Summary of Quarterly Results

The following is a summary of quarterly results of the Company for the eight most recently completed quarters:

    Three months ended
(millions of C$, unless otherwise stated) Total Year Dec. 311 Sep. 301 Jun. 301 Mar. 311
2010          
Gross sales 8,076 2,194 1,995 1,850 2,037
Total revenue 6,912 1,874 1,711 1,553 1,774
Income (loss) from continuing operations 408 (313) 68 412 241
Net income (loss) 648 (304) 121 603 228
Per common share ($)          
Income (loss) from continuing operations 0.40 (0.31) 0.07 0.40 0.24
Diluted income (loss) from continuing operations2       0.39 (0.31) 0.07 0.40 0.23
Net income (loss) 0.64 (0.30) 0.12 0.59 0.23
Diluted net income (loss)2        0.62 (0.30) 0.12 0.58 0.22
Daily average production          
Oil and liquids from continuing operations (mbbls/d)3        186 190 175 177 201
Natural gas from continuing operations (mmcf/d) 1,225 1,313 1,282 1,172 1,130
Continuing operations (mboe/d) 390 409 389 372 389
Discontinued operations (mboe/d) 27 8 15 39 46
Total (mboe/d) 417 417 404 411 435
2009          
Gross sales 7,011 2,056 1,647 1,642 1,666
Total revenue 6,061 1,723 1,430 1,470 1,438
Income (loss) from continuing operations (658) (181) 25 (432) (70)
Net income (loss) 437 (111) 30 63 455
Per common share ($)          
Income (loss) from continuing operations (0.65) (0.18) 0.02 (0.42) (0.07)
Diluted income (loss) from continuing operations2        (0.65) (0.18) 0.02 (0.42) (0.07)
Net income (loss) 0.43 (0.11) 0.03 0.06 0.45
Diluted net income (loss)2        0.43 (0.11) 0.03 0.06 0.45
Daily average production          
Oil and liquids from continuing operations (mbbls/d)3        196 193 182 193 211
Natural gas from continuing operations (mmcf/d) 1,016 1,065 995 998 1,017
Continuing operations (mboe/d) 365 371 348 360 381
Discontinued operations (mboe/d) 60 52 53 64 69
Total (mboe/d) 425 423 401 424 450
  1. Prior periods have been restated to reflect the impact of discontinued operations. See note 3 to the Consolidated Financial Statements.
  2. Diluted net income (loss) and diluted income (loss) from continuing operations per common share are calculated using the treasury stock method, which gives effect to the potential dilution that could occur if stock options were exercised in exchange for common shares.
  3. Includes oil volumes produced into, and excludes oil volumes produced into (sold out of) inventory for the years ended December 31, 2010 and 2009 of 171 bbls/d and (9,556) bbls/d, respectively.

During the fourth quarter of 2010, gross sales increased by $138 million over the fourth quarter of 2009 as a result of increased gas production and increased oil prices, partially offset by decreased gas prices. The loss from continuing operations in the fourth quarter increased by $132 million from the same period in 2009 resulting from higher taxes, higher stock-based compensation and higher exploration expense, partially offset by higher production and commodity prices, lower dry hole expense and lower DD&A.

Also, during the fourth quarter of 2010, the Company:

  • completed the transaction with Statoil to acquire land in the liquids-rich area of the Eagle Ford shale play, which is described in the ‘Acquisitions’ section of this MD&A;
  • exited the quarter with a production rate of 315 mmcf/d in the Pennsylvania Marcellus shale play;
  • sold oil and gas producing assets in Western Canada for aggregate proceeds of $353 million, resulting in an after tax gain of $5 million; and
  • reached an agreement to create a strategic partnership with Sasol to develop the Farrell Creek assets in Talisman’s Montney shale play in British Columbia, agreeing to sell a 50% working interest for total consideration of $1.05 billion, comprising $260 million in cash and $790 million of future capital that Sasol will fund on Talisman’s behalf.