) has experienced stock price performance issues, possibly due to management transitions.

• The company is still working on selling down its interest in Helm's Deep to 50% before drilling, indicating potential delays in project execution.