Talos Energy Publishes Annual Sustainability and TCFD Reports

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Nov 14, 2023, 06:58 ET

HOUSTON, Nov. 14, 2023 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today published its annual Sustainability Report and Task Force on Climate-related Financial Disclosures ("TCFD") Report for the 2022 calendar year. The reports highlight Talos's continued commitment to transparency, emissions reduction efforts, and sustainability and governance improvements across its growing upstream and low carbon solutions businesses.

Talos's reports were developed with reference to the Sustainability Accounting Standards Board ("SASB"), Global Reporting Initiative ("GRI"), United Nations' Sustainability Development Goals ("UN SDG") and TCFD frameworks. The reports can be read here: https://www.talosenergy.com/sustainability.

Executive Vice President, Low Carbon Strategy and Chief Sustainability Officer Robin Fielder commented: "I am excited to announce the publication of our annual Sustainability and TCFD Reports and share the progress on our sustainability strategy as we celebrate our five-year anniversary as a publicly traded company on the New York Stock Exchange. In keeping with our mission to provide energy prosperity to improve lives, our strategy is focused on delivering conventional energy resources and low-carbon solutions in a safe, reliable, environmentally responsible, and profitable way. As we continue to advance the energy company of tomorrow, we remain committed to enhanced reporting and transparency while delivering value to our stakeholders."

Sustainability and Governance Highlights

Realized a ~30% reduction in Scope 1 GHG emissions intensity ratio for 2022 compared to the 2018 baseline year⁽¹⁾.
Reduced Scope 2 greenhouse gas emissions by ~64% from the 2018 baseline year to 2022⁽²⁾.
Committed to further reducing Talos's GHG emissions on an absolute basis by 15% from Talos's new 2022 baseline by 2030⁽³⁾.
Attained the Lowest Total Recordable Incident Rate in Talos's history in 2022.
Achieved a Zero Lost Time Incident Rate for the second consecutive year in 2022.
Expanded the Talos Low Carbon Solutions business and secured carbon capture projects supporting an estimated 1.7 billion tons of gross prospective storage resources.
Transitioned to a declassified Board in 2023, with all directors elected annually to serve one-year terms beginning in 2025.
Achieved a rating of "A" (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment in May 2023.
Received the 2023 Hart Energy ESG Award for Public Producer, one of two recipients in the public producer category based on Talos's 2022 efforts.
Recognized as a Top Workplace in 2023 by the Houston Chronicle for 11 consecutive years.

ABOUT TALOS ENERGY

Talos Energy (NYSE: TALO) is a technically driven, innovative, independent energy company focused on safely and efficiently maximizing long-term value through its Upstream Exploration & Production and Low Carbon Solutions businesses. We currently have operations in the United States and offshore Mexico. We leverage decades of technical and offshore operational expertise to acquire, explore, and produce assets in key geological trends while developing opportunities to reduce industrial emissions through carbon capture and storage projects along the U.S. Gulf Coast. For more information, visit www.talosenergy.com.

INVESTOR RELATIONS CONTACT

[email protected]

FORWARD-LOOKING STATEMENTS

This communication may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this communication, regarding our strategy, operations and initiatives, targets and goals, prospects, plans and objectives of management are forward-looking statements. When used in this communication, the words "will," "could," "believe," "anticipate," "intend," "estimate," "expect," "endeavor," "strive," "project," "forecast," "may," "objective," "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

Prospective subsurface storage resource estimates for carbon capture and sequestration projects are based solely on preliminary internal estimates and are not verified by any third-party experts. The accuracy of any such estimates depends on the quality of available data, unknown geologic risks, and the interpretation of data. The results of further evaluation activities and the permitting process may require revisions of estimates. Accordingly, estimates of storage resource may differ significantly from the actual quantities of CO₂ that can ultimately be stored. The SEC has not specified how subsurface storage estimates should be calculated. Therefore, the estimates in this communication have not been calculated in accordance with SEC, reserve engineering or accounting standards. We use the term "prospective storage resource," outlined by the CO2 Storage Resources Management System ("SRMS"), which was modeled after the Society of Petroleum Engineers ("SPE") Petroleum Resources Management System ("PRMS"), to represent our internally estimated CO2 storage.

We caution you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, the success of the Company's short-, medium- and long-term sustainability targets, including greenhouse gas emission reduction plans or goals; the continued development, implementation or continuation of practices, programs, policies, initiatives, plans, goals, or targets discussed herein or the reports; the effects of climate change and the energy transition; changes in laws and regulations including international treaties and laws and regulations regarding the sustainability focus area; and the other risks discussed in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

Should one or more of the risks or uncertainties described herein occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this communication.

⁽¹⁾ 2021-2022 Scope 1 emissions data is pro forma with the EnVen acquisition. 2019-2020 data is Talos emissions only. EnVen did not collect comparable emissions data before 2021. All data calculated from 2018 baseline is based on the GOADS methodology at the time. For further information, please refer to our 2023 Sustainability Report.
⁽²⁾ Scope 2 calculation is based on Talos-only data. EnVen did not calculate Scope 2 emissions prior to 2022. For further information, please refer to our 2023 Sustainability Report.
⁽³⁾ 2022-2030 data is combined pro forma with the EnVen acquisition. Scope 1 and Scope 2 emissions.

SOURCE Talos Energy