Talos Energy (TALO) Price Target Update - Mar 14
Posted: Tue Mar 14, 2023 10:11 am
From Roth MKM Partners
We rate Talos Energy (TALO) a Buy based on its improving balance sheet, high oil cut, low
production declines, below average valuation, and material potential upside from its carbon
capture business. Price Target $26
Leo Mariani, CFA, Managing Director
There is nothing in my $29.00 valuation of TALO for their carbon capture business because I don't expect it to generate any operating cash flow in 2023 or 2024. I do think carbon capture & sequestration (CCS) will draw a lot of investor attention. Riley Exploration Permian (REPX) also has CCS potential upside.
We rate Talos Energy (TALO) a Buy based on its improving balance sheet, high oil cut, low
production declines, below average valuation, and material potential upside from its carbon
capture business. Price Target $26
Leo Mariani, CFA, Managing Director
There is nothing in my $29.00 valuation of TALO for their carbon capture business because I don't expect it to generate any operating cash flow in 2023 or 2024. I do think carbon capture & sequestration (CCS) will draw a lot of investor attention. Riley Exploration Permian (REPX) also has CCS potential upside.