Canadian energy explorer Talisman Energy Inc . ( TLM ) reported weaker-than-expected fourth quarter results, hampered by depressed natural gas prices. Earnings per share from continuing operations, excluding one-time items, came in at 7 Canadian cents (7 cents), below the Zacks Consensus Estimate of 14 cents and the year-ago earnings of 49 cents. However, revenue of C$1.2 billion was up 2.9% from the fourth quarter 2008 level. Earnings Surprise Trend It was the company’s third negative earnings surprise in the past four quarters. Talisman has performed poorly during this period, with its average earnings surprise being -27.0%. This implies that the company has missed the Zacks Consensus Estimate by 27.0% over the last four quarters. Volume Analysis Total production during the quarter was down approximately 2.1% from the year-ago level to 423 thousand barrels of oil equivalent per day (MBOE/d), reflecting asset sales. However, production from continuing operations rose 2.7% year-over-year to 418 MBOE/d. Oil & liquids production during the quarter was down 10.6% to 203 thousand barrels per day (MBbl/d), or 49% of total volumes. Volumes in North America, the U.K., Scandinavia, and other international regions were down 29.3%, 17.7%, and 33.3% to 29 MBbl/d, 79 MBbl/d, and 14 MBbl/d respectively. Oil & liquids production from Scandinavia and Southeast Asia were, however, up 11.8% and 22.9% to 38 MBbl/d and 43 MBbl/d, respectively. Talisman’s fourth quarter natural gas volumes were up approximately 7.5% to 1.3 billion cubic feet per day (Bcf/d). Production was down approximately 5.0% to 787 million cubic feet per day (MMcf/d) in North America and 68.3% in the U.K. to 13 MMcf/d. But volumes were up significantly in Scandinavia (from 19 MMcf/d to 100 MMcf/d), while it increased 23.5% in Southeast Asia to 420 MMcf/d. Realized Prices During the quarter, the company’s realized commodity prices were up 14.6% from the year-ago quarter to C$55.51 per barrel of oil equivalent (BOE), reflecting rebounding oil prices across the board. Overall natural gas prices decreased approximately 21.8% year over year to C$5.61 per Mcf. In North America, unit realization declined 32.8% to C$4.86 per Mcf. Natural gas prices were down 58.5% in the U.K and 40.9% in Scandinavia to C$4.41 per Mcf and C$4.99 per Mcf, respectively, while Southeast Asia experienced a 10.1% increase in realized prices to C$7.19 per Mcf. Oil & liquids realizations averaged C$79.18 per barrel, up 48.4% from the year-ago level. Prices realized in North America, U.K., Scandinavia, and Southeast Asian regions were C$64.24 per barrel (up 24.1% year over year), C$78.78 per barrel (up 35.6%), C$77.61 per barrel (up 31.4%) and C$84.26 per barrel (up approximately 130.0%), respectively. Acreage Addition Talisman added 170,000 acres of properties in Pennsylvania’s Marcellus shale region and 80,000 acres in the Montney region of British Columbia, thereby increasing its number of net drilling locations to 4,800. Cash Flows & Capital Expenditure Cash flows from continuing operations during the quarter totaled C$930 million, down 37.8% from the year-earlier quarter, while the company spent C$1.4 billion on exploration and development activities. Balance Sheet At the end of the quarter, Talisman had cash and cash equivalents of approximately C$1.7 billion and long-term debt of C$3.8 billion. Read the full analyst report on "TLM" Zacks Investment Research