SeekingAlpha  Apr 3  Comment 
By Stephen Simpson, CFA: "Bigger is better" is the operating mindset for many corporate executives, but that's not always the winning strategy in the energy sector. With share price performance often closely tied to debt-adjusted production...
StreetInsider.com  Mar 20  Comment 
UPGRADES TD Securities raises Talisman Energy (NYSE: TLM) from Hold to Buy with a price target of $14. Click Here for more color. Goldman Sachs boosts NRG Energy (NYSE: NRG) from Neutral to Conviction Buy and moves its price target from $30 up...
OilVoice  Mar 13  Comment 
Talisman Energy Inc. TSXTLM NYSETLM announced the completion of the sale of approximately 127000 net acres of its Montney position in northeast British Columbia to Progress Energy Canada Ltd. f
Benzinga  Mar 7  Comment 
Talisman Energy (NYSE: TLM) shares fell 0.50% to reach a new 52-week low of $9.95. Talisman Energy shares have dropped 17.22% over the past 52 weeks, while the S&P 500 index has gained 21.01% in the same period. Lucas Energy (NYSE: LEI) shares...
Mondo Visione  Mar 5  Comment 
SmartStream Technologies, the financial Transaction Lifecycle Management specialist, today announced the importance of intraday liquidity in the trading environment, following the release of its TLM Cash and Liquidity Management 2.5 solution and...
SeekingAlpha  Feb 13  Comment 
Talisman Energy Inc. (TLM) Q4 2013 Earnings Conference Call February 12, 2014 01:00 p.m. ET Executives Harold N. Kvisle – President, CEO, Director and Member of Executive Committee Paul R. Smith – EVP, Finance and CFO Paul C....
Wall Street Journal  Feb 12  Comment 
The gas and oil producer posted a fourth-quarter loss of $1 billion after recording asset-impairment charges totaling more than $800 million, and said it would continue to shed assets to shore up its balance sheet.
DailyFinance  Feb 12  Comment 
CALGARY, ALBERTA -- (Marketwired) -- 02/12/14 -- Talisman Energy Inc. (Talisman) (TSX: TLM) (NYSE: TLM) has announced its capital spending program and expected operating results for 2014. All values in this press release are in US$ unless...
DailyFinance  Feb 12  Comment 
CALGARY, ALBERTA -- (Marketwired) -- 02/12/14 -- Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) reported its operating and unaudited financial results for 2013. All values are in US$ unless otherwise stated. "We continue to build a strong...


Talisman Energy (NYSE:TLM) is primarily an Oil and gas exploration and production company with some natural gas midstream operations in Canada. Their operations can be segmented into 3 sections: North America (primarily Canadian natural gas), North Sea (mostly oil) and Southeast Asia (mostly oil with some nat. gas). They also have non-operating interests in African energy plays.

This is a relatively more exciting company in the oil space. Almost all of the growth visibility is mired in nasty oil sands, politically hostile territories, deep beneath the ocean or in the hands of national oil companies who put politics ahead of profits. Throw in an escalating cost environment and the outlook for oil companies is highly uncertain, even as the outlook for the commodity couldn't be stronger.

Company Overview

Like many growing resource companies, TLM's capital expenditure is uneven, swinging from heavy outlays one year to big free cash flow (FCF) another year. At some point, the company has to be able to convert its assets into cash for the owners.

Business Segments

In 2009, TLM earned a total of $6.2 billion in total revenues. This was a decline from its 2008 total revenues of $8.1 billion. As a result, this had an adverse effect on TLM's net income. Between 2008 and 2009, TLM's net income declined from a net profit of $2.75 billion in 2008 to a net loss of $675 million in 2009.

Trends and Forces

Divesting Non core assets

Looking at their capital structure, the company is in the process of divesting non-core assets. They're in the midst of a share buyback program and plan on using sales proceeds to pay down some of the debt and for buybacks. The company pays a small dividend (1% yield on 8% payout ratio) but has increased it near 20% annually over the last few years. The trend of divesting non core assets should help the company improve their overall profitability as it allows TLM to focus on areas where they have the most expertise.

Diverse Portfolio

TLM has a widely diverse portfolio. For instance, they have a big natural gas component in Canada, which is expected perform well as oil sands production ramps up. They also have light oil crude assets in the North Sea and Southeast Asia are in high-demand with good price realizations. Furthermore, Talisman has divested their oil sands assets and now has no bitumen reserves in its portfolio. The diversity of TLM's products as well as its geographic diversity makes TLM's risk lower than it otherwise would be.


EnCana – refocused on Canadian oil sands projects and North American natural gas

  • Huge gas wells drilled in the Deep Bossier region of TX
  • Partnering with ConocoPhillips in the oil sands play
  • Oil sands subject to significant cost overruns
  • Rockies exposure not ideal

Devon Energy - attractively valued but paying more for revenues; more balanced gas/oil portfolio Barnett Shale- holdings should provide stable reserves replacement for years

  • good net margins
  • More exposure to oil in Gulf of Mexico
  • Growth primarily through acquisitions ($5.5 billion in goodwill)
  • Riskier exploration plays (10,000 feet deepwater Jack project, Brazilian offshore, etc).
  • Jackfish oil sands project in Alberta subject to oil sands difficulties (higher costs, nat. gas and water shortages, etc)


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