What does Talos Energy do?

Talos Energy finds and drills for oil and natural gas in the United States and Mexico, then sells what it produces. It also produces natural gas liquids. A second business works on capturing carbon dioxide and storing it permanently underground.

What is Talos Energy's fair value?

On an owner-earnings DCF, Talos Energy's most-likely fair value is about $20, versus a recent price near $17. A margin-of-safety estimate, not a price target. Analysis, not advice.

Energy · Oil & Gas E&P · TALO

What Talos Energy Does & How It Makes Money (TALO)

Updated October 2026 · reflects Talos Energy's latest reported financials

Houston-based oil and gas producer with a carbon capture business. Most of its revenue comes from selling the crude oil, natural gas and natural gas liquids its upstream wells produce, so its income rises and falls with commodity prices and production volumes.

Talos Energy's story, moat and numbers — in a 3-minute visual book.

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How Talos Energy makes money

Most of its revenue comes from selling the crude oil, natural gas and natural gas liquids its upstream wells produce, so its income rises and falls with commodity prices and production volumes. Its carbon capture and sequestration segment is a separate business built around storing CO2.

What Talos Energy does

Talos Energy Inc. is an independent oil and gas exploration and production company founded in 2011 and headquartered in Houston, Texas. Through its subsidiaries it explores for and produces oil, natural gas and natural gas liquids in the United States and Mexico. The company reports two segments. Upstream covers its core oil and gas production, and Carbon Capture and Sequestration covers capturing and storing CO2. Its results depend mainly on oil and gas prices and on how much it produces.

Products & services

Crude oil
Natural gas
Natural gas liquids (NGLs)
Carbon capture and sequestration (CCS)

What is Talos Energy worth?

On an owner-earnings DCF, Talos Energy's most-likely value is about $20 versus a recent price near $17 (17% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$15) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $17

Fair value (most likely)

$20

Range

$17–$26

No-growth floor

$15

Price

~$17

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Energy Industry Oil & Gas E&P HQ United States Ticker TALO Official site

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