Canadian energy explorer,
Talisman Energy Inc.
) 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
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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
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
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
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.
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%.
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.
Harvest Natural Resources Inc.
Newpark Resources Inc.