TALOS ENERGY INC.

Deepwater Gulf E&P with strong operating cash flow and liquidity but a net-loss year driven by impairments and negative returns.

Strengths

• Strong OCF margin 52.6% (68.7th pct) and cash $363M (90th pct) with a refreshed $700M credit facility
• Active development/exploration pipeline (Daenerys discovery, Monument, new lease blocks)

Risks

• Negative net margin -27.8% (33rd pct), negative operating margin and ROE -22.8% (17th pct); interest coverage negative
• Commodity-price exposure, single-region concentration, large decommissioning/collateral obligations (~$252M)

Notable findings

• No interest coverageInterest coverage -3.43 (cannot cover interest)
• RestatementRecent Developments The following encompasses recent developments since the filing of our Annual Report on Form 10-K for year ended December 31, 2024: Amended and Restated Credit Agreement — On Ja 8-K ↗
• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -27.8%)
• Strong balance sheetStrong balance sheet — $363M cash & investments