Talisman Energy (TSX:TLM, NYSE: TLM), a Calgary-based oil and gas producer, reported today that its bottom line jumped four-fold as oil prices increased.
Talisman's third quarter profits jumped to CDN$121 million from CDN$30 million last year as WTI oil prices rallied 11.5% year-over-year. Earnings per diluted share were 12 cents, up from 3 cents last year, topping analyst estimates of 11 cents.
Revenue for the third quarter increased 20% year-over-year to CDN$1.7 billion. Analysts estimated that the company would earn revenue of CDN$1.57 billion.
Production from continuing operations for the third quarter averaged 0.39 million barrels of oil equivalent per day (boe/d), a 12% increase year-over-year.
The company's natural gas Q3 production was up 6% year-over-year helped by a production increase at its Pennsylvania Marcellus shale project. The project averaged 222 million cubic feet per day (mmcf/d) during the quarter, up from 38 mmcf/d a year ago.
Talisman was also busy buying up assets during the period. In August, Talisman announced it will jointly acquire BP's (NYSE:BP) Colombian subsidiary with Ecopetrol S.A. (NYSE: EC) for US$1.75 billion. Talisman’s 49% ownership in the Colombian company will add over 12,000 boe/d to its production capacity.
Just recently, the company agreed to buy a piece of land at the Eagle Ford shale formation in South Texas, doubling its land holdings in the region. Talisman also agreed to buy interests in a number of oil discoveries in Norway.
For 2010, Talisman expects production to average around 0.42 million boe/d, above the company’s previous guidance of just over 0.4 million boe/d.
On the Toronto Stock Exchange, Talisman's shares have advanced by 1.4% to trade at $18.69 as of 9:41 am ET.
Disclosure: no position