Large asset impairments — in Talisman’s case they contributed to a US$1.6-billion loss for the fourth quarter, compared to a loss of US$1-billion in the year-ago period — are a big theme this results season as low energy oil prices make oil and gas properties less valuable.
Talisman said it took a US$633-million impairment on its North Sea joint venture with China’s Sinopec Group, whose mature assets have low earnings potential at low oil prices, while facilities face large decommissioning costs.
Talisman’s large financial obligations to the joint venture, negotiated by previous CEO John Manzoni, now head of the British civil service, depressed its share price and hampered the senior oil and gas producer’s efforts to restructure itself or find a corporate buyer. The partnership announced 300 layoffs last month.
In addition, Calgary-based Talisman wrote off its North Sea goodwill balance of US$287 million; took a partial, US$617-million impairment on the Eagle Ford shale play in the United States; fully impaired its investment in Block K44 in the Kurdistan region of Iraq by US$234 million after determining that future investment in a capital constrained environment was unlikely; and partially wrote down its investment in the Equion joint venture with Colombia’s Ecopetrol SA by US$133 million.
Talisman, which warned late last year that it expected substantial writedowns, accepted an offer from Repsol at US$8 a share, or US$8.3 billion excluding debt, in mid-December.
Repsol started negotiations to take over Talisman last spring, but twice backed away from its own proposals over concerns about the North Sea and as low prices kept declining.
Hal Kvisle, president and CEO, said the results show Talisman’s strategy of reducing costs and focusing its operations into two main areas, the Americas and the Asia Pacific, was bearing fruit.
“Our 2014 results reflect the significant progress we made throughout the year to improve the reliability and predictability of our company, ” he said in a statement.
where technology meets business? why engineering is interesting? which products sell the most on amazon? what startup costs are deductible? whose an entrepreneur? where design definition? how many manager in bank? where to set up home office? how much design for architect? founder of startup company? how many solution calculator? how to meet startup founders? why startups are important? how much solution for vax carpet cleaner? entrepreneur who is skeptical? who owns positive solutions? where development length is provided? how startup investment works? where to business listing? why entrepreneurs fail? how far london to ireland? which manager has been sacked the most? who is solution architect? when product patent started in india? when manufacturing overhead is applied to production it is added to? who science council? what startup selection should i use? whose system does tello use? whose product is mysql? which workers are designated as special risk? how many design styles are there? how much teaching course at unisa? how product managers work with designers? who devised the fundamental constitutions of carolina? which manufacturer makes the best tv? who company makes rheem air conditioners? teaching where it matters? why system variables are not editable? how much phone samsung? what entrepreneur should i be? how many company in usa? how many design principles are there? what entrepreneur qualities? whose de? where to find device manager on laptop? where to solve math problems? how much starting money in monopoly? how much system in human body? how to device manager? what solutions are hypertonic? how many product managers? how much equipment has lost to date? how much design freelance? who technology transfer ppt? where is solution explorer? who system thinking? where to find device id on iphone? yg teck? where technology is headed? how manufacturer distribute their products? where is bio tech from? how much business credit can i get? where to watch science fell in love? when system is inconsistent? who technical officer? where is devices? how much technology is used daily? how to do roadmap? how tech savvy are you? whose system does tello use? how many startups are there in india? why london is a good place to live? how many products does 3m make? how many workers does disneyland have? why solutions class 4? who roadmap 2030? where to find engineering jobs? how much design patent cost? how much system storage is normal on mac? how much system unit? what startup services can i disable? where to get workers compensation insurance? how far phone from eyes? where do production engineers work? how many product managers? where are you from teaching ideas? what design is on each oreo? how many system calls are there in linux? who manufacturer maruti suzuki engine? how to find device without location? which teaching jobs are in demand? why design matters? how entrepreneur works? how product management works with ux? how science works flowchart? which company owns bugatti? where to buy cars from manufacturer? how much system 7 toto? how to use far manager? how often answers? when project price should be discussed? how many development cards in catan per turn? what workers have the worst jobs? why device manager can't open? from where was solar system originated? how many system calls are there in linux? where is mondo from project runway? how many products does apple have? how much solution for hoover carpet cleaner? how much teaching assistant earn? who product catalogue? how many management are there? why device is not compatible? where to engineer fsd? how business works? where teachers get paid the most? how long does solution finish last? how long project baseline results? when device is locked meaning in hindi? where to set up an llc? how much equipment for ice cream? manufactured home? who developed python? how design magazine? which solution is the positive control? how much businessman earn? device locations? why teaching to the test is bad? why device left astralis? where is solution explorer in visual studio? how often is continuously? where project nasa? when management wants you out? how development is measured? which design is seen in the gummersmark brooch? startup show? why london is the capital of the world? where is chelsea manager from? whose product is mysql? why science diet is bad? when development proceeds in a stepwise fashion? which engineering is best? which business development increases cash? what solution best completes the chart? who product catalogue? why design matters debbie millman? who devised the trojan horse? teaching where are you from? where's the london eye? how much development is important for a country? startup where is izzy? where to manage amazon credit card? when company of heroes 3? how many solutions calculator? where to buy science equipment? how many solution calculator? what project manager do? why entrepreneurs are bad at relationships? how many design styles are there? where to solve programming problems? why startup repair windows 7? how far phone from eyes? what development contributed to the growth of agriculture? which engineering is best? roadmap to or roadmap for? roadmap meaning? how often can you use stim? where to manage icloud storage? founder of startup company? what equipment is at planet fitness? which london airport is closer to the city? how london underground was built? how much product to use in hair? where are cruise workers from? where to find system ip address? how entrepreneur start a business? how much solution to put in vax carpet cleaner? who developed the polio vaccine? which science is the most important? where to check company registration? how management works? who design the eiffel tower? which system of equations is consistent and dependent? why technological advancement become harmful? how many design principles are there? how often is continuously? where from your's teacher? how start up a small business? how much solution to use in vax platinum? how many manager in hotel? when tech bubble burst? where civil engineering work? where to find device manager? who science father? whose company i enjoy? what equipment is required to be on a trailer? why design matters book? how science and religion work together? where is texas tech from? who system design? how far phone from bed?