Talisman Energy - Competitor Review
This report reflects the research and analysis I've performed on this company. It is provided for informational purposes only and does not constitute personalized financial advice nor an endorsement or solicitation to purchase stock in this or any other company. Please do your own due diligence or hire a financial advisor before making any investment decisions.- Talisman Energy research report written 08/23/2007
- Risk Detail
- Possible Upside
- Competitor Review
- Valuation and Assessment
- Management & Performance Targets
EnCana – refocused on Canadian oil sands projects and North American natural gas
- Pros
- Huge gas wells drilled in the Deep Bossier region of TX
- Partnering with ConocoPhillips in the oil sands play
- Cons
- Oil sands subject to significant cost overruns
- Rockies exposure not ideal
Devon Energy - attractively valued but paying more for revenues; more balanced gas/oil portfolio
- Pros
- Barnett Shale holdings should provide stable reserves replacement for years
- good net margins
- More exposure to oil in Gulf of Mexico
- Cons
- Growth primarily through acquisitions ($5.5 billion in goodwill)
- Riskier exploration plays (10,000 feet deepwater Jack project, Brazilian offshore, etc).
- Jackfish oil sands project in Alberta subject to oil sands difficulties (higher costs, nat. gas and water shortages, etc)
- Lower ROIC than peers
- Production was down 4.3% in 2006
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