Talos Energy (NYSE:TALO) Shares Gap Down After Earnings Miss

Shares of Talos Energy Inc. (NYSE:TALO) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $13.13, but opened at $11.56. Talos Energy shares last traded at $11.5320, with a volume of 1,044,297 shares changing hands.

The company reported ($0.44) earnings per share for the quarter, missing the consensus estimate of ($0.27) by ($0.17). Talos Energy had a negative net margin of 27.77% and a negative return on equity of 6.35%. The business had revenue of $392.24 million for the quarter, compared to analysts’ expectations of $431.22 million. During the same quarter last year, the business posted $0.08 earnings per share. The business’s revenue was down 19.2% compared to the same quarter last year.

Key Talos Energy News

Here are the key news stories impacting Talos Energy this week:

• Positive Sentiment: Management unveiled a 2026 capital program of roughly $500M–$550M aimed at expanding production and the company’s portfolio, signaling continued reinvestment and growth emphasis that could support higher future volumes and reserves. Read More.
• Neutral Sentiment: Talos published its full Q4 and FY2025 results along with year‑end reserves and 2026 operational/financial guidance; the release and slide deck provide management’s roadmap but contain both constructive long‑term items and short‑term cautions (see company PR and call transcript for details). Read More.
• Neutral Sentiment: Management’s earnings call and transcripts (Seeking Alpha / Yahoo Finance summaries) provide color on execution, capital allocation and reserve assumptions — useful for assessing whether the capex plan and guidance are achievable. Investors should review the call slides for production and cost assumptions. Read More.
• Negative Sentiment: Q4 results missed expectations: EPS of ($0.44) vs. consensus ($0.27) and revenue $392.2M vs. $431.2M expected; revenue fell ~19% y/y and margins/ROE were negative — these operational and profitability misses pressured the share price. Read More.
• Negative Sentiment: Operational headwinds: reports indicate a pause on at least one Gulf of Mexico well, which may weigh on near‑term volumes and cash flow if drilling timetables slip. Read More.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. KeyCorp increased their target price on Talos Energy from $12.00 to $13.50 and gave the company an “overweight” rating in a report on Friday, December 5th. Mizuho upped their price objective on Talos Energy from $11.00 to $14.00 and gave the company a “neutral” rating in a research report on Friday, December 12th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Talos Energy in a research note on Monday, December 29th. Citigroup lifted their price objective on Talos Energy from $12.00 to $14.00 and gave the stock a “buy” rating in a research report on Friday, January 23rd. Finally, Wall Street Zen upgraded shares of Talos Energy from a “sell” rating to a “hold” rating in a report on Saturday, February 14th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $13.50.

Institutional Trading of Talos Energy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Virtus Fixed Income Advisers LLC purchased a new position in shares of Talos Energy during the 2nd quarter worth about $25,000. Larson Financial Group LLC raised its stake in Talos Energy by 142.9% during the third quarter. Larson Financial Group LLC now owns 3,301 shares of the company’s stock worth $32,000 after purchasing an additional 1,942 shares during the period. Smartleaf Asset Management LLC boosted its holdings in shares of Talos Energy by 134.4% in the 2nd quarter. Smartleaf Asset Management LLC now owns 3,703 shares of the company’s stock valued at $32,000 after purchasing an additional 2,123 shares during the last quarter. Quarry LP purchased a new stake in shares of Talos Energy during the 3rd quarter valued at $36,000. Finally, CWM LLC increased its holdings in shares of Talos Energy by 186.3% during the 2nd quarter. CWM LLC now owns 6,027 shares of the company’s stock worth $51,000 after buying an additional 3,922 shares during the last quarter. Hedge funds and other institutional investors own 89.35% of the company’s stock.

Talos Energy Stock Down 13.3%

The firm has a market capitalization of $1.94 billion, a PE ratio of -4.01 and a beta of 0.58. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.51. The firm has a 50-day moving average of $11.77 and a two-hundred day moving average of $10.60.

Talos Energy Company Profile

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.