Talisman Q3 profit rises on oil price

Wed Nov 2, 2011 6:42am EDT
 
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(Reuters) - Talisman Energy Inc's TLM.TO third-quarter profit from operation grew over a third, helped partially by higher oil prices.

Canada's No. 4 independent oil producer's earnings from operations, which exclude most one-time items, rose to $165 million, or 16 cents a share, from $120 million, or 12 cents a share, a year ago.

Brent oil prices hovered near $110 per barrel, nearly 50 percent higher than the year-ago quarter, but were slightly down sequentially.

Revenue for the quarter rose 16 percent to $1.96 billion.

Cash flow, a key indicator of a company's ability to pay for new projects and drilling, rose 29 percent to $902 million, or 88 cents per share.

Talisman, which has warned twice this year that oil and gas production would not meet previous targets, last month said 2011 output would average around 425,000 barrels of oil equivalent per day (boepd), down 20,000 boepd from its previous forecast.

Third-quarter production averaged 400,000 boepd, down slightly from 404,000 boepd a year ago.

The company said its output from shales, including Eagle Ford, Marcellus and Montney, doubled and would account for more than half of its North American production at year-end.

It expects 2011 shale production to rise 125 percent to 490 mmcfe/d and will deploy a total of 10 drilling rigs in Eagle Ford shale.

(Reporting by Aftab Ahmed and Maneesha Tiwari in Bangalore; Editing by Joyjeet Das)