The ratings on Calgary, Alta.-based exploration and production (E&P) company Talisman Energy Inc. reflect Standard&Poor's Ratings Services' view of the company's satisfactory business risk profile and intermediate financial risk profile (as per its criteria). More specifically, the ratings reflect our view of a well-diversified portfolio of upstream assets, a significant amount of production linked to high oil prices, and financial flexibility. We believe the weaknesses associated with Talisman's limited production and reserves growth, and an elevated cost structure relative to that of peers (despite recent improvements) somewhat offset these strengths. The company's portfolio of assets includes offshore fields in the North Sea, Southeast Asia, and onshore North America (including unconventional shale plays), in addition to an inventory of
