Talos Energy (TALO) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -0.02%
• EPS Growth: -473.61%
• Country: US
• Employees: 700
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.19
• Shares Outstanding: 169,988,770
• 10 Day Avg. Volume: 2,506,181
• 30 Day Avg. Volume: 1,981,294
• PEG Ratio: 0.17
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 1.77
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 9.73
• Enterprise Value/Ebitda: 2.78
• 1Y Price Target: $13.17
• Price Target Upside: 16.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.94
• Revenue Forecast (FY): $1.80B

• Rating: 63 Neutral
• Price Target: $11.00 ▼(-2.91% Downside)

Talos Energy's overall stock score is driven by strong earnings call performance and positive technical indicators. However, challenges in financial performance and valuation due to negative profitability metrics weigh on the score. The company's ability to generate cash and manage costs effectively are positive factors, but improvements in revenue growth and profitability are needed.

Positive Factors

Strong Cash Generation

Strong cash generation allows Talos Energy to reinvest in growth opportunities and return capital to shareholders, enhancing long-term financial stability.

Cost Reduction and Efficiency

Effective cost management improves profitability and competitiveness, positioning Talos Energy favorably against peers in the oil and gas sector.

Advantaged Cost Structure

A lower cost structure enhances Talos Energy's ability to maintain high margins, providing resilience against market fluctuations and supporting long-term growth.

Negative Factors

Declining Revenue

Revenue decline reflects challenges in market demand or pricing, potentially impacting future growth and profitability if not addressed.

Negative Profit Margin

A negative profit margin indicates profitability challenges, which could hinder Talos Energy's ability to sustain operations and invest in growth.

Decline in Free Cash Flow Growth

Declining free cash flow growth limits Talos Energy's capacity to fund new projects or return capital to shareholders, affecting long-term financial health.

Talos Energy Business Overview & Revenue Model

Company Description

Talos Energy Inc., an independent exploration and production company, focuses on the exploration and production of oil and natural gas properties in the United States Gulf of Mexico and offshore Mexico. As of December 31, 2021, the company had proved reserves of 161.59 million barrels of oil equivalent, consisting of 107,764 thousand barrels of crude oil, 236,353 million cubic feet of natural gas, and 14,435 thousand barrels of crude oil. The company was founded in 2011 and is based in Houston, Texas.

How the Company Makes Money

Talos Energy generates revenue primarily through the production and sale of crude oil and natural gas. The company's revenue model is based on the extraction of hydrocarbons from its operated and non-operated properties, where it sells the produced oil and gas to various buyers, including refiners and marketers. Key revenue streams include the sale of crude oil, natural gas liquids, and natural gas. Additionally, Talos may engage in joint ventures and partnerships, sharing resources and costs with other energy companies, which can further enhance profitability. Market dynamics, such as global oil prices and demand for natural gas, significantly impact the company’s earnings, as fluctuating commodity prices directly affect revenue levels.

Talos Energy Financial Statement Overview

Summary

Talos Energy faces challenges in revenue growth and profitability, with a negative net profit margin and declining revenue. However, the company maintains a stable balance sheet with manageable debt levels and strong cash generation, despite a decline in free cash flow growth.

Income Statement

Talos Energy's income statement shows mixed results. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue by 3.07% and a negative net profit margin of -8.91%, reflecting challenges in profitability. The gross profit margin has decreased to 14.29% from 19.39% in the previous year, indicating pressure on cost management. However, the EBITDA margin remains strong at 60.54%, suggesting operational efficiency. Overall, the income statement reflects a need for improvement in revenue growth and profitability.

Balance Sheet

The balance sheet of Talos Energy shows a moderate financial position. The debt-to-equity ratio is 0.49, indicating a manageable level of leverage. However, the return on equity is negative at -6.36%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 41.76%, suggesting a stable capital structure. While the company maintains a reasonable debt level, the negative ROE indicates a need for improved profitability.

Cash Flow

Talos Energy's cash flow statement presents a mixed picture. The operating cash flow to net income ratio is strong at 1.68, indicating good cash generation relative to net income. However, the free cash flow growth rate is negative at -26.09%, reflecting a decline in cash available for reinvestment. The free cash flow to net income ratio is positive at 1.22, suggesting that the company is generating sufficient cash relative to its net income. Overall, while cash generation is strong, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.97B	1.46B	1.65B	1.24B	575.94M
Gross Profit	276.24M	382.59M	402.28M	925.77M	561.58M	-36.03M
EBITDA	968.50M	1.26B	1.05B	966.11M	402.67M	83.48M
Net Income	-356.22M	-76.39M	187.33M	381.92M	-182.95M	-465.61M
Balance Sheet
Total Assets	5.70B	6.19B	4.82B	3.06B	2.77B	2.83B
Cash, Cash Equivalents and Short-Term Investments	332.69M	108.17M	33.64M	44.15M	69.85M	34.23M
Total Debt	1.36B	1.24B	1.20B	602.14M	980.77M	1.01B
Total Liabilities	3.32B	3.43B	2.66B	1.89B	2.01B	1.91B
Stockholders Equity	2.38B	2.76B	2.16B	1.17B	760.65M	926.60M
Cash Flow
Free Cash Flow	929.67M	962.59M	506.70M	386.57M	118.06M	-61.02M
Operating Cash Flow	1.08B	962.59M	519.07M	709.74M	411.39M	301.92M
Investing Cash Flow	-556.94M	-1.32B	-512.63M	-311.98M	-293.75M	-678.90M
Financing Cash Flow	-268.98M	436.12M	85.41M	-423.47M	-82.02M	324.19M

Talos Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TALO, the sentiment is Positive. The current price of 11.33 is above the 20-day moving average (MA) of 10.44, above the 50-day MA of 9.93, and above the 200-day MA of 8.88, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 67.44 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TALO.

Talos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNR	73 Outperform	$1.96B	12.13	6.68%	16.67%	9.33%	―
KRP	66 Neutral	$1.65B	―	4.73%	13.15%	-2.71%	-113.80%
HPK	66 Neutral	$817.57M	18.18	2.83%	3.05%	-22.39%	-71.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BKV	65 Neutral	$2.37B	50.97	2.62%	―	31.67%	―
TALO	63 Neutral	$1.93B	―	-13.71%	―	-0.02%	-473.61%
KOS	47 Neutral	$511.81M	―	-31.42%	―	-22.11%	-248.33%

Talos Energy Corporate Events

Talos Energy Shines in Q3 Earnings Call

Talos Energy’s recent earnings call conveyed a strong sense of optimism, driven by robust operational and financial performance. The company highlighted significant achievements in production, free cash flow generation, and cost efficiency. While acknowledging challenges such as a noncash impairment and market volatility, the overall sentiment was overwhelmingly positive, with the benefits far outweighing the negatives.

Talos Energy Reports Strong Q3 2025 Results

Talos Energy Inc. is an independent energy company focused on exploration and production in the Gulf of Mexico and offshore Mexico, known for its technical expertise and innovative approach in the oil and gas industry.

Talos Energy Reports Q3 2025 Financial Results

On November 5, 2025, Talos Energy announced its operational and financial results for the third quarter of 2025, highlighting a production rate of 95.2 thousand barrels of oil equivalent per day and a net cash flow of $114.2 million. The company reported a net loss of $95.9 million, influenced by a $60.2 million non-cash impairment charge, but generated an adjusted free cash flow of $103.4 million, enabling significant share repurchases. Talos also announced a successful exploration discovery at the Daenerys prospect, with plans for further appraisal in 2026, and exceeded its Optimal Performance Plan target by realizing over $40 million in cash flow enhancements.

The most recent analyst rating on (TALO) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Talos Energy stock, see the TALO Stock Forecast page.

Talos Energy Announces Key Executive Appointments

Talos Energy announced key executive appointments to support its corporate strategy and enhance its offshore leadership. Zachary B. Dailey was appointed as Executive Vice President and Chief Financial Officer, effective August 18, 2025, bringing over 17 years of oil and gas experience. William R. Langin will join as Executive Vice President – Exploration and Development on September 29, 2025, with over 20 years of experience in the industry. Megan Dick was promoted to Executive Vice President and Chief Human Resources Officer, effective August 1, 2025. These appointments are expected to strengthen Talos Energy’s strategic leadership and contribute to its long-term success.

The most recent analyst rating on (TALO) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Talos Energy stock, see the TALO Stock Forecast page.

Talos Energy Shines in Q2 Earnings Call

Talos Energy’s recent earnings call highlighted a strong financial and operational performance in the second quarter, despite facing some challenges. The company demonstrated significant progress on strategic initiatives and showcased a strengthened balance sheet. While a noncash impairment and a temporary operational setback at the Sunspear well posed challenges, Talos Energy’s achievements and strategic focus provide a positive outlook for the future.