#United States #Houston #Talos Energy #Gulf of America #offshore EP

Talos Energy's Fourth Quarter and Full-Year Results for 2025

On February 24, 2026, Talos Energy Inc. (NYSE: TALO) disclosed its operational and financial results for both the fourth quarter and the full year ending December 31, 2025. This report outlines the company's achievements and provides guidance for the upcoming year.

Fourth Quarter Highlights

In the fourth quarter of 2025, Talos achieved a production rate of 64.9 thousand barrels of oil per day (MBo/d) and a total of 89.2 thousand barrels of oil equivalent per day (MBoe/d). The company reported a net cash flow from operating activities amounting to $201.8 million. Adjusted Free Cash Flow stood at $21.3 million, with approximately 1.5 million shares repurchased at a total cost of $16.4 million. However, the company recorded a net loss of $202.6 million, influenced by $170.4 million in non-cash impairment charges associated with ceiling tests. Adjusted EBITDA for the quarter was reported at $240.1 million, with capital expenditures totaling $150.4 million.

Notable operational achievements included record throughput at the Tarantula Facility of 38 MBo/d, which was reached through improvements in operational efficiency. The successful drilling and completion of the Cardona well also came in under budget and ahead of schedule, marking a strong end to the year.

Full-Year Overview for 2025

For the entire year, Talos's production was recorded at 65.9 MBo/d and 94.6 MBoe/d. The net cash provided by operating activities totaled $935.8 million, and Adjusted Free Cash Flow reached $417.7 million. The company repurchased around 12.6 million shares for approximately $119.1 million during 2025. Despite these positive cash flow results, Talos reported a net loss of $494.3 million due in part to a significant non-cash impairment charge of $454.5 million. Adjusted EBITDA for the year was a substantial $1,198.6 million.

Talos further strengthened its balance sheet, closing the year with $362.8 million in cash, and an extended undrawn credit facility. Impressively, the company achieved zero incidents of serious injuries or fatalities throughout 2025, reflecting its commitment to safety.

Strategic Developments

During 2025, Talos refined its corporate strategy to position itself as a leading offshore exploration and production company. This strategy focuses on enhancing production efficiency, profitability, and developing a diverse portfolio. The leadership team was strengthened, and significant improvements in free cash flow were realized. Talos aims to reach a target of $100 million in free cash flow enhancements by 2026, supported by several operational milestones achieved in the previous year.

Exploration and Future Prospects

In addition to the financial highlights, Talos announced an exciting discovery at the Daenerys exploration prospect, with plans to drill an appraisal well in the second quarter of 2026. The company also participated in the Gulf of America Lease Sale, successfully bidding on 11 new blocks, which will enhance its development portfolio.

Going forward, Talos Energy is set to prioritize high-margin oil production for 2026, with capital expenditure expected to range from $500 million to $550 million. Production forecasts for the year are estimated between 62 and 66 MBo/d and between 85 and 90 MBoe/d.

In summary, 2025 was a transformative year for Talos Energy, laying a strong foundation for future growth and operational success. The company looks ahead to continued investments and execution under its refined strategic framework, determined to enhance its market position while delivering value to shareholders.