Talos Energy reports Q4 EPS 69c, consensus 17c

Reports Q4 revenue $385.0M, consensus $389.6M. Talos CEO Timothy S. Duncan, stated, “The fourth quarter and early 2024 provided several examples of progress toward our goal of becoming a large-scale offshore exploration and production company. We had a solid operational fourth quarter, delivering 67.7 Mboe/d of oil-weighted production, generating Upstream margins of approximately $42 per barrel of oil equivalent. We brought our Venice and Lime Rock discoveries online ahead of schedule and near the high end of our rate guidance, allowing us to enter 2024 with a strong production rate. Through multiple tactical transactions, we laid the groundwork for inventory expansion, consolidating leases and adding acreage and prospects with high-quality partners. Finally, in January we announced the QuarterNorth acquisition, which should significantly grow our 2024 production, lower our corporate decline rate, expand our inventory, and improve our margins. Following the announcement of the QuarterNorth transaction, we launched several capital markets offerings, which reduced our financing rates and deferred bond maturities to the end of the decade. In 2024, we expect year-over-year production growth of approximately 35%-40%, while capital expenditures are expected to be less than standalone 2023 levels, resulting in material expected free cash flow generation. I am pleased about the trajectory of our business and look forward to an exciting year.”