Canaccord: 2007 Was Talisman's Year of Transition

Talisman Energy's (TLM) disappointing 2007 results can be chalked up to a "year of transition" at the oil and gas producer, according to Canaccord Adams analyst Terry Peters.

"2007 was a transition year for Talisman and the company is taking a measured approach to growth in 2008," the analyst told clients in a report. He noted that Talisman disposed of assets producing 20,000 barrels of oil equivalent per day, in the North Sea and Canada, during the year and also appointed a new CEO in John Manzoni to replace Jim Buckee who is retiring.

Going forward, he said the company is expected to grow approximately 3 to 8% in 2008 and 5 to 10% in 2009 and 2010. Talisman is also in the process of conducting a strategic review of its operations to help unlock growth in the long term.

Mr. Peters wrote:

The market is currently taking a cautious, wait-and-see approach to Talisman. We believe that Talisman has a good exploration portfolio with a decent track record of reserves, production and cash flow growth.

He maintained his "buy" rating but reduced his target price from C$20 to C$19.50.

Comments

[jrkirk:]

According to GuruFocus, T. Boone Pickens has been buying this stock. He is one of the smartest energy investors I know of; if he is owning this stock, I sure don't mind owning it also.
JK

2008 Mar 04 07:48 AM

[Mr Jordan:]

According to the Kuwait News Agency, of March 5, 2008, the Talisman Marubeni discovery at Cayley offshore Aberdeen Scotland and adjacent holdings estimate reserves of 35 million to 100 million barrels of oil-equivalent NG/condensate. That should boost the target price of TLM back up, and perhaps reveal why T Boone Pickens has been buying TLM.

2008 Mar 08 04:32 AM