Talos Energy Inc (TALO.N): Strategy Solidifying; Execution Providing Clarity

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Talos Energy Inc (TALO.N): Strategy Solidifying; Execution Providing Clarity

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25 Jun 2026 05:07:30 ET │ 12 pages

Talos Energy Inc (TALO.N)

Strategy Solidifying; Execution Providing Clarity

CITI’S TAKE

We hosted TALO in NYC for a slate of meetings this week and we came

Buy away with a clearer picture of their go-forward strategy supporting our

Price (24 Jun 26 16:00) US$13.71 increased confidence in the medium-term outlook. Management is

executing well on their three-pillar strategy focused on operational Target price US$20.00

efficiency, resource base extension, and consistent shareholder returns. Expected share price return 45.9%

They continue to leverage their stable, high-margin production from core Expected dividend yield 0.0%

assets like Katmai to fund a multi-year effort to build out a deeper Expected total return 45.9%

inventory of future development projects. With a disciplined approach to Market Cap US$2,289M

capital allocation, including a robust share repurchase program, and a

favorable backdrop for sour crude, we believe the path to value creation

remains solid. We reiterate our Buy rating and $20/share target price.

Paul DiamondAC

Strategy – With new management fully settled in, TALO’s strategic direction is +1-212-816-0638

crystallizing around three core tenets: 1) a “maniacal” focus on efficiency and cost paul.diamond@citi.com

control, 2) extending the resource base through a balanced approach of Scott Gruber

infrastructure-led development and targeted exploration, and 3) a commitment to +1-212-816-8919

consistent capital returns. This refined approach appears to be bearing fruit, as

scott.gruber@citi.com

evidenced by their directionally strong recent operational performance.

Johan Monge

+1-212-816-2803