Talisman Reports Loss, Revs Lag Est - Analyst Blog
May 02 2013 - 11:20AM
Zacks
Canadian energy explorer,
Talisman Energy Inc. (TLM) reported weak
first-quarter 2013 results due to lower oil and liquids price
realizations. The company announced loss per share from continuing
operations (excluding non-operating items) of 6 cents against the
Zacks Consensus Estimate for a profit of 4 cents. In the year-ago
quarter, Talisman had earned 16 cents per share.
Quarterly total revenue of $1,123.0 million deceased 45.4% from
$2,056.0 million in the first quarter of 2012. The revenue also
missed the Zacks Consensus Estimate of $1,453.0 million due to
decreased production.
Volume Analysis
The quarter’s total production of 372 thousand barrels of oil
equivalent per day (MBOE/d) was down 19.5% from the year-ago level,
mainly due to the sale of a 49% equity interest in UK North Sea
business and a decrease in North American gas output. Higher
activity in Southeast Asia and Colombia was however
encouraging.
Oil & liquids production was down 43.9% at 98,706 barrels per
day (Bbl/d). Volumes were down due to lower production in the North
Sea and Southeast Asia.
Talisman’s natural gas volumes were down 12.1% at 1,420 million
cubic feet per day (MMcf/d), mainly due to the decrease in North
America.
Realized Prices
During the quarter, Talisman’s realized commodity prices dropped
15.9% from the year-ago quarter to $54.01 per barrel of oil
equivalent (BOE) mainly on account of lower oil and liquids
realizations from North America, Southeast Asia and North Sea.
Overall, natural gas prices increased 14.8% year over year to $5.96
per Mcf, while oil and liquids realizations averaged $97.72 per
barrel, down 15.0% from the year-ago level.
Cash Flow and Capital Expenditure
Cash flow from continuing operations totaled $517.0 million, down
39.2% year over year. Talisman spent $775.0 million on exploration
and development activities.
Balance Sheet
As of Mar 31, 2013, Talisman had cash and cash equivalents of
approximately $319.0 million and long-term debt of $4,509.0 million
(including current portion) with a debt-to-capitalization ratio of
31.8%.
Zacks Rating
Talisman currently retains a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, there are certain other companies in the energy sector
that are expected to perform better in the short term. These
include Zacks Ranked #1 (Strong Buy) EPL Oil & Gas
Inc. (EPL), Harvest Natural Resources
Inc. (HNR) and Newpark Resources Inc.
(NR).
EPL OIL&GAS INC (EPL): Free Stock Analysis Report
HARVEST NATURAL (HNR): Free Stock Analysis Report
NEWPARK RESOUR (NR): Free Stock Analysis Report
TALISMAN ENERGY (TLM): Free Stock Analysis Report
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