Canada markets close in 6 hours 6 minutes

Talos Energy Inc. (TALO)

NYSE - Nasdaq Real Time Price. Currency in USD
Add to watchlist
6.04-0.21 (-3.36%)
As of 9:53AM EDT. Market open.
Sign in to post a message.
  • 7
    7.62
    $CPE conversation
    US crude oil inventories decreased by 1.6 million barrels, total commercial petroleum inventories decreased by 7.5 million barrels last week (eia.gov) $CPE $CDEV $LPI $FANG $TALO
  • T
    Troy
    Just now actually looking at the posts from yesterday, and to answer a few questions about why I was buying yesterday at $5.60-$5.70. Basically, I think TALO is trading based on the market thinking there will be bad news from Zama. And they are probably right, I think there is a good chance that Pemex/Mexico screws TALO on Zama. And I think the stock is trading badly because of this uncertainty. 6 things, 1 - Even if PEMEX screws TALO on Zama, it is still going to be good for TALO, but it will just extend the timeline quite a bit. But ultimately, a smaller portion later down the road of one of the biggest finds in the GOM in decades ... still isn't a "bad" thing as the market is acting like. 2 - I think Mexico screws TALO publicly on Zama because it is high profile, but then they quietly give them the other smaller play, so that is still not as big as Zama, but still a nice "consolation prize". 3 - But here is the main thing, if you pretend the Mexico assets don't even exist, and look at TALO based on value of CURRENT producing and soon to be producing assets, it is literally one of the cheapest stocks in terms of valuation, is some cases multiples behind other E&Ps. 4 - So, are they so cheap because they look bad and have bad financials? No, they actually are in good shape, especially considering their hedges. So, assuming we won't still be at $40 oil in 2022 (which I don't believe we will), there is imho near 0 chance of them running into financial issues. So again, no reason for them having a valuation lower than there peers, and if anything they are better shape financially than many peers so actually should be at a premium. 5 - They are going to crush their Q2 #s. All you have to do is listen to the conference call, go through the transcript, look at the projected earnings estimates, do a little math and you'll see they should crush both the top line and bottom-line numbers. They were very smart to push maintenance and planned shutdowns from earlier in the year to Q2 to take a hit in the Q2 when oil prices were trash which will make Q3/Q4 better. 6 - The operations VP just spent $417 of his own money, not an options grant but direct purchase at market, when the stock was $8.34. And he now has almost 100k shares of the stock. So the operations VP, who knows a lot more about what is going on at TALO than you or I, decided it was worth putting down nearly 1/2 million dollars when the stock was considerably higher than it is even right now after the increase today.

    So ... all in all, again, I think the stock is trading poorly because of Zama, but I think even if Zama news is bad and the stock is still stuck in the mud, when they come out with their Q2 numbers in 2 months they are going to have headlines saying "TALO beats on Revenue and Earnings", etc. and the stock, if it hadn't moved back above $10 by that time, will move back above $10 on the earnings "beat", which again shouldn't come to a surprise to anyone who can do some simple math. And so, I'll gladly take TALO at $5.70 and $6.31. It WILL be a $20-$30 stock again for those who are patient. jmho
  • S
    Sebastian
    ...and remember $15 target price and all analyst buys have not changed!
  • F
    Fred Hall
    News relevant to Talos Energy Inc.

    https://oilprice.com/Latest-Energy-News/World-News/Oil-Rises-On-Major-Crude-Draw.html

    IMO we are going to see a significant price change soon. Would not be caught short.
    Oil prices rose on Tuesday afternoon after the API reported a significant draw in commercial crude inventories
    Oil prices rose on Tuesday afternoon after the API reported a significant draw in commercial crude inventories
    oilprice.com
  • H
    Hamlet
    At least we are seeing green today. And that is a good thing. Nothing really big is going to happen for Talos Energy until the end of the year. Then we will shake it out one way or another. What is on your horizon for Talos Energy?
  • H
    Hamlet
    I am curious as to who is selling Talos today. I actually wonder if it is one of the institutional holders or an insider selling.
  • T
    Troy
    TALO has gone from being one of the biggest movers to the downside, to now one of the biggest movers to the upside over the past 2 days. I think those dumping/shorting TALO are done and now the stock can be free to recover. If oil stays above $40 I see TALO back to over $8 sometime next week. jmho
  • F
    Fred Hall
    Interesting option trade today: Someone sold 12,595 contracts for $5 Put - Dec 18 2020
  • F
    Fred Hall
    The PV10 of proved properties, excluding Zama, is many times the enterprise value of Talos. Talos trades at a huge discount to peers on EV/boepd and EV/EBITDA metrics.
    The PV10 of proved properties, excluding Zama, is many times the enterprise value of Talos. Talos trades at a huge discount to peers on EV/boepd and EV/EBITDA metrics.
    seekingalpha.com
  • M
    Mark
    Zama oil field in the Gulf of Mexico is considered to be one of the world’s biggest shallow-water oil discoveries in the past 20 years.
    Zama oil field in the Gulf of Mexico is considered to be one of the world’s biggest shallow-water oil discoveries in the past 20 years.
    www.nsenergybusiness.com
  • T
    Tony
    With cold months approaching TALO has to move in price and most of the energy stocks. Its just common sense. Get in before it spikes.
  • M
    Mark
    The deal talks show how consolidation in the oil and gas industry is picking up
    The deal talks show how consolidation in the oil and gas industry is picking up
    www.foxbusiness.com
  • M
    Mark
    picked up 4000 more today at bargain prices :)
  • Y
    Yahoo Finance Insights
    Talos Energy is up 10.14% to 6.19
  • M
    Matt
    If you’re not accumulating now, you’ll regret it later.
  • T
    Troy
    Buying here at $6.40
  • M
    Mark
    talked to Trump last night he told MX pres that TALOs will get Zamos, TALOs will operate zamos and MX will pay for it :)
  • M
    Mark
    Zama is cheaper COST shallow wells too :)
  • A
    AD
    What a joke this stock is, Any other stock would go up on an upgrade. Instead this is down much more than the rest of the oil stocks.
  • H
    Hamlet
    Correction! We only have a 12.55 million share float available. We can have a blast off instead of a steady lift off. Either one will do....