Talisman Energy Reports Record Net Income of $1.4 Billion, Cash Flow Increases 48%

Talisman Energy Reports Record Net Income of $1.4 Billion, Cash Flow Increases 48% to $1.7 Billion, Production From Continuing Operations Up 10%
05:00 EST Tuesday, November 04, 2008

CALGARY, ALBERTA--(Marketwire - Nov. 4, 2008) - Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) reported its operating and financial results for the third quarter of 2008.
- Cash flow(1) during the quarter was $1.7 billion, an increase of 48% from a year ago and relatively unchanged from the second quarter. Cash flow from continuing operations(1) was also $1.7 billion.

- Net income was a record $1.4 billion, an increase of 305% from a year earlier, driven by increased netbacks, mark-to-market gains on derivative contracts and stock-based compensation recovery.
- Earnings from continuing operations(1) were $731 million, up 189% compared to the third quarter in 2007, driven by increased volumes and higher netbacks.
- Production averaged 443,000 boe/d, 1% above the third quarter of 2007, despite the sale of approximately 40,000 boe/d of non-core assets over the past year. Production was also 3% above the previous quarter.
- Production from continuing operations averaged 435,000 boe/d, 10% above the same quarter last year and 4% higher than the second quarter of 2008.
- Netbacks for the quarter were $56.19/boe, up 60% from a year ago, but below $61.33/boe in the second quarter.
- Net debt(1) at quarter end was $3.7 billion, down from $4.3 billion at December 31, 2007.
- Talisman's unconventional gas strategy is on track, with 210 gross (129 net) wells drilled year-to-date in unconventional plays, including success in Quebec and Pennsylvania.
- The Company continued to focus operations with the agreed sale of non-core interests in the Netherlands.
- Talisman declared a C$0.10 per share dividend, payable on December 31, 2008.
(1) The terms "cash flow", "cash flow from continuing operations", "earnings from continuing operations" and "net debt" are non-GAAP measures. Please see the advisories and reconciliations elsewhere in this press release.
"Talisman delivered another solid quarter," said John A. Manzoni, President & Chief Executive Officer. "Cash flow, at $1.7 billion, was close to the record set in the previous quarter and up 48% compared to a year ago. Production from continuing operations was up 10% year on year. We set a new record for net income in the quarter at $1.4 billion, although roughly one-third of this came from non-cash gains on our derivatives position. Excluding one-time items, earnings from continuing operations were almost three times the levels reported in the third quarter of last year. Unit operating costs fell slightly during the quarter, as anticipated.
"Strategic implementation continued on track during the quarter. We are making significant progress in the delineation and development of our unconventional resource base in North America and have spent over $1 billion to date, reflecting the impact of accelerated drilling and land purchases.
"The Company continues to build a substantial position in several parts of the Montney shale play, among which is one of the best land positions in the Groundbirch area in BC. With approximately 40,000 net acres in this area, we are accelerating our development plans.
"We are pleased with the progress of our unconventional drilling programs. Overall, Talisman has drilled more than 200 gross wells in unconventional play areas so far this year. We've also had encouraging early results from our first shale tests in Quebec and Pennsylvania.
"The UK North Sea continued to generate substantial amounts of free cash flow during the quarter, with netbacks averaging over $80/boe.
"In Malaysia/Vietnam, growth projects are being progressed, with Northern Fields first gas delivered on time during the quarter, and although start up of Song Doc has been slightly delayed, we expect first oil in the next few weeks. Northern Fields first oil remains on track for the first quarter of 2009. Early development plans for the Hai Su Trang and Hai Su Den fields are also moving toward approval. First production from Rev and Yme in Norway remains on track for the announced dates.
"We have important exploration wells currently drilling in Kurdistan and Colombia, where we have recently added new acreage. In the fourth quarter, we will spud wells in the UK (Godwin), Norway (TR3) and Qatar (TQ-3).
"Our sales program was progressed during the quarter with the agreed sale of assets in the Netherlands. The Trinidad sale is also on track.
"Production for the quarter was strong and benefited from the new projects coming on stream and the completion of planned shutdowns in the UK in particular. However, the Song Doc delay along with the extension of a planned maintenance shutdown at PM-3 CAA means that we now expect annual production to be closer to 430,000 boe/d than our previous target of 435,000 boe/d, since the achievement of this was always dependent on new project delivery in the last quarter of the year.
"The current economic environment remains volatile, and it is important that Talisman continues to implement its strategy through a period of relatively weak commodity prices. Talisman has a strong balance sheet and significant levels of liquidity.
"While we are in the early stages of finalizing our investment plans for 2009, capital programs for next year will be adjusted to ensure that we maintain our current balance sheet strength and liquidity levels through a period of weaker commodity prices. We are currently high-grading our spending plans to invest in those projects that are consistent with the strategy and have the highest returns. This is likely to result in a slowdown in expenditures in North American conventional drilling and prioritizing among our unconventional plays.
"We intend to maintain flexibility and liquidity over the next 12-24 months. Our investment plans will be finalized over the remaining months of this year and we will provide details around capital spending levels and the impact on deliverables in January.
"In summary, the third quarter was a solid quarter of delivery and we are making good progress on the strategy. Talisman is in strong financial shape and we will act to ensure our investment patterns for the remainder of this year and into 2009 allow us to preserve that strength while maintaining momentum in implementing our strategy. "Talisman Generates a Record $1.4 Billion in Net Income

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Website: www.talisman-energy.com

The close: Markets shrug

RTGAMBullish investors who believe that the stock market saw its lowest point in October could find plenty to smile about on Monday. U.S. manufacturing activity fell to its lowest level since 1982 and U.S. auto makers reported their worst sales month since the Second World War - and yet major North American stock market indexes barely budged.

The Dow Jones industrial average closed at 9319.83, down 5.18 points or less than 0.1 per cent. The broader S&P 500 closed at 966.31, down 2.44 points or 0.3 per cent.Given the dismal reports, the slight declines could imply that a deep recession is already be factored into stock prices. Indeed, General Motors Corp. shares fell jut 2.4 per cent after the auto maker reported that its sales plunged 45 per cent in October, year over year.

After adjusting for population growth, it represented the worst month in the postwar era. Similarly, Ford Motor Co. shares fell 2.7 per cent after it reported a 30-per-cent drop in sales.In other moves, Home Depot Inc. fell 5.8 per cent, Walt Disney Co. fell 3.4 per cent and General Electric Co. fell 1.1 per cent. On the upside, Citigroup Inc. rose 2.5 per cent, Microsoft Corp. rose 1.3 per cent and Coca-Cola Co. rose 3.2 per cent.In Canada, the S&P/TSX composite index closed at 9721.09, down 41.67 points or 0.4 per cent.

There, commodity producers were the big weight dragging the index into negative territory, after the price of crude oil tumbled to $63.91 (U.S.) a barrel, down 3.90. EnCana Corp. fell 4.5 per cent, Canadian Natural Resources Ltd. fell 5.4 per cent and Suncor Energy Inc. fell 6.2 per cent. As well, Barrick Gold Corp. fell 4.5 per cent.However, insurance companies were strong, with Manulife Financial Corp. up 8.3 per cent, and Sun Life Financial Inc. rose 4.1 per cent. Research In Motion Ltd. was another big mover, rising 3.8 per cent, and Bombardier Inc. rose 6.9 per cent.Copyright 2001 The Globe and Mail

NEWS RELEASE TRANSMITTED BY Marketwire FOR: TALISMAN ENERGY INC.Talisman Energy Inc. Conference Call SEP 24, 2008 - 13:42 ET CALGARY, ALBERTA--

(Marketwire - Sept. 24, 2008) - Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) has scheduled a telephone conference call for investors, analysts and media on Tuesday, November 4, 2008 at 11:00 a.m. MST (1:00 p.m. EST) to discuss Talisman's third quarter results. Participants will include John A. Manzoni,

President and Chief Executive Officer and members of senior management. Talisman expects to release its third quarter results the morning of November 4 before markets open.To participate in the conference call, please contact the Talisman Energy conference operator at 10:50 a.m. MST (12:50 p.m. EST), 10 minutes prior to the conference call.

Conference Operator Dial in Numbers:1-800-733-7560 (North America) or1-416-915-5761 (Local Toronto & International)

A replay of the conference call will be available at approximately 2:30 p.m. MST on Tuesday, November 4 until 11:59 p.m. Wednesday, November 12, 2008. If you wish to access this replay, please call:


1-877-289-8525 (North America) passcode 21283303# or1-416-640-1917 (Local Toronto & International) passcode 21283303#
Live Internet Audio BroadcastThe conference call will also be broadcast live on the Internet and can be accessed by going to the Talisman website (www.talisman-energy.com) and following the links from the home page. Alternatively, you can point your browser to: http://w.on24.com/r.htm?e=120656&s=1&k=03030004A018B11F30E176FD88777A31Talisman Energy Inc. is an independent upstream oil and gas company headquartered in Calgary, Alberta, Canada. Talisman has operations in Canada and its subsidiaries operate in the UK, Norway, Southeast Asia, North Africa and the United States. Talisman's subsidiaries are also active in a number of other international areas. Talisman is committed to conducting its business in an ethically, socially and environmentally responsible manner. The Company is a participant in the United Nations Global Compact and included in the Dow Jones Sustainability (North America) Index. Talisman's shares are listed on the Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM. FOR FURTHER INFORMATION PLEASE CONTACT:Talisman Energy Inc. - Media and General InquiriesDavid Mann, Vice President,Corporate & Investor Communications(403) 237-1196(403) 237-1210 (FAX)Email: tlm@talisman-energy.comWebsite: www.talisman-energy.comorTalisman Energy Inc. - Shareholder and Investor InquiriesChristopher J. LeGallais, Vice President,Investor Relations(403) 237-1957(403) 237-1210 (FAX)Email: tlm@talisman-energy.comWebsite: www.talisman-energy.com

Post says Talisman seen gaining

Post says Talisman, Nexen, Cdn Oil Sands seen gaining
2008-10-21 09:28 ET - In the News
Also In the News (C-COS) Canadian Oil Sands Trust (2)Also In the News (C-NXY) Nexen Inc

The Financial Post reports in its Tuesday edition that oil companies start reporting their third-quarter results today. The Post's Carrie Tait writes that third-quarter results in the oil patch may not be entirely painful. Kam Sandhar, an analyst at Peters & Co., said quarter-over-quarter production growth for the integrated oil producers will be "slightly positive."

As for domestic large cap companies, Mr. Sandhar said: "From a cash flow perspective, Canadian Oil Sands Trust, Nexen Inc. and Talisman Energy Inc. are the only three entities expected to show per share growth at 26%, 9% and 1%, respectively," he told clients in a note. Oil closed at $74.25 (U.S.), up $2.40 (U.S.) on the day -- above last week's low of $67 (U.S.) but well down from the peak of $147 (U.S.) per barrel in July.

This time around, capital expenditure plans will be under the microscope. Budgets may still be undergoing finishing touches. Analysts say that during this reporting round, capital expenditure plans will be under the microscope in an environment of plunging oil prices and with credit and equity markets in disarray.