Talos boasts ‘best quarter on record in terms of production’

Talos' Green Canyon 18A platform; Source: Otto Energy

U.S.-based oil and gas company Talos Energy bounced back to the black in the second quarter of 2019 on the back of higher revenues boosted by record production levels.

Talos on Wednesday posted a net income of $94.8 million for the second quarter of 2019 compared to a loss of $75 million in the same period last year.

The company recorded revenues of $286.8 million and average realized prices of $64.13/Bbl of oil and $2.45/Mcf of natural gas, net of deductions. 92% of operating revenues were derived from oil production and reflect a significant basis differential premium to the average WTI benchmark price of $59.81/Bbl during the same period. In 2Q 2018, Talos recorded revenues of $203.9 million.

The company’s production for 2Q 2019 was 59 thousand barrels of oil equivalent per day (MBoe/d), or 5.4 million barrels of oil equivalent (MMBoe) in total, of which 75% was oil and 81% was liquids.

Capital expenditures, inclusive of plugging and abandonment costs, were $187.4 million with approximately $156.2 million related to the U.S. Gulf of Mexico and $31.2 million related to offshore Mexico.

President and Chief Executive Officer, Timothy S. Duncan, commented: “This was the company’s best quarter on record in terms of production, Adjusted EBITDA, and Adjusted EBITDA Margin excluding hedges on a percentage basis, even with lower commodity prices and slightly higher service costs from a year ago.”

Duncan also said: “We executed numerous successful drilling projects in both deepwater and shallow water in the U.S. Gulf of Mexico and two drilling programs in offshore Mexico. Our annual capital program was significantly front-loaded in the first half of the year with five rigs working during the second quarter. Even with this high level of activity, our U.S. Gulf of Mexico business generated meaningful free cash flow in the second quarter.”

He added: “In the second half of the year, we expect to continue generating a significant amount of free cash flow from our U.S. Gulf of Mexico business that will be further enhanced by having concluded the Zama appraisal in the second quarter.”

Offshore Energy Today Staff


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply