02/10/2015 05:38 EST | Updated 04/12/2015 05:59 EDT

Talisman Energy posts US$1.59 net loss, says Repsol deal on track to close in Q2

CALGARY - Talisman Energy Inc., which expects to soon be taken over by Spain's Repsol SA, posted a US$1.59 billion net loss during the fourth quarter.

The loss during the final three months of 2014 mainly came as a result of writedowns the company had to book after the slumping price of oil took its toll.

In total, Talisman took $1.37 billion in charges during the quarter, including in the Eagle Ford shale in Texas, the northern Iraqi region of Kurdistan, the North Sea and Colombia.

The net loss amounted to $1.54 per share, compared with a loss of $1 billion, or 98 cents a share a year earlier.

Talisman's loss from operations was $143 million in the fourth quarter compared with a loss of $116 million in the same period of 2013.

Its cash flow for the quarter was $508 million, down from $580 million a year earlier.

Like other major oil and gas producers, Talisman's share price dropped significantly after crude oil prices began to drop sharply in late November.

In mid-December, Talisman agreed to be purchased by Repsol in a deal worth about $13 billion — $8.3 billion for Talisman stock plus the assumption of its debt.

On Tuesday, the company said the deal was on track to close some time between April and June. Both companies have said they don't foresee a problem in obtaining Ottawa's approval. Repsol is not a state-owned entity and Talisman's assets are largely located outside of Canada.

"Talisman's assets and people will have an important place in the combined enterprise, as we will roughly double Repsol's upstream business," said Talisman CEO Hal Kvisle.

"Repsol is dedicated to maintaining a strong commitment to Canada and the local and regional economies in which Talisman operates globally."

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