Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) reported its operating
and (unaudited) financial results for 2012. All values in this
release are in US$ unless otherwise stated.
2012 Overview
-- Hal Kvisle was appointed President and Chief Executive Officer on
September 10, 2012, and has set four strategic priorities for the
company.
-- Production was 426,000 boe/d, exceeding guidance. Liquids growth in
Southeast Asia, Colombia and the Eagle Ford, and higher gas volumes in
North America, offset North Sea declines.
-- Cash flow(1) for the year was $3 billion, down 12% compared to 2011 due
to lower North American natural gas prices and lower North Sea volumes,
partially offset by growing volumes in Asia. Cash flow per share(1) was
$2.95 versus $3.36 in 2011.
-- Fourth-quarter net income was $376 million compared to a loss of $117
million the previous year. Net income for the year was $132 million,
compared to $776 million in 2011.
-- The company completed $2.5 billion in asset sales, including the sale of
a 49% equity interest in Talisman's UK North Sea business to Sinopec for
$1.5 billion.
-- In Southeast Asia, Talisman assumed operatorship of the Kinabalu PSC in
Malaysia in December.
-- The company announced a significant oil discovery in Kurdistan.
-- Talisman reduced net debt(1) to $3.7 billion at year-end, from $4.5
billion at the end of the third quarter.
"At the end of October 2012, Talisman announced a shift in
strategic direction, and several months in, we are making
progress," said Hal Kvisle, President and CEO. "Our overriding
objective is to significantly improve total shareholder returns by
improving cash margins on the barrels we produce, more careful
allocation of capital and better execution within a focused
portfolio.
"Within this context, we have set four strategic priorities.
First, we will live within our means, reducing investment to live
within cash flow. We will strengthen our balance sheet, allowing us
to respond to quality opportunities within our core regions. Our
2013 capital budget has been set at approximately $3 billion, a 25%
reduction from 2012.
(1) The terms "cash flow" "cash flow per share" and "net debt"
are non-GAAP measures. Please see the advisories and
reconciliations elsewhere in this news release.
"As a second priority, we will invest in a smaller number of
high-value projects that come onstream and generate positive cash
flows quickly. We will reduce our global exploration budget and
focus our exploration expertise on shorter-cycle opportunities
within core regions including Vietnam, Malaysia, Indonesia and
Colombia. We will accelerate development opportunities that bring
early production, and we will optimize existing assets to maximize
both production and value per barrel.
"Our third priority is to build our competitive position in all
core regions. In Western Canada, we will develop our best
opportunities in the Edson-Duvernay-Montney core region, augmenting
our large producing assets in that region and taking advantage of
our extensive gathering and processing infrastructure. We have
significantly reduced drilling times in the Montney, and we will
work to replicate that success in our Eagle Ford program. We will
continue to divest assets within North America as we focus on
growing our best positions in line with our financial capacity.
"In Southeast Asia, we have acquired the Kinabalu producing
property in Malaysia and we will proceed with both the development
of this asset and exploration of our nearby landholdings. We are
completing the HST/HSD development in Vietnam, with first
production expected in the third quarter of 2013, and we will
continue to focus on Corridor, Jambi Merang and new opportunities
in Sumatra.
"In the UK North Sea, we closed our joint venture with Sinopec,
which reduced our ownership to 51%. With the participation of
Sinopec we will effectively double what we would otherwise be able
to invest in UK assets, improving reliability and efficiency,
increasing the reserves and remaining life of these assets.
"As a fourth priority, we will drive operational excellence in
every part of our business. G&A costs are coming down,
operating costs are under scrutiny and capital spending has been
reduced and high-graded. We have many opportunities to do things
'better, faster, safer and at lower cost', and we will pursue these
opportunities with vigour.
"There is more to do, and we will continue to move deliberately
and constantly to improve profitability and grow shareholder value.
As we will demonstrate in March, our 2013 business plan is about
increased focus, unlocking value, delivering results and rebuilding
confidence in the assets and future direction of Talisman."
Financial Results
The financial information contained in this release is
unaudited. The company expects to file its audited Consolidated
Financial Statements for the year ended December 31, 2012, along
with the related Management's Discussion and Analysis, Annual
Information Form and Annual Report on Form 40-F by March 6, 2013.
The company will also announce its capital spending plans for 2013
on March 6, 2013. For additional information, please visit
Talisman's website at www.talisman-energy.com.
----------------------------------------------------------------------------
December 31 Three Months Ended Year Ended
----------------------------------------------------------------------------
2012 2011 2012 2011
----------------------------------------------------------------------------
Cash flow ($ million) 675 824 3,022 3,434
----------------------------------------------------------------------------
Cash flow per share 0.66 0.81 2.95 3.36
----------------------------------------------------------------------------
Earnings (loss) from operations(2)
($ million) (107) 114 95 604
----------------------------------------------------------------------------
Earnings (loss) from operations per
share(2) (0.10) 0.11 0.09 0.59
----------------------------------------------------------------------------
Net income (loss) ($ million) 376 (117) 132 776
----------------------------------------------------------------------------
Net income (loss) per share 0.37 (0.11) 0.12 0.76
----------------------------------------------------------------------------
Average shares outstanding - basic
(million) 1,025 1,021 1,025 1,023
----------------------------------------------------------------------------
Cash flow for the year was $3 billion, down 12% compared to 2011
due to lower North American natural gas prices and lower North Sea
volumes, partially offset by higher volumes in Southeast Asia. Cash
flow in the fourth quarter over the third quarter was relatively
flat, adjusting for the sale of Talisman's UK North Sea assets.
Earnings from operations, which exclude non-operational items,
was $95 million in 2012, down as a result of lower North American
gas prices, reduced production from the North Sea, increased
operating costs and increased DD&A.
DD&A expense was $2.5 billion, compared to $1.9 billion in
2011 as a result of increased volumes from higher rate fields as
well as increased rates in North America and the North Sea based on
costs incurred, reserves adds and increases in decommissioning
expenditure estimates during the year. Nearly one-third of the
increase relates to a one-time charge of approximately $190 million
taken in the fourth-quarter for the write-down of proved developed
reserves in the Auk field in the UK and in the Lynx/Palliser area
in Canada. The Auk Area Redevelopment project has been placed back
into the pre-sanction stage, resulting in the removal of all proved
reserves, including those in the existing producing field. However,
a re-evaluation of development options is expected in 2013.
Net income was impacted by lower North American gas prices,
reduced production from the North Sea, increased operating costs,
higher DD&A and a number of one-time, non-cash asset
impairments. This was partially offset by a gain on disposals,
including the sale of non-core assets in North America and the sale
of a 49% equity interest in Talisman's UK North Sea business, a
gain on the revaluation of the Ocensa pipeline in Colombia and
lower current and deferred tax.
Asset impairments totalled $2.7 billion, pre tax ($1.1 billion
after tax), largely due to uncertainties with the Yme development
in Norway ($1.6 billion pre tax, $401 million after tax), reserve
revisions for the Rev field in Norway, the exit from Peru and other
adjustments in the North Sea and North America.
(2) The terms "earnings (loss) from operations" and "earnings
(loss) from operations per share" are non-GAAP measures. Please see
the advisories and reconciliations elsewhere in this news
release.
Current taxes decreased due principally to lower production in
the North Sea, partially offset by increased revenues in Southeast
Asia.
Deferred tax recovery reflects the tax benefits associated with
impairment charges, particularly in the North Sea, partially offset
by a $429 million reduction of deferred tax assets in the U.S.
Exploration and development spending(3) for the year totalled $4
billion. Over the course of the year, Talisman reduced spending on
North American natural gas and increased spending on liquids; this
trend will continue in 2013. Net debt levels were reduced to $3.7
billion, compared to $4.5 billion at the end of the third
quarter.
Netbacks
----------------------------------------------------------------------------
December 31 Three Months Ended Year Ended
----------------------------------------------------------------------------
2012 2011 2012 2011
----------------------------------------------------------------------------
WTI benchmark ($/bbl) 88.18 94.06 94.22 95.13
----------------------------------------------------------------------------
Brent benchmark ($/bbl) 110.02 109.31 111.61 111.27
----------------------------------------------------------------------------
NYMEX benchmark ($/mmbtu) 3.36 3.61 2.80 4.07
----------------------------------------------------------------------------
Oil and liquids netback ($/bbl)
----------------------------------------------------------------------------
North America 44.17 52.39 44.85 50.01
----------------------------------------
Southeast Asia 36.31 43.08 44.87 36.18
----------------------------------------
North Sea 33.43 66.30 55.54 72.57
----------------------------------------
Other 58.72 52.93 61.21 53.95
----------------------------------------------------------------------------
Total oil and liquids ($/bbl) 40.09 57.66 51.96 60.34
----------------------------------------------------------------------------
Natural gas netback ($/mcf)
----------------------------------------------------------------------------
North America 1.50 1.75 0.87 2.25
----------------------------------------
Southeast Asia 4.85 5.33 5.45 5.51
----------------------------------------
North Sea 4.67 2.39 6.61 5.44
----------------------------------------
Other 1.36 0.91 1.84 1.84
----------------------------------------------------------------------------
Total natural gas ($/mcf) 2.69 2.90 2.52 3.46
----------------------------------------------------------------------------
Total company netback ($/boe) 24.82 33.81 29.13 37.25
----------------------------------------------------------------------------
WTI and Brent prices were relatively flat year over year; NYMEX
was down year over year but prices have started to recover over the
past two quarters.
For the year, Talisman's realized oil and liquids prices
decreased by 2% to $104.82/barrel, consistent with movement in the
benchmark prices. Talisman's realized natural gas prices decreased
by 15%, largely due to reduced North American natural gas prices,
consistent with decreases in NYMEX and AECO. Southeast Asia natural
gas prices remained relatively flat at $9.28/mcf. A substantial
percentage of the company's gas production in the region is linked
to oil-based indices.
In 2012, Talisman's average gross netback was $29.13/boe, 22%
lower than 2011 due primarily to lower North American natural gas
prices. The company's oil and liquids netback decreased by 14% with
higher operating costs and widening differentials in some regions.
Natural gas netbacks decreased by 27%, largely as a result of lower
North American natural gas prices.
(3) The term "exploration and development spending" is a
non-GAAP measure. Please see the advisories and reconciliations
elsewhere in this news release.
Production
----------------------------------------------------------------------------
December 31 Three Months Ended Year Ended
----------------------------------------------------------------------------
2012 2011 2012 2011
----------------------------------------------------------------------------
Oil and liquids (mbbls/d)
----------------------------------------------------------------------------
North America 29 26 27 23
----------------------------------------
Southeast Asia 40 38 42 34
----------------------------------------
North Sea 53 91 71 98
----------------------------------------
Other 21 25 22 23
----------------------------------------------------------------------------
Total oil and liquids (mbbls/d) 143 180 162 178
----------------------------------------------------------------------------
Natural gas (mmcf/d)
----------------------------------------------------------------------------
North America 924 969 985 899
----------------------------------------
Southeast Asia 511 508 524 506
----------------------------------------
North Sea 20 56 31 52
----------------------------------------
Other 43 39 42 34
----------------------------------------------------------------------------
Total natural gas (mmcf/d) 1,498 1,572 1,582 1,491
----------------------------------------------------------------------------
Total (mboe/d) 392 442 426 426
----------------------------------------------------------------------------
Assets sold (mboe/d)
----------------------------------------------------------------------------
North America - 8 4 8
----------------------------------------------------------------------------
North Sea 19 31 25 35
----------------------------------------------------------------------------
Production from ongoing operations
(mboe/d) 373 403 397 383
----------------------------------------------------------------------------
Production averaged 426,000 boe/d, flat year over year. Gains in
Southeast Asia, liquids growth in Colombia and the Eagle Ford and
higher natural gas volumes in North America were offset by declines
in the North Sea.
Production from ongoing operations increased by 4% over 2011,
reflecting the impact of non-core asset sales in North America and
the completion of the UK joint venture. From December 17, 2012
going forward, Talisman's recorded share of production in the UK
North Sea will be 49% lower, with the sale of an equity interest in
Talisman's UK North Sea business to Sinopec. As a result of the
Sinopec transaction, Talisman's 2012 year-end UK exit rate was
22,000 boe/d.
Talisman Working Interest Reserves (before deduction of
royalties)
All of the reserves estimates in this document are based on
Canadian regulations, which utilize forecast pricing and costs. The
company also estimates proved reserves according to SEC
regulations, utilizing historic 12-month average pricing. The
difference between the results of the two methods is less than 2%,
or approximately 20 million boe. The following discussion refers to
proved and probable reserves estimates based on Canadian
regulations unless otherwise noted. Proved plus probable (2P)
reserves, under NI 51-101 definitions, represent the company's
expected recoverable reserves.
----------------------------------------------------------------------------
Proved Reserves Proved + Probable
COGEH Pricing Probable Reserves Reserves
----------------------------------------------------------------------------
Million boe Million boe Million boe
----------------------------------------------------------------------------
December 31,
2011 1,487.1 735.2 2,222.3
----------------------------------------------------------------------------
Discoveries,
extensions and
additions (72.9) (31.4) (104.3)
----------------------------------------------------------------------------
Net acquisitions
and
dispositions (147.7) (94.7) (242.4)
----------------------------------------------------------------------------
Price revisions (15.4) 6.3 (9.1)
----------------------------------------------------------------------------
Other revisions (3.9) 3.6 (0.3)
----------------------------------------------------------------------------
Production (156.2) - (156.2)
----------------------------------------------------------------------------
December 31,
2012 1,091.0 619.0 1,710.0
----------------------------------------------------------------------------
At the end of 2012, Talisman's 2P reserves totalled 1.7 billion
boe, which equates to a reserve life index of 11 years. The company
added (discoveries, extensions, and additions plus other revisions)
approximately 31 million boe of 2P reserves (18 million boe proved)
in the liquids-rich Eagle Ford shale play, 26 million boe 2P
reserves (19 million boe proved) in the Montney shale, 11 million
boe 2P reserves (five million boe proved) in Wild River, Canada,
and seven million boe 2P reserves in Corridor, Indonesia.
In 2012, management took decisions to high-grade capital
spending programs, optimize projects and focus the portfolio, which
had a major impact on reserves. In the Marcellus dry gas shale
play, capital spending has been reduced significantly, which led to
negative reserve additions (discoveries, extensions, and additions
plus other revisions) of approximately 38 million boe of 2P
reserves (91 million boe proved). These negative additions reflect
uncertainty in the timing of development, not technical
certainty.
In the North Sea, development of the Auk South and Yme projects
have been deferred, resulting in negative additions (discoveries,
extensions, and additions plus other revisions) of approximately 56
million boe of 2P reserves (44 million boe proved). The negative
additions in the North Sea also primarily reflect uncertainty in
the timing of development, not technical certainty.
As part of the decision to focus the portfolio, Talisman
announced it will exit Peru, with a reduction of approximately 21
million boe of 2P reserves.
The company expects to provide details on its contingent
resource position on March 6, 2013.
North America
Production
----------------------------------------------------------------------------
December 31 Three Months Ended Year Ended
----------------------------------------------------------------------------
2012 2011 2012 2011
----------------------------------------------------------------------------
Natural gas
----------------------------------------------------------------------------
Edson-Duvernay-Montney 382 401 390 412
----------------------------------------------------------------------------
Marcellus 475 486 514 413
----------------------------------------------------------------------------
Eagle Ford 48 29 40 18
----------------------------------------------------------------------------
Other 19 28 29 29
----------------------------------------------------------------------------
Natural gas from ongoing operations
(mmcf/d) 924 944 973 872
----------------------------------------------------------------------------
Liquids
----------------------------------------------------------------------------
Edson-Duvernay-Montney 6 5 5 5
----------------------------------------------------------------------------
Eagle Ford 11 4 9 2
----------------------------------------------------------------------------
Chauvin 12 13 12 13
----------------------------------------------------------------------------
Liquids from ongoing operations
(mbbls/d) 29 22 26 20
----------------------------------------------------------------------------
Assets sold (mboe/d) - 8 4 8
----------------------------------------------------------------------------
Total North America natural gas
production (mmcf/d) 924 969 985 899
----------------------------------------------------------------------------
Total North America liquids
production (mbbls/d)) 29 26 27 23
----------------------------------------------------------------------------
Total North America production
(mboe/d) 183 187 192 173
----------------------------------------------------------------------------
In North America, Talisman continues to pursue liquids
opportunities, while evaluating options to monetize its large
natural gas resource base. As part of the strategic priority to
live within its means and against the backdrop of continuing weak
gas prices, Talisman has announced plans to focus the North America
portfolio in order to match future capital requirements with the
underlying cash flow generating capacity of the company.
Highlights for 2012 include growth in the liquids-rich Eagle
Ford shale play, strong performance in the Marcellus (despite a
significant reduction in capital due to low natural gas prices),
and approximately $1 billion in non-core asset dispositions.
Production grew by 11% in 2012 (with liquids production
increasing by 17%), primarily from the Marcellus, Eagle Ford and
Montney plays. Overall production was down slightly versus the
previous quarter, reflecting limited investment in dry gas
plays.
Exploration and development spending for 2012 was $1.6 billion,
down from $2.2 billion a year earlier as Talisman reduced its
activities in dry gas areas. Fourth-quarter exploration and
development spending was $316 million, down from $679 million in
the fourth-quarter of 2011. The company reduced its dry gas rig
count from 21 in 2011 to four in 2012, including three rigs in the
Montney joint venture.
In the Eagle Ford, Talisman ended the year with nine drilling
rigs. In 2012, the company spent $740 million, drilled 115 (gross
operated) wells and currently has approximately 50 wells waiting
for completion. Production for the quarter averaged 19,000 boe/d, a
27% increase over the third-quarter. Over the course of the year,
Talisman concluded a number of midstream contracts to ensure egress
capacity in the region. As planned, Statoil and Talisman are
working toward transitioning to shared operatorship of the Eagle
Ford during 2013.
In the Marcellus, in response to low natural gas prices,
Talisman ended the year with one operated rig. The company has an
inventory of approximately 50 drilled, uncompleted wells, which
will be completed once natural gas prices improve. Talisman expects
to continue with limited drilling in the region in order to
maintain its strategic low-cost land position. In 2013, Talisman
will complete the North Chaffee infrastructure project, which will
allow the company to bring on wells and generate additional cash
flow.
In Western Canada, Talisman has a significant competitive
advantage in the Edson, Duvernay and Montney plays, driven by the
company's extensive infrastructure, large contiguous land holdings,
strong business relationships and experienced operating teams.
Moving forward, Talisman will focus its Canadian capital programs
on this large core region, known as Edson-Duvernay-Montney
(EDM).
In the liquids-rich Duvernay, Talisman has drilled (rig
released) five wells to date as part of its appraisal program on
its 347,000 net acre position in the play.
The company completed the sale of approximately $1 billion of
non-core assets during the year, with the disposition of its
Sukunka coal assets in British Columbia and assets in West
Whitecourt, Alberta and Shaunavon, Saskatchewan.
Southeast Asia
Production
----------------------------------------------------------------------------
December 31 Three Months Ended Year Ended
----------------------------------------------------------------------------
2012 2011 2012 2011
----------------------------------------------------------------------------
Malaysia liquids (mbbls/d) 17 15 17 17
----------------------------------------------------------------------------
Malaysia gas (mmcf/d) 132 99 122 113
----------------------------------------------------------------------------
Malaysia total (mboe/d) 39 31 37 36
----------------------------------------------------------------------------
Indonesia liquids (mbbls/d) 11 11 11 11
----------------------------------------------------------------------------
Indonesia gas (mmcf/d) 379 409 402 393
----------------------------------------------------------------------------
Indonesia total (mboe/d) 74 79 78 77
----------------------------------------------------------------------------
Vietnam (mboe/d) 2 2 2 2
----------------------------------------------------------------------------
Australia (mboe/d) 10 11 12 4
----------------------------------------------------------------------------
Total (mboe/d) 125 123 129 119
----------------------------------------------------------------------------
Southeast Asia accounts for approximately one-third of
Talisman's production. Talisman continues to grow production in
Southeast Asia with business fundamentals supported by strong
energy demand and high natural gas prices. Talisman set another
regional production record in 2012 through facilities optimization
and continued successful development drilling. The company has a
new development underway in Vietnam at HST/HSD and a new producing
licence in Malaysia at Kinabalu, both of which will add volumes in
2013.
Production averaged 129,000 boe/d, an increase of 8% over 2011.
Fourth-quarter volumes averaged 125,000 boe/d, up 1% from the
previous quarter following completion of planned maintenance.
Natural gas production for the quarter averaged 511 mmcf/d, with
prices averaging $8.86/mcf.
In Malaysia, annual production averaged 37,000 boe/d, up
slightly over last year with ongoing development drilling in the
Northern Fields. The increase over the same period last year was
due to planned annual maintenance in the fourth quarter of 2011. On
December 26, Talisman successfully assumed operatorship at
Kinabalu, which provides near-term exploration and development
upside.
In Indonesia, annual production was up slightly over last year,
with the ramp-up at Jambi Merang and increased volumes at Tangguh
largely offset by the Suban field unitization at Corridor.
Underlying production increased by 8% compared to 2011 (after
accounting for Suban unitization). Fourth-quarter production fell
due to planned maintenance at Corridor and Tangguh. As part of its
objective to focus our core areas, Talisman has agreed to sell its
5.03% interest in Offshore Northwest Java to Pertamina, subject to
final approvals.
In Vietnam, the HST/HSD development is progressing on schedule
and on budget, with two jackets now installed and the drilling rig
on location. Pipeline tie-ins are complete and development drilling
is in progress. First production is planned for the second half of
2013.
The Kitan field in Australia/Timor Leste continues to exceed
expectations, producing an average of 9,300 boe/d in 2012, with a
full year of operations.
North Sea
Production (mboe/d)(i)
----------------------------------------------------------------------------
December 31 Three Months Ended Year Ended
2012 2011 2012 2011
----------------------------------------------------------------------------
UK 38 64 52 71
----------------------------------------------------------------------------
Norway 18 36 24 35
----------------------------------------------------------------------------
Total (mboe/d) 56 100 76 106
----------------------------------------------------------------------------
(i)2012 production reflects closing of Sinopec joint venture in
mid-December.
North Sea volumes are predominantly high-value liquids.
Production has fallen over the previous year, largely due to
underinvestment in recent years contributing to asset reliability
challenges as well as reduced production capability. Fourth quarter
performance was particularly challenging as a result of extended
turnarounds, planned and unplanned maintenance as well as the
continued impact of the Galley pipeline being out of service. In
2013, the focus is to improve the reliability of existing assets
and the execution of economic redevelopment and life extension
projects.
In December, Talisman sold 49% of its UK business to Sinopec for
$1.5 billion and established the Talisman Sinopec Energy UK Limited
joint venture. The joint venture will lead to increased investment
in order to improve reliability and operational efficiency and fund
infill drilling, major projects and select infrastructure-led
exploration, thereby extending field life and deferring
decommissioning.
During 2012, Talisman announced plans to proceed with
redevelopment of the Montrose area following announcement of a
Brown Field Allowance by the UK government. The project involves
integration of established fields and infrastructure with two
undeveloped fields. Production is expected in 2016.
In the fourth quarter, the grouting repair to stabilize the Yme
platform commenced. Management continues to work with all
stakeholders to evaluate project options.
Colombia
In 2012, average daily production was 17,000 boe/d, an increase
of 27% over the previous year. The project to expand gas
compression and pipeline facilities at Piedemonte is underway and
will create capacity for additional liquids production starting in
2014. In addition, a number of successful development wells were
drilled during the year. The company's interest in the Ocensa
pipeline, previously held through its Equion joint venture, is now
directly owned by Talisman following a corporate reorganization in
the fourth quarter. The pipeline continues to operate at full
capacity and Talisman plans to market and charge release capacity
fees from third parties, creating a new profit centre for the
company. Consistent with accounting conventions for non-cash
transfers of this nature, Talisman revalued its investment in
Ocensa to fair value, creating a gain of $245 million after
tax.
In the Foothills region, the Huron-2 appraisal well in the
Niscota block reached total depth and is awaiting testing. The
Huron-3 well has resumed drilling after receiving environmental
approvals.
In the heavy oil region, Talisman commenced a seven-well
appraisal drilling program in Block CPO-9, with the intention of
flowing the wells on extended well test. In Block CPE-8,Talisman
also spudded and completed the first stratigraphic well and has
spudded the second stratigraphic well.
International Exploration
In 2012, Talisman completed seven drill stem tests of the
Kurdamir-2 well, which have demonstrated the presence of an oil
column of at least 145 metres lying beneath a gas cap. The
Oligocene reservoir tested at up to 3,700 bbls/d, with no free
water encountered. Talisman is about to drill the Kurdamir-3
appraisal well, which will evaluate the down flank extension of the
oil column. Talisman has started a 3D seismic acquisition program
over the Topkhana and Kurdamir blocks, and expects to complete this
work in 2013.
In Papua New Guinea, the company farmed out approximately 20% in
nine licences to Mitsubishi Corporation at a value of approximately
$280 million. A number of successful exploration and appraisal
wells were drilled during the year as the company continued its
natural gas aggregation program. Planning for the Stanley
condensate recovery scheme is underway; however government approval
is still required. First production is expected in 2014.
In Sierra Leone, Talisman completed drilling of the deepwater
Djembe-1 exploration well, and the well has been plugged and
abandoned.
In line with the reduced capital budget and with the focus on
near-term cash flow, exploration activity is being focused in the
company's core regions, plus Colombia and Kurdistan.
Common Share and Preferred Share Dividend Declaration
The company has declared a quarterly dividend on the company's
common shares of US$0.0675 per share. The dividend will be paid on
March 29, 2013 to shareholders of record at the close of business
on March 11, 2013.
The company has also declared a quarterly dividend of C$0.2625
on its Cumulative Redeemable Rate Reset First Preferred Shares,
Series 1. The dividend will be paid on April 1, 2013 to
shareholders of record at the close of business on March 11,
2013.
Talisman Energy Inc. is a global upstream oil and gas company,
headquartered in Canada. Talisman has three main operating areas:
the Americas (North America and Colombia), Southeast Asia and the
North Sea, with an active exploration program across all three.
Talisman is committed to conducting business safely, in a socially
and environmentally responsible manner, and is included in the Dow
Jones Sustainability (North America) Index. Talisman is listed on
the Toronto and New York stock exchanges under the symbol TLM.
Please visit our website at www.talisman-energy.com.
Forward-Looking Information
This news 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: business strategy,
priorities and plans; expected capital budget and expected focus of
spending; expected timing of providing 2013 capital spending
guidance, resource estimates and filing of the 2012 annual
documents; expected spending reduction on exploration; expected
benefits of the joint venture in the UK and focus of the UK
business in 2013; planned improvements in operational and cost
performance; expected action to reduce G&A; planned exploration
efforts in Colombia, Vietnam, Malaysia, Indonesia and Kurdistan;
expected monetizing and focusing of the North America portfolio;
planned transition to shared operatorship with Statoil in the Eagle
Ford; expected drilling and infrastructure project in North
America; expected additional production and timing of production
from HST/HSD, Kinabalu, the Montrose area redevelopment and the
Stanley condensate recovery scheme; planned marketing and tariffs,
and related profits, from Ocensa pipeline; expected capacity for
additional liquids production through the Piedemonte facilities
expansion; planned seismic acquisition in Kurdistan and other
business strategy, plans and priorities.
The factors or assumptions on which the forward-looking
information is based include: assumptions inherent in current
guidance; projected capital investment levels; the flexibility of
capital spending plans and the associated sources of funding; the
successful and timely implementation of capital projects; the
continuation of tax, royalty and regulatory regimes; ability to
obtain regulatory and partner approval; commodity price and cost
assumptions; and other risks and uncertainties described in the
filings made by the company with securities regulatory authorities.
The company believes the material factors, expectations and
assumptions reflected in the forward-looking information are
reasonable, but no assurance can be given that these factors,
expectations and assumptions will prove to be correct.
Forward-looking information for periods past 2012 assumes
escalating commodity prices.
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 that 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 news
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;
uncertainty related to securing sufficient egress and markets to
meet shale gas production; 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; the impact of the economy on the
ability of the counterparties to the company's commodity price
derivative contracts to meet their obligations under the contracts;
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; 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); changes in general economic and business
conditions; the possibility that government policies or laws may
change or governmental approvals may be delayed or withheld; and
results of the company's risk mitigation strategies, including
insurance and any hedging activities.
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.
Unless the context indicates otherwise, references in this news
release to "Talisman" or the "company" include, for reporting
purposes only, the direct or indirect subsidiaries of Talisman
Energy Inc. and the partnership interests held by Talisman Energy
Inc. and its subsidiaries. Such use of "Talisman" or the "company"
to refer to these other legal entities and partnership interests
does not constitute waiver by Talisman Energy Inc. or such entities
or partnerships of their separate legal status, for any
purpose.
The completion of any contemplated disposition or acquisition is
contingent on various factors, including favourable market
conditions, the ability of the company to negotiate acceptable
terms of sale and receipt of any required approvals for such
disposition.
Oil and Gas Information
National Instrument 51-101 ("NI 51-101") of the Canadian
Securities Administrators imposes oil and gas disclosure standards
for Canadian public companies engaged in oil and gas activities.
Talisman has obtained an exemption from Canadian securities
regulatory authorities to permit it to provide certain disclosures
in accordance with the US disclosure standards, in addition to the
disclosure mandated by NI 51-101, in order to provide for
comparability of oil and gas disclosure with that provided by US
and other international issuers. Accordingly, in addition to the
reserves data and certain other oil and gas information included in
this news release, provided in accordance with NI 51-101, some is
provided in accordance with US disclosure standards.
A separate exemption granted to Talisman also permits it to
disclose internally evaluated reserves data. Any reserves data
contained in this news release reflects Talisman's estimates of its
reserves. While Talisman annually obtains an independent audit of a
portion of its proved and probable reserves, no independent
qualified reserves evaluator or auditor was involved in the
preparation of the reserves data disclosed in this news
release.
The reserves life index (RLI) of 11 years for proved plus
probable reserves for the company was calculated by dividing the
year-end proved plus probable reserves by the company's 2012
production.
In 2012, there were no proved reserves additions in Corridor,
Indonesia.
Throughout this news release, Talisman makes reference to
production volumes. Unless otherwise stated, 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.
Barrel of oil equivalent (boe) throughout this news release is
calculated at a conversion rate of six thousand cubic feet (mcf) of
natural gas for one barrel of oil (bbl). This news release also
includes reference to mcf equivalents (mcfes), which are calculated
at a conversion rate of one barrel of oil to 6,000 cubic feet of
gas. Boes and mcfes may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf:1 bbl and an mcfe
conversion ratio of 1 bbl: 6 mcf are based on an energy equivalence
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.
Talisman also discloses its company netbacks in this news
release. Netbacks per boe are calculated by deducting from sales
price associated royalties, operating and transportation costs.
In this news release, all references to "core" or "non-core"
assets and properties align with the company's current public
disclosures regarding its assets and properties.
Non-GAAP Financial Measures
Included in this news release are references to financial
measures commonly used in the oil and gas industry such as cash
flow, earnings (loss) from operations, exploration and development
spending and net debt. These terms are not defined by International
Financial Reporting Standards (IFRS). Consequently, these are
referred to as non-GAAP measures. Talisman's reported results of
such measures may not be comparable to similarly titled measures
reported by other companies.
Cash Flow
US$million, except per share amounts
Three Months Ended Year Ended
----------------------------------------------------------------------------
December December December December
31, 2012 31, 2011 31, 2012 31, 2011
----------------------------------------------------------------------------
Cash provided by operating
activities 546 511 2,716 2,812
Changes in non-cash working
capital(1) 55 272 125 397
Add: Exploration expenditure 118 92 346 427
Add: Pennsylvania impact
fee(2) - - 25 -
Less: Finance costs (cash) (44) (51) (190) (202)
----------------------------------------------------------------------------
Cash flow 675 824 3,022 3,434
----------------------------------------------------------------------------
Cash flow per share 0.66 0.81 2.95 3.36
----------------------------------------------------------------------------
Diluted cash flow per share 0.65 0.81 2.93 3.31
----------------------------------------------------------------------------
(1) Q4 11 and year-to-date 2011 include a provision for a
doubtful account of $22 million (net of tax).
(2) Pennsylvania impact fee amount represents the one-time
impact of the retrospective application of the legislation to wells
drilled pre-2012.
Cash flow, as commonly used in the oil and gas industry,
represents net income before exploration costs, DD&A, deferred
taxes and other non-cash expenses. Cash flow is used by the company
to assess operating results between years and between peer
companies using different accounting policies. Cash flow should not
be considered an alternative to, or more meaningful than, cash
provided by operating, investing and financing activities or net
income as determined in accordance with IFRS as an indicator of the
company's performance or liquidity. Cash flow per share is cash
flow divided by the average number of common shares outstanding
during the period. Diluted cash flow per share is cash flow divided
by the diluted number of common shares outstanding during the
period, as will be reported in the year-end Consolidated Financial
Statements to be filed on March 6, 2013. A reconciliation of cash
provided by operating activities to cash flow is provided
above.
Earnings (loss) from Operations
US$million, except per share amounts
Three Months Ended Year Ended
----------------------------------------------------------------------------
December December December December
31, 2012 31, 2011 31, 2012 31, 2011
----------------------------------------------------------------------------
Net income (loss) 376 (117) 132 776
(Gain) loss on disposals
(tax adjusted) (862) 11 (1,427) (141)
Unrealized (gain) loss on
financial instruments (tax
adjusted)(1) (46) 39 49 (63)
Share-based payments (tax
adjusted)(2) (40) 35 (64) (303)
Foreign exchange on debt
(tax adjusted) 3 (1) 25 (1)
Impairment (tax adjusted) 278 65 1,096 104
Allowance for doubtful
account (tax adjusted) - 22 - 22
Pennsylvania impact fee (tax
adjusted) (3) - - 16 -
Gain on revaluation of
investment (tax adjusted)
(4) (245) - (245) -
Derecognition of deferred
tax assets(5) 429 - 429 -
Deferred tax adjustments(6) - 60 84 210
----------------------------------------------------------------------------
Earnings (loss) from
operations (107) 114 95 604
----------------------------------------------------------------------------
Earnings (loss) from
operations per share (0.10) 0.11 0.09 0.59
----------------------------------------------------------------------------
Diluted earnings (loss) from
operations per share (0.10) 0.11 0.09 0.58
----------------------------------------------------------------------------
1. Unrealized (gain) loss on financial instruments relates to the change in
the period of the mark-to-market value of the company's held-for-trading
financial instruments.
2. Share-based payments relate principally to the mark-to-market value of
the company's outstanding stock options and cash units at December 31.
The company uses the Black-Scholes option pricing model to estimate the
fair value of its share-based payment plans.
3. Pennsylvania impact fee amount represents the one-time impact of the
retrospective application of the legislation to wells drilled pre-2012.
4. Gain on revaluation of investment represents the fair value adjustment
recorded upon the restructuring of Talisman's investment in the
Oleoducto Centra S.A.
5. Derecognition of deferred tax assets from US operations.
6. Deferred tax adjustments largely comprise tax on foreign exchange on tax
pools. Year-to-date 2012 also includes a deferred tax expense of $137
million in respect of a UK tax rate restriction related to
decommissioning. Year-to-date 2012 also includes a deferred tax expense
of $225 million in respect of a UK tax change occurring in that period.
Earnings (loss) from operations are calculated by adjusting the
company's net income (loss) per the financial statements for
certain items of a non-operational nature, on an after-tax basis.
The company uses this information to evaluate performance of core
operational activities on a comparable basis between periods.
Earnings (loss) from operations per share are earnings (loss) from
operations divided by the average number of common shares
outstanding during the period. Diluted earnings (loss) from
operations per share are earnings (loss) from operations divided by
the diluted number of common shares outstanding during the period,
as will be reported in the year-end Consolidated Financial
Statements to be filed on March 6, 2013. A reconciliation of net
income (loss) to earnings (loss) from operations is provided
above.
Exploration and Development Spending
US$million
----------------------------------------------------------------------------
Year Ended
----------------------------------------------------------------------------
December 31, 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Exploration, development and other 3,658
----------------------------------------------------------------------------
Exploration expensed 346
----------------------------------------------------------------------------
Exploration and development spending 4,004
----------------------------------------------------------------------------
North American Exploration and Development Spending
US$million
----------------------------------------------------------------------------
Three Months ended Year Ended
----------------------------------------------------------------------------
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Exploration, development 311 663 1,562 2,155
----------------------------------------------------------------------------
Exploration expensed 5 16 29 70
----------------------------------------------------------------------------
Exploration and
development spending 316 679 1,591 2,225
----------------------------------------------------------------------------
Exploration and development spending is calculated by adjusting
the capital expenditure per the financial statements for
exploration costs that were expensed as incurred.
Net Debt
US$million
----------------------------------------------------------------------------
----------------------------------------------------------------------------
December 31, September 30,
2012 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Long-term debt 4,442 5,012
----------------------------------------------------------------------------
Bank indebtedness - -
----------------------------------------------------------------------------
Cash and cash equivalents (721) (496)
----------------------------------------------------------------------------
Net debt 3,721 4,516
----------------------------------------------------------------------------
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 and eliminate the impact of timing differences.
Talisman Energy Inc.
Highlights
(unaudited)
Three months ended Year ended
December 31 December 31
2012 2011 2012 2011
----------------------------------------------------------------------------
Financial
(millions of US$ unless
otherwise stated)
Cash flow (1) 675 824 3,022 3,434
Net income (loss) 376 (117) 132 776
Exploration and development
spending (1) 1,017 1,379 4,004 4,730
Per common share (US$)
Cash flow (1) 0.66 0.81 2.95 3.36
Net income (loss) 0.37 (0.11) 0.12 0.76
----------------------------------------------------------------------------
Production
(Daily Average - Gross)
Oil and liquids (bbls/d)
North America 28,904 25,669 27,566 23,160
Southeast Asia 40,158 38,173 41,296 34,372
North Sea 53,238 90,896 70,726 97,507
Other 20,464 24,810 22,715 22,697
----------------------------------------------------------------------------
Total oil and liquids 142,764 179,548 162,303 177,736
----------------------------------------------------------------------------
Natural gas (mmcf/d)
North America 924 969 985 899
Southeast Asia 511 508 524 506
North Sea 20 56 31 52
Other 43 39 42 34
----------------------------------------------------------------------------
Total natural gas 1,498 1,572 1,582 1,491
----------------------------------------------------------------------------
Total mboe/d (2) 392 442 426 426
----------------------------------------------------------------------------
Prices
Oil and liquids (US$/bbl)
North America 67.23 78.73 69.39 75.19
Southeast Asia 106.53 110.35 111.69 115.82
North Sea 109.34 108.82 111.83 110.75
Other 109.56 103.34 113.52 110.32
----------------------------------------------------------------------------
Total oil and liquids 100.05 104.09 104.82 107.04
----------------------------------------------------------------------------
Natural gas (US$/mcf)
North America 3.26 3.41 2.63 3.93
Southeast Asia 8.86 9.29 9.28 9.30
North Sea 10.23 8.81 9.77 8.62
Other 3.94 4.22 4.30 4.22
----------------------------------------------------------------------------
Total natural gas 5.28 5.52 5.01 5.92
----------------------------------------------------------------------------
Total (US$/boe) (2) 56.56 62.00 58.56 65.35
----------------------------------------------------------------------------
(1) Cash flow, exploration and development spending 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.
Talisman Energy Inc.
Condensed Consolidated Balance Sheets
(unaudited)
December 31 (millions of US$) 2012 2011
----------------------------------------------------------------------------
Assets
Current
Cash and cash equivalents 721 474
Accounts receivable 1,210 1,550
Risk management 48 42
Income and other taxes receivable 10 -
Inventories 150 164
Prepaid expenses 23 24
----------------------------------------------------------------------------
2,162 2,254
----------------------------------------------------------------------------
Other assets 115 101
Investments 747 395
Risk management 26 24
Goodwill 1,014 1,317
Property, plant and equipment 13,005 15,909
Exploration and evaluation assets 3,516 3,954
Deferred tax assets 1,273 272
----------------------------------------------------------------------------
19,696 21,972
----------------------------------------------------------------------------
Total assets 21,858 24,226
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Current
Bank indebtedness - 60
Accounts payable and accrued liabilities 2,250 2,622
Risk management 81 -
Income and other taxes payable 137 371
Current portion of long-term debt 8 410
----------------------------------------------------------------------------
2,476 3,463
----------------------------------------------------------------------------
Decommissioning liabilities 2,743 2,982
Other long-term obligations 313 346
Risk management 1 -
Long-term debt 4,434 4,485
Deferred tax liabilities 1,981 2,932
----------------------------------------------------------------------------
9,472 10,745
----------------------------------------------------------------------------
Shareholders' equity
Common shares 1,639 1,561
Preferred shares 191 191
Contributed surplus 121 186
Retained earnings 7,148 7,292
Accumulated other comprehensive income 811 788
----------------------------------------------------------------------------
9,910 10,018
----------------------------------------------------------------------------
Total liabilities and shareholders' equity 21,858 24,226
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Talisman Energy Inc.
Condensed Consolidated Statements of Income
(unaudited)
Three months ended Year ended
December 31 December 31
(millions of US$) 2012 2011 2012 2011
----------------------------------------------------------------------------
Revenue
Sales 1,582 2,062 7,229 8,194
Other income 24 20 83 78
----------------------------------------------------------------------------
Total revenue and other
income 1,606 2,082 7,312 8,272
----------------------------------------------------------------------------
Expenses
Operating 629 630 2,452 2,190
Transportation 43 57 221 216
General and
administrative 128 128 510 431
Depreciation, depletion
and amortization 756 546 2,501 1,949
Impairment 581 124 2,744 226
Dry hole 78 68 269 241
Exploration 118 92 346 427
Finance costs 63 69 276 278
Share-based payments
(recovery) expense (51) 35 (62) (310)
(Gain) loss on held-
for-trading financial
instruments (35) 79 93 210
(Gain) loss on asset
disposals (865) 14 (1,624) (192)
Gain on revaluation of
investment (365) - (365) -
Other, net 29 118 125 161
----------------------------------------------------------------------------
Total expenses 1,109 1,960 7,486 5,827
----------------------------------------------------------------------------
Income (loss) before
taxes 497 122 (174) 2,445
----------------------------------------------------------------------------
Taxes
Current income tax 71 290 874 1,441
Deferred income tax
(recovery) 50 (51) (1,180) 228
----------------------------------------------------------------------------
121 239 (306) 1,669
----------------------------------------------------------------------------
Net income (loss) 376 (117) 132 776
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Per common share (US$):
Net income (loss) 0.37 (0.11) 0.12 0.76
Diluted net income
(loss) 0.31 (0.11) 0.01 0.38
----------------------------------------------------------------------------
Weighted average number
of common shares
outstanding (millions)
Basic 1,025 1,021 1,025 1,023
Diluted 1,033 1,021 1,033 1,038
----------------------------------------------------------------------------
Talisman Energy Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three months ended Year ended
December 31 December 31
(millions of US$) 2012 2011 2012 2011
----------------------------------------------------------------------------
Operating activities
Net income (loss) 376 (117) 132 776
Add: Finance costs (cash
and non-cash) 63 69 276 278
Dividends from equity
investments - - - 9
Items not involving cash 162 809 2,433 2,124
----------------------------------------------------------------------------
601 761 2,841 3,187
Changes in non-cash
working capital (55) (250) (125) (375)
----------------------------------------------------------------------------
Cash provided by
operating activities 546 511 2,716 2,812
----------------------------------------------------------------------------
Investing activities
Capital expenditures
Exploration,
development and other (899) (1,287) (3,658) (4,303)
Corporate acquisitions,
net of cash acquired - - - (156)
Property acquisitions (50) (6) (109) (737)
Proceeds of resource
property dispositions 24 (7) 964 527
Repayment of note
receivable - - - 40
Acquisition deposit - - - 18
Investments (9) - (20) 54
Proceeds on reduction of
UK investment, net of
cash disposed 1,349 - 1,349 -
Changes in non-cash
working capital (10) 25 8 18
----------------------------------------------------------------------------
Cash provided by (used
in) investing
activities 405 (1,275) (1,466) (4,539)
----------------------------------------------------------------------------
Financing activities
Long-term debt repaid (816) (3) (1,807) (313)
Long-term debt issued 240 812 1,336 1,044
Common shares issued 4 5 13 114
Common shares purchased (1) (4) (25) (94)
Preferred shares issued - 191 - 191
Finance costs (cash) (44) (51) (190) (202)
Common share dividends (70) (139) (277) (277)
Preferred share
dividends (2) - (9) -
Deferred credits and
other (2) (1) 13 (9)
Changes in non-cash
working capital (34) (21) (6) 11
----------------------------------------------------------------------------
Cash provided by (used
in) financing
activities (725) 789 (952) 465
----------------------------------------------------------------------------
Effect of translation on
foreign currency cash
and cash equivalents (1) (3) 9 23
----------------------------------------------------------------------------
Net increase (decrease)
in cash and cash
equivalents 225 22 307 (1,239)
Cash and cash
equivalents net of bank
indebtedness, beginning
of period 496 392 414 1,653
----------------------------------------------------------------------------
Cash and cash
equivalents net of bank
indebtedness, end of
period 721 414 721 414
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and cash
equivalents 721 474 721 474
Bank indebtedness - (60) - (60)
----------------------------------------------------------------------------
Cash and cash
equivalents net of bank
indebtedness, end of
period 721 414 721 414
----------------------------------------------------------------------------
Items not involving cash are as follows:
Three months ended Year ended
December 31 December 31
(millions of US$) 2012 2011 2012 2011
----------------------------------------------------------------------------
Depreciation, depletion
and amortization 756 546 2,501 1,949
Impairment, net of
reversals 581 124 2,744 226
Dry hole 78 68 269 241
Share-based payments
expense (recovery) (51) 34 (65) (324)
(Gain) loss on asset
disposals (865) 14 (1,624) (192)
Unrealized (gain) loss
on held-for-trading
financial instruments (51) 40 48 (61)
Deferred income tax
(recovery) 50 (51) (1,180) 228
Foreign exchange 31 (1) 40 (11)
PP&E derecognition - 7 20 26
Gain on revaluation of
investment (365) - (365) -
Other (2) 28 45 42
----------------------------------------------------------------------------
162 809 2,433 2,124
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Talisman Energy Inc.
Segmented Information
(unaudited)
North America (1) Southeast Asia (2)
--------------------------------------------------------
Three months Three months
ended Year ended ended Year ended
December 31 December 31 December 31 December 31
--------------------------------------------------------
(millions of US$) 2012 2011 2012 2011 2012 2011 2012 2011
----------------------------------------------------------------------------
Revenue
Sales 399 419 1,435 1,695 494 528 2,190 1,882
Other income 21 18 72 63 3 - 3 1
----------------------------------------------------------------------------
Total revenue and
other income 420 437 1,507 1,758 497 528 2,193 1,883
----------------------------------------------------------------------------
Segmented expenses
Operating 135 120 564 454 112 112 418 372
Transportation 16 19 92 68 11 13 53 55
DD&A 312 243 1,140 852 101 93 427 305
Impairment 179 129 363 129 - (16) - (16)
Dry hole - 2 22 6 11 35 77 127
Exploration 5 16 29 70 22 36 92 208
Other 38 15 81 22 (9) 12 (19) 17
----------------------------------------------------------------------------
Total segmented
expenses 685 544 2,291 1,601 248 285 1,048 1,068
----------------------------------------------------------------------------
Segmented income
(loss) before taxes (265) (107) (784) 157 249 243 1,145 815
----------------------------------------------------------------------------
Non-segmented
expenses
General and
administrative
Finance costs
Share-based payments
expense (recovery)
Currency translation
(Gain) loss on held-
for-trading
financial
instruments
(Gain) loss on
disposals
Gain on revaluation
of investment
----------------------------------------------------------------------------
Total non-segmented
expenses
----------------------------------------------------------------------------
Income (loss) before
taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital expenditure
Exploration 53 30 157 198 (5) 68 59 257
Development 257 636 1,404 1,960 119 113 362 230
Midstream 1 (3) 1 (3) - - - -
----------------------------------------------------------------------------
Exploration and
development 311 663 1,562 2,155 114 181 421 487
----------------------------------------------------------------------------
Acquisitions
Proceeds on
dispositions
Other non-segmented
----------------------------------------------------------------------------
Net capital
expenditures
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and
equipment 7,145 6,740 2,582 2,501
Exploration and
evaluation assets 2,078 2,370 527 498
Goodwill 133 140 170 149
Other 685 987 637 560
----------------------------------------------------------------------------
Segmented assets 10,041 10,237 3,916 3,708
Non-segmented assets
----------------------------------------------------------------------------
Total assets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Decommissioning
liabilities 476 394 347 208
----------------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
------------------------------------------------
1. North America 2012 2011 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Canada 224 268 853 1,127
US 196 169 654 631
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total revenue and other
income 420 437 1,507 1,758
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Canada 3,588 3,937
US 3,557 2,803
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and
equipment 7,145 6,740
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Canada 1,070 1,207
US 1,008 1,163
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Exploration and evaluation
assets 2,078 2,370
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
------------------------------------------------
2. Southeast Asia 2012 2011 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indonesia 266 292 1,157 1,126
Malaysia 127 146 549 532
Vietnam 13 15 72 65
Australia 91 75 415 160
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total revenue and other
income 497 528 2,193 1,883
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indonesia 1,040 1,023
Malaysia 852 883
Vietnam 494 297
Papua New Guinea 44 47
Australia 152 251
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and
equipment 2,582 2,501
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indonesia 11 12
Malaysia 72 41
Vietnam 14 5
Papua New Guinea 430 440
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Exploration and evaluation
assets 527 498
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Talisman Energy Inc.
Segmented Information
(unaudited)
North Sea (3) Other (4)
----------------------------------------------------
Three months Three months
ended Year ended ended Year ended
December 31 December 31 December 31 December 31
----------------------------------------------------
(millions of US$) 2012 2011 2012 2011 2012 2011 2012 2011
----------------------------------------------------------------------------
Revenue
Sales 552 966 2,981 4,074 137 149 623 543
Other income 3 2 8 14 (3) - - -
----------------------------------------------------------------------------
Total revenue and other
income 555 968 2,989 4,088 134 149 623 543
----------------------------------------------------------------------------
Segmented expenses
Operating 357 376 1,383 1,292 25 22 87 72
Transportation 14 22 69 84 2 3 7 9
DD&A 313 169 796 671 30 41 138 121
Impairment 372 11 2,097 113 30 - 284 -
Dry hole 24 31 45 106 43 - 125 2
Exploration 15 12 47 40 76 28 178 109
Other 2 83 42 105 (14) 9 (12) 29
----------------------------------------------------------------------------
Total segmented
expenses 1,097 704 4,479 2,411 192 103 807 342
----------------------------------------------------------------------------
Segmented income (loss)
before taxes (542) 264 (1,490) 1,677 (58) 46 (184) 201
----------------------------------------------------------------------------
Non-segmented expenses
General and
administrative
Finance costs
Share-based payments
expense (recovery)
Currency translation
(Gain) loss on held-
for-trading financial
instruments
(Gain) loss on
disposals
Gain on revaluation of
investment
----------------------------------------------------------------------------
Total non-segmented
expenses
----------------------------------------------------------------------------
Income (loss) before
taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital expenditure
Exploration 22 23 86 128 51 56 249 138
Development 301 237 1,087 1,077 39 42 106 157
Midstream - - - - - - - -
----------------------------------------------------------------------------
Exploration and
development 323 260 1,173 1,205 90 98 355 295
----------------------------------------------------------------------------
Acquisitions
Proceeds on
dispositions
Other non-segmented
----------------------------------------------------------------------------
Net capital
expenditures
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and
equipment 2,449 5,809 829 859
Exploration and
evaluation assets 451 538 460 548
Goodwill 549 866 162 162
Other 1,675 645 1,252 788
----------------------------------------------------------------------------
Segmented assets 5,124 7,858 2,703 2,357
Non-segmented assets
----------------------------------------------------------------------------
Total assets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Decommissioning
liabilities 1,897 2,390 72 43
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Talisman Energy Inc.
Segmented Information
(unaudited)
Total
-----------------------------------------------------
Three months ended Year ended
December 31 December 31
-----------------------------------------------------
(millions of US$) 2012 2011 2012 2011
----------------------------------------------------------------------------
Revenue
Sales 1,582 2,062 7,229 8,194
Other income 24 20 83 78
----------------------------------------------------------------------------
Total revenue and other
income 1,606 2,082 7,312 8,272
----------------------------------------------------------------------------
Segmented expenses
Operating 629 630 2,452 2,190
Transportation 43 57 221 216
DD&A 756 546 2,501 1,949
Impairment 581 124 2,744 226
Dry hole 78 68 269 241
Exploration 118 92 346 427
Other 17 119 92 173
----------------------------------------------------------------------------
Total segmented
expenses 2,222 1,636 8,625 5,422
----------------------------------------------------------------------------
Segmented income (loss)
before taxes (616) 446 (1,313) 2,850
----------------------------------------------------------------------------
Non-segmented expenses
General and
administrative 128 128 510 431
Finance costs 63 69 276 278
Share-based payments
expense (recovery) (51) 35 (62) (310)
Currency translation 12 (1) 33 (12)
(Gain) loss on held-
for-trading financial
instruments (35) 79 93 210
(Gain) loss on
disposals (865) 14 (1,624) (192)
Gain on revaluation of
investment (365) - (365) -
----------------------------------------------------------------------------
Total non-segmented
expenses (1,113) 324 (1,139) 405
----------------------------------------------------------------------------
Income (loss) before
taxes 497 122 (174) 2,445
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital expenditure
Exploration 121 177 551 721
Development 716 1,028 2,959 3,424
Midstream 1 (3) 1 (3)
----------------------------------------------------------------------------
Exploration and
development 838 1,202 3,511 4,142
----------------------------------------------------------------------------
Acquisitions 101 (197) 160 1,319
Proceeds on
dispositions (24) 5 (964) (569)
Other non-segmented 49 82 138 159
----------------------------------------------------------------------------
Net capital
expenditures 964 1,092 2,845 5,051
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and
equipment 13,005 15,909
Exploration and
evaluation assets 3,516 3,954
Goodwill 1,014 1,317
Other 4,249 2,980
----------------------------------------------------------------------------
Segmented assets 21,784 24,160
Non-segmented assets 74 66
----------------------------------------------------------------------------
Total assets 21,858 24,226
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Decommissioning
liabilities 2,792 3,035
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
------------------------------------------------
3. North Sea 2012 2011 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UK 381 656 2,075 2,835
Norway 174 312 914 1,253
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total revenue and other
income 555 968 2,989 4,088
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UK 1,989 3,927
Norway 460 1,882
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and
equipment 2,449 5,809
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UK 197 210
Norway 254 328
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Exploration and evaluation
assets 451 538
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
------------------------------------------------
4. Other 2012 2011 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Algeria 36 61 213 256
Colombia 98 88 410 287
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total revenue and other
income 134 149 623 543
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Algeria 273 284
Colombia 556 575
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and
equipment 829 859
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Colombia 124 75
Kurdistan 323 303
Peru - 133
Other 13 37
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Exploration and evaluation
assets 460 548
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Contacts: Talisman Energy Inc. - Media and General Inquiries
Phoebe Buckland Manager, External Communications 403-237-1657
403-237-1210 (FAX)tlm@talisman-energy.com Talisman Energy Inc. -
Shareholder and Investor Inquiries Lyle McLeod Vice-President,
Investor Relations 403-767-5732 403-237-1902
(FAX)tlm@talisman-energy.com 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