Talisman Energy Inc. (TLM)

[OilStockReport]

A little update....

We haven’t done any reporting on Talisman Energy in the past, but we recently came across and intriguing analysis of the company. Needless to say, it caught our interest, and we wanted to share the information with our readers. Shareholders Unite give the bare essentials that you need to know about this company, check out the stats.



Some metrics

Market cap: $15.36B on 1.02B shares outstanding (all of them in the float), 1.03M short
$3.93B in debt, 873M in cash
Enterprise value (EV): $18.4B
Production 420,000 BOE/d
Proven and probable (P2) reserves: 2.2BBOE
EV per P2 Barrel: $8.50
NPV (10) of P2 reserves about $18B
Cash flow $4 per share so P/CF of 3.75x
Dividend yield about 1.8%

Production Prospects

Opinions differ considerably about the immediate prospects. Zacks is rather negative and has cut the company’s stock to underperform on October 26 (with a $12 price target) following the cut in its annual production target for the second time in about two months. TLM expects repair work in the North Sea and weather-related issues in Canada to hurt operations and lower average output for 2011. They also cite low gas prices (in America) as a reason.


What do you think? They have a lot of production in the U.S. which is what we like. Additionally, they seem to be seeking additional assets and exploration locations. Sounds like an interesting company, doing interesting things.