Talos Energy Reports Adjusted Earnings of $0.58 per Share in Third Quarter
Key Facts
Talos Energy reported third-quarter results after the U.S. market close on November 3, posting adjusted earnings of $0.58 per share and revenue of $595.991 million for the three months ended September 30, 2026. The results highlighted strong operating performance, with the company saying oil and total production exceeded quarterly guidance. Talos also raised the midpoint of its full-year production guidance, including the impact of its acquisition of assets in the Gulf of America. The company had scheduled its quarterly results conference call for November 4 at 10:00 a.m. Eastern time. The figures came as production expanded following the deal’s completion, while adjusted earnings remained a separate measure from the accounting net result.
Average oil production was 68.5 thousand barrels per day in the third quarter, while average total production reached 91.5 thousand barrels of oil equivalent per day. Talos attributed the outperformance against guidance to strong performance from its underlying assets, no storm-related shut-ins and contributions from the acquired assets. The company said those assets contributed to production from the deal’s completion through the end of the quarter. Full consolidation of the assets will begin in fourth-quarter 2026 results, expanding the acquisition’s impact in subsequent periods. The quarter’s results therefore combined performance from existing assets with a partial contribution from the new assets.
Talos said it realized an oil price about $1.60 per barrel above West Texas Intermediate, while adjusted EBITDA margins were about $52 per barrel of oil equivalent. These indicators show part of the operating return on production during the quarter. On revenue, the company reported $595.991 million for the period ended September 30. Adjusted earnings per share were $0.58, according to a company statement reported by The Associated Press. These operating and financial measures reflect different sources of performance, from production volumes to realized prices and margins.
Talos completed its acquisition of deepwater assets from Shell in the Gulf of America on September 22, for a final net cash purchase price of $420 million. The company said the assets added production between the deal’s completion and the end of the third quarter, with full consolidation set to begin in the fourth quarter. Talos raised the midpoint of its 2026 oil production guidance to 69 thousand barrels per day and its total production guidance to 93.5 thousand barrels of oil equivalent per day. It said the updated guidance accounts for the acquisition, the divestiture of non-core assets on the continental shelf and the impact of Hurricane Isaias in early October. The higher guidance puts expected production for the year at a higher level, incorporating the deal’s impact and the operational developments cited by the company.
For comparison, Talos reported second-quarter net income of $149.7 million, diluted earnings per share of $0.88, adjusted EBITDA of $402.4 million and adjusted free cash flow of $231.6 million. Those results provide recent context for the company’s performance before the third quarter without changing the figures reported for the latest period. On market expectations, Investing.com cited analyst estimates of $0.42 per share and expected revenue of $543.9 million, compared with the adjusted result and revenue reported by the company. The results call was scheduled for November 4, with a replay available through November 11. TALO shares closed at $16.46 in the November 2 session, before the results were announced.