Talos Energy Reports 19.3% Revenue Growth to $513.1 Million in Q1 2025

Talos Energy Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $513.1 million, a 19.3% increase from $429.9 million in the same period of 2024. The growth was primarily driven by a significant rise in oil and natural gas production, which increased to 100.9 MBoepd from 79.6 MBoepd year-over-year. Oil revenues alone reached $440.7 million, up from $393.2 million, while natural gas revenues surged to $52.7 million from $23.7 million. Despite the revenue growth, the company reported a net loss of $9.9 million, an improvement from a loss of $112.4 million in the prior year, reflecting a narrowing of losses due to increased operational efficiency and reduced general and administrative expenses.

In terms of operational metrics, Talos saw a notable increase in production volumes, with oil production rising by 971 MBbls and natural gas production increasing by 3,555 MMcf compared to the previous year. The average sale price for oil decreased slightly to $71.73 per barrel from $76.02, while natural gas prices improved to $4.32 per Mcf from $2.74. The company’s lease operating expenses decreased to $127.8 million from $135.2 million, contributing to a lower cost per barrel of production.

Strategically, Talos completed the acquisition of an additional 8.3% working interest in the Monument oil discovery in the U.S. Gulf of America on March 7, 2025, further enhancing its asset portfolio. The company also continued its share repurchase program, having repurchased approximately 2.3 million shares for $22 million during the quarter, with a total of $178 million remaining under the authorized repurchase capacity. The appointment of Paul Goodfellow as President and CEO on March 1, 2025, marked a significant organizational change aimed at driving future growth.

Looking ahead, Talos anticipates continued volatility in oil and natural gas prices due to geopolitical factors and market conditions. The company is focused on maintaining operational efficiency and leveraging its asset base to navigate these challenges. The outlook for the remainder of 2025 includes a capital spending program estimated between $500 million and $540 million, with plans to fund these expenditures through operational cash flows and available liquidity under its Bank Credit Facility, which stood at $960.2 million as of March 31, 2025. The company remains committed to its strategic initiatives while monitoring market conditions closely.