Talos Energy Announces Third Quarter 2026 Operational and Financial Results
TALOS ENERGY INC. (TALO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 T alos Energy Announces Third Quarter 2026 Operational and Financial Results Houston, Texas, November 3, 2026 – Talos Energy Inc. (“Talos” or the “Company”) (NYSE: TALO) today announced its operational and financial results for the three months ended September 30, 20
How this was made
The 30-second read
Why it matters
The updated guidance and strong cash generation are likely to attract buying interest, especially given the absence of storm downtime and the completion of a strategic acquisition.
Market read
First‑report 8‑K provides fresh guidance and acquisition details, offering a clear catalyst for immediate price movement.
What to watch
Potential regulatory or environmental delays in Honduras and Mexico projects could temper upside.
Talos reported third-quarter production above guidance, $ 595,991 (in thousands) of revenue, $ 406,067 (in thousands) of Adjusted EBITDA attributable to Talos Energy Inc. and raised full-year 2026 production guidance following its Gulf of America acquisition.
Production exceeded guidance, Adjusted EBITDA attributable to Talos Energy Inc. reached $ 406,067 (in thousands), Adjusted Free Cash Flow attributable to Talos Energy Inc. was $ 186,288 (in thousands), and full-year production guidance increased despite expected Hurricane Isaias impacts in the fourth quarter. The GAAP net loss reflected derivative fair value loss, a loss on debt extinguishment and income tax expense.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $596.0M | – | – |
| Oil revenue, three months ended September 30GAAP | $549.8M | – | – |
| Natural gas revenue, three months ended September 30GAAP | $32.14M | – | – |
| NGL revenue, three months ended September 30GAAP | $14.05M | – | – |
| Operating income (expense), three months ended September 30GAAP | $156.9M | – | – |
| Total operating expenses, three months ended September 30GAAP | $439.1M | – | – |
| Lease operating expense, three months ended September 30GAAP | $140.9M | – | – |
| Lease operating expenses per Boe, three months ended September 30GAAP | $ 16.74 per Boe | – | – |
| General and administrative expense, three months ended September 30GAAP | $43.14M | – | – |
| Adjusted General & Administrative Expenses, three months ended September 30non-GAAP | $37.82M | – | – |
| Adjusted General & Administrative Expenses per Boe, three months ended September 30non-GAAP | $ 4.50 per Boe | – | – |
| Net income (loss) attributable to Talos Energy Inc., three months ended September 30GAAP | −$81.24M | – | – |
| Net income (loss) attributable to Talos Energy Inc. per diluted share, three months ended September 30GAAP | $ (0.49 ) | – | – |
| Adjusted Net Income (Loss) attributable to Talos Energy Inc., three months ended September 30non-GAAP | $99.32M | – | – |
| Adjusted Net Income (Loss) attributable to Talos Energy Inc. per diluted share, three months ended September 30non-GAAP | $ 0.58 | – | – |
| Adjusted EBITDA attributable to Talos Energy Inc., three months ended September 30non-GAAP | $406.1M | – | – |
| Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges, three months ended September 30non-GAAP | $435.9M | – | – |
| Adjusted EBITDA attributable to Talos Energy Inc. per Boe, three months ended September 30non-GAAP | $ 48.26 | – | – |
| Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges per Boe, three months ended September 30non-GAAP | $ 51.80 | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $325.8M | – | – |
| Adjusted Free Cash Flow attributable to Talos Energy Inc. (before changes in working capital), three months ended September 30non-GAAP | $186.3M | – | – |
| Capital expenditures, three months ended September 30other | $127.9M | – | – |
| Plugging & Abandonment and Decommissioning Obligations Settled, three months ended September 30other | $49.95M | – | – |
| Total average net daily production, three months ended September 30other | 91.5 MBoe/d | – | – |
| Oil production, three months ended September 30other | 68.5 MBbl/d | – | – |
| Natural gas production, three months ended September 30other | 93.8 MMcf/d | – | – |
| NGL production, three months ended September 30other | 7.3 MBbl/d | – | – |
| Average realized oil price excluding hedges, three months ended September 30other | $ 87.19 | – | – |
| Average realized natural gas price excluding hedges, three months ended September 30other | $ 3.73 | – | – |
| Average realized NGL price excluding hedges, three months ended September 30other | $ 20.94 | – | – |
| Average realized price excluding hedges, three months ended September 30other | $ 70.82 per Boe | – | – |
| Total revenues, nine months ended September 30GAAP | $1.73B | – | – |
| Net income (loss) attributable to Talos Energy Inc., nine months ended September 30GAAP | −$187.7M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $800.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| OilThird-quarter oil production was 68.5 MBbl/d and average realized oil price excluding hedges was $ 87.19. | $549.8M | – | – |
| Natural gasThird-quarter natural gas production was 93.8 MMcf/d and average realized natural gas price excluding hedges was $ 3.73. | $32.14M | – | – |
| NGLThird-quarter NGL production was 7.3 MBbl/d and average realized NGL price excluding hedges was $ 20.94. | $14.05M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Revised FY 2026 outlook
- Operating expensesCash Operating Expenses and Workovers: $ 580 to $ 600; G&A: $ 135 to $ 145; Interest Expense: $ 155 to $ 165
- NoteAvg Daily Production (MBoe/d): 92.5 to 94.5
- NoteAvg Daily Production (MBo/d): 68.0 to 70.0
- NoteCapital Expenditures: $ 475 to $ 525
- NoteP&A, Decommissioning: $ 135 to $ 145
- NoteFourth quarter 2026 production is expected to be reduced by approximately 7 MBoe/d from Hurricane Isaias in early October.
Capital returns
- Repurchased 1.4 million shares for $23.6 million during the third quarter of 2026.
- Returned $61.8 million to shareholders through the first three quarters of 2026.
- Since announcing its current return of capital framework in the second quarter of 2025, Talos has returned approximately $160 million to shareholders through share repurchases, reducing shares outstanding by approximately 8%.
- Remaining share repurchase authorization as of September 30, 2026 was approximately $176 million.
- Management expects to allocate up to 50% of annual free cash flow to share repurchases.
What drove it
- Third-quarter oil and total equivalent production exceeded guidance due to strong base business performance, no storm-related downtime and contributions from acquired assets following the September 22, 2026 closing.
- Premium oil realizations of ~$1.60 above WTI supported Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges of $ 51.80 per Boe.
- Talos completed the deepwater asset acquisition from Shell on September 22, 2026 for a final net cash purchase price of $420 million.
- CPN achieved first oil in September 2026 and performed in line with expectations.
- Talos stated it delivered greater than 100% of its $100 million Optimal Performance Plan 2026 target ahead of schedule.
Concerns
- Talos recorded a GAAP net loss attributable to Talos Energy Inc. of $ (81,244 ) (in thousands), including a $ 120,576 (in thousands) derivative fair value loss, $ 37,389 (in thousands) loss on debt extinguishment and $ 47,111 (in thousands) income tax expense.
- Hurricane Isaias in early October is expected to reduce fourth-quarter 2026 production by approximately 7 MBoe/d.
- Revised FY 2026 P&A and decommissioning guidance increased to $ 135 to $ 145 from $ 100 to $ 130.
- Total debt at September 30, 2026 was $ 1,425,000 (in thousands).
- Monument first oil is now expected in the first quarter of 2027, while Brutus first oil is expected to be phased from the second quarter through the fourth quarter of 2027.
What to watch
- Integration and performance of the Gulf of America assets acquired on September 22, 2026.
- The fourth-quarter production impact from Hurricane Isaias and delivery against revised FY 2026 production guidance of 92.5 to 94.5 MBoe/d.
- Monument completion operations and expected first oil in the first quarter of 2027.
- The Brutus five-well development program, with first oil expected to be phased from the second quarter through the fourth quarter of 2027.
- Additional Daenerys appraisal activity expected in 2027 and the evaluation of tie-back and standalone development concepts.
- Progress toward a potential 2027 FID for Mexico Block 29 and the Honduras 3D seismic campaign.
Balance sheet and cash flow
- Cash and cash equivalents were $ 410,155 (in thousands) at September 30, 2026, versus $ 362,809 (in thousands) at December 31, 2025.
- Total debt was $ 1,425,000 (in thousands) at September 30, 2026; Net Debt was $ 1,014,845 (in thousands).
- The borrowing base was $850.0 million, with approximately $183.8 million in outstanding letters of credit; the credit facility was undrawn.
- Liquidity was approximately $1,076.3 million at quarter end.
- Net Debt to Combined LTM Adjusted EBITDA attributable to Talos Energy Inc. was 0.6x.
- Nine-month exploration, development and other capital expenditures were $ 394,351 (in thousands), versus $ 361,637 (in thousands).
- Nine-month payments for acquisitions, net of cash acquired were $ 440,325 (in thousands), versus $ 43,939 (in thousands).
- Nine-month purchase of treasury stock was $ 60,839 (in thousands), versus $ 103,003 (in thousands).
Analysis
Talos delivered third-quarter production of 91.5 MBoe/d, including 68.5 MBbl/d of oil, and stated that both oil and total equivalent production exceeded guidance. The company attributed the outperformance to strong base business results, no storm-related downtime and the contribution from acquired assets after the September 22 closing. Total revenues were $ 595,991 (in thousands), compared with $ 450,053 (in thousands) in the prior-year quarter. Oil supplied $ 549,800 (in thousands) of revenue, while natural gas and NGL contributed $ 32,139 (in thousands) and $ 14,052 (in thousands), respectively.
Operating income was $ 156,938 (in thousands), compared with operating expense of $ (86,181 ) (in thousands) in the prior-year quarter. Lease operating expense was $ 140,856 (in thousands), or $ 16.74 per Boe, and adjusted G&A was $ 37,824 (in thousands), or $ 4.50 per Boe. Reported net loss attributable to Talos Energy Inc. was $ (81,244 ) (in thousands), or $ (0.49 ) per diluted share. The release identifies a $ 120,576 (in thousands) derivative fair value loss, a $ 37,389 (in thousands) loss on debt extinguishment and $ 47,111 (in thousands) of income tax expense in the reconciliation to adjusted earnings. Adjusted Net Income attributable to Talos Energy Inc. was $ 99,319 (in thousands), or $ 0.58 per diluted share.
Cash generation remained substantial. Net cash provided by operating activities was $ 325,795 (in thousands), and Adjusted Free Cash Flow attributable to Talos Energy Inc. before changes in working capital was $ 186,288 (in thousands). Adjusted EBITDA attributable to Talos Energy Inc. reached $ 406,067 (in thousands), above $ 402,180 (in thousands) in the preceding quarter. Adjusted EBITDA attributable to Talos Energy Inc. excluding hedges was $ 435,906 (in thousands), while the corresponding margin was $ 51.80 per Boe. The company invested $ 127,883 (in thousands) in capital expenditures and reported $ 49,948 (in thousands) of plugging and abandonment and decommissioning obligations settled.
Capital allocation combined acquisition spending, debt financing and repurchases. Talos completed the Shell deepwater asset acquisition for a final net cash purchase price of $420 million, held $ 410,155 (in thousands) of cash and had $ 1,425,000 (in thousands) of total debt at September 30. The bank credit facility was undrawn, although approximately $183.8 million of letters of credit were outstanding. The company repurchased 1.4 million shares for $23.6 million in the quarter, and the remaining authorization was approximately $176 million. Net Debt to Combined LTM Adjusted EBITDA attributable to Talos Energy Inc. was 0.6x.
Talos raised its FY 2026 production outlook to 92.5 to 94.5 MBoe/d and 68.0 to 70.0 MBo/d, while lowering capital expenditure guidance to $ 475 to $ 525 from $ 500 to $ 550. The revised outlook incorporates the Gulf of America acquisition, a non-core shelf divestment and an expected approximately 7 MBoe/d fourth-quarter production reduction from Hurricane Isaias. P&A and decommissioning guidance increased to $ 135 to $ 145. Operationally, CPN reached first oil, Monument drilling continued with first oil expected in the first quarter of 2027, and the Brutus program expanded to five wells with first oil expected to be phased from the second quarter through the fourth quarter of 2027.
Management, verbatim
The third quarter demonstrated the strength of the business we are building. With the completion of our Gulf of America bolt-on acquisition, we have added high-quality, oil-weighted assets that increase free cash flow, improve margins and create additional infrastructure-led growth opportunities. Combined with strong performance from our base business, we are executing our strategy with greater scale, financial flexibility and a deeper portfolio of development and exploration opportunities to drive long-term value creation.
Paul Goodfellow, President and Chief Executive Officer of Talos
Not in the filing
stated, not guessed- Gross margin was not reported.
- Gross profit was not reported.
- GAAP free cash flow was not reported.
- Dividend amount was not reported.
- Revenue guidance was not reported.
- Gross margin guidance was not reported.
- Tax-rate guidance was not reported.
- A previous earnings release outlook section was not provided, so no comparison of actual results with prior guidance is available.
- Quarterly prior-year and prior-quarter comparisons were not reported for production, realized prices, lease operating expenses per Boe, adjusted G&A per Boe, capital expenditures, net cash provided by operating activities or Adjusted Free Cash Flow attributable to Talos Energy Inc.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Talos Energy disclosed Q3 2026 operational and financial results via an SEC Form 8‑K, including production numbers, cash flow, and a $420 M deepwater asset acquisition.
Ticker impact
Talos Energy filed an 8‑K reporting Q3 2026 results and updated full‑year guidance, raising production guidance to 69 MBo/d and 93.5 MBoe/d after a $420 M deepwater acquisition.
likely upward pressure as investors price in higher production and cash flow.
The updated guidance and acquisition signal stronger future earnings, which typically lift the stock on the day of release.
Market effects
Higher offshore E&P production outlook may benefit peer offshore oil producers.
Positive for U.S. energy sector and Gulf Coast equities.
Adds to broader oil supply optimism amid stable crude prices.
Counterpoint
If integration costs exceed expectations, the guidance raise may be overstated.
Key entities
- companyTalos Energy Inc.
U.S. offshore oil and gas producer reporting Q3 results and revised guidance.
- companyShell
Seller of the deepwater assets acquired by Talos.
