CALGARY, ALBERTA (NYSE: TLM) reported its operating and
financial results for the first quarter of 2008.
- Cash flow(1) during the quarter was $1.2 billion, an increase
of 23% from a year ago. Cash flow from continuing operations(1) was
also $1.2 billion, up 24% from the same period a year ago and up
17% from the fourth quarter of 2007.
- Net income was $466 million, down 10% from a year earlier,
mainly due to gains on asset sales in the prior year.
- Earnings from continuing operations(1) were $476 million, up
76% compared to the first quarter in 2007.
- Production averaged 419,000 boe/d, 11% below the first quarter
of 2007, and 6% below the previous quarter, mainly due to the sale
of non-core assets, which produced 36,000 boe/d in the first
quarter of 2007. Production from continuing operations averaged
411,000 boe/d, 3% below the same quarter last year.
- Netbacks were up 35% from a year earlier, reaching a record
$45.66/boe.
- Net debt(1) at quarter end was $4.2 billion, down from $4.3
billion at December 31, 2007.
- Subsequent to the end of the quarter, Talisman entered into
agreements for the sale of non-strategic assets in Denmark and Lac
La Biche.
"I am pleased by the strong financial results from our
continuing operations," said John Manzoni, President & CEO. "We
also had solid operational performance in the quarter. Production
was in line with expectations and higher earnings and cash flow
numbers reflect increased prices and netbacks, especially in the
North Sea.
"Production was down from the fourth quarter due mainly to
completion of the Brae non-core asset sale and planned shutdowns in
the UK. We remain confident in our earlier projection of 3-8%
growth from continuing operations in 2008. The second half of the
year will benefit from startups of the Northern Fields (Southeast
Asia) and Rev (Norway) development projects, as well as increased
production from Tweedsmuir.
"Strong cash flow in the quarter allowed us to reduce debt,
although exchange rate movements acted against us slightly.
"During the quarter, we continued to build our position in the
Outer Foothills with the acquisition of RSX Energy, which will
provide many drilling locations. In line with our intent to focus
our portfolio further on our core areas, we recently entered into
agreements for the sale of our assets in Denmark and Lac La Biche.
Work on the strategy is going smoothly and, as previously
indicated, we will be providing details in the third week of
May."
(1) The terms "cash flow", "cash flow from continuing
operations", "net debt" and "earnings from continuing operations"
are non-GAAP measures. Please see the advisories and
reconciliations elsewhere in this press release.
Financial Results
Three Months Ended
March 31
-------------------
2008 2007
-------------------
Cash flow ($ million) 1,232 1,004
-------------------
Cash flow per share(1) 1.21 0.96
-------------------
Net income ($ million) 466 520
-------------------
Net income per share 0.46 0.49
-------------------
Earnings from continuing operations ($ million) 476 270
-------------------
Earnings from continuing operations(2) (per share) 0.47 0.26
-------------------
Average shares outstanding (million) 1,019 1,051
-------------------
Cash flow for the quarter was $1.2 billion, an increase of 23%
from a year earlier. Substantial increases in world oil prices more
than offset the stronger Canadian dollar and Talisman's lower
production volumes. Cash flow per share increased 26%, reflecting
the impact of share repurchases in 2007.
Cash flow from continuing operations was also $1.2 billion, up
24% from 2007.
Net income was $466 million, down from $520 million a year ago,
due principally to a $277 million gain on asset sales in the prior
year.
Earnings from continuing operations totalled $476 million, an
increase from $270 million a year earlier and $137 million in the
fourth quarter. The increase in earnings relative to last year is
largely due to higher prices, lower DD&A and dry hole
costs.
The average number of shares outstanding was down 3%, reflecting
share repurchases in 2007. The Company did not buy back shares in
the first quarter of 2008.
At March 31, Talisman's long-term debt was $4.4 billion ($4.2
billion net of cash), down from $4.9 billion ($4.3 billion net of
cash) at December 31, 2007.
The Company spent $1,013 million on exploration and development
during the quarter, down from the $1,125 million spent in the
previous quarter and $1,297 million in the same quarter of the
previous year. In March, the Company acquired 100% of the common
shares of RSX Energy Inc. for $101 million.
(2) The terms "cash flow per share" and "earnings from
continuing operations per share" are non-GAAP measures. Please see
the advisories and reconciliations elsewhere in this press
release.
Production
Three Months Ended
March 31
-------------------
2008 2007
-------------------
Oil and liquids (bbls/d) 216,625 251,893
-------------------
Natural gas (mmcf/d) 1,216 1,309
-------------------
Total (mboe/d) 419 470
-------------------
Continuing operations (mboe/d) 411 425
-------------------
Production for the quarter averaged 419,000 boe/d, 11% below the
same quarter of 2007 and 6% below the previous quarter. The main
reason for these lower volumes were non-core asset sales throughout
2007, including the sale of Talisman's interests in the Brae area
of the UK North Sea, which closed at year end.
Production from continuing operations (excluding production from
assets sold and held for sale) averaged 411,000 boe/d during the
quarter, down 3% from both the previous quarter and a year ago. The
major reason for lower production from continuing operations was
maintenance shutdowns in the North Sea.
The Company still expects a production range of 435,000-460,000
boe/d for the year. This forecast now includes non-core asset sales
of approximately 4,100 boe/d (Denmark, Lac La Biche), which will be
completed in the first half of the year and were not contemplated
at the time of the original production guidance.
Netbacks
Three Months Ended
$/boe March 31
-------------------
2008 2007
-------------------
Sales 73.01 55.52
-------------------
Hedging gain (loss) (0.26) 1.09
-------------------
Royalty 12.87 9.74
-------------------
Transportation 1.14 1.40
-------------------
Operating expenses 13.08 11.70
-------------------
Netback 45.66 33.77
-------------------
Oil & liquids netback ($/bbl) 58.76 38.12
-------------------
Natural gas netback ($/mcf) 5.28 4.79
-------------------
Netbacks increased to a record $45.66/boe, up 35% or $11.89/boe
from the first quarter of 2007. The main reason was a 68% increase
in the benchmark WTI oil price, which averaged US$97.90/bbl in the
quarter. A stronger Canadian dollar versus the US$ (up 18%)
mitigated this somewhat. NYMEX and AECO natural gas prices were
slightly higher than a year ago.
Talisman's average royalty rate was relatively unchanged at
approximately 15% during the quarter.
Unit operating costs increased 12% compared to the previous
year. UK unit operating costs were up 27% year over year primarily
reflecting planned maintenance turnarounds (resulting in lower
volumes and higher costs) and an unplanned shutdown due to weather.
However, netbacks in the UK increased 67%, averaging $62.77/boe
during the quarter.
North America
In North America, Talisman's production averaged 181,547 boe/d
over the quarter, down 10% from the same period in 2007 and 2% from
the previous quarter, largely due to non-core asset sales in 2007.
Production from continuing operations was down 1% from the same
period in 2007 primarily due to a non-operated plant outage and
down 1% from the previous quarter, due mainly to the planned
facility maintenance in the Alberta Foothills.
Talisman drilled 112 gross gas wells during the quarter,
approximately 13% less than the number drilled in the same period
last year. Of the gas wells drilled in the quarter, 76 were
operated by Talisman.
Canada
New production records were set in Monkman, reaching 142 mmcf/d
(net sales gas) by the end of March with production in the quarter
averaging 120 mmcf/d, 4% above the first quarter of 2007. The
previously announced Federal d-28-H/94-B-7 well came on production
March 19, at a rate of 19 mmcf/d sales gas (50% working interest).
The recently completed multizone Brazion a-26-E well came on
production April 19 and is forecast to produce at a constrained
rate of 24 mmcf/d sales gas (80% working interest).
The Company also saw production increases over the same period
in 2007 in Bigstone/Wild River (9%) and Alberta Foothills (12%). In
the Alberta Foothills, the Findley 11-25-57-06W6/02 well came on
production on March 15 at 12 mmcf/d sales gas (100% working
interest). The Cabin Creek 10-21-56-04W6 well (100% Talisman) was
tested at 13.6 mmcf/d (gross raw gas) and is expected to come on
production in the third quarter of 2008.
Talisman drilled five wells in the Outer Foothills in the
quarter. With recent tie-ins, production from the Outer Foothills
is expected to be approximately 35 mmcf/d sales gas (Talisman
working interest) by mid-year.
In Greater Arch (Montney Core), the Pouce Coupe 7-7-78-10W6M
horizontal well came on production March 13 producing an average of
3.6 mmcf/d sales gas (100% Talisman).
Talisman is encouraged by early Bakken development drilling
results in the Viewfield area. Three gross horizontal wells have
been drilled to date, two of which are on production at rates
averaging 190 bbls/d per well (100% working interest).
Talisman's Midstream Operations transported and processed 612
mmcf/d in the quarter, 10% above the first quarter of 2007.
In March 2008, the Company acquired RSX Energy Inc., which has
natural gas assets located in the Outer Foothills (Hinton area) and
Peace River Arch areas of Northern Alberta.
In late April, Talisman entered into an agreement to sell its
interest in its non-strategic Lac La Biche property in northeast
Alberta. Production from the property in 2007 averaged 4,586
boe/d.
United States
In Wyoming, the Bear Canyon well reached total depth of 16,517
feet on March 28. The rig is being moved off the location due to
wildlife considerations and will be brought back to test later in
2008. The next well in the program, in Utah, is expected to spud
early in May.
United Kingdom
Production in the UK averaged 89,871 boe/d, down 25% from a year
ago, primarily due to non-core asset sales. Production from
continuing operations in the UK averaged 88,210 boe/d over the
quarter, down 12% from the same period in 2007 and 13% from the
fourth quarter 2007. Production decreased from 2007 primarily due
to major planned annual maintenance shutdowns at Montrose/Arbroath,
Buchan and Claymore, as well as an unplanned shutdown at Ross/Blake
due to weather.
The reductions were partially offset by new production from
Tweedsmuir and Enoch, which came onstream in the second quarter
2007 and from Duart and Blane, which came onstream in the third
quarter of 2007.
First quarter unit operating costs of $29.01/boe were up 27%
compared to the first quarter of 2007, due to planned shutdowns and
disposal of the Brae assets. Unit operating costs are expected to
decline significantly during the second half of 2008 as volumes
increase, particularly at Tweedsmuir.
Tweedsmuir production increased over the fourth quarter of 2007
as the commissioning of Tweedsmuir progressed. Since the end of the
first quarter, production rates of up to 30,000 boe/d have been
achieved and full production is anticipated at the end of the
second quarter.
Appraisal drilling was completed at Auk North in the quarter and
planning for Auk North and Auk South development is continuing.
Appraisal drilling was completed on the Cayley discovery located
in the Montrose/Arbroath area, west of the Montrose platform. The
Company booked 21 mmboe of net probable reserves associated with
the discovery at the end of 2007. Talisman has a 58.97% working
interest in the field. Evaluation of development options and plans
has started.
Scandinavia
Production in Scandinavia averaged 36,572 boe/d during the
quarter, up 7% over the first quarter of 2007 and 7% from the
previous quarter. Production from continuing operations averaged
34,429 boe/d, up 10% from the same period in 2007 and 8% from the
fourth quarter of 2007. The production increase over 2007 was due
to new production from Blane, which came onstream in the third
quarter of 2007, plus good performance from successful development
wells drilled at Gyda and Brage.
Unit operating costs remained relatively unchanged at $22.25/boe
compared to 2007, as increases in production were matched by minor
increases in costs.
Development of the Rev Field is continuing on schedule, with
first production expected mid-2008. Construction at the Yme field
redevelopment project continues and first oil is scheduled for the
second half of 2009.
In late April, Talisman entered into an agreement to sell its
interests in the Siri field in the Danish sector of the North Sea
for US$83 million. Talisman's production from the Siri field for
2007 averaged approximately 2,600 boe/d.
Southeast Asia
In Southeast Asia, production averaged 89,262 boe/d, 5% lower
than the same period last year and slightly above last quarter.
Indonesian production averaged 52,888 boe/d, 15% higher than the
same period last year, primarily due to increased West Java natural
gas sales and 1% lower than the last quarter, primarily due to
lower sales to Singapore. In Malaysia/Vietnam, production averaged
34,384 boe/d, lower than the same period last year mainly due to
natural declines and 2% higher than the previous quarter when there
was a planned production shutdown.
Production in Australia was 1,989 bbls/d, 74% lower than the
same period last year primarily due to riser failures and natural
declines and 23% higher than the last quarter with Corallina
production being re-instated at restricted rates in March. Full
production is expected in the fourth quarter.
In the PM-3 CAA Southern Fields, the Flash Gas Compressor on the
Bunga Raya A platform has been fully commissioned and is currently
adding 17 mmcf/d gross sales gas. In the Northern Fields, the
Company expects to commence drilling gas wells in late April for
the early gas startup currently scheduled to commence mid-2008.
Four wells were drilled in the quarter, with results meeting or
exceeding expectations in each case. In addition, facilities
installation and pipe laying operations continued during the first
quarter in preparation of first oil in the first quarter 2009.
In Indonesia, West Java gas take increased from 50 mmcf/d to an
average of 80 mmcf/d gross sales gas. The Suban 10 and 11 wells
flowed at a record combined rate of 311 mmcf/d gross sales gas in
early February.
In Vietnam, the Song Doc development pre-drilling program was
completed in early January with five production wells drilled and
suspended. Installation of the jackets and topsides for the Song
Doc-A platform were completed at the end of the first quarter.
Phase 2 drilling operations will begin in late May with the tie
back and completion of the five production wells and the drilling
and completion of an additional three production and water injector
wells and up to three appraisal wells. First oil is expected with
the arrival of the FPSO towards the end of the third quarter of
2008.
The reserves assessment report for the Hai Su Trang development
has been approved by the government of Vietnam as a precursor to
development. An appraisal plan for the Hai Su Den discovery is
being prepared for government approval.
The Hai Su Nau and Hai Su Bac exploration wells spud in the
first quarter. The Hai Su Bac well has now reached target depth and
encountered oil and gas, however the accumulation is believed to be
small.
In Australia, the Kitan-1 exploration well was drilled and the
new discovery flowed 6,100 bbls/d on drill stem test. A subsequent
appraisal well was successfully drilled and subsequently suspended.
This discovery is currently being evaluated for commercial
development.
North Africa and South America
In North Africa, production averaged 16,342 boe/d, a 2% increase
over the same period in 2007. Production in Algeria increased over
2007 due to the tie-in of new production and injection wells as
part of the Greater MLN Phase 2 project. The Phase 2 expanded gas
injection facilities are being commissioned.
In Trinidad and Tobago, production averaged 5,690 bbls/d, a 6%
increase over the same period a year earlier, as increases from
2007 development drilling were partly offset by natural declines.
Pre-development activities continue for the Angostura Phase 2 gas
development project.
In Peru, preparations continue towards drilling an appraisal
well at the Situche discovery, which is expected to spud at the end
of 2008.
Talisman Energy Inc. is an independent upstream oil and gas
company headquartered in Calgary, Alberta, Canada. The Company and
its subsidiaries have operations in North America, the North Sea,
Southeast Asia and North Africa. Talisman's subsidiaries are also
active in a number of other international areas. Talisman is
committed to conducting its business in an ethically, socially and
environmentally responsible manner. The Company is a participant in
the United Nations Global Compact and included in the Dow Jones
Sustainability (North America) Index. Talisman's shares are listed
on the Toronto Stock Exchange in Canada and the New York Stock
Exchange in the United States under the symbol TLM.
Earnings from Continuing Operations
Earnings from operations adjusts for significant one-time events
as well as other non-operational impacts on earnings, such as the
mark-to-market effect of changes in share prices on stock based
compensation expense, unrealized mark-to-market gains and losses on
commodity derivatives and changes to tax rates. This calculation
does not reflect differing accounting policies and conventions
between companies. All amounts are reported on an after-tax
basis.
($ million, except per share amounts)
Three months ended
March 31, 2008 2007
----------------------------------------------------------------------------
Net income 466 520
----------------------------------------------------------------------------
Operating income from discontinued operations 10 38
Gain on disposition of discontinued operations (3) 277
----------------------------------------------------------------------------
Net income from discontinued operations 6 315
----------------------------------------------------------------------------
Net income from continuing operations 459 205
Unrealized loss on commodity derivatives(1)
(tax adjusted) 51 17
Unrealized loss on Canadian Oil Sands Trust units
(tax adjusted) - 10
Stock-based compensation (2) (tax adjusted) (7) 29
Future tax charge (recovery) of unrealized foreign
exchange gains (losses) on foreign denominated debt (3) (27) 9
----------------------------------------------------------------------------
Earnings from continuing operations (4) 476 270
----------------------------------------------------------------------------
Per share (4) 0.47 0.26
----------------------------------------------------------------------------
1. Unrealized losses on commodity derivatives relate to the change in the
period of the mark-to-market value of the Company's outstanding commodity
derivatives.
2. Stock-based compensation expense relates to the mark-to-market value of
the Company's outstanding stock options and cash units at March 31. The
Company's stock-based compensation expense is based on the difference
between the Company's share price and its stock options or cash units
exercise price.
3. Tax adjustments reflect future taxes relating to unrealized foreign
exchange gains and losses associated with the impact of fluctuations in
the Canadian dollar on foreign denominated debt.
4. This is a non-GAAP measure. Please refer to the section in this press
release entitled Non-GAAP Measures for further explanation and details.
Cash Flow
Below is a reconciliation of cash provided by operating
activities calculated in accordance with generally accepted
accounting principles (GAAP) to cash flow and cash flow from
continuing operations (which are non-GAAP measures of financial
performance).
($ million) Three months ended
--------------------
March 31, 2008 2007
----------------------------------------------------------------------------
Cash provided by operating activities 1,312 1,089
Changes in non-cash working capital (80) (85)
----------------------------------------------------------------------------
Cash flow 1,232 1,004
Cash provided by discontinued operations (23) (31)
----------------------------------------------------------------------------
Cash flow from continuing operations 1,209 973
----------------------------------------------------------------------------
Forward-Looking Information
This press release contains information that constitutes
"forward-looking information" or "forward-looking statements"
(collectively "forward-looking information") within the meaning of
applicable securities legislation. This forward-looking information
includes, among others, statements regarding:
- estimates of future sales, production, production growth and
operations performance;
- business plans for drilling, exploration, development,
redevelopment and estimated timing;
- business strategy, business strategy review and plans;
- estimated timing and results of new projects, including the
timing of new production;
- expected movements in unit operating costs;
- expected dispositions and timing; and
- other expectations, beliefs, plans, goals, objectives,
assumptions, information and statements about possible future
events, conditions, results of operations or performance.
Often, but not always, forward-looking information uses words or
phrases such as: "expects", "does not expect" or "is expected",
"anticipates" or "does not anticipate", "plans" or "planned",
"estimates" or "estimated", "projects" or "projected", "forecasts"
or "forecasted", "believes", "intends", "likely", "possible",
"probable", "scheduled", "positioned", "goal", "objective" or
states that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Various assumptions were used in drawing the conclusions or
making the forecasts and projections contained in the
forward-looking information contained in this press release.
Information regarding oil and gas reserves, business plans for
drilling, exploration, development and appraisal assumes that the
extraction of crude oil, natural gas and natural gas liquids
remains economic.
Undue reliance should not be placed on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks which could cause actual results to vary and in some
instances to differ materially from those anticipated by Talisman
and described in the forward-looking information contained in this
press release. The material risk factors include, but are not
limited to:
- the risks of the oil and gas industry, such as operational
risks in exploring for, developing and producing crude oil and
natural gas, market demand and unpredictable facilities
outages;
- risks and uncertainties involving geology of oil and gas
deposits;
- the uncertainty of reserves and resources estimates, reserves
life and underlying reservoir risk;
- the uncertainty of estimates and projections relating to
production, costs and expenses;
- potential delays or changes in plans with respect to
exploration or development projects or capital expenditures;
- the risk that adequate pipeline capacity to transport gas to
market may not be available;
- fluctuations in oil and gas prices, foreign currency exchange
rates and interest rates;
- the outcome and effects of any future acquisitions and
dispositions;
- health, safety and environmental risks;
- uncertainties as to the availability and cost of financing and
changes in capital markets;
- risks in conducting foreign operations (for example, political
and fiscal instability or the possibility of civil unrest or
military action);
- competitive actions of other companies, including increased
competition from other oil and gas companies;
- changes in general economic and business conditions;
- the effect of acts of, or actions against, international
terrorism;
- the possibility that government policies or laws may change or
governmental approvals may be delayed or withheld;
- results of the Company's risk mitigation strategies, including
insurance and any hedging activities; and
- the Company's ability to implement its business strategy.
The foregoing list of risk factors is not exhaustive. Additional
information on these and other factors which could affect the
Company's operations or financial results are included in the
Company's most recent Annual Information Form. In addition,
information is available in the Company's other reports on file
with Canadian securities regulatory authorities and the United
States Securities and Exchange Commission (SEC).
Forward-looking information is based on the estimates and
opinions of the Company's management at the time the information is
presented. The Company assumes no obligation to update
forward-looking information should circumstances or management's
estimates or opinions change, except as required by law.
Reserves Data and Other Oil and Gas Information
Talisman's disclosure of reserves data and other oil and gas
information is made in reliance on an exemption granted to Talisman
by Canadian securities regulatory authorities, which permits
Talisman to provide disclosure in accordance with US disclosure
requirements. The information provided by Talisman may differ from
the corresponding information prepared in accordance with Canadian
disclosure standards under National Instrument 51-101 (NI 51-101).
Probable reserves, which Talisman discloses voluntarily, have been
calculated using the definition of probable reserves set out by the
society of Petroleum Engineers/World Petroleum Congress
('SPE/WPC'). Further information on the differences between the US
requirements and the NI 51-101 requirements is set forth under the
heading 'Note Regarding Reserves Data and Other Oil and Gas
Information' in Talisman's Annual Information Form.
In this press release, Talisman makes reference to probable
reserves in the Montrose Arbroath area. At year end 2007, Talisman
had 166 mmboe probable reserves in the UK. The estimates of
reserves and future net revenue for individual properties may not
reflect the same confidence level as estimates of reserves and
future net revenue for all properties, due to the effects of
aggregation. The exemption granted to Talisman also permits it to
disclose internally evaluated reserves data. Any reserves data in
this press release reflects Talisman's estimates of its reserves.
While Talisman annually obtains an independent audit of a portion
of its reserves, no independent qualified reserves evaluator or
auditor was involved in the preparation of the reserves data
disclosed in this press release.
Oil and Gas Information
Throughout this press release, the calculation of barrels of oil
equivalent (boe) is at a conversion rate of six thousand cubic feet
(mcf) of natural gas for one barrel of oil and is based on an
energy equivalence conversion method. Boe may be misleading,
particularly if used in isolation. A boe conversion ratio of 6
mcf:1 bbl is based on an energy equivalence conversion method
primarily applicable at the burner tip and does not represent a
value equivalence at the wellhead.
Talisman makes reference to production volumes throughout this
press release. Where not otherwise indicated, such production
volumes are stated on a gross basis, which means they are stated
prior to the deduction of royalties and similar payments. In the
US, net production volumes are reported after the deduction of
these amounts.
Canadian Dollars and GAAP
Dollar amounts are presented in Canadian dollars unless
otherwise indicated. Unless otherwise indicated, financial
information is presented in accordance with Canadian generally
accepted accounting principles that may differ from generally
accepted accounting principles in the US. Talisman's Consolidated
Financial Statements as at and for the year ended December 31,
2007, which were filed with Canadian and US securities authorities
on March 7, 2008, contain information concerning differences
between Canadian and US generally accepted accounting
principles.
Non-GAAP Financial Measures
Included in this press release are references to financial
measures commonly used in the oil and gas industry, such as cash
flow, cash flow per share, cash flow from continuing operations,
earnings from continuing operations, earnings from continuing
operations per share and net debt. These terms are not defined by
GAAP in either Canada or the US. Consequently, these are referred
to as non-GAAP measures. Talisman's reported results of cash flow,
cash flow from continuing operations, earnings from continuing
operations and net debt may not be comparable to similarly titled
measures by other companies.
Cash flow, as commonly used in the oil and gas industry,
represents net income before exploration costs, DD&A, future
taxes and other non-cash expenses. Cash flow is used by the Company
to assess operating results between years and between peer
companies that use different accounting policies. Cash flow should
not be considered an alternative to, or more meaningful than, cash
provided by operating, investing and financing activities or net
income as determined in accordance with Canadian GAAP as an
indicator of the Company's performance or liquidity.
Earnings from continuing operations is calculated by adjusting
the Company's net income per the financial statements, for certain
items of a non-operational nature, on an after-tax basis. The
Company uses this information to evaluate performance of core
operational activities on a comparable basis between periods.
Net debt is calculated by adjusting the Company's long-term debt
per the financial statements for bank indebtedness, cash and cash
equivalents. The Company uses this information to assess its true
debt position since cash could potentially be used to pay down
long-term debt.
Talisman Energy Inc.
Highlights
(unaudited)
Three months ended
March 31
2008 2007
----------------------------------------------------------------------------
Financial
(millions of C$ unless otherwise stated)
Cash flow (1) 1,232 1,004
Net income 466 520
Exploration and development expenditures 1,013 1,297
Per common share (C$)
Cash flow (1) 1.21 0.96
Net income 0.46 0.49
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Production
(daily average)
Oil and liquids (bbls/d)
North America 40,089 47,270
UK 84,013 101,748
Scandinavia 33,335 31,912
Southeast Asia 37,226 49,549
Other 21,962 21,308
Synthetic oil - 106
----------------------------------------------------------------------------
Total oil and liquids 216,625 251,893
----------------------------------------------------------------------------
Natural gas (mmcf/d)
North America 850 923
UK 35 105
Scandinavia 19 14
Southeast Asia 312 267
----------------------------------------------------------------------------
Total natural gas 1,216 1,309
----------------------------------------------------------------------------
Total mboe/d (2) 419 470
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Prices (3)
Oil and liquids (C$/bbl)
North America 80.79 53.55
UK 97.33 64.73
Scandinavia 99.30 64.64
Southeast Asia 99.66 77.10
Other 102.48 69.41
----------------------------------------------------------------------------
Total oil and liquids 95.49 65.46
----------------------------------------------------------------------------
Natural gas (C$/mcf)
North America 7.86 7.66
UK 8.52 7.72
Scandinavia 5.78 4.44
Southeast Asia 9.07 6.29
----------------------------------------------------------------------------
Total natural gas 8.16 7.35
----------------------------------------------------------------------------
Total (C$/boe) (includes synthetic) (2) 73.01 55.52
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Cash flow and cash flow per share are non-GAAP measures.
(2) Barrels of oil equivalent (boe) is calculated at a conversion rate of
six thousand cubic feet (mcf) of natural gas for one barrel of oil.
(3) Prices are before hedging.
Includes the results from continuing and discontinued operations.
Talisman Energy Inc.
Consolidated Balance Sheets
(unaudited)
March 31 December 31
(millions of C$) 2008 2007
----------------------------------------------------------------------------
(restated)
Assets
Current
Cash and cash equivalents 217 536
Accounts receivable 1,147 1,143
Inventories 208 107
Prepaid expenses 28 12
Assets of discontinued operations 393 358
----------------------------------------------------------------------------
1,993 2,156
----------------------------------------------------------------------------
Other assets 159 171
Goodwill 1,501 1,406
Property, plant and equipment 18,655 17,710
Assets of discontinued operations - -
----------------------------------------------------------------------------
20,315 19,287
----------------------------------------------------------------------------
Total assets 22,308 21,443
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Current
Bank indebtedness 15 15
Accounts payable and accrued liabilities 2,079 1,889
Income and other taxes payable 479 388
Liabilities of discontinued operations 122 128
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2,695 2,420
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Deferred credits 32 21
Asset retirement obligations 2,024 1,915
Other long-term obligations 179 140
Long-term debt 4,389 4,862
Future income taxes 4,339 4,122
Liabilities of discontinued operations - -
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10,963 11,060
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Contingencies
Shareholders' equity
Common shares 2,437 2,437
Contributed surplus 64 64
Retained earnings 6,117 5,651
Accumulated other comprehensive income (loss) 32 (189)
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8,650 7,963
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Total liabilities and shareholders' equity 22,308 21,443
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Talisman Energy Inc.
Consolidated Statements of Income
(unaudited)
Three months ended March 31
(millions of C$) 2008 2007
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(restated)
Revenue
Gross sales 2,468 2,146
Hedging gain/(loss) (10) 46
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Gross sales, net of hedging 2,458 2,192
Less royalties 377 340
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Net sales 2,081 1,852
Other 35 30
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Total revenue 2,116 1,882
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Expenses
Operating 442 479
Transportation 43 56
General and administrative 64 60
Depreciation, depletion and amortization 532 569
Dry hole 70 100
Exploration 57 70
Interest on long-term debt 44 46
Stock-based compensation (10) 42
Loss on held-for-trading financial instruments 68 37
Other, net (13) (14)
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Total expenses 1,297 1,445
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Income from continuing operations before taxes 819 437
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Taxes
Current income tax 266 170
Future income tax (recovery) 47 (6)
Petroleum revenue tax 47 68
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360 232
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Net income from continuing operations 459 205
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Net income from discontinued operations 7 315
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Net income 466 520
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Per common share (C$)
Net income from continuing operations 0.45 0.19
Diluted net income from continuing operations 0.44 0.19
Net income from discontinued operations 0.01 0.30
Diluted net income from discontinued operations 0.01 0.29
Net income 0.46 0.49
Diluted net income 0.45 0.48
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Average number of common shares outstanding
(millions) - basic 1,019 1,051
Average number of common shares outstanding
(millions) - diluted 1,036 1,084
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Talisman Energy Inc.
Consolidated Statements of Cash Flows
(unaudited)
Three months ended March 31
(millions of C$) 2008 2007
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(restated)
Operating
Net income from continuing operations 459 205
Items not involving cash 693 698
Exploration 57 70
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1,209 973
Changes in non-cash working capital 80 85
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Cash provided by continuing operations 1,289 1,058
Cash provided by discontinued operations 23 31
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Cash provided by operating activities 1,312 1,089
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Investing
Corporate acquisitions, net of cash acquired - -
Capital expenditures
Exploration, development and other (1,012) (1,267)
Property acquisitions (97) (4)
Proceeds of resource property dispositions - -
Proceeds from investment disposition - -
Changes in non-cash working capital 98 39
Discontinued operations, net of capital
expenditures (10) 188
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Cash used in investing activities (1,021) (1,044)
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Financing
Long-term debt repaid (1,167) (576)
Long-term debt issued 538 956
Common shares purchased, net - (297)
Common share dividends - -
Deferred credits and other 9 (18)
Changes in non-cash working capital 1 -
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Cash provided by (used in) financing activities (619) 65
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Effect of translation on foreign currency cash and
cash equivalents 9 (1)
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Net increase (decrease) in cash and cash
equivalents (319) 109
Cash and cash equivalents net of bank
indebtedness, beginning of period 521 64
----------------------------------------------------------------------------
Cash and cash equivalents net of bank
indebtedness, end of period 202 173
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Cash and cash equivalents 217 195
Bank indebtedness 15 22
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202 173
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Contacts: Talisman Energy Inc. - Media and General Inquiries
David Mann, Senior Manager, Corporate & Investor Communications
(403) 237-1196 (403) 237-1210 (FAX) Email: tlm@talisman-energy.com
Website: www.talisman-energy.com Talisman Energy Inc. - Shareholder
and Investor Inquiries Christopher J. LeGallais, Senior Manager,
Investor Relations (403) 237-1957 (403) 237-1210 (FAX) Email:
tlm@talisman-energy.com Website: www.talisman-energy.com
Grafico Azioni Talisman (NYSE:TLM)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Talisman (NYSE:TLM)
Storico
Da Lug 2023 a Lug 2024
