Current TLM Stock Info

Looming mergers and acquisitions is a popular debate in the sub-$60 oil market, and Spain’s Repsol (ticker: REPYY) made the first splash with the US$13.0 billion acquisition of Talisman Energy (ticker: TLM) on December 16, 2014. The deal includes $8.3 billion in shares, acquired entirely through cash, and the assumption of TLM’s debt of $4.7 billion. The deal includes a $270 million termination fee payable to TLM if the transaction is not completed.

Repsol Chairman Antonio Brufau said: “This is a transformative and exciting deal which will m...

Analyst Commentary

Raymond James Research (12.16.14)

Based on Talisman's reported reserves at year-end 2013, Repsol is paying $15.4/bbl (1P basis) or $10.4/bbl (2P basis) and the price looks consistent with a $90/bbl Brent long-term oil price assumption. While the acquisition gives Repsol more OECD exposure and operatorship capabilities, given Talisman's variety of assets and lack of portfolio consistency, we do not view this transaction very positively, but we give credit to Repsol's management for taking a patient approach (Repsol is paying about 25% less than it would have last July when press reported a potential C$12 per share offer).  

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