Talisman Energy May Sell A Stake In Duvernay Gas Resources - Analyst Blog

As per media reports, Canadian energy explorer, Talisman Energy Inc. TLM is now in an initial stage of discussion with PT Pertamina – an Indonesian state-owned energy company – to sell a stake at its Alberta-based Duvernay shale gas resources. With the investment in Duvernay shale development, Pertamina will explore oil and gas properties in Canada for the first time.

Talisman Energy's plan to divest its Duvernay asset reflects its intention to get rid of those properties that do not fit into its long-term growth plan. Over the last few years, Talisman Energy has been selling non-core oil and gas properties around the world, thereby freeing up capital to concentrate on its growth projects and pay off the pending debt. Talisman Energy sold assets worth $2.0 billion in 2013 and also targets the divestiture of more non-core resources in the coming 18 months to generate another $2.0 billion.   

Calgary, Alberta-based Talisman Energy is a major independent oil and gas exploration and production (E&P) company, with operations in North America (primarily Canada) and several international regions.

We like Talisman Energy for its solid base business in Western Canada and in the U.K. North Sea, while offering exposure to some of the most prospective unconventional natural gas plays in North America and high-impact exploration prospects worldwide.

The company currently carries a Zacks Rank #2 (Buy), which implies that it is expected to outperform the broader U.S. equity market over the next one to three months.

One can also consider players in the same industry like Canadian Natural Resources Limited CNQ, Crescent Point Energy Corp. (CPG) and Bellatrix Exploration Ltd. BXE. All these stocks carry the same Zacks Rank as Talisman Energy.