TALO · Talos Energy Inc.

Talos Energy Inc. delivered strong operational execution in Q1 2026, with total production of 88.8 MBoe/d (72% oil) surpassing guidance, driven by the Cardona well initiating production early and performing at the high end, alongside robust base performance and facility uptime. Oil output hit 63.8 MBo/d at the upper end of expectations. Financially, Adjusted EBITDA reached $293.4 million on $472.3 million revenues, reflecting efficient operations with lease operating expenses at $16.14/Boe and adjusted G&A at $4.25/Boe. However, a $145.0 million non-cash ceiling test impairment from lower oil prices led to a GAAP net loss of $256.2 million ($1.52/share), contrasted by adjusted net loss of $11.3 million ($0.07/share). Cash generation was robust at $174.0 million from operations and $113.2 million adjusted free cash flow, enabling $38.2 million in share repurchases (2.7 million shares, 34% of free cash flow) and maintaining a fortified balance sheet with $386.4 million cash, undrawn $700 million credit facility (maturity 2030), and Net Debt/LTM Adjusted EBITDA of 0.8x. Key milestones included closing the Zama transaction for $83 million (partial upfront), awarding 11 Gulf of America leases, advancing CPN completions for Q3 start, Monument drilling underway for late 2026 first oil, and planning Daenerys appraisal in Q2. CEO Paul Goodfellow emphasized disciplined capital allocation amid volatility, with 40% progress toward Optimal Performance Plan and on track for full-year goals. Guidance remains unchanged: Q2 production 88-92 MBoe/d, FY2026 85-90 MBoe/d, Capex $500-550 million, underscoring confidence in the 2026 plan anchored by D&C momentum and deepwater excellence.