Talos Energy (TALO)
NYSE:TALO
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Earnings Data
Report Date
Aug 12, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.23Last Year’s EPS
-0.27Same Quarter Last Year
Moderate Buy
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive tone driven by strong Q1 execution: production slightly above guidance, robust adjusted EBITDA ($293M) and free cash flow ($113M), low unit costs (~$16/boe and ~30% below peers in 2025), disciplined capital allocation (repurchases, ~7% share count reduction), healthy liquidity (~$1B) and clear project pipeline (CPN, Daenerys, Monument, Brutus). Management acknowledged risks—commodity and geopolitical volatility, exploration/appraisal and rig market uncertainties, timing on Genovese, and outstanding second‑lien notes—but positioned the company as financially flexible with hedging and a focus on low‑breakeven projects. Overall, the positive operational and financial highlights materially outweigh the identified lowlights.Company Guidance
Strong Financial Results and Cash Generation
Adjusted EBITDA of $293 million and adjusted free cash flow of $113 million in Q1 2026, achieved at a low reinvestment rate of ~41%. Invested just under $120 million of exploration and development capital in the quarter.
Production Outperformance and Operational Execution
Total production ~89k boe/d (oil production ~64k bbl/d), which slightly exceeded Q1 guidance. Strong new-well productivity at Cardona, CPN drilled and completed in Q1 with first production on track for Q3, and Genovese remediation on track to return to production midyear (slightly ahead of prior schedule).
Low Cost Structure and Top-Decile Margins
Company lease operating expenses ~ $16/boe in Q1 (in line with 2025 average). For 2025, operating costs were ~30% lower on average than the offshore peer group, supporting top‑decile EBITDA margins. Company expects ~73% oil mix in 2026, enhancing margin profile.
Disciplined Capital Allocation and Shareholder Returns
Returned $38 million in Q1 (34% of adjusted free cash flow) via share repurchases. Since initiating the capital return framework in 2025, repurchases total ~ $135 million, resulting in ~7% reduction in outstanding share count.
Strong Liquidity and Improved Balance Sheet
Approximately $1 billion of liquidity, sequential decline in net debt and increased cash on hand. Credit facility maturity extended to 2030 and no near-term debt maturities, providing flexibility to execute the plan.
Progressing Development and Exploration Pipeline
Active drilling and development: Daenerys appraisal targeted to spud later in Q2 with evaluation by year-end; Monument drilling underway with first oil on track by late 2026; Brutus redevelopment and other near-field activity underway. Successful December 2025 lease sale: all 11 leases awarded, identifying eight prospects representing >300 million barrels gross unrisked resource potential.
Operational Efficiency Program Traction
Optimal performance plan: >40% of the $100 million 2026 target already achieved (i.e., >$40 million realized to date). Management expresses confidence in meeting the $100 million target by year-end and aims to embed a continuous improvement culture.
Measured Hedging and Improved Realizations
Selective hedging activity added (including layering protection into early 2027) consistent with the hedging framework to support free cash flow resilience. Approximately two‑thirds of produced oil is sour; April pricing showed strength in Gulf Coast sour differentials, which should support near-term realizations.
TALO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TALO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 05, 2026 | $15.91 | $15.05 | -5.41% |
Feb 24, 2026 | $13.13 | $11.33 | -13.71% |
Nov 05, 2025 | $9.56 | $9.78 | +2.30% |
Aug 06, 2025 | $7.79 | $7.85 | +0.77% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Talos Energy (TALO) report earnings?
Talos Energy (TALO) is schdueled to report earning on Aug 12, 2026, After Close (Confirmed).
What is Talos Energy (TALO) earnings time?
Talos Energy (TALO) earnings time is at Aug 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TALO EPS forecast?
TALO EPS forecast for the fiscal quarter 2026 (Q2) is 0.23.