Talos Energy (TALO)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	992,614	1,018,770	1,000,110	977,011	585,340	652,108	788,468	925,081	956,667	978,777	976,573	1,049,360	985,512	994,748	997,041	1,033,160	732,981	697,192	697,130	665,935
Total stockholders’ equity	US$ in thousands	2,155,150	2,062,060	2,061,890	2,060,840	1,165,580	1,155,340	897,510	695,125	760,653	674,624	686,421	807,154	926,601	1,282,280	1,294,550	1,394,900	1,078,280	1,074,820	998,041	899,986
Debt-to-capital ratio		0.32	0.33	0.33	0.32	0.33	0.36	0.47	0.57	0.56	0.59	0.59	0.57	0.52	0.44	0.44	0.43	0.40	0.39	0.41	0.43

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $992,614K ÷ ($992,614K + $2,155,150K)
= 0.32

The debt-to-capital ratio of Talos Energy Inc has shown a decreasing trend over the past two years. The ratio has decreased from 0.57 in Q1 2022 to 0.32 in Q4 2023. This indicates that the company has been able to reduce its reliance on debt in financing its operations and investments relative to its total capital structure.

A lower debt-to-capital ratio suggests a stronger financial position and lower financial risk for the company. It also indicates that the company may have better access to other sources of capital, such as equity financing. However, it is important to monitor this ratio over time to ensure that the company's debt levels remain at sustainable levels and in line with its overall financial strategy.