Talos beats revenue estimates on production outperformance

Overview

• Talos Q3 revenue beats analyst expectations, reaching $450 mln

• Adjusted net loss for Q3 beats estimates, despite overall net loss

• Company repurchased 5 mln shares for $48 mln, returning capital to shareholders

Outlook

• Talos revises full-year 2025 production guidance to 94.0-97.0 MBoe/d

• Company expects 2025 oil production to be 69% of total production

• Talos projects 2025 capital expenditures between $480 mln and $520 mln

Result Drivers

• PRODUCTION OUTPERFORMANCE - Absence of storm activity and strong asset performance led to production exceeding expectations

• COST SAVINGS - Surpassed year-end target with over $40 mln in free cash flow enhancements through Optimal Performance Plan

• EXPLORATION SUCCESS - Discovery at Daenerys prospect enhances future growth potential

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Talos Energy Inc is $12.00, about 20.3% above its November 4 closing price of $9.56

Press Release: ID:nPn89LrMTa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)