TALOS ENERGY INC. New Standards Disclosure

Recently Issued Accounting Standards Not Yet Adopted

Disaggregation of Income Statement Expenses — In November 2024, the FASB issued an update requiring the disaggregated disclosure of income statement expenses. The guidance does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. Such disclosures must be made on an annual and interim basis in a tabular format in the footnotes to the financial statements. Entities will be required to disaggregate any relevant expense caption presented on the face of the income statement within continuing operations into the following required natural expense categories, as applicable: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other depletion expenses. The update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 on a prospective retrospective basis. Early adoption and retrospective application are permitted. The Company is currently evaluating the effect of this update on the Company’s disclosures.