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Talos Energy
(NYSE:TALO)
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Rating:61Neutral
Price Target:
$18.00
▲(9.09% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by mixed financial performance (strong cash generation and manageable leverage, but weak and volatile profitability) and a positive earnings-call backdrop (raised production outlook and record adjusted free cash flow with improved liquidity). Technicals are neutral and valuation is constrained by a negative P/E and no dividend yield support.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow provides Talos with internal funding for development, debt management, and shareholder returns. Generating cash despite reported net losses also indicates that recent cash economics remain stronger than accounting profitability, although historical variability warrants monitoring.
Negative Factors
Weak Profitability
Very thin gross margins and a sizable TTM net loss weaken the durability of earnings and reduce flexibility when operating conditions deteriorate. The shift from prior profitability to material losses also shows that reported results can change sharply, complicating capital planning and sustainable return generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow provides Talos with internal funding for development, debt management, and shareholder returns. Generating cash despite reported net losses also indicates that recent cash economics remain stronger than accounting profitability, although historical variability warrants monitoring.
Read all positive factors
Talos Energy (TALO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.81B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth2.44%
EPS Growth-144.04%
CountryUS
Employees700
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-2.34
Shares Outstanding166,965,470
10 Day Avg. Volume1,698,791
30 Day Avg. Volume1,924,467
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.89
Price to Sales (P/S)1.08
P/FCF Ratio4.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$18.83Price Target Upside14.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.02
Revenue Forecast (FY)$2.18B
Talos Energy Business Overview & Revenue Model
Company Description
Talos Energy Inc. functions as an autonomous entity engaged in the discovery and extraction of hydrocarbon resources. The company primarily targets oil and natural gas fields situated in the U.S. Gulf of Mexico and within Mexico's offshore territo...
How the Company Makes Money
Talos Energy primarily makes money by producing and selling crude oil, natural gas, and natural gas liquids from its operated and non-operated working interests in offshore Gulf of Mexico fields. Revenue is generated when produced volumes are deli...
Talos Energy Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, record free cash flow, improved liquidity and a series of strategic portfolio actions (bolt-on acquisition, Mexico farm-in, Honduras acreage, and shelf divestment) that collectively reinforce long-term growth and margin improvement. Most negatives are execution/timing risks (pending close of the bolt-on, divestiture production impact, high absolute borrowing costs and project timing dependencies) but are relatively limited compared with the multiple positive financial and operational developments.Positive Updates
Strong Production Outperformance
Q2 oil production averaged ~69,000 bbl/d and total production averaged ~94,000 BOE/d, both exceeding guidance; company raised full-year 2026 stand-alone production guidance to 64,000–68,000 bbl/d oil and 87,000–91,000 BOE/d (excludes pending Gulf of America acquisition). Q3 guide: 61,000–65,000 bbl/d oil and 81,000–85,000 BOE/d.
Negative Updates
Pending Acquisition and Realization Risk
Gulf of America bolt-on (Na Kika/Coulomb) remains subject to closing (expected later in Q3) and integration; anticipated production and accretion are contingent on successful close and execution, so benefits are not yet realized.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Production Outperformance
Q2 oil production averaged ~69,000 bbl/d and total production averaged ~94,000 BOE/d, both exceeding guidance; company raised full-year 2026 stand-alone production guidance to 64,000–68,000 bbl/d oil and 87,000–91,000 BOE/d (excludes pending Gulf of America acquisition). Q3 guide: 61,000–65,000 bbl/d oil and 81,000–85,000 BOE/d.
Read all positive updates
Company Guidance
Talos raised its stand‑alone full‑year 2026 production outlook to 64,000–68,000 bbl/d of oil and 87,000–91,000 BOE/d (excludes the pending Gulf of America bolt‑on, includes the non‑core shelf divestment), and set Q3 guidance at 61,000–65,000 bbl/d and 81,000–85,000 BOE/d, with updated company guidance to follow after the expected close of the acquisition later in Q3. The raise follows Q2 outperformance (~69,000 bbl/d oil and ~94,000 BOE/d), record adjusted free cash flow of ≈$232M and adjusted EBITDA of ≈$402M; cash on hand was ≈$578M, total liquidity ≈$1.2B and leverage ~0.5x. Management said the bolt‑on produced ~18,000 BOE/d in Q2 and should be accretive (roughly a ~20% oil production lift), the shelf sale eliminates ≈$54M of future ARO, the company issued $800M of 8% notes due 2034 (redeemed $625M 9% notes due 2029) and increased its borrowing base to $850M on close; pro‑forma year‑end 2027 leverage is expected to be below 1x, and the return‑of‑capital framework remains to return up to 50% of annual free cash flow (≈$135M returned since Q2 2025, reducing shares by ~7%).Talos Energy Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.98B | 1.78B | 1.97B | 1.46B | 1.65B | 1.24B |
| Gross Profit | 609.66M | 51.36M | 382.59M | 402.28M | 925.77M | 561.58M |
| EBITDA | 656.35M | 740.47M | 1.26B | 1.05B | 966.11M | 402.67M |
| Net Income | -407.05M | -496.36M | -76.39M | 187.33M | 381.92M | -182.95M |
Balance Sheet | ||||||
| Total Assets | 5.43B | 5.55B | 6.19B | 4.82B | 3.06B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 577.59M | 362.81M | 108.17M | 33.64M | 44.15M | 69.85M |
| Total Debt | 1.24B | 1.24B | 1.24B | 1.20B | 602.14M | 980.77M |
| Total Liabilities | 3.40B | 3.38B | 3.43B | 2.66B | 1.89B | 2.01B |
| Stockholders Equity | 2.03B | 2.17B | 2.76B | 2.16B | 1.17B | 760.65M |
Cash Flow | ||||||
| Free Cash Flow | 330.79M | 453.92M | 453.68M | -42.37M | 386.57M | 118.06M |
| Operating Cash Flow | 790.59M | 935.83M | 962.59M | 519.07M | 709.74M | 411.39M |
| Investing Cash Flow | -446.91M | -546.75M | -1.32B | -512.63M | -311.98M | -293.75M |
| Financing Cash Flow | -154.17M | -164.52M | 436.12M | 85.41M | -423.47M | -82.02M |
Talos Energy Technical Analysis
Positive
16.50
Price Trends
15.14
Positive
15.06
Positive
13.81
Positive
Market Momentum
0.58
Positive
57.30
Neutral
64.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TALO, the sentiment is Positive. The current price of 16.5 is below the 20-day moving average (MA) of 16.62, above the 50-day MA of 15.14, and above the 200-day MA of 13.81, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 64.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TALO.
Talos Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.17B | 7.14 | 27.20% | ― | 26.65% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $4.55B | 96.99 | 1.12% | 3.38% | 24.25% | ― | |
63 Neutral | $5.22B | 18.33 | 5.71% | 3.66% | 7.73% | 5.87% | |
62 Neutral | $4.48B | 8.61 | 20.61% | 5.07% | 17.31% | ― | |
61 Neutral | $2.81B | -7.33 | -19.26% | ― | 2.44% | -144.04% | |
53 Neutral | $1.66B | -2.39 | -81.93% | 6.93% | 9.93% | -253.33% |
* Energy Sector Average
TALO
Talos Energy
17.16
7.64
80.25%
CRK
Comstock Resources
15.16
-0.24
-1.56%
KOS
Kosmos Energy
2.85
1.23
75.93%
MUR
Murphy Oil
37.58
13.65
57.03%
GPOR
Gulfport Energy
180.04
9.80
5.76%
CRGY
Crescent Energy Company Class A
14.19
6.31
80.10%
Talos Energy Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Talos Energy Restores Share Repurchase Authorization, Highlights Q2 Strength
Positive
Aug 4, 2026
Talos Energy reported strong operational and financial results for the second quarter ended June 30, 2026, with oil production of 68.6 MBo/d and total output of 93.7 MBoe/d, both exceeding guidance. The company generated $300.6 million in operatin...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Talos Energy Expands Offshore Mexico Position with Block 29 Farm-In
Positive
Jul 27, 2026
On July 22, 2026, Talos Energy and its subsidiaries amended their credit agreement to increase the capacity of restricted foreign subsidiaries to incur up to $350 million of project financing indebtedness for assets in Mexico, excluding that debt ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Talos Energy Refinances Debt to Support Gulf Acquisition
Positive
Jul 13, 2026
On July 13, 2026, Talos Production Inc., a wholly owned subsidiary of Talos Energy, issued $800 million of 8.000% second-priority senior secured notes due 2034, guaranteed by Talos and certain subsidiaries and secured by second-priority liens on c...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Talos Energy Prices $800 Million Notes for Expansion
Positive
Jul 2, 2026
On July 1, 2026, Talos Production issued a conditional notice to redeem all of its outstanding 9.000% second-priority senior secured notes due 2029 at 104.500% of principal plus accrued interest, with redemption expected on July 13, 2026. The rede...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Talos Energy Launches Major Offshore Expansion Financing Plan
Positive
Jul 1, 2026
On July 1, 2026, Talos Production Inc., a wholly owned subsidiary of Talos Energy, launched a private offering of $800 million in second-priority senior secured notes due 2034 to eligible investors, with the deal exempt from U.S. securities regist...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Talos Energy to Acquire Shell Gulf Deepwater Assets
Positive
Jun 30, 2026
Talos Energy and an affiliate of Ridgewood Energy agreed on June 30, 2026 to acquire from Shell deepwater oil and gas interests in the Gulf of America’s Mississippi Canyon for an unadjusted $1.7 billion, giving each buyer a 50% stake in the ...
Executive/Board ChangesShareholder Meetings
Talos Energy Stockholders Approve Directors and Executive Pay
Positive
Jun 9, 2026
At its 2026 annual meeting, Talos Energy stockholders elected six directors to one-year terms expiring at the 2027 annual meeting, while director Paula R. Glover concluded her service and the board size was reduced from seven to six. Stockholders ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.