Track market-moving stories before they get noisy

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Talos Energy (TALO - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Talos Energy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if TALO is a promising momentum pick, let's examine some Momentum Style elements to see if this independent oil and gas company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For TALO, shares are up 5.77% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 1.98% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.47% compares favorably with the industry's 1.25% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Talos Energy have increased 19.02% over the past quarter, and have gained 94.63% in the last year. On the other hand, the S&P 500 has only moved 1.92% and 16.73%, respectively.

Investors should also take note of TALO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now TALO is averaging 3,012,882 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TALO.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TALO's consensus estimate, increasing from $1.37 to $2.04 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that TALO is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Talos Energy on your short list.

Talos Energy Inc. (NYSE:TALO – Get Free Report) insider Control Empresarial De Capital sold 2,700,000 shares of the company’s stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $17.51, for a total value of $47,277,000.00. Following the completion of the transaction, the insider owned 29,659,036 shares of the company’s stock, valued at $519,329,720.36. The trade was a 8.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink.

Control Empresarial De Capital also recently made the following trade(s):

On Wednesday, October 14th, Control Empresarial De Capital sold 265,446 shares of Talos Energy stock. The stock was sold at an average price of $17.30, for a total value of $4,592,215.80.
On Monday, October 12th, Control Empresarial De Capital sold 2,200,000 shares of Talos Energy stock. The stock was sold at an average price of $17.25, for a total value of $37,950,000.00.
On Friday, October 9th, Control Empresarial De Capital sold 1,730,000 shares of Talos Energy stock. The stock was sold at an average price of $17.08, for a total transaction of $29,548,400.00.
On Thursday, October 8th, Control Empresarial De Capital sold 2,310,000 shares of Talos Energy stock. The stock was sold at an average price of $17.03, for a total transaction of $39,339,300.00.
On Tuesday, October 6th, Control Empresarial De Capital sold 480,000 shares of Talos Energy stock. The shares were sold at an average price of $16.96, for a total transaction of $8,140,800.00.
On Tuesday, September 15th, Control Empresarial De Capital sold 1,381,000 shares of Talos Energy stock. The shares were sold at an average price of $18.52, for a total transaction of $25,576,120.00.

Talos Energy Trading Up 4.4%
Shares of TALO stock opened at $17.73 on Friday. Talos Energy Inc. has a 52-week low of $8.97 and a 52-week high of $18.73. The stock has a market cap of $2.96 billion, a price-to-earnings ratio of -7.45 and a beta of 0.42. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.61 and a current ratio of 1.61. The firm has a fifty day moving average of $16.85 and a 200-day moving average of $15.46.

Talos Energy (NYSE:TALO – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.36 by $0.21. Talos Energy had a negative net margin of 20.46% and a negative return on equity of 1.94%. The company had revenue of $664.81 million during the quarter, compared to the consensus estimate of $577.92 million. During the same period last year, the firm earned ($0.27) EPS. The firm’s revenue for the quarter was up 56.5% compared to the same quarter last year. On average, equities research analysts forecast that Talos Energy Inc. will post 1.73 earnings per share for the current fiscal year.
Analysts Set New Price Targets
Several research firms recently issued reports on TALO. Citigroup increased their price target on shares of Talos Energy from $18.00 to $21.00 and gave the stock a “buy” rating in a research report on Thursday. Stephens restated an “overweight” rating and set a $20.00 price target on shares of Talos Energy in a research note on Wednesday, July 1st. Zacks Research raised Talos Energy from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 11th. Roth Capital raised Talos Energy from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $16.00 to $17.00 in a report on Wednesday, July 1st. Finally, Wall Street Zen upgraded Talos Energy from a “hold” rating to a “strong-buy” rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $19.43.

Read Our Latest Analysis on Talos Energy

Institutional Inflows and Outflows
Several hedge funds have recently bought and sold shares of the stock. WINTON GROUP Ltd grew its holdings in shares of Talos Energy by 1,717.7% in the 2nd quarter. WINTON GROUP Ltd now owns 223,579 shares of the company’s stock worth $2,886,000 after purchasing an additional 211,279 shares during the last quarter. De Lisle Partners LLP bought a new position in Talos Energy during the 2nd quarter valued at about $2,144,000. Webs Creek Capital Management LP bought a new position in Talos Energy during the 2nd quarter valued at about $27,039,375. Bank of America Corp DE bought a new position in Talos Energy during the 2nd quarter valued at about $7,338,000. Finally, Annis Gardner Whiting Capital Advisors LLC boosted its position in Talos Energy by 394,736.8% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 300,076 shares of the company’s stock valued at $4,729,000 after buying an additional 300,000 shares in the last quarter. 89.35% of the stock is currently owned by institutional investors and hedge funds.

About Talos Energy
(Get Free Report)

Talos Energy Inc is an independent energy company engaged primarily in the exploration, development and production of oil and natural gas. The company focuses on offshore assets in the U.S. Gulf of Mexico, where it operates and holds interests in producing fields and prospective exploration acreage.

Talos uses seismic data, drilling and reservoir-management techniques to identify and develop hydrocarbon resources. Its operations are concentrated in the Gulf of Mexico region, with activities spanning exploration, field development, production and related infrastructure.

Founded in 2012, Talos became a publicly traded company in 2018 through its combination with Stone Energy Corporation.

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Talos Energy (TALO - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Talos Energy basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Talos Energy, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Talos EnergyThis independent oil and gas company is expected to earn $1.80 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Talos Energy. Over the past three months, the Zacks Consensus Estimate for the company has increased 241.5%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Talos Energy to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

, /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced the appointment of Barbara J. Faulkenberry, Major General, U.S. Air Force (Retired), to its Board of Directors, effective October 1, 2026. General Faulkenberry's appointment will expand the Board to seven directors.

Talos Chairman of the Board Neal P. Goldman commented, "We are very pleased to add Barbara to Talos's Board. Barbara brings more than three decades of leadership experience and a unique combination of global operations, logistics, strategy, and risk management expertise developed during a distinguished military career and prior public company board service. We believe her background and perspective will be a valuable asset as we continue executing our long-term strategy to strengthen Talos's position as the leading pure-play offshore E&P company."

General Faulkenberry retired from the United States Air Force in 2014 as a Major General (2-stars) after a 32-year career. Her last assignment was as Vice Commander (COO) overseeing rapid global mobility operations of 37,000 personnel and 1,100 aircraft. General Faulkenberry received a Bachelor of Science from the United States Air Force Academy, a Master of Business Administration from Georgia College & State University, and a Master of National Security from the National Defense University. She has also completed strategic leadership courses at Harvard University, University of Cambridge, and Syracuse University.

General Faulkenberry brings to the Company senior leadership experience in the areas of global operations, logistics, and risk management, as well as extensive public company board experience, including six years of service on the board of Callon Petroleum Company, a publicly traded exploration and production company, where she served on the Audit and Compensation Committees and chaired the Nominating and ESG Committee. She also served on the boards of Target Hospitality Corp. and USA Truck, Inc., where she chaired the Technology and Strategy & Risk Committees.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely maximizing long-term value through its Exploration & Production business in the United States Gulf of America and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while maintaining a focus on safe and efficient operations, environmental responsibility, and community impact. For more information, visit www.talosenergy.com.

INVESTOR RELATIONS CONTACT

Kyle Sahni
[email protected]

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This communication may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this communication, the words "will," "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. All statements, other than statements of historical fact included in this communication, are forward-looking statements, including, but not limited to, statements regarding our plans and expectations regarding the Company's long-term strategy to strengthen its position as the leading pure-play offshore E&P company, the director's contributions to the Board, and the Company's prospects, plans and objectives of management. 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.

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, our ability to successfully execute our strategy; integrate and realize the anticipated benefits of our acquisitions; the risk that actual production, operating costs, capital expenditures, reserves, recoverable resources or cash flows differ materially from current estimates; changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; environmental, technical or operating factors; the uncertainty inherent in projecting future rates of production, cash flows and access to capital; the timing of expenditures; risks associated with future decommissioning, abandonment and asset retirement obligations that may exceed current estimates; risks associated with future financial assurance or other regulatory requirements applicable to our assets; risks and uncertainties related to economic, market or business conditions; and the other risks and uncertainties discussed in our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other Securities and Exchange Commission filings.

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 communication 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 communication.

SOURCE Talos Energy

Company schedules earnings conference call to announce third quarter 2026 results

, /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced the closing of its previously announced acquisition of certain deepwater assets in the Gulf of America from Shell Offshore Inc. ("Shell"), alongside an affiliate of Ridgewood Energy Corporation. The transaction includes a 50% working interest and operatorship in the Coulomb field and a 25% non-operated working interest in the BP-operated Na Kika platform and four associated fields (the "Acquisition"). The final net cash purchase price at closing was $420 million, which includes the previously escrowed $42.5 million deposit, and is subject to customary post-closing adjustments.

Talos President and Chief Executive Officer Paul Goodfellow commented, "The closing of this transaction marks another important step in executing our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P. These high-quality, oil-weighted assets immediately enhance our scale, increase free cash flow generation, improve our margins, and provide infrastructure-led growth opportunities that leverage our core strengths in the Gulf of America."

Third quarter 2026 results will include contributions from the acquired assets from the closing date through quarter-end, with the acquired assets fully consolidated beginning in the fourth quarter of 2026. Updated full-year 2026 guidance will be provided in conjunction with the Company's third quarter 2026 earnings release.

THIRD QUARTER 2026 RESULTS AND EARNINGS CONFERENCE CALL

The Company intends to release third quarter 2026 results for the period ended September 30, 2026, on Tuesday, November 3, 2026, after the U.S. financial market closes. In addition to this release, Talos will host a conference call, broadcast live over the internet, on Wednesday, November 4, 2026, at 10:00 AM Eastern Time (9:00 AM Central Time).

Listeners can access the conference call through a webcast link on the Company's website at: Talos Third Quarter 2026 Webcast. Alternatively, the conference call can be accessed by dialing (800) 836-8184 (North American toll-free) or (646) 357-8785 (international). Please dial in approximately 15 minutes before the teleconference is scheduled to begin and ask to be joined into the Talos Energy call. A replay of the call will be available one hour after the conclusion of the conference until November 11, 2026 and can be accessed by dialing (888) 660-6345 and using access code 30408#.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely maximizing long-term value through its Exploration & Production business in the United States Gulf of America and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while maintaining a focus on safe and efficient operations, environmental responsibility, and community impact. For more information, visit www.talosenergy.com.

INVESTOR RELATIONS CONTACT
Kyle Sahni
[email protected]

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This communication may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  When used in this communication, the words "will," "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. All statements, other than statements of historical fact included in this communication, are forward-looking statements, including, but not limited to, statements regarding our plans and expectations regarding the Acquisition, including our ability to realize the anticipated financial, operational, reserve, production and free cash flow benefits of the Acquisition, the anticipated impact of the Acquisition on our financial position, growth opportunities and competitive position, and our projected costs, prospects, plans and objectives of management. 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.

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, our ability to integrate the assets and realize the anticipated benefits of the Acquisition; the risk that actual production, operating costs, capital expenditures, reserves, recoverable resources or cash flows associated with the acquired assets differ materially from current estimates; changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance, including faster-than-expected production declines, lower recoveries or unexpected reservoir behavior; risks related to third-party operatorship of the related platform; environmental, technical or operating factors; the uncertainty inherent in projecting future rates of production, cash flows and access to capital; the timing of expenditures; risks associated with future decommissioning, abandonment and asset retirement obligations that may exceed current estimates; risks associated with future financial assurance, supplemental bonding or other regulatory requirements applicable to the assets; risks and uncertainties related to economic, market or business conditions; and the other risks and uncertainties discussed in our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other Securities and Exchange Commission filings.

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 communication 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 communication.

SOURCE Talos Energy

John B. Spath reported a sale of 90,000 shares of Talos Energy (TALO +4.84%) common stock on August 27, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$1.5 millionShares sold90,000Post-transaction shares (directly held)178,788Post-transaction value$2.99 millionTransaction value based on SEC Form 4 weighted average sale price ($16.90); post-transaction value based on August 27, 2026 market close ($16.73).

Key questionsHow does the execution price compare to recent market levels?
The shares were sold at a weighted average price of $16.90, slightly above the market close of $16.73 on the August 27, 2026 transaction date.What is the status of the insider's remaining equity position?
Following the transaction, Spath continues to hold ~179,000 shares directly, representing a 0.11% ownership interest in Talos Energy as of the August 31, 2026 filing.What were the execution details of the open-market sale?
The 90,000 shares were liquidated in multiple transactions at prices ranging from $16.79 to $16.96 per share.How does this move relate to the company's operational context?
The disposition occurred as the Houston-based hydrocarbon producer continues its focus on oil and natural gas fields in the U.S. Gulf of Mexico and Mexico's offshore territories.Company OverviewMetricValueShare Price (as of market close 2026-08-28)$16.67Market Capitalization$2.8 billionRevenue (TTM)$2.0 billionNet Income (TTM)-$407.0 millionCompany SnapshotTalos Energy engages in the exploration, development, and production of crude oil and natural gas reserves, with operations concentrated in the U.S. Gulf of Mexico and offshore Mexico, generating revenue through the sale of hydrocarbons to energy markets.The company operates an integrated upstream business model focused on identifying and developing high-return oil and gas fields in deepwater and shallow-water environments, monetizing proven reserves through production and sales operations.Talos Energy serves major energy consumers and downstream operators, including refineries and industrial users, that require crude oil and natural gas for processing and energy generation.Talos Energy is an independent oil and gas exploration and production company with a market capitalization of $2.8 billion and TTM revenues of $2.0 billion, operating a diversified portfolio of offshore assets in the Gulf of Mexico region. The company maintains proven reserves of approximately 161.59 million barrels of oil equivalent as of year-end 2021, positioning it as a meaningful participant in North American hydrocarbon production. Talos Energy's competitive positioning derives from its focused geographic footprint, operational expertise in deepwater environments, and access to established infrastructure in mature producing basins.

What this transaction means for investorsInsider transactions can be complex. Some involve intricate estate planning strategies or tax implications. Therefore, it's best for average investors to return to fundamentals. With that in mind, let's have a closer look at Talos Energy (TALO).

To start, let's review how TALO stock has performed. Since 2021, the stock has underperformed the broader stock market. Shares of TALO have generated a total return of 37%, equating to a compound annual growth rate (CAGR) of 6.5%. The S&P 500, meanwhile, has delivered a total return of 83%, with a CAGR of 12.9%.

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Turning to the company's metrics, TALO stock paints a mixed picture. Some measures, like revenue, are quite encouraging. Total revenue has climbed from around $1.0 billion in 2021 to nearly $2.0 billion over the last 12 months. In addition, the company has substantially reduced its overall debt, with net debt falling from a high of around $1.7 billion in 2024 to less that $0.8 billion now.

However, there are other areas where the figures are less impressive. TALO's operating margin, for example, has fallen from a high of 47% in 2022 to only 6% now. Valuation is another concern. The stock's price-to-sales (P/S) ratio has moved to 1.60x. That's still low compared to many other stocks, but it's near a five-year high of 1.64x for TALO. For context, the stock's five-year average is around 1.00x.

In summary, TALO stock is a complex case. Some figures, like debt and revenue are encouraging. But, others, such as valuation and profitability raise questions. Investors considering adding an energy stock may want to keep an eye on TALO to see if the company's fundamentals decisively move one way or the other in the coming quarters.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Talos Energy (TALO - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Talos Energy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if TALO is a promising momentum pick, let's examine some Momentum Style elements to see if this independent oil and gas company holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For TALO, shares are up 1.02% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 1.1% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 17.11% compares favorably with the industry's 8.75% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Talos Energy have increased 12.57% over the past quarter, and have gained 77.82% in the last year. In comparison, the S&P 500 has only moved 1.98% and 19.92%, respectively.

Investors should also pay attention to TALO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. TALO is currently averaging 1,713,715 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TALO.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TALO's consensus estimate, increasing from $0.60 to $1.80 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that TALO is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Talos Energy on your short list.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Talos Energy (TALO - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Talos Energy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if TALO is a promising momentum pick, let's examine some Momentum Style elements to see if this independent oil and gas company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For TALO, shares are up 9.67% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 4.55% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 10.77% compares favorably with the industry's 2.5% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Talos Energy have increased 10.54% over the past quarter, and have gained 99.51% in the last year. On the other hand, the S&P 500 has only moved 4.19% and 20.55%, respectively.

Investors should also pay attention to TALO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. TALO is currently averaging 1,996,904 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TALO.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TALO's consensus estimate, increasing from $0.65 to $1.16 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that TALO is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Talos Energy on your short list.

Talos Energy (NYSE:TALO) reported record adjusted free cash flow in the second quarter of 2026 as production exceeded guidance, while the offshore exploration and production company raised its full-year standalone production outlook and outlined progress on acquisitions, development projects and international expansion.

President and Chief Executive Officer Paul Goodfellow said oil production averaged about 69,000 barrels per day during the quarter, while total production averaged nearly 94,000 barrels of oil equivalent per day. Both figures exceeded the company’s guidance expectations. Goodfellow said production optimization efforts, higher operational uptime and continued outperformance from the Cardona well supported the results.

“The second quarter was characterized by solid execution across our base business,” Goodfellow said, adding that Talos had achieved more than two-thirds of its 2026 target under its Optimal Performance Plan during the first half of the year.

Cash Flow, Guidance and Balance Sheet Executive Vice President and Chief Financial Officer Zach Dailey said Talos generated approximately $402 million of adjusted EBITDA and a record approximately $232 million of adjusted free cash flow in the second quarter. The results were driven by production above guidance and crude-oil realizations that were stronger relative to WTI, he said.

The company increased its full-year 2026 standalone guidance to:

64,000 to 68,000 barrels of oil per day 87,000 to 91,000 barrels of oil equivalent per day The updated outlook excludes Talos’ pending Gulf of America bolt-on acquisition and includes the impact of a non-core, gas-weighted shelf divestment that closed early in the third quarter. Dailey said the base business was performing well enough to more than offset the production effect of the divestiture.

For the third quarter, Talos expects oil production of 61,000 to 65,000 barrels per day and total production of 81,000 to 85,000 BOE per day, also excluding the pending bolt-on transaction. The company expects to provide updated guidance after the acquisition closes, which it anticipates will occur later in the third quarter.

Cash on hand rose to about $578 million at the end of the second quarter, while total liquidity reached about $1.2 billion and the leverage ratio declined to 0.5 times, Dailey said.

Talos issued $800 million of 8% senior notes due 2034. The proceeds were used to redeem its $625 million of 9% notes due 2029 and fund a portion of the pending acquisition. The company also secured $150 million in incremental commitments from its bank group, increasing its credit-facility borrowing base to $850 million from $700 million upon the acquisition’s closing.

Dailey said Talos continues to expect pro forma year-end 2027 leverage below one times, in line with its long-term target. The company’s shareholder-return framework remains unchanged, with up to 50% of annual free cash flow targeted for share repurchases. Talos did not repurchase shares during the second quarter because of an acquisition-related corporate blackout period. Since announcing the framework in the second quarter of 2025, the company has returned about $135 million through buybacks and reduced its share count by about 7%.

Gulf of Mexico Operations and Pending Bolt-On Goodfellow highlighted the completion of the Genovesa workover, which returned the well to production ahead of schedule late in the second quarter and performed in line with expectations. During planning, Talos identified additional work that could support future access to a secondary zone, he said.

The company’s drilling and completion program has operated with approximately 50% lower nonproductive time than the Gulf of Mexico basin average year to date, according to Goodfellow.

At Monument, the first development well has been drilled and the operator is moving to the second well. Talos expects production from the project near the end of the year. The company also expects the first Brutus well to spud in the third quarter following rig reactivation activities. Its Daenerys appraisal program has begun, with results from the first appraisal well expected before year-end.

Talos contracted the West Vela rig for 12 months, with options beyond that term. Executive Vice President of Exploration and Development Bill Langin said the company expects to receive the rig around the middle of 2027, depending on the rig’s current operations. He said Talos kept pricing relatively close to previous levels by leveraging its existing relationship with Seadrill. Follow-on activity at Daenerys could be included in the rig program, although the contract is not dependent on that project alone.

On its pending Gulf of America acquisition, Goodfellow said BP elected not to exercise its preferential right. Talos will operate the Coulomb field and become a partner in the Na Kika platform and associated fields. The acquired assets produced approximately 18,000 BOE per day in the second quarter, according to Goodfellow, and are expected to be accretive to Talos’ average oil cut, unit operating expense and EBITDA margin.

Talos is evaluating an operated Coulomb drilling opportunity that could compete for capital in 2027. Goodfellow said the company aims to apply its strategy of pursuing lower-unit-cost, short-cycle tiebacks around acquired infrastructure.

Mexico and Honduras Expansion Talos also discussed its offshore Mexico farm-in and newly established offshore Honduras acreage position. In Mexico’s Block 29, the company and Repsol are the sole partners. The development-led opportunity is anchored by the existing Polok and Chinwol oil discoveries, and Talos is working toward submission of a field development plan to CNOOC and a targeted final investment decision in 2027.

Langin said the Block 29 partners are preparing for a potential exploration well late next year. The company sees the project as a Miocene-sand development opportunity similar to producing intervals on the U.S. side of the Gulf of Mexico. Talos said it has sufficiently high-quality seismic data and does not expect to add to its seismic inventory in the near term.

Goodfellow said the discoveries are entirely within the block, distinguishing the project from Talos’ Zama experience, where unitization resulted from a discovery extending onto a Pemex block.

In Honduras, Talos holds about 4 million acres of deepwater acreage and plans to begin the area’s first 3D seismic program in the second half of 2026. Langin said the company sees four to five exploration plays and expects to obtain an environmental permit to drill by year-end. Once received, the permit would start a two-year clock, giving Talos time to evaluate seismic results and decide whether to drill.

Goodfellow said Talos will continue to prioritize disciplined execution, investment in its base business, balance-sheet strength and shareholder returns while evaluating selective growth opportunities across its offshore portfolio.

About Talos Energy (NYSE:TALO) Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

Talos Energy Inc. (TALO) Q2 2026 Earnings Call August 5, 2026 10:00 AM EDT

Company Participants

Kyle Sahni
Paul Goodfellow - President, CEO & Director
Zachary Dailey - Executive VP & CFO
William Langin - Executive Vice President of Exploration & Development

Conference Call Participants

John Cavanagh - Goldman Sachs Group, Inc., Research Division
Ajay Bakshani - BMO Capital Markets Equity Research
Timothy Rezvan - KeyBanc Capital Markets Inc., Research Division
Paul Diamond - Citigroup Inc., Research Division
Michael Scialla - Stephens Inc., Research Division
Michael Furrow - Pickering Energy Partners LP
Nathaniel Pendleton - Texas Capital Securities, Research Division
Subhasish Chandra - The Benchmark Company, LLC, Research Division
Noel Parks - Tuohy Brothers Investment Research, Inc.

Presentation

Operator

Good morning, ladies and gentlemen and welcome to the Talos Energy Second Quarter 2026 Earnings Conference call. [Operator Instructions] This call is being recorded on Wednesday, August 5, 2026. I would now like to turn the conference over to Kyle Sahni, Manager, Investor Relations. Please go ahead.

Kyle Sahni

Thank you, Operator. Good morning, everyone, and welcome to our second quarter 2026 earnings conference call. Joining me today to discuss our results are Paul Goodfellow, President and Chief Executive Officer; Zach Dailey, Executive Vice President and Chief Financial Officer; and Bill Langin, Executive Vice President, Exploration and Development. Please refer to our second quarter 2026 earnings presentation that is available on our website under the Investor Relations section for a more detailed look at our results and operations.

Before we start, I would like to remind you that our remarks will include forward-looking statements subject to various cautionary statements identified in our presentation and earnings release. Actual results may differ materially from those contemplated by the company. Factors that could cause these results to differ materially are set forth in yesterday's press release and our Form 10-K for the period ending December

, /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced its operational and financial results for the three months ended June 30, 2026. Talos also provided third quarter 2026 production guidance and revised full-year 2026 guidance.

Second Quarter Operational and Financial Highlights

Produced 68.6 thousand barrels of oil per day ("MBo/d") and 93.7 thousand barrels of oil equivalent per day ("MBoe/d"); oil and total equivalent production exceeded guidance ranges driven by strong uptime and well performance. Reported net cash provided by operating activities of $300.6 million. Generated Adjusted Free Cash Flow(1)(2) of $231.6 million. Recorded Net Income(2) of $149.7 million or $0.88 Net Income(2) per diluted share; Adjusted Net Income(1)(2) of $97.8 million or $0.57 Adjusted Net Income per diluted share(1)(2). Generated Adjusted EBITDA(1)(2) of $402.4 million. Invested $112.5 million of capital expenditures, excluding plugging and abandonment and settled decommissioning obligations. Strengthened balance sheet with $577.6 million of cash, an undrawn credit facility, a Net Debt to Last Twelve Months ("LTM") Adjusted EBITDA(1)(2) of 0.5x, as of June 30, 2026. Completed the Genovesa workover and returned the well to production late in the second quarter. Finished drilling operations at Monument #3 and encountered approximately 250 feet of net pay, in-line with pre-drill expectations. Commenced the Daenerys appraisal well program; results from the first appraisal well expected by year-end 2026. Key Strategic Highlights

Increased midpoint of full-year 2026 production guidance to 66 MBo/d and 89 MBoe/d; excluding the announced Gulf of America bolt-on acquisition and after adjusting for the closed non-core shelf divestment. Achieved greater than 65% of the Optimal Performance Plan 2026 target; on track to fully achieve by year-end 2026. Announced acquisition of Gulf of America deepwater oil assets from Shell; BP elected not to exercise its preferential right, with the transaction expected to close in the third quarter of 2026. Announced strategic development farm-in transaction with Repsol in offshore Mexico Block 29. Signed agreements to acquire an 80% operated interest in an offshore Honduras block spanning more than 4 million gross acres through a seismic commitment, providing access to a large-scale exploration position within a working petroleum system. Closed non-core shelf divestment of non-operated gas assets on July 15th; eliminates approximately $54 million of ARO and decommissioning obligations. Enhanced financial flexibility through issuance of $800 million of 8.000% notes due 2034; proceeds used to fully redeem $625 million of 9.000% notes due 2029 and fund a portion of the previously announced Gulf of America bolt-on acquisition. Upsized credit facility to $850 million from $700 million, effective upon closing of the Gulf of America bolt-on acquisition. Executed a rig contract for the West Vela drillship commencing in mid-2027; primary term of one year with extension options. "The second quarter marked another meaningful step forward in the execution of our strategy and reinforces our confidence in the long-term value creation opportunities ahead," said Paul Goodfellow, President and Chief Executive Officer of Talos. "We advanced all three pillars of our strategic framework as we continue to build a long-lived, scaled portfolio by expanding our deepwater scale, enhancing our development inventory through greenfield opportunities, and adding large-scale exploration potential at low entry cost. At the same time, our teams continued delivering on the Optimal Performance Plan, achieving more than 65% of the 2026 target in the first half of the year and demonstrating our relentless focus on operational excellence, cost discipline and value creation.

These strategic achievements were complemented by strong execution across our base business. We exceeded the high end of our production guidance ranges, increased our full-year production outlook and generated record Free Cash Flow. We also commenced the Daenerys appraisal program, which has the potential to further enhance the longevity of our deepwater portfolio.

Taken together, these accomplishments demonstrate our ability to successfully execute on both fronts – advancing our Three Strategic Pillars while continuing to deliver exceptional operational and financial results from our base business. With strong momentum across the organization, we remain focused on building the foundation to be a leading pure-play offshore E&P and look forward to closing the previously announced Gulf of America bolt-on acquisition later in the third quarter."

Footnotes:

(1)

Please see "Supplemental Non-GAAP Information" for details and reconciliations of GAAP to non-GAAP financial measures.

(2)

Attributable to Talos Energy Inc.

RECENT DEVELOPMENTS AND OPERATIONS UPDATE

Operations Update:

Production Update: During the second quarter, oil and total equivalent production exceeded second quarter guidance ranges, primarily driven by production optimization initiatives, strong base asset performance, high facility uptime, and continued outperformance from the new Cardona well. Additionally, the Company successfully completed the Genovesa workover and returned the well to production late in the quarter, with performance in line with expectations. Lease operating expense totaled $18.25 per Boe, including approximately $1.75 per Boe associated with one-time well intervention work performed during the quarter.

Monument: The first Monument development well was successfully drilled to its total measured depth of 32,250 feet and encountered approximately 250 feet of net pay, confirming pre-drill expectations. Drilling is set to commence on the second development well followed by completion operations on both wells. First production is expected by year-end 2026 and to be between 20–30 MBoe/d gross. Monument is a large Wilcox oil discovery in Walker Ridge blocks 271, 272, 315, and 316. Monument is being developed as a subsea tie-back to the Shenandoah production facility in Walker Ridge with committed firm capacity of 20 MBbl/d. There is a prospective drilling location that could extend the resource beyond the base development case. Beacon Offshore Energy LLC as operator, holds a 41.7% W.I., Talos holds 29.7% W.I. and Navitas Petroleum LP holds a 28.6% W.I.

Non-Core Shelf Divestment: On July 15, 2026, the Company closed the sale of non-operated, gas Shelf and Gulf Coast properties through the divestiture of a legal subsidiary to a counterparty. The divestment eliminates approximately $54 million of ARO liabilities and decommissioning obligations. Production for the second quarter 2026 was approximately 700 Bo/d / 3.5 MBoe/d, ~20% oil.

Exploration and Appraisal Update:

Daenerys: The Daenerys appraisal well was spud on July 1, 2026, and operations are progressing according to plan. Results are expected by year-end 2026.

Offshore Honduras: Talos executed definitive agreements to acquire an 80% operated working interest in an offshore Honduras block spanning more than 4 million gross acres, with CaribX retaining the remaining 20% working interest. Talos has closed on a 45% working interest and assumed operatorship. The acquisition of the remaining 35% working interest is subject to approval by Honduras's Secretaría de Energía (SEN), which is expected within approximately 90 days.

The acreage provides exposure to both shallow and deepwater exploration opportunities, including untested deepwater Miocene prospects within a working petroleum system. The transaction is structured as a seismic carry and minimal sunk-cost reimbursement, providing access to large-scale exploration potential at a low entry cost. Talos has the option to participate in an exploration well, subject to the results of the seismic program. An initial 3D seismic campaign is planned for the second half of 2026.

Share Repurchase Program:

During the second quarter of 2026, Talos did not repurchase any shares due to the Company's corporate blackout period associated with the previously announced Gulf of America acquisition. Since announcing its current return of capital framework in the second quarter 2025, Talos has returned approximately $135 million to shareholders through share repurchases resulting in a reduction to outstanding share count by approximately 7%.

The Company's Board of Directors recently authorized an increase in total share repurchase authorization back up to $200 million. The remaining share repurchase authorization as of August 1, 2026, is $200 million. Under Talos's capital allocation framework, management expects to allocate up to 50% of annual free cash flow to share repurchases. The timing and amount of any repurchases under the Company's share repurchase program will depend on market conditions, share price, legal requirements, and other factors, and may be made from time to time in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

Credit Facility Update:

In connection with the previously announced Gulf of America bolt-on acquisition, Talos has secured $150 million of incremental commitments from its existing lenders, increasing the Company's borrowing base from the current $700 million to $850 million, subject to and effective upon closing the acquisition. 

SECOND QUARTER 2026 RESULTS

Key Financial Highlights:

($ thousands, except per share and per Boe amounts)

Three Months Ended
June 30, 2026

Total revenues

$

664,813

Net Income (Loss) attributable to Talos Energy Inc.

$

149,667

Net Income (Loss) attributable to Talos Energy Inc. per diluted share

$

0.88

Adjusted Net Income (Loss)(1) attributable to Talos Energy Inc.

$

97,777

Adjusted Net Income (Loss) attributable to Talos Energy Inc. per diluted share(1)

$

0.57

Adjusted EBITDA attributable to Talos Energy Inc.(1)

$

402,180

Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges(1)

$

476,326

Capital Expenditures

$

112,518

_________________________________

(1)

Please see "Supplemental Non-GAAP Information" for details and reconciliations of GAAP to non-GAAP financial measures.

Production

Production for the second quarter 2026 was 93.7 MBoe/d (73% oil, 81% liquids).

Three Months Ended
June 30, 2026

Oil (MBbl/d)

68.6

Natural Gas (MMcf/d)

107.7

NGL (MBbl/d)

7.2

Total average net daily (MBoe/d)

93.7

Three Months Ended June 30, 2026

Production

% Oil

% Liquids

% Operated

Deepwater

85.6

75

%

83

%

82

%

Shelf and Gulf Coast

8.1

49

%

59

%

74

%

Total average net daily (MBoe/d)

93.7

73

%

81

%

81

%

Three Months Ended
June 30, 2026

Average realized prices (excluding hedges):

Oil ($/Bbl)

$

99.47

Natural Gas ($/Mcf)

$

3.17

NGL ($/Bbl)

$

19.85

Average realized price ($/Boe)

$

77.95

Average NYMEX prices:

WTI ($/Bbl)

$

92.79

Henry Hub ($/MMBtu)

$

2.87

Lease Operating & General and Administrative Expenses

Total lease operating expenses for the second quarter 2026, including workover, maintenance and insurance costs, were $155.7 million, or $18.25 per Boe.

Adjusted General and Administrative expenses for the second quarter 2026, adjusted to exclude one-time transaction-related costs, and non-cash equity-based compensation, were $36.9 million, or $4.32 per Boe.

($ thousands, except per Boe amounts)

Three Months Ended
June 30, 2026

Lease Operating Expenses

$

155,683

Lease Operating Expenses per Boe

$

18.25

Adjusted General & Administrative Expenses(1)

$

36,873

Adjusted General & Administrative Expenses per Boe(1)

$

4.32

_________________________________

(1)

Please see "Supplemental Non-GAAP Information" for details and reconciliations of GAAP to non-GAAP financial measures.

Capital Expenditures

Capital expenditures for the second quarter 2026, excluding plugging and abandonment and settled decommissioning obligations, totaled $112.5 million.

($ thousands)

Three Months Ended
June 30, 2026

U.S. drilling & completions

$

85,294

Asset management(1)

13,152

Seismic and G&G, land, capitalized G&A and other

14,072

Total Capital Expenditures

$

112,518

_________________________________

(1)

Asset management consists of capital expenditures for development-related activities primarily associated with recompletions and improvements to our facilities and infrastructure.

Plugging & Abandonment Expenditures

Capital expenditures for plugging and abandonment and settled decommissioning obligations for the second quarter 2026 totaled $18.9 million.

Three Months Ended
June 30, 2026

Plugging & Abandonment and Decommissioning Obligations Settled(1)

$

18,923

_________________________________

(1)

Settlement of decommissioning obligations as a result of working interest partners or counterparties of divestiture transactions that were unable to perform the required abandonment obligations due to bankruptcy or insolvency.

Liquidity and Leverage

At June 30, 2026, Talos had a borrowing base of $700.0 million under its Bank Credit Facility with approximately $95.7 million in outstanding letters of credit. Letters of credit that are outstanding reduce the available revolving credit commitments. Cash was $577.6 million, providing Talos approximately $1,181.9 million of liquidity at quarter end. On June 30, 2026, Talos had $1,250.0 million in total debt. Net Debt(1) was $672.4 million, Net Debt to Last Twelve Months ("LTM") Adjusted EBITDA attributable to Talos Energy Inc.(1) was 0.5x.

Footnotes:

(1)

Please see "Supplemental Non-GAAP Information" for details and reconciliations of GAAP to non-GAAP financial measures.

OPERATIONAL & FINANCIAL GUIDANCE UPDATES

For the third quarter 2026, Talos expects production to be in the range from 61 to 65 MBo/d and 81 to 85 MBoe/d.

Talos has increased its full-year 2026 production guidance and now expects production to range from 64 to 68 MBo/d and 87 to 91 MBoe/d. This guidance excludes the previously announced Gulf of America bolt-on acquisition and reflects the impact of the closed non-core shelf divestment. The Company expects to update its 2026 operating and financial guidance following the close of the acquisition.

The following table summarizes Talos's revised full-year 2026 operational and production guidance.

Original

Revised

FY 2026

FY 2026

($ Millions, unless highlighted):

Low

High

Low

High

Production

Avg Daily Production (MBoe/d)

85.0

90.0

87.0

91.0

Avg Daily Production (MBo/d)

62.0

66.0

64.0

68.0

Capex

Capital Expenditures(1)

$

500

$

550

$

500

$

550

P&A Expenditures

P&A, Decommissioning

$

100

$

130

$

100

$

130

Cash Expenses

Cash Operating Expenses and Workovers(2)(3)(4)*

$

560

$

590

$

560

$

590

G&A(3)(5)*

$

130

$

140

$

135

$

145

Interest Expense(6)

$

155

$

165

$

155

$

165

_________________________________

(1)

Excludes acquisitions.

(2)

Includes Lease Operating Expenses and Maintenance.  

(3)

Includes insurance costs.

(4)

Includes reimbursements under production handling agreements.

(5)

Excludes non-cash equity-based compensation and transaction and other expenses.

(6)

Includes cash interest expense on debt and finance lease, surety charges and amortization of deferred financing costs and original issue discounts.

*Due to the forward-looking nature a reconciliation of Cash Operating Expenses and Workovers and G&A to the most directly comparable GAAP measure could not be reconciled without unreasonable efforts.

HEDGES

The following table reflects contracted volumes and weighted average prices the Company will receive under the terms of its derivative contracts as of July 31, 2026.

Instrument Type

Avg. Daily
Volume

W.A. Swap

W.A. Floor

W.A. Ceiling

Crude – WTI

(Bbls)

(Per Bbl)

(Per Bbl)

(Per Bbl)

July - September 2026

Fixed Swaps

3,685

$

67.77

---

---

Collar

21,000

---

$

61.67

$

74.80

October - December 2026

Fixed Swaps

4,000

$

62.50

---

---

Collar

22,978

---

$

61.52

$

73.81

January - March 2027

Fixed Swaps

7,000

$

73.27

---

---

Collar

22,000

---

$

60.91

$

75.58

April - June 2027

Fixed Swaps

7,000

$

73.27

---

---

Collar

14,000

---

$

65.36

$

77.93

Natural Gas – HH NYMEX

(MMBtu)

(Per MMBtu)

(Per MMBtu)

(Per MMBtu)

July - September 2026

Fixed Swaps

26,739

$

3.48

---

---

Collar

6,631

---

$

2.75

$

3.71

October - December 2026

Fixed Swaps

29,946

$

3.78

---

---

Collar

10,000

---

$

2.75

$

3.71

January - March 2027

Collar

45,000

---

$

3.39

$

4.70

April - June 2027

Collar

10,000

---

$

3.00

$

3.67

CONFERENCE CALL AND WEBCAST INFORMATION
Talos will host a conference call, broadcast live over the internet, on Wednesday, August 5, 2026, at 10:00 AM Eastern Time (9:00 AM Central Time). Listeners can access the conference call through a webcast link on the Company's website at: Talos Second Quarter 2026 Webcast. Alternatively, the conference call can be accessed by dialing (800) 836-8184 (North American toll-free) or (646) 357-8785 (international). Please dial in approximately 15 minutes before the teleconference is scheduled to begin and ask to be joined into the Talos Energy call. A replay of the call will be available one hour after the conclusion of the conference until August 12, 2026 and can be accessed by dialing (888) 660-6345 and using access code 99686#. For more information, please refer to the Second Quarter 2026 Earnings Presentation available under Presentations and Webcasts on the Investor Relations section of Talos's website.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely maximizing long-term value through its Exploration & Production business in the United States Gulf of America and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while maintaining a focus on safe and efficient operations, environmental responsibility, and community impact. For more information, visit www.talosenergy.com.

INVESTOR RELATIONS CONTACT

Kyle Sahni
[email protected] 

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

The information in this communication 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 communication 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 communication, the words "will," "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. Forward-looking statements are based on management's 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 our current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements may include statements about: business strategy; estimated, potential or recoverable resources, reserves and production; drilling prospects, inventories, projects and programs, including operating cost efficiencies, and non-operated assets; our ability to replace the reserves that we produce through drilling, acquisitions, recompletions or enhanced recovery; financial strategy, borrowing base under our bank credit facility, availability of financing sources, including project financing options, liquidity position and capital required for our development program, acquisitions and other capital expenditures; anticipated levels of stock repurchases and leverage ratio; realized oil and natural gas prices; changes in tariffs, trade barriers, price and exchange controls and other regulatory requirements and the impact of such policies on us, our customers and suppliers, and the global economic environment; our ability to obtain financial assurance instruments, including surety bonds, on commercially reasonable terms; expected collateral requirements under existing or future acquisitions, surety agreements, hedging transactions, letters of credit and other secured debt; volatility in the political, legal and regulatory environments where we currently or in the future may operate; risks related to future mergers and acquisitions, including the risk we may not close when expected or at all, and may fail to realize the expected benefits of any such transaction; timing, restrictions and amount of future production of oil, natural gas and NGLs, including changes in supply caused by OPEC or the war in Iran, and any related impact on global oil prices, available resources, and domestic oil production; our hedging strategy and results; future drilling plans; availability of pipeline connections and other infrastructure on economic terms; competition, government regulations, including financial assurance requirements, and legislative 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; our integration of acquisitions and the anticipated post-acquisition performance of the Company; our ability to identify and acquire future leases, reserves, exploration projects and or business acquisitions on desired terms; costs of exploring, developing, acquiring or abandoning properties; general economic conditions, including the impact of continued inflation and associated changes in monetary policy; political and economic conditions and events in foreign oil, natural gas and NGL producing countries and acts of terrorism or sabotage; credit markets and availability of financial instruments on reasonable terms; 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; our strategy with respect to our minority investment in the Zama asset; uncertainty regarding our future operating results and our future revenues and expenses; anticipated capital efficiency, margin enhancement and organizational improvements and additional cash flow;  impact of new accounting pronouncements on earnings in future periods; and plans, objectives, expectations and intentions contained in this communication that are not historical. Additionally, forward-looking statements may include statements regarding pending acquisitions which are based on management's current expectations and assumptions such as: future exploration and development opportunities; financing options; estimates of recoverable resources and resource potential; timing of final investment decisions; anticipated costs and expected production commencement and volumes; the timing, closing and benefits of the pending acquisitions; the anticipated impact on our financial position, growth opportunities and competitive position; and projected prospects, plans and objectives related to these assets. All of the 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; global demand for oil and natural gas; the ability or willingness of OPEC and other state-controlled oil companies to set and maintain oil production levels and the impact of any such actions; foreign wars and conflicts, including the lack of a resolution to the war in Ukraine and ongoing hostilities in Israel and the Middle East, such as the war in Iran and their impact on commodity markets; the impact of any pandemic, and governmental measures related thereto; lack of necessary infrastructure, transportation and storage capacity as a result of oversupply, government and regulations; political risks, including a global trade war or the impact of a prolonged federal government shutdown or lapse in federal appropriations that could disrupt our operations and future drilling plans and opportunities; lack of availability of drilling and production equipment and services or skilled personnel; adverse weather events, including tropical storms, hurricanes, winter storms and loop currents; cybersecurity threats and incidents; elevated inflation and the impact of central bank policy in response thereto; 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, including the impact of financial assurance requirements; changes in U.S. trade and labor policies, including the imposition of increased tariffs and resulting consequences; the uncertainty inherent in estimating reserves and in projecting future reservoir performance, recoverable resources, resource potential and rates of production; cash flow and access to capital; the timing of development expenditures; risks to our industry and business operations associated with legal challenges by non-governmental organizations and other groups; market factors impacting the availability of surety bonds; and the other risks discussed in "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025 and our subsequent Quarterly Reports on Form 10-Qs, each as filed with the SEC. In addition, risks related to the pending acquisitions include, but are not limited to, our ability to obtain regulatory approval and to consummate the acquisitions; our ability to realize the anticipated benefits of our acquisitions; availability of future project financing; whether the parties elect to proceed with a FID and our ability to reach FID and/or production on the timeline currently contemplated or at all; risks associated with reliance on third-party operators; or risks relating to operations in foreign jurisdictions due to changes in applicable laws, regulations and policies affecting our projects.

Should any risks or uncertainties 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 communication 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 communication.

PRODUCTION ESTIMATES 

Estimates of our future production volumes are based on assumptions of capital expenditure levels and the assumption that market demand and prices for oil and gas will continue at levels that allow for economic production of these products. The production, transportation, marketing and storage of oil and gas are subject to disruption due to infrastructure constraints, transportation, processing and storage availability, mechanical failure, human error, adverse weather conditions such as hurricanes, global political and macroeconomic events and numerous other factors. Our estimates are based on certain other assumptions, such as well performance and estimated resource potential and ultimate recovery, which may vary significantly from those assumed. Therefore, we can give no assurance that our future production volumes will be as estimated.

RESERVE INFORMATION

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 used by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions upward or downward 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.

We may use the terms "estimated resource potential," "gross reserves," "estimated resource," "total recoverable resource potential" and "estimated ultimate recovery" or "EUR" which are not measures of "reserves" prepared in accordance with SEC guidelines or permitted to be included in SEC filings. These types of estimates do not represent, and are not intended to represent, any category of reserves based on SEC definitions, are inherently by their nature more speculative than estimates of proved or other reserves prepared in accordance with SEC guidelines and do not constitute "reserves" within the meaning of the SEC's rules. These types of resource estimates are subject to greater uncertainties, and accordingly, are subject to a substantially greater risk of actually being realized. Investors are urged to consider closely the disclosures and risk factors in the reports we file with the SEC.

USE OF NON-GAAP FINANCIAL MEASURES

This release may include the use of various measures that have not been calculated in accordance with U.S. generally acceptable accounting principles (GAAP) such as, but not limited to, EBITDA, Adjusted EBITDA, Adjusted EBITDA attributable to Talos Energy Inc., LTM Adjusted EBITDA attributable to Talos Energy Inc., Net Debt, Net Debt to LTM Adjusted EBITDA attributable to Talos Energy Inc., Adjusted Free Cash Flow attributable to Talos Energy Inc. and Leverage, Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges, Adjusted Net Income (Loss) attributable to Talos Energy Inc. per diluted share, Adjusted Earnings Per Share, Cash Operating Expenses and Workovers, Adjusted General & Administrative Expense and PV-10. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Reconciliations for non-GAAP measures to GAAP measures are included at the end of this release.

USE OF PROJECTIONS

This release may contain projections, such as, but not limited to, production volumes: cash expenses, including operating expenses, G&A and interest expense; capital expenditures; P&A and decommissioning expenditures; and collateral obligations. Our independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this release. The assumptions and estimates underlying the projected information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projected information. Even if our assumptions and estimates are correct, projections are inherently uncertain due to a number of factors outside our control. Accordingly, there can be no assurance that the projected results are indicative of our future performance or that actual results will not differ materially from those presented in the projected information.

Talos Energy Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)

June 30, 2026

December 31, 2025

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

577,587

$

362,809

Accounts receivable, net

330,349

323,058

Assets from price risk management activities

28,834

54,420

Prepaid assets

141,832

83,080

Other current assets

17,118

17,939

Total current assets

1,095,720

841,306

Property and equipment:

Proved properties

10,912,984

10,621,012

Unproved properties, not subject to amortization

447,034

480,555

Other property and equipment

22,878

22,643

Total property and equipment

11,382,896

11,124,210

Accumulated depreciation, depletion and amortization

(7,291,346)

(6,686,575)

Total property and equipment, net

4,091,550

4,437,635

Other long-term assets:

Restricted cash

76,997

76,181

Equity method investments

44,661

112,382

Other well equipment

61,517

49,307

Notes receivable, net

20,653

19,636

Operating lease assets

8,345

9,214

Other assets

33,836

6,396

Total assets

$

5,433,279

$

5,552,057

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

87,837

$

92,979

Accrued liabilities

225,214

290,223

Accrued royalties

99,237

59,768

Current portion of asset retirement obligations

153,225

112,489

Liabilities from price risk management activities

27,504

6,708

Accrued interest payable

49,181

48,972

Current portion of operating lease liabilities

3,872

3,657

Other current liabilities

33,427

29,925

Total current liabilities

679,497

644,721

Long-term liabilities:

Long-term debt

1,228,764

1,226,189

Asset retirement obligations

1,240,920

1,219,639

Operating lease liabilities

10,051

11,956

Other long-term liabilities

240,891

281,429

Total liabilities

3,400,123

3,383,934

Commitments and contingencies

Equity:

Talos Energy Inc. stockholders' Equity:

Preferred stock; $0.01 par value; 30,000,000 shares authorized and zero shares issued or outstanding as of June 30, 2026 and December 31, 2025, respectively

—

—

Common stock; $0.01 par value; 270,000,000 shares authorized; 189,641,450 and 188,530,052 shares issued as of June 30, 2026 and December 31, 2025, respectively

1,896

1,885

Additional paid-in capital

3,305,983

3,296,643

Accumulated deficit

(1,024,898)

(918,400)

Treasury stock, at cost; 22,676,655 and 20,015,369 shares as of June 30, 2026 and December 31, 2025, respectively

(250,347)

(212,144)

Total Talos Energy Inc. stockholders' equity

2,032,634

2,167,984

Noncontrolling interest

522

139

Total equity

2,033,156

2,168,123

Total liabilities and equity

$

5,433,279

$

5,552,057

Talos Energy Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenues:

Oil

$

620,768

$

373,195

$

1,028,766

$

813,918

Natural gas

31,040

39,415

83,943

92,150

NGL

13,005

12,111

24,414

31,712

Total revenues

664,813

424,721

1,137,123

937,780

Operating expenses:

Lease operating expense

155,683

136,971

284,718

264,776

Production taxes

103

130

146

244

Depreciation, depletion and amortization

229,369

269,706

459,753

550,422

Impairment of oil and natural gas properties

—

223,881

145,018

223,881

Accretion expense

35,908

32,046

70,847

62,940

General and administrative expense

44,626

39,430

85,596

74,045

Other operating (income) expense

902

(3,851)

12,249

(8,387)

Total operating expenses

466,591

698,313

1,058,327

1,167,921

Operating income (expense)

198,222

(273,592)

78,796

(230,141)

Interest expense

(39,162)

(40,811)

(78,340)

(81,738)

Price risk management activities income (expense)

30,549

86,855

(142,998)

71,002

Equity method investment income (expense)

(113)

(186)

6,557

(676)

Other income (expense)

5,230

5,371

9,415

9,231

Net income (loss) before income taxes

194,726

(222,363)

(126,570)

(232,322)

Income tax benefit (expense)

(44,837)

36,426

20,455

36,517

Net income (loss)

$

149,889

$

(185,937)

$

(106,115)

$

(195,805)

Net income (loss) attributable to noncontrolling interest

222

—

383

—

Net income (loss) attributable to Talos Energy Inc.

$

149,667

$

(185,937)

$

(106,498)

$

(195,805)

Net income (loss) per share attributable to common stockholders:

Basic

$

0.90

$

(1.05)

$

(0.64)

$

(1.10)

Diluted

$

0.88

$

(1.05)

$

(0.64)

$

(1.10)

Weighted average common shares outstanding:

Basic

166,980

177,404

167,677

178,791

Diluted

170,085

177,404

167,677

178,791

Talos Energy Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income (loss)

$

(106,115)

$

(195,805)

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

Depreciation, depletion, amortization and accretion expense

530,600

613,362

Impairment of oil and natural gas properties

145,018

223,881

Amortization of deferred financing costs and original issue discount

3,862

3,695

Equity-based compensation expense

11,745

8,544

Price risk management activities (income) expense

142,998

(71,002)

Net cash received (paid) on settled derivative instruments

(96,616)

38,482

Equity method investment (income) expense

(6,557)

676

Settlement of asset retirement obligations

(40,571)

(38,249)

Loss (gain) on sale of assets

1,564

(16)

Changes in operating assets and liabilities:

Accounts receivable

(11,096)

63,863

Other current assets

(57,931)

24,361

Accounts payable

333

(2,451)

Other current liabilities

3,631

(9,244)

Other non-current assets and liabilities, net

(46,228)

(40,219)

Net cash provided by (used in) operating activities

474,637

619,878

Cash flows from investing activities:

Exploration, development and other capital expenditures

(254,037)

(276,149)

Payments for acquisitions, net of cash acquired

(3,125)

(14,845)

Proceeds from (cash paid for) sale of property and equipment, net

15,027

687

Contributions to equity method investees

—

(1,996)

Proceeds from sale of equity method investments

49,665

—

Net cash provided by (used in) investing activities

(192,470)

(292,303)

Cash flows from financing activities:

Deferred financing costs

(7,349)

—

Other deferred payments

(4,548)

(10,172)

Payments of finance lease

(10,528)

(9,616)

Purchase of treasury stock

(38,203)

(54,736)

Employee stock awards tax withholdings

(5,945)

(2,399)

Net cash provided by (used in) financing activities

(66,573)

(76,923)

Net increase (decrease) in cash, cash equivalents and restricted cash

215,594

250,652

Cash, cash equivalents and restricted cash:

Balance, beginning of period

438,990

214,432

Balance, end of period

$

654,584

$

465,084

Supplemental non-cash transactions:

Capital expenditures included in accounts payable and accrued liabilities

$

59,974

$

48,926

Supplemental cash flow information:

Interest paid, net of amounts capitalized

$

57,618

$

59,769

SUPPLEMENTAL NON-GAAP INFORMATION

Certain financial information included in our financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP measures which may be reported by other companies.

Reconciliation of General and Administrative Expenses to Adjusted General and Administrative Expenses

We believe the presentation of Adjusted General and Administrative Expenses provides management and investors with (i) important supplemental indicators of the operational performance of our business, (ii) additional criteria for evaluating our performance relative to our peers and (iii) supplemental information to investors about certain material non-cash and/or other items that may not continue at the same level in the future. Adjusted General & Administrative Expenses has limitations as an analytical tool and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP or as alternatives to net income (loss), operating income (loss) or any other measure of financial performance presented in accordance with GAAP. We define these as the following:

General and Administrative Expenses. General and Administrative Expenses generally consist of costs incurred for overhead, including payroll and benefits for our corporate staff, costs of maintaining our headquarters, costs of managing our production operations, bad debt expense, equity-based compensation expense, audit and other fees for professional services and legal compliance.

($ thousands)

Three Months Ended
June 30, 2026

Reconciliation of General & Administrative Expenses to Adjusted General & Administrative Expenses:

Total General and administrative expense

$

44,626

Transaction expenses

(1,344)

Non-cash equity-based compensation expense

(6,409)

Adjusted General & Administrative Expenses

$

36,873

Reconciliation of Net Income (Loss) attributable to Talos Energy Inc. to EBITDA, Adjusted EBITDA and Adjusted EBITDA attributable to Talos Energy Inc.

"EBITDA," "Adjusted EBITDA" and "Adjusted EBITDA attributable to Talos Energy Inc." provide management and investors with (i) additional information to evaluate, with certain adjustments, items required or permitted in calculating covenant compliance under our debt agreements, (ii) important supplemental indicators of the operational performance of our business, (iii) additional criteria for evaluating our performance relative to our peers and (iv) supplemental information to investors about certain material non-cash and/or other items that may not continue at the same level in the future. EBITDA, Adjusted EBITDA and Adjusted EBITDA attributable to Talos Energy Inc. have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP or as alternatives to net income (loss), net income (loss) attributable to Talos Energy Inc., operating income (loss) or any other measure of financial performance presented in accordance with GAAP. We define these as the following:

EBITDA. Net income (loss) plus interest expense; income tax expense (benefit); depreciation, depletion and amortization; and accretion expense.

Adjusted EBITDA. EBITDA plus non-cash impairment of oil and natural gas properties, transaction and other (income) expenses, decommissioning obligations, the net change in fair value of derivatives (mark-to-market effect, net of cash settlements and premiums related to these derivatives), (gain) loss on debt extinguishment, non-cash write-down of other well equipment and non-cash equity-based compensation expense.

Adjusted EBITDA attributable to Talos Energy Inc. Adjusted EBITDA, less adjustments for noncontrolling interest.

Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges. We have historically provided as a supplement to—rather than in lieu of—Adjusted EBITDA including hedges, provides useful information regarding our results of operations and profitability by illustrating the operating results of our oil and natural gas properties without the benefit or detriment, as applicable, of our financial oil and natural gas hedges. By excluding our oil and natural gas hedges, we are able to convey actual operating results using realized market prices during the period, thereby providing analysts and investors with additional information they can use to evaluate the impacts of our hedging strategies over time.

The following tables present a reconciliation of the GAAP financial measure of Net Income (loss) attributable to Talos Energy Inc. to EBITDA, Adjusted EBITDA, Adjusted EBITDA attributable to Talos Energy Inc., Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges for each of the periods indicated (in thousands):

Three Months Ended

($ thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Reconciliation of Net Income (Loss) attributable to Talos Energy Inc. to Adjusted EBITDA attributable to Talos Energy Inc.:

Net Income (loss) attributable to Talos Energy Inc.

$

149,667

$

(256,165)

$

(202,580)

$

(95,905)

Net income (loss) attributable to noncontrolling interest

222

161

(1,031)

(3)

Net income (loss)

149,889

(256,004)

(203,611)

(95,908)

Interest expense

39,162

39,178

40,796

40,847

Income tax expense (benefit)

44,837

(65,292)

(48,448)

(24,204)

Depreciation, depletion and amortization

229,369

230,384

243,222

262,637

Accretion expense

35,908

34,939

31,592

30,764

EBITDA

499,165

(16,795)

63,551

214,136

Impairment of oil and natural gas properties

—

145,018

170,392

60,209

Transaction and other (income) expenses(1)

1,344

8,605

1,100

9,253

Decommissioning obligations(2)

215

162

3,010

316

Derivative fair value (gain) loss(3)

(30,549)

173,547

(30,227)

(4,226)

Net cash received (paid) on settled derivative instruments(3)

(74,146)

(22,470)

26,384

16,605

Non-cash equity-based compensation expense

6,409

5,336

4,919

4,955

Adjusted EBITDA

402,438

293,403

239,129

301,248

Less: adjustment for noncontrolling interest

258

196

(1,001)

8

Adjusted EBITDA attributable to Talos Energy Inc.

402,180

293,207

240,130

301,240

Add: Net cash (received) paid on settled derivative instruments(3)

74,146

22,470

(26,384)

(16,605)

Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges

$

476,326

$

315,677

$

213,746

$

284,635

Production:

Boe(4)

8,529

7,994

8,203

8,757

Adjusted EBITDA attributable to Talos Energy Inc. and Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges margin:

Adjusted EBITDA attributable to Talos Energy Inc. per Boe(4)

$

47.15

$

36.68

$

29.27

$

34.40

Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges per Boe(1)(4)

$

55.85

$

39.49

$

26.06

$

32.50

_________________________________

(1)

Other income (expense) includes miscellaneous income and expenses that we do not view as a meaningful indicator of our operating performance. For the three months ended March 31, 2026, it includes a $14.3 million litigation settlement accrued as an expense offset by a $6.8 million gain on the Incremental Mexico Equity Sale. For the three months ended September 30, 2025, it includes the derecognition of $8.9 million related to a deferred payment that was deemed uncollectible.

(2)

Estimated decommissioning obligations were a result of working interest partners or counterparties of divestiture transactions that were unable to perform the required abandonment obligations due to bankruptcy or insolvency and are included in "Other operating (income) expense" on our consolidated statements of operations.

(3)

The adjustments for the derivative fair value (gain) loss and net cash receipts (payments) on settled derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments, which are recognized at the end of each accounting period because we do not designate commodity derivative instruments as accounting hedges. This results in reflecting commodity derivative gains and losses within Adjusted EBITDA attributable to Talos Energy Inc. on an unrealized basis during the period the derivatives settled.

(4)

One Boe is equal to six Mcf of natural gas or one Bbl of oil or NGLs based on an approximate energy equivalency. This is an energy content correlation and does not reflect a value or price relationship between the commodities.

Reconciliation of Adjusted EBITDA attributable to Talos Energy Inc. to Adjusted Free Cash Flow attributable to Talos Energy Inc. and Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow attributable to Talos Energy Inc.

"Adjusted Free Cash Flow attributable to Talos Energy Inc." before changes in working capital provides management and investors with (i) important supplemental indicators of the operational performance of our business, (ii) additional criteria for evaluating our performance relative to our peers and (iii) supplemental information to investors about certain material non-cash and/or other items that may not continue at the same level in the future. Adjusted Free Cash Flow attributable to Talos Energy Inc. has limitations as an analytical tool and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP or as alternatives to net income (loss), net income (loss) attributable to Talos Energy Inc., operating income (loss) or any other measure of financial performance presented in accordance with GAAP. We define these as the following:

Capital Expenditures and Plugging & Abandonment. Actual capital expenditures and plugging & abandonment recognized in the quarter, inclusive of accruals.

Interest Expense. Actual interest expense per the income statement.

Talos did not pay any cash income taxes in the period, therefore cash income taxes have no impact to the reported Adjusted Free Cash Flow attributable to Talos Energy Inc. before changes in working capital number.

($ thousands)

Three Months Ended
June 30, 2026

Reconciliation of Adjusted EBITDA attributable to Talos Energy Inc. to Adjusted Free Cash Flow attributable to Talos Energy Inc. (before changes in working capital):

Adjusted EBITDA attributable to Talos Energy Inc.

$

402,180

Capital expenditures

(112,518)

Plugging & abandonment

(18,702)

Decommissioning obligations settled

(221)

Interest expense

(39,162)

Adjusted Free Cash Flow attributable to Talos Energy Inc. (before changes in working capital)

$

231,577

($ thousands)

Three Months Ended
June 30, 2026

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow attributable to Talos Energy Inc. (before changes in working capital):

Net cash provided by operating activities(1)

$

300,636

(Increase) decrease in operating assets and liabilities

1,121

Capital expenditures(2)

(112,518)

Decommissioning obligations settled

(221)

Transaction and other (income) expenses(3)

1,344

Decommissioning obligations(4)

215

Amortization of deferred financing costs and original issue discount

(1,896)

Income tax benefit

44,837

Adjustment for noncontrolling interest

(258)

Other adjustments

(1,683)

Adjusted Free Cash Flow attributable to Talos Energy Inc. (before changes in working capital)

$

231,577

_________________________________

(1)

Includes settlement of asset retirement obligations.

(2)

Includes accruals and excludes acquisitions.

(3)

Other income (expense) includes other miscellaneous income and expenses that we do not view as a meaningful indicator of our operating performance.

(4)

Estimated decommissioning obligations were a result of working interest partners or counterparties of divestiture transactions that were unable to perform the required abandonment obligations due to bankruptcy or insolvency.

Reconciliation of Net Income (Loss) attributable to Talos Energy Inc. to Adjusted Net Income (Loss) attributable to Talos Energy Inc. and Adjusted Earnings per Share

"Adjusted Net Income (Loss) attributable to Talos Energy Inc." and "Adjusted Earnings per Share" are to provide management and investors with (i) important supplemental indicators of the operational performance of our business, (ii) additional criteria for evaluating our performance relative to our peers and (iii) supplemental information to investors about certain material non-cash and/or other items that may not continue at the same level in the future. Adjusted Net Income (Loss) attributable to Talos Energy Inc. and Adjusted Earnings per Share have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP or as an alternative to net income (loss), net income (loss) attributable to Talos Energy Inc., operating income (loss), earnings per share or any other measure of financial performance presented in accordance with GAAP.

Adjusted Net Income (Loss) attributable to Talos Energy Inc. Net income (loss) attributable to Talos Energy Inc. plus impairment of oil and natural gas properties, transaction related costs, derivative fair value (gain) loss, net cash receipts (payments) on settled derivative instruments, income tax expense (benefit) and non-cash equity-based compensation expense.

Adjusted Earnings per Share. Adjusted Net Income (Loss) attributable to Talos Energy Inc. divided by the number of common shares.

Three Months Ended June 30, 2026

($ thousands, except per share amounts)

Basic per Share

Diluted per Share

Reconciliation of Net Income (Loss) attributable to Talos Energy Inc. to Adjusted Net Income (Loss) attributable to Talos Energy Inc.:

Net Income (loss) attributable to Talos Energy Inc.

$

149,667

$

0.90

$

0.88

Transaction and other (income) expenses(1)

1,344

$

0.01

$

0.01

Decommissioning obligations(2)

215

$

0.00

$

0.00

Derivative fair value (gain) loss(3)

(30,549)

$

(0.18)

$

(0.18)

Net cash received (paid) on settled derivative instruments(3)

(74,146)

$

(0.44)

$

(0.44)

Non-cash income tax benefit

44,837

$

0.27

$

0.26

Non-cash equity-based compensation expense

6,409

$

0.04

$

0.04

Adjusted Net Income (Loss)(4) attributable to Talos Energy Inc.

$

97,777

$

0.59

$

0.57

Weighted average common shares outstanding at June 30, 2026:

Basic

166,980

Diluted

170,085

_________________________________

(1)

Other income (expense) includes other miscellaneous income and expenses that the Company does not view as a meaningful indicator of its operating performance.

(2)

Estimated decommissioning obligations were a result of working interest partners or counterparties of divestiture transactions that were unable to perform the required abandonment obligations due to bankruptcy or insolvency.

(3)

The adjustments for the derivative fair value (gain) loss and net cash receipts (payments) on settled derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments, which are recognized at the end of each accounting period because we do not designate commodity derivative instruments as accounting hedges. This results in reflecting commodity derivative gains and losses within Adjusted Net Income (Loss) attributable to Talos Energy Inc. on an unrealized basis during the period the derivatives settled.

(4)

The per share impacts reflected in this table were calculated independently and may not sum to total adjusted basic and diluted EPS due to rounding.

Reconciliation of Total Debt to Net Debt and Net Debt to LTM Adjusted EBITDA attributable to Talos Energy Inc.

We believe the presentation of Net Debt, LTM Adjusted EBITDA attributable to Talos Energy Inc. and Net Debt to LTM Adjusted EBITDA attributable to Talos Energy Inc. is important to provide management and investors with additional important information to evaluate our business. These measures are widely used by investors and ratings agencies in the valuation, comparison, rating and investment recommendations of companies.

Net Debt. Total Debt principal minus cash and cash equivalents.

Net Debt to LTM Adjusted EBITDA attributable to Talos Energy Inc. Net Debt divided by the LTM Adjusted EBITDA attributable to Talos Energy Inc.

($ thousands)

June 30, 2026

Reconciliation of Net Debt:

9.000% Second-Priority Senior Secured Notes

$

625,000

9.375% Second-Priority Senior Secured Notes

625,000

Bank Credit Facility – matures January 2030

—

Total Debt

1,250,000

Less: Cash and cash equivalents

(577,587)

Net Debt

$

672,413

Calculation of LTM Adjusted EBITDA attributable to Talos Energy Inc.:

Adjusted EBITDA attributable to Talos Energy Inc. for three months period ended September 30, 2025

$

301,240

Adjusted EBITDA attributable to Talos Energy Inc. for three months period ended December 31, 2025

240,130

Adjusted EBITDA attributable to Talos Energy Inc. for three months period ended March 31, 2026

293,207

Adjusted EBITDA attributable to Talos Energy Inc. for three months period ended June 30, 2026

402,180

LTM Adjusted EBITDA attributable to Talos Energy Inc.

$

1,236,757

Reconciliation of Net Debt to LTM Adjusted EBITDA attributable to Talos Energy Inc.:

Net Debt / LTM Adjusted EBITDA attributable to Talos Energy Inc.(1)

0.5x

_________________________________

(1)

Net Debt / LTM Adjusted EBITDA attributable to Talos Energy Inc. figure excludes the payments of Finance Lease. Had the Finance Lease been included, Net Debt / LTM Adjusted EBITDA attributable to Talos Energy Inc. would have been 0.6x.

SOURCE Talos Energy

Wall Street expects a year-over-year increase in earnings on higher revenues when Talos Energy (TALO - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis independent oil and gas company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +214.8%.

Revenues are expected to be $560.48 million, up 32% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 49.21% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Talos Energy?For Talos Energy, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +32.26%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Talos Energy will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Talos Energy would post a loss of$0.09 per share when it actually produced a loss of -$0.07, delivering a surprise of +22.22%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Talos Energy appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsGulfport Energy (GPOR - Free Report) , another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report earnings per share of $3.94 for the quarter ended June 2026. This estimate points to a year-over-year change of -7.1%. Revenues for the quarter are expected to be $298.12 million, down 33.4% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Gulfport has been revised 7.7% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Gulfport will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Jul 27th, 2026

Caxton Associates LLP bought a new stake in Talos Energy Inc. (NYSE:TALO – Free Report) during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 50,361 shares of the company’s stock, valued at approximately $794,000.

Other large investors have also modified their holdings of the company. Larson Financial Group LLC increased its holdings in Talos Energy by 142.9% in the third quarter. Larson Financial Group LLC now owns 3,301 shares of the company’s stock valued at $32,000 after buying an additional 1,942 shares during the last quarter. Smartleaf Asset Management LLC lifted its holdings in Talos Energy by 134.4% during the 2nd quarter. Smartleaf Asset Management LLC now owns 3,703 shares of the company’s stock worth $32,000 after buying an additional 2,123 shares during the last quarter. Quarry LP acquired a new position in shares of Talos Energy in the 3rd quarter worth approximately $36,000. PNC Financial Services Group Inc. increased its holdings in shares of Talos Energy by 22.7% in the 3rd quarter. PNC Financial Services Group Inc. now owns 5,679 shares of the company’s stock valued at $54,000 after acquiring an additional 1,049 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of Talos Energy by 395.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 6,560 shares of the company’s stock valued at $56,000 after acquiring an additional 5,236 shares during the last quarter. Institutional investors own 89.35% of the company’s stock.

Insider Buying and Selling at Talos Energy In related news, insider Control Empresarial De Capital sold 339,568 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $16.80, for a total value of $5,704,742.40. Following the sale, the insider owned 40,460,036 shares of the company’s stock, valued at $679,728,604.80. This trade represents a 0.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.51% of the stock is currently owned by company insiders.

Talos Energy Price Performance Shares of TALO opened at $14.96 on Monday. The company has a market cap of $2.50 billion, a P/E ratio of -3.47 and a beta of 0.34. The stock has a fifty day moving average price of $14.49 and a 200 day moving average price of $13.93. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.20 and a quick ratio of 1.20. Talos Energy Inc. has a 12 month low of $7.67 and a 12 month high of $17.05.

Talos Energy (NYSE:TALO – Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported ($0.07) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.04. Talos Energy had a negative return on equity of 8.24% and a negative net margin of 42.58%.The company had revenue of $472.31 million for the quarter, compared to analysts’ expectations of $446.39 million. During the same period last year, the business posted $0.06 earnings per share. The firm’s quarterly revenue was down 7.9% compared to the same quarter last year. On average, research analysts forecast that Talos Energy Inc. will post 0.37 earnings per share for the current year.

Wall Street Analysts Forecast Growth Several equities analysts recently issued reports on the company. Stephens restated an “overweight” rating and set a $20.00 price objective on shares of Talos Energy in a research note on Wednesday, July 1st. Citigroup lowered their target price on shares of Talos Energy from $20.00 to $18.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Wall Street Zen cut shares of Talos Energy from a “buy” rating to a “hold” rating in a report on Saturday. KeyCorp lifted their price target on shares of Talos Energy from $15.00 to $21.00 and gave the company an “overweight” rating in a report on Thursday, April 2nd. Finally, Mizuho boosted their price objective on shares of Talos Energy from $17.00 to $18.00 and gave the company a “neutral” rating in a research report on Wednesday, May 27th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Talos Energy currently has an average rating of “Hold” and a consensus target price of $18.50.

Get Our Latest Stock Report on Talos Energy

About Talos Energy (Free Report)

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

Featured Articles Five stocks we like better than Talos Energy RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding TALO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Talos Energy Inc. (NYSE:TALO – Free Report).

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, /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) intends to release second quarter 2026 results for the period ended June 30, 2026, on Tuesday, August 4, 2026, after the U.S. financial market closes. In addition to this release, Talos will host a conference call, broadcast live over the internet, on Wednesday, August 5, 2026, at 10:00 AM Eastern Time (9:00 AM Central Time).

Listeners can access the conference call through a webcast link on the Company's website at: Talos Second Quarter 2026 Webcast. Alternatively, the conference call can be accessed by dialing (800) 836-8184 (North American toll-free) or (646) 357-8785 (international). Please dial in approximately 15 minutes before the teleconference is scheduled to begin and ask to be joined into the Talos Energy call. A replay of the call will be available one hour after the conclusion of the conference until August 12, 2026 and can be accessed by dialing (888) 660-6345 and using access code 99686#.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely maximizing long-term value through its Exploration & Production business in the United States Gulf of America and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while maintaining a focus on safe and efficient operations, environmental responsibility, and community impact. For more information, visit www.talosenergy.com.

INVESTOR RELATIONS CONTACT

Kyle Sahni
[email protected]

SOURCE Talos Energy

Key Takeaways Shell will sell Na Kika, related fields and Coulomb interests for $1.7B in cash, pending approvals.SHEL's sale to support its focus on higher-value assets while retaining select future economic interests.Talos Energy expects the deal to expand Gulf operations with added reserves and immediate financial benefits. Shell plc (SHEL - Free Report) and Talos Energy Inc. (TALO - Free Report) have entered into a definitive agreement under which Shell will sell its interests in the Na Kika platform, associated offshore fields and the Coulomb tieback in the Gulf of America to subsidiaries of Talos Energy and Ridgewood Energy for a total consideration of $1.7 billion in cash. The transaction marks another significant step in Shell's strategy to simplify and strengthen its global energy portfolio, reflecting the company's disciplined approach to capital allocation and long-term value creation.

The agreement also underscores Shell's commitment to concentrating investments on assets capable of delivering sustainable returns while monetizing mature operations that no longer align with its long-term production priorities.

A Strategic Move Toward Higher-Value AssetsThe divestment includes Shell's interest in the Na Kika platform and associated fields, along with the Coulomb tieback. These assets contributed approximately 37,000 barrels of oil equivalent per day (boe/d) net to Shell during 2025. However, they are not expected to remain meaningful contributors to Shell's production profile by 2030, making this an opportune time to unlock value through a strategic sale.

The transaction between Shell and Talos Energy, each carrying a Zacks Rank #3 (Hold) at present, has an effective date of July 1, 2025, and is expected to close by the end of 2026, subject to customary regulatory approvals and closing conditions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Maintaining Future Value Beyond the SaleWhile divesting these mature assets, Shell has carefully structured the transaction to preserve exposure to future opportunities.

The company will retain certain upside-linked payments tied to future asset performance, royalty interests associated with new Na Kika tieback developments and offtake rights that provide continued commercial benefits.

This balanced approach enables Shell to realize immediate value while maintaining participation in future developments should additional resources be brought online.

Assets With a Long Operating HistoryThe assets being sold have been important contributors to Shell's deepwater Gulf operations for decades.

BP p.l.c. (BP - Free Report) -operated Na Kika platform — Shell's only non-operated platform in the Gulf of America — commenced production in 2003, while production at the Coulomb field began in 2005. At the end of 2025, Shell reported proved reserves of approximately 4.3 million boe for Na Kika and 7.2 million boe for Coulomb.

BP is currently the operator of the Na Kika platform and owns the remaining 50% interest in the block. BP also retains a 30-day preferential purchase right related to the transaction.

Supporting Shell's Long-Term Energy StrategyThe divestment aligns with Shell's ongoing strategy of actively managing its global portfolio by directing capital toward assets capable of generating stronger long-term returns.

Rather than maintaining ownership of mature fields with declining strategic importance, Shell continues to optimize its upstream portfolio through selective acquisitions, targeted investments and disciplined asset sales. This approach strengthens financial flexibility while allowing the company to focus on projects that support profitable growth and resilient cash generation.

Portfolio optimization remains a core element of Shell's broader strategy to enhance shareholder value while adapting to evolving market dynamics and capital priorities.

Talos Energy Sees Growth OpportunityFor Talos Energy, the acquisition represents a strategic expansion of its deepwater Gulf operations. The company will acquire a 50% working interest and operatorship in the Coulomb field and a 25% non-operated working interest in the BP-operated Na Kika platform and the associated Kepler, Ariel, Fourier and Herschel fields.

The acquired interests produced approximately 16,000 boe/d during the first quarter of 2026, with nearly 77% consisting of oil. Talos Energy estimates the transaction will add roughly 23 million boe of proved reserves, along with approximately 10 million boe of probable reserves, creating additional development opportunities over the coming years.

Talos Energy intends to finance the acquisition through a combination of cash on hand and debt, supported by a $150 million increase in its borrowing base, while expecting the transaction to be immediately accretive to key financial metrics.

Looking AheadThe sale reinforces Shell's disciplined capital allocation strategy by monetizing mature Gulf of America assets while retaining selected future economic interests. By streamlining its upstream portfolio and focusing investment on higher-value opportunities, the company continues to strengthen its competitive position and maintain the flexibility needed to pursue long-term growth across its global energy business.

As the transaction progresses toward its expected closing by the end of 2026, it marks another important milestone in Shell's ongoing portfolio transformation and commitment to delivering sustainable value for its shareholders.

, /PRNewswire/ -- Talos Energy Inc. ("Talos") (NYSE: TALO) today announced that Talos Production Inc. (the "Company"), a wholly owned subsidiary of Talos, has commenced an offering (the "Offering") of $800 million in aggregate principal amount of Second-Priority Senior Secured Notes due 2034 (the "New Notes"). The Company intends to use the net proceeds from the Offering to (i) fund a portion of the cash consideration for the Company's recently announced pending Gulf of America acquisition (the "Acquisition"), (ii) fund the redemption (the "Redemption") of all of the outstanding 9.000% Second-Priority Senior Secured Notes due 2029 issued by the Company (the "2029 Notes"), and (iii) pay related fees and expenses.

If the Acquisition is not consummated on or before December 31, 2026, if the Company notifies the trustee of the New Notes that it will not pursue the consummation of the Acquisition, or if the third-party preferential right to purchase certain assets subject to the Acquisition is exercised, then an aggregate of $175 million principal amount of the New Notes will be subject to a "special mandatory redemption" at a redemption price equal to 100% of the principal amount of the New Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

It is expected that the New Notes will be guaranteed on a senior basis by Talos and certain of the Company's existing and future subsidiaries and will initially be secured on a second-priority basis by substantially the same collateral as the Company's existing first-priority obligations under its senior reserves-based revolving credit facility.

The New Notes are being offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States only in compliance with Regulation S under the Securities Act. The New Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any sale of the New Notes or any other security of the Company, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. This press release does not constitute a notice of redemption under the optional redemption provisions of the indenture governing the 2029 Notes.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely maximizing long-term value through its Exploration & Production business in the United States Gulf of America and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while maintaining a focus on safe and efficient operations, environmental responsibility, and community impact.

INVESTOR RELATIONS CONTACT

Kyle Sahni
[email protected]

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This communication contains "forward-looking statements" within the meaning of U.S. Private Securities Litigation Reform Act of 1995. When used in this communication, the words "will," "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. All statements, other than statements of historical fact included in this communication, are forward-looking statements, including, but not limited to, statements regarding the Company's plans to issue the New Notes and the intended use of the net proceeds therefrom, and the pending Acquisition. 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.

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, our ability to consummate the Acquisition on the terms currently contemplated, risks and uncertainties related to economic, market or business conditions, satisfaction of customary closing conditions related to the Offering, and the other risks discussed in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (the "SEC"), our Quarterly Reports on Forms 10-Q filed with the SEC and our other filings with the SEC, all of which can be accessed at the SEC's website at www.sec.gov.

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 communication 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 communication.

SOURCE Talos Energy

Posted by Defense World Staff on Mar 31st, 2026

Assenagon Asset Management S.A. cut its position in Talos Energy Inc. (NYSE:TALO – Free Report) by 53.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 175,645 shares of the company’s stock after selling 203,423 shares during the period. Assenagon Asset Management S.A. owned 0.10% of Talos Energy worth $1,936,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Sourcerock Group LLC boosted its holdings in Talos Energy by 11.0% in the second quarter. Sourcerock Group LLC now owns 11,193,177 shares of the company’s stock worth $94,918,000 after acquiring an additional 1,110,685 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Talos Energy by 25.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,965,543 shares of the company’s stock valued at $28,440,000 after acquiring an additional 592,509 shares during the period. American Century Companies Inc. increased its holdings in shares of Talos Energy by 8.6% during the third quarter. American Century Companies Inc. now owns 5,765,905 shares of the company’s stock valued at $55,295,000 after acquiring an additional 455,409 shares in the last quarter. CSM Advisors LLC bought a new stake in shares of Talos Energy during the third quarter valued at approximately $3,807,000. Finally, Soviero Asset Management LP acquired a new position in shares of Talos Energy during the third quarter worth approximately $3,644,000. 89.35% of the stock is owned by institutional investors.

Analysts Set New Price Targets TALO has been the topic of a number of recent research reports. Wall Street Zen cut Talos Energy from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Citigroup upped their price objective on shares of Talos Energy from $14.00 to $16.00 and gave the stock a “buy” rating in a report on Tuesday, March 10th. KeyCorp raised their price objective on shares of Talos Energy from $12.00 to $13.50 and gave the company an “overweight” rating in a research note on Friday, December 5th. Mizuho lifted their price objective on shares of Talos Energy from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Tuesday, March 17th. Finally, Benchmark downgraded shares of Talos Energy from a “buy” rating to a “hold” rating in a research report on Thursday, March 5th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $14.63.

Get Our Latest Analysis on TALO

Talos Energy Stock Down 1.4% TALO stock opened at $16.35 on Tuesday. The firm has a market capitalization of $2.75 billion, a PE ratio of -5.76 and a beta of 0.54. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.57. Talos Energy Inc. has a twelve month low of $6.23 and a twelve month high of $17.00. The stock’s 50 day moving average is $13.16 and its 200-day moving average is $11.41.

Talos Energy (NYSE:TALO – Get Free Report) last announced its quarterly earnings results on Tuesday, February 24th. The company reported ($0.44) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.27) by ($0.17). The company had revenue of $392.24 million for the quarter, compared to the consensus estimate of $431.22 million. Talos Energy had a negative return on equity of 6.59% and a negative net margin of 27.77%.The company’s quarterly revenue was down 19.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.08 EPS. Sell-side analysts expect that Talos Energy Inc. will post -0.44 EPS for the current fiscal year.

Talos Energy Company Profile (Free Report)

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

Further Reading Five stocks we like better than Talos Energy

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Does Talos Energy (TALO) have what it takes to be a top stock pick for momentum investors? Let's find out.

Posted by Defense World Staff on Apr 3rd, 2026

Talos Energy Inc. (NYSE:TALO – Get Free Report) shares gapped up before the market opened on Thursday after KeyCorp raised their price target on the stock from $15.00 to $21.00. The stock had previously closed at $14.93, but opened at $15.81. KeyCorp currently has an overweight rating on the stock. Talos Energy shares last traded at $15.9330, with a volume of 211,736 shares trading hands.

Several other research analysts also recently commented on TALO. Mizuho increased their price objective on shares of Talos Energy from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Tuesday, March 17th. Wall Street Zen cut Talos Energy from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Benchmark downgraded Talos Energy from a “buy” rating to a “hold” rating in a research report on Thursday, March 5th. Citigroup increased their price target on Talos Energy from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Talos Energy in a research note on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Talos Energy has a consensus rating of “Hold” and an average target price of $17.50.

Check Out Our Latest Stock Report on Talos Energy

Insider Buying and Selling In other Talos Energy news, insider Control Empresarial De Capital sold 1,352,000 shares of Talos Energy stock in a transaction on Friday, March 27th. The shares were sold at an average price of $16.68, for a total value of $22,551,360.00. Following the completion of the transaction, the insider directly owned 41,233,604 shares of the company’s stock, valued at $687,776,514.72. This trade represents a 3.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.36% of the stock is owned by company insiders.

Key Stories Impacting Talos Energy Here are the key news stories impacting Talos Energy this week:

Positive Sentiment: KeyCorp raised its price target on TALO to $21 and assigned an “overweight” rating, implying meaningful upside vs. the current price — a catalyst that likely pushed buying interest. Benzinga Neutral Sentiment: Talos scheduled first‑quarter 2026 results for release after the close on May 5, with a conference call on May 6 — an imminent event that will likely drive short-term volatility depending on production, realized prices, and guidance. PR Newswire Neutral Sentiment: Recent coverage from Zacks highlights TALO as a momentum/energy sector idea — useful for sentiment and retail interest but not a guaranteed fundamental driver. Zacks Momentum Piece Neutral Sentiment: Analysts’ consensus rating sits at “Hold,” indicating mixed professional views; pockets of bullishness (KeyCorp) are being balanced by caution elsewhere. Analyst Consensus Negative Sentiment: Control Empresarial De Capital sold large blocks of TALO stock (960,000 shares on 3/26 and 1,352,000 shares on 3/27), reducing its stake by several percent — significant insider selling that can weigh on sentiment even if proceeds are for diversification/liquidity. SEC filing link: SEC Form 4 Negative Sentiment: Recent media coverage includes headlines about the stock “nosediving” in some outlets, reflecting short‑term volatility and negative sentiment that could pressure the price if echoed by broader market commentary. MSN Institutional Inflows and Outflows Institutional investors have recently made changes to their positions in the business. Royal Bank of Canada boosted its holdings in shares of Talos Energy by 11.8% in the 1st quarter. Royal Bank of Canada now owns 28,590 shares of the company’s stock worth $278,000 after purchasing an additional 3,007 shares during the period. AQR Capital Management LLC raised its holdings in Talos Energy by 152.1% during the 1st quarter. AQR Capital Management LLC now owns 90,915 shares of the company’s stock valued at $884,000 after buying an additional 54,854 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Talos Energy by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 86,196 shares of the company’s stock valued at $838,000 after buying an additional 3,783 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Talos Energy by 16.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,183,496 shares of the company’s stock worth $21,224,000 after buying an additional 304,205 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its position in Talos Energy by 132.7% in the second quarter. JPMorgan Chase & Co. now owns 386,641 shares of the company’s stock worth $3,279,000 after buying an additional 220,502 shares during the last quarter. Institutional investors own 89.35% of the company’s stock.

Talos Energy Price Performance The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $2.64 billion, a PE ratio of -5.51 and a beta of 0.35. The firm’s 50 day simple moving average is $13.41 and its 200 day simple moving average is $11.51.

Talos Energy (NYSE:TALO – Get Free Report) last announced its earnings results on Tuesday, February 24th. The company reported ($0.44) earnings per share for the quarter, missing the consensus estimate of ($0.27) by ($0.17). The firm had revenue of $392.24 million during the quarter, compared to analysts’ expectations of $431.22 million. Talos Energy had a negative net margin of 27.77% and a negative return on equity of 6.59%. The company’s revenue was down 19.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.08 EPS. As a group, research analysts anticipate that Talos Energy Inc. will post -0.44 EPS for the current fiscal year.

About Talos Energy (Get Free Report)

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

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2,312,000 shares were sold directly for a total value of approximately $38.5 million across two open-market trades on March 26 and March 27, 2026. The sale represented 5.31% of Control Empresarial de Capitales S.A.

Talos Energy continues to deliver disciplined execution, stable production, and robust free cash flow, supporting my maintained Buy rating. TALO's 2026 guidance targets 85-90 Mboe/d production amid planned downtime and natural decline, with high CAPEX ($500-550M) reflecting capital intensity. Nearly half of 2026 Q1 production is hedged, limiting both downside and upside exposure to oil price swings in the short term.

Talos Energy (TALO - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis independent oil and gas company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -250%.

Revenues are expected to be $433.71 million, down 15.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 155.07% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Talos Energy?For Talos Energy, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Talos Energy will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Talos Energy would post a loss of$0.27 per share when it actually produced a loss of -$0.44, delivering a surprise of -62.96%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Talos Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

HOUSTON, May 5, 2026  /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced its operational and financial results for the three months ended March 31, 2026. Talos also provided second quarter 2026 guidance for production and reiterated its operational and financial guidance for the full-year 2026.

Talos Energy Inc. (TALO) Q1 2026 Earnings Call Transcript