This Day On The Street
Continue to site right-arrow
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 Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: TLM

In Asia, our realizations continue to be very strong, and we saw gas prices in the second quarter well above $9, reflecting the strong supply and demand fundamentals in that region.

Turning to our second quarter. We had a strong quarter in terms of delivery. The main headline for the quarter is the agreement we've reached with Sinopec to buy 49% of our U.K. business for $1.5 billion, delivering on the promise we made earlier this year. The deal is good for Talisman, good for Sinopec, and good for our U.K. business.

On the perspective of the U.K. business, it'll result in incrementally more capital investment into the assets than we would have invested ourselves. This will be very positive as we continue to improve our operational reliability and concentrate on some big investment projects in the next phase of our U.K. development.

From Talisman's perspective, we will still invest net less than we would have had we kept 100% of the business ourselves. We've accelerated cash delivery from the business, and of course, we've significantly reduced our exposure to abandonment. So overall, I'm delighted that we finalized that part of our repositioning with the U.K. now a smaller part of Talisman's portfolio. I'm looking forward to working with our new partners in the U.K. to develop the business there.

Production was 435,000 barrels a day, up about 4% on the same quarter a year ago and also against the first half last year. North America delivered a strong quarter as the Eagle Ford continued to build, and we saw lower-than-expected base decline in the Marcellus despite the significant reduction in activity there.

Our Asian business delivered 130,000 barrels a day, growing about 12% year-on-year overall with liquids growth about double that rate driven by the new developments at Kitan and Jambi Merang. In terms of activity, we're continuing to drive the Eagle Ford with good results. Our drilling cycle times continue to improve, which prompted Paul Smith to increase the production expectation for the year to between 12,000 and 17,000 barrels a day when he spoke in May.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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