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Here are 1-2 brief analogies for Talos Energy (TALO):

1. Think of them as a mining company, but instead of digging for metals or coal on land, they drill for oil and natural gas under the sea, primarily in the U.S. Gulf of Mexico.
2. They're like a smaller, independent version of ExxonMobil's or Chevron's oil and gas drilling (upstream) operations, specifically targeting the U.S. Gulf of Mexico.

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• Oil and Natural Gas Exploration: Identifying and evaluating potential drilling sites for oil and natural gas reserves.
• Oil and Natural Gas Production: Extracting crude oil and natural gas from discovered reserves for commercial sale.
• Crude Oil: A raw fossil fuel extracted from the earth, which is processed into various petroleum products.
• Natural Gas: A gaseous fossil fuel extracted from the earth, primarily used for energy generation and heating.

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Talos Energy (TALO) is an independent exploration and production company focused on oil and natural gas. As such, it sells its extracted crude oil and natural gas commodities to other companies, primarily refiners, pipeline operators, marketers, and integrated energy companies.

According to their most recent annual filings, Talos Energy's major customers and their approximate share of total oil and natural gas sales in 2023 were:

• Shell Trading (US) Company (a subsidiary of Shell plc, symbol: SHEL) - approximately 25%
• Plains Marketing, L.P. (a subsidiary of Plains All American Pipeline, L.P., symbol: PAA) - approximately 15%
• Phillips 66 Company (symbol: PSX) - approximately 14%

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Paul Goodfellow, President and Chief Executive Officer

Paul Goodfellow was appointed President and Chief Executive Officer of Talos Energy Inc. in March 2025. He brings over 34 years of domestic and international experience in the oil and gas industry, having held a distinguished career at Shell plc from 1991 until joining Talos. During his tenure at Shell, Mr. Goodfellow held various senior executive roles, including leading Shell's global deepwater business across regions such as the U.S. Gulf of America, Offshore Mexico, and Brazil. He also oversaw Shell's global drilling, completion, and well intervention organization and was a key member of the Projects & Technology and Upstream leadership teams. Most recently, he served as Shell's Executive Vice President and Group Chief Internal Auditor from August 2023 to February 2025, and Executive Vice President, Deep Water, Shell Upstream from April 2019 to August 2023. Mr. Goodfellow also served as the Chairman of the Board of Shell Midstream Partners GP LP from October 2019 to August 2023.

Zachary B. Dailey, Executive Vice President and Chief Financial Officer

Zachary B. Dailey was appointed Executive Vice President and Chief Financial Officer of Talos Energy, effective August 18, 2025. He has over 17 years of experience in the oil and gas sector. Mr. Dailey previously served as Vice President, Controller, and Chief Accounting Officer at Marathon Oil Corporation before its acquisition by ConocoPhillips. His nearly decade-long tenure at Marathon Oil included various leadership positions in Internal Audit, Business Development, Planning, Operations, CEO Advisor, and Investor Relations. Prior to Marathon Oil, he held finance leadership roles at LINN Energy, Berry Petroleum Company, and Morgan Keegan & Company.

Megan Dick, Executive Vice President and Chief Human Resources Officer

Megan Dick was appointed Executive Vice President and Chief Human Resources Officer in August 2025. She has 23 years of experience in human resources, with more than 17 years specifically within the oil and gas industry. Ms. Dick has been with Talos Energy since July 2014, having previously served as Vice President, Human Resources, Director, Human Resources, and Manager Human Resources. Before joining Talos, Ms. Dick was a Human Resources Manager for Aurora Oil & Gas Limited, which was acquired by Baytex Energy Corp.

William S. Moss III, Executive Vice President and General Counsel

William S. Moss III (Bill Moss) is the Executive Vice President and General Counsel of Talos Energy, having joined the company in May 2013. Prior to Talos, Mr. Moss was a partner at Mayer Brown LLP in Houston, where he led the Houston Corporate Practice. His legal practice focused on mergers and acquisitions, securities offerings, and general corporate and securities matters for clients across the energy value chain. Mr. Moss initially represented Talos as outside counsel during its formation and its subsequent acquisition of Energy Resource Technology, LLC. He also represented Phoenix Exploration Company LP in its initial formation, acquisitions, and its eventual sale to a group of buyers led by Apache Corporation.

William R. Langin, Executive Vice President, Exploration & Development

William R. Langin was appointed Executive Vice President of Exploration & Development at Talos Energy in September 2025. He possesses over 22 years of domestic and international experience in the oil and gas industry, with a career encompassing exploration, development, and portfolio growth across multiple global basins. Before joining Talos, Mr. Langin served as Vice President of Exploration Portfolio and Technology at Hess Corporation, where he was responsible for defining the company's exploration portfolio and overseeing corporate planning, commercial, engineering, and seismic technology functions, until Hess's merger with Chevron. He commenced his career at Shell in 2003, holding various roles including Senior Vice President, West/Deepwater Exploration, and Vice President, Exploration – North America & Brazil.

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The key risks to Talos Energy (TALO) are primarily linked to the inherent volatility of the oil and natural gas industry, the operational complexities of its deepwater focus, and the evolving regulatory and geopolitical landscape.

1. Volatility in Oil and Natural Gas Prices: Talos Energy's financial performance is highly susceptible to the fluctuating prices of crude oil and natural gas. Given that approximately 68% of its output is tied to crude, sustained declines in commodity prices can materially and adversely affect the company's revenue, cash flow, profitability, and access to capital, despite hedging strategies.
2. Operational and Environmental Risks in the Gulf of Mexico: The company's significant concentration in the deepwater United States Gulf of Mexico exposes it to substantial operational challenges. These include weather-related risks, such as hurricanes, and the inherent hazards associated with deepwater drilling and production. Operational incidents, such as equipment failures, can lead to production delays, considerable financial costs, and reputational damage.
3. Regulatory and Geopolitical Risks, Including Energy Transition: Talos Energy operates within a heavily regulated sector, making it vulnerable to changes in laws and regulations, particularly those pertaining to environmental protection and the broader energy transition. New or evolving government policies related to climate change and environmental, social, and governance (ESG) factors can increase operating costs and restrict exploration and production activities. Furthermore, the company's activities in regions like offshore Mexico expose it to risks associated with legal and political instability.

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The accelerating global energy transition and increasing commitments to decarbonization leading to forecasts of peak oil and natural gas demand.

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The addressable markets for Talos Energy's main products, crude oil and natural gas, in their operating regions are as follows:

• United States Gulf of Mexico: The Gulf of Mexico oil and gas market was valued at approximately USD 52.20 billion in 2024 and is projected to reach USD 73.67 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 4.4% from 2026 to 2032.
• Offshore Mexico: The Mexico oil and gas market size specifically for offshore operations is expected to exceed USD 3.24 billion by 2031.

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Talos Energy (TALO) anticipates several key drivers for future revenue growth over the next 2-3 years, stemming from its strategic operational initiatives and capital allocation. These drivers are primarily focused on enhancing production volumes, optimizing asset performance, and improving the value mix of its output.

1. Increased Production from New Development and Exploration Projects: Talos Energy plans to drive revenue growth through new drilling activities and the development of recent discoveries. The company has commenced drilling activities at its operated Brutus, Cardona, and CPM projects, as well as the non-operated Monterrey and Monument projects. These development projects are noted to have a low break-even point. Furthermore, Talos is advancing a "very promising exploration discovery at Daenerys", with an appraisal well planned for spudding in late Q2 2026. Monument is also identified as a "High-Impact Subsalt Wilcox Discovery." The company's 2026 capital budget of $500-550 million is allocated significantly towards these development, exploration, and appraisal activities. This resource expansion from new discoveries such as Daenerys and Monument is a key operational growth driver.
2. Higher Percentage of Oil Production: Talos Energy expects an increase in the proportion of oil within its total production mix. In 2026, the company forecasts oil as a percentage of total production to increase by a couple of percentage points year-over-year, reaching approximately 73%. Since oil typically commands a higher price per barrel equivalent compared to natural gas, a richer oil mix is expected to contribute positively to overall revenue.
3. Debottlenecking and Optimization of Existing Infrastructure: Operational enhancements at existing facilities are projected to boost throughput and, consequently, revenue. Specifically, successful debottlenecking efforts at the Talos-operated Tarantula facility have already increased its gross processing capacity. This allowed production from the Katmai field to average over 36,000 barrels of oil equivalent per day and further raised throughput to approximately 38,000 barrels through debottlenecking. Continued optimization efforts at such facilities are a key operational growth driver.
4. Return of Shut-in Wells to Production: The re-initiation of production from previously shut-in wells is also a driver for revenue growth. For instance, the Genovesa well, which experienced a shut-in due to a surface-controlled subsurface safety valve failure and impacted Q4 2025 production, is expected to return online in the second half of 2026. The anticipated return of this well, alongside other new projects, is expected to result in a higher year-end 2026 exit production rate compared to 2025.

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Share Repurchases

• In 2025, Talos Energy repurchased approximately 12.6 million shares for $119.1 million, which represented about 29% of its annual free cash flow.
• During the second quarter of 2024, the company repurchased approximately 3.8 million shares for $43 million at an average price of $11.26 per share.
• As of December 31, 2025, approximately $81 million remained authorized for future share repurchases.

Share Issuance

• The acquisition of QuarterNorth Energy in January 2024 involved consideration that included 24.8 million shares of Talos common stock, alongside approximately $965 million in cash.
• In June 2021, affiliates of Apollo Global Management and Riverstone Holdings LLC, as selling stockholders, offered 5,000,000 shares of Talos Energy's common stock in a public offering; Talos did not sell any shares itself and received no proceeds from this offering.
• As part of compensation, Director Neal P. Goldman exercised restricted stock units into 25,528 shares of common stock on March 10, 2026.

Outbound Investments

• Talos Energy acquired QuarterNorth Energy Inc. for $1.29 billion in January 2024. This acquisition added approximately 30 thousand barrels of oil equivalent per day (MBoe/d) in production and about 69 million barrels of oil equivalent (MMBoe) in proved reserves.
• In February 2023, Talos Energy completed the acquisition of EnVen Energy Corporation, which significantly scaled and diversified its business by integrating high-margin, oil-weighted assets and operated infrastructure.
• Talos purchased a 21.4% working interest in the Monument discovery in the Gulf of Mexico, with an expected net investment of approximately $25 million in 2024 and about $160 million over 2025 and 2026.

Capital Expenditures

• For 2026, Talos Energy anticipates capital expenditures to range from $500 million to $550 million, with a primary focus on infrastructure-led development, exploration and appraisal, and the Monument project.
• In 2025, capital expenditures totaled $494.067 million, with approximately $500 million invested in exploration and development activities.
• Talos Energy's 2024 upstream capital expenditures were projected to be between $570 million and $600 million, later revised to $510-$530 million, with drilling and subsea tie-backs being a primary focus.