NEW YORK (AP) -- Shares of Talisman Energy Inc. surged more than 5 percent Wednesday after the oil and gas company reported a decline in second-quarter net income but still beat analysts' forecasts for revenue.
Talisman, based in Calgary, Alberta, earned $196 million, or 19 cents per share, compared with $698 million, or 68 cents per share, a year earlier. It blamed the lower results on falling oil and gas prices, with higher operating expenses and declining asset values.
Earnings from operations were $71 million, or 7 cents per share, compared with $168 million, or 16 cents per share, in the year-ago quarter.
Revenue fell to $1.87 billion from $2.23 billion.
Analysts expected a profit of 8 cents per share on revenue of $1.85 billion.
Total production was up 4 percent in the period compared with a year ago, due to higher oil and gas volumes in Southeast Asia and from North American shale. But falling prices more than offset that growth. Benchmark crude prices dropped about 9 percent in the spring quarter, and natural gas prices were down by 48 percent.
Talisman has agreed to sell a 49 percent stake in its North Sea operations to China's Sinopec for $1.5 billion. Talisman will use $500 million for share repurchases.
Talisman shares rose 69 cents, or 5.6 percent, to $13.06 in afternoon trading.