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Employee Benefits Plans and Share-Based Compensation (Tables) | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Schedule of Acquisition Severance Costs | The following table summarizes severance accrual activity in connection the EnVen Acquisition included in “Other current liabilities” and “Other long-term liabilities” on the Condensed Consolidated Balance Sheets as of September 30, 2023 (in thousands):
Severance accrual at December 31, 2022 | $ | — |
Accrual additions |  | 24,904 |
Benefit payments |  | (13,915 | )
Severance accrual at September 30, 2023 |  | 10,989 |
Less: Current portion at September 30, 2023 |  | 10,842 |
Long-term portion at September 30, 2023 | $ | 147 |
Summary of Restricted Stock Units Activity | The following table summarizes RSU activity under the Talos Energy Inc. 2021 Long Term Incentive Plan (the “2021 LTIP”) for the nine months ended September 30, 2023:
| RSUs |  | Weighted Average Grant Date Fair Value |
Unvested RSUs at December 31, 2022 |  | 3,215,504 |  | $ | 12.79 |
Granted |  | 1,153,580 |  | $ | 16.24 |
Vested |  | (1,644,828 | ) | $ | 12.06 |
Forfeited |  | (277,400 | ) | $ | 14.07 |
Unvested RSUs at September 30, 2023(1) |  | 2,446,856 |  | $ | 14.77 |
(1) As of September 30, 2023, 26,975 of the unvested RSUs were accounted for as liability awards in “Accrued liabilities” on the Condensed Consolidated Balance Sheets.
Summary of Performance Share Units Activity | The following table summarizes PSU activity under the 2021 LTIP for the nine months ended September 30, 2023:
| PSUs |  | Weighted Average Grant Date Fair Value |
Unvested PSUs at December 31, 2022 |  | 638,601 |  | $ | 23.66 |
Granted(1) |  | 593,472 |  | $ | 18.78 |
Forfeited |  | (147,286 | ) | $ | 21.47 |
Unvested PSUs at September 30, 2023 |  | 1,084,787 |  | $ | 21.29 |
(1) There were 296,736 PSUs granted that are eligible to vest based on continued employment and the Company’s annualized absolute total shareholder return (“TSR”) over a three-year performance period. An additional 296,736 PSUs were granted and are eligible to vest based on continued employment and the Company’s return on the wells included in the 2023 drill program over a three-year performance period.
Summary of Assumptions Used to Calculate the Grant Date Fair Value of PSUs Granted | The following table summarizes the assumptions used in the Monte Carlo simulations to calculate the fair value of the absolute TSR PSUs granted at the date indicated:
| 2023 |
| Grant |  | Grant |
| July 1 |  | March 5 |
Expected term (in years) |  | 2.5 |  |  | 2.8 |
Expected volatility |  | 66.2 | % |  | 73.1 | %
Risk-free interest rate |  | 4.6 | % |  | 4.5 | %
Dividend yield |  | — | % |  | — | %
Fair value (in thousands) | $ | 173 |  | $ | 6,165 |
Schedule of Recognized Share Based Compensation Expense, Net | The following table presents the amount of costs expensed and capitalized (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
| 2023 |  | 2022 |  | 2023 |  | 2022 |
Share-based compensation costs | $ | 2,556 |  | $ | 7,626 |  | $ | 18,038 |  | $ | 20,597 |
Less: Amounts capitalized to oil and gas properties |  | 2,163 |  |  | 3,316 |  |  | 8,958 |  |  | 8,920 |
Total share-based compensation expense | $ | 393 |  | $ | 4,310 |  | $ | 9,080 |  | $ | 11,677 |

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