Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Talisman Energy Aims To Shrink And Grow Rich

"Bigger is better" is the operating mindset for many corporate executives, but that's not always the winning strategy in the energy sector. With share price performance often closely tied to debt-adjusted production growth, it can make quite a bit of sense to jettison assets that don't offer much production growth upside and/or those that require substantial investments to maintain or develop.

That brings me to the Talisman Energy (NYSE:TLM) situation. While the company has legitimately interesting assets in North and South America as well as Southeast Asia, the company's North Sea assets are little more than an albatross around its neck. Talisman shares do appear to be trading below fair value, and the company appears quite committed to...

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