This article was originally published by TheStreet on April 17, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- It sounds strange but Talisman Energy (TLM_) is eying growth by shrinking its asset base.
Talisman is one of the leading independent oil and gas producers from Canada. Billionaire activist investor Carl Icahn of Icahn Enterprises (IEP_) owns 7.4% of the company. Talisman has delivered a poor performance at the stock markets; its shares have dropped by 9.8% over the last 12 months and closed at $10.65 on Wednesday. Over the last two years, Talisman has not reported any revenue or earnings growth.
All of that, however, can change in the near future. Amid the management shuffle, with the entry of Icahn's representatives on the board and a CEO change due in the current year, the company is readjusting its portfolio. Talisman is selling its non-core assets and investing heavily in its high value projects in the Americas and Asia Pacific. The company's lucrative assets in Southeast Asia and its oil-rich acreage in Colombia can drive its growth over the coming years.
