Canadian energy explorer,
Talisman Energy Inc.
), reported weak third-quarter 2013 results due to decreased
production along with lower liquids price realizations. The
company announced a loss per share from continuing operations
(excluding non-operating items) of 4 cents against the Zacks
Consensus Estimate of 3 cents earnings per share. However, the
figure remained flat on a year-over-year basis.
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Quarterly total revenue of $1,232.0 million deceased 25.2% from
$1,647.0 million in the third quarter of 2012. Revenues also
missed the Zacks Consensus Estimate of $1,508.0 million.
The quarter's total production of 371 thousand barrels of oil
equivalent per day (MBOE/d) was down 10.6% from the year-ago
Total liquids production was down 29.6% year over year to 104,811
barrels per day (Bbl/d). Volumes were affected by significantly
lower production in the North Sea.
Talisman's natural gas volumes were down 7.6% year over year to
1,377 million cubic feet per day (MMcf/d), mainly due to
decreased production in North America, Southeast Asia and North
During the quarter, Talisman's realized commodity prices dropped
6.4% from the year-ago quarter to $53.11 per barrel of oil
equivalent (BOE). The decline mainly resulted from reduced
liquids realizations in Southeast Asia.
Overall, natural gas prices increased 12.2% year over year to
$5.51 per Mcf, however, liquids realizations averaged $97.04 per
barrel, down 5.1% from the year-ago level.
Cash Flow and Capital Expenditure
Cash flow from continuing operations totaled $573.0 million, down
17.3% year over year. Talisman spent $849.0 million on
exploration and development activities.
As of Sep 30, 2013, Talisman had cash and cash equivalents of
approximately $407.0 million and long-term debt of $5,504.0
million (including current portion), with a
debt-to-capitalization ratio of 36.4%.
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 oil and gas exploration and production
TransGlobe Energy Corporation
Baytex Energy Corp.
Bellatrix Exploration Ltd.
) that offer better prospects. TransGlobe Energy sports a Zacks
Rank #1 (Strong Buy) while Baytex Energy and Bellatrix
Exploration retain a Zacks Rank #2 (Buy).