Additional Information
All financial data should be read in conjunction with the audited Consolidated Financial Statements of the Company contained in the 2008 Annual Financial Report.
financial summary
| Years ended December 31 (millions of C$) | 2008 | 2007 1 | 2006 1 | 2005 | 2004 |
| Balance sheets | |||||
| Total assets | 24,275 | 21,420 | 21,481 | 18,354 | 12,408 |
| Income statements | |||||
| Total revenue | 9,806 | 7,552 | 7,230 | 7,028 | 4,840 |
| Total expenses | 4,678 | 5,632 | 4,461 | 4,593 | 3,909 |
| Income from continuing operations before taxes | 5,128 | 1,920 | 2,769 | 2,435 | 931 |
| Taxes | |||||
| Current income tax | 1,497 | 700 | 671 | 960 | 427 |
| Future income tax (recovery) | 119 | (58) | 519 | 71 | (143) |
| Petroleum revenue tax (PRT) | 176 | 258 | 283 | 184 | 128 |
| Net income from continuing operations | 3,336 | 1,020 | 1,296 | 1,220 | 519 |
| Net income from discontinued operations | 183 | 1,058 | 709 | 341 | 135 |
| Net income | 3,519 | 2,078 | 2,005 | 1,561 | 654 |
1. Restated for operations classified as discontinued in 2008.
net income in accordance with US GAAP
| Years ended December 31 (millions of C$ unless otherwise stated) | 2008 | 2007 | 2006 |
| Net income – US GAAP | 3,510 | 1,968 | 1,920 |
| Net income per common share (C$) | |||
| Basic | 3.45 | 1.91 | 1.76 |
| Diluted | 3.40 | 1.86 | 1.71 |
ratios and key indicators
| Years ended December 31 (millions of C$ except where indicated) | 2008 | 2007 | 2006 | 2005 | 2004 |
| Net income | 3,519 | 2,078 | 2,005 | 1,561 | 654 |
| Cash flow 1 | 6,163 | 4,327 | 4,748 | 4,672 | 2,916 |
| Exploration and development spending | 5,106 | 4,449 | 4,578 | 3,179 | 2,538 |
| Acquisitions | 452 | 317 | 204 | 3,170 | 330 |
| Dispositions | 442 | 1,477 | 872 | 22 | 88 |
| Debt/debt+equity (%) | 26 | 38 | 38 | 43 | 34 |
| Debt/cash flow (times) | 0.7 | 1.1 | 1.0 | 0.9 | 0.8 |
| Per common share (C$) | |||||
| Net income | 3.46 | 2.01 | 1.84 | 1.41 | 0.57 |
| Cash flow 1 | 6.06 | 4.19 | 4.35 | 4.23 | 2.54 |
| Average royalty rate (%) 2 | 18 | 18 | 17 | 17 | 16 |
| Unit operating costs ($/boe) | 13.57 | 12.14 | 9.98 | 8.41 | 7.26 |
| Unit DD&A ($/boe) 2 | 16.41 | 14.71 | 12.22 | 10.88 | 10.29 |
- Non-GAAP measure. See advisories on page 46.
- 2007 and 2006 restated for operations classified as discontinued in 2008.
netbacks
Detailed information on the Company’s netbacks can be found in Talisman’s 2008 Annual Financial Report.
| (C$/boe) | 2008 | 2007 | 2006 | 2005 | 2004 |
| Sales price | 76.03 | 59.57 | 57.45 | 56.67 | 42.75 |
| Hedging gain (loss) | (0.17) | 0.63 | 0.37 | (0.46) | (3.02) |
| Royalty | 13.62 | 10.19 | 9.58 | 9.41 | 7.04 |
| Transportation | 1.34 | 1.37 | 1.28 | 1.21 | 1.20 |
| Operating expenses | 13.57 | 12.14 | 9.98 | 8.41 | 7.26 |
| Netback | 47.33 | 36.50 | 36.98 | 37.18 | 24.23 |
operations summary
| Years ended December 31 | 2008 | 2007 | 2006 | 2005 | 2004 |
| Daily average production 1 | |||||
| Oil (bbls/d) | |||||
| North America | 30,109 | 31,723 | 36,280 | 39,494 | 41,775 |
| UK | 92,267 | 99,756 | 99,500 | 104,982 | 114,019 |
| Scandinavia | 31,110 | 29,459 | 31,346 | 24,947 | 5,483 |
| Southeast Asia | 32,178 | 41,136 | 49,872 | 33,842 | 34,050 |
| Other | 20,917 | 20,653 | 21,559 | 25,488 | 13,537 |
| Natural gas liquids (bbls/d) | |||||
| North America | 10,317 | 11,576 | 13,566 | 14,117 | 12,618 |
| UK | 1,474 | 2,237 | 3,242 | 2,038 | 1,980 |
| Scandinavia | 1,748 | 1,143 | 1,128 | 749 | 379 |
| Southeast Asia | 3,574 | 3,031 | 1,710 | 1,634 | 1,594 |
| Synthetic oil (Canada) (bbls/d) | – | – | 3,431 | 2,693 | 2,999 |
| Total oil and liquids | 223,694 | 240,714 | 261,634 | 249,984 | 228,434 |
| Natural gas (mmcf/d) | |||||
| North America | 856 | 876 | 910 | 915 | 885 |
| UK | 38 | 88 | 126 | 111 | 111 |
| Scandinavia | 19 | 14 | 14 | 9 | 3 |
| Southeast Asia | 334 | 287 | 292 | 284 | 260 |
| Total natural gas | 1,247 | 1,265 | 1,342 | 1,319 | 1,259 |
| Total (mboe/d) | 432 | 452 | 485 | 470 | 438 |
| Production (boe/share) | 0.16 | 0.16 | 0.162 | 0.155 | 0.139 |
| Proved reserves (boe/share) | 1.41 | 1.61 | 1.57 | 1.49 | 1.32 |
| WTI (average US$/bbl) | 99.65 | 72.31 | 66.25 | 56.70 | 41.40 |
| NYMEX gas (average US$/mmbtu) | 8.95 | 6.92 | 7.26 | 8.55 | 6.09 |
| US$/C$ exchange rate (year-end) | 0.8166 | 1.0120 | 0.8581 | 0.8577 | 0.8308 |
- Production includes production for continuing and discontinued operations.
net production (after royalties) 1
| 2008 | 2007 | 2006 | 2005 | 2004 | |
| Oil and liquids (bbls/d) | |||||
| North America | 32,486 | 34,298 | 39,382 | 42,613 | 43,303 |
| UK 2 | 93,391 | 100,964 | 101,682 | 105,582 | 114,906 |
| Scandinavia 3 | 32,789 | 30,474 | 32,327 | 25,676 | 5,862 |
| Southeast Asia 4 | 16,988 | 23,774 | 29,211 | 21,406 | 20,884 |
| Other 5 | 11,447 | 13,832 | 14,816 | 17,994 | 8,338 |
| Total oil and liquids | 187,101 | 203,342 | 217,418 | 213,271 | 193,293 |
| Natural gas (mmcf/d) | |||||
| North America | 712 | 721 | 744 | 733 | 715 |
| UK 2 | 38 | 83 | 119 | 103 | 102 |
| Scandinavia 3 | 19 | 14 | 14 | 9 | 3 |
| Southeast Asia 4 | 223 | 199 | 214 | 198 | 194 |
| Total natural gas | 992 | 1,017 | 1,091 | 1,043 | 1,014 |
| Total conventional (mboe/d) | 352 | 373 | 399 | 387 | 362 |
| Synthetic oil (Canada) (mbbls/d) 6 | – | – | 3.0 | 2.6 | 2.9 |
| Total (mboe/d) | 352 | 373 | 402 | 390 | 365 |
- Production includes both production from sales completed in the year, until the date of closing, and production from asset sales expected to close subsequent to 2008.
- UK includes the UK and the Netherlands.
- Scandinavia includes Denmark from 2005 until the sale of assets in 2008.
- Southeast Asia includes Indonesia, Malaysia/Vietnam and, from 2005, Australia.
- Other includes North Africa, including production from Algeria, Tunisia from 2005 and Trinidad and Tobago from 2005.
- Talisman sold its indirect interest in Syncrude on January 2, 2007.
gross proved reserves
| (mmboe) | SEC Year-End Pricing |
2008 Pricing |
| December 31, 2007 | 1,660 | 1,660 |
| Discoveries, extensions and additions | 103 | 103 |
| Net acquisitions and dispositions | (27) | (27) |
| Price revisions | (159) | 19 |
| Other revisions | 15 | 15 |
| Production | (158) | (158) |
| Total proved, December 31, 2008 | 1,434 | 1,612 |
In 2008, the Company added 118 mmboe of gross proved reserves through drilling and positive revisions (non-price), replacing 75% of 2008 production. Under existing regulations, the Company wrote down gross proved reserves, almost all in the UK North Sea, due to low year-end prices. Using average annual prices, which the SEC has adopted going forward, Talisman would have booked a 19 mmboe positive revision instead of writing off 159 mmboe gross proved reserves.
market information
| 2008 | 2007 | 2006 | |||||
| Common Shares | TSX (C$) |
NYSE (US$) |
TSX (C$) |
NYSE (US$) |
TSX (C$) |
NYSE (US$) |
|
| Share price ($) | High | 24.92 | 25.71 | 22.67 | 22.08 | 24.84 | 21.62 |
| Low | 8.28 | 6.42 | 16.90 | 15.04 | 16.12 | 14.21 | |
| Close | 12.18 | 9.99 | 18.39 | 18.52 | 19.80 | 16.99 | |
| Shares traded (millions) | First quarter | 292.1 | 330.2 | 348.6 | 217.8 | 304.9 | 247.4 |
| Second quarter | 349.4 | 370.3 | 260.9 | 168.0 | 291.4 | 211.9 | |
| Third quarter | 327.0 | 421.2 | 273.0 | 204.3 | 300.7 | 146.9 | |
| Fourth quarter | 395.5 | 433.1 | 194.5 | 181.7 | 290.6 | 174.1 | |
| Year | 1,364.0 | 1,554.8 | 1,077.0 | 771.8 | 1,187.6 | 780.3 | |
| Year-end shares outstanding (millions) | 1,019 1 | 1,019 | 1,064 | ||||
| Weighted average shares outstanding (millions) | 1,017 | 1,032 | 1,092 | ||||
| Year-end stock options outstanding (millions) | 64.9 | 63.6 | 63.9 | ||||
- Includes shares held in trust relating to the Company’s Performance Share Unit plan.
