Talos Energy (TALO) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• 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: 174,658,020
• 10 Day Avg. Volume: 1,525,106
• 30 Day Avg. Volume: 1,567,526
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $13.33
• Price Target Upside: 36.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $10.50 ▲(7.36% Upside)

Talos Energy's strong financial performance, particularly in cash flow management, and positive earnings call sentiment are key strengths. However, challenges in valuation and net profitability slightly offset these positives. The technical analysis suggests a neutral market position.

Positive Factors

Cash Flow Management

Strong cash flow management indicates robust operational efficiency and financial health, enabling strategic investments and shareholder returns.

Operational Efficiency

Effective cost management enhances profitability and competitive positioning, ensuring resilience against market fluctuations.

Production Growth

Exceeding production targets demonstrates strong operational capabilities and supports revenue growth, reinforcing market position.

Negative Factors

Net Profitability Challenges

Low net profitability can hinder reinvestment and growth opportunities, affecting long-term financial sustainability.

Commodity Price Volatility

Volatile commodity prices can impact revenue stability and profitability, necessitating strategic hedging and cost management.

Low Return on Equity

Low ROE indicates inefficiency in generating returns from equity, potentially limiting investor confidence and capital attraction.

Talos Energy Business Overview & Revenue Model

Company Description

Talos Energy Inc. is an independent oil and natural gas exploration and production company based in the United States. The company focuses primarily on the acquisition, exploration, and development of offshore oil and gas properties in the Gulf of Mexico and the Gulf Coast region. Talos Energy is known for its expertise in exploiting existing fields and discovering new reserves, utilizing advanced technologies and geological analysis to optimize production and enhance recovery rates.

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 shows strong revenue growth and impressive cash flow management, with a significant increase in operating cash flow. However, challenges in net profitability and low return on equity slightly dampen the financial outlook.

Income Statement

Talos Energy has shown strong revenue growth with a significant increase from previous years, indicating a positive growth trajectory. The gross profit margin for TTM is approximately 16.89%, with a net profit margin of 1.27%, reflecting challenges in converting revenue into net income. However, the EBIT and EBITDA margins are relatively strong at 7.22% and 70.07% respectively, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.45, suggesting a balanced approach to leverage. The return on equity (ROE) for TTM is relatively low at 0.96%, indicating challenges in generating earnings from shareholders' equity. The equity ratio is 44.54%, showing a strong equity base relative to total assets, which indicates financial stability.

Cash Flow

Talos Energy demonstrates robust cash flow management, with a significant increase in operating cash flow. The free cash flow growth rate is notably high, indicating improved cash generation capabilities. The operating cash flow to net income ratio is very strong, highlighting efficient cash conversion from operations despite occasional net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.97B	1.46B	1.65B	1.24B	575.94M
Gross Profit	276.18M	382.59M	402.28M	925.77M	561.58M	-36.03M
EBITDA	1.17B	1.26B	1.05B	966.11M	402.67M	83.48M
Net Income	-172.14M	-76.39M	187.33M	381.92M	-182.95M	-465.61M
Balance Sheet
Total Assets	5.92B	6.19B	4.82B	3.06B	2.77B	2.83B
Cash, Cash Equivalents and Short-Term Investments	357.29M	108.17M	33.64M	44.15M	69.85M	34.23M
Total Debt	1.24B	1.24B	1.20B	602.14M	980.77M	1.01B
Total Liabilities	3.41B	3.43B	2.66B	1.89B	2.01B	1.91B
Stockholders Equity	2.52B	2.76B	2.16B	1.17B	760.65M	926.60M
Cash Flow
Free Cash Flow	1.47B	962.59M	-54.73M	386.57M	118.06M	-61.02M
Operating Cash Flow	1.20B	962.59M	519.07M	709.74M	411.39M	301.92M
Investing Cash Flow	-549.74M	-1.32B	-512.63M	-311.98M	-293.75M	-678.90M
Financing Cash Flow	-324.02M	436.12M	85.41M	-423.47M	-82.02M	324.19M

Talos Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TALO, the sentiment is Positive. The current price of 9.78 is above the 20-day moving average (MA) of 9.48, above the 50-day MA of 9.62, and above the 200-day MA of 8.81, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TALO.

Talos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNR	75 Outperform	$1.42B	6.20	16.84%	18.79%	11.56%	―
TALO	71 Outperform	$1.67B	―	-13.71%	―	-0.02%	-473.61%
KRP	66 Neutral	$1.61B	―	4.52%	12.65%	-2.71%	-113.80%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BKV	63 Neutral	$2.09B	―	-1.36%	―	13.20%	55.44%
HPK	61 Neutral	$771.93M	17.09	2.83%	3.05%	-22.39%	-71.57%
KOS	48 Neutral	$655.31M	―	-31.42%	―	-22.11%	-248.33%

Talos Energy Corporate Events

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.

Talos Energy Reports Q2 2025 Results Amid Strategic Shifts

Talos Energy, an independent energy company, focuses on exploration and production in the Gulf of Mexico and offshore Mexico, leveraging technical expertise for efficient operations. In its second quarter of 2025, Talos Energy reported a net loss of $185.9 million, primarily due to a significant non-cash impairment charge. Despite this, the company achieved an adjusted EBITDA of $294.2 million and generated an adjusted free cash flow of $98.5 million, exceeding market expectations. Key operational achievements included initiating production at new wells and resuming drilling at the Daenerys prospect. Talos also enhanced its corporate strategy to strengthen its position as a leading offshore exploration and production company, focusing on production growth and profitability through organic projects and strategic acquisitions. Looking forward, Talos Energy aims to capitalize on its strong financial foundation and strategic initiatives to lead in the offshore E&P sector, anticipating increased global energy demand.