Seeking Alpha

Talisman slips after Q2 earnings sink into the red

  • Talisman Energy (TLM -0.4%) opens slightly lower after swinging to a surprise Q2 loss as it suffered impairments on its North Sea operations and was hurt by lower North American gas prices.
  • Total Q2 revenue rose 4.4% to $1.24B, but total expenses jumped 47.4% to $1.4B.
  • Total netbacks fell to $27.18/boe from $28.44/boe in Q1, weighed by higher operating costs in the U.K. and Norway.
  • Production from ongoing operations in its core regions rose 12% to 300K boe, with core region liquids production up 20% to 115K boe.
  • Realized natural gas prices in North America rose 11% Y/Y but fell 11% Q/Q.
  • Says proceeds from asset sales will continue to cut corporate debt to help maintain a strong balance sheet, as it works to reduce its exposure to the North Sea and other non-core areas.

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Comments (1)
  • Energex
    , contributor
    Comments (654) | Send Message
     
    Good quarter. Revenue is up, liquids production is way up, strong cash flow and fair netbacks despite lower gas prices. The overall loss is due to write offs and it had little impact on cash.

     

    The bigger issue is the status of current negotiations with Repsol: Will there be a takeover, assets sale, or no deal...?
    29 Jul 2014, 11:22 AM Reply Like
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