Talos Energy's Q4 performance falls short of expectations, stock price drops 4%

LootboxPhobia · 2026-02-25T10:26:29+00:00

Talos Energy reports Q4 results, with an adjusted loss of $0.44 per share and revenue of $392.2 million, both below expectations. The daily average production was 89,200 barrels of oil equivalent, with a net loss of $202.6 million. Looking ahead to 2026, the company expects daily average production to decline to 85,000-90,000 barrels, with capital expenditures between $500 million and $550 million. The company maintains a strong cash position, and its future growth potential is highly regarded.

LootboxPhobia

2026-02-25 10:26:29

Abstract generation in progress

Houston - Talos Energy Inc. (NYSE:TALO) reported fourth-quarter results that missed analyst expectations, with adjusted earnings per share of -$0.44, below the market forecast of -$0.32. Revenue was $392.2 million, down 11% from the analyst estimate of $439.5 million.

The company’s daily production for the quarter averaged 89,200 barrels of oil equivalent, with an adjusted EBITDA of $240.1 million. Revenue declined compared to the same period last year, mainly due to lower realized oil prices, which were $58.00 per barrel compared to WTI crude oil at $59.06. The company recorded a net loss of $202.6 million, including $170.4 million in non-cash impairment charges from ceiling tests, primarily due to falling commodity prices. Following the earnings release, the stock fell 4.8%.

For the full fiscal year 2025, Talos’s average daily production was 94,600 barrels of oil equivalent, generating $417.7 million in adjusted free cash flow. The company returned $119.1 million to shareholders through share buybacks, approximately 29% of annual free cash flow.

Looking ahead to 2026, Talos issued guidance expecting average daily production of 85,000 to 90,000 barrels of oil equivalent, with crude oil production estimated at 62,000 to 66,000 barrels per day. The median of 87,500 barrels per day represents a decrease from 94,600 barrels per day in 2025. Production for the first quarter of 2026 is expected to be between 84,000 and 88,000 barrels of oil equivalent per day. Capital expenditures are projected to be between $500 million and $550 million.

President and CEO Paul Goodfellow stated, “2025 marks the beginning of our transformation — laying the foundation for the future. We achieved over $70 million in free cash flow enhancement, keeping us on track to reach our $100 million target in 2026.”

As of the end of 2025, the company held $362.8 million in cash, with unused credit lines, and net debt to adjusted EBITDA ratio of 0.7x.

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