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Talos (TALO) Announces $100 million Share Repurchase Plan

Talos Energy Inc. TALO disclosed that its board of directors authorized a $100-million share buyback program of the company's common stock. The authorization gives Talos's management the freedom to periodically repurchase shares in the open market through private negotiations or by any other method that complies with state and federal securities laws. This is the first share repurchase authorization made by the company since its inception.

According to Talos’ president and CEO, Timothy S. Duncan, the company’s stock has traded at a considerable discount to its fundamental value for quite some time now. At current trading levels, the discount creates a buying opportunity that is too tempting to turn down. It has also led the company to revise its capital allocation framework and sanction a substantial share repurchase program.

Any share repurchases made under the share repurchase program will be timed, based on the condition of the market, any contractual restrictions and other factors. Talos also mentioned in its press release that it was under no obligation to repurchase any specific sum of money or a certain number of shares under the program, which might be extended, modified, suspended or discontinued at any time.

The company intends to keep investing in catalysts, while keeping an eye on credit quality and chances to distribute extra cash flow to shareholders.

Zacks Rank & Key Picks

Currently, Talos carries a Zack Rank #5 (Strong Sell).


Some better-ranked stocks for investors interested in the energy sector are CVR Energy CVI, Par Pacific Holdings Inc. PARR and Valero Energy Corporation VLO. While CVR Energy and Par Pacific currently sport a Zacks Rank #1 (Strong Buy), Valero Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023.

Par Pacific is a growth-oriented company that combines knowledge of corporate financing with experience in the oil and gas sector. With 94,000 bpd of active refining capacity and a logistical system that includes an SPM, storage, barges, pipelines and trucking operations, PARR owns and manages one of Hawaii's biggest energy networks. Over the past 30 days, the company has witnessed an upward revision in earnings estimates for 2023 and 2024.

Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products. With 15 refineries spread across Canada, the United States and the U.K., it has a daily refining capacity of 3.1 million barrels. Over the past 30 days, VLO has seen an upward revision in earnings estimates for 2023 and 2024.

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