Diversified portfolio of assets across geography and asset type Deep inventory of drilling locations that should allow for multiyear production growth Moderate financial policy Elevated cost structure relative to those of similarly rated peers Exploration and development risks associated with growth projects The ratings on Calgary, Alta.-based Talisman Energy Inc. reflect Standard&Poor's Ratings Services' opinion of a well-diversified portfolio of upstream assets, the growth potential inherent in the company's undeveloped acreage, and a history of fairly moderate financial policies. We believe that partially offsetting these strengths are 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
