Talisman Energy Inc. is seeking $2 billion to $3 billion from asset sales or joint ventures in the next 12 to 18 months as the company works to reduce debt and cut spending on natural gas production.
Talisman is “actively marketing North Duvernay shale and parts of the Montney,” the Calgary-based company said in a statement today. It’s also seeking a buyer for $1 billion to $1.5 billion in international assets. Proceeds may be used to reduce debt, fund short-term development or repurchase shares, the company said.
“We are quickly moving to strengthen and focus our company by imposing strict capital discipline, increasing the cash margins on the barrels we produce, and unlocking value through asset sales or strategic joint ventures,” Chief Executive Officer Hal Kvisle said in the statement. “We will be less reliant on asset sales to fund core capital programs in 2013.”
Talisman’s 2013 capital budget will be $3 billion, 25 percent less than last year, with 90 percent of the spending going to liquids and international gas projects. Cash flow is expected to be about $2.5 billion this year.
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