Talisman Energy 2013 Results - Announced over $2 Billion in Asset
Sales, Improved Operational Efficiency and Capital Discipline
CALGARY, ALBERTA--(Marketwired - Feb 12, 2014) - Talisman Energy
Inc. (TSX:TLM) (NYSE:TLM) reported its operating and unaudited
financial results for 2013. All values are in US$ unless otherwise
stated.
"We continue to build a strong foundation in our Americas and
Asia-Pacific core businesses to deliver sustainable shareholder
value and cash flow(1) growth," said Hal Kvisle, President and CEO.
"In 2013, we set four priorities and built significant momentum
behind each one. We reduced capital spending(1) by 20%, improved
our operating efficiency and reduced costs, including an underlying
20% year-on-year reduction in net G&A. In addition, we
announced over $2 billion in assets sales in 2013.
"In our Americas and Asia-Pacific businesses, we grew higher
margin production and cash flow. Overall, we produced 373,000 boe/d
and generated $2.2 billion of cash flow in 2013, including $580
million in the fourth quarter, building momentum throughout the
year. In 2014, we will continue to focus on creating value in our
two core areas by directing capital towards our highest quality
opportunities and improving margins through better execution."
Year-end and Fourth
Quarter Highlights:
- Fourth quarter production was 387,000 boe/d, up from 371,000
boe/d in the third quarter.
- In 2013, production averaged 373,000 boe/d and cash flow was
approximately $2.2 billion, growing by 12% from the first to fourth
quarters. Fourth quarter cash flow was $580 million, up from $573
million in the third quarter.
- Capital spending was $3.2 billion in 2013, down 20% from 2012.
Fourth quarter capital spending was $744 million, down from $849
million in the third quarter.
To view the graph associated with this release, please visit the
following link:
http://media3.marketwire.com/docs/211tlm_graph.jpg
(1) The terms "cash flow" and "capital spending" are non-GAAP
measures. Please see the advisories and reconciliations elsewhere
in this release.
Progress Against
Priorities
Living within our means
Talisman reduced capital spending in 2013 by 20% to $3.2
billion, compared to $4 billion in 2012, reflecting a concentrated
effort to reduce high risk, low return expenditures resulting in a
25% reduction in exploration spending. Talisman remains committed
to capital discipline and will continue to focus on the Americas
and Asia-Pacific. The company has ongoing material legacy capital
obligations in non-core assets such as the North Sea until the
company is able to dilute or exit its interests in those
assets.
Focusing our capital program
In 2013, the company focused its capital program on oil and
liquids opportunities that generate higher, more predictable
returns, delivering 6% liquids production growth from the first
quarter to the fourth quarter. Fourth quarter production was
387,000 boe/d, up from 371,000 boe/d in the third quarter. The
company produced 358,000 boe/d in its Americas and Asia-Pacific
core areas in the fourth quarter. In 2013, the company exited
Poland, received government approval to transfer its interests in
Sierra Leone and is in the process of exiting Peru.
Improving operational efficiency and reducing costs
Talisman continued to improve operational efficiency. In North
America, year-over-year drilling and completion costs were down 16%
in the Eagle Ford, 13% in the Duvernay and 9% in the Marcellus.
Drilling cycle times were down 17% in the Montney and 25% in both
the Eagle Ford and Marcellus. In Vietnam, Talisman achieved first
oil production at its HST/HSD project ahead of schedule and under
budget. The company made staffing reductions in its corporate
centre and North American operations, resulting in an underlying
20% reduction (excluding certain one-off costs) in net G&A.
Unlocking value from our portfolio(2)
Talisman announced over $2 billion in asset sales in 2013
including the sale of 75% of its Montney assets in Canada for C$1.5
billion, and its equity interest in the Ocensa pipeline in Colombia
for $595 million. In the fourth quarter, Talisman also entered into
an agreement to sell its Southeast Sumatra asset in Indonesia.
Following year-end 2013, the company entered into an agreement to
sell its sour gas Foothills Monkman asset.
(2) See advisories for a discussion of this term.
Financial
Results
The financial information contained in this release is
unaudited. The company expects to file its audited Consolidated
Financial Statements for the year ended December 31, 2013, along
with the related Management Discussion and Analysis, Annual
Information Form and Annual Report on Form 40-F on March 3, 2014.
For operational purposes, Talisman has two core operating areas:
the Americas (North America and Colombia) and Asia-Pacific
(Southeast Asia and Algeria). For the purposes of financial
reporting, Talisman's 2013 activities were conducted in four
geographic segments: North America, Southeast Asia, North Sea and
Other. See the advisories elsewhere in this release for more
information or visit Talisman's website at
www.talisman-energy.com.
December 31 |
Q4 13 |
|
Q3 13 |
|
Q4 12 |
|
2013 |
|
2012 |
Cash flow ($ million) |
580 |
|
573 |
|
675 |
|
2,196 |
|
3,022 |
Cash flow per share(3) |
0.56 |
|
0.56 |
|
0.66 |
|
2.13 |
|
2.95 |
Earnings (loss) from operations3 ($ million) |
(116 |
) |
(45 |
) |
(107 |
) |
(248 |
) |
95 |
Earnings (loss) from operations per share3 |
(0.11 |
) |
(0.04 |
) |
(0.10 |
) |
(0.24 |
) |
0.09 |
Net income (loss) ($ million) |
(1,005 |
) |
(54 |
) |
376 |
|
(1,175 |
) |
132 |
Net income (loss) per share |
(0.98 |
) |
(0.05 |
) |
0.37 |
|
(1.15 |
) |
0.12 |
Average shares outstanding - basic (million) |
1,031 |
|
1,031 |
|
1,025 |
|
1,030 |
|
1,025 |
Table includes the company's proportionate results from
Talisman Sinopec Energy UK Limited (TSEUK) and Equión Energía
Limited (Equión). Table reflects 100% interest of UK business until
December 2012.
Steady cash flow growth throughout 2013
Cash flow for the fourth quarter was $580 million, compared to
$573 million in the previous quarter, due to increased gas
production at PM-3 in Malaysia, successful Marcellus gas
development, increased HST/HSD oil production volumes, increased
production and higher realized gas prices in Greater Edson and
lower cash taxes. This was partially offset by lower netbacks
resulting from lower sales into the premium Singapore market and
the widening of Western Canada Select differentials in Canada, as
well as unexpected operational issues in the UK that resulted in
the Piper and Claymore facilities being shut in for most of the
quarter, incurring higher operating costs to address the issues.
Cash flow for 2013 was $2.2 billion. Talisman delivered quarterly
cash flow growth during the course of 2013 as the company focused
on increasing liquids volumes production in the Americas and
Asia-Pacific, reducing G&A spending and benefiting from lower
cash taxes.
In the fourth quarter, the company recorded a loss from
operations (which exclude non-operational items) of $116 million,
compared to a loss of $45 million in the third quarter. Higher
liquids volumes in North America, Norway and Vietnam, higher gas
volumes from Marcellus and Malaysia, lower hedging settlements,
lower current taxes and lower exploration expense were more than
offset by lower netbacks in Southeast Asia and Canada and lower
volumes from the UK.
(3) The terms "cash flow per share", "earnings (loss) from
operations" and "earnings (loss) from operations per share" are
non-GAAP measures. Please see advisories and reconciliations
elsewhere in this news release.
The company recorded a net loss of approximately $1.2 billion in
2013 compared to net income of $132 million in 2012. This was due
to lower production from the North Sea primarily as a result of the
sale of 49% of Talisman's UK business, higher royalties and lower
capitalized interest costs, partially offset by lower impairments,
higher liquids production in the Eagle Ford and Vietnam, lower
operating expenses, lower G&A spending, lower DD&A expense
and lower dry hole expense. In addition, 2012 net income reflected
a non-taxable gain of $860 million made on the sale of 49% of
Talisman's UK business for $1.5 billion and a $365 million gain on
the revaluation of the Ocensa pipeline. The company recorded a net
loss of approximately $1 billion in the fourth quarter, compared to
a loss of $54 million in the third quarter, primarily due to
impairments.
DD&A expense in 2013 was $1.9 billion, compared to $2.4
billion in 2012, due primarily to the application of equity
accounting to the TSEUK joint venture from December 17, 2012 onward
and lower production in Canada, the Marcellus and Kitan. This was
partially offset by higher production and unit rates in the Eagle
Ford and new production at HST/HSD in Vietnam and Kinabalu in
Malaysia. DD&A was $555 million in the fourth quarter, up from
$482 million in the third quarter, primarily due to increased
production in Indonesia, Malaysia, Vietnam and Norway.
Asset and goodwill impairments, including the company's share of
joint venture results, were $1.6 billion pre-tax ($826 million
after tax) in the fourth quarter. The company recorded a $651
million pre-tax ($277 million after tax) impairment in the TSEUK
joint venture as a result of negative reserves revisions influenced
by poor reservoir and asset performance, increased decommissioning
cost estimates, and higher development and operating cost
estimates.
The company recorded a net impairment expense of $358 million
pre-tax ($79 million post-tax) in Norway. The impairments are a
result of increased decommissioning costs on Gyda and Rev and
negative reserves revisions at Varg.
The company recorded a non-taxable impairment of $185 million
related to North Sea goodwill as a result of its view of the
reduced value of the UK and Norway assets.
During 2013, the company recorded an impairment expense of $332
million pre-tax ($252 million post-tax) in North America. The
majority of this impairment was recorded in conventional dry gas
properties in Canada as a result of the company lowering its
long-term gas price assumptions by 25% over last year as well as
increased cost assumptions in certain conventional gas assets.
The company recorded $55 million pre-tax ($27 million post-tax)
impairments in Kitan following negative reserves revisions driven
by poor well performance.
Current taxes were $166 million in the fourth quarter and $623
million for the year, down from the third quarter and 2012 due to
lower revenues in the North Sea and the sale of a 49% equity
interest in Talisman's UK business in 2012.
The company's deferred tax recovery in 2013 was $770 million
compared to a deferred tax recovery of $1.2 billion in 2012. This
was principally due to lower impairments in the North Sea and the
sale of Talisman's equity investment in the Ocensa pipeline.
Capital spending for the year was $3.2 billion, down 20% from
2012, reflecting the company's efforts to live within its means and
shift capital towards oil and liquids opportunities. Exploration
and development spending in the fourth quarter was $744 million,
down from $849 million in the third quarter.
Net debt(4) at year-end was approximately $4.8 billion compared
to approximately $3.7 billion at year-end 2012. The company will
use proceeds from announced dispositions to continue to pay down
debt.
(4)The term "net debt" is a non-GAAP measure. Please see
advisories and reconciliations elsewhere in this release.
Commodity Pricing and
Netbacks
December 31 |
Q4 13 |
Q3 13 |
Q4 12 |
2013 |
2012 |
Pricing |
|
|
|
|
|
WTI benchmark ($/bbl) |
97.45 |
105.83 |
88.18 |
97.97 |
94.22 |
Brent benchmark ($/bbl) |
109.27 |
110.36 |
110.02 |
108.66 |
111.61 |
NYMEX benchmark ($/mmbtu) |
3.62 |
3.60 |
3.36 |
3.67 |
2.80 |
Netbacks |
Oil and liquids netback ($/bbl) |
North America |
39.67 |
47.68 |
44.17 |
40.65 |
44.85 |
Southeast Asia |
46.88 |
40.06 |
36.31 |
36.55 |
44.87 |
North Sea |
9.18 |
35.80 |
33.43 |
28.42 |
55.54 |
Other |
53.17 |
53.43 |
58.72 |
57.15 |
61.21 |
Total oil and liquids ($/bbl) |
37.99 |
43.17 |
40.09 |
38.96 |
51.96 |
Natural gas netback ($/mcf) |
North America |
1.54 |
1.35 |
1.50 |
1.45 |
0.87 |
Southeast Asia |
4.85 |
5.18 |
4.85 |
5.32 |
5.45 |
North Sea |
6.21 |
5.79 |
4.67 |
7.30 |
6.61 |
Other |
1.43 |
1.97 |
1.36 |
1.86 |
1.84 |
Total natural gas ($/mcf) |
2.72 |
2.72 |
2.69 |
2.88 |
2.52 |
Total company netback ($/boe) |
23.93 |
25.98 |
24.82 |
24.93 |
29.13 |
North Sea results include Norway and the company's
proportionate results from TSEUK; Other results include Colombia
and the company's proportionate results from Equión and Algeria.
The company's realized sales price includes the impact of physical
commodity contracts, but does not include the impact of the
financial commodity price derivatives.
Pricing
In 2013, Brent and WTI prices were largely flat compared to
2012; however, NYMEX natural gas prices were up 31% over the
previous year. On a quarterly basis, Brent prices stayed flat over
the previous quarter and WTI prices decreased 8% from the third
quarter. NYMEX natural gas prices were flat from last quarter.
Western Canada Select differentials widened between the third and
fourth quarters of 2013, resulting in a marked reduction in North
American liquids netbacks in the quarter.
Netbacks
In 2013, the company's average gross netback was $24.93/boe,
down from $29.13/boe in 2012 due to lower realized prices, higher
royalties and transportation costs, partially offset by lower
operating costs. Talisman's gross oil and liquids netback was
$38.96/boe, down 25% from 2012 due to decreased realized prices
compared to 2012, higher royalties and transportation costs,
partially offset by lower operating costs. Talisman's gross natural
gas netback was $2.88/mcf in 2013, up from $2.52/mcf in 2012 due to
higher realized prices partially offset by higher royalties and
operating costs. The company's fourth quarter gross netback was
$23.93/boe compared to $25.98/boe in the third quarter.
In North America, the company's 2013 average gross netback was
$14.83/boe, up from $10.87/boe in 2012, due primarily to growing
liquids production in the Eagle Ford and higher North American gas
prices. The company's fourth quarter gross netback in North America
was $15.48/boe, down from $16.07/boe in the third quarter.
In Southeast Asia, the company's 2013 netback was $33.51/boe,
down from $36.58/boe in 2012 due in part to a change in production
mix following the startup of production at HST/HSD, offset by
higher royalties at PM-3 in Malaysia and higher operating cost per
barrel at Kitan in Australia. The company's fourth quarter gross
netback in Southeast Asia was $35.30/boe, up from $34.20/boe in the
third quarter.
Production
Table includes Talisman's share of production from
subsidiaries and equity-accounted entities. Talisman's UK North Sea
equity interest was reduced to 51% in December 2012.
December 31 |
Q4 13 |
Q3 13 |
Q4 12 |
2013 |
2012 |
Oil and liquids (mbbls/d) |
North America |
40 |
37 |
29 |
35 |
27 |
Southeast Asia |
47 |
44 |
40 |
44 |
42 |
North Sea |
28 |
32 |
53 |
32 |
71 |
Other (including Colombia and Algeria) |
22 |
21 |
21 |
21 |
22 |
Total oil and liquids (mbbls/d) |
137 |
134 |
143 |
132 |
162 |
Natural gas (mmcf/d) |
North America |
928 |
882 |
924 |
883 |
985 |
Southeast Asia |
524 |
491 |
511 |
516 |
524 |
North Sea |
8 |
6 |
20 |
9 |
31 |
Other (including Colombia and Algeria) |
45 |
44 |
43 |
43 |
42 |
Total natural gas (mmcf/d) |
1,505 |
1,423 |
1,498 |
1,451 |
1,582 |
Total mboe/d |
387 |
371 |
392 |
373 |
426 |
Assets sold or held for sale (mboe/d) |
North America1 |
25 |
22 |
26 |
24 |
31 |
North Sea2 |
- |
- |
17 |
- |
25 |
Southeast Asia3 |
3 |
3 |
6 |
4 |
6 |
Total Assets sold or held for sale (mboe/d) |
28 |
25 |
49 |
28 |
62 |
Production from ongoing operations (mboe/d) |
359 |
346 |
343 |
345 |
364 |
1 |
Includes Montney (held for sale as at December 31, 2013),
Monkman (entered into an agreement to sell post year-end 2013),
West Whitecourt and Shaunavon (sold in 2012). |
2 |
Includes UK (49% of interest in UK business sold December
2012). |
3 |
Includes Northwest Java (sold in May 2013) and Southeast
Sumatra (sales agreement reached in December 2013). |
In 2013, production was 373,000 boe/d. Fourth quarter production
was 387,000 boe/d, up from 371,000 boe/d in the third quarter due
in part to increased development activity in the Marcellus,
completion of planned maintenance at PM-3 in Malaysia and
completion of project tie-in work at Corridor in Indonesia. These
increases were partially offset by planned and unplanned outages in
the North Sea. Total oil and liquids production was 137,000 bbls/d
in the fourth quarter compared to 134,000 bbls/d in the third
quarter. Dispositions agreed in 2013 and early 2014 reduce annual
production from ongoing operations to 345,000 boe/d.
Replaced 110% of production on proved (1P) basis
In 2013, the company recorded positive additions and revisions
of approximately 166 million boe of 1P reserves and approximately
144 million boe proved plus probable (2P) reserves in its Americas
core area against production of approximately 73 million boe. The
reserve additions are primarily a result of successful development
programs and improving well performance. In its Americas and
Asia-Pacific core areas, the company replaced over 110% of
production with 2P reserves increases on a company gross share
basis.
The company recorded negative additions and revisions of
approximately 21 million boe of 1P reserves in 2013 associated with
the company's non-core North Sea (UK and Norway) business. A key
factor in these negative reserve changes was Talisman's decision to
limit capital investments in non-core regions.
At year-end 2013, Talisman's 1P reserves totaled 1.1 billion
boe, which equates to a reserve life index of 8.1 years. Talisman's
2P reserves totaled 1.6 billion boe at year-end 2013, down 4%
primarily due to production and revisions. The company\'s 1P
reserves replacement ratio was 110%.
Acquisitions and divestures increased 1P reserves by 3.5 million
boe and 2P reserves by 8.4 million boe and are included in the
totals above, but not in the table below.
Talisman will release complete year-end reserves disclosure as
part of its Annual Information Form on March 3, 2014.
|
|
Production |
|
1P Additions & Revisions |
|
|
2P Additions & Revisions |
|
|
|
million boe |
|
million boe |
|
|
million boe |
|
|
|
|
|
|
|
|
|
|
Americas |
|
72.7 |
|
165.6 |
|
|
143.5 |
|
Asia-Pacific |
|
50.5 |
|
1.1 |
|
|
(7.2 |
) |
Core Total |
|
123.2 |
|
166.7 |
|
|
136.3 |
|
North Sea |
|
12.4 |
|
(20.8 |
) |
|
(78.8 |
) |
Total |
|
135.6 |
|
145.9 |
|
|
57.5 |
|
All of the reserves estimates in this document are provided
in accordance with National Instrument 51-101 (Canadian
regulations), which utilize forecast pricing and costs. The company
also estimates proved reserves in accordance with US disclosure
standards, utilizing historic 12-month average pricing. The
difference between the results of the two methods is less than 1%,
or approximately 10 million boe.
Strong liquids growth and improved operating efficiency in North
America
December 31 |
Q4 13 |
Q3 13 |
Q4 12 |
2013 |
2012 |
Gas |
|
|
|
|
|
|
Edson-Duvernay-Montney |
219 |
216 |
226 |
214 |
229 |
|
Marcellus |
475 |
443 |
475 |
446 |
514 |
|
Eagle Ford |
68 |
66 |
48 |
59 |
40 |
|
Other |
21 |
24 |
19 |
23 |
29 |
Gas from ongoing operations (mmcf/d) |
783 |
749 |
768 |
742 |
812 |
Liquids |
|
|
|
|
|
|
Edson-Duvernay-Montney |
9 |
5 |
6 |
6 |
5 |
|
Eagle Ford |
20 |
21 |
11 |
18 |
9 |
|
Chauvin |
11 |
11 |
12 |
11 |
12 |
Liquids from ongoing operations (mbbls/d) |
40 |
37 |
29 |
35 |
26 |
Total production from ongoing operations (mboe/d) |
171 |
162 |
157 |
159 |
161 |
Assets sold or held for sale (mmcfe/d)1 |
147 |
133 |
157 |
143 |
186 |
Total North America production (mboe/d) |
195 |
184 |
183 |
182 |
192 |
|
|
|
|
|
|
1 |
Includes Montney (held for sale as at December 31, 2013),
Monkman (entered into an agreement to sell post year-end 2013),
West Whitecourt and Shaunavon (sold in 2012). |
In North America, production in the fourth quarter averaged
195,000 boe/d, up 6% from the previous quarter due to increased
production in the Eagle Ford, gas development activity in the
Marcellus and increased liquids production via a third party deep
cut processing plant in Wild River, partially offset by natural
declines. Full-year North American production from ongoing
operations averaged 159,000 boe/d, with liquids production of
35,000 bbls/d.
In the Eagle Ford, production was 32,000 boe/d in the fourth
quarter, up 68% over the same period last year. Liquids volumes
were up 82% to 20,000 boe/d in the fourth quarter compared to the
same period last year. In 2013, Talisman brought onstream 121 gross
operated wells compared to 66 in 2012, as activity shifted from
drilling single land retention wells to higher value acreage and
pad drilling. The company continues to make improvements to cost
and operational efficiency, reducing average drilling and
completion costs to $8.5 million per well, down 16% from the
previous year.
In the Marcellus, production increased by 7% in the fourth
quarter to 475 mmcf/d, as a result of increased capital spending
mid-year to complete and tie-in 23 additional wells from the
company's inventory of 70 drilled but uncompleted wells. Drilling
cycle times were reduced by 25% versus the previous year to an
average of 13 days, and drilling costs were reduced by 9%.
Optimization of compression costs and the short-term sale of excess
transportation capacity lowered operating costs by $40 million for
the year. The company also drilled six wells of a seven-well
program in the Friendsville area, with the seventh well to be
drilled in early 2014.
In the Greater Edson area, the third party deep cut processing
plant at Wild River came onstream in late October. Natural gas
liquids volumes were approximately 5,000 bbls/d net to Talisman
(approximately 70% ethane), once the plant reached full operating
efficiency in mid-November. In the Wilrich play, three wells were
brought onstream during the quarter, with 30-day average sales
rates ranging from 5.6 to 5.9 mmcf/d with 170 to 525 bbls/d of
liquids.
In the Duvernay, Talisman has drilled eight appraisal wells to
date and continues to evaluate its extensive acreage position. The
two most recent wells drilled had seven-day average rates of 2.2
mmcf/d of gas and 550 bbls/d of condensate.
As part of its commitment to realize value from its portfolio,
during the fourth quarter Talisman announced it had reached an
agreement to sell 75% of its Montney acreage in northeast British
Columbia for a total cash consideration of C$1.5 billion. The
transaction is expected to close during the first quarter of 2014
following receipt of regulatory approvals. Also, following year-end
2013, the company entered into an agreement to sell its sour gas
Foothills Monkman asset.
Building liquids momentum in Blocks CP0-9 and CPE-6 in
Colombia
In Colombia, production increased slightly quarter-over-quarter
to 18,000 boe/d. In mid-December, the company produced a record
20,000 boe/d net.
In Block CPO-9, Talisman and its partner successfully completed
drilling the ninth and final well of the current appraisal program
in the Akacías field. As of the first week of February, six wells
have been put on long-term test including Akacais-1, producing
approximately 8,000 bbls/d (gross) of 8 degree API oil. Based on
these results, the company is moving forward with field development
planning. Talisman expects to begin long-term testing operations on
the four remaining wells, which are expected to be onstream in the
first half of 2014.
In Block CPE-6, Talisman and its partner secured the necessary
environmental permits in November to begin drilling operations. Two
vertical wells are on long-term test and have proven the presence
of movable oil. An additional two vertical wells, one horizontal
well and one water injector have been drilled with results pending.
Appraisal drilling and testing will continue into the second
quarter of 2014.
Talisman completed the sale of its 12% equity stake in the
Ocensa pipeline during the quarter for $595 million. The company
has retained its full rights to shipping capacity on the pipeline
and continues to build a strong revenue-generating marketing
business in Colombia, loading its first vessel for export in
December. The company retained its ability to market unused
capacity, which can be contracted out at a premium to other
shippers.
Continued growth in the company's high netback Southeast Asia
core area
December 31 |
Q4 13 |
Q3 13 |
Q4 12 |
2013 |
2012 |
Malaysia liquids (mbbls/d) |
19 |
18 |
17 |
19 |
17 |
Malaysia gas (mmcf/d) |
112 |
98 |
132 |
117 |
122 |
Malaysia (mboe/d) |
37 |
34 |
39 |
38 |
37 |
Indonesia liquids (mbbls/d) |
6 |
7 |
7 |
7 |
7 |
Indonesia gas (mmcf/d) |
400 |
381 |
366 |
387 |
389 |
Indonesia (mboe/d) |
73 |
70 |
68 |
72 |
72 |
Vietnam liquids (mbbls/d) |
15 |
13 |
2 |
9 |
2 |
Vietnam gas (mmcf/d) |
8 |
8 |
- |
5 |
- |
Vietnam (mboe/d) |
17 |
14 |
2 |
10 |
2 |
Australia (mboe/d) |
4 |
4 |
10 |
6 |
12 |
Total production from ongoing operations (mboe/d) |
131 |
122 |
119 |
126 |
123 |
Assets sold or held for sale (mboe/d)1 |
3 |
3 |
6 |
4 |
6 |
Southeast Asia total (mboe/d) |
134 |
125 |
125 |
130 |
129 |
|
|
|
|
|
|
1 |
Includes Northwest Java (sold in May 2013) and Southeast
Sumatra (sales agreement reached in December 2013). |
Production in Southeast Asia averaged 134,000 boe/d in the
fourth quarter, up 7% over both the prior quarter and the same
period last year. Completion of project tie-in work at Corridor in
Indonesia and higher production in Vietnam was offset by the impact
of temporary fluctuations in gas demand at Corridor and PM-3 in
Malaysia. For the year, production was up slightly from 2012 on
additional volumes from Vietnam and Malaysia, and the completion of
tie-in work at Corridor.
In Malaysia, production averaged 38,000 boe/d in 2013, up
slightly from 2012 with the addition of volumes from Kinabalu
partly offset by slightly lower volumes at PM-3. Production for the
quarter averaged 37,000 boe/d, up 9% over the previous quarter
following the completion of planned maintenance. This was partially
offset by well tie-in work and process interruptions at Kinabalu.
The company successfully drilled and tied-in the first well of a
multi-well infill drilling program at Kinabalu. A second well was
drilled in December and was completed in January. The company
expects to add additional wells to the Kinabalu drilling program as
technical work progresses.
In Indonesia, fourth quarter production from ongoing operations
averaged 73,000 boe/d, up over the third quarter and same period
last year due to completion of project tie-in work, offset by a
planned shutdown and lower than expected seasonal demand near the
end of the year. A sales agreement was signed in December to
dispose of the Southeast Sumatra assets and is pending government
approval.
In Vietnam, fourth quarter production averaged 17,000 boe/d, up
21% from the previous quarter. For the year, production averaged
10,000 boe/d, up significantly over 2012 due to production from
HST/HSD following the successful startup of the project in May,
ahead of schedule and under budget. On Block 07/03, the company
successfully completed the CRD-3X well, including a sidetrack, and
is encouraged by the preliminary results. The company began
drilling the 07/03-CD-1X exploration well in January 2014, the
final commitment well on Block 07/03.
Algeria
Fourth quarter production averaged 12,000 boe/d, up from the
previous quarter as the EMK facility commissioning progressed and
production restrictions were partially lifted. Full-year production
is down slightly from the previous year due to temporary production
restrictions imposed by the regulator. Discussions with the
regulator are ongoing and restrictions are expected to be lifted
progressively through 2014.
Other Operating Areas
North Sea
Talisman's share of UK production in the fourth quarter averaged
14,000 boe/d, down 33% from the previous quarter with operations
affected by scheduled turnarounds and continued reliability issues
resulting in higher operating costs. The Claymore platform remained
shut down for the entire quarter due to unexpected repairs;
production is expected to resume by the end of the first quarter
2014. A planned turnaround at the Piper platform was extended by a
month, but has since returned to production. The company is working
to improve operational efficiency and reliability in 2014, but the
results of this work will take time.
In Norway, fourth quarter average daily production was 15,000
boe/d, 15% higher than the third quarter, primarily due to reduced
downtime for maintenance. The Varg gas export project saw first gas
in early February after a slight delay due to issues at the third
party host platform.
Kurdistan Region of Iraq
In the Topkhana Block, the Topkhana-2 well was spud in early
December and is currently ahead of schedule, with results expected
early in the second quarter 2014. In the Kurdamir Block, the
company plans to put the Kurdamir-2 well on a month-long extended
test at the end of March.
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 31, 2014 to shareholders of record at the close of business
on March 10, 2014.
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 March 31, 2014 to
shareholders of record at the close of business on March 10,
2014.
Conference Call
A conference call and webcast for investors, analysts and media
will be held at 11:00 a.m. MT (1:00 p.m. ET), February 12, 2014 to
discuss results. Participants will include Hal Kvisle, President
and Chief Executive Officer, and members of senior management. A
transcript of this call will be available on the Talisman Energy
website at www.talisman-energy.com.
Talisman Energy Inc. is a global upstream oil and gas company,
headquartered in Canada. Talisman has two core operating areas: the
Americas (North America and Colombia) and Asia-Pacific. 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; continued focus on the Americas and
Asia-Pacific; expected drilling activity in the Americas and
Asia-Pacific; expected balance sheet strength; expected closing of
the sale of the Montney acreage; expected drilling and test results
in Colombia; expected production from infill drilling at Kinabalu;
expected drilling, testing and results in the Kurdistan Region of
Iraq; expected lifting of restrictions in Algeria; and other
expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events,
conditions, results of operations or performance. The Company's
priorities and goals disclosed in this news release are objectives
only and their achievement cannot be guaranteed.
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 2014 assumes
escalating commodity prices. Closing of any transactions will be
subject to receipt of all necessary regulatory approvals and
completion of definitive agreements.
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
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; risks and uncertainties involving geology of
oil and gas deposits; risks associated with project management,
project delays and/or cost overruns; uncertainty related to
securing sufficient egress and access to markets; 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, including
decommissioning liabilities; risks related to strategic and capital
allocation decisions, including 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, interest rates and tax or royalty rates;
the outcome and effects of any future acquisitions and
dispositions; health, safety, security and environmental risks,
including risks related to the possibility of major accidents;
environmental regulatory and compliance risks, including with
respect to greenhouse gases and hydraulic fracturing; uncertainties
as to the availability and cost of credit and other financing and
changes in capital markets; risks in conducting foreign operations
(for example, civil, political and fiscal instability and
corruption); risks related to the attraction, retention and
development of personnel; changes in general economic and business
conditions; the possibility that government policies, regulations
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 or strategy are included
in Talisman'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. 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.
Throughout this news release, Talisman uses the term "unlocking
value" to describe the realization of the value of an asset within
Talisman's portfolio that, prior to its full or partial
disposition, was not valued at its full market value, as reflected
in Talisman's share price and enterprise value. By monetizing the
asset through a disposition or joint venture, the company is able
to attribute a market value to the asset that can quantifiably be
reflected in Talisman's share price and enterprise value.
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 and also include Equión Energia Limited
("Equión") and Talisman Sinopec Energy UK Limited ("TSEUK") unless
stated otherwise. 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.
Oil and Gas
Information
Reserves
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.
An exemption granted to Talisman also permits it to disclose
internally evaluated reserves data. Any reserves data contained in
this news release reflect 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 reserve life index ("RLI") of 8.1 years for 2013 production
was calculated by dividing the year-end proved reserves by 2013
production.
The reserves replacement ratio (before net acquisitions and
dispositions) was calculated by dividing the sum of yearly changes
(additions, discoveries, non-price revisions) to estimated proved
reserves during the year by the Company's production for that year.
The Company uses reserves replacement ratios as an indicator of the
Company's ability to replenish annual production volumes and grow
its reserves. It should be noted that a reserves replacement ratio
is a statistical indicator that has limitations. As an annual
measure, the ratio is limited because it typically varies widely,
based on the extent and timing of new discoveries, project
sanctioning and property acquisitions. Its predictive and
comparative value is also limited for the same reasons. In
addition, since the ratio does not include cost, value or timing of
future production of new reserves, it cannot be used as a measure
of created value.
Throughout this news release, Talisman makes reference to
production and reserves volumes. Unless otherwise stated, such
production volumes are stated on a gross basis, which means they
are stated on a Company interest basis prior to the deduction of
royalties and similar payments. In the US, net production volumes
and reserves estimates 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 (mcfe) which are calculated
at a conversion rate of one barrel of oil to 6,000 cubic feet of
gas. Boe and mcfe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf: 1 bbl and a 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.
In this news release, all references to "core" and "non-core"
assets, properties, areas and regions align with the Company's
current public disclosure regarding its assets and properties.
Talisman also discloses netbacks in this news release. Netbacks per
boe are calculated by deducting from the sales price associated
royalties, operating and transportation costs.
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, capital 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
Three Months Ended |
|
December 31, 2013 |
|
September 30, 2013 |
|
December 31, 2012 |
|
YTD 2013 |
|
YTD 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating activities |
442 |
|
637 |
|
408 |
|
1,767 |
|
2,396 |
|
Changes in non-cash working capital |
80 |
|
(166 |
) |
101 |
|
(4 |
) |
160 |
|
Add: Exploration expenditure |
52 |
|
66 |
|
118 |
|
260 |
|
346 |
|
Add: Pennsylvania impact fee1 |
- |
|
- |
|
- |
|
- |
|
25 |
|
Add: Restructuring costs |
10 |
|
6 |
|
- |
|
44 |
|
- |
|
Add: Income tax adjustments2 |
- |
|
- |
|
- |
|
15 |
|
- |
|
Add: Current tax on disposal3 |
51 |
|
- |
|
- |
|
51 |
|
- |
|
Less: Dividends and distributions received from equity-accounted
entities |
(21 |
) |
(37 |
) |
- |
|
(58 |
) |
- |
|
Less: Finance costs (cash) |
(77 |
) |
(77 |
) |
(45 |
) |
(295 |
) |
(190 |
) |
Cash flow from subsidiaries |
537 |
|
429 |
|
582 |
|
1,780 |
|
2,737 |
|
|
|
|
|
|
|
|
|
|
|
|
Add: Cash provided by operating activities from equity-accounted
entities |
58 |
|
86 |
|
138 |
|
416 |
|
320 |
|
Change in non-cash working capital from equity-accounted
entities |
(9 |
) |
54 |
|
(46 |
) |
3 |
|
(35 |
) |
Add: Exploration expenditure from equity-accounted entities |
- |
|
11 |
|
- |
|
18 |
|
- |
|
Less: Finance costs (cash) from equity-accounted entities |
(6 |
) |
(7 |
) |
1 |
|
(21 |
) |
- |
|
Cash flow from equity- accounted entities |
43 |
|
144 |
|
93 |
|
416 |
|
285 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow4 |
580 |
|
573 |
|
675 |
|
2,196 |
|
3,022 |
|
Cash flow per share |
0.56 |
|
0.56 |
|
0.66 |
|
2.13 |
|
2.95 |
|
Diluted cash flow per share |
0.56 |
|
0.55 |
|
0.65 |
|
2.13 |
|
2.93 |
|
- Pennsylvania impact fee amount represents the one-time impact
of the retrospective application of the legislation to wells
drilled pre-2012.
- A court ruling in Southeast Asia indicated an additional
current income tax of $31 million be charged during Q2 2013. In
addition, the company recorded a $16 million benefit from the
resolution of a tax position in North America in Q2.
- Current tax on the gain on disposal of Talisman's equity
interest in the Ocensa pipeline in Colombia.
- Includes cash flow from subsidiaries and Talisman's share of
equity-accounted entities' cash flow.
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, including Talisman's share of
cash flow from equity- accounted entities. 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 reported in the annual Consolidated Financial Statements
that will be filed on March 3, 2014. A reconciliation of cash
provided by operating activities to cash flow is provided
above.
Earnings (loss) from
Operations
Three Months Ended |
|
|
December 31, 2013 |
|
September 30, 2013 |
|
December 31, 2012 |
|
YTD 2013 |
|
YTD 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
(1,005 |
) |
(54 |
) |
376 |
|
(1,175 |
) |
132 |
|
Loss (gain) on disposals (tax adjusted) |
(163 |
) |
1 |
|
(862 |
) |
(207 |
) |
(1,427 |
) |
Unrealized (gain) loss on financial instruments (tax
adjusted)1 |
149 |
|
91 |
|
(46 |
) |
90 |
|
49 |
|
Share-based payments (tax adjusted)2 |
16 |
|
1 |
|
(40 |
) |
37 |
|
(64 |
) |
Foreign exchange on debt (tax adjusted) |
8 |
|
21 |
|
3 |
|
10 |
|
25 |
|
Impairment (tax adjusted) |
822 |
|
1 |
|
278 |
|
874 |
|
1,096 |
|
Pennsylvania impact fee (tax adjusted)3 |
- |
|
- |
|
- |
|
- |
|
16 |
|
Restructuring costs (tax adjusted) |
12 |
|
5 |
|
- |
|
38 |
|
- |
|
Gain on revaluation of investment (tax adjusted)4 |
- |
|
- |
|
(245 |
) |
- |
|
(245 |
) |
Income tax adjustments5 |
- |
|
- |
|
- |
|
41 |
|
- |
|
Recognition of deferred tax asset6 |
34 |
|
(92 |
) |
429 |
|
(58 |
) |
429 |
|
Deferred tax adjustments7 |
11 |
|
(19 |
) |
- |
|
102 |
|
84 |
|
Earnings (loss) from operations8 |
(116 |
) |
(45 |
) |
(107 |
) |
(248 |
) |
95 |
|
Earnings (loss) from operations per share |
(0.11 |
) |
(0.04 |
) |
(0.10 |
) |
(0.24 |
) |
0.09 |
|
Diluted earnings (loss) from operations per share |
(0.11 |
) |
(0.04 |
) |
(0.10 |
) |
(0.24 |
) |
0.09 |
|
- 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.
- 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.
- Pennsylvania impact fee amount represents the one-time impact
of the retrospective application of the legislation to wells
drilled pre-2012.
- Gain on revaluation of investment represents the fair value
adjustment recorded upon the restructuring of Talisman's investment
in Oleoducto Central S.A.
- A court ruling in Southeast Asia indicated an additional income
tax of $57 million be charged during Q2 2013. In addition, the
company recorded a $16 million benefit from the resolution of a tax
position in North America in Q2.
- During Q4 2013, the company derecognized deferred tax assets in
Vietnam as a result of Block 46/02 relinquishment. During Q3 2013,
the company recognized deferred tax assets in Vietnam based on
startup of HST/HSD. In Q4 2012, the company derecognized deferred
tax assets from US operations.
- Deferred tax adjustments largely comprise tax on foreign
exchange on tax pools.
- Earnings (loss) from operations include results and adjustments
from subsidiaries and Talisman's share of equity-accounted
entities.
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 adjustments include items from subsidiaries and Talisman's
share of equity-accounted entities. 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 reported in the annual
Consolidated Financial Statements that will be filed on March 3,
2014. A reconciliation of net income (loss) to earnings (loss) from
operations is provided above.
Capital
Spending
Three Months Ended |
|
December 31, 2013 |
September 30, 2013 |
December 31, 2012 |
YTD 2013 |
YTD 2012 |
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
Exploration, development and other |
537 |
608 |
836 |
2,363 |
3,509 |
Exploration expensed |
52 |
66 |
118 |
260 |
346 |
Exploration and development spending - subsidiaries |
589 |
674 |
954 |
2,623 |
3,855 |
|
|
|
|
|
|
Talisman's share of equity- accounted entities |
|
|
|
|
|
Exploration, development and other |
154 |
164 |
63 |
577 |
149 |
Exploration expensed |
1 |
11 |
- |
19 |
- |
Exploration and development spending - joint ventures |
155 |
175 |
63 |
596 |
149 |
|
|
|
|
|
|
Capital spending for subsidiaries and joint ventures |
744 |
849 |
1,017 |
3,219 |
4,004 |
Capital spending (or run rate or exploration and development
spending) is calculated by adjusting the capital expenditure per
the financial statements for exploration costs that were expensed
as incurred and adding Talisman's share of joint ventures.
Net Debt
As at |
|
|
December 31, 2013 |
|
September 30, 2013 |
|
December 31, 2012 |
|
|
|
|
|
|
|
|
Long-term debt |
5,239 |
|
5,504 |
|
4,442 |
|
Cash and cash equivalents, net of bank
indebtedness |
(351 |
) |
(405 |
) |
(553 |
) |
Subtotal |
4,888 |
|
5,099 |
|
3,889 |
|
|
|
|
|
|
|
|
Cash and cash equivalents from equity- accounted
entities1 |
|
|
|
|
|
|
|
TSEUK |
(21 |
) |
(55 |
) |
(64 |
) |
|
Equión |
(34 |
) |
(78 |
) |
(104 |
) |
Total net debt |
4,833 |
|
4,966 |
|
3,721 |
|
- Includes Talisman's share of equity-accounted entities' cash
and cash equivalents.
Net debt is calculated by adjusting the company's long-term debt
per the financial statements for bank indebtedness, cash and cash
equivalents from subsidiaries and joint ventures. The company uses
this information to assess its true debt position and eliminate the
impact of timing differences.
Sensitivities
Talisman's financial performance is affected by factors such as
changes in production volumes, commodity prices and exchange rates.
The estimated annualized impact of these factors for 2014
(excluding the effect of derivative contracts) is summarized in the
following table, based on a Dated Brent oil price of approximately
$100/bbl, a NYMEX natural gas price of approximately $4.00/mmbtu
and exchange rates of US$1=C$1 and UK£1=US$1.55.
(millions of $) |
Net Income1 |
|
Cash Provided by Operating Activities (GAAP2 |
) |
Cash Flow (Non-GAAP3 |
) |
Volume changes |
|
|
|
|
|
|
|
Oil - 10,000 bbls/d |
60 |
|
130 |
|
175 |
|
|
Natural gas - 60 mmcf/d |
10 |
|
55 |
|
60 |
|
Price changes4 |
|
|
|
|
|
|
|
Oil - $1.00/bbl |
20 |
|
25 |
|
30 |
|
|
Natural gas (North America)5 - $0.10/mcf |
15 |
|
25 |
|
25 |
|
Exchange rate changes |
|
|
|
|
|
|
|
US$/C$ decreased by US$0.01 |
(5 |
) |
(5 |
) |
(5 |
) |
|
US$/UK£ increased by US$0.02 |
- |
|
- |
|
5 |
|
|
|
|
|
|
|
|
|
1. |
Net
income includes Talisman's share of net income (loss) from TSEUK
and Equión, after tax. |
2. |
Changes in cash flow provided by operating activities (GAAP)
exclude TSEUK and Equión due to the application of equity
accounting. |
3. |
Changes in cash flow (Non-GAAP) include TSEUK and Equión and is
included for comparative purposes only. |
4. |
The
impact of price changes excludes the effect of commodity
derivatives. See specific commodity derivative terms in the "Risk
Management" section of the MD&A, and note 23 to the Annual
Consolidated Financial Statements that will be filed on March 3,
2014. |
5. |
Price
sensitivity on natural gas relates to North American natural gas
only. The company's exposure to changes in the natural gas prices
in the UK, Norway and Malaysia/Vietnam and Colombia is not
material. Most of the natural gas price in Indonesia is based on
the price of crude oil and, accordingly, has been included in the
price sensitivity for oil except for a small portion which is sold
at a fixed price. |
|
Talisman Energy Inc. |
Highlights |
(unaudited) |
|
|
Three months ended December 31 |
Year ended December 31 |
|
2013 |
|
2012 |
2013 |
|
2012 |
Financial |
|
|
|
|
|
|
(millions of US$ unless otherwise stated) |
|
|
|
|
|
|
Cash flow (1) |
580 |
|
675 |
2,196 |
|
3,022 |
Net income (loss) |
(1,005 |
) |
376 |
(1,175 |
) |
132 |
Exploration and development spending (1) |
744 |
|
1,017 |
3,219 |
|
4,004 |
Per common share (US$) |
|
|
|
|
|
|
|
Cash
flow (1) |
0.56 |
|
0.66 |
2.13 |
|
2.95 |
|
Net income (loss) |
(0.98 |
) |
0.37 |
(1.15 |
) |
0.12 |
Production (3) |
|
|
|
|
|
|
(Daily Average - Gross) |
|
|
|
|
|
|
Oil and liquids (bbls/d) |
|
|
|
|
|
|
|
North
America |
39,812 |
|
28,889 |
34,616 |
|
27,562 |
|
Southeast Asia |
46,582 |
|
40,158 |
43,658 |
|
41,296 |
|
North
Sea |
28,240 |
|
53,238 |
31,939 |
|
70,726 |
|
Other |
21,793 |
|
20,464 |
21,116 |
|
22,715 |
Total oil and liquids |
136,427 |
|
142,749 |
131,329 |
|
162,299 |
Natural gas (mmcf/d) |
|
|
|
|
|
|
|
North
America |
928 |
|
924 |
883 |
|
985 |
|
Southeast Asia |
524 |
|
511 |
516 |
|
524 |
|
North
Sea |
8 |
|
20 |
9 |
|
31 |
|
Other |
45 |
|
43 |
43 |
|
42 |
Total natural gas |
1,505 |
|
1,498 |
1,451 |
|
1,582 |
Total mboe/d (2) |
387 |
|
392 |
373 |
|
426 |
Prices (3) |
|
|
|
|
|
|
Oil and liquids (US$/bbl) |
|
|
|
|
|
|
|
North
America |
62.73 |
|
67.23 |
66.70 |
|
69.39 |
|
Southeast Asia |
111.74 |
|
106.53 |
108.56 |
|
111.69 |
|
North
Sea |
111.12 |
|
109.34 |
109.55 |
|
111.83 |
|
Other |
106.67 |
|
109.56 |
106.86 |
|
113.52 |
Total oil and liquids |
96.50 |
|
100.05 |
97.49 |
|
104.82 |
Natural gas (US$/mcf) |
|
|
|
|
|
|
|
North
America |
3.45 |
|
3.26 |
3.49 |
|
2.63 |
|
Southeast Asia |
8.64 |
|
8.86 |
9.44 |
|
9.28 |
|
North
Sea |
12.67 |
|
10.23 |
13.24 |
|
9.77 |
|
Other |
4.13 |
|
3.94 |
4.26 |
|
4.30 |
Total natural gas |
5.33 |
|
5.28 |
5.69 |
|
5.01 |
Total (US$/boe) (2) |
54.71 |
|
56.56 |
56.44 |
|
58.56 |
(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. |
(3) |
Production and realized prices include Talisman's proportionate
results from Talisman Sinopec Energy UK Limited (TSEUK) and Equión
Energía Limited (Equión). |
|
|
Talisman Energy Inc. |
Consolidated Balance Sheets |
(unaudited) |
|
|
December 31 (millions of US$) |
2013 |
2012 |
|
|
(restated)(1) |
Assets |
|
|
Current |
|
|
|
Cash
and cash equivalents |
364 |
553 |
|
Accounts receivable |
1,117 |
884 |
|
Risk
management |
17 |
48 |
|
Income and other taxes receivable |
52 |
10 |
|
Restricted cash |
121 |
- |
|
Inventories |
137 |
122 |
|
Prepaid expenses |
14 |
19 |
|
Assets held for sale |
776 |
- |
|
2,598 |
1,636 |
|
Other assets |
160 |
55 |
Restricted cash |
94 |
- |
Investments |
1,204 |
1,791 |
Risk management |
20 |
26 |
Goodwill |
575 |
775 |
Property, plant and equipment |
9,752 |
10,462 |
Exploration and evaluation assets |
3,165 |
3,319 |
Deferred tax assets |
1,593 |
1,273 |
|
16,563 |
17,701 |
Total assets |
19,161 |
19,337 |
|
Liabilities |
|
|
Current |
|
|
|
Bank
indebtedness |
13 |
- |
|
Accounts payable and accrued liabilities |
1,835 |
1,744 |
|
Current portion of Yme removal obligation |
121 |
- |
|
Risk
management |
101 |
81 |
|
Income and other taxes payable |
155 |
84 |
|
Loans
from joint ventures |
288 |
148 |
|
Current portion of long-term debt |
882 |
8 |
|
Liabilities associated with assets held for sale |
160 |
- |
|
3,555 |
2,065 |
|
Decommissioning liabilities |
1,727 |
1,514 |
Yme removal obligation |
131 |
- |
Other long-term obligations |
246 |
256 |
Risk management |
37 |
1 |
Long-term debt |
4,357 |
4,434 |
Deferred tax liabilities |
553 |
1,157 |
|
7,051 |
7,362 |
|
Shareholders' equity |
|
|
Common shares |
1,723 |
1,639 |
Preferred shares |
191 |
191 |
Contributed surplus |
135 |
121 |
Retained earnings |
5,695 |
7,148 |
Accumulated other comprehensive income |
811 |
811 |
|
8,555 |
9,910 |
Total liabilities and shareholders' equity |
19,161 |
19,337 |
(1) |
2012
Consolidated Balance Sheet was restated to reflect the change to
equity accounting of TSEUK and Equión on adoption of IFRS 11. TSEUK
deconsolidation effective December 17, 2012. Equion deconsolidation
effective January 1, 2012. |
|
|
Talisman Energy Inc. |
|
Consolidated Statements of Income (Loss) |
|
(unaudited) |
|
|
|
|
|
|
Three months ended December 31 |
|
Year ended December 31 |
|
(millions of US$) |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
(restated)(1) |
|
|
|
(restated)(1) |
|
Revenue |
|
|
|
|
|
|
|
|
|
Sales |
1,243 |
|
1,432 |
|
4,652 |
|
6,767 |
|
|
Other
income |
26 |
|
25 |
|
109 |
|
84 |
|
|
Income (loss) from joint ventures and associates, after tax |
(340 |
) |
206 |
|
(275 |
) |
315 |
|
Total revenue and other income |
929 |
|
1,663 |
|
4,486 |
|
7,166 |
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Operating |
384 |
|
578 |
|
1,432 |
|
2,361 |
|
|
Transportation |
44 |
|
44 |
|
192 |
|
221 |
|
|
General and administrative |
114 |
|
128 |
|
434 |
|
510 |
|
|
Depreciation, depletion and amortization |
555 |
|
708 |
|
1,922 |
|
2,371 |
|
|
Impairment |
946 |
|
426 |
|
946 |
|
2,589 |
|
|
Dry
hole |
7 |
|
72 |
|
89 |
|
238 |
|
|
Exploration |
52 |
|
118 |
|
260 |
|
346 |
|
|
Finance costs |
87 |
|
61 |
|
331 |
|
272 |
|
|
Share-based payments expense (recovery) |
19 |
|
(52 |
) |
49 |
|
(63 |
) |
|
(Gain) loss on held-for-trading financial instruments |
161 |
|
(35 |
) |
140 |
|
93 |
|
|
Gain
on disposals |
(42 |
) |
(865 |
) |
(100 |
) |
(1,624 |
) |
|
Other, net |
42 |
|
33 |
|
113 |
|
124 |
|
Total expenses |
2,369 |
|
1,216 |
|
5,808 |
|
7,438 |
|
Income (loss) before taxes |
(1,440 |
) |
447 |
|
(1,322 |
) |
(272 |
) |
Income taxes |
|
|
|
|
|
|
|
|
|
Current income tax |
166 |
|
70 |
|
623 |
|
792 |
|
|
Deferred income tax (recovery) expense |
(601 |
) |
1 |
|
(770 |
) |
(1,196 |
) |
|
(435 |
) |
71 |
|
(147 |
) |
(404 |
) |
Net income (loss) |
(1,005 |
) |
376 |
|
(1,175 |
) |
132 |
|
|
|
|
|
Per common share (US$): |
|
|
|
|
|
|
|
|
|
Net
income (loss) |
(0.98 |
) |
0.37 |
|
(1.15 |
) |
0.12 |
|
|
Diluted net income (loss) |
(0.98 |
) |
0.31 |
|
(1.21 |
) |
0.01 |
|
Weighted average number of common shares outstanding
(millions) |
|
|
|
|
|
|
|
|
Basic |
1,031 |
|
1,025 |
|
1,030 |
|
1,025 |
|
|
Diluted |
1,032 |
|
1,033 |
|
1,032 |
|
1,033 |
|
(1) |
2012
Consolidated Statements of Income (Loss) were restated to reflect
the change to equity accounting of TSEUK and Equión on adoption of
IFRS 11. TSEUK deconsolidation effective December 17, 2012. Equion
deconsolidation effective January 1, 2012. |
|
|
Talisman Energy Inc. |
|
Consolidated Statements of Cash Flows |
|
(unaudited) |
|
|
|
|
|
|
Three months ended December 31 |
|
Year ended December 31 |
|
(millions of US$) |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
(restated)(1) |
|
|
|
(restated)(1) |
|
Operating activities |
|
|
|
|
|
|
|
|
Net income (loss) |
(1,005 |
) |
376 |
|
(1,175 |
) |
132 |
|
Add: Finance costs (cash and non-cash) |
87 |
|
61 |
|
331 |
|
272 |
|
Dividends from associates |
21 |
|
- |
|
58 |
|
- |
|
Items not involving cash |
1,419 |
|
72 |
|
2,549 |
|
2,152 |
|
|
522 |
|
509 |
|
1,763 |
|
2,556 |
|
Changes in non-cash working capital |
(80 |
) |
(101 |
) |
4 |
|
(160 |
) |
Cash provided by operating activities |
442 |
|
408 |
|
1,767 |
|
2,396 |
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
|
|
|
|
|
|
|
Exploration, development and other |
(537 |
) |
(836 |
) |
(2,363 |
) |
(3,509 |
) |
|
Property acquisitions |
(6 |
) |
(50 |
) |
(100 |
) |
(109 |
) |
Proceeds of resource property dispositions |
43 |
|
24 |
|
146 |
|
964 |
|
Yme removal obligation, net of settlement |
(9 |
) |
- |
|
252 |
|
- |
|
Restricted cash, net of settlement |
9 |
|
- |
|
(215 |
) |
- |
|
Investments |
(4 |
) |
(9 |
) |
(13 |
) |
(20 |
) |
Proceeds on disposition of associate |
590 |
|
- |
|
590 |
|
- |
|
Loan to joint venture, net of repayments |
(183 |
) |
- |
|
(398 |
) |
- |
|
Proceeds on reduction of UK investment, net of cash
disposed |
- |
|
1,349 |
|
- |
|
1,349 |
|
Changes in non-cash working capital |
(42 |
) |
98 |
|
(231 |
) |
113 |
|
Cash provided by (used in) investing activities |
(139 |
) |
576 |
|
(2,332 |
) |
(1,212 |
) |
|
|
Financing activities |
|
|
|
|
|
|
|
|
Long-term debt repaid |
(304 |
) |
(816 |
) |
(308 |
) |
(1,807 |
) |
Long-term debt issued |
28 |
|
240 |
|
1,094 |
|
1,336 |
|
Loans from joint ventures, net of repayments |
91 |
|
(1 |
) |
141 |
|
109 |
|
Common shares issued |
7 |
|
4 |
|
28 |
|
13 |
|
Common shares purchased |
(1 |
) |
(1 |
) |
(1 |
) |
(25 |
) |
Finance costs (cash) |
(77 |
) |
(45 |
) |
(295 |
) |
(190 |
) |
Common share dividends |
(69 |
) |
(70 |
) |
(277 |
) |
(277 |
) |
Preferred share dividends |
(2 |
) |
(2 |
) |
(8 |
) |
(9 |
) |
Deferred credits and other |
4 |
|
(18 |
) |
(8 |
) |
(3 |
) |
Changes in non-cash working capital |
(33 |
) |
(34 |
) |
(2 |
) |
(6 |
) |
Cash provided by (used in) financing activities |
(356 |
) |
(743 |
) |
364 |
|
(859 |
) |
Effect of translation on foreign currency cash and cash
equivalents |
(1 |
) |
(1 |
) |
(1 |
) |
9 |
|
Net increase (decrease) in cash and cash
equivalents |
(54 |
) |
240 |
|
(202 |
) |
334 |
|
Cash and cash equivalents net of bank indebtedness,
beginning of period |
405 |
|
313 |
|
553 |
|
219 |
|
Cash and cash equivalents net of bank indebtedness, end
of period |
351 |
|
553 |
|
351 |
|
553 |
|
|
|
Cash and cash equivalents |
364 |
|
553 |
|
364 |
|
553 |
|
Bank indebtedness |
(13 |
) |
- |
|
(13 |
) |
- |
|
Cash and cash equivalents net of bank indebtedness, end
of period |
351 |
|
553 |
|
351 |
|
553 |
|
(1) |
2012
Consolidated Statements of Cash Flows were restated to reflect the
change to equity accounting of TSEUK and Equión on adoption of IFRS
11. TSEUK deconsolidation effective December 17, 2012. Equion
deconsolidation effective January 1, 2012. |
|
|
Items
not involving cash are as follows: |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
|
|
December 31 |
|
December 31 |
|
(millions of US$) |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
Depreciation, depletion and amortization |
555 |
|
708 |
|
1,922 |
|
2,371 |
|
Impairment, net of reversals |
946 |
|
426 |
|
946 |
|
2,589 |
|
Dry
hole |
7 |
|
72 |
|
89 |
|
238 |
|
Share-based payments expense (recovery) |
19 |
|
(52 |
) |
45 |
|
(66 |
) |
Gain
on disposals |
(42 |
) |
(865 |
) |
(100 |
) |
(1,624 |
) |
Unrealized (gain) loss on held-for-trading financial
instruments |
154 |
|
(51 |
) |
93 |
|
48 |
|
Deferred income tax (recovery) |
(601 |
) |
1 |
|
(770 |
) |
(1,196 |
) |
Foreign exchange |
15 |
|
30 |
|
18 |
|
39 |
|
PP&E derecognition |
- |
|
- |
|
- |
|
20 |
|
(Income) loss from joint ventures and associates, after tax |
340 |
|
(206 |
) |
275 |
|
(315 |
) |
Other |
26 |
|
9 |
|
31 |
|
48 |
|
|
1,419 |
|
72 |
|
2,549 |
|
2,152 |
|
|
|
|
|
|
|
|
|
|
Talisman Energy Inc. |
|
Segmented Information |
|
(unaudited) |
|
|
|
|
|
|
North America (1) |
|
Southeast Asia (2) |
|
|
|
|
Three months ended December 31 |
|
Year ended December 31 |
|
Three months ended December 31 |
|
Year ended December 31 |
|
(millions of US$) |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
2012 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
430 |
|
399 |
|
1,643 |
|
1,435 |
|
609 |
|
494 |
|
2,202 |
2,190 |
|
Other
income |
2 |
|
21 |
|
45 |
|
72 |
|
- |
|
3 |
|
1 |
3 |
|
Income (loss) from joint ventures and associates, after tax |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
- |
|
Total revenue and other income |
432 |
|
420 |
|
1,688 |
|
1,507 |
|
609 |
|
497 |
|
2,203 |
2,193 |
|
Segmented expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
142 |
|
135 |
|
568 |
|
564 |
|
148 |
|
112 |
|
532 |
418 |
|
Transportation |
24 |
|
16 |
|
103 |
|
92 |
|
12 |
|
11 |
|
56 |
53 |
|
DD&A |
316 |
|
312 |
|
1,211 |
|
1,140 |
|
160 |
|
101 |
|
486 |
427 |
|
Impairment |
329 |
|
179 |
|
332 |
|
363 |
|
54 |
|
- |
|
55 |
- |
|
Dry
hole |
- |
|
- |
|
- |
|
22 |
|
(6 |
) |
11 |
|
60 |
77 |
|
Exploration |
10 |
|
5 |
|
39 |
|
29 |
|
9 |
|
22 |
|
59 |
92 |
|
Other |
23 |
|
38 |
|
69 |
|
81 |
|
- |
|
(9 |
) |
8 |
(19 |
) |
Total segmented expenses |
844 |
|
685 |
|
2,322 |
|
2,291 |
|
377 |
|
248 |
|
1,256 |
1,048 |
|
Segmented income (loss) before taxes |
(412 |
) |
(265 |
) |
(634 |
) |
(784 |
) |
232 |
|
249 |
|
947 |
1,145 |
|
Non-segmented expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payments expense (recovery) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on held-for-trading |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financial instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-segmented expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration |
19 |
|
53 |
|
76 |
|
157 |
|
37 |
|
(5 |
) |
129 |
59 |
|
Development |
249 |
|
257 |
|
1,207 |
|
1,404 |
|
93 |
|
119 |
|
353 |
362 |
|
Midstream |
- |
|
1 |
|
- |
|
1 |
|
- |
|
- |
|
- |
- |
|
Exploration and development |
268 |
|
311 |
|
1,283 |
|
1,562 |
|
130 |
|
114 |
|
482 |
421 |
|
Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds on dispositions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-segmented |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
|
|
6,636 |
|
7,145 |
|
|
|
|
|
2,318 |
2,582 |
|
Exploration and evaluation assets |
|
|
|
|
1,579 |
|
2,078 |
|
|
|
|
|
717 |
527 |
|
Goodwill |
|
|
|
|
118 |
|
133 |
|
|
|
|
|
170 |
170 |
|
Investments in joint ventures and associates |
|
|
|
|
- |
|
- |
|
|
|
|
|
- |
- |
|
Other |
|
|
|
|
677 |
|
685 |
|
|
|
|
|
740 |
637 |
|
Asset held for sale |
|
|
|
|
776 |
|
- |
|
|
|
|
|
- |
- |
|
Segmented assets |
|
|
|
|
9,786 |
|
10,041 |
|
|
|
|
|
3,945 |
3,916 |
|
Non-segmented assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decommissioning Liabilities (5) |
|
|
|
|
450 |
|
476 |
|
|
|
|
|
280 |
347 |
|
|
|
Three months ended |
Year ended |
|
December 31 |
December 31 |
1. North America |
2013 |
2012 |
2013 |
2012 |
Canada |
202 |
224 |
810 |
853 |
US |
230 |
196 |
878 |
654 |
Total revenue and other income |
432 |
420 |
1,688 |
1,507 |
Canada |
|
|
2,544 |
3,588 |
US |
|
|
4,092 |
3,557 |
Property, plant and equipment |
|
|
6,636 |
7,145 |
Canada |
|
|
905 |
1,070 |
US |
|
|
674 |
1,008 |
Exploration and evaluation assets |
|
|
1,579 |
2,078 |
|
|
Three months ended |
Year ended |
|
December 31 |
December 31 |
2. Southeast Asia |
2013 |
2012 |
2013 |
2012 |
Indonesia |
275 |
266 |
1,175 |
1,157 |
Malaysia |
153 |
127 |
534 |
549 |
Vietnam |
141 |
13 |
322 |
72 |
Australia |
40 |
91 |
172 |
415 |
Total revenue and other income |
609 |
497 |
2,203 |
2,193 |
Indonesia |
|
|
1,023 |
1,040 |
Malaysia |
|
|
707 |
852 |
Vietnam |
|
|
460 |
494 |
Papua
New Guinea |
|
|
40 |
44 |
Australia |
|
|
88 |
152 |
Property, plant and equipment |
|
|
2,318 |
2,582 |
Indonesia |
|
|
19 |
11 |
Malaysia |
|
|
83 |
72 |
Vietnam |
|
|
145 |
14 |
Papua New Guinea |
|
|
470 |
430 |
Exploration and evaluation assets |
|
|
717 |
527 |
Talisman Energy Inc. |
Segmented Information |
(unaudited) |
|
|
North Sea (3) |
|
Other (4) |
|
Total |
|
|
Three months ended December 31 |
|
Year ended December 31 |
|
Three months ended December 31 |
|
Year ended December 31 |
|
Three months ended December 31 |
|
Year ended December 31 |
|
(millions of US$) |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
2012 |
|
2013 |
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
151 |
|
493 |
|
577 |
|
2,922 |
|
53 |
46 |
|
230 |
220 |
|
1,243 |
|
1,432 |
|
4,652 |
|
6,767 |
|
Other
income |
5 |
|
4 |
|
23 |
|
9 |
|
19 |
(3 |
) |
40 |
- |
|
26 |
|
25 |
|
109 |
|
84 |
|
Income (loss) from joint ventures and associates, after tax |
(377 |
) |
(46 |
) |
(450 |
) |
(46 |
) |
37 |
252 |
|
175 |
361 |
|
(340 |
) |
206 |
|
(275 |
) |
315 |
|
Total revenue and other income |
(221 |
) |
451 |
|
150 |
|
2,885 |
|
109 |
295 |
|
445 |
581 |
|
929 |
|
1,663 |
|
4,486 |
|
7,166 |
|
Segmented expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
88 |
|
324 |
|
302 |
|
1,350 |
|
6 |
7 |
|
30 |
29 |
|
384 |
|
578 |
|
1,432 |
|
2,361 |
|
Transportation |
5 |
|
14 |
|
25 |
|
69 |
|
3 |
3 |
|
8 |
7 |
|
44 |
|
44 |
|
192 |
|
221 |
|
DD&A |
72 |
|
291 |
|
195 |
|
774 |
|
7 |
4 |
|
30 |
30 |
|
555 |
|
708 |
|
1,922 |
|
2,371 |
|
Impairment |
557 |
|
217 |
|
543 |
|
1,942 |
|
6 |
30 |
|
16 |
284 |
|
946 |
|
426 |
|
946 |
|
2,589 |
|
Dry
hole |
- |
|
24 |
|
18 |
|
45 |
|
13 |
37 |
|
11 |
94 |
|
7 |
|
72 |
|
89 |
|
238 |
|
Exploration |
6 |
|
14 |
|
39 |
|
46 |
|
27 |
77 |
|
123 |
179 |
|
52 |
|
118 |
|
260 |
|
346 |
|
Other |
7 |
|
1 |
|
16 |
|
41 |
|
- |
(9 |
) |
2 |
(12 |
) |
30 |
|
21 |
|
95 |
|
91 |
|
Total segmented expenses |
735 |
|
885 |
|
1,138 |
|
4,267 |
|
62 |
149 |
|
220 |
611 |
|
2,018 |
|
1,967 |
|
4,936 |
|
8,217 |
|
Segmented income (loss) before taxes |
(956 |
) |
(434 |
) |
(988 |
) |
(1,382 |
) |
47 |
146 |
|
225 |
(30 |
) |
(1,089 |
) |
(304 |
) |
(450 |
) |
(1,051 |
) |
Non-segmented expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114 |
|
128 |
|
434 |
|
510 |
|
Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87 |
|
61 |
|
331 |
|
272 |
|
Share-based payments expense (recovery) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19 |
|
(52 |
) |
49 |
|
(63 |
) |
Currency translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 |
|
12 |
|
18 |
|
33 |
|
(Gain) loss on held-for-trading financial instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
161 |
|
(35 |
) |
140 |
|
93 |
|
Gain on disposals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(42 |
) |
(865 |
) |
(100 |
) |
(1,624 |
) |
Total non-segmented expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
351 |
|
(751 |
) |
872 |
|
(779 |
) |
Income (loss) before taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,440 |
) |
447 |
|
(1,322 |
) |
(272 |
) |
Capital expenditure (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration |
11 |
|
21 |
|
49 |
|
85 |
|
47 |
48 |
|
144 |
223 |
|
114 |
|
117 |
|
398 |
|
524 |
|
Development |
63 |
|
278 |
|
332 |
|
1,064 |
|
2 |
(8 |
) |
17 |
7 |
|
407 |
|
646 |
|
1,909 |
|
2,837 |
|
Midstream |
- |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
|
- |
|
1 |
|
- |
|
1 |
|
Exploration and development |
74 |
|
299 |
|
381 |
|
1,149 |
|
49 |
40 |
|
161 |
230 |
|
521 |
|
764 |
|
2,307 |
|
3,362 |
|
Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
|
101 |
|
111 |
|
160 |
|
Proceeds on dispositions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43 |
) |
(24 |
) |
(146 |
) |
(964 |
) |
Other non-segmented |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 |
|
61 |
|
41 |
|
138 |
|
Net capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
496 |
|
902 |
|
2,313 |
|
2,696 |
|
Property, plant and equipment |
|
|
|
|
537 |
|
460 |
|
|
|
|
261 |
275 |
|
|
|
|
|
9,752 |
|
10,462 |
|
Exploration and evaluation assets |
|
|
|
|
289 |
|
254 |
|
|
|
|
580 |
460 |
|
|
|
|
|
3,165 |
|
3,319 |
|
Goodwill |
|
|
|
|
287 |
|
472 |
|
|
|
|
- |
- |
|
|
|
|
|
575 |
|
775 |
|
Investments in joint ventures and associates |
|
|
|
|
206 |
|
259 |
|
|
|
|
920 |
803 |
|
|
|
|
|
1,126 |
|
1,062 |
|
Other |
|
|
|
|
1,911 |
|
1,418 |
|
|
|
|
402 |
905 |
|
|
|
|
|
3,730 |
|
3,645 |
|
Asset held for sale |
|
|
|
|
- |
|
- |
|
|
|
|
- |
- |
|
|
|
|
|
776 |
|
- |
|
Segmented assets |
|
|
|
|
3,230 |
|
2,863 |
|
|
|
|
2,163 |
2,443 |
|
|
|
|
|
19,124 |
|
19,263 |
|
Non-segmented assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37 |
|
74 |
|
Total assets (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,161 |
|
19,337 |
|
Decommissioning liabilities (5) |
|
|
|
|
1,009 |
|
688 |
|
|
|
|
30 |
46 |
|
|
|
|
|
1,769 |
|
1,557 |
|
|
|
|
Three months ended |
|
Year ended |
|
|
December 31 |
|
December 31 |
|
3. North Sea |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
UK
(6) |
5 |
|
323 |
|
23 |
|
2,017 |
|
Norway |
151 |
|
174 |
|
577 |
|
914 |
|
Loss from TSEUK |
(377 |
) |
(46 |
) |
(450 |
) |
(46 |
) |
Total revenue and other income |
(221 |
) |
451 |
|
150 |
|
2,885 |
|
UK |
|
|
|
|
- |
|
- |
|
Norway |
|
|
|
|
537 |
|
460 |
|
Property, plant and equipment |
|
|
|
|
537 |
|
460 |
|
UK |
|
|
|
|
- |
|
- |
|
Norway |
|
|
|
|
289 |
|
254 |
|
Exploration and evaluation assets |
|
|
|
|
289 |
|
254 |
|
|
Three months ended |
|
Year ended |
|
|
December 31 |
|
December 31 |
|
4. Other |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
Algeria |
43 |
|
36 |
|
207 |
|
213 |
|
Colombia (7) |
83 |
|
259 |
|
238 |
|
368 |
|
Total revenue and other income |
126 |
|
295 |
|
445 |
|
581 |
|
Algeria |
|
|
|
|
260 |
|
273 |
|
Colombia |
|
|
|
|
1 |
|
2 |
|
Property, plant and equipment |
|
|
|
|
261 |
|
275 |
|
Colombia |
|
|
|
|
203 |
|
124 |
|
Kurdistan |
|
|
|
|
377 |
|
323 |
|
Peru |
|
|
|
|
- |
|
- |
|
Other |
|
|
|
|
- |
|
13 |
|
Exploration and evaluation assets |
|
|
|
|
580 |
|
460 |
|
5. |
Equión results have been equity accounted effective January 1, 2012
and TSEUK results effective December 17, 2012. |
6. |
2012
results include revenue from the UK from January 1 to December 17,
2012. Subsequent to December 17, 2012, TSEUK results are included
in income (loss) from joint ventures and associates. |
7. |
Balances include after-tax equity income from Equión. |
Talisman Energy Inc. - Media and General InquiriesBrent Anderson
Manager, External
Relations403-237-1912tlm@talisman-energy.comTalisman Energy Inc. -
Shareholder and Investor InquiriesLyle McLeodVice-President,
Investor
Relations403-767-5732tlm@talisman-energy.comwww.talisman-energy.com