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Live Nasdaq Composite: Micron Lifts Market Boat Alongside Mixed Economic Signals
Talos Energy

TALO Q1 2026 Earnings

Reported May 5, 2026 at 6:57 PM ET · SEC Source

Q1 26 EPS

$-0.07

BEAT +34.82%

Est. $-0.11

Q1 26 Revenue

$472.3M

BEAT +5.45%

Est. $447.9M

vs S&P Since Q1 26

-14.6%

TRAILING MARKET

TALO -14.9% vs S&P -0.2%

Market Reaction

Did TALO Beat Earnings? Q1 2026 Results

Talos Energy delivered a cleaner-than-expected first quarter, posting an adjusted loss of $0.07 per diluted share against a consensus estimate of $0.11, a beat of nearly 35%, while revenue of $472.31 million topped forecasts by 5.45% despite falling … Read more Talos Energy delivered a cleaner-than-expected first quarter, posting an adjusted loss of $0.07 per diluted share against a consensus estimate of $0.11, a beat of nearly 35%, while revenue of $472.31 million topped forecasts by 5.45% despite falling 7.9% year over year as lower commodity prices weighed on realizations. The headline GAAP picture was far messier, with a net loss of $256.17 million driven by a $145.02 million non-cash ceiling test impairment triggered by weaker trailing oil prices and $173.55 million in mark-to-market derivative losses, yet investors largely looked through those charges, with the stock climbing roughly 9% following the report. The operational story provided the clearest rationale for optimism: production of 88.8 MBoe/d exceeded guidance, aided by the Cardona well performing at the high end of expectations. Adjusted EBITDA reached $293.21 million and free cash flow of $113.16 million funded $38.20 million in buybacks. Talos reiterated full-year production guidance of 85 to 90 MBoe/d and capital expenditures of $500 to $550 million, with Q2 output expected between 88 and 92 MBoe/d.

Key Takeaways

  • • Oil production at high-end and total equivalent production exceeding Q1 guidance
  • • Cardona well producing at high-end of expectations
  • • Strong base performance and facility uptime across deepwater operations
  • • Efficient drilling and completion performance across development program
  • • Low reinvestment rate contributing to strong free cash flow generation

TALO Forward Guidance & Outlook

Talos reiterated its full-year 2026 guidance: production of 85–90 MBoe/d (62–66 MBo/d), capital expenditures of $500–$550 million (excluding acquisitions), P&A expenditures of $100–$130 million, cash operating expenses and workovers of $560–$590 million, G&A of $130–$140 million, and interest expense of $155–$165 million. For Q2 2026, production is expected at 88–92 MBoe/d (63–67 MBo/d). CPN first production is expected in Q3 2026, Monument first oil by late 2026 at 20–30 MBoe/d gross, and a Daenerys appraisal well is planned for late Q2 2026. Management expects to allocate up to 50% of annual free cash flow to share repurchases under its capital allocation framework.

24/7 Wall St

TALO YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

TALO Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Amid significant macro volatility, Talos remains firmly focused on executing the 2026 plan that we outlined earlier this year, anchored by our disciplined capital allocation framework. We delivered strong first quarter results underpinned by comprehensive execution across the business – oil production at the high-end and total equivalent production exceeding guidance, efficient drilling and completion performance, strong free cash generation at a low reinvestment rate, and consistent with our track record we returned capital to shareholders through share repurchases. Over the last four quarters since announcing our return of capital framework, we've executed $135 million of share repurchases driving per share growth through a 7% reduction to our outstanding share count.”

— Paul Goodfellow, Q1 2026 Earnings Press Release

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