The ratings on Calgary, Alta.-based Talisman Energy Inc. reflect Standard&Poor's Ratings Services' view of the company's satisfactory business risk profile and intermediate financial risk profile. The ratings reflect our opinion of a well-diversified portfolio of upstream assets, a significant amount of production linked to high oil prices, and financial flexibility. The ratings also incorporate Talisman's operations in a highly volatile industry and an elevated cost structure, relative to that of peers, despite recent improvements. Talisman's is an exploration and production (E&P) company whose portfolio of assets includes offshore fields in the North Sea (25% of 2011 gross production) and Southeast Asia (28%), onshore North America (41%) that includes unconventional shale plays, and an inventory of global exploration assets.
