Shares of Talos Energy, Inc. (TALO) are soaring 21.64% in Tuesday's intraday trading, building on the strong pre-market gains following the release of its impressive first-quarter 2025 earnings report. The independent oil and gas company has pleasantly surprised investors by posting a profit, marking a significant turnaround from the previous year's loss.

According to the earnings report released late Monday, Talos Energy reported adjusted earnings of $0.06 per share for the quarter ended March 31, 2025, dramatically beating the analysts' consensus estimate of a $0.10 loss per share. This represents a substantial improvement from the $0.13 loss per share reported in the same quarter last year. The company's revenue also impressed, coming in at $513.06 million, surpassing analyst expectations of $498.89 million and showing a 19.3% increase from the year-ago quarter.

The strong performance can be attributed to improved production volumes and favorable commodity prices. Talos Energy reported average net daily production of 100.9 million barrels of oil equivalent, with oil production at 68.3 million barrels. The company also benefited from higher realized prices, with oil prices averaging $71.73 per barrel and natural gas prices at $4.32 per mcf. These results demonstrate Talos Energy's ability to capitalize on the current market conditions and efficiently manage its operations, which has clearly resonated with investors, driving the stock's significant rally during Tuesday's trading session.