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Gold/Mining/Energy : TLM.TSE Talisman Energy -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (1150)	3/7/2001 9:52:35 AM
From: Tomas	Respond to of 1713

Talisman Energy awash in cash - Profits triple, prompting company to consider share dividend Calgary Herald, March 7 By Scott Haggett Talisman Energy Inc, one of Canada's biggest independent petroleum producers, said cash flow and profits reached a record in 2000, leaving the company with so much money it is considering giving some back to shareholders. Calgary-based Talisman said Tuesday that profit for the fourth quarter ended Dec. 31 nearly tripled to $268.4 million, or $1.90 a share, from $92.2 million, or 62 cents in the year earlier period. Cash flow, a key indicator of the company's ability to pay for new projects and drilling, rose 65 per cent to $689.4 million, or $4.98 a share. Revenue rose 63 per cent to $1.39 billion. "These are outstanding results and the numbers speak for themselves," said Jim Buckee, Talisman's chief executive. For the year, Talisman earned $906 million, or $6.32 a share, up from $176.8 million, or $1.30 a year earlier. Full-year cash flow more than doubled to $2.41 billion, or $17.51. Revenue for 2000 also more than doubled, reaching $3.99 billion from $1.97 billion in 1999. The company's financial performance, coming on near-record petroleum prices, has left the directors considering new ways to spend the firm's money. Among the options being contemplated is a first-ever dividend. In a conference call with analysts, Buckee confirmed Talisman was considering a dividend in order to boost returns to shareholders. "We have given (a dividend) extensive thought," he said. "We'll very likely get there." Introduction of a dividend would also make the company's shares eligible to be bought by dividend funds. Buckee didn't specify when a final decision would be made. Talisman, which operates in Canada, Indonesia, the North Sea and war-torn Sudan, expects cash flow of around $20 a share in 2001, giving it more than $2.7 billion to spend. Its budget for exploration and development is $1.7 billion this year. While the company also plans to continue buying back its own shares, paying down debt and making small property acquisitions in Canada and the North Sea, analysts say Talisman could afford to chase bigger game. "They should buy something," said Brian Prokop, an analyst at Peters & Co. in Calgary. "The problem comes in how to spend the money well." Talisman has had a well-deserved reputation as one of the biggest piranhas in the oilpatch pond, acquiring firms as diverse as Rigel Energy Corp., Arakis Energy Corp. and Pembina Resources Ltd. in past years. The company hasn't entered the market recently, which Buckee said was because of sky-high prices being commanded by Canadian oil producers. "We've found a lot of the prices domestic companies are going for to be very pricey," Buckee said. "We've refrained from the feeding frenzy." Instead of looking in North America for acquisitions, Talisman may concentrate on looking internationally, Buckee indicated. The company produced an average of 233,351 barrels of oil and liquids a day from its properties worldwide last year, up 54 per cent from 1999. The increase resulted from higher production at its North Sea and Sudanese properties. Gas production rose nine per cent last year , mostly on gains from its Canadian holdings, to 988 million cubic feet a day. Buckee said the company expects oil output to increase 10 per cent to 15 per cent this year, while its Canadian gas output should increase five per cent. Talisman shares rose $1.10 to a record close of $60.25 on the Toronto Stock Exchange. The shares have risen 65 per cent in the past year. calgaryherald.com