Cavan Images/iStock via Getty Images
Investment thesis
Talos Energy (NYSE:TALO) is a rising oil producer in the Gulf of Mexico that trades at sizable discount to its net asset value (or NAV). I was excited about this
Talos Energy: Improved Cash Flow And Strategic Investments Indicate Potential
Summary
- Talos Energy's free cash flow is inflecting and should be able to support buybacks.
- The private equity ownership has decreased dramatically and implies less structural selling pressure in the future.
- The company also gained as a strategic investor, Mexico's Carlos Slim; Mr. Slim recently bought more shares in the low-teens.
Financial blogger, part-time investor. Bullish oil & gas, OFS/offshore, commodities, EMs. Bearish energy transition. My posts aren't investment advice, DYODD.X/Twitter: @EnergyRealist25
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TALO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
My articles, blog posts, and comments on this platform do not constitute investment recommendations, but rather express my personal opinions and are for informational purposes only. I am not a registered investment advisor and none of my writings should be considered as investment advice. While I do my best to ensure I present correct factual information, I cannot guarantee that my articles or posts are error-free. You should perform your own due diligence before acting upon any information contained therein.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.