TALOS ENERGY INC. Segments Disclosure
Note 16 — Segment Information
The Company’s operations were managed through two operating segments through March 18, 2024: (i) the Upstream Segment and (ii) the CCS Segment, both of which were reportable for the year ended December 31, 2024. The CCS Segment was divested in March 2024.
Prior to the divestment of the CCS Segment, corporate general and administrative expense included certain shared costs such as finance, accounting, tax, human resources, information technology and legal costs that were not directly attributable to each operating segment. These shared expenses were fully allocated to each operating segment. Segment accounting policies are the same as those described in Note 2 – Summary of Significant Accounting Policies
The chief operating decision maker (“CODM”) is currently the . The profit or loss metric used to evaluate segment performance is net income as reported in the Company’s Consolidated Statements of Operations. Net income is used by the CODM to measure segment profit or loss, assess performance and make strategic capital resource allocations. The Company’s CODM does not review assets by segment as part of the financial information provided and therefore, no asset information is provided in the tables below.
The following tables present selected segment information for the periods indicated (in thousands):
Year Ended December 31, 2025 |
Upstream |
|
Total |
|
||
Revenues from external customers |
$ |
1,780,070 |
|
$ |
1,780,070 |
|
Significant expenses: |
|
|
|
|
||
Direct operating and maintenance(1) |
|
(526,839 |
) |
|
(526,839 |
) |
Workover(1) |
|
(19,877 |
) |
|
(19,877 |
) |
Adjusted general and administrative expense(2) |
|
(133,986 |
) |
|
(133,986 |
) |
Net cash received (paid) on settled derivative instruments |
|
81,471 |
|
|
81,471 |
|
Interest expense |
|
(163,381 |
) |
|
(163,381 |
) |
Other segment items: |
|
|
|
|
||
Other(3) |
|
10,349 |
|
|
10,349 |
|
Depreciation, depletion and amortization |
|
(1,056,281 |
) |
|
(1,056,281 |
) |
Impairment of oil and natural gas properties |
|
(454,482 |
) |
|
(454,482 |
) |
Accretion expense |
|
(125,296 |
) |
|
(125,296 |
) |
Mark-to-market derivative fair value gain (loss) |
|
23,984 |
|
|
23,984 |
|
Equity-based compensation expense |
|
(18,418 |
) |
|
(18,418 |
) |
Equity method investment income (loss) |
|
(1,807 |
) |
|
(1,807 |
) |
Income tax benefit (expense) |
|
109,169 |
|
|
109,169 |
|
Net income (loss) |
|
(495,324 |
) |
$ |
(495,324 |
) |
|
|
|
|
|
||
Segment Expenditures |
$ |
617,575 |
|
$ |
617,575 |
|
Year Ended December 31, 2024 |
Upstream |
|
CCS(1) |
|
Total |
|
|||
Revenues from external customers |
$ |
1,973,568 |
|
$ |
— |
|
$ |
1,973,568 |
|
Significant expenses: |
|
|
|
|
|
|
|||
Direct operating and maintenance(2) |
|
(492,123 |
) |
|
— |
|
|
(492,123 |
) |
Workover(2) |
|
(73,918 |
) |
|
— |
|
|
(73,918 |
) |
Adjusted general and administrative expense(3) |
|
(130,695 |
) |
|
(1,919 |
) |
|
(132,614 |
) |
Net cash received (paid) on settled derivative instruments |
|
4,710 |
|
|
— |
|
|
4,710 |
|
Interest expense |
|
(187,432 |
) |
|
(206 |
) |
|
(187,638 |
) |
Other segment items: |
|
|
|
|
|
|
|||
Other(4) |
|
(23,048 |
) |
|
(8,472 |
) |
|
(31,520 |
) |
Depreciation, depletion and amortization |
|
(1,023,512 |
) |
|
(46 |
) |
|
(1,023,558 |
) |
Accretion expense |
|
(117,604 |
) |
|
— |
|
|
(117,604 |
) |
Mark-to-market derivative fair value gain (loss) |
|
(6,168 |
) |
|
— |
|
|
(6,168 |
) |
Equity-based compensation expense |
|
(14,415 |
) |
|
(47 |
) |
|
(14,462 |
) |
Gain on TLCS Divestiture(5) |
|
— |
|
|
100,482 |
|
|
100,482 |
|
Equity method investment income (loss) |
|
(2,319 |
) |
|
(7,970 |
) |
|
(10,289 |
) |
Gain (loss) on extinguishment of debt |
|
(60,256 |
) |
|
— |
|
|
(60,256 |
) |
Income tax benefit (expense) |
|
12,188 |
|
|
(17,191 |
) |
|
(5,003 |
) |
Net income (loss) |
$ |
(141,024 |
) |
$ |
64,631 |
|
$ |
(76,393 |
) |
|
|
|
|
|
|
|
|||
Segment Expenditures |
$ |
603,765 |
|
$ |
17,519 |
|
$ |
621,284 |
|
Year Ended December 31, 2023 |
Upstream |
|
CCS(1) |
|
Total |
|
|||
Revenues from external customers |
$ |
1,457,886 |
|
$ |
— |
|
$ |
1,457,886 |
|
Significant expenses: |
|
|
|
|
|
|
|||
Direct operating and maintenance(2) |
|
(374,481 |
) |
|
— |
|
|
(374,481 |
) |
Workover(2) |
|
(15,140 |
) |
|
— |
|
|
(15,140 |
) |
Adjusted general and administrative expense(3) |
|
(88,333 |
) |
|
(10,423 |
) |
|
(98,756 |
) |
Net cash received (paid) on settled derivative instruments |
|
(9,457 |
) |
|
— |
|
|
(9,457 |
) |
Interest expense |
|
(172,060 |
) |
|
(1,085 |
) |
|
(173,145 |
) |
Other segment items: |
|
|
|
|
|
|
|||
Other(4) |
|
(55,048 |
) |
|
4,159 |
|
|
(50,889 |
) |
Depreciation, depletion and amortization |
|
(661,904 |
) |
|
(1,630 |
) |
|
(663,534 |
) |
Accretion expense |
|
(86,152 |
) |
|
— |
|
|
(86,152 |
) |
Mark-to-market derivative fair value gain (loss) |
|
90,385 |
|
|
— |
|
|
90,385 |
|
Equity-based compensation expense |
|
(11,454 |
) |
|
(1,499 |
) |
|
(12,953 |
) |
Gain on the 2023 Mexico Divestiture(5) |
|
66,180 |
|
|
— |
|
|
66,180 |
|
Equity method investment income (loss) |
|
120 |
|
|
(12,229 |
) |
|
(12,109 |
) |
Gain (loss) on partial sale of equity investment(6) |
|
— |
|
|
8,900 |
|
|
8,900 |
|
Income tax benefit (expense) |
|
57,719 |
|
|
2,878 |
|
|
60,597 |
|
Net income (loss) |
$ |
198,261 |
|
$ |
(10,929 |
) |
$ |
187,332 |
|
|
|
|
|
|
|
|
|||
Segment Expenditures |
$ |
733,669 |
|
$ |
40,961 |
|
$ |
774,630 |
|
The following table presents the reconciliation of Segment Expenditures to the Company’s consolidated totals (in thousands):
|
Year Ended December 31, |
|
|||||||
|
2025 |
|
2024 |
|
2023 |
|
|||
Segment Expenditures: |
|
|
|
|
|
|
|||
Total reportable segments |
$ |
617,575 |
|
$ |
621,284 |
|
$ |
774,630 |
|
Change in capital expenditures included in accounts payable and accrued liabilities |
|
829 |
|
|
29,423 |
|
|
(9,199 |
) |
Plugging & abandonment |
|
(117,847 |
) |
|
(108,789 |
) |
|
(86,615 |
) |
Decommissioning obligations settled |
|
(1,102 |
) |
|
(5,447 |
) |
|
(50,584 |
) |
Investment in Talos Mexico |
|
(4,559 |
) |
|
(5,469 |
) |
|
— |
|
Investment in CCS intangibles and equity method investees |
|
— |
|
|
(17,519 |
) |
|
(40,946 |
) |
Other deferred payments |
|
(2,104 |
) |
|
(2,389 |
) |
|
(1,545 |
) |
Non-cash well equipment transfers |
|
(15,837 |
) |
|
(3,412 |
) |
|
(27,731 |
) |
Other |
|
4,950 |
|
|
1,232 |
|
|
3,424 |
|
Exploration, development and other capital expenditures |
$ |
481,905 |
|
$ |
508,914 |
|
$ |
561,434 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.