TALOS ENERGY INC

Item 1. Legal Proceedings

From time to time, the Company is involved in litigation, disputes related to our business, regulatory examinations and administrative proceedings primarily arising in the ordinary course of business in jurisdictions in which the Company does business. Although the outcome of these matters cannot be predicted with certainty, the Company’s management believes none of these matters, either individually or in the aggregate, would have a material effect upon the Company’s financial position; however, an unfavorable outcome could have a material adverse effect on the Company’s results from operations for a specific interim period or year.

With regard to the previously disclosed legal proceeding filed against the Company and QuarterNorth by U.S. Specialty Insurance Company (“USSI”) concerning approximately $80.0 million in surety bonds issued by USSI, the Company has replaced or canceled all but approximately $2.5 million of those bonds with other surety companies as of September 30, 2024 and expects to replace or cancel the remaining bonds in the near future. We expect that the legal proceeding will be resolved at that time.

Please see the Company’s previous Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 for other legal proceedings arising or resolved during 2024.

There have been no additional material developments with respect to the information previously reported under Part I, Item 3. “Legal Proceedings” of our 2023 Annual Report.