Talos Energy Inc. provided estimated operational and financial results for second-quarter 2022, noting initiation of the HP-1 floating production unit dry-dock maintenance has been deferred and thus, had no production impact on the quarterly results.
For the quarter, the company estimates average daily production of 65,000-65,500 boe/d, comprised of about 67% oil and 75% liquids.
Realized prices before hedges are expected to be $108/bbl of oil, $37.75/bbl of NGL, and $8/Mcf of natural gas. Realized cash hedge losses of about $160 million are expected.
The company repaid $146 million of debt in second-quarter 2022, including $140 million repayment on the revolver—reducing the credit facility balance to $200 million—and $6 million retirement at maturity of its 7.5% notes.
Initiation of the HP-1 unit dry-dock maintenance process, previously scheduled to begin in June, was deferred until early August.
In its 2022 capital expenditure guidance in March, the company said it expected about 45-60 days of planned downtime for HP-1 dry-dock maintenance. The floating production unit operates Phoenix and Tornado fields in Green Canyon block 236 in the Gulf of Mexico (OGJ Online, Mar. 7, 2022).