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John Manzoni, former president and CEO of Talisman Energy (Jeff McIntosh/The Canadian Press)

John Manzoni, former president and CEO of Talisman Energy

(Jeff McIntosh/The Canadian Press)

Talisman profit, revenue climb Add to ...

Talisman Energy Inc. says its profit was $698-million in the second quarter, up from $572-million in the same quarter last year.

Total revenue and other income for the quarter was just over $2.2-billion compared to $1.6-billion in income in the second quarter of 2010.

Analysts polled by Thomson Reuters were on average expecting Talisman to earn 30 cents per share and record revenue of $2.1-billion.

"Talisman achieved a strong financial performance this quarter" said John A. Manzoni, president and CEO.

"We continue to grow and strengthen our shale portfolio in North America, and are looking forward to results from a number of significant exploration wells in the second half of the year."

Like many natural gas producers, Talisman has been coping with stubbornly low natural gas prices by drilling in areas rich in valuable liquids. Natural gas liquids, used to make plastics and petrochemicals, track oil prices more closely than they do ordinary dry natural gas.

Last fall, Talisman bulked up its presence in a liquids-rich part of the Eagle Ford shale in Texas, alongside Norway's Statoil.

Another strategy natural gas producers have adopted recently is to ink joint-venture deals. In December, Talisman agreed to sell a 50-per-cent stake in two of its shale properties in northeastern British Columbia to South Africa's Sasol for $1.05-billion each.

The two companies said they will also collaborate on a study to find out whether it's economically feasible to build a plant in Western Canada that would convert natural gas into liquid fuels.

The firm also has holdings in Quebec's Utica shale and the Pennsylvania and New York portions of the Marcellus shale.

One of Talisman's key operating areas is the British sector of the North Sea. In March, the U.K. government raised its cash flow tax from 50 per cent to 62 per cent, surprising many energy companies drilling offshore.

The hike dealt a $250-million blow to Talisman's bottom line during the first quarter, and (chief executive officer John) Manzoni said at the time the future of the company's operations in the region is uncertain.

Talisman's other key areas of focus include offshore production in Southeast Asia, as well as operations in South America and the Middle East.

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