Talos Energy

TALO Q2 2025 Earnings

Reported Aug 6, 2025 at 5:26 PM ET · SEC Source

Q2 25 EPS

$-0.27

BEAT +4.05%

Est. $-0.28

Q2 25 Revenue

$424.7M

MISS 3.38%

Est. $439.6M

vs S&P Since Q2 25

+57.0%

BEATING MARKET

TALO +72.3% vs S&P +15.3%

Market Reaction

Did TALO Beat Earnings? Q2 2025 Results

Talos Energy delivered a mixed but strategically eventful second quarter, narrowly beating loss expectations while falling short on revenue. The offshore E&P company posted an adjusted loss of $0.27 per diluted share, edging past the $0.28 consensus … Read more Talos Energy delivered a mixed but strategically eventful second quarter, narrowly beating loss expectations while falling short on revenue. The offshore E&P company posted an adjusted loss of $0.27 per diluted share, edging past the $0.28 consensus estimate by 4.05%, though revenue of $424.72 million trailed the $439.59 million consensus by 3.38% and slid 22.7% year-over-year, weighed down by sharply lower realized oil prices averaging $64.08 per barrel compared to Q2 2024 levels. A $223.88 million non-cash ceiling test impairment charge drove a GAAP net loss of $185.94 million for the quarter. Beneath those headline figures, however, Talos generated $294.25 million in adjusted EBITDA and $98.53 million in adjusted free cash flow, while production held steady at 93.3 MBoe/d. The company also announced successful results at its high-impact Daenerys exploration prospect, lending momentum to its repositioning as a pure-play offshore E&P. Full-year 2025 guidance was revised favorably, with production targeted at 91.0 to 95.0 MBoe/d and capital expenditures trimmed to $490 to $530 million.

Key Takeaways

  • First production from Katmai West #2 and Sunspear wells during Q2 2025
  • Deepwater production of 83.4 MBoe/d comprising 89% of total output
  • Hedge positions covering over 38% of H2 2025 expected oil production at weighted average floor of approximately $71.50/Bbl
  • Adjusted EBITDA and Adjusted Free Cash Flow exceeded consensus estimates
  • $223.9 million non-cash ceiling test impairment charge due to lower SEC-defined pricing
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TALO YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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TALO Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“We continued to deliver on our commitments this quarter, with Adjusted EBITDA and Adjusted Free Cash Flow exceeding consensus estimates. This strong performance enabled us to repurchase 3.8 million shares for approximately $33 million, reflecting our continued commitment to returning capital to shareholders while also increasing our cash position to $357 million. Operationally, we reached several key milestones this quarter, including first production from our Katmai West #2 and Sunspear wells, the resumption of drilling at the high-impact Daenerys prospect, and continued advancement of our Monument development. We exited the second quarter with a solid financial foundation, including a leverage ratio of approximately 0.7x and total liquidity of approximately $1.0 billion.”

— Paul Goodfellow, Q2 2025 Earnings Press Release