olivLaw · US equity research
Talos Energy Inc. TALO
Crude Petroleum & Natural Gas · SIC 1311 · Vertical: Crude Petroleum & Natural Gas (SIC 1311)
Talos Energy is an independent oil and gas producer focused on deepwater assets in the Gulf of America and offshore Mexico. In 2026 it is financing an acquisition of assets worth more than 850 million dollars while expanding its production base, after quarterly output reached 93.7 thousand barrels of oil equivalent per day.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Talos Energy Inc. (TALO) stock was 15.61 USD (−3.04% on the day), with market capitalisation 2.6 bn USD, beta 0.73, 52-week range 9.56–18.55 USD. Latest reported quarter (Q3 2026): revenue of 596.0 m USD (+32.4% YoY), net income of -81.2 m USD, diluted EPS -0.49 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 34.8
- weak (30–45)
- Bollinger (20, 2)
- 15.91 – 19.07
- below the lower band · %B -0.10 · band width 18.0%
- SMA 50 / 200
- 17.17 / 15.07
- mixed trend
- MACD (12, 26, 9)
- -0.08 / 0.20
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −8.2% | −1.1% | −7.1 pp | — |
| 3 months | +10.1% | −0.5% | +10.5 pp | — |
| 6 months | +3.7% | +4.4% | −0.7 pp | — |
| Year to date | +41.7% | +12.3% | +29.3 pp | — |
| 1 year | +63.3% | +13.5% | +49.7 pp | +19.9% |
| 3 years | +1.0% | +76.4% | −75.4 pp | +8.7% |
| 5 years | +20.0% | +63.7% | −43.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 485.2 m | 513.1 m | 424.7 m | 450.1 m | 392.2 m | 472.3 m | 664.8 m | 596.0 m |
| Operating income | 27.2 m | 43.5 m | -273.6 m | -86.2 m | -244.0 m | -119.4 m | 198.2 m | 156.9 m |
| Depreciation & amortisation | 274.6 m | 280.7 m | 269.7 m | 262.6 m | 243.2 m | 230.4 m | 229.4 m | 233.4 m |
| Interest expense | 41.5 m | 40.9 m | 40.8 m | 40.8 m | 40.8 m | 39.2 m | 39.2 m | 40.2 m |
| Pre-tax income | -55.1 m | -10.0 m | -222.4 m | -120.1 m | -252.1 m | -321.3 m | 194.7 m | -33.9 m |
| Income tax | 9.4 m | -91.0 k | -36.4 m | -24.2 m | -48.4 m | -65.3 m | 44.8 m | 47.1 m |
| Net income | -64.5 m | -9.9 m | -185.9 m | -95.9 m | -202.6 m | -256.2 m | 149.7 m | -81.2 m |
| Diluted EPS | -0.36 ≈ | -0.05 | -1.05 | -0.55 | -1.19 ≈ | -1.52 | 0.88 | -0.49 |
| Operating cash flow | 349.3 m | 268.2 m | 351.6 m ≈ | 114.2 m ≈ | 201.8 m | 174.0 m | 300.6 m ≈ | 325.8 m ≈ |
| Share repurchases | 0 | 17.3 m | 37.4 m ≈ | 48.3 m ≈ | 16.5 m | 38.2 m | 0 ≈ | 22.6 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 891.3 m | 908.1 m | 575.9 m | 1.2 bn | 1.7 bn | 1.5 bn | 2.0 bn | 1.8 bn |
| Revenue YoY | +115.9% | +1.9% | −36.6% | +116.1% | +32.7% | −11.7% | +35.4% | −9.8% |
| Net income | 221.5 m | 58.7 m | -465.6 m | -183.0 m | 381.9 m | 187.3 m | -76.4 m | -494.3 m |
| Net income YoY | unavailable | −73.5% | −892.8% | unavailable | unavailable | −50.9% | −140.8% | unavailable |
| Diluted EPS | 4.81 | 1.08 | -6.88 | -2.24 | 4.56 | 1.55 | -0.44 | -2.82 |
| Diluted EPS YoY | unavailable | −77.5% | −737.0% | unavailable | unavailable | −66.0% | −128.4% | unavailable |
| net % | 24.9% | 6.5% | -80.8% | -14.7% | 23.1% | 12.8% | -3.9% | -27.8% |
| Free cash flow | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 362.8 m USD
- Financial debt
- 1.2 bn USD
- Net debt
- 863.4 m USD
- Equity
- 2.2 bn USD
- Total assets
- 5.6 bn USD
- Debt / equity
- 0.57x
- Current ratio
- 1.30x
- ROE
- -20.1%
- ROA
- -8.4%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 575.9 m | 1.2 bn | 1.7 bn | 1.5 bn | 2.0 bn | 1.8 bn | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | -421.3 m | 374.6 m | 736.1 m | 209.8 m | 172.9 m | -560.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 364.3 m | 396.0 m | 414.6 m | 663.5 m | 1.0 bn | 1.1 bn | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | -57.0 m ≈ | 770.6 m ≈ | 1.2 bn ≈ | 873.3 m ≈ | 1.2 bn ≈ | 496.0 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 99.4 m | 133.1 m | 125.5 m | 173.1 m | 187.6 m | 163.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | -430.0 m | -184.6 m | 384.5 m | 126.7 m | -71.4 m | -604.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | 35.6 m | -1.6 m | 2.5 m | -60.6 m | 5.0 m | -109.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | -465.6 m | -183.0 m | 381.9 m | 187.3 m | -76.4 m | -494.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | -6.88 | -2.24 | 4.56 | 1.55 | -0.44 | -2.82 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 67.7 m | 81.8 m | 83.7 m | 120.8 m | 175.6 m | 175.1 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 34.2 m | 69.9 m | 44.1 m | 33.6 m | 108.2 m | 362.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Receivables | 106.2 m | 173.2 m | 150.6 m | 179.0 m | 236.7 m | 166.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 247.4 m | 340.0 m | 367.8 m | 422.2 m | 659.4 m | 841.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 2.5 bn | 2.4 bn | 2.6 bn | 4.0 bn | 5.2 bn | 4.4 bn | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | — | 0 | 1.4 m | — | — | — | SEC (XBRL)· 01 Mar 2023verified |
| Total assets | 2.8 bn | 2.8 bn | 3.1 bn | 4.8 bn | 6.2 bn | 5.6 bn | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 104.9 m | 85.8 m | 128.2 m | 84.2 m | 117.1 m | 93.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Short-term debt | 0 | 6.1 m | 0 | 33.1 m | 0 | — | SEC (XBRL)· 27 Feb 2025verified |
| Long-term debt | 985.5 m | 956.7 m | 585.3 m | 992.6 m | 1.2 bn | 1.2 bn | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 447.5 m | 600.5 m | 607.1 m | 578.6 m | 723.1 m | 644.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 1.9 bn | 2.0 bn | 1.9 bn | 2.7 bn | 3.4 bn | 3.4 bn | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 926.6 m † | 760.7 m † | 1.2 bn † | 2.2 bn † | 2.8 bn | 2.2 bn | SEC (XBRL)· 25 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 301.9 m | 411.4 m | 709.7 m | 519.1 m | 962.6 m | 935.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Investing cash flow | -678.9 m | -293.7 m | -312.0 m | -512.6 m | -1.3 bn | -546.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | 324.2 m | -82.0 m | -423.5 m | 85.4 m | 436.1 m | -164.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Share repurchases | — | 0 | 0 | 47.5 m | 45.2 m | 119.5 m | SEC (XBRL)· 25 Feb 2026verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 34 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation67
- Returns43
- Quality25
- Balance sheet27
- Growth21
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 13.35 – 26.34 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDA13.35 – 26.34 (Mid 22.95)11 companies used · median multiple 5.2x · quartiles 3.4x – 5.8xAPA, DEC, EOG, EQT, EXE, FANG, MNR, MTDR, OVV, PARR, REPX
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 34/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -0.2% | 26 (vs peers) | 17% |
| Net margin · Quality | -18.4% | 24 (vs peers) | 10% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 2.5% | 21 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 1.1x | 43 (vs peers) | 17% |
| Interest coverage · Balance sheet | -0.1x | 0 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 1.1x | 29 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 3.9x | 67 (vs peers) | 17% |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 3.0% | 43 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet27/100 · 3/3 factors with a value
- Growth· partial21/100 · 1/2 factors with a value
- Quality25/100 · 2/3 factors with a value
- Returns· partial43/100 · 1/2 factors with a value
- Valuation· partial67/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Talos Energy Inc. (TALO). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.8 bn USD in 2025; YoY growth -9.8%; net margin -18.4%; ROE -18.1%; net debt/EBITDA 1.1x.
The estimated value range is 13.35–26.34 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 22.95 USD, the price of 15.61 USD leaves a potential of 47.0% (value / price − 1) and a margin of safety of 32.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 34/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns, valuation. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- ROIC: -0.2%
- Net margin: -18.4%
- Revenue CAGR 3Y: 2.5%
- Interest coverage: -0.1x
- Current ratio: 1.1x
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, P/E (TTM), FCF yield, Payout ratio (FCF).
Versus the vertical median
Crude Petroleum & Natural Gas (SIC 1311) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TTETotalEnergies SE | 199.6 bn | 15.7 | 11.3% | 6.5% | −6.2% | +38% / +33% |
| PBRPetrobras - Petroleo Brasileiro SA | 145.9 bn | 33.8 | 10.9% | 8.2% | −10.7% | +56% / +28% |
| EOGEog Resources, Inc. | 77.1 bn | 11.4 | 22.5% | 25.4% | −4.5% | +36% / +19% |
| OXYOccidental Petroleum Corporation | 57.3 bn | 8.6 | 18.9% | 33.7% | −1.9% | +37% / −3% |
| FANGDiamondback Energy, Inc. | 51.1 bn | 25.0 | 5.3% | 11.0% | +35.8% | +20% / +18% |
| DVNDevon Energy Corp | 48.5 bn | 10.5 | 11.5% | 16.7% | +7.8% | +19% / −2% |
| EQTEqt Corporation | 32.9 bn | 12.5 | 10.9% | 28.4% | +63.9% | −14% / +31% |
| EXEExpand Energy Corporation | 20.2 bn | 7.6 | 14.6% | 19.8% | +186.3% | −28% / +9% |
| PRPermian Resources Corporation | 18.8 bn | 14.9 | 11.5% | 21.5% | +1.3% | +55% / +71% |
| OVVOvintiv Inc. | 16.8 bn | 12.7 | 12.1% | 12.8% | −2.7% | +53% / +41% |
| APAApa Corporation | 15.6 bn | 9.4 | 25.9% | — | unavailable | +78% / +24% |
| MTDRMatador Resources Company | 6.2 bn | 8.6 | 12.8% | 19.9% | +5.5% | +19% / −13% |
| CRCCalifornia Resources Corp | 4.3 bn | — | -15.5% | -18.1% | +14.7% | +1% / −6% |
| PARRPar Pacific Holdings, Inc. | 3.5 bn | 3.6 | 50.9% | 9.8% | −6.4% | +53% / +103% |
| TALOTalos Energy Inc. | 2.6 bn | — | -18.1% | -18.4% | −9.8% | +63% / +1% |
| NOGNorthern Oil And Gas, Inc. | 2.4 bn | — | -22.1% | -25.4% | +11.2% | −1% / −40% |
| MNRMach Natural Resources LP | 1.7 bn | 19.1 | — | 7.4% | +21.2% | −15% / −43% |
| DMLPDorchester Minerals, L.P. | 1.4 bn | 15.6 | — | 45.5% | −5.4% | +27% / −5% |
| REPXRiley Exploration Permian, Inc. | 948.6 m | 9.2 | 16.8% | 17.3% | −4.4% | +57% / +74% |
| DECDiversified Energy Company | 942.7 m | 16.7 | 11.0% | 4.9% | +141.5% | −11% / +1,434% |
| EGYVaalco Energy Inc | 568.0 m | — | -24.4% | -31.1% | −25.0% | +51% / +16% |
| GPRKGeoPark LTD | 487.6 m | 9.9 | 22.1% | 10.1% | −25.5% | +16% / +4% |
| SDSandridge Energy, Inc. | 468.3 m | 5.7 | 16.2% | 46.1% | +24.8% | −11% / −9% |
| KRPKimbell Royalty Partners, LP | 415.5 m | 4.1 | — | 29.7% | +7.9% | +24% / +1% |
| GTEGran Tierra Energy Inc. | 355.6 m | — | -97.9% | -40.0% | −4.0% | +122% / +59% |
1- and 3-year price returns: for TALO from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
In brief
Talos Energy is an independent oil and gas producer focused on deepwater assets in the Gulf of America and offshore Mexico. In 2026 it is financing an acquisition of assets worth more than 850 million dollars while expanding its production base, after quarterly output reached 93.7 thousand barrels of oil equivalent per day 3.
SWOT
Strengths
- Long-standing technical and offshore operating experience in the Gulf of America, with a focus on deepwater and solid operational results in the second quarter of 2026 3.
- A balance sheet reinforced by strong cash balances, an undrawn credit facility and low leverage relative to adjusted EBITDA, which could provide financial flexibility 3.
- A portfolio with growth potential from projects such as Monument and Daenerys, plus exploration options in Honduras, which could extend resources over the long term 23.
Weaknesses
- Geographic concentration of production in the Gulf of America exposes the company to regional risks such as hurricanes and infrastructure disruption 1.
- Dependence on oil and spot prices, combined with high revenue sensitivity to price moves, can amplify the effect of a price decline 1.
- Decommissioning obligations and collateral requirements for sureties are substantial and could absorb cash if they increase 1.
Opportunities
- The deepwater acquisition from Shell and other transactions could expand the company's scale and raise production if they close as planned 23.
- The Mexico Block 29 farm-in and the Honduras agreement open exploration and development opportunities in new regions at a comparatively low initial cost 23.
- The share repurchase program and the allocation of part of free cash flow to shareholders could support shareholder value if market conditions are favorable 3.
Threats
- Price volatility, Middle East disruptions and international sanctions could affect prices and demand for the company's products 12.
- Stricter regulation of offshore operations and of financial assurance for decommissioning could raise costs 1.
- Failure to close announced transactions or delays in projects such as Monument could reduce the expected production growth 23.
Risks
- Dependence on oil and gas priceshigh
Revenues depend directly on spot prices for oil and gas, and a prolonged price decline could reduce cash flow, capital plans and access to financing 1.
- Geographic concentration of assetshigh
Most production comes from the Gulf of America, so extreme weather or infrastructure constraints could have a disproportionate effect on results 1.
- Execution risk on acquisitionsmedium
Pending transactions, including the Shell deal and the Mexico and Coulomb and Na Kika transactions, depend on approvals and closing conditions; delays could change the financing and production plan 23.
- Decommissioning obligations and surety collateralmedium
Abandonment costs can vary significantly and may require substantial collateral for surety providers, which could limit investment capacity 1.
- Reserve estimate risklow
Reserve estimates rely on assumptions about prices and costs, and differences between estimates and actual results could affect asset value 1.
Investment thesis
What would need to be true (bull case)
- Investors could support the thesis if deepwater acquisitions close on schedule and production rises toward the new guidance 23.
- A lower-leverage balance sheet and a share repurchase program could support free cash flow and shareholder value 3.
- Growth projects such as Monument and Daenerys, plus exploration in Honduras, could extend the portfolio's life if results are good 23.
What would break the thesis
- A fall in oil prices could reduce revenues and cash flow, especially since most sales are on the spot market 1.
- Geographic concentration in the Gulf of America and infrastructure risks could cause production interruptions that affect results 1.
- Acquisitions and decommissioning obligations are complex and could consume more cash and capital than anticipated 12.
What to watch
- Closing of the Shell deepwater acquisition and of the Coulomb and Na Kika transactionQ3 2026
- Results of the first Daenerys appraisal well2026
- Start of production from the Monument project2026
- Final approval of the 35% Honduras interest and progress toward the Mexico Block 29 investment decision2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
The business
Talos Energy Inc. describes itself as a technically driven, independent energy company focused on its Upstream business in the U.S. Gulf of America and offshore Mexico 12. The company combines expertise in geology, geophysics and engineering with resource evaluation and seismic imaging to discover new resources 1. In 2026 it frames its strategy around three pillars: increasing free cash flow, growth through high-margin organic projects and selective deepwater acquisitions, and building a long-lived portfolio in the Gulf of America 13.
Oil dominates the production mix: in 2025 oil made up about 70% of production on a Boe basis and about 75% of estimated proved reserves at year-end, according to the annual report 1. Operated production from deepwater assets was the main revenue source in the second quarter of 2026 3. Talos said production for the quarter exceeded guidance ranges, aided by optimization and high facility uptime 3.
The capital structure changed in summer 2026: the company issued 8.000% second-priority senior secured notes due 2034 and fully redeemed its 9.000% notes due 2029, which could lower borrowing costs if markets stay favorable 2. The credit facility was increased from 700 to 850 million dollars, effective after the Gulf of America bolt-on acquisition closes 23.
Segments
Market context
The market Talos operates in is dominated by volatile oil and gas prices. In 2025 the monthly NYMEX WTI price moved within a wide range and Henry Hub gas also fluctuated significantly, and the company warns its revenues are sensitive to these moves 1. In the second quarter of 2026 its average realized oil price was 99.47 dollars per barrel, compared with an average NYMEX WTI of 92.79 dollars 3.
Geopolitical conditions have added uncertainty. The company cites the war in Iran, which began in February 2026, disruptions to maritime transit through the Strait of Hormuz, and tensions involving Russia and Ukraine as factors that can influence prices and demand 12. Talos says it cannot predict the nature or magnitude of these effects 2.
Trends
- Volatility in oil and gas pricesmixed
Oil and gas prices stayed volatile through 2025 and into 2026 due to geopolitical tensions and macroeconomic uncertainty; revenues could decline if prices soften 12.
- Geopolitical tensions in the Middle Eastmixed
The war in Iran and disruptions in the Strait of Hormuz raised risk and supported prices, but they could also affect demand and counterparties if the situation deteriorates 2.
- Consolidation in the Gulf of Americatailwind
Announced acquisitions, including the Shell assets and the Na Kika and Coulomb properties, could expand the company's deepwater scale if the deals close on schedule 23.
- Decommissioning and financial assurance obligationsheadwind
Abandonment and decommissioning obligations are large and variable; the company has entered collateral arrangements with its surety providers, and spending could rise or fall from period to period 1.
Competitive position
The supplied sources do not explicitly name direct competitors of Talos. The company operates in a market of independent offshore producers in the Gulf of America, where asset deals with other operators such as Shell and BP are relevant to its strategy 3. It also works alongside partners and operators of shared assets, such as Beacon Offshore Energy and Navitas Petroleum, which are active in the same area 3.
Competitive position depends on the ability to acquire deepwater assets at acceptable cost, sustain production and manage decommissioning obligations. Talos emphasizes growth through organic projects and selective acquisitions, which places it in competition for assets with other offshore producers 13.
- Shell
Company from which Talos announced the acquisition of deepwater assets in the Gulf of America, where BP held a preferential right 3.
- BP
Held a preferential right over the deepwater assets sold by Shell and elected not to exercise it 3.
- Beacon Offshore Energy
Operator of the Monument project, in which Talos holds a minority working interest 3.
- Navitas Petroleum
Non-operated partner in the Monument project alongside Talos and the operator 3.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Show HN: Talos – An AI agent with a permission kernel between model and shellHacker News · 28 Aug 2026 · EN
- Show HN: Talos – Open-source WASM interpreter for LeanHacker News · 18 Jun 2026 · EN
The latest news item in our archive is from 28 Aug 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report03 Nov 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report24 Sept 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report22 Sept 2026Acquisition or disposition of assets · Regulation FD disclosure · Other events · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report04 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report27 Jul 2026Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Current report13 Jul 2026Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Current report02 Jul 2026Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report01 Jul 2026Regulation FD disclosure · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Talos Energy Inc. · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Talos Energy Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Talos Energy Inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.