Talos Energy (TALO) Update - Sept 19
Posted: Sun Sep 19, 2021 12:45 pm
TALO closed at $13.04 on Sept 17. First Call's price target is $18.56 and TipRanks price target is $17.67.
I have reduced my current valuation by $3.50 to $26.50.
> Due to Hurricane Ida I have reduced the Company's production from 66,300 Boepd in Q2 to 56,500 Boepd in Q3. This is just my guess because the Company has not issued a press release on the extent of the hurricane damage.
> I do expect their production to ramp back up to over 72,000 Boepd by year-end.
> Higher realized natural gas and NGL prices in Q3 and Q4 partially offset the impact of lower production.
> Talos is on a pace to generate about $80 million of free cash flow from operations this year.
> My 2022 forecast assumes production of 78,000 Boepd, approximately 64% crude oil, 29% natural gas and 7% NGLs.
I have reduced my current valuation by $3.50 to $26.50.
> Due to Hurricane Ida I have reduced the Company's production from 66,300 Boepd in Q2 to 56,500 Boepd in Q3. This is just my guess because the Company has not issued a press release on the extent of the hurricane damage.
> I do expect their production to ramp back up to over 72,000 Boepd by year-end.
> Higher realized natural gas and NGL prices in Q3 and Q4 partially offset the impact of lower production.
> Talos is on a pace to generate about $80 million of free cash flow from operations this year.
> My 2022 forecast assumes production of 78,000 Boepd, approximately 64% crude oil, 29% natural gas and 7% NGLs.