Talos Energy, Inc. (TALO) Stock Price & How to Invest
Last updated July 2026
Short answer
Talos Energy (TALO) is a way to own a mid-cap, pure-play offshore oil and gas producer concentrated in the deepwater US Gulf of America (Gulf of Mexico) and offshore Mexico, an oil-weighted, high-margin but commodity-sensitive business whose stock swings with crude prices, project timing, and drilling results.
TALO stock price
As of 2026-07-14, Talos Energy, Inc. (TALO) last closed at $14.15, up 58.7% over the past year. Over the past 52 weeks it has traded between $7.79 and $16.59.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Talos Energy, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Talos Energy, Inc. (TALO) do?
Talos Energy is a technically driven independent exploration and production company focused almost entirely on offshore oil, with operations in the US Gulf of America (formerly the US Gulf of Mexico) and offshore Mexico. After acquiring QuarterNorth it became one of the larger operators in the basin, running a portfolio of deepwater and shelf assets that skew heavily to oil (production was about 72% oil and 80% liquids in early 2026). In 2024 the company sold its carbon capture and sequestration business to TotalEnergies, sharpening its identity as a pure-play upstream producer that prioritizes free cash flow and capital discipline over diversification.
The investment picture is a classic offshore E&P profile: high per-barrel margins and strong operating cash flow when oil prices cooperate, offset by heavy exposure to crude prices, non-cash reserve-value impairments when prices fall, and the timing risk of large deepwater developments. Talos generates top-decile EBITDA margins for the sector and carries a moderate net-debt-to-EBITDA ratio, but reported GAAP results have been volatile, swinging to large losses driven mainly by ceiling-test impairments and hedge mark-to-market moves. For investors, TALO is a cyclical, oil-levered name where returns hinge on crude prices, drilling and appraisal success, and delivering new projects like Monument and CPN on schedule.
What's driving Talos Energy, Inc. (TALO)?
1. Oil-weighted production and top-tier margins
Talos produced about 88.8 thousand barrels of oil equivalent per day in the first quarter of 2026, roughly 72% oil and 80% liquids, and guides full-year output to 85 to 90 MBoe/d. That oil weighting and the company's low-cost offshore position drive top-decile EBITDA margins for the sector. Cash generation is strong when crude prices hold, with about $293 million of adjusted EBITDA in the quarter.
2. Deepwater project pipeline
The 2026 program centers on offshore development and appraisal, including finishing completion operations at CPN with first production targeted for the third quarter of 2026 and drilling at Monument with first oil expected by late 2026. These projects are intended to sustain and grow production. Their timing and initial rates are meaningful swing factors for the coming years.
3. Free cash flow and balance-sheet discipline
Talos generated roughly $113 million of adjusted free cash flow before working-capital changes in the first quarter of 2026 and ended the period with net debt to trailing EBITDA near 0.8 times. Management has emphasized capital allocation and debt reduction since divesting the carbon capture business. Sustained free cash flow supports deleveraging and funding the drilling program from internal cash.
4. Scale in the Gulf of America basin
Following the QuarterNorth acquisition, Talos became one of the larger operators in the Gulf of America offshore basin, which gives it operated control over infrastructure, tie-back opportunities, and exploration acreage. Partnerships such as a Gulf exploration joint venture with Repsol extend its prospect inventory. Basin scale can lower unit costs and open lower-risk development options near existing facilities.
What are the risks to Talos Energy, Inc. (TALO)?
Talos is highly exposed to crude oil prices, and a sustained drop can compress cash flow and trigger large non-cash ceiling-test impairments, as seen with the $145 million impairment that drove a $256 million reported net loss in the first quarter of 2026. Offshore E&P carries operational, weather, and hurricane risk in the Gulf, plus the timing and cost uncertainty of deepwater drilling and appraisal, where a single well result or a shut-in (such as the temporary Genovesa shut-in) can move production and reserves. The company carries about $1.25 billion of debt, so leverage amplifies commodity swings, and hedging can create mark-to-market volatility in reported earnings. The stock has been volatile, trading well off its highs during 2026, and results depend heavily on delivering new projects on schedule.
How is Talos Energy, Inc. (TALO) valued? (approximate, JULY 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Talos Energy, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$1.8B
- Q1 2026 revenue: ~$472M (above forecast)
- Q1 2026 net loss: ~($256M), or ~($1.52)/sh (impairment-driven)
- Q1 2026 adjusted EBITDA: ~$293M
- Total debt / net debt: ~$1.25B / ~$864M (~0.8x LTM EBITDA)
- Market cap: ~$2.3B
Talos trades at a low market cap relative to revenue and reserves, typical for a leveraged offshore E&P where debt sits ahead of shareholders and commodity prices drive value. The large first-quarter 2026 GAAP net loss was mostly a non-cash ceiling-test impairment and hedge mark-to-market effect, while adjusted net loss was much smaller and cash flow stayed positive. The stock traded around $13.50 in early July 2026, off its 52-week high near $17, with analyst price targets clustered above the market price.
Who competes with Talos Energy, Inc. (TALO)?
Offshore Gulf-focused independents
Kosmos Energy (KOS), Murphy Oil (MUR), and W&T Offshore (WTI) are the closest peers, all independent E&P companies with significant offshore Gulf of America exposure. They compete for acreage, infrastructure tie-backs, and capital, and are the standard benchmarks for Talos on production mix, margins, and leverage.
Larger diversified and Gulf operators
Majors and large independents such as Chevron (CVX), Shell (SHEL), BP (BP), Occidental (OXY), and Ovintiv (OVV) operate sizable deepwater Gulf positions alongside broader portfolios. They set the pace on deepwater technology and can outspend smaller operators, shaping the competitive and partnership landscape Talos works within.
Broader US independent E&Ps
Onshore-focused producers like Gulfport Energy (GPOR) and other US shale independents compete for investor capital in the E&P sector even though their geology differs. Investors often weigh Talos's offshore, oil-weighted profile against lower-decline shale names when allocating within energy.
How to invest in Talos Energy, Inc. (TALO)
There are three common ways to get TALO exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so TALO sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where TALO fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on Talos Energy, Inc. (TALO)
TALO is a leveraged, oil-price-driven offshore E&P story where strong cash margins and a manageable debt load are set against reserve-value impairments, commodity volatility, and the execution risk of deepwater projects.
More on Talos Energy, Inc. (TALO)
Whether TALO is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is TALO a buy?, and where the stock could go from here in the TALO stock forecast.
For income investors, whether TALO pays a dividend and how the payout looks is covered in does TALO pay a dividend?
Build a basket around TALO with Walnut
Use Talos Energy, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Talos Energy do?
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Talos Energy is an independent oil and gas exploration and production company focused on offshore operations in the US Gulf of America (Gulf of Mexico) and offshore Mexico. Its output is heavily weighted to oil, and it operates deepwater and shelf assets as one of the larger operators in the basin.
Is TALO profitable?
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Results are volatile. Talos generates strong operating cash flow and adjusted EBITDA, about $293 million in the first quarter of 2026, but reported a large GAAP net loss of roughly $256 million that quarter driven mainly by a non-cash reserve impairment and hedge mark-to-market effects. Adjusted net loss was far smaller, near $11 million.
Why did Talos report such a big net loss in Q1 2026?
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The roughly $256 million net loss was mostly non-cash. It was driven by a $145 million ceiling-test impairment of oil and gas properties, an accounting write-down tied to commodity prices, plus hedge-related mark-to-market effects. Cash flow and adjusted EBITDA stayed positive during the quarter.
How much debt does Talos Energy have?
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As of the first quarter of 2026 Talos reported about $1.25 billion of total debt and roughly $864 million of net debt, with a net-debt-to-trailing-EBITDA ratio near 0.8 times. It ended the quarter with about $386 million of cash and roughly $989 million of liquidity.
What drives Talos Energy's stock price?
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The biggest factor is crude oil prices, since Talos is heavily oil-weighted. Production levels, deepwater project timing and drilling results, reserve impairments, hedging, and debt levels also move the shares. As a leveraged commodity producer, its stock tends to be more volatile than the broader market.
Did Talos sell its carbon capture business?
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Yes. In 2024 Talos sold its Talos Low Carbon Solutions carbon capture and sequestration subsidiary to TotalEnergies for about $148 million total. The divestiture left Talos as a pure-play offshore upstream oil and gas company focused on cash flow and capital discipline.
Does TALO pay a dividend?
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Talos Energy has prioritized funding its offshore drilling program and managing debt over returning cash through a regular dividend, so it has not paid a common dividend in recent years. Investors should confirm current capital-return policy directly in company filings before assuming any payout.
What are the main risks of owning TALO?
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Key risks include exposure to volatile oil prices, non-cash impairments when prices fall, the operational and timing risk of deepwater projects, hurricane and weather disruptions in the Gulf, and about $1.25 billion of debt that amplifies commodity swings. Reported earnings and the stock have been volatile.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Talos Energy, Inc.'s investor relations page or your broker before making investment decisions.