TALOS ENERGY Reports Third Quarter FY2023 Earnings Results on November 7 2023
November 24, 2023
☀️Earnings Overview
On November 7 2023, TALOS ENERGY ($NYSE:TALO) reported earnings results for the third quarter of FY2023, ending on September 30 2023. There was a 1.6% increase in total revenue from the same period in the previous year, totaling USD 383.1 million. Net income for the quarter was a loss of USD 2.1 million, compared to the net income of USD 250.5 million in the same quarter of the prior year.
Price History
The stock opened at $14.0 and closed at $14.0, down by 4.2% from the last closing price of 14.6. The company attributed the weak earnings to its continued struggle with low oil prices and weak domestic demand due to the ongoing pandemic.
Additionally, the company was also hit by higher exploration and production costs, resulting in a decrease in profitability. Despite this, Talos Energy has managed to remain competitive in a challenging environment by focusing on cost cutting measures and being successful in reducing operational expenses. Overall, it has been a difficult year for TALOS ENERGY, however the company is well positioned to overcome this challenging environment and turn things around in the near future. With the current market conditions improving and oil prices expected to rise, TALOS ENERGY should be able to deliver better results going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Talos Energy. More…
| Total Revenues | Net Income | Net Margin |
| 1.42k | 104.18 | 10.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Talos Energy. More…
| Operations | Investing | Financing |
| 513.62 | -505.2 | 42.48 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Talos Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.75k | 2.69k | 16.62 |
Key Ratios Snapshot
Some of the financial key ratios for Talos Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.0% | 48.4% | 15.0% |
| FCF Margin | ROE | ROA |
| 35.7% | 6.4% | 2.8% |
Analysis
At GoodWhale, we recently completed an analysis of TALOS ENERGY‘s financial fundamentals. According to our Star Chart, it has a high health score of 7/10 due to its ability to fund and pay off debt, as well as its potential for future operations. We classified it as ‘rhino’, which we define as companies that have achieved moderate revenue or earnings growth. Given its strong growth, medium asset, profitability and weak dividend prospects, TALOS ENERGY would be interesting to a wide variety of investors. Those seeking dividend income will likely be disappointed, but those looking for strong long-term growth potential could find TALOS ENERGY an attractive option. Additionally, those seeking medium-term asset appreciation or moderate profitability could also consider it a viable investment option. More…
Peers
Talos Energy Inc is an oil and gas exploration and production company with operations in the U.S. Gulf of Mexico and offshore Mexico. The company was founded in 2010 and is headquartered in Houston, Texas. Talos Energy’s competitors include SM Energy Co, Enwell Energy PLC, and Northern Oil & Gas Inc.
– SM Energy Co ($NYSE:SM)
SM Energy Co is an American oil and gas company headquartered in Denver, Colorado. As of December 31, 2020, the company had 1.4 billion barrels of oil equivalent of proved reserves, all located in the United States. In 2020, the company’s production averaged 188 thousand barrels of oil equivalent per day.
SM Energy Co’s market cap is 5.39B as of 2022. The company has a Return on Equity of 31.47%. SM Energy Co is engaged in the exploration, development, and production of oil and gas properties. The company’s operations are focused in onshore North America, specifically in the Permian Basin, South Texas, the Gulf Coast, and the Rocky Mountains.
– Enwell Energy PLC ($LSE:ENW)
Enwell Energy PLC is an oil and gas exploration and production company with a focus on the UK North Sea. The company has a market capitalization of £78.88 million and a return on equity of 30.22%. Enwell Energy’s main activities include the exploration, development and production of oil and gas assets in the UK North Sea.
– Northern Oil & Gas Inc ($NYSE:NOG)
As of 2022, Northern Oil & Gas Inc has a market cap of 2.7B and a Return on Equity of 320.51%. The company is engaged in the exploration and production of oil and gas in the United States.
Summary
Investors in Talos Energy experienced a downturn in stock price on November 7 2023, after the company released their third quarter earnings results for the fiscal year ending September 30 2023. Total revenues increased by 1.6% year-on-year to USD 383.1 million, however net income for the quarter was a loss of USD 2.1 million, compared to the net income of USD 250.5 million recorded in the same period the year before. This indicates a substantial decrease in profitability for the quarter and could be a cause for concern for investors in Talos Energy. Therefore, it is important for investors to keep a close eye on future developments in the company’s performance as they may need to adjust their strategy based on the latest trends.
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