Upstream

Talos Energy announces 4Q and full 2020 financial and operational results

Talos Energy upstream

Talos Energy, the Houston-based oil company, announced this Wednesday its fourth quarter and full year 2020 financial and operational results; it also announced its 2021 operational and financial guidance.

Firstly, as for its fourth quarter of 2020 results, the company highlighted a production of 59,4 thousand barrels of equivalent oil per day (MNoe/d) net. With a year-end production exit rate of over 71,0 MNoe/d.

Secondly, Talos energy reports a net loss of $430,7 million dollars, inclusive of $267,9 million in commodity-price related impairments. Its adjusted EBITDA was of $106.4 million, for an Adjusted EBITDA margin of over 60%.

Thirdly, its capital expenditures, incluiding plugging and abandonment costs, were of $71.0 million; and its Free Cash Flow of approximately $12.2 million, after interest expense.

Moreover, the company’s liquidity, as of January 31, 2021, was of $545,9 million. On the other hand, its year-end 2020 proved reserves were at 163 MMBoe, with 67% of them being of oil, 78% proved and developed.

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Talos Energy upstream

Talos Energy working on high-impact projects

Also, Talos’ proved reserves increased by approximately 21 MMBoe from year end 2019; based on SEC commodity prices at the time of both reports.

In addition, Timothy S. Duncan, Talos Energy President and CEO, said. “With the onset of unexpected crises, our focus for the year was to further improve our cost structure and to bolster our asset value and credit profile through the capital plan; while also placing the business on solid footing to advance in 2021.”

He also added: “I’m particularly happy with our execution in the fourth quarter, with new wells coming online and continued success in our operating cost reduction efforts. That resulted in strong free cash flow generation in the quarter; as well as EBITDA margins going back over 60%, despite the hurricane downtime experienced in the quarter.”

Moreover, as of the company’s projects fr this year and the next, the CEO commented. “With improving margins and a continued focus on free cash flow generation, we expect to have a lower capital investment program in 2021 compared to 2020, despite an improving commodity price environment, balanced across low-risk projects and potential high-impact catalysts.”

Finally, he underlined that the company is seeking for M&A opportunities, as well as working on high impact  projects, like the Puma-West exploration well, and the Zama project, in México.

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