Talos Energy has announced its operational and financial results for the three and twelve months ended December 31, 2025. Talos also announced its year-end 2025 reserves and 2026 operational and financial guidance.
Fourth Quarter 2025 Highlights
- Produced 64.9 thousand barrels of oil per day ("MBo/d") and 89.2 thousand barrels of oil equivalent per day ("MBoe/d").
- Reported net cash provided by operating activities of $201.8 million.
- Generated Adjusted Free Cash Flow(1)(2) of $21.3 million.
- Repurchased approximately 1.5 million shares for $16.4 million.
- Recorded Net Loss(2) of $202.6 million, or $1.19 Net Loss(2) per diluted share which includes $170.4 million of non-cash ceiling test impairment charges, and Adjusted Net Loss(1)(2) of $76.5 million, or $0.44 Adjusted Net Loss per diluted share(1)(2).
- Generated Adjusted EBITDA(1)(2) of $240.1 million.
- Invested $150.4 million of capital expenditures, excluding plugging and abandonment and settled decommissioning obligations.
- Achieved record throughput at the Tarantula Facility of 38 Mboe/d by further debottlenecking efforts.
- Drilled and completed the Cardona well under budget and ahead of schedule.
- Named apparent high bidder on 11 blocks at the Gulf of America Lease Sale in December 2025.
Full-Year 2025 and Recent Highlights
- Produced 65.9 MBo/d and 94.6 MBoe/d.
- Reported net cash provided by operating activities of $935.8 million.
- Generated Adjusted Free Cash Flow(1)(2) of $417.7 million.
- Repurchased approximately 12.6 million shares for $119.1 million.
- Recorded Net Loss(2) of $494.3 million, or $2.82 Net Loss(2) per diluted share which includes $454.5 million of non-cash ceiling test impairment charges, and Adjusted Net Loss(1)(2) of $146.3 million, or $0.84 Adjusted Net Loss per diluted share(1)(2).
- Generated Adjusted EBITDA(1)(2) of $1,198.6 million.
- Invested $498.6 million of capital expenditures, excluding plugging and abandonment and settled decommissioning obligations.
- Strengthened balance sheet with $362.8 million of cash, an undrawn credit facility recently extended to 2030, a Net Debt to Last Twelve Months ("LTM") Adjusted EBITDA(1)(2) of 0.7x, as of December 31, 2025.
- Achieved zero serious injuries or fatalities (SIF) during 2025.
- Developed and launched new strategy to be a leading pure-play offshore E&P.
- Delivered $72 million of free cash flow enhancements exceeding the Optimal Performance Plan 2025 year-end goal.
- Announced discovery at Daenerys exploration prospect; appraisal well to be drilled later in second quarter of 2026.
- Year-end 2025 proved reserves of 174.7 million barrels of oil equivalent ("MMBoe") with a PV-10 value(1) of $3.2 billion.
'2025 marked the start of our transformation – building the foundation for the future,' said Paul Goodfellow, President and Chief Executive Officer of Talos. 'In June, we introduced an enhanced corporate strategy designed to position Talos as the leading pure-play offshore E&P company. Our strategy is built on three core pillars: driving continuous improvement across our business, growing production and profitability, and building a long-lived, scalable portfolio, all supported by a disciplined capital allocation framework. Since announcing this strategy, we strengthened our leadership team and we've been laser-focused on execution. In 2025, we realized more than $70 million in free cash flow enhancements, putting us on a strong trajectory toward achieving our $100 million target in 2026. We generated approximately $420 million in free cash flow, enabling us to return $120 million of capital to shareholders while strengthening our balance sheet. We delivered several key operational milestones, including bringing Sunspear and Katmai West #2 online and announcing an exciting discovery at Daenerys, which we plan to appraise in the second quarter of 2026. Our accomplishments in 2025 underscore the momentum we are building and reinforce our confidence in the path ahead. In 2026, we are looking forward to the opportunities to continue investing for the future and executing our strategy with discipline and focus.'
Footnotes:
(1) Please see 'Supplemental Non-GAAP Information' for details and reconciliations of GAAP to non-GAAP financial measures.
(2) Attributable to Talos Energy Inc.
RECENT DEVELOPMENTS AND OPERATIONS UPDATE
Operations Update:
Production Update: During the fourth quarter, Talos temporarily shut in production from the Genovesa well due to the failure of the surface-controlled subsurface safety valve (SCSSV) which impacted production by approximately 3 Mboe/d. Talos expects the Genovesa well to return to production in the third quarter of 2026 following completion of the planned workover.
Katmai: In mid-2025, gross processing capacity from the Talos-owned Tarantula facility was expanded to 35 Mboe/d to accommodate higher volumes following the success of the Katmai West #2 well. Most recently, additional debottlenecking efforts have boosted Tarantula's throughput to approximately 38 Mboe/d. Talos, as operator, holds a 50% working interest ("W.I."), and entities managed by Ridgewood Energy Corporation holds a 50% W.I.
Cardona: The Company successfully drilled and completed the Cardona well in late 2025, delivering the project under budget and ahead of schedule. Production commenced early 2026, with the well flowing to the Talos-owned Pompano facility. Talos, as operator, holds a 65% W.I., and entities managed by Ridgewood Energy Corporation holds a 35% W.I.
CPN: The Company recently successfully drilled the CPN well in the first quarter of 2026. CPN was delivered under budget and ahead of schedule, with first production from the well expected in the second half of 2026. Talos, as operator, holds 65% W.I., Walter Oil and Gas Corp. holds a 25% W.I., and HEQ holds a 10% W.I.
Zama: Harbour Energy plc was named operator of the Zama project offshore Mexico in December 2025. Under the agreement, Talos retains the right to appoint key personnel to the project team. The focus will shift to completing engineering and design activities in 2026, paving the way for a final investment decision thereafter.
Manta Ray: The non-operated Manta Ray well was drilled in late 2025. The well encountered hydrocarbons but was deemed non-commercial. Talos held a 40% W.I. and Walter Oil and Gas Corp., as operator, held a 60% W.I.
Exploration and Appraisal Update:
Daenerys: In August 2025, Talos announced successful drilling results at the Daenerys exploration prospect located on Walker Ridge blocks 106, 107, 150 and 151. The discovery well was drilled to a total vertical depth of 33,228 feet utilizing the West Vela deepwater drillship and encountered oil pay in multiple high-quality, sub-salt Miocene sands. The discovery well has been temporarily suspended to preserve its future utility. Talos plans to drill an appraisal well later in the second quarter of 2026 to further define the discovered resource. Talos is encouraged by the results of the Daenerys discovery well, which confirms the presence of oil and validates Talos's geologic and geophysical models. Talos, as operator, holds a 27% W.I., Shell Offshore Inc. holds a 22.5% W.I., Red Willow holds a 22.5% W.I., Houston Energy, L.P. holds a 10%, HEQ II Daenerys, LLC holds a 9% W.I., and Cathexis holds a 9% W.I.
Gulf of America Lease Sale: Talos was an active participant in the Gulf of America Lease Sale held in December 2025, where the Company was named as the apparent high bidder on 11 new leases for approximately $15 million. The new leases bring eight new development and exploration prospects into the Company's portfolio.
Source: Talos Energy
