Talos Energy Reports $64.5 Million Loss Amid Strong Production Gains

HOUSTON, Feb. 26, 2025 /PRNewswire/ — Talos Energy (NYSE: TALO) has reported its fourth quarter and full-year 2024 results, revealing a net loss of $64.5 million for Q4 despite impressive production figures. The company announced production levels of 98.7 MBoe/d, comprising 70% oil and 79% liquids, and recorded an Adjusted EBITDA of $361.8 million.

In a comprehensive review of its operational highlights, Talos confirmed the successful drilling of the Katmai West #2 well, which was completed under budget and ahead of schedule, exceeding expectations with over 400 feet of hydrocarbon pay. The company’s year-end 2024 proved reserves stood at 194.2 MMBoe, boasting a present value of $4.2 billion (PV-10).

For the whole of 2024, Talos achieved an average production of 92.6 MBoe/d, while the fourth quarter Adjusted Free Cash Flow rose to $164 million. The management attributed these operational successes to strict cost-control measures and strategic planning amidst fluctuating market conditions.

Moving forward, Talos forecasts that Q1 2025 production will range between 99.0 and 101.0 MBoe/d, and the company anticipates annual production to settle between 90.0 and 95.0 MBoe/d for the entire year, with a focus on maintaining strong cash flows ahead of potential market recovery.

In significant corporate updates, Talos announced upcoming leadership changes with Paul Goodfellow taking over as CEO starting March 1, 2025. Furthermore, the company reached an agreement to sell a 30.1% interest in Talos Mexico to Grupo Carso for up to $82.7 million, which includes an additional $33.1 million payable upon the first production from the Zama Field.

William Moss, Interim CEO, commented on the quarter’s performance: “Talos had a strong fourth quarter resulting from our operations delivering key yearly objectives while effectively managing costs,” underscoring the company’s commitment to leveraging deepwater expertise to maximize shareholder value.