Talisman Energy Inc. is a Canadian multinational oil and gas exploration and production company headquartered in Calgary, Alberta. It is one of Canada's largest independent oil and gas companies, and was founded in 1992 by the renaming of BP Canada Ltd. Prior to the renaming, British Petroleum sold off its 57% stake in the company to the public.It operates globally which include Canada and the United States of America in North America; Colombia, South America; Algeria in North Africa; United Kingdom and Norway in Europe; Indonesia, Malaysia, Vietnam, Papua New Guinea, East Timor and Australia in the Far East; and Kurdistan in the Middle East. Talisman Energy has also built the offshore Beatrice Wind Farm Demonstrator in the North Sea off the coast of Scotland.The company initially grew quickly through a number of mergers and acquisitions, which reflects in the complex history and large diversity of holdings. Talisman was the first Canadian company to join the Voluntary Principles on Security and Human Rights Plenary Group and is a participant in the United Nations Global Compact. Wikipedia.
News Article | March 17, 2015
Talisman Energy Inc., the Canadian energy company being acquired by Spain’s Repsol SA, is cutting as much as 15 percent of its head office workforce as it reduces activity to contend with a collapse of crude prices. Talisman is terminating 150 to 200 employees and contractors of about 1,300 total workers in Calgary, where the oil and natural gas producer is based, Brent Anderson, a company spokesman, said in an interview Tuesday. The producer is scaling back its budget by 30 percent this year, he said. Energy companies confronting oil at a six-year low are reducing staff to cut costs as they lower spending plans. Talisman follows Cnooc Ltd.’s Nexen Energy subsidiary and Athabasca Oil Corp. in announcing job cuts in Canada’s oil patch on Tuesday. “Our decision to reduce our workforce numbers is based on the decline in global commodity prices, which has meant a reduced capital spending program for us this year,” Anderson said. “The impacts of the reductions are hitting all functions supporting all parts of the organization.” Repsol, based in Madrid, agreed in December to acquire Talisman for $8.3 billion in a deal scheduled to close by mid-year. The job cuts aren’t related to the takeover, Anderson said. Talisman Chief Executive Officer Hal Kvisle, who announced the workforce reduction to employees on Tuesday, said last month the company was planning to make cuts because of low oil prices, and that the takeover by Repsol would make additional positions redundant. Talisman employed about 2,800, not including contractors, at the end of 2013, Anderson said. Nexen, based in Calgary, said it’s cutting 300 workers in Canada, 40 in the U.S. and 60 in the U.K. Athabasca, also based in the city, said it has cut half of its head office jobs to lower costs since late last year, without giving a number.
News Article | April 15, 2015
Bank of Canada Governor Stephen Poloz is becoming Canada’s leading optimist projecting a faster return to target on inflation amid a generally improving economy. Growth will quicken to a 2.8 percent annualized pace in the third quarter, the central bank said Wednesday, exceeding all forecasts in a Bloomberg survey. Poloz kept the benchmark interest rate at 0.75 percent and said the positive side of the story will dominate in the second half, lifting inflation back to the 2 percent target almost a year ahead of schedule. It’s a stark change from January, when Poloz shocked markets by cutting rates by a quarter point, a move he called “insurance” against the economic damage wrought by collapsing oil prices. He also told the Financial Times last month Canada’s economy was atrocious in the first quarter. The statement released by the bank Wednesday signaled the worst of the oil-price shock may be over, with improvements ranging from early signs of labor-market strength to gains in the non-energy exporting sector. “Those positive signs are there and right now you can’t see them because the oil price shock has overwhelmed them,” Poloz said at a press conference in Ottawa. “We are confident that the story is taking place.” Economists still say another rate cut is possible unless growth accelerates in the next few months. However today’s comments from Poloz prompted some traders to pare bets on more cuts. Derivative swaps show the chances of lower rates by the end of the year fell to about 45 percent, from about 56 percent yesterday. The Governor’s reliance on the single rate cut contrasts with recent comments about “serial disappointment” in global demand, and would mark the first time in at least two decades the bank has moved just once after a shock. “They firmly believe this will work wonders in bringing growth back,” said Jimmy Jean, a strategist in the fixed-income group at Desjardins Capital Markets in Montreal. “It makes you nervous: are we really going see that rebound in the expected timeframe or is it going to drag on?” The bank reiterated the world’s 11th-largest economy will return to full output by the end of 2016, as the damage from oil “will be more front-loaded than predicted in January, but not larger,” policy makers said in a statement accompanying the rate decision. “Risks to the outlook for inflation are now roughly balanced and risks to financial stability appear to be evolving as expected.” The bank cut its forecast for economic growth this year to 1.9 percent, from the 2.1 percent pace it predicted in January, on a drop in investment linked to cheaper oil. It lifted its outlook for 2016 growth to 2.5 percent, from 2.4 percent. Canada’s dollar reacted to Poloz’s change in tone, reversing losses after the 10 a.m. decision and climbing to the highest in two months. It traded 1.5 percent higher at C$1.2301 versus the U.S. dollar at 3:07 p.m. in Toronto. Canada’s dollar is still down 11 percent over the past year. The yield on government benchmark two-year yields rose 5 basis points to 0.56 percent. All 22 economists in a Bloomberg survey expected no change today, in contrast to the January cut that no one predicted. “The jury is still out” on whether another rate cut is needed, said Mark Chandler, head of fixed-income research at RBC Capital Markets in Toronto. “It’s the data coming in that changes the ebb and flow” of future decisions, he said. Canada joins Singapore, India and Australia among countries that are pausing after unexpected cuts earlier in the year. Poloz billed his January cut as “insurance” for the Group of Seven’s biggest crude exporter and since then reports on output, employment and housing have all beaten economist forecasts. Poloz’s previous statements about an economy that was weaker than it seemed provided fodder to opposition lawmakers to criticize Prime Minister Stephen Harper before elections in October. Harper has ruled out using government finances to spur economic growth. His Finance Minister Joe Oliver is scheduled to present the 2015-16 budget later this month. Poloz put the past behind him Wednesday, cutting his estimate of first-quarter growth to zero from 1.5 percent and saying growth this quarter will reach 1.8 percent. Poloz’s first-quarter figure is below the 1.1 percent median estimate in a Bloomberg economy. “Our outlook is for the positives to begin to reassert themselves during the second quarter, and to do so clearly in the second half of the year,” Poloz said at the press conference. The drop in prices for crude oil, Canada’s biggest export, reduced real gross domestic income by 0.7 percent in the fourth quarter and the relative prices of exports to imports by 8 percent, the bank said today. Oil and gas investment will drop 30 percent this year, while non-energy investment will grow 7 percent over the next few years on average, the report said. To be sure, the bank said today that significant slack remains in the economy and oil prices could lead to problems beyond the first quarter. “Over the remainder of 2015, there continue to be important downside risks to oil prices, since it will take time for cuts in investment to be reflected in reduced production,” the bank said. Housing markets in Alberta, home to the largest heavy oil deposits, are vulnerable to a correction, as are those in Toronto and Vancouver after “robust price growth,” the bank said.
News Article | January 21, 2015
A Talisman Energy Inc. shareholder sued to stop the proposed $8.3 billion sale of the Canadian explorer to Repsol SA, saying the price undervalues the company. Spain’s largest energy company agreed last month to pay shareholders of Calgary-based Talisman $8 (C$9.87) in cash for each share they own, a 60 percent premium to the company’s 30-day weighted average price as of Dec. 16. Shareholder James Baqleh sued Jan. 20 in New York state Supreme Court in Manhattan seeking to stop the acquisition, saying the transaction is “grossly inadequate” and investors would be “irreparably damaged” if it’s completed, according to court filings. The Madrid-based company’s deal to buy the Canadian producer was the cheapest among the five largest oil and natural gas purchases in North America last year, if the $4.7 billion of debt included in the deal is counted. With crude prices close to the lowest since 2009, Repsol avoided a lofty offer as oil plunged. Talisman’s board has “inexplicably chosen to sell itself for a fraction of its net worth” instead of trying to survive a drop in oil prices with “financial prudence” and a possible sale of certain assets, Baqleh said. “We believe the lawsuit is without merit,” Brent Anderson, a spokesman for Talisman, said in an e-mailed statement. “We continue to respect and welcome the opinions of all our shareholders.” Anderson said the company wouldn’t comment further since the matter is before the court. Kristian Rix, a Repsol spokesman, declined to comment when contacted by phone. The case is Baqleh v. Talisman Energy Inc., 650180/2014, New York State Supreme Court, New York County (Manhattan).
News Article | July 30, 2015
Repsol SA, Spain’s largest oil company, reported a 20 percent drop in second-quarter earnings as lower crude prices outweighed higher refining margins and led to a loss at its upstream operations. Adjusted net income fell to 312 million euros ($342 million) from 390 million euros a year earlier, the Madrid-based producer said Thursday in a statement. That matched the average estimate of 19 analysts surveyed by Bloomberg. Repsol has relied on some of Europe’s highest refining margins to weather the slump in oil prices that led the industry to cut billions of dollars in investments. The company said ramping up projects in Brazil, the U.S., Bolivia and Peru partly offset a halt in Libyan production. Repsol’s refining margins, or the profit from turning a barrel of oil into fuels, rose to $9.10 a barrel in the quarter from $3.10 a barrel a year earlier as lower crude prices reduced costs for processors. The shares fell 4 percent to close at 15.38 euros in Madrid, the biggest drop since June 29. Oil and natural-gas production climbed to 525,000 barrels of oil-equivalent a day from 338,000 barrels a year earlier, after Repsol acquired Talisman Energy Inc. earlier this year. Second-quarter earnings before interest, taxes, depreciation and amortization jumped 39 percent to 1.42 billion euros. Upstream operations posted a 48 million-euro loss in the second quarter, while adjusted net income from its downstream business almost tripled to 439 million euros, Repsol said. During the three-month period, Repsol completed 14 wells. Six of them were successful and four others are being evaluated, the company said.
News Article | April 28, 2015
CALGARY, Alberta – April 8, 2015 – Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) announced today that the company has declared a dividend on the company's common shares of US$0.1125 per share. The dividend will be paid on April 29, 2015 to shareholders of record at the close of business on April 20, 2015. This is the dividend which was previously anticipated to be declared prior to completion of the company's arrangement transaction with Repsol S.A. The completion of the arrangement remains subject to the receipt of required regulatory approvals and other customary closing conditions. The completion of the arrangement is still anticipated to occur in the second quarter of 2015. Talisman Energy Inc. is a global upstream oil and gas company, headquartered in Canada. Talisman has two core operating areas: the Americas (North America and Colombia) and Asia-Pacific. Talisman is committed to conducting business safely, in a socially and environmentally responsible manner, and is included in the Dow Jones Sustainability (North America) Index. Talisman is listed on the Toronto and New York stock exchanges under the symbol TLM. Please visit our website at www.talisman-energy.com. For further information, please contact: