Talos Energy Inc. (TALO): Business Model Canvas [Dec-2025 Updated]

You're digging into Talos Energy Inc. (TALO) because their strategy-mixing deepwater oil and gas with a serious push into Carbon Capture and Storage (CCS)-isn't your typical energy play. Honestly, it's smart to look closely, because this dual focus is their differentiator. We've mapped out their entire Business Model Canvas, showing how they generate revenue, like the $\mathbf{\$450}$ million in Q3 2025 revenue, and maintain financial discipline, evidenced by that tight $\mathbf{0.7x}$ Net Debt to LTM Adjusted EBITDA ratio as of Q3 2025. Dive below to see exactly how their key partnerships and activities translate into value propositions that set them apart in the evolving energy landscape.

Talos Energy Inc. (TALO) - Canvas Business Model: Key Partnerships

You're looking at how Talos Energy Inc. (TALO) builds out its operational muscle and its emerging low-carbon portfolio-it's all about who they work with. Honestly, in this sector, you don't go it alone, especially when you're tackling big infrastructure like Carbon Capture and Storage (CCS) or exploring deepwater plays. These partnerships are critical for spreading risk and accessing specialized expertise.

Carbon Capture and Storage (CCS) Alliances

Talos Energy Inc. has been aggressive in structuring its CCS segment through strategic alliances. The structure often involves Talos operating the asset, leveraging its sub-surface and offshore experience, while partners bring capital or specific technology.

The joint venture with Storegga Geotechnologies for U.S. Gulf Coast CCS projects is a $\text{50/50}$ cost-sharing arrangement in the initial phases, requiring zero upfront capital commitments from Talos Energy Inc.. Talos acts as the operating partner here. This JV targets a region with over 100 facilities each emitting more than 1 million tons of $\text{CO}_2$ annually.

For technical assurance on these CCS ventures, Talos established a strategic alliance with Core Laboratories (Core Lab) on March 5, 2022. This alliance focuses on technical evaluation and assurance for subsurface analysis, which is a key input for the required EPA Class VI permit applications.

The specific Freeport LNG CCS project, a stand-alone effort near Freeport, Texas, has Talos Energy Inc. as the project manager and operator, alongside Storegga. The sequestration site is less than half a mile from the capture point and features up to a 30-year injection term. This project alone offers potential expansion capacity near an additional 15 million metric tonnes per annum (MTPA) of incremental $\text{CO}_2$ emissions. To date, Talos Energy Inc. has stated an investment of \$3 billion across its carbon capture projects globally.

The Bayou Bend CCS project, an offshore sequestration hub in Jefferson County, Texas, is structured differently. Here, Chevron joined the venture, acquiring a 50 percent stake for gross consideration of \$50 million paid to Talos Energy Inc. and Carbonvert. This consideration included \$30 million in gross upfront cash and up to \$20 million in capital cost reimbursement through the project's Final Investment Decision (FID). The resulting equity split is 50 percent Chevron, 25 percent Talos Energy Inc., and 25 percent Carbonvert, with Talos Energy Inc. remaining the operator. The site covers over 40,000 gross acres and has preliminary estimates suggesting it could sequester between 225 and 275 million metric tons of $\text{CO}_2$.

Deepwater Gulf of Mexico (GOM) Working Interest Partners

In the core upstream business, Talos Energy Inc. relies on working interest partners to share the capital burden and risk of exploration and development. These arrangements vary by asset, showing a flexible approach to co-ownership in the deepwater Gulf of Mexico (GOM).

Here's a look at the equity breakdown for a few key GOM assets, based on recent operational updates:

The Monument discovery saw Talos Energy Inc. increase its WI to 29.76 percent in March $\text{2025}$. For the Katmai West well, Talos Energy Inc. holds a 48.0 percent WI, partnering with an entity managed by Ridgewood Energy Corporation holding 47.5 percent.

You can see the pattern: Talos Energy Inc. often takes the operator role, which means they control the day-to-day work, but they bring in partners like Shell Offshore Inc., Red Willow Offshore LLC, and Ridgewood to fund the drilling and development costs.

• Partnerships help Talos Energy Inc. manage its \$1,250.0 million total debt as of March 31, 2025.
• The company is actively managing its portfolio, having opportunistically repurchased 6.1 million shares year-to-date in $\text{2025}$ for \$54.6 million.
• The GOM production is expected to average between 91.0 to 95.0 MBoe/d for full year $\text{2025}$ guidance.

Talos Energy Inc. (TALO) - Canvas Business Model: Key Activities

You're looking at the core actions Talos Energy Inc. takes every day to run its business and generate returns for investors. It's a focused set of activities centered on deepwater assets, efficiency drives, and strategic growth plays.

Deepwater oil and natural gas exploration and production (E&P) in the GOM.

The Gulf of Mexico (GOM) is the central operational area, making up 89% of production in Q1 2025. Talos Energy Inc. has been hitting production records, with Q1 2025 output reaching 100.9 MBoe/d, marking its fifth consecutive quarter of record output. For the full year 2025, the revised guidance projects average daily production between 94.0 to 97.0 MBoe/d, with oil comprising about 69% of that volume. By the third quarter of 2025, production settled at 95.2 MBoe/d, with liquids making up 76% of that total.

The company's operational costs are a key focus area, as seen in the table below:

Execution of the Optimal Performance Plan for cost and efficiency improvements.

This internal drive has been a major success for Talos Energy Inc. in 2025. The company set a year-end 2025 target of $25 million in free cash flow enhancements from this plan, but by the third quarter, they had already realized over $40 million. This performance sets the stage for an even larger goal, with line-of-sight to more than $100 million in potential cash flow improvements targeted for 2026. The cost savings came from various areas, including negotiated marketing contracts and topsides optimization.

Development and permitting of large-scale Carbon Capture and Storage (CCS) hubs.

While Talos Energy Inc. pivoted away from direct operations by selling its CCS subsidiary to TotalEnergies for $148 million, the assets remain key to the Gulf Coast decarbonization landscape. The Bayou Bend project, where Talos held a 25% interest, is a major hub expected to start CO2 injections by late 2025. This specific project has a projected peak capacity of 30 mtpa. The joint venture framework with Storegga, which shared costs 50/50 in initial phases, utilized Talos's offshore expertise.

Drilling and completion of high-impact wells like Daenerys and Monument.

The company is actively pursuing high-potential GOM prospects. The Daenerys exploration well was a significant success, confirming hydrocarbons in multiple high-quality, sub-salt Miocene sands.

• Drilled to a total vertical depth of 33,228 feet using the West Vela drillship.
• The operation finished approximately 12 days ahead of schedule and delivered around $16 million under budget.
• Pre-drill gross resource potential was estimated at 100-300 MMBoe.
• Talos, as operator, holds a 27% working interest (WI).
• An appraisal well is planned for the second quarter of 2026.

The Monument discovery saw Talos increase its working interest to 29.76% in March 2025. Development plans involve a subsea tie-back to the Shenandoah production facility, with gross production expected between 20-30 MBoe/d by late 2026.

Managing commodity price risk through strategic hedging.

Talos Energy Inc. uses hedging to lock in revenue stability, which is critical given market volatility. As of early 2025 reports, the strategy covered approximately 42% of the balance of 2025 expected oil production at a weighted average floor price over $72 per barrel. More specifically, for the fourth quarter of 2025, approximately 24,000 barrels per day were hedged at a $71 floor price. This proactive measure is designed to ensure the company can generate positive free cash flow even if oil prices drop as low as $40 per barrel for the full year 2025.

Talos Energy Inc. (TALO) - Canvas Business Model: Key Resources

You're looking at the core assets that power Talos Energy Inc.'s operations right now, heading into the end of 2025. It's a mix of traditional E&P muscle and a strategic, newer play in carbon capture. Honestly, the numbers tell a clear story about their current financial footing and their big bets.

The financial foundation is solid, which is key when you're managing complex offshore projects. As of the third quarter end, September 30, 2025, Talos Energy Inc. reported liquidity of approximately $989.4 million. This figure is made up of $332.7 million in cash on hand, supported by a $700.0 million borrowing base under their Bank Credit Facility, against which only $43.3 million in letters of credit were outstanding. That gives them significant financial flexibility.

Their upstream strength is rooted in their Gulf of Mexico (GOM) position. While the exact current total acreage isn't static, their infrastructure-led strategy is supported by existing facilities. Following the EnVen acquisition, the company doubled its operated deepwater facility footprint, which included five major deepwater facilities. Furthermore, Talos Energy Inc. has been actively adding to its inventory, for example, being named the apparent high bidder on 13 deepwater blocks comprising approximately 74,000 gross acres in a December 2023 lease sale. Key existing facilities mentioned in their strategy include the Ram Powell, Pompano, Prince, and Brutus platforms.

The low-carbon segment centers heavily on the Bayou Bend Carbon Capture and Sequestration (CCS) project. You asked about the estimated capacity, and based on preliminary estimates from the joint venture formation, the offshore acreage component was pegged to potentially sequester 225 to 275 million metric tons of $\text{CO}_2$. More recently, the expanded Bayou Bend project, which includes nearly 140,000 total acres (with about 40,000 acres offshore), holds a gross storage capacity of more than one billion metric tons of $\text{CO}_2$. Talos Energy Inc. holds a 25 percent equity interest in this joint venture, which is operated by Chevron (50 percent stake), with Equinor holding the remaining 25 percent. Injections were targeted to start by late 2025.

Here's a quick look at the key tangible assets and their associated figures:

Beyond the balance sheet and acreage, the intangible resources are critical. You can't drill or manage CCS without deep technical know-how. Talos Energy Inc. relies on:

• Subsurface geological data and technical expertise for offshore drilling.
• Subsurface geological data and technical expertise for CCS development.
• An experienced technical and executive leadership team focused on offshore and CCS.

The team's focus on infrastructure-led development in the GOM helps keep the economics tight, for instance, by leveraging proximity to existing assets like the Pompano and Brutus facilities.

Talos Energy Inc. (TALO) - Canvas Business Model: Value Propositions

You're looking at the core benefits Talos Energy Inc. delivers to its stakeholders, grounded in its current operational and financial standing as of late 2025.

High-Margin, Oil-Weighted Production from the GOM

Talos Energy Inc. focuses its production base in the U.S. Gulf of Mexico (GOM), which supports higher realized prices compared to gas-heavy portfolios. The production mix reflects this focus on higher-value crude.

• Q3 2025 production averaged 95.2 thousand barrels of oil equivalent per day (MBOE/D).
• The oil component of this production mix was 70% for the third quarter of 2025.
• Full-year 2025 guidance projects oil production to be approximately 69% of the total MBOE/D.

Low-Cost Structure and Operational Efficiency

The company emphasizes cost discipline, a critical factor for maintaining margins when commodity prices fluctuate. They have successfully driven down per-unit costs through their Optimal Performance Plan.

The Optimal Performance Plan realized over $40 million in free cash flow enhancements in 2025, exceeding the initial year-end target of $25 million.

Diversification via Carbon Capture and Sequestration (CCS) Monetization

While Talos Energy Inc. divested its entire CCS subsidiary, Talos Low Carbon Solutions, to TotalEnergies in 2024 for a total transaction value of approximately $148 million, the value proposition remains through retained potential upside from the underlying assets.

• The sale included three U.S. Gulf Coast projects: Bayou Bend CCS, Harvest Bend CCS, and Coastal Bend CCS.
• Talos Energy Inc. may realize additional future cash payments upon the achievement of certain milestones at the Harvest Bend or Coastal Bend projects by the new owner, or upon a subsequent sale of those projects.

Rapid Development via Existing Infrastructure

Talos Energy Inc. leverages existing infrastructure in the GOM to accelerate the time-to-production for new finds, which lowers capital exposure and shortens the cash-on-cash return cycle.

• The Sunspear discovery began first production in late the second quarter of 2025, tied back to the Talos operated Prince platform.
• The recent Daenerys exploration prospect, announced as a discovery, has an appraisal well planned to drill in the second quarter of 2026.

Financial Resilience and Balance Sheet Strength

A key value proposition is the company's strong financial footing, which provides flexibility for capital allocation, including shareholder returns, even amid commodity price uncertainty.

• Net Debt to Last Twelve Months (LTM) Adjusted EBITDA ratio stood at a low 0.7x as of September 30, 2025.
• Cash on hand was $332.7 million at September 30, 2025, with an undrawn credit facility.
• The company returned over $100 million to shareholders in 2025 through repurchases of approximately 11.1 million shares for $102.7 million year-to-date as of Q3 2025.

Talos Energy Inc. (TALO) - Canvas Business Model: Customer Relationships

You're looking at how Talos Energy Inc. manages the crucial connections that keep the cash flowing from their core E&P (Exploration & Production) business and their emerging energy transition efforts. It's a mix of traditional commodity sales and new-era technical partnerships.

Transactional, long-term contracts with crude oil and natural gas purchasers

Talos Energy Inc. relies on the market for its primary revenue, but hedging activity shows a clear relationship management strategy. For the full year 2025, the company updated its production guidance to a range of 94.0 to 97.0 MBoe/d (thousand barrels of oil equivalent per day), with oil making up 70% of that mix. To manage price volatility, Talos actively uses hedges. As of April 30, 2025, hedge positions covered approximately 42% of the balance of 2025 expected oil production, securing a weighted average floor price over $72 per barrel. This structure suggests the remaining 58% of expected production is sold via transactional, likely shorter-term or spot market, agreements, or longer-term contracts without floor protection.

Key production metrics from 2025 illustrate the volume underpinning these customer relationships:

Direct, consultative relationships with large industrial CO2 emitters for CCS solutions

While Talos Energy Inc. divested its Talos Low Carbon Solutions LLC subsidiary to TotalEnergies E&P USA for a combined total of approximately $148 million in early 2024, the company maintains a consultative relationship through new joint ventures focused on developing future CCS projects. Talos is now partnering with Storegga Geotechnologies to 'source, evaluate and develop' CCS projects along the US Gulf coast. In this structure, Talos acts as the operating partner for these ventures, sharing initial development costs equally with Storegga. This consultative approach targets large industrial emitters in the region, aligning with Talos's environmental goal to achieve a 30pc reduction in greenhouse gas emissions intensity by 2025 from 2018 levels.

Investor relations focused on capital discipline and shareholder returns

Investor relationships are heavily managed around a disciplined capital allocation framework. A major focus for 2025 has been returning capital directly to shareholders. Through the third quarter of 2025, Talos Energy Inc. returned over $100 million to shareholders via share repurchases. Specifically, the company repurchased 11.1 million shares for $102.7 million in 2025 year-to-date. The Q3 2025 activity alone saw the repurchase of approximately 5.0 million shares for $48.1 million. Management has committed to allocating up to 50% of annual free cash flow to these buybacks. As of September 30, 2025, the remaining authorization for share repurchases stood at approximately $97 million.

Key Shareholder Return Metrics (Year-to-Date as of Q3 2025):

• Total shares repurchased in 2025: 11.1 million
• Total capital returned via buybacks in 2025: $102.7 million
• Outstanding share count reduction from 2025 buybacks: 6%
• Remaining share repurchase authorization (as of 9/30/2025): $97 million

Joint venture management and technical collaboration with E&P and CCS partners

Talos Energy Inc. actively manages several key joint ventures, which require deep technical collaboration with partners. In its core Upstream business, Talos holds a 29.7% Working Interest (W.I.) in the Beacon Offshore Energy LLC operated assets, which includes the Daenerys discovery. Furthermore, Talos maintains a stake in offshore Mexico, holding a 17.4% interest in the Zama Field. In the CCS space, the relationship with TotalEnergies E&P USA is defined by the sale of its subsidiary, though TotalEnergies now holds a 25% share in the Bayou Bend CCS LLC project, alongside Chevron (50%, operator) and Equinor (25%). The CCS development JV with Storegga Geotechnologies is structured for equal sharing of initial costs, leveraging Talos's role as the operating partner for new ventures.

Talos Energy Inc. (TALO) - Canvas Business Model: Channels

You're looking at how Talos Energy Inc. gets its product-mostly oil and gas-from the subsea wellhead to the buyer's tank or utility grid in late 2025. This is all about the physical and commercial pathways they use to connect their Gulf of Mexico assets to the market.

For their core upstream business, the sheer volume of production dictates the scale of the channels required. Talos reported production for the third quarter of 2025 was 95.2 MBoe/d (thousand barrels of oil equivalent per day), with oil making up 70% of that mix. Their revised full-year 2025 guidance targets a slightly tighter range of 91.0 to 95.0 MBoe/d. This output moves through established, but often third-party, infrastructure.

Here's a look at the key channel metrics and activities as of late 2025:

The commercial sales channel relies heavily on marketing and hedging to secure realized prices. Talos has actively worked to optimize this. For instance, cost-saving initiatives included work on negotiated marketing contracts. Their realized pricing power is partially secured through derivatives; as of April 30, 2025, they had hedged 42% of their remaining 2025 oil production with a weighted average floor price over $72 per barrel. This hedging strategy is designed to ensure positive free cash flow even if oil prices drop to approximately $40 per barrel on a go-forward basis.

Regarding direct engagement for Carbon Capture and Sequestration (CCS) services, you need to know that Talos Energy divested its entire low-carbon subsidiary to TotalEnergies in a deal valued around $148 million. This means the direct service channel is now primarily managed by TotalEnergies. However, Talos retains a residual channel through potential future payments. The divested Bayou Bend CCS project, which TotalEnergies is moving forward with, has a projected peak capacity of 30 mtpa and was expected to start CO2 injections by late 2025.

Field development channels involve securing and utilizing offshore drilling assets. Talos remains the fifth-largest operator in the Gulf of America. Their capital deployment for these development activities was significant, with Q3 2025 upstream capital expenditures around $105 million. They are actively developing key prospects:

• Drilling operations resumed on the Daenerys prospect, utilizing the West Vela deepwater drillship.
• The Daenerys prospect carries an estimated pre-drill gross resource potential between 100-300 MMBoe.
• For the Monument discovery, where Talos holds a 29.76% W.I., first production is projected for late 2026, potentially reaching 20-30 MBoe/d gross under facility rate constraints.

These drilling and development activities require contracting with service providers, which is reflected in their capital expenditure guidance, revised down to $480-$520 million for the full year 2025.

Finance: draft 13-week cash view by Friday.

Talos Energy Inc. (TALO) - Canvas Business Model: Customer Segments

You're looking at the core groups Talos Energy Inc. serves, which are distinct across its Upstream Exploration & Production (E&P) business and its historical/strategic involvement in the Carbon Capture and Sequestration (CCS) play. The customer base is segmented by who buys the hydrocarbons, who partners on the drilling, and who invests in the company itself.

For the E&P side, the customers are the entities taking the produced commodities. Based on Q3 2025 results, Talos Energy was moving about 95.2 thousand barrels of oil equivalent per day (MBoe/d), with oil making up 70% of that mix. This production feeds into a significant revenue base, with LTM revenue reaching $1.87B as of September 30, 2025.

The primary customer segments for Talos Energy Inc. are:

• Global and domestic crude oil and natural gas purchasers (refineries, traders).
• Large industrial CO2 emitters along the U.S. Gulf Coast (e.g., LNG, petrochemicals).
• Working interest partners seeking deepwater GOM exploration and development exposure.
• Equity and debt investors seeking exposure to a diversified energy and CCS play.

The segment dealing with crude oil and natural gas purchasers is characterized by high volume sales. While specific customer names aren't public, the scale of production, which averaged 95.2 MBoe/d in Q3 2025, dictates that these purchasers are major downstream operators like refineries or large-scale commodity traders who need consistent supply from the U.S. Gulf of Mexico and offshore Mexico assets.

For the CCS segment, even after the divestiture of the Talos Low Carbon Solutions unit, the nature of the remaining strategic play involves large emitters. The Bayou Bend CCS project, which Talos was instrumental in developing, was designed with a projected peak capacity of 30 mtpa of CO2. This capacity targets hard-to-abate industrial sources, such as petrochemical facilities near Beaumont and Port Arthur, Texas.

The working interest partner segment is highly active in the deepwater Gulf of Mexico (GOM) exploration. Talos Energy frequently co-invests in high-impact prospects, sharing both the capital risk and the operational upside. For instance, in the Daenerys prospect, Talos holds a 30% W.I. alongside partners like Red Willow (35% W.I.) and Cathexis (25% W.I.). Similarly, in the Sunspear well, Talos holds a 48.0% W.I., partnered with an entity managed by Ridgewood Energy Corporation (47.5% W.I.).

Investors are a key segment, interested in the company's dual focus on E&P and the low-carbon transition. The market's view on this dual strategy is reflected in capital allocation decisions. For example, Talos Energy repurchased 11.1 million shares for $102.7 million year-to-date as of September 30, 2025, signaling management's belief that returning capital via share buybacks is a valuable use of free cash flow, with up to 50% of annual free cash flow allocated to this purpose.

Here's a quick look at the operational scale and partnership exposure as of mid-to-late 2025:

To be fair, the specific customer mix for the commodity sales-the exact split between refineries versus traders-is proprietary information, but the production volume dictates the size of that customer group. Finance: draft 13-week cash view by Friday.

Talos Energy Inc. (TALO) - Canvas Business Model: Cost Structure

You're looking at the core outflows Talos Energy Inc. faces to keep the lights on and the wells flowing as of late 2025. It's a capital-intensive business, so the numbers reflect that heavy upfront and ongoing investment.

High capital expenditures for drilling and development are a major component. For the full year 2025, Talos Energy Inc. lowered its upstream capital expenditure guidance to a range of $480-$520 million. This was an update from prior guidance, showing a focus on capital discipline. For context, the capital expenditures for the third quarter of 2025, excluding plugging and abandonment and settled decommissioning obligations, were $104.6 million.

The ongoing costs to keep the existing assets producing fall under Lease Operating Expenses (LOE) for production and maintenance. The full-year 2025 guidance for Cash Operating Expenses and Workovers, which includes Lease Operating Expenses and Maintenance, is set between $545-$575 million. To give you a quarterly snapshot, the total lease operating expenses for the third quarter of 2025, inclusive of workover, maintenance, and insurance costs, totaled $133.7 million, which translated to $15.27 per Boe.

General and Administrative (G&A) expenses cover the corporate overhead. The full-year 2025 guidance for G&A, excluding non-cash equity-based compensation and transaction and other expenses, is projected to be between $120-$130 million. For the third quarter of 2025 specifically, the reported G&A expense was $42 million, while the trailing twelve months (TTM) ended in September 2025 showed a G&A expense of $157 million.

Here's a quick look at the key guidance figures for the year:

• Capital Expenditures (Upstream): $480 million (Low) to $520 million (High)
• Cash Operating Expenses and Workovers (Includes LOE/Maintenance): $545 million (Low) to $575 million (High)
• General & Administrative (Adjusted): $120 million (Low) to $130 million (High)
• Interest Expense (Full Year Guidance): $155 million (Low) to $165 million (High)

Regarding costs associated with CCS project development, permitting, and site characterization, specific forward-looking guidance was not explicitly itemized in the latest public cost structure tables. However, historical reporting shows that Adjusted General and Administrative expenses are often presented excluding CCS expenses, indicating these are tracked separately from core G&A for clarity.

Finally, the interest expense on total debt reflects the cost of financing operations. As of September 30, 2025, Talos Energy Inc. reported $1,250.0 million in total debt. The full-year 2025 guidance for total Interest Expense, which covers cash interest, finance lease costs, surety charges, and amortization of deferred financing costs, is budgeted between $155 million and $165 million.

You can see the structure of the full-year 2025 guidance in this table:

Finance: draft 13-week cash view by Friday.

Talos Energy Inc. (TALO) - Canvas Business Model: Revenue Streams

You're looking at the core of how Talos Energy Inc. brings in cash, which, as you know, is heavily tied to commodity prices and operational efficiency in the Gulf of Mexico. Here's the quick math on their recent performance, grounded in their Q3 2025 filings.

The primary revenue source for Talos Energy Inc. is the sale of produced crude oil and natural gas liquids (NGLs). This is directly linked to their production volumes and the realized market prices for these commodities. The company recognizes this revenue when title transfers to purchasers, typically under short-term contracts.

The second major component is the sale of natural gas. Talos Energy Inc. operates in segments including the exploration and production of oil, natural gas, and NGLs, with revenue generated from the sale of these quantities to purchasers. For the three months ended September 30, 2025, the company reported total revenues of approximately $450.05 million.

To give you a sense of scale, the Trailing Twelve Month (TTM) revenue as of September 30, 2025, stood at $1.87 Billion USD. For the first nine months of 2025, the cumulative revenue reached $1,387.83 million.

Here is a snapshot of the recent top-line financial performance:

The production profile directly informs these revenue figures. In Q3 2025, Talos Energy Inc. produced 95.2 thousand barrels of oil equivalent per day (MBoe/d). This output was characterized by:

• Oil volumes comprising approximately 70% of the total oil-equivalent production in Q3 2025.
• Liquids (oil and NGLs) making up about 76% of the total production mix in Q3 2025.
• Full-year 2025 guidance projects average daily production between 94.0 to 97.0 MBoe/d, with oil volumes expected to be around 69%.

Beyond the core hydrocarbon sales, Talos Energy Inc. has other revenue-related items that impact the final reported numbers. The company also generates revenue from production handling agreement reimbursements from partners. These reimbursements are presented as a reduction of Lease Operating Expense on the income statement, meaning they effectively boost the net realized revenue or margin. The Q3 2025 total revenues explicitly include these reimbursements.

Looking forward, the company's structure includes a Carbon Capture and Storage (CCS) segment, which represents a potential future revenue stream. This stream is anticipated to come from service fees charged for sequestration activities and the realization of 45Q tax credits, though specific dollar amounts recognized in the Q3 2025 results are not broken out separately in the top-line revenue figure provided.

Finance: draft 13-week cash view by Friday.