This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Talisman Energy's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: TLM

Turning to the first quarter. We had a strong quarter in terms of operating results. Production was very strong with 462,000 barrels a day, 4% above the equivalent quarter last year, and underpinned by a very strong quarter in both North America, which was driven by the shale being about 50% higher than a year ago and by Southeast Asia, which had a record gas production quarter delivering 136,000 barrels a day.

Cash flow was up 5% over the first quarter last year. Prices and volumes were up, but were offset to some extent by higher taxes and higher costs. Earnings from operations were $167 million for the quarter, reflecting higher prices, but also higher costs than a year ago and a higher DD&A rate, which Scott will explain in a moment. Costs were down from the fourth quarter last year when you may recall we had significant shutdown activity, particularly in the North Sea, but they're up on the equivalent quarter a year ago. This reflects in part increased activity since that time for instance, we've now got operations in Kitan in Australia, Jambi in Indonesia and Equion in Colombia.

In North America, we've also flowed through the new Pennsylvania impact fee, which this quarter includes a historical component. If we exclude the historical part of the impact fee, we continue to see a trend of reducing unit cost in the Shale business.

In the exploration portfolio, we found a significant oil leg in the Kurdamir-2 well in Kurdistan, which is sufficiently encouraging for us to plan an appraisal program on the structure. It's early days, but we are very encouraged by what we see so far. And in Papua New Guinea, our exploration wells continue to turn up what we expected, which is that the structures we are drilling tend to be full to spill. The latest well, Ketu-2, was another very positive result and is building on our gas resource exactly according to plan.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs