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Segment Information (Tables)

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Summary of Information by Business Segment

The following table presents selected segment information (in thousands):

	Three Months Ended September 30, 2025
	Upstream
Revenues from external customers	$	450,053
Significant expenses:
Lease operating expense:
Direct operating and maintenance		(125,599	)
Workover		(8,119	)
Adjusted general and administrative expense(1)		(35,980	)
Net cash received (paid) on settled derivative instruments		16,605
Interest expense		(40,847	)
Other segment items:
Other(2)		(5,920	)
Depreciation, depletion and amortization		(262,637	)
Impairment of oil and natural gas properties		(60,209	)
Accretion expense		(30,764	)
Mark-to-market derivative fair value gain (loss)		(12,379	)
Equity-based compensation expense		(4,955	)
Equity method investment income (loss)		639
Income tax benefit (expense)		24,204
Net income (loss)		(95,908	)

(1)Includes general and administrative expense less transaction expenses and equity-based compensation.

(2)Primarily includes the derecognition of a deferred payment that was deemed uncollectible.

The following table presents selected segment information (in thousands):

	Nine Months Ended September 30, 2025
	Upstream
Revenues from external customers	$	1,387,833
Significant expenses:
Lease operating expense:
Direct operating and maintenance		(384,907	)
Workover		(13,587	)
Adjusted general and administrative expense(1)		(100,654	)
Net cash received (paid) on settled derivative instruments		55,087
Interest expense		(122,585	)
Other segment items:
Other(2)		10,627
Depreciation, depletion and amortization		(813,059	)
Impairment of oil and natural gas properties		(284,090	)
Accretion expense		(93,704	)
Mark-to-market derivative fair value gain (loss)		20,141
Equity-based compensation expense		(13,499	)
Equity method investment income (loss)		(37	)
Income tax benefit (expense)		60,721
Net income (loss)		(291,713	)
Segment Expenditures	$	439,499

(1)Includes general and administrative expense less transaction expenses and equity-based compensation.

(2)Primarily includes interest income and other miscellaneous operating income offset by the derecognition of a deferred payment that was deemed uncollectible.

The following table presents selected segment information (in thousands):

	Three Months Ended September 30, 2024
	Upstream			CCS(1)			Total
Revenues from external customers	$	509,286		$	—		$	509,286
Significant expenses:
Lease operating expense:
Direct operating and maintenance		(134,054	)		—			(134,054	)
Workover		(29,293	)		—			(29,293	)
Adjusted general and administrative expense(2)		(32,856	)		—			(32,856	)
Net cash received (paid) on settled derivative instruments		6,071			—			6,071
Interest expense		(46,275	)		—			(46,275	)
Other segment items:
Other(3)		6,592			577			7,169
Depreciation, depletion and amortization		(274,249	)		—			(274,249	)
Accretion expense		(29,418	)		—			(29,418	)
Mark-to-market derivative fair value gain (loss)		120,220			—			120,220
Equity-based compensation expense		(3,315	)		—			(3,315	)
Gain on TLCS Divestiture(4)		—			13,542			13,542
Equity method investment income (loss)		(544	)		—			(544	)
Income tax benefit (expense)		(20,964	)		2,853			(18,111	)
Net income (loss)		71,201			16,972		$	88,173

(1)The CCS Segment was an emerging business in the start-up phase of operations and the business did not generate any revenues.

(2)Includes general and administrative expense less transaction expenses and equity-based compensation. Corporate overhead allocated to the Upstream Segment was $20.3 million.

(3)Primarily includes transaction expenses for the Upstream Segment and transaction expenses for the CCS Segment. Transaction expenses include severance expense, costs related to the QuarterNorth Acquisition and costs related to the TLCS Divestiture. See further discussion in Note 2 — Acquisition and Divestitures for additional information.

(4)See further discussion in Note 2 — Acquisitions and Divestitures for additional information.

The following table presents selected segment information (in thousands):

	Nine Months Ended September 30, 2024
	Upstream			CCS(1)			Total
Revenues from external customers	$	1,488,383		$	—		$	1,488,383
Significant expenses:
Lease operating expense:
Direct operating and maintenance		(379,459	)		—			(379,459	)
Workover		(76,376	)		—			(76,376	)
Adjusted general and administrative expense(2)		(95,841	)		(1,919	)		(97,760	)
Net cash received (paid) on settled derivative instruments		(14,941	)		—			(14,941	)
Interest expense		(145,896	)		(206	)		(146,102	)
Other segment items:
Other(3)		(24,389	)		(8,414	)		(32,803	)
Depreciation, depletion and amortization		(748,958	)		(46	)		(749,004	)
Accretion expense		(87,053	)		—			(87,053	)
Mark-to-market derivative fair value gain (loss)		56,472			—			56,472
Equity-based compensation expense		(8,812	)		(47	)		(8,859	)
Gain on TLCS Divestiture(4)		—			100,482			100,482
Equity method investment income (loss)		(1,084	)		(7,970	)		(9,054	)
Gain (loss) on extinguishment of debt		(60,256	)		—			(60,256	)
Income tax benefit (expense)		12,525			(8,080	)		4,445
Net income (loss)		(85,685	)		73,800		$	(11,885	)
Segment Expenditures	$	447,447		$	17,519		$	464,966

(1)The CCS Segment was an emerging business in the start-up phase of operations and the business did not generate any revenues.

(2)Includes general and administrative expense less transaction expenses and equity-based compensation. Corporate overhead allocated to the Upstream Segment and CCS Segment was $55.2 million and $0.4 million, respectively.

(3)Primarily includes transaction expenses for the Upstream Segment and transaction expenses for the CCS Segment. Transaction expenses include severance expense, costs related to the QuarterNorth Acquisition and costs related to the TLCS Divestiture. See further discussion in Note 2 — Acquisition and Divestitures for additional information.

(4)See further discussion in Note 2 — Acquisitions and Divestitures for additional information.

Reconciliation of Reportable Segment Expenditures

The following table presents the reconciliation of Segment Expenditures to the Company’s consolidated totals (in thousands):

	Nine Months Ended September 30,
	2025			2024
Segment Expenditures:
Total reportable segments	$	439,499		$	464,966
Change in capital expenditures included in accounts payable and accrued liabilities		15,213			4,772
Plugging & abandonment		(90,078	)		(86,074	)
Decommissioning obligations settled		(1,227	)		(5,094	)
Investment in Talos Mexico		(1,996	)		(2,108	)
Investment in CCS intangibles and equity method investees		—			(17,519	)
Deferred payments		(1,632	)		(1,791	)
Other		1,858			(1,955	)
Exploration, development and other capital expenditures	$	361,637		$	355,197

X

- Definition

Tabular disclosure of reconciliation of other items from reportable segments to their consolidated amount. Excludes reconciliation of revenue, profit (loss), and assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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