Stephen Simpson, CFA • 10 Comments
Caiman Valores • 64 Comments
Feb. 18, 2015, 4:37 PM
- Talisman Energy (NYSE:TLM) says its shareholders voted overwhelmingly to approve the takeover of the company by Repsol (OTCPK:REPYF, OTCQX:REPYY).
- TLM expects the deal, which still requires court and regulatory approvals, to close during Q2.
- Repsol expects the acquisition to boost its oil production by 76% to 680K bbl/day while its reserves would increase 55%.
Dec. 16, 2014, 10:24 AM
- Talisman Energy (TLM +47.2%) explodes higher at the open after Repsol's (OTCQX:REPYY -2.3%) $13B deal to buy the company, but investors in the Spanish company aren't so enamored, sending shares lower.
- The purchase price of $8/share reflects a 75% premium to the seven-day volume weighted average share price - a hefty price that analysts say could force Repsol to consider a sale of its 30% stake in Gas Natural; Repsol chairman Antonio Brufau says his company is not considering such a sale.
- Barclays believes Repsol is getting a business that is free cash flow negative with a problematic North Sea business of questionable value, and that it should have waited longer for what could be a prolonged oil price downturn to make an acquisition.
- But considering that TLM's share price topped $11 last June before plunging to ~$4 last week, 24/7's Paul Ausick says Repsol got a bargain; TLM’s main assets are high quality - in the Marcellus shale play in Pennsylvania and the Eagle Ford shale play in south Texas, as well as off the coasts of Indonesia and Malaysia - and the two companies' combined production capacity will total ~680K boe/day with refining capacity of ~1M bbl/day, vaulting it into the ranks of the 20 largest oil companies in the world.
Dec. 16, 2014, 2:44 AM
- Talisman Energy (NYSE:TLM) has confirmed that Repsol (OTCQX:REPYY, OTCPK:REPYF) plans to purchase it for $8.3B, or $8 per share in cash.
- Repsol said it would also take on $4.7B of Talisman debt as part of the deal, putting TLM's enterprise value at $13B.
- Talisman Energy's board has approved the offer and recommends that shareholders accept it.
- TLM +20% After hours
Dec. 15, 2014, 9:51 AM
- Talisman Energy (TLM +21.2%) explodes higher at the open as Repsol (OTCQX:REPYY, OTCPK:REPYF) closes in on a deal and Canada Pension Plan Investment Board reportedly weighs a bid for the Canadian oil and gas explorer.
- Bloomberg reports that Canada Pension is considering making a bid for the whole company after initially considered buying parts of it, perhaps emboldened by a 59% YTD plunge in TLM.
- Expansion is reporting that Repsol’s board is meeting today to approve a TLM bid.
Dec. 15, 2014, 9:03 AM
- Talisman Energy (NYSE:TLM) +17.2% premarket after confirming it is engaged in discussions with Repsol (OTCQX:REPYY, OTCPK:REPYF) about a potential transaction, and has been approached by other parties.
- TLM closed 16% higher on Friday as details of Reposl's interest leaked out; senior execs reportedly traveled to Calgary to discuss a deal that could be completed before Christmas.
Dec. 12, 2014, 11:33 AM
- The perception takes hold that a takeover offer for Talisman Energy (TLM +34.5%) is imminent, as Financial Times reports that Repsol (OTCQX:REPYY, OTCPK:REPYF) executives have traveled to Calgary and hope to seal a deal by Christmas.
- The price being negotiated is in a range of $6-$8/share, which would represent a premium of up to 117% to TLM’s C$4.26 closing price yesterday; including debt, the deal would give TLM an enterprise value of $10B-$12B.
Dec. 12, 2014, 8:00 AM
- Talisman Energy (NYSE:TLM) +10.8% premarket after a report suggests Repsol (OTCPK:REPYF, OTCQX:REPYY) is finalizing a €4B for the company.
- Citing financial sources, the newspaper Expansion says a bid could come in at ~C$6/share.
- Repsol had recently revived takeover talks with TLM after dropping a plan earlier this year to buy the company, according to reports.
Dec. 11, 2014, 11:41 AM
- Talisman Energy’s (TLM +5.4%) stock has plunged 65% this year and is worth just a quarter of its value from 2011, and a Bloomberg report says a company sale at depressed prices may be more worthwhile than waiting out the rout in oil.
- Repsol looked at TLM earlier this year and is sniffing around again after plunging crude prices drove shares below C$5 for the first time in 14 years, and TLM says it has also talked with other parties; Bloomberg speculates suitors could offer C$8/share.
- “We’re getting to a level where a transaction makes more sense from a valuation perspective, from a buyer’s standpoint,” Macquarie's Chris Feltin says.
- Not all shareholders are likely to support a sale with oil at a five-year low: In particular, Carl Icahn - who disclosed a stake in TLM when shares traded at ~C$13 - may argue for holding out for a better price.
Dec. 8, 2014, 3:58 PM
- Repsol (OTCPK:REPYF, OTCQX:REPYY) has revived talks with Talisman Energy (TLM -4.8%) in a bid to bolster its presence in North America, according to a Bloomberg report.
- Repsol and TLM are said to be discussing options including the sale of a selection of assets or the whole company.
- Repsol, which is seeking to deploy ~$10B in cash on acquisitions outside its home market, reportedly dropped a plan to buy all of TLM in August.
Aug. 28, 2014, 3:59 PM
- Repsol (OTCPK:REPYF, OTCQX:REPYY) has dropped a plan to buy all of Talisman Energy (TLM -1.9%) but is interested in purchasing some of TLM’s shale assets, Bloomberg reports.
- Repsol is said to have abandoned its original plan for a full takeover after failing to find buyers for assets it wasn’t interested in owning after a takeover, including TLM's North Sea and Southeast Asia assets, but the companies are talking about TLM assets in Texas’ Eagle Ford and Alberta’s Duvernay regions.
- Earlier: Repsol, Talisman talks over a potential deal have stalled, WSJ reports.
Jul. 23, 2014, 11:16 AM
- Trading resumes in Talisman Energy (TLM +11.8%) after the company acknowledges it has been approached by Repsol (OTCQX:REPYY, OTCPK:REPYF) regarding various transactions, but says there is no assurance that any deal will be reached and will make no further statement until "such time as it is appropriate."
- Media reports yesterday said Repsol is considering a bid for TLM, whose U.S. assets, especially an opportunity to gain a foothold in the oil-rich Eagle Ford basin in Texas, likely are the most enticing, according to a Cannacord note.
- "Talisman would be a big step,” a Banco Santander analyst says. “There might be assets in the Talisman portfolio that could be of interest, but a full company bid would be a surprising move.”
- Trading in TLM had been halted since ~10:00 ET.
Jul. 22, 2014, 6:35 PM
- Talisman Energy (NYSE:TLM) +13% AH following a Bloomberg report that Repsol (OTCQX:REPYY, OTCPK:REPYF) is exploring a bid for the company as it looks to deploy cash it received for compensation in the loss of its stake in YPF as a way to grow outside of its home Spanish market.
- Repsol is said to have identified TLM as a top target and is working with JPMorgan Chase as it evaluates the deal.
- Repsol has said it may spend as much as $10B on deals, and any acquisition probably would be in the U.S., Canada or other developed markets.
May 5, 2014, 5:42 PM
- Talisman Energy (TLM) and Statoil (STO) are considering selling their joint venture in the Eagle Ford basin, which could fetch more than $4B, Bloomberg reports.
- TLM is said to have solicited offers last year for its 50% interest in the JV and couldn’t find a buyer in part because STO wasn’t ready to exit.
- The report speculates that a sale could draw interest from large exploration companies such as Encana (ECA), Murphy Oil (MUR) and Devon Energy (DVN) that want to acquire more oil-producing properties.
Nov. 8, 2013, 7:44 AM
- Talisman Energy (TLM) agrees to sell a stake in some of its natural gas assets in British Columbia's Montney field to Malaysia's Progress Energy for C$1.5B ($1.44B).
- TLM will part with 75% (~127K net acres) of its Montney position in the Farrell Creek and Cypress areas of B.C., which produce ~11K boe/day; TLM will retain its Groundbirch and Saturn holdings, spanning 48K acres in Montney.
- The sale is a part of TLM's plan to raise $2B-$3B from asset sales this year and will help the company focus on its Edson-Duvernay assets.
Jun. 18, 2013, 2:55 AM
Talisman Energy (TLM) has reportedly approached potential buyers, including private-equity firms, for its shale assets in the Eagle Ford basin in south Texas with a view to raising $2B. The speculation could come as a bit of a surprise, because while Talisman has said it is looking to offload non-core assets, its Eagle Ford interest is seen as core.| Jun. 18, 2013, 2:55 AM
Jan. 11, 2013, 11:56 AM
A sale is becoming Talisman Energy’s (TLM +0.8%) best bet, according to Bloomberg, after a two-year 48% plunge in shares leaves TLM's value at a lower multiple of EBITDA than 92% of North American explorers and producers of its size. Assets spanning from western Canada’s gas-rich Montney Shale to Southeast Asia are still worth C$26/share, Canaccord calculates.| Jan. 11, 2013, 11:56 AM