$TALO

Talos Energy (TALO) reported record adjusted free cash flow of about $232 million and adjusted EBITDA near $402 million in Q2, with oil production averaging ~69,000 bpd and total output ~94,000 boe/d, ahead of guidance. Management raised full-year stand-alone production guidance to 64,000-68,000 bpd and issued $800 million in senior notes; growth depends on Gulf of America closing and 2026-2027 project timelines.

Seadrill said its rigs and drillships secured new contracts and extensions totaling about $200M. The West Vela drillship won a one-year Talos Energy deal worth about $161M, starting June 2027. Sevan Louisiana got a 45-day extension with Walter Oil & Gas, and West Capella extended with PTTEP for about $26M. Seadrill backlog is about $2.9B as of Aug 10, 2026.

Talos Energy’s Q2 2026 earnings call transcript says oil production averaged about 69,000 bpd and total production about 94,000 boe/d, both above guidance. The company reported adjusted EBITDA of about $402 million and record adjusted free cash flow of about $232 million. Talos also discussed increased 2026 production guidance and plans to close a Gulf of America bolt-on later in Q3.

Stocks rose after Brent rebounded from below $80 to the mid-$80s amid renewed Strait of Hormuz supply risk. Iran’s Parliament reviewed a bill to permanently ban hostile vessels and impose cargo fines, while Kpler data showed Hormuz transit down about 33%. Oil-linked E&P and services shares including SM, TDW, PTEN, BKV, and TALO jumped.

Talos Energy agreed to acquire a 50% working interest in Repsol-operated offshore Mexico Block 29, which Talos says has more than 200 MMboe estimated gross recoverable resources. Talos will pay $30 million contingent on FID, provide up to $20 million cash carry for an exploration well, and reimburse some pre-closing costs. FID is planned for 2027, subject to SENER and antitrust approvals.

Talos Energy said its Q2 outlook excludes its pending Gulf of America bolt-on acquisition and the impact of a non-core gas-weighted shelf divestment. For Q3, it expects 61,000 to 65,000 bpd oil and 81,000 to 85,000 BOE/d. Cash was about $578M, liquidity $1.2B, leverage 0.5x. Talos issued $800M 8% notes due 2034 to redeem $625M 9% notes due 2029 and fund the deal, and expects updated guidance after closing later in Q3.

Talos Energy reported Q2 2026 revenue of $664.81M and net income of $149.67M, with average net daily production of 93.7 MBoe/d, and raised 2026 production guidance. The company also filed a $77.06M shelf registration for 5.4M shares tied to an ESOP and said it completed a multi-year buyback of 22,676,655 shares.

Talos Energy said it agreed to take an 80% operated interest in an offshore Honduras exploration block, with CaribX holding 20%, per Talos’ quarterly update. Talos has assumed operatorship for 45% of its working interest; the remaining 35% depends on Honduras’ energy secretariat approval within three months. Talos also advanced Gulf of Mexico appraisal and Monument development, targeting 20,000-30,000 boe/d startup by year-end.

Enverus Intelligence Research said U.S. upstream M&A slowed in 2Q 2026 to $9.1 billion, down 76% quarter on quarter, citing crude volatility. Over 40% of deal value came from the BLM New Mexico lease sale, with receipts over $4 billion. Top deals included Devon and BLM ($2.6B) and Shell with Talos/Ridgewood ($1.7B).

Talos Energy reported strong earnings and production and said it is moving toward additional US Gulf output. The company also highlighted potential upside from new ventures in Mexico and Honduras, including an entry into Honduras, according to its statements.