Talos Energy (TALO) Update - Nov 9

[dan_s]

Per TipRanks: "In the last 3 months, 3 ranked analysts set 12-month price targets for TALO of $10, $15 and $19." TALO closed at $6.96 today.

I have updated my forecast/valuation model for TALO and it will be posted to the EPG website by Tuesday morning. We are still having some trouble getting a new Java software update to work.

Talos should have all of their hurricane related shut-ins and delays resolved by the end of November. From Q3 production of 48,583 BOE per day, they should have production back to 70,000 Boepd on December 1st and ramp to an exit rate of 72,000 Boepd by year-end. If WTI averages $50/bbl in 2021, Talos should generate over $1 Billion in revenues next year. The BIG UPSIDE on this one is the stuff they have going in shallow waters offshore Mexico.

In a report released today, Subash Chandra from Northland Securities maintained a Buy rating on Talos Energy, with a price target of $19.00. The company’s shares 52-week trading range is $5.00 to $31.34. The top of the range is possible if WTI rebounds back to over $60/bbl. Chandra covers the Utilities sector, focusing on stocks such as Continental Resources, Southwestern Energy, and Concho Resources. Talos Energy has an analyst consensus of Moderate Buy, with a price target consensus of $14.50.