Trip Advisor (TLM) reported Q413 CFPS of $0.56, ~3% lower than our estimate of $0.58 but in line with consensus of $0.56 based on a company survey of analysts. Quarterly production of 387 mboe/d was slightly lower than our estimate of 393 mboe/d and consensus of 389 mboe/d. Operating EPS of ($0.11) was lower than our estimate of ($0.03) and consensus of $0.01, and included a higher DD&A charge to reflect reserve revisions at certain UK fields. Headline EPS of ($0.98) was impacted by non-cash, non-recurring impairment charges impacting North American conventional dry gas properties and assets in the North Sea.

TLM also provided a 2014 budget of $3.2 billion, flat y/y and largely in line with street expectations of approximately the same amount and our forecast for ~$3 billion. Post dispositions, the budget is expected to support production from continuing operations in the range of ~350-365 mboe/d, a 2-6% increase over 2013. The company also projected cash flow growth of ~5% to $2.3 billion, inclusive of a further G&A reduction target of 10%, following G&A reductions of 20% in 2013.

The company achieved $2.2 billion of asset sales in 2013 and Q114 (including recent sale of Monkman gas – 75 mmcf/d). Going forward the company is targeting an additional $2 billion over next 12-18 months of non-core, capital intensive and longer dated assets in effort to continue streamlining the portfolio. As a reminder, the company has a sale process going on for its Norwegian business unit and is seeking a partner for its Duvernay acreage, where six wells are planned for 2014, as the company continues to appraise its extensive land position (TLM will drill its first multi-well pad in the southern part of the play). Kurdistan (Topkhana) farm-down and sale of Marcellus midstream, among other options, are also being contemplated.