Talos Energy Inc. (TALO:NYSE) and its joint venture partners appointed Harbour Energy Plc (HBR:LSE) as the operator of their Zama oil project in offshore Mexico, reported Leo Mariani, managing director and senior research analyst, in a Dec. 31 a ROTH Capital Partners research note.
"We think this will be a positive for the project as [Harbour] may finally get it moving after many years of indecision," Mariani wrote.
Stock Surpasses Target
At the time of the analyst's report, Talos was trading at about US$11.20 per share (US$11.20/share), noted Mariani, a higher price than ROTH's US$11/share target price on it.
"Our US$11 price target on TALO shares is based on a 3x multiple of our 2026 debt-adjusted cash flow estimate, which is based on US$58 West Texas Intermediate oil and US$3.35 Henry Hub gas," noted Mariani.
The Texas-based exploration and production company remains a Buy.
Talos has 170 million shares outstanding. Its market cap is US$1.9 billion. Its 52-week range is US$6.38–11.94/share.
Next For Zama
All of Zama's partners, Pemex, Grupo Carso, and Talos (3.5%), agreed to the appointment of Harbour.
The next steps at Zama, according to Harbour, are completion of engineering and design work, expected in 2026.
About Talos Energy
Talos is primarily oil-focused, and its operations are in the Gulf of Mexico and offshore Mexico.
"Talos is also an early mover in the carbon capture and sequestration business in and around the U.S. Gulf Coast," Mariani wrote.
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Disclosures for ROTH Capital Partners, Talos Energy, December 31, 2025
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Disclosures: The price target and rating history for Talos Energy, Inc. prior to February 1, 2023 reflect MKM’s published opinion prior to the acquisition of MKM Partners, LLC by Roth Capital Partners, LLC. Rating and Price Target History for: Talos Energy, Inc. (TALO) as of 12-30-2025 25 20 15 10 5 Q3 2023 Q1 Q2 Q3 2024 Q1 Q2 Q3 2025 Q1 Q2 Q3 2026 10/17/22 B:$28 01/30/23 D:NC:NA 02/08/23 B:$28 03/01/23 B:$26 04/19/23 B:$22 07/19/23 B:$19 01/17/24 B:$18 01/18/24 B:$17 07/16/24 B:$16 10/16/24 B:$13 04/14/25 B:$11 Created by: BlueMatrix Each box on the Rating and Price Target History chart above represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first note written during the past three years. Distribution Ratings/IB Services shows the number of companies in each rating category from which Roth or an affiliate received compensation for investment banking services in the past 12 months. Distribution of IB Services Firmwide IB Serv./Past 12 Mos. as of December 31, 2025 Rating Count Percent Count Percent Buy [B] 387 77.09 106 27.39 Neutral [N] 82 16.33 5 6.10 Sell [S] 4 0.80 2 50.00 Under Review [UR] 28 5.58 4 14.29 Ratings System Definitions - ROTH Capital employs a rating system based on the following: Buy: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return of at least 10% over the next 12 months. Neutral: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return between negative 10% and 10% over the next 12 months. Sell: A rating, which at the time it is instituted and or reiterated, that indicates an expectation that the price will depreciate by more than 10% over the next 12 months. Under Review [UR]: A rating, which at the time it is instituted and or reiterated, indicates the temporary removal of the prior rating, price target and estimates for the security. Prior rating, price target and estimates should no longer be relied upon for UR-rated securities. Not Covered [NC]: ROTH Capital does not publish research or have an opinion about this security. ROTH Capital Partners, LLC and its affiliates expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2025. Member: FINRA/SIPC.
