Talos Energy, Inc. (TALO)
NYSEEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
$16.84-2.60%
Close 2026-09-04 · 1-day change
NYSEEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
QuarterlyIQ Insights · TALO
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within energy on a research-validated quality screen. As of 2026-09-04.
The screen ranks TALO against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Energy names rated weak grew net income 60% of the time over the next year (vs 55% for the rest of the cohort, n=1735).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue acquiring deepwater assets and farm-in agreements to build a long-lived, scaled portfolio with exploration upside.
Stated as a priority in 4 quarters including 2026-Q2, 2026-Q1, 2025-Q4, and a July 2026 press release. Talos announced acquisitions adding approximately 23 MMBoe proved reserves and 10 MMBoe probable reserves from Gulf of America assets, plus a farm-in with estimated 200 MMBoe recoverable resource in Block 29. These transactions extend resource life and support long-term growth. The trajectory is delivering with multiple announced and closed acquisitions.
“Announced acquisition of Gulf of America deepwater oil assets from Shell and strategic development farm-in with Repsol in offshore Mexico Block 29.”
“Closed previously announced Zama transaction and awarded 11 new leases at Gulf of America Lease Sale.”
“Announced discovery at Daenerys exploration prospect and strategy to build a long-lived, scalable portfolio.”
Focus on increasing production volumes, optimizing well performance, and advancing development projects on schedule.
Stated in 4 quarters including 2026-Q2, 2026-Q1, 2025-Q4, and 2025-Q3. Production increased from 88.8 MBoe/d in 2026-Q1 to 93.7 MBoe/d in 2026-Q2, exceeding guidance. Monument development is on track for first oil by year-end 2026 with expected 20-30 MBoe/d gross. Management's focus on operational growth and efficiency is delivering tangible production gains and project progress.
“Produced 68.6 MBo/d oil and 93.7 MBoe/d exceeding guidance; Monument drilling progressing with first oil expected by year-end 2026.”
Continue returning capital to shareholders through share repurchases under a disciplined capital allocation framework.
Stated in 3 quarters including 2026-Q2, 2026-Q1, and 2025-Q4. Talos repurchased approximately $135 million of shares since mid-2025, reducing share count by about 7%. The Board increased repurchase authorization to $200 million by 2026-Q2. Although no repurchases occurred in 2026-Q2 due to blackout, the program remains active and aligned with capital allocation priorities, showing ongoing delivery.
Maintain disciplined capital spending with full-year 2026 capex guidance between $500 million and $550 million.
Stated in 3 quarters including 2025-Q4, 2026-Q1, and 2026-Q2. Capital expenditures were $118.9 million in 2026-Q1 and $112.5 million in 2026-Q2. Full-year 2026 capex guidance remains disciplined at $500 to $550 million, excluding acquisitions. The trajectory shows consistent spending within the guided range, reflecting management's control over capital allocation.
Maintain financial flexibility and leverage discipline while issuing new debt and increasing credit facilities.
Stated in 3 quarters including 2025-Q4, 2026-Q1, and 2026-Q2. Talos issued $800 million notes due 2034, redeemed $625 million notes due 2029, and increased borrowing base from $700 million to $850 million. Net Debt to LTM Adjusted EBITDA improved from 0.8x in 2026-Q1 to 0.5x in 2026-Q2, indicating improved leverage and financial flexibility. Management is delivering on capital structure management priorities.
Over the trailing year it converted -2.44x of net income into operating cash flow.
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
26 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Energy names rated volatile grew net income 53% of the time over the next year (vs 58% for the rest of the cohort, n=640).
Not investment advice. As of 2026-09-04.
“Produced 63.8 MBo/d oil and 88.8 MBoe/d exceeding guidance; Cardona well performing at high-end expectations.”
“Produced 64.9 MBo/d oil and 89.2 MBoe/d; record throughput at Tarantula Facility of 38 MBoe/d.”
“Achieved greater than 40% of Optimal Performance Plan target; on track to fully achieve by year-end 2026.”
“No share repurchases in Q2 2026 due to blackout period; Board authorized increase in repurchase authorization to $200 million.”
“Repurchased approximately 2.7 million shares for $38.2 million; total repurchases since mid-2025 approximately $135 million.”
“Repurchased approximately 1.5 million shares for $16.4 million; total 2025 repurchases $119.1 million reducing shares by 7%.”
“Capital expenditures for Q2 2026 were $112.5 million; full-year 2026 guidance remains $500 to $550 million.”
“Capital expenditures for Q1 2026 were $118.9 million; full-year 2026 capex guidance reiterated at $500 to $550 million.”
“Full-year 2025 capital expenditures were $498.6 million; 2026 guidance set at $500 to $550 million.”
“Issued $800 million of 8.000% notes due 2034; redeemed $625 million of 9.000% notes due 2029; borrowing base increased to $850 million.”
“Entered into Amended and Restated Credit Agreement reaffirming $700 million borrowing base and extending maturity to 2030.”
“Extended undrawn credit facility to 2030 with $700 million borrowing base; net debt to LTM adjusted EBITDA was 0.7x.”