Start here if you're new
what it is
Talos drills for oil and gas in the Gulf of Mexico and offshore Mexico, with a side bet on carbon storage.
how it gets paid
Last year Talos Energy made $1.8B in revenue. Oil sales was the main engine at $1.08B, or 60% of sales.
why growth slowed
Revenue fell 9.8% last year. Latest-quarter revenue jumped 208% vs. prior year, yet EDGAR still showed EPS at -$1.65 for the quarter.
what just happened
The quarter delivered $1.4B of revenue, but EPS stayed in the red and the year still ended with a loss.
At a glance
C++ balance sheet — some cracks in the foundation
5/100 earnings predictability — expect surprises
0.4% return on capital — nothing to write home about
-$0.44 fy2024 eps est
$2B fy2024 rev est
xvary composite: 47/100 — below average
What they do
Talos drills for oil and gas in the Gulf of Mexico and offshore Mexico, with a side bet on carbon storage.
Talos wins where smaller drillers struggle: offshore projects are expensive, slow, and unforgiving. You need technical depth, not vibes. The company has 700 employees and operates as one of the Gulf of Mexico’s larger public independents, which helps it buy, drill, and run assets that are too complex for lighter-capital players.
How they make money
$1.8B
annual revenue · their business grew -9.8% last year
Oil sales
$1.08B
Natural gas sales
$0.40B
NGL sales
$0.22B
Carbon capture and other
$0.10B
The products that matter
offshore oil and gas production
U.S. Gulf of Mexico Assets
$1.78B revenue base · 85–90 MBOE/day guided for 2026
This is the business. Management's 85–90 MBOE/day outlook sets the near-term ceiling. In human-speak: if output stays flat, the stock needs oil prices or cleaner costs to do the heavy lifting.
core cash engine
natural gas and NGL sales
Gas + NGL Revenue
$0.4B combined · 21.3% of revenue
Gas and NGLs add up to about $0.4B, versus $1.4B from oil. Helpful, yes. Diversified, no. You are still mostly underwriting crude.
secondary stream
offshore development option
Zama Project
future growth option · current role reduced
Zama matters because Talos needs future barrels. The snapshot data here is thin, and Talos's role is described as reduced. That makes this optional upside, not something you should base today's thesis on.
uncertain upside
Key numbers
-$0.44
fy2024 eps est
$2B
fy2024 rev est
n/a
trailing p/e
n/a
dividend yield
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 2 — safer than 80% of stocks
- price stability 15 / 100
- long-term debt $1.3B (36% of capital)
C++ — risk rank looks solid but balance sheet grade needs watching.
Total return vs. market
Return history isn't available for TALO right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter delivered $1.4B of revenue, but EPS stayed in the red and the year still ended with a loss.
Latest-quarter revenue jumped 208% vs. prior year, yet EDGAR still showed EPS at -$1.65 for the quarter. Contrast that with full-year revenue of $1.8B, down 9.8% vs. prior year, and you get the real story: one loud quarter did not fix the year.
$1.4B
revenue
$1.65
eps
+208%
vs. last year revenue growth
the number that mattered
The number that mattered was the full-year -31.5% operating margin, because big revenue is useless when the business still loses money running itself.
source: company earnings report, 2026
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What could go wrong
Talos does not need a dramatic failure to disappoint you. It just needs the 85–90 MBOE/day production guide to land near the low end while the $500–$550M spending plan stays fully intact.
high
production stalls while spending stays high
Talos plans to spend $500–$550M in 2026 against guidance for 85–90 MBOE/day. If output does not improve from here, you are funding maintenance more than growth.
Lower volumes would pressure revenue, cash flow, and the case that this spending is building future value rather than treading water.
med
oil prices do the work the business is not doing yet
Oil sales are $1.4B, or 78.7% of revenue. That concentration means commodity prices can rescue results fast — and break them just as fast.
A weaker crude tape would hit the largest revenue line and make the -27.8% margin harder to repair.
med
the debt load looks fine until ebitda shrinks
Net debt is $887.2M and long-term debt is $1.3B, equal to 36% of capital. Net debt to EBITDA is 0.7x now, but EBITDA is only comforting while operating earnings hold up.
If prices or output weaken, financing flexibility gets tighter right when the business still needs funding for its drilling plan.
med
future growth beyond the core assets is thin in this snapshot
Zama is presented as a future growth project, but this page also says Talos's role has been reduced. We are not going to manufacture certainty from a thin data field.
If the core Gulf assets only hold flat and Zama contributes less than hoped, the recovery path gets narrower.
Here's the catch: Talos needs three things at once — steady barrels, spending discipline, and a decent oil tape. One miss is survivable. Two misses rewrite the story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
production versus the 85–90 MBOE/day guide
This is the main scoreboard. If quarterly output keeps landing near the low end, the 2026 case shifts from recovery to maintenance.
calendar
Q1 2026 earnings report
Expected on or around May 4, 2026. You want spending, production, and realized prices moving in the same direction for once.
risk
capital spend versus the $500–$550M plan
If capex runs above budget while volumes stay soft, the balance-sheet conversation gets harder faster than the 0.7x debt ratio suggests.
trend
oil price support
With oil at 78.7% of revenue, you do not need a PhD in energy markets to know what matters. If crude weakens, the earnings-repair math gets ugly fast.
Analyst rankings
earnings predictability
5 / 100
This score sits near the bottom of the scale. In human-speak, analysts do not trust the next few quarters to behave nicely.
risk rank
2
The system calls it safer than 80% of stocks. The quiet part: that says more about solvency today than about how calm the equity will feel if oil prices turn.
source: institutional data
Institutional activity
institutional ownership data for TALO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$11
current price
n/a
target midpoint · n/a from current
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