10 Best Depressed Stocks To Buy Heading into 2025

5. Talos Energy Inc. (NYSE:TALO)

52 Week Range: $9.58 – $16.99 

Current Share Price: $9.87

Number of Hedge Fund Holders: 21

Analyst Upside Potential: 62.11% 

Talos Energy Inc. (NYSE:TALO) is an independent energy company primarily involved in exploring and producing oil and natural gas. They focus on finding and extracting oil and natural gas from the ground, particularly in the Gulf of Mexico and offshore Mexico. As per the management, it is the fifth-largest operator in the Gulf of Mexico and the fourth-largest acreage holder in the Gulf of Mexico. The company has set its 2024 production guidance between 89,000 and 95,000 barrels of equivalent a day.

As far as its latest production figure is concerned, during the second quarter of fiscal 2024, the company reached a production level of 95.5 MBOE/D, comprising 73% oil and 81% liquids. As a result of strong production the adjusted EBITDA came in at $344 million with a adjusted free cash flow of $148 million. Management has been investing in capital projects which resulted in a 36% reinvestment rate without additional spending on plugging and abandonment and 42% including it.

Talos Energy Inc. (NYSE:TALO) is also developing a high-impact project called the Monument project, expected to add significant value with an estimated production capacity of up to 30,000 barrels per day. Moreover, it was also able to reduce its debt by $100 million. For the third quarter, the company expects to produce 92,000 and 97,000 barrels equivalent a day.