Talos Energy (NYSE: TALO) reported Q3 EPS of $0.81, $0.13 better than the analyst estimate of $0.68. Revenue for the quarter came in at $228.9 million versus the consensus estimate of $241.76 million.

Key third quarter highlights include:

• Production of 52.6 thousand barrels of oil equivalent per day ("MBoe/d"), or 4.8 million barrels of oil equivalent ("MMBoe") in total, of which 73% was oil and 80% was liquids. As previously disclosed, third quarter production was impacted by Hurricane Barry, resulting in the deferral of approximately 4.0 MBoe/d.
• Revenue(1) of $228.9 million and average realized prices of $59.54/Bbl of oil and $2.12/Mcf of natural gas, net of deductions. 93% of operating revenues were derived from oil production and reflect a significant realized price premium, which is net of transport and quality deductions, of $3.09/Bbl above the average WTI benchmark price of $56.45/Bbl during the same period.
• Net Income of $73.3 million ($1.35 earnings per share – diluted) and Adjusted Net Income(2) of $44.3 million ($0.81 adjusted earnings per share – diluted).
• Adjusted EBITDA(2) of $157.8 million and Adjusted EBITDA excluding hedges(2) of $152.4 million. Adjusted EBITDA Margin(2) per Boe of $32.57, or 69%, and Adjusted EBITDA Margin excluding hedges(2) per Boe of $31.47, or 67%.
• Capital expenditures of $115.8 million, including investment of $99.7 million in the U.S. Gulf of Mexico and $16.1 million in offshore Mexico.
• As of September 30, 2019, liquidity position of $612.1 million. Net Debt to Last Twelve Months ("LTM") Adjusted EBITDA(2) was 1.1x.
• In the third quarter of 2019, the Company had a successful discovery in offshore Mexico Block 31, executed two separate exploration transactions with BP and ExxonMobil, respectively, and drilled and completed its Grand Isle 82 A-22 exploration well, which achieved first production in October 2019.
• The Company was added to the S&P SmallCap 600 Index on November 1, 2019. Talos was included in the Index as one of just 19 exploration and production companies and was the sixth largest by market capitalization amongst the Energy Sector designated companies. Talos was also included in the S&P SmallCap 600 GICS Oil and Gas Exploration and Production Sub-Industry Index.

President and Chief Executive Officer Timothy S. Duncan commented: "I am proud of our team for achieving another positive earnings quarter, bolstered by another period of generating significant free cash flow in our U.S. Gulf of Mexico business. Our focus on investing in opportunities around core infrastructure that we own or operate continues to allow us to achieve top quartile net back margins, which are enhanced by better than expected results of our cost control initiatives throughout 2019. We also continue to balance those investments with high impact exploration projects, including more success in offshore Mexico.

As we begin to focus on our 2020 drilling campaign, success in our Bulleit project and acceleration of first oil at Orlov provide a strong foundation, with additional potential upside from our exploration activities related to our recent Puma West and Hershey transactions. Among other activities, we plan to execute a platform rig contract for a near-field drilling program around assets we acquired in the past year and we look forward to progressing our offshore Mexico discoveries closer to final investment decisions.

We believe our strategy of combining low entry cost M&A with field development upside and high impact exploration, while also maintaining a prudent financial and conservative leverage profiles and strong free cash flow generation, allows us to grow equity value while maintaining a strong balance sheet. We are excited about the direction of the Company moving forward."

For earnings history and earnings-related data on Talos Energy (TALO) click here.