Talos Energy (TALO) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• 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: 1,331,134
• 30 Day Avg. Volume: 1,772,678
• 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: 1.32
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 9.73
• Enterprise Value/Ebitda: 2.78
• 1Y Price Target: $13.92
• Price Target Upside: 19.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -1.45
• Revenue Forecast (FY): $1.72B

• Rating: 63 Neutral
• Price Target: $11.00 ▼(-5.42% 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 exploration, production, and sale of crude oil and natural gas. The company earns money by extracting hydrocarbons from its owned and operated oil and gas fields, selling these resources at market prices. Key revenue streams include the sale of produced oil and gas, as well as any associated by-products, such as natural gas liquids. Additionally, Talos may engage in joint ventures and partnerships to develop specific projects, which can provide additional revenue opportunities. The company's financial performance is influenced by global oil and gas prices, production volumes, and operational efficiencies, as well as its ability to manage costs effectively.

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: 11.63
• 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 11.63 is above the 20-day moving average (MA) of 11.06, above the 50-day MA of 11.01, and above the 200-day MA of 9.26, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 79.42 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	81 Outperform	$1.84B	11.40	6.68%	17.48%	9.33%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KRP	64 Neutral	$1.54B	-69.73	4.73%	13.84%	-2.71%	-113.80%
TALO	63 Neutral	$2.03B	-5.77	-13.71%	―	-0.02%	-473.61%
BKV	62 Neutral	$2.47B	49.25	2.62%	―	31.67%	―
HPK	61 Neutral	$620.40M	13.80	2.83%	3.71%	-22.39%	-71.57%
KOS	48 Neutral	$607.48M	-1.81	-31.42%	―	-22.11%	-248.33%

Talos Energy Corporate Events

Talos Energy Extends Key Cooperation Agreement

On December 8, 2025, Talos Energy Inc. extended its Cooperation Agreement with Control Empresarial de Capitales, S.A. de C.V., a company controlled by Carlos Slim’s family, to December 16, 2026. This extension signifies continued collaboration with a significant stakeholder that holds more than 5% of Talos Energy’s voting securities, potentially impacting the company’s strategic operations and market positioning.

The most recent analyst rating on (TALO) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on Talos Energy stock, see the TALO Stock Forecast page.

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.