Companies /Energy

Talos Energy Inc

NYSE: TALO Oil & Gas E&p
$16.73
â–² $0.01 (+0.06%) today
Markets closed · 7:58am ET

Q4 2025 Earnings

Reported Feb 24, 2026, 6:28pm ET · SEC source
$-0.44
Miss −33.82%
EPS · est. $-0.33
$392.2M
Miss −8.63%
Revenue · est. $429.3M
+54.8%
Beating market
TALO vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%Feb 24Feb 25report 6:28pm ETearnings+0.9%−7.9%
−10%−5%0+5%Feb 24Feb 25earnings+0.9%−7.9%
TALO −7.9%S&P 500 +0.9%
−10%−5%0+5%Feb 24Feb 25report 6:28pm ETearnings+1.5%−7.9%
−10%−5%0+5%Feb 24Feb 25earnings+1.5%−7.9%
TALO −7.9%NASDAQ +1.5%
−12%−6%0+6%Feb 24Mar 4report 6:28pm ETearnings−0.2%+4.5%
−12%−6%0+6%Feb 24Mar 4earnings−0.2%+4.5%
TALO +4.5%S&P 500 −0.2%
−12%−6%0+6%Feb 24Mar 4report 6:28pm ETearnings+0.5%+4.5%
−12%−6%0+6%Feb 24Mar 4earnings+0.5%+4.5%
TALO +4.5%NASDAQ +0.5%
−13.71%
Day of report
+2.12%
Next session
+15.09%
One week
+46.25%
30 days

S&P 500 over the same 30 days: −8.52%.

Did TALO Beat Earnings? Q4 2025 Results

Talos Energy delivered a disappointing fourth quarter, missing Wall Street expectations on both the top and bottom lines as $170.40 million in non-cash ceiling test impairment charges weighed heavily on results. The Gulf of Mexico-focused producer posted an adjusted loss of $0.44 per diluted share, falling short of the $0.33 consensus estimate by 33.82%, while revenue of $392.24 million trailed forecasts by 8.63% and dropped 19.2% from $485.19 million in Q4 2024, pressured by weaker realized oil prices averaging $58.00 per barrel and production of 89.2 MBoe/d that was partly clipped by a subsurface safety valve failure at the Genovesa well. The results have prompted questions about the company's investment narrative, with analysts reassessing near-term prospects given the impairment-driven full-year GAAP net loss of $494.29 million. Looking ahead, Talos guided 2026 production at 85 to 90 MBoe/d with capital expenditures of $500 to $550 million, while a planned Daenerys appraisal well in Q2 2026 offers a potential exploration catalyst for investors watching the story closely.

Key Takeaways
  • Lower realized oil prices ($58.00/Bbl vs. higher year-ago levels) pressured revenue
  • Non-cash ceiling test impairment charge of $170.4 million in Q4 driven by lower trailing oil prices
  • Genovesa well shut-in due to SCSSV failure impacted Q4 production by approximately 3 MBoe/d
  • Record throughput at Tarantula Facility reaching 38 MBoe/d through debottlenecking
  • Optimal Performance Plan delivered $72 million in free cash flow enhancements, exceeding $25 million target

“2025 marked the start of our transformation – building the foundation for the future. In June, we introduced an enhanced corporate strategy designed to position Talos as the leading pure‑play offshore E&P company. Our strategy is built on three core pillars: driving continuous improvement across our business, growing production and profitability, and building a long‑lived, scalable portfolio, all supported by a disciplined capital allocation framework.”

Talos Energy CEO, on the earnings call

Forward Guidance & Outlook

For FY 2026, Talos guided production of 85–90 MBoe/d (62–66 MBo/d), with Q1 2026 production estimated at 84–88 MBoe/d (60–64 MBo/d). Capital expenditures are expected to range from $500–$550 million, with P&A expenditures of $100–$130 million. Approximately 40% of total capex is non-operated, largely driven by the Monument project. Approximately 10% of capex is allocated to exploration. Cash operating expenses and workovers are guided at $560–$590 million, G&A at $130–$140 million, and interest expense at $155–$165 million. The company targets $100 million in free cash flow enhancements through its Optimal Performance Plan in 2026. Management expects to allocate up to 50% of annual free cash flow to share repurchases. Key upcoming catalysts include the Daenerys appraisal well in Q2 2026, CPN first production in H2 2026, and Genovesa well restart in Q3 2026.

TALO YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$200.0M$400.0M$485.2M$392.2MRevenue
$0$200.0M$400.0MRevenue

TALO Revenue by Segment

Oil$346.3M
Natural Gas$36.0M
NGL$10.0M

Figures from SEC filings and company reports. Not investment advice.