The ratings on Calgary, Alta.-based Talisman Energy Inc. reflect Standard&Poor's Ratings Services' opinion of a well-diversified portfolio of upstream assets, a significant amount of production tied to oil prices, and a history of fairly moderate financial policies. The ratings also incorporate our view of the risks associated with ongoing exploration and production activities to offset conventional production declines and a cost structure that remains elevated relative to that of peers despite recent improvements. Talisman's portfolio of assets focuses on North American shale gas, deepwater fields in the North Sea and Southeast Asia, as well as a portfolio of global exploration activities. The company averaged daily production (after royalties) of about 359,000 barrels of oil equivalent (boe) for the
