Talisman Energy Swings To Profit, But Revenue, Production Down - Update

(RTTNews) - Talisman Energy Inc. (TLM, TLM.TO) Tuesday reported a profit for the third quarter compared with a loss last year, reflecting mainly mark-to-market gains on commodity derivatives, despite lower revenues.

The Canadian oil and gas company's total production declined 5 percent, primarily due to sale of its Montney, Monkman and Ojay dry gas assets this year.

For the third quarter, the firm posted net income of $425 million or $0.38 per share, compared to a net loss of $54 million or $0.08 per share in the prior-year period.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue and other income declined to $1.14 billion from $1.24 billion in the same quarter a year ago. Analysts estimated revenues of $1.33 billion for the quarter.

For the recent quarter, the company posted a gain on held-for-trading financial instruments of $428 million, compared to a loss of $120 million in the prior year.

Total production averaged 353,000 boe/d, down 5 percent from 371,000 boe/d in the prior year. Production from ongoing operations was 348,000 boe/d.

Total liquids production edged up to 135,000 boe/d from 134,000 boe/d a year earlier. Total natural gas production was 1,310 mmcf/d, lower than 1,423 mmcf/d in the same quarter a year ago.

The firm declared a quarterly dividend of $0.0675 per share, to shareholders on record December 15, 2014, payable December 31.

The company has also declared a quarterly dividend of C$0.2625 on its Cumulative Redeemable Rate Reset First Preferred Shares, Series 1.

Capital spending was $755 million, down 11 percent from the same period last year.

Hal Kvisle, president and CEO said, "With three quarters behind us, our performance against our 2014 guidance remains strong. Expected full-year production from ongoing operations is in line with the 350-365 mboe/d range we guided to, despite the sale of 6.5 mboe/d of dry gas production over and above our original guidance target."

The firm lowered its capital spending guidance to about $3 billion from $3.2 billion projected earlier.

On the NYSE, TLM closed Monday's trading at $6.10, down 4.39 percent.