XML 36 R26.htm IDEA: XBRL DOCUMENT
v3.23.3

Financial Instruments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Financial Instruments [Abstract] |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts, net of discount, premium and deferred financing costs, and estimated fair values of the Company’s debt instruments (in thousands):
| September 30, 2023 |  | December 31, 2022 |
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value |
12.00% Second-Priority Senior Secured Notes – due January 2026 | $ | 597,544 |  | $ | 664,523 |  | $ | 590,132 |  | $ | 674,542 |
11.75% Senior Secured Second Lien Notes – due April 2026(1) | $ | 250,006 |  | $ | 248,723 |  | $ | — |  | $ | — |
Bank Credit Facility – matures March 2027 | $ | 204,333 |  | $ | 215,000 |  | $ | (4,792 | ) | $ | — |
(1) Assumed in connection with the EnVen Acquisition. See further discussion in Note 6 — Debt.
Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations | The following table presents the impact that derivatives, not designated as hedging instruments, had on its Condensed Consolidated Statements of Operations (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
| 2023 |  | 2022 |  | 2023 |  | 2022 |
Net cash received (paid) on settled derivative instruments | $ | (6,313 | ) | $ | (81,162 | ) | $ | (10,474 | ) | $ | (368,483 | )
Unrealized gain (loss)(1) |  | (92,489 | ) |  | 195,342 |  |  | (3,194 | ) |  | 137,350 |
Price risk management activities income (expense) | $ | (98,802 | ) | $ | 114,180 |  | $ | (13,668 | ) | $ | (231,133 | )
(1) Includes $1.4 million gain from the unrealized derivative instruments acquired from the EnVen Acquisition for the nine months ended September 30, 2023.
Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under the Terms of Derivative Contracts | The following tables reflect the contracted average daily volumes and weighted average prices under the terms of the Company's derivative contracts as of September 30, 2023:
Swap Contracts |
Production Period | Settlement Index | Volumes |  | Swap Price |
Crude oil: |  | (Bbls) |  | (per Bbl) |
October 2023 – December 2023 | NYMEX WTI CMA |  | 12,000 |  | $ | 75.25 |
January 2024 – December 2024 | NYMEX WTI CMA |  | 16,105 |  | $ | 74.37 |
January 2025 – December 2025 | NYMEX WTI CMA |  | 6,986 |  | $ | 74.11 |
Natural gas: |  | (MMBtu) |  | (per MMBtu) |
October 2023 – December 2023 | NYMEX Henry Hub |  | 20,000 |  | $ | 4.22 |
January 2024 – December 2024 | NYMEX Henry Hub |  | 17,459 |  | $ | 3.44 |
January 2025 – December 2025 | NYMEX Henry Hub |  | 12,466 |  | $ | 4.00 |
Two-Way Collar Contracts |
Production Period | Settlement Index | Volumes |  | Floor Price |  | Ceiling Price |
Crude oil: |  | (Bbls) |  | (per Bbl) |  | (per Bbl) |
October 2023 – December 2023 | NYMEX WTI CMA |  | 7,826 |  | $ | 67.76 |  | $ | 86.39 |
January 2024 – December 2024 | NYMEX WTI CMA |  | 1,497 |  | $ | 70.00 |  | $ | 79.32 |
Natural gas: |  | (MMBtu) |  | (per MMBtu) |  | (per MMBtu) |
October 2023 – December 2023 | NYMEX Henry Hub |  | 10,000 |  | $ | 5.25 |  | $ | 8.46 |
January 2024 – December 2024 | NYMEX Henry Hub |  | 10,000 |  | $ | 4.00 |  | $ | 6.90 |
Three-Way Collar Contracts |
Production Period | Settlement Index | Volumes |  | Short Put Price |  | Floor Price |  | Ceiling Price |
Crude oil: |  | (Bbls) |  | (per Bbl) |  | (per Bbl) |  | (per Bbl) |
October 2023 – December 2023 | NYMEX WTI CMA |  | 9,200 |  | $ | 51.86 |  | $ | 65.11 |  | $ | 109.25 |
January 2024 – March 2024 | NYMEX WTI CMA |  | 3,200 |  | $ | 57.27 |  | $ | 70.00 |  | $ | 98.01 |
Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis | The following tables provide additional information related to financial instruments measured at fair value on a recurring basis (in thousands):
| September 30, 2023 |
| Level 1 |  | Level 2 |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |
Oil and natural gas derivatives | $ | — |  | $ | 16,047 |  | $ | — |  | $ | 16,047 |
Liabilities: |  |  |  |  |  |  |  |
Oil and natural gas derivatives |  | — |  |  | (64,023 | ) |  | — |  |  | (64,023 | )
Total net asset (liability) | $ | — |  | $ | (47,976 | ) | $ | — |  | $ | (47,976 | )
| December 31, 2022 |
| Level 1 |  | Level 2 |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |
Oil and natural gas derivatives | $ | — |  | $ | 32,883 |  | $ | — |  | $ | 32,883 |
Liabilities: |  |  |  |  |  |  |  |
Oil and natural gas derivatives |  | — |  |  | (76,242 | ) |  | — |  |  | (76,242 | )
Total net asset (liability) | $ | — |  | $ | (43,359 | ) | $ | — |  | $ | (43,359 | )
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of derivative financial instruments as well as the potential effect of netting arrangements on the Company's recognized derivative asset and liability amounts (in thousands):
| September 30, 2023 |  | December 31, 2022 |
| Assets |  | Liabilities |  | Assets |  | Liabilities |
Oil and natural gas derivatives: |  |  |  |  |  |  |  |
Current | $ | 11,497 |  | $ | 55,042 |  | $ | 25,029 |  | $ | 68,370 |
Non-current |  | 4,550 |  |  | 8,981 |  |  | 7,854 |  |  | 7,872 |
Total gross amounts presented on balance sheet |  | 16,047 |  |  | 64,023 |  |  | 32,883 |  |  | 76,242 |
Less: Gross amounts not offset on the balance sheet |  | 16,047 |  |  | 16,047 |  |  | 32,883 |  |  | 32,883 |
Net amounts | $ | — |  | $ | 47,976 |  | $ | — |  | $ | 43,359 |

X
- Definition Financial instruments. + References No definition available. + Details
Name: | talo_FinancialInstrumentsAbstract
Namespace Prefix: | talo_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to carrying amount and estimated fair value of short-term and long-term debt instruments or arrangements, including but not limited to, identification of terms, features, and collateral requirements. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCarryingValuesAndEstimatedFairValuesOfDebtInstrumentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1B Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-8 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 4CC -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4CC + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of price risk derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfPriceRiskDerivativesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration