Talos Energy (TALO) Update - Aug 6
Posted: Thu Aug 06, 2020 7:39 pm
Note from John White at Roth Capital 8/6/2020
Our valuation is based on a net asset value (NAV) analysis which produced $12.95 per share which we adjusted higher to our $13.00 per share price target.
TALO: Beats on EBITDA, Production In Line
TALO reported 2Q production of 52,400 BOE per day, 1.7% ahead of our estimate of 51,502 BOE per day and slightly lower than the consensus estimate of 54,440 BOE per day. TALO reported 2Q Adjusted EPS of $(0.45), missing the consensus figures of $(0.33) but exactly matching our figure of $(0.45). TALO’s 2Q EBITDA of $97.5 beat our figure of $92.4 million and the consensus figure of $92.6 million.
The beat was due to strong hedge revenues.
TALO expects to exit the year with a production rate between 71,000 and 73,000 BOE per day, nicely ahead of our 4Q 2020 figure of 68,291 BOE per day. For the full year 2020, TALO expects production at the low end of its previously stated production forecast range of 61,000 to 64,400 BOE per day primarily due to greater than anticipated 2Q shut-ins and Ram Powell repairs impacting 3Q production, partially offset by production from recently acquired assets. This range is in line with our current full year production estimate of 61,043 BOE per day.
We will further review these results and revise our estimates accordingly.
Our valuation is based on a net asset value (NAV) analysis which produced $12.95 per share which we adjusted higher to our $13.00 per share price target.
TALO: Beats on EBITDA, Production In Line
TALO reported 2Q production of 52,400 BOE per day, 1.7% ahead of our estimate of 51,502 BOE per day and slightly lower than the consensus estimate of 54,440 BOE per day. TALO reported 2Q Adjusted EPS of $(0.45), missing the consensus figures of $(0.33) but exactly matching our figure of $(0.45). TALO’s 2Q EBITDA of $97.5 beat our figure of $92.4 million and the consensus figure of $92.6 million.
The beat was due to strong hedge revenues.
TALO expects to exit the year with a production rate between 71,000 and 73,000 BOE per day, nicely ahead of our 4Q 2020 figure of 68,291 BOE per day. For the full year 2020, TALO expects production at the low end of its previously stated production forecast range of 61,000 to 64,400 BOE per day primarily due to greater than anticipated 2Q shut-ins and Ram Powell repairs impacting 3Q production, partially offset by production from recently acquired assets. This range is in line with our current full year production estimate of 61,043 BOE per day.
We will further review these results and revise our estimates accordingly.