Skip to main content May 2013 Investor Presentation – Talisman Energy Inc. | Shale Experts
Loading...
Pm

May 2013 Investor Presentation – Talisman Energy Inc.

Talisman Energy Inc. · May 2, 2013 · 53 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. May 2013 Investor Presentation – Talisman Energy Inc. – slide 1
    CORPORATE PRESENTATION MAY 2013
  2. May 2013 Investor Presentation – Talisman Energy Inc. – slide 2
    TALISMAN OVERVIEW ? 2013 production guidance ? Liquids 140-150 mmbl/d ? International gas 575-610 mmcf/d ? North American gas 830-860 mmcf/d ? Total 375-395 mboe/d ? 1,700 mmboe 2P reserves* ? 45% liquids or liquids-linked ? In…
  3. May 2013 Investor Presentation – Talisman Energy Inc. – slide 3
    TALISMAN ? ADDRESSING THE ISSUES More focused company ? 2 core areas: Americas and Asia-Pacific ? Remainder of portfolio: develop, JV or divest 2 Unlock NAV in portfolio 3 ? Commitment to $2-3 billion in asset sales Stabilized the…
  4. May 2013 Investor Presentation – Talisman Energy Inc. – slide 4
    SIX MONTH LOOKBACK ? Reduced exposure to North Sea ? Sold 49% of U.K. for $1.5 billion ? Less exposure to North Sea underperformance ? Continued growth in Southeast Asia ? Kinabalu acquisition, Sabah near-term exploration ? Vietnam:…
  5. May 2013 Investor Presentation – Talisman Energy Inc. – slide 5
    ~90% of production 2013 production 375-395 mboe/d ~85% of 2P reserves 2012 2P reserves 1.7 billion boe RLI ~ 12 years ~90% of COGEH 2P value 2012 COGEH 2P value ~ $14 billion ~95% of contingent resource 2012 contingent…
  6. May 2013 Investor Presentation – Talisman Energy Inc. – slide 6
    FUTURE ASSET BASE UPSIDE Barrels of oil equivalent* mmboe Talisman?s contingent (6.7 billion boe) and unrisked prospective resources (3.1 billion boe) are > 5x 2P In addition: Blocks 6 and 9 in Colombia North America contingent…
  7. May 2013 Investor Presentation – Talisman Energy Inc. – slide 7
    2013 PRIORITIES TO DRIVE VALUE CREATION ? Set capital spending budgets that can be funded by operating cash flows ? Less reliance on asset sales to fund capital program in future years ? Maintain strong balance sheet Live within our…
  8. May 2013 Investor Presentation – Talisman Energy Inc. – slide 8
    2013 CAPITAL SPEND ? CLOSING FREE CASH FLOW GAP 0 1,000 2,000 3,000 4,000 5,000 6,000 Cash flow vs. investment by product $ million 0 1,000 2,000 3,000 4,000 Investment by region $ million 2012 2013 35% 30% 30% 60%…
  9. May 2013 Investor Presentation – Talisman Energy Inc. – slide 9
    MORE FOCUSED EXPLORATION ? Limit long-dated exploration and appraisal spend to ~$110 million in 2013 ? Kurdistan $60 million ? PNG $30 million ? Vietnam ? Nam Con Son $10 million ? Near-term exploration and appraisal focused on:…
  10. May 2013 Investor Presentation – Talisman Energy Inc. – slide 10
    430 420 410 400 390 380 370 2012 production 2012 post dispositions 2013 0 360 HIGH PRIORITY: CREATING VALUE FROM EXISTING PRODUCTION 2013 production mboe/d $5/boe netback $55/boe netback $35/boe netback Liquids…
  11. May 2013 Investor Presentation – Talisman Energy Inc. – slide 11
    OIL AND LIQUIDS ? SIGNIFICANT MOMENTUM INTO 2014 Production mbbl/d 2012* Net decline 2013 Net decline 2014 180 160 140 0 >10% p.a. 120 ? Focus on Americas and Asia-Pacific ? Volume growth linked to current capital allocations…
  12. May 2013 Investor Presentation – Talisman Energy Inc. – slide 12
    UNLOCKING THE VALUE OF OUR PORTFOLIO Core Assets ~2,500 Major assets ? cash flow $ million 6 assets produce ~60% of 2013 cash flow HST/HSD Eagle Ford Colombia Marcellus PM-3 Corridor Current value range for select longer…
  13. May 2013 Investor Presentation – Talisman Energy Inc. – slide 13
    MONTNEY AND NORTH DUVERNAY ? DIVESTMENT OR JV Alberta Greater Cypress ? 11 tcf contingent resource ? 2,500 net well locations Farrell Creek JV/Cypress A JV ? 10 tcf contingent resource ? 1,750 net well locations Greater…
  14. May 2013 Investor Presentation – Talisman Energy Inc. – slide 14
    INTERNATIONAL PORTFOLIO: DEVELOP, JV OR DIVEST North Sea 1Q 2013 production (mboe/d) 2P reserves (mmboe) U.K. (at 51%) 21 200 Norway 19 40 1Q 2013 production (mboe/d) 2P reserves (mmboe) Contingent resource (mmboe)…
  15. May 2013 Investor Presentation – Talisman Energy Inc. – slide 15
    NON-OPERATED HIGH VALUE ASSETS 0 10 20 30 2013 2014 2015 2016 Production outlook boe/d Sources and uses of cash $ million 0 100 200 300 Australia Tangguh Algeria Capex 2013 2014 2015 2016 Australia Tangguh Algeria ?…
  16. May 2013 Investor Presentation – Talisman Energy Inc. – slide 16
    MAINTAIN BALANCE SHEET STRENGTH ? 2013 debt to cash flow target ~1.5x ? $1 billion of disposal proceeds required to maintain balance sheet strength ? Further disposal proceeds toward incremental opportunities: - Fund incremental…
  17. May 2013 Investor Presentation – Talisman Energy Inc. – slide 17
    MARGIN ENHANCEMENT Product substitution ? 90% of capital allocated to oil and liquids ? Liquids and international gas 65% of total 2013 production, up 5% from 2012, despite sale of 50% of U.K. Capital efficiency ? Eagle Ford…
  18. May 2013 Investor Presentation – Talisman Energy Inc. – slide 18
    G&A REDUCTIONS ? Reduce G&A footprint by exiting non core countries ? 20-30% reduction in manager level positions ? Significant focus on corporate and North America overhead: ? Corporate centre ? right-sized and fit for purpose ?…
  19. May 2013 Investor Presentation – Talisman Energy Inc. – slide 19
    NORTH AMERICA ? A LARGE RESOURCE BASE Contingent resource: 28 tcfe 1Q 2013 production: 71 mmcfe/d IRR: 18% Montney (~182,000 acres) Prospective resource: 9 tcfe Duvernay (~347,000 acres) Prospective resource: 625 mmboe 1Q 2013…
  20. May 2013 Investor Presentation – Talisman Energy Inc. – slide 20
    LIQUIDS PRODUCTION TO DOUBLE BY 2015 ? EXPECT TO HOLD CAPITAL AT $1.1 BILLION Liquids Production mboe/d Sources and uses of cash $ billion 0.0 0.4 0.8 1.2 1.6 2012 2013 2014 2015 Operating cash flow* Development/appraisal…
  21. May 2013 Investor Presentation – Talisman Energy Inc. – slide 21
    EAGLE FORD 2013 priorities: ? Focus on development of liquids-rich acreage ? Demonstrate repeatable and improved well productivity and top quartile D&C performance ? Smooth transition partial operatorship to Statoil ? Actions to…
  22. May 2013 Investor Presentation – Talisman Energy Inc. – slide 22
    EAGLE FORD OPERATING MOMENTUM Production (mboe/d) Sources and uses of cash $ million 58 45 60 50 40 30 20 10 0 2011 2012 2013 2014 2015 30 15 5 0 150 300 450 600 750 2013 2014 2015 * Assumes COGEH price deck +40%…
  23. May 2013 Investor Presentation – Talisman Energy Inc. – slide 23
    % pad 36 drilling 38 38 35 70 EAGLE FORD ? CONTINUOUS IMPROVEMENT Unlocking value: drilling cycle times ? Achieving a target DCT of 20 days ? Adds 5 mboe/d (net) on a 7 rig program ? Resulting in incremental cash flow of ~$40…
  24. May 2013 Investor Presentation – Talisman Energy Inc. – slide 24
    DEEP BASIN EDSON ? Talisman egress and midstream infrastructure provides competitive advantage ? Over 1,000 km pipeline ? 4 Talisman-owned facilities ? Deep cut plant ? 2013 development focus ? Wild River (deep cut 4Q 2013) ?…
  25. May 2013 Investor Presentation – Talisman Energy Inc. – slide 25
    MONTNEY Asset summary Land (net acres) ~182,000 Contingent resources (tcfe) ~28 2013 expected D&C ($ million)…
  26. May 2013 Investor Presentation – Talisman Energy Inc. – slide 26
    SOUTH DUVERNAY WILLESDEN GREEN POSITION Operational IP Quality Length (ft) # of Stages Gas (mcf/d) Oil (bbls/d) Wellhead yield (bbl/mmcf) API Gravity 11-03-41-4W5* 3450 5/8 320 308 962 50 02-06-41-5W5** 3530 7/9 1094 120…
  27. May 2013 Investor Presentation – Talisman Energy Inc. – slide 27
    MARCELLUS ? PREDICTABLE, SELF-FUNDED GROWTH 2013 priorities: ? Protect core acreage in short term ? Optimize production ? Maintain leading execution and operating costs…
  28. May 2013 Investor Presentation – Talisman Energy Inc. – slide 28
    MARCELLUS ? PROFITABLE, SUSTAINABLE PRODUCTION WITH GROWTH UPSIDE Sources and uses of cash $ million Number 1 of rigs Nymex Single well IRR % $3.50 17 $4.00 28 $4.50 44 1 1 * NYMEX gas price $/mmbtu: 2013 - $3.60, 2014 - $4.00,…
  29. May 2013 Investor Presentation – Talisman Energy Inc. – slide 29
    COLOMBIA ? PRODUCING AND POSITIONED FOR GROWTH Equion JV Heavy Oil Ocensa ? ~12% ownership in strategic pipeline ? Ensures transport for Talisman production ? Can utilize for additional growth or monetize ? 1Q 2013 net production…
  30. May 2013 Investor Presentation – Talisman Energy Inc. – slide 30
    EQUION ? PIEDEMONTE AND NISCOTA Equion and Niscota* $/boe 0 30 60 90 Opex and G&A Taxes Cash Margin Royalty Niscota Hur?n-1 Hur?n-2 Hur?n-3 0 5 10 15 20 km Pauto Cupiagua Norte Cusiana Equion Block Mundo Nuevo TLM…
  31. May 2013 Investor Presentation – Talisman Energy Inc. – slide 31
    NYSE : TLM | TSX : TLM 35 www.talisman-energy.com CPO-9 HEAVY OIL DISCOVERY ? Ecopetrol 55% operator; Talisman 45% ? Akacias-1: 2,100 bbls/d,14% water cut; 1.1 million bbls cumulative (gross) ? 7 well appraisal program started, first…
  32. May 2013 Investor Presentation – Talisman Energy Inc. – slide 32
    BLOCK CPE-6 ? Drilled 12 stratigraphic wells in 2010-2011 and discovered heavy oil accumulation extending over 40,000 acres, with up to 50 feet of net pay ? 3D seismic acquisition ongoing ? Upon licensing approval, will drill and…
  33. May 2013 Investor Presentation – Talisman Energy Inc. – slide 33
    OCENSA ? UNLOCKING VALUE ? Equion position restruct giving Talisman: - ~12% direct ownersh - ~9.5% capacity (50,0 - ~2.5% in Equion ? Ensures transport capac Talisman production ? Maximizes value of T barrels ? Llanos Basin…
  34. May 2013 Investor Presentation – Talisman Energy Inc. – slide 34
    FUTURE TALISMAN COLOMBIA PRODUCTION, CASH FLOW AND CAPITAL 0 10 20 30 40 50 2013 2014 2015 2016 2017 ? Capital spending in range of $200-250 million ? Free cash flow positive within next 2-3 years ? 2013 ? Akacias appraisal and…
  35. May 2013 Investor Presentation – Talisman Energy Inc. – slide 35
    ASIA-PACIFIC ? FOCUSED ON CORE AREAS WITH EXCITING GROWTH OPTIONS Core areas Cash generators Exploration South Sumatra Malay Basin Sabah Basin Papua New Guinea Vietnam Nam Con Son Vietnam HST/HSD Tangguh 0 500 1,000 1,500…
  36. May 2013 Investor Presentation – Talisman Energy Inc. – slide 36
    ASIA-PACIFIC ? TALISMAN?S TRACK RECORD 150 100 50 0 +8% p.a. 2008 2012 Production mboe/d Operational excellence Production Free cash flow and cash flow* $ million * Excludes A&D capital Cash generation 4 3 2 1 0 100 95…
  37. May 2013 Investor Presentation – Talisman Energy Inc. – slide 37
    15 10 5 0 9 bcf/d 2010 2015 2020 2025 RAPIDLY GROWING ASIAN ECONOMIES DRIVING INCREASED ENERGY DEMAND ? Gas supply gap of 9 bcf/d in 2025 ? Domestic gas supply is peaking and cannot keep pace with demand growth ? LNG imports are…
  38. May 2013 Investor Presentation – Talisman Energy Inc. – slide 38
    CORRIDOR ? WORLD CLASS ASSET **Gross sales non-cumulative facility capacity Production outlook(1) mmcfe/d 0 100 200 300 400 500 2013 2016 Sources and uses of cash(1) $ million 0 250 500 750 COPI gas pipeline 3rd party…
  39. May 2013 Investor Presentation – Talisman Energy Inc. – slide 39
    MALAY BASIN CORE AREA ? OPERATIONS EXCELLENCE, EXCITING UPSIDE ? Maintain production levels through infill drilling and well interventions ? Continuous operations improvement ? Secure PM-3 license extension Near-term The future ?…
  40. May 2013 Investor Presentation – Talisman Energy Inc. – slide 40
    PM-3 CAA ? HIGH QUALITY OPERATING BUSINESS ? Top quartile uptime performance ? High netbacks, exceeding $30/boe in 2012 ? Cost effective investment ? Infill exploration opportunities and near-term improvement projects ? Delivering…
  41. May 2013 Investor Presentation – Talisman Energy Inc. – slide 41
    KINABALU ? IMMEDIATE PRODUCTION, SIGNIFICANT GROWTH Production outlook mboe/d 0 10 20 30 2013 2014 2015 2016 Sources and uses of cash $ million 0 50 100 150 200 250 ? Progressive PSC terms granted for 300 production,…
  42. May 2013 Investor Presentation – Talisman Energy Inc. – slide 42
    SABAH BASIN ? NEW CORE AREA ANCHORED BY KINABALU ? Successful transfer of operatorship at Kinabalu on December 26, 2012 ? Production growth through infill drilling and facility upgrades at Kinabalu Near-term The future ?…
  43. May 2013 Investor Presentation – Talisman Energy Inc. – slide 43
    HST/HSD ? ON TRACK TO DELIVER SIGNIFICANT EARLY FREE CASH ? HST/HSD project in Vietnam on schedule and on budget with first production expected around mid-year 2013 ? Expected to deliver near-term peak production of ~12 mboe/d with…
  44. May 2013 Investor Presentation – Talisman Energy Inc. – slide 44
    0 50 100 150 200 ~8% p.a 201320122011201020092008 2016 ASIA-PACIFIC ? GROWING PRODUCTION AND CASH FLOW Steady production growth* mboe/d ? Corridor developments ? PM-3 CAA ? Jambi Merang ? HST/HSD ? Kinabalu ? PNG early…
  45. May 2013 Investor Presentation – Talisman Energy Inc. – slide 45
    KURDISTAN ? MAJOR OIL DISCOVERY AT KURDAMIR ? Kurdamir-1 well (2010) found major Oligocene gas condensate accumulation with oil shows in deeper Oligocene/Cretaceous section ? Topkhana-1 well (2011) found second large gas condensate…
  46. May 2013 Investor Presentation – Talisman Energy Inc. – slide 46
    KURDAMIR / TOPKHANA CROSS SECTION Kurdamir-1 Topkhana Block Topkhana-1 Kurdamir-2 1882m 1840m DST 1 2006m 2300m DST 1 PT 1 PT 2 DST 2 DST 1 DST 6 Kurdamir Block Topkhana-2 Proposed Kurdamir-3 Drilling Kurdamir-2…
  47. May 2013 Investor Presentation – Talisman Energy Inc. – slide 47
    KURDAMIR / TOPKHANA RESOURCES Topkhana (net) Kurdamir (net) Contingent Resource* 1C 2C 3C 1C 2C 3C Gas (bcf) 502 999 1,717 408 538 920 Condensate (mmbbls) 12 33 76 12 16 22 Oil (mmbls) - - - 22 65 267 Topkhana (net) Kurdamir (net)…
  48. May 2013 Investor Presentation – Talisman Energy Inc. – slide 48
    NORTH SEA BUSINESS OVERVIEW ? Drive value from late life assets through: ? Efficient and reliable operations ? Economic redevelopment and life extension projects ? U.K. ? Sold 49% of U.K. business to Sinopec for $1.5 billion,…
  49. May 2013 Investor Presentation – Talisman Energy Inc. – slide 49
    Montrose Area Redevelopment Montrose Arbroath Cayley Godwin Shaw 78 50 0 50 100 +50% 2008-2012 2013-2017 12 9 2 8 4 0 12 2016 2017 Operating efficiency* Percentage (%) Production* mboe/d > 100% Project summary*…
  50. May 2013 Investor Presentation – Talisman Energy Inc. – slide 50
    PRODUCTION AND CAPITAL GUIDANCE Region Play Production range (mboe/d) Capital ($ million) Americas Marcellus 68-70 150 Eagle Ford ~30 650 Edson/Duvernay/ Montney ~62-64 270 Other 10-12 30 Colombia ~20 250 Asia-Pacific…
  51. May 2013 Investor Presentation – Talisman Energy Inc. – slide 51
    TALISMAN KEY HISTORICAL DATA Q1-20131 2012 2011 2010 20092 20082 2007 Ratios and Key Indicators ($ millions, except per share) Cash flow 517 3,434 3,022 2,954 3,961 6,163 4,327 Net Income (loss) (213) 132 776 945 437 3,519 2,078 Per…
  52. May 2013 Investor Presentation – Talisman Energy Inc. – slide 52
    Share information, adjusted to reflect stock splits Average common shares outstanding (millions) 1,027 1,023 1,025 1,018 1,015 1,017 1,032 TSX trading info Average daily trading volume (thousands) 5,077 6,105 5,258 5,042 4,988 5,486…
  53. May 2013 Investor Presentation – Talisman Energy Inc. – slide 53
    TALISMAN KEY HISTORICAL DATA Q1-2013 2012 2011 2010 2009 2008 2007 Daily production, before royalties Oil & liquids (mbbsl/d) 129 162 178 189 211 224 241 Natural gas (mmcf/d) 1,461 1,582 1,491 1,367 1,283 1,247 1,265 Barrels of oil…

From the store

Browse maps, data & reports in the Shale Experts store