Talos Energy (TALO) Update - Dec 1
Posted: Tue Dec 01, 2020 2:51 pm
My updated profile and forecast/valuation model for Talos Energy, the only offshore company in our Sweet 16 Growth Portfolio, have been posted to the EPG website.
Now that we are finally done with hurricane season, I feel safe in raising the multiple that I use to value TALO to 3X operating cash flow per share. I have increased my valuation from $16.00 to $18.50 per share. 3X operating CFPS is a very conservative valuation for a company with this much upside.
Talos has confirmed that they are going to report a big increase in production from Q3 to Q4 just because they now have all their hurricane related shut-ins back on-line. They have reported no serious damage from the storms.
Talos has near-term upside in the U.S. Gulf of Mexico and HUGE upside offshore Mexico where they have confirmed two significant oilfield discoveries.
Zama could be a billion barrel oilfield. < For a company with a market-cap of $625 million, a discovery of this size has SIGNIFICANT UPSIDE for equity holders.
Now that we are finally done with hurricane season, I feel safe in raising the multiple that I use to value TALO to 3X operating cash flow per share. I have increased my valuation from $16.00 to $18.50 per share. 3X operating CFPS is a very conservative valuation for a company with this much upside.
Talos has confirmed that they are going to report a big increase in production from Q3 to Q4 just because they now have all their hurricane related shut-ins back on-line. They have reported no serious damage from the storms.
Talos has near-term upside in the U.S. Gulf of Mexico and HUGE upside offshore Mexico where they have confirmed two significant oilfield discoveries.
Zama could be a billion barrel oilfield. < For a company with a market-cap of $625 million, a discovery of this size has SIGNIFICANT UPSIDE for equity holders.