Talos Energy Stock Price, News & Analysis

Talos Energy (NYSE: TALO) clarified that its assets were not the source of an oil release in Bay Marchand Block 5, Louisiana, reported on August 31. The company, having ceased production in 2017 and isolated its wells, led response efforts for containment and recovery. Investigations showed the release likely stemmed from a non-Talos pipeline affected by Hurricane Ida. Recent observations indicated that surface evidence of the spill diminished significantly, with no impact on wildlife or shorelines. Talos is collaborating with authorities for repairs.

Talos Energy (TALO) has submitted Notices of Dispute to the Mexican government regarding decisions made by the Ministry of Energy (SENER) that designate PEMEX as the operator for the Zama asset. This designation is seen as damaging to Talos as the operator of Block 7 and potentially violates international treaties. Talos aims for an amicable resolution to avoid arbitration, having already invested nearly $350 million into Zama. The project could generate over $30 billion in revenue for Mexico. Talos continues to engage with the Mexican government for a fair operating agreement.

On Aug. 25, 2021, Talos Energy announced it, along with Carbonvert, won the bid for a carbon storage site in Jefferson County, Texas, awarded by the Texas General Land Office. This project, covering over 40,000 acres, aims to sequester 225 to 275 million metric tons of CO2 from nearby industrial sources. The award positions Talos as a leader in carbon sequestration among independent U.S. energy firms. The next step involves negotiating lease terms with the GLO, contingent on approval from the Texas School Land Board.

Talos Energy reported record quarterly production of 66.3 MBoe/d in Q2 2021, with 69% oil and 76% liquids. The financials highlighted a net loss of $125.8 million due to $186.6 million in commodity hedging losses. Adjusted EBITDA stood at $148.1 million, or $25/Boe. Talos launched a carbon capture initiative with Storegga, aiming for emissions reduction while expanding operations. The credit facility was extended to November 2024, improving liquidity with over $380 million in available funds. The company reaffirmed its 2021 guidance for production and capital expenditures.

Talos Energy (NYSE: TALO) announced on August 2, 2021, the addition of DNB ASA to its reserves-based loan (RBL) syndicate, enhancing its credit facility by $75 million. This boosts Talos's pro forma liquidity to approximately $380 million as of June 30, 2021. The joint lender agreement extends the RBL maturity to November 2024 and increases borrowing capacity to $730 million, reflecting strong operational results and favorable commodity prices. The company's leadership anticipates significant free cash flow and reduced leverage, positioning Talos for strategic growth in the second half of 2021.

On July 26, 2021, Talos Energy (NYSE: TALO) reported preliminary production estimates for Q2 2021, reaching approximately 66 MBoe/d, exceeding expectations, with a composition of 69% oil. Following the successful drilling of the Tornado Attic well, first production commenced in mid-July 2021, performing above estimates. Additionally, the Crown and Anchor well is in the completion phase, targeting first production by late Q3 2021. CEO Timothy S. Duncan highlighted strong sequential production and improvement in balance sheet as key drivers for future growth.

Talos Energy Inc. (NYSE: TALO) will release its second quarter 2021 results on August 3, 2021, after market close. Following this, the company will hold a conference call on August 4, 2021, at 10:00 AM ET. Investors can join the call via a webcast on the company's website or by phone. A replay will be available until August 11, 2021. Talos focuses on oil and gas exploration and production, along with carbon capture initiatives in the U.S. and Mexico, positioning itself as a significant independent producer in the Gulf of Mexico.

Talos Energy (NYSE: TALO) announced on July 2, 2021, that Mexico's Ministry of Energy designated Pemex as the operator of the Zama unit, a decision the Company finds disappointing after significant investments in the asset. Since being awarded Block 7 in July 2017, Talos has drilled multiple wells and developed a credible plan to maximize recovery and value for Mexico. The Company remains committed to enhancing shareholder value from the Zama asset and will consider all legal and strategic options in response to this decision.

Talos Energy Inc. (NYSE: TALO) announced the pricing of a public offering of 5,000,000 shares of common stock by Selling Stockholders, including affiliates of Apollo Global Management and Riverstone Holdings LLC. Talos will not be selling any shares or receiving proceeds from the offering. The expected closing date is June 28, 2021, subject to customary conditions. BMO Capital Markets is acting as the sole underwriter. This offering does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction where such an offer would be unlawful.