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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission File Number: 001-38497

img122349021_0.jpg

Talos Energy Inc.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

82-3532642

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

333 Clay Street, Suite 3300

Houston, TX

77002

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (713) 328-3000

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Common Stock

 

TALO

 

NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

Non-accelerated filer

 

 

Smaller reporting company

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒

As of July 27, 2021, the registrant had 81,872,498 shares of common stock, $0.01 par value per share, outstanding.

 

 

 

 


 

TABLE OF CONTENTS

 

 

 

Page

GLOSSARY

1

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

3

 

PART I — FINANCIAL INFORMATION

 

Item 1.

Condensed Consolidated Financial Statements

5

 

Condensed Consolidated Balance Sheets

5

 

Condensed Consolidated Statements of Operations

6

 

Condensed Consolidated Statements of Changes in Stockholders' Equity

7

 

Condensed Consolidated Statements of Cash Flows

8

 

Notes to Condensed Consolidated Financial Statements

9

 

Note 1 — Nature of Business and Basis of Presentation

9

 

Note 2 — Acquisitions

9

 

Note 3 — Property, Plant and Equipment

11

 

Note 4 — Leases

11

 

Note 5 — Financial Instruments

12

 

Note 6 — Debt

14

 

Note 7 — Employee Benefits Plans and Share-Based Compensation

16

 

Note 8 — Income Taxes

17

 

Note 9 — Income (Loss) Per Share

18

 

Note 10 — Related Party Transactions

18

 

Note 11 — Commitments and Contingencies

19

 

Note 12 — Subsequent Events

19

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

32

Item 4.

Controls and Procedures

32

 

PART II — OTHER INFORMATION

 

Item 1.

Legal Proceedings

33

Item 1A.

Risk Factors

33

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

33

Item 3.

Defaults Upon Senior Securities

33

Item 4.

Mine Safety Disclosures

33

Item 5.

Other Information

33

Item 6.

Exhibits

34

 

Signatures

36

 

 

 


Table of Contents

GLOSSARY

The following are abbreviations and definitions of certain terms used in this document, which are commonly used in the oil and natural gas industry:

Barrel or Bbl — One stock tank barrel, or 42 United States gallons liquid volume.

Boe — One barrel of oil equivalent determined using the ratio of six Mcf of natural gas to one barrel of crude oil or condensate.

BOEM — Bureau of Ocean Energy Management.

BSEE — Bureau of Safety and Environmental Enforcement.

Btu — British thermal unit, which is the heat required to raise the temperature of a one-pound mass of water one degree Fahrenheit.

Completion — The installation of permanent equipment for the production of oil or natural gas.

Deepwater — Water depths of more than 600 feet.

Field — An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature or stratigraphic condition.

GAAP — Accounting principles generally accepted in the United States of America.

MBbls — One thousand barrels of crude oil or other liquid hydrocarbons.

MBblpd — One thousand barrels of crude oil or other liquid hydrocarbons per day.

MBoe — One thousand barrels of oil equivalent.

MBoepd — One thousand barrels of oil equivalent per day.

Mcf — One thousand cubic feet of natural gas.

Mcfpd — One thousand cubic feet of natural gas per day.

MMBoe — One million barrels of oil equivalent.

MMBtu — One million British thermal units.

MMcf — One million cubic feet of natural gas.

MMcfpd — One million cubic feet of natural gas per day.

NGL — Natural gas liquid. Hydrocarbons which can be extracted from wet natural gas and become liquid under various combinations of increasing pressure and lower temperature. NGLs consist primarily of ethane, propane, butane and natural gasoline.

NYMEX — The New York Mercantile Exchange.

NYMEX Henry Hub — Henry Hub is the major exchange for pricing natural gas futures on the New York Mercantile Exchange. It is frequently referred to as the Henry Hub index.

OPEC — Organization of Petroleum Exporting Countries.

Proved reserves — Proved reserves are those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations - prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

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Proved undeveloped reserves — In general, proved reserves that are expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major expenditure is required for recompletion. The SEC provides a complete definition of undeveloped oil and gas reserves in Rule 4-10(a)(31) of Regulation S-K.

SEC — The U.S. Securities and Exchange Commission.

SEC pricing — The unweighted average first-day-of-the-month commodity price for crude oil or natural gas for the prior twelve months, adjusted by lease for market differentials (quality, transportation, fees, energy content, and regional price differentials). The SEC provides a complete definition of prices in “Modernization of Oil and Gas Reporting” (Final Rule, Release Nos. 33-8995; 34-59192).

Shelf — Water depths of up to 600 feet.

Working interest — The operating interest that gives the owner the right to drill, produce and conduct operating activities on the property and a share of production.

WTI or West Texas Intermediate — A light crude oil produced in the United States with an American Petroleum Institute gravity of approximately 38-40 and the sulfur content is approximately 0.3%.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The information in this Quarterly Report on Form 10-Q (this "Quarterly Report") includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this report, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “forecast,” “may,” “objective,” “plan” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. Forward-looking statements may include statements about:

business strategy;
reserves;
exploration and development drilling prospects, inventories, projects and programs;
our ability to replace the reserves that we produce through drilling and property acquisitions;
financial strategy, liquidity and capital required for our development program and other capital expenditures;
realized oil and natural gas prices;
timing and amount of future production of oil, natural gas and NGLs;
our hedging strategy and results;
future drilling plans;
availability of pipeline connections on economic terms;
competition, government regulations and political developments;
our ability to obtain permits and governmental approvals;
pending legal, governmental or environmental matters;
our marketing of oil, natural gas and NGLs;
leasehold or business acquisitions on desired terms;
costs of developing properties;
general economic conditions;
credit markets;
impact of new accounting pronouncements on earnings in future periods;
estimates of future income taxes;
our estimates and forecasts of the timing, number, profitability and other results of wells we expect to drill and other exploration activities;
the success of the Company's exclusive collaborative agreement with Storegga Geotechnologies Limited;
the Company's ongoing strategy with respect to its Zama assets;
uncertainty regarding our future operating results and our future revenues and expenses; and
plans, objectives, expectations and intentions contained in this Quarterly Report that are not historical.

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We caution you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, commodity price volatility due to the continued impact of the coronavirus disease 2019 (“COVID-19”), including any new strains or variants, and governmental measures related thereto on global demand for oil and natural gas and on the operations of our business; the ability or willingness of OPEC and non-OPEC countries, such as Saudi Arabia and Russia, to set and maintain oil production levels; the impact of any such actions; lack of transportation and storage capacity as a result of oversupply, government and regulations; lack of availability of drilling and production equipment and services; adverse weather events, including tropical storms, hurricanes, and winter storms; inflation; environmental risks; failure to find, acquire or gain access to other discoveries and prospects or to successfully develop and produce from our current discoveries and prospects; geologic risk; drilling and other operating risks; well control risk; regulatory changes; the uncertainty inherent in estimating reserves and in projecting future rates of production; cash flow and access to capital; the timing of development expenditures; potential adverse reactions or competitive responses to our acquisitions and other transactions; the possibility that the anticipated benefits of our business combination are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of acquired assets and operations, and the other risks discussed in Part I, Item 1A. “Risk Factors” of Talos Energy Inc.’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 11, 2021 (the “2020 Annual Report”).

Reserve engineering is a process of estimating underground accumulations of oil, natural gas and NGLs that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify upward or downward revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil, natural gas and NGLs that are ultimately recovered.

Should one or more of the risks or uncertainties described herein occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this Quarterly Report are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this Quarterly Report.

 

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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

TALOS ENERGY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

65,354

 

 

$

34,233

 

Accounts receivable:

 

 

 

 

 

 

Trade, net

 

 

144,763

 

 

 

106,220

 

Joint interest, net

 

 

33,057

 

 

 

50,471

 

Other

 

 

10,448

 

 

 

18,448

 

Assets from price risk management activities

 

 

39

 

 

 

6,876

 

Prepaid assets

 

 

48,813

 

 

 

29,285

 

Other current assets

 

 

1,742

 

 

 

1,859

 

Total current assets

 

 

304,216

 

 

 

247,392

 

Property and equipment:

 

 

 

 

 

 

Proved properties

 

 

5,112,597

 

 

 

4,945,550

 

Unproved properties, not subject to amortization

 

 

253,988

 

 

 

254,994

 

Other property and equipment

 

 

28,481

 

 

 

32,853

 

Total property and equipment

 

 

5,395,066

 

 

 

5,233,397

 

Accumulated depreciation, depletion and amortization

 

 

(2,897,546

)

 

 

(2,697,228

)

Total property and equipment, net

 

 

2,497,520

 

 

 

2,536,169

 

Other long-term assets:

 

 

 

 

 

 

Assets from price risk management activities

 

 

42

 

 

 

945

 

Other well equipment inventory

 

 

20,282

 

 

 

18,927

 

Operating lease assets

 

 

7,601

 

 

 

6,855

 

Other assets

 

 

22,504

 

 

 

24,258

 

Total assets

 

$

2,852,165

 

 

$

2,834,546

 

LIABILITIES AND STOCKHOLDERSʼ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

111,128

 

 

$

104,864

 

Accrued liabilities

 

 

160,602

 

 

 

163,379

 

Accrued royalties

 

 

48,768

 

 

 

27,903

 

Current portion of long-term debt

 

 

6,060

 

 

 

 

Current portion of asset retirement obligations

 

 

47,027

 

 

 

49,921

 

Liabilities from price risk management activities

 

 

230,258

 

 

 

66,010

 

Accrued interest payable

 

 

39,447

 

 

 

9,509

 

Current portion of operating lease liabilities

 

 

2,176

 

 

 

1,793

 

Other current liabilities

 

 

29,278

 

 

 

24,155

 

Total current liabilities

 

 

674,744

 

 

 

447,534

 

Long-term liabilities:

 

 

 

 

 

 

Long-term debt, net of discount and deferred financing costs

 

 

976,573

 

 

 

985,512

 

Asset retirement obligations

 

 

409,357

 

 

 

392,348

 

Liabilities from price risk management activities

 

 

44,144

 

 

 

9,625

 

Operating lease liabilities

 

 

18,380

 

 

 

18,554

 

Other long-term liabilities

 

 

42,546

 

 

 

54,372

 

Total liabilities

 

 

2,165,744

 

 

 

1,907,945

 

Commitments and Contingencies (Note 11)

 

 

 

 

 

 

Stockholdersʼ equity:

 

 

 

 

 

 

Preferred stock, $0.01 par value; 30,000,000 shares authorized and
  
no shares issued or outstanding as of June 30, 2021 and December 31, 2020

 

 

 

 

 

 

Common stock $0.01 par value; 270,000,000 shares authorized;
  
81,872,498 and 81,279,989 shares issued and outstanding as of
  June 30, 2021 and December 31, 2020, respectively

 

 

819

 

 

 

813

 

Additional paid-in capital

 

 

1,666,887

 

 

 

1,659,800

 

Accumulated deficit

 

 

(981,285

)

 

 

(734,012

)

Total stockholdersʼ equity

 

 

686,421

 

 

 

926,601

 

Total liabilities and stockholdersʼ equity

 

$

2,852,165

 

 

$

2,834,546

 

 

See accompanying notes.

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Table of Contents

TALOS ENERGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share amounts)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues and other:

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

$

267,990

 

 

$

74,471

 

 

$

497,551

 

 

$

241,095

 

Natural gas

 

 

26,131

 

 

 

11,140

 

 

 

54,365

 

 

 

23,038

 

NGL

 

 

9,647

 

 

 

1,964

 

 

 

18,760

 

 

 

6,265

 

Other

 

 

 

 

 

1,299

 

 

 

1,000

 

 

 

6,240

 

Total revenues and other

 

 

303,768

 

 

 

88,874

 

 

 

571,676

 

 

 

276,638

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expense

 

 

72,013

 

 

 

63,882

 

 

 

138,641

 

 

 

122,123

 

Production taxes

 

 

953

 

 

 

166

 

 

 

1,775

 

 

 

415

 

Depreciation, depletion and amortization

 

 

99,841

 

 

 

88,443

 

 

 

201,498

 

 

 

181,986

 

Write-down of oil and natural gas properties

 

 

 

 

 

 

 

 

 

 

 

57

 

Accretion expense

 

 

15,457

 

 

 

13,794

 

 

 

30,442

 

 

 

26,211

 

General and administrative expense

 

 

19,377

 

 

 

17,192

 

 

 

38,566

 

 

 

44,661

 

Other operating expense

 

 

2,783

 

 

 

 

 

 

2,783

 

 

 

 

Total operating expenses

 

 

210,424

 

 

 

183,477

 

 

 

413,705

 

 

 

375,453

 

Operating income (expense)

 

 

93,344

 

 

 

(94,603

)

 

 

157,971

 

 

 

(98,815

)

Interest expense

 

 

(33,570

)

 

 

(26,190

)

 

 

(67,646

)

 

 

(52,040

)

Price risk management activities income (expense)

 

 

(186,617

)

 

 

(68,682

)

 

 

(324,125

)

 

 

174,535

 

Other income (expense)

 

 

1,559

 

 

 

(528

)

 

 

(12,391

)

 

 

(674

)

Net income (loss) before income taxes

 

 

(125,284

)

 

 

(190,003

)

 

 

(246,191

)

 

 

23,006

 

Income tax benefit (expense)

 

 

(498

)

 

 

49,392

 

 

 

(1,082

)

 

 

(5,868

)

Net income (loss)

 

$

(125,782

)

 

$

(140,611

)

 

$

(247,273

)

 

$

17,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(1.54

)

 

$

(2.14

)

 

$

(3.03

)

 

$

0.28

 

Diluted

 

$

(1.54

)

 

$

(2.14

)

 

$

(3.03

)

 

$

0.28

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

81,823

 

 

 

65,807

 

 

 

81,630

 

 

 

62,023

 

Diluted

 

 

81,823

 

 

 

65,807

 

 

 

81,630

 

 

 

62,318

 

 

See accompanying notes.

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Table of Contents

TALOS ENERGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN

STOCKHOLDERS’ EQUITY

(In thousands, except share amounts)

(Unaudited)

 

Shares

 

 

Par Value

 

 

Additional

 

 

 

 

 

Total

 

 

Common Stock

 

Preferred Stock

 

 

Common Stock

 

 

Preferred Stock

 

 

Paid-In Capital

 

 

Accumulated Deficit

 

 

Stockholders' Equity

 

Balance at March 31, 2020

 

65,342,273

 

 

 

 

$

652

 

 

$

 

 

$

1,504,903

 

 

$

(110,658

)

 

$

1,394,897

 

Equity-based compensation

 

22,509

 

 

 

 

 

1

 

 

 

 

 

 

4,306

 

 

 

 

 

 

4,307

 

Issuance of common stock
  (Note 6)

 

3,050,000

 

 

 

 

 

31

 

 

 

 

 

 

35,929

 

 

 

 

 

 

35,960

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(140,611

)

 

 

(140,611

)

Balance at June 30, 2020

 

68,414,782

 

 

 

 

$

684

 

 

$

 

 

$

1,545,138

 

 

$

(251,269

)

 

$

1,294,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2021

 

81,707,214

 

 

 

 

$

817

 

 

$

 

 

$

1,661,840

 

 

$

(855,503

)

 

 

807,154

 

Equity-based compensation

 

165,284

 

 

 

 

 

2

 

 

 

 

 

 

5,047

 

 

 

 

 

 

5,049

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(125,782

)

 

 

(125,782

)

Balance at June 30, 2021

 

81,872,498

 

 

 

 

$

819

 

 

$

 

 

$

1,666,887

 

 

$

(981,285

)

 

$

686,421

 

 

 

 

Shares

 

 

Par Value

 

 

Additional

 

 

 

 

 

Total

 

 

Common Stock

 

Preferred Stock

 

 

Common Stock

 

 

Preferred Stock

 

 

Paid-In Capital

 

 

Accumulated Deficit

 

 

Stockholders' Equity

 

Balance at December 31, 2019

 

54,197,004

 

 

 

 

$

542

 

 

$

 

 

$

1,346,142

 

 

$

(268,407

)

 

$

1,078,277

 

Equity-based compensation

 

167,778

 

 

 

 

 

1

 

 

 

 

 

 

6,977

 

 

 

 

 

 

6,978

 

Issuance of preferred stock
  (Note 2)

 

 

 

110,000

 

 

 

 

 

 

1

 

 

 

156,199

 

 

 

 

 

 

156,200

 

Conversion of preferred
  stock into common
  stock (Note 2)

 

11,000,000

 

 

(110,000

)

 

 

110

 

 

 

(1

)

 

 

(109

)

 

 

 

 

 

 

Issuance of common stock
  (Note 6)

 

3,050,000

 

 

 

 

 

31

 

 

 

 

 

 

35,929

 

 

 

 

 

 

35,960

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,138

 

 

 

17,138

 

Balance at June 30, 2020

 

68,414,782

 

 

 

 

$

684

 

 

$

 

 

$

1,545,138

 

 

$

(251,269

)

 

$

1,294,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2020

 

81,279,989

 

 

 

 

$

813

 

 

$

 

 

$

1,659,800

 

 

$

(734,012

)

 

$

926,601

 

Equity-based compensation

 

592,509

 

 

 

 

 

6

 

 

 

 

 

 

7,087

 

 

 

 

 

 

7,093

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(247,273

)

 

 

(247,273

)

Balance at June 30, 2021

 

81,872,498

 

 

 

 

$

819

 

 

$

 

 

$

1,666,887

 

 

$

(981,285

)

 

$

686,421

 

 

See accompanying notes.

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Table of Contents

TALOS ENERGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

(247,273

)

 

$

17,138

 

Adjustments to reconcile net income (loss) to net cash
  provided by operating activities

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion expense

 

 

231,940

 

 

 

208,197

 

Write-down of oil and natural gas properties and other well inventory

 

 

 

 

 

190

 

Amortization of deferred financing costs and original issue discount

 

 

6,934

 

 

 

3,985

 

Equity-based compensation, net of amounts capitalized

 

 

5,681

 

 

 

3,974

 

Price risk management activities expense (income)

 

 

324,125

 

 

 

(174,535

)

Net cash received (paid) on settled derivative instruments

 

 

(117,618

)

 

 

122,499

 

Loss (gain) on extinguishment of debt

 

 

13,225

 

 

 

(1,470

)

Settlement of asset retirement obligations

 

 

(36,329

)

 

 

(18,496

)

Gain on sale of assets

 

 

(853

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(12,633

)

 

 

(5,164

)

Other current assets

 

 

(19,409

)

 

 

15,128

 

Accounts payable

 

 

3,776

 

 

 

12,645

 

Other current liabilities

 

 

48,597

 

 

 

16,039

 

Other non-current assets and liabilities, net

 

 

(1,069

)

 

 

(8,518

)

Net cash provided by operating activities

 

 

199,094

 

 

 

191,612

 

Cash flows from investing activities:

 

 

 

 

 

 

Exploration, development and other capital expenditures

 

 

(125,846

)

 

 

(154,628

)

Cash paid for acquisitions, net of cash acquired

 

 

(5,399

)

 

 

(296,966

)

Proceeds from sale of property and equipment, net

 

 

4,612

 

 

 

 

Net cash used in investing activities

 

 

(126,633

)

 

 

(451,594

)

Cash flows from financing activities:

 

 

 

 

 

 

Issuance of senior notes

 

 

600,500

 

 

 

 

Redemption of senior notes and other long-term debt

 

 

(356,803

)

 

 

(1,209

)

Proceeds from Bank Credit Facility

 

 

 

 

 

300,000

 

Repayment of Bank Credit Facility

 

 

(240,000

)

 

 

 

Deferred financing costs

 

 

(25,981

)

 

 

(1,287

)

Other deferred payments

 

 

(5,575

)

 

 

(7,575

)

Payments of finance lease

 

 

(10,361

)

 

 

(8,323

)

Employee stock awards tax withholdings

 

 

(3,120

)

 

 

(791

)

Net cash (used in) provided by financing activities

 

 

(41,340

)

 

 

280,815