Talos Energy Inc. (TALO) AI Stock Analysis

Talos Energy Inc. operates as an independent exploration and production company focused on oil and natural gas properties in the United States Gulf of Mexico and offshore Mexico. Founded in 2011 and headquartered in Houston, Texas, the company maximizes production and optimizes reserves using advanced recovery technologies. As of December 31, 2021, Talos reported proved reserves of 161.59 million barrels of oil equivalent, comprising 107,764 thousand barrels of crude oil, 236,353 million cubic feet of natural gas, and 14,435 thousand barrels of natural gas liquids.

Talos Energy grew revenue from $1.24B in FY2021 to $1.97B in FY2024 before declining 9.8% to $1.78B in FY2025, reflecting a 5-year revenue CAGR of 25.3%. Operating margin weakened over that period from 30.1% in FY2021 to -5.9% in FY2025, driving net income to -$496.4M and EPS to -$0.86. However, performance rebounded in the trailing twelve months with revenue of $1.98B and an operating margin of 34.4%. For the latest quarter ended June 30, 2026, quarterly revenue grew 56.6% year-over-year, while quarterly earnings declined 38.1%.

As of June 30, 2026, Talos Energy held $577.6M in cash and short-term investments against total debt of $1.24B, resulting in net debt of $665.1M. Shareholders' equity stood at $2.03B with a debt-to-equity ratio of 0.61 and a current ratio of 1.61. For FY2025, operating cash flow reached $935.8M and free cash flow was $453.9M. Capital allocation in FY2025 included $481.9M in capital expenditures and $119.5M in share buybacks, alongside a 5-year share count change of 106.0%.

TALO trades at a forward P/E of 15.1x, above the 12.7x median of its US-listed Energy peers. Its EV/EBITDA multiple sits at 4.5x, well below the peer group median of 8.0x, while its price-to-sales ratio is 1.5x versus the peer median of 1.8x. Talos Energy has an enterprise value of $3.43B and a market cap of $2.97B. Over the trailing 1-year period, TALO shares returned 95.1%, substantially beating the S&P 500 (SPY) return of 16.8%, though its 5-year return of 41.7% trailed the S&P 500 return of 83.0%.

Wall Street coverage on TALO includes 6 Strong Buy, 1 Buy, and 3 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $21.22 implies 19.4% upside compared to the last close of $17.77. For the fiscal year ending December 31, 2026, analysts estimate revenue of $2.30B and EPS of $1.20, representing EPS growth of 242.9%. For the next fiscal year, 9 analysts project revenue of $2.36B and EPS of $1.49. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 3, 2026.

This page is an AI-written research summary of Talos Energy Inc. (TALO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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