Talos Energy First Quarter 2026 Financial and Operational Summary

Talos Energy reported a significantly wider net loss of $256.2 million in the first quarter of 2026, compared to a $9.9 million loss in the same period of 2025. This increase was primarily driven by a $145 million non-cash impairment charge, attributed to lower average oil prices. The company emphasized that this impairment has no impact on its cash flows.

Production Performance Exceeds Guidance

Despite the financial loss, Talos's operational performance was strong. The company produced 63,800 barrels per day of oil and 88,800 barrels of oil equivalent per day overall, exceeding its first-quarter guidance ranges. This outperformance was largely driven by the Cardona well, a key deepwater project in the US Gulf, which was delivered ahead of schedule and is performing at the high end of expectations.

Key Project Updates and 2026 Capital Plan

Talos is executing a $500 million to $550 million capital expenditure plan for 2026, focused on deepwater offshore development in the US Gulf and offshore Mexico. Notable project milestones include:

• CPN Well: Drilled and completed under budget and ahead of schedule, with first production expected in the third quarter of 2026.
• Monument Asset: Drilling is underway, with first oil on track by late 2026. Talos holds a 29.7% working interest in this significant deepwater discovery, operated by Beacon Offshore Energy. First production is expected at between 20,000 and 30,000 barrels of oil equivalent per day gross.
• Daenerys Asset: The company plans to return in the second quarter of 2026 to drill an appraisal well to better understand the discovered resource, following successful drilling results announced in August 2025.

Portfolio Expansion and Share Repurchases

In November 2025, Talos was awarded 11 new leases in the US Gulf, adding eight new development and exploration prospects to its portfolio. Additionally, during the first quarter of 2026, the company repurchased 2.7 million shares for a total of $38.2 million. CEO Paul Goodfellow stated that despite significant macro volatility, the company remains well-positioned to execute its strategic priorities for 2026.