Talos Energy (TALO) Q3 2026 earnings summary

Executive summary

• Q3 production averaged 91.5 MBoe/d; adjusted EBITDA was $406.3M and adjusted free cash flow was $186.3M.

• Closed the Gulf of America deepwater acquisition and raised FY26 production guidance, reflecting the acquisition, shelf divestment and Hurricane Isaias impacts.

Financial highlights

• Q3 revenue rose to $596.0M from $450.1M YoY; adjusted EBITDA increased to $406.3M from $301.2M.

• Net loss attributable to shareholders was $81.2M, or $0.49 per diluted share; adjusted net income was $99.3M, or $0.58 per diluted share.

• Net cash from operating activities was $325.8M; capital expenditures were $127.9M, excluding plugging and abandonment and settled decommissioning obligations.

• Repurchased 1.4M shares for $23.6M in Q3; $61.8M was returned to shareholders through the first nine months of 2026.

Outlook and guidance

• FY26 production guidance increased to 92.5–94.5 MBoe/d, including oil guidance of 68–70 MBbl/d; Hurricane Isaias is expected to reduce Q4 output by ~7 MBoe/d.

• FY26 guidance includes $475–525M of capital expenditures and $135–145M of plugging, abandonment and decommissioning obligations.

• FY26 cash operating expenses and workovers are guided at $580–600M; G&A at $135–145M; interest expense at $155–165M.

• Monument first oil is expected in Q1 2027, with gross production projected at 20–30 MBoe/d; Brutus first oil is expected in phases from Q2–Q4 2027.

• Further Daenerys appraisal, including a sidetrack, is planned for 2027; a nearby exploration well is targeted for late 2027 or early 2028.