"I am talking with my friends."
Translation:Yo estoy hablando con mis amigos.
Yes that is true but let me explain the second word after the conjugated 'Estar' is the present participle in English it is -ing as here. In Spanish -ar verbs go to -ando and -er and -ir go to -iendo. So hablando here from hablar. Very straightforward. But remember what the previous commenter said (sorry, was it Balwinder? I can't see at moment) about its precise "right now" usage.