Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Canadian energy explorer, Talisman Energy Inc. (TLM - Analyst Report), reported weak second-quarter 2013 results due to decreased production along with lower oil and liquids price realizations. The company announced a loss per share from continuing operations (excluding non-operating items) of 3 cents against the Zacks Consensus Estimate of 4 cents. In the year-ago quarter, Talisman reported earnings of 7 cents per share.

Quarterly total revenue of $1,185.0 million deceased 34.2% from $1,800 .0 million in the second quarter of 2012. Revenues also missed the Zacks Consensus Estimate of $1,422.0 million.

Volume Analysis

The quarter’s total production of 361 thousand barrels of oil equivalent per day (MBOE/d) was down 17.0% from the year-ago level, mainly due to North Sea area’s turnaround and downtime activities along with Algeria’s constrained output.

Oil & liquids production was down 34.6% at 98,959 barrels per day (Bbl/d). Volumes were affected by significantly lower production in the North Sea.

Talisman’s natural gas volumes were down 14.4% at 1,369 million cubic feet per day (MMcf/d), mainly due to the decrease in production in North America and North Sea.

Realized Prices

During the quarter, Talisman’s realized commodity prices dropped slightly by 0.9% from the year-ago quarter to $52.68 per barrel of oil equivalent (BOE) mainly on account of lower oil and liquids realizations from North America and Southeast Asia. This was partially offset by higher gas prices in North America and North Sea.

Overall, natural gas prices increased 29.7% year over year to $6.12 per Mcf, while oil and liquids realizations averaged $89.51 per barrel, down 7.6% from the year-ago level.

Cash Flow and Capital Expenditure

Cash flow from continuing operations totaled $526.0 million, down 34.5% year over year. Talisman spent $843.0 million on exploration and development activities.

Balance Sheet

As of Jun 30, 2013, Talisman had cash and cash equivalents of approximately $270.0 million and long-term debt of $4,923.0 million (including current portion), with a debt-to-capitalization ratio of 33.6%.

Guidance

Talisman expects its 2013 full-year production to be 375 MBOE/d, which is at the lower end of the previously projected range of 375-395 MBOE/d. Oil & liquids production is anticipated to be roughly 132,000 Bbl/d while natural gas volumes will be 1,457 MMcf/d for 2013.

Zacks Rating

Talisman currently carries a Zacks Rank #3 (Hold), which implies that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at exploration and production firms like Enerplus Corporation (ERF - Snapshot Report), ARC Resources Ltd. (AETUF) and Canadian Oil Sands Limited (COSWF) which offer value. Enerplus carries a Zacks Rank #1 (Strong Buy) while ARC Resources and Canadian Oil Sands have a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%