Talisman Energy Inc. (TLM: Quote,TLM.TO: Quote) posted first quarter profit of $291 million or $0.25 per share versus loss of $326 million or $0.32 per share a year ago.
Earnings from operations per share were $0.16, up from $0.15 in the same quarter a year earlier.
On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share. Analysts' estimates typically exclude special items.
Total revenue and other income grew to $2.12 billion from $2 billion in the prior-year quarter. Analysts estimated revenues of $2.09 billion.
Production averaged 462,000 boe/d, up 4% from a year ago, driven by growth in both North American shale and Southeast Asia.
"The first quarter was very strong operationally, and we have made significant progress towards meeting key objectives set out in our January guidance," said John Manzoni, President and Chief Executive Officer.
"On a macro level, although oil prices are a bit stronger, North American gas prices are weaker than we anticipated coming into the year. As a result, we are taking additional steps to reduce capital spending in dry gas plays in North America. We are now projecting total capital expenditure on exploration and development activities to be around $3.6 billion for the year. For the remainder of the year, we anticipate spending only about $200 million on dry gas activities in North America, primarily to maintain land and options for the future.
...Underlying production growth for the year is now projected to be at the bottom of our production growth guidance range of 0 - 5%, due to the further reduction of capital in our dry gas assets. The actual outcome will depend on the asset disposals we make through the year..."
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by RTT Staff Writer
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