Talisman Energy Inc. About Us Operations Investors News Corporate Responsibility HSE Careers About Us "Talisman made solid progress in 2013, committing to strong and focused operations and well-managed capital programs in the Americas and Asia-Pacific. We delivered better operating margins at most of our producing assets and executed our capital programs to a high standard. As always, the safety of our employees and contractors remains our highest priority, and we delivered continuous improvement on each of our safety metrics." Hal Kvisle, President and Chief Executive Officer 2013 was a turnaround year for Talisman. We reduced capital spending by 20%, lowered our G&A run-rate by 20%, and transitioned to a leaner and more focused organizational model. Our 2013 targets were met, and programs for further improvement in our competitive position are underway; these are key elements of our 2014 business plan. ‘Safer, better, faster and at lower cost,’ underpin Talisman’s commitment to operational excellence. They became the theme of our 2013 programs, and I am deeply grateful to our leaders and employees who have seized the opportunity to help make Talisman a more competitive company. The transition from a global company to a two-region development driven company, with a strong focus on profitable, well managed operations is underway. We are excited by our two core regions of the Americas and Asia-Pacific, which offer excellent opportunities for growth and value creation. In each, our existing operations, technical expertise and business relationships give us competitive advantage. To guide our efforts, we established four priorities that will make Talisman a more effective and competitive company. Live within our means First, we will live within our means. Costs in all parts of the energy value chain have risen dramatically in recent years, and exploration and development programs must be tightly managed and well executed. Talisman made the commitment to live within its means more than a year ago. We are now on the path to achieve this and see many of our competitors trying to do the same. We remain challenged by prior capital commitments outside our core regions, and are making progress to reduce these. Focus our capital program Second, we will focus our capital programs on the best opportunities within our core regions. During 2013, we invested in North American liquids-rich production, reduced dry gas spending and exited a number of properties where investment opportunities did not meet our requirements. In Colombia, we declared commerciality3 and initiated an attractive oil development program on the Akacias field in Block CPO-9. In Vietnam, we brought the HST/HSD oil development on production, under budget and ahead of schedule. These are just two examples of the focused capital opportunities available to Talisman within its two core regions. Improve operational performance and reduce cost structure Third, we made a strong commitment to operational excellence, running all aspects of our business in a lean, efficient and common-sense way. We reduced drilling and completion costs by 16% in the Eagle Ford, 13% in the Marcellus and 9% in the Duvernay shale plays, driven by a 15-25% reduction in drilling cycle times and similar improvements in well stimulations. We elevated our operating performance substantially, and we did so safely, with improved environmental performance. Unlock net asset value of the portfolio Fourth, we will unlock the value of assets whose current or potential value is not reflected in our share price. In 2013, we divested more than $2 billion of assets that would not deliver shareholder value over the medium term, and we intend to divest a further $2 billion of long dated, capital intensive assets over the next 18 months. The Americas and Asia-Pacific represent the heart of Talisman. They are strong businesses, offering sustainable cash flows and profitable growth. We will continue to strengthen both core regions by focusing the majority of our capital on high netback, long-life opportunities that bring further options for growth in the years ahead. In parallel, we will explore all options to dilute or exit our North Sea positions and reduce the capital drain of non-core commitments. Talisman is emerging as a stronger, more predictable company with better opportunities for profitable growth. I’d like to thank my Talisman colleagues in all parts of the company for their commitment and tireless efforts – they deserve credit for the progress we made in 2013. Hal Kvisle President and Chief Executive Officer March 3, 2014 About Us Our Strategy President's Message Management Governance Contact Us Feedback Form Talisman Energy Inc. Suite 2000, 888 - 3 Street SW Calgary, Alberta Canada T2P 5C5 Tel: +403 237 1234 Fax: +403 237 1902 tlm@talisman-energy.com BEST 50 CORPORATE CITIZENS Talisman recognized for Corporate Responsibilty ANNUAL REPORT Read our 2013 Annual Report NEWS RELEASES Read our latest news release. ALERTS EVENTS FEEDBACK REQUEST INFORMATION © 2014 Talisman Energy Inc. Legal Notice - Privacy Statement - Americas/SEA Employee Portal Login