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Newfield Exploration (NFX) Beats on Q3 Earnings & Revenues

Newfield Exploration Co’s NFX reported adjusted third-quarter 2017 earnings of 52 cents per share that beat the Zacks Consensus Estimate of 43 cents. Nonetheless, the bottom line surpassed the year-ago quarter’s profit of 24 cents. The outperformance is attributable to higher oil and gas price realizations as well as excellent performance of Anadarko Basin wells.

The company’s total revenues improved from $392 million in the year-ago period to $439 million, while it beat the Zacks Consensus Estimate of $419 million.
 

Newfield Exploration Company Price, Consensus and EPS Surprise

 

Newfield Exploration Company Price, Consensus and EPS Surprise | Newfield Exploration Company Quote

Operational Performance

During the quarter, total production totaled 14.9 million barrels of oil equivalent (MMBoe), comprising 42% oil, 22% natural gas liquids (NGLs) and 36% natural gas. This was lower than 15.2 MMBoe in the year-ago quarter.

Natural gas volumes totaled 32 billion cubic feet. Oil, condensate and NGLs volumes were 9.5 million barrels.

Newfield Exploration’s third-quarter oil and natural gas price realizations averaged $30.61 per barrel of oil equivalent as against $28.74 per barrel in the year-ago quarter.

Natural gas prices were $2.52 per thousand cubic feet, oil prices were $45.80 per barrel and NGLs prices were $25.72 per barrel.

Financials

At the end of the quarter, Newfield Exploration had cash balance of $428 million. Long-term debt was $2,433 million, which represents a debt-to-capitalization ratio of approximately 65.1%. Per Zacks Consensus Estimate, the average NGL prices were $23.52 per barrel.    

Guidance

For 2017, Newfield Exploration has increased its estimated output to 154.7-158.7 MBoe from 149.4–157.8 MBoe. The increase is mainly due to increase in mid-point of domestic production to 152 MBoe per day from 149.6 MBoe per day. The company now expects year-over-year domestic production growth at about 9-10%. The company projects LOE at $3.84 per Boe. It also expects production and other taxes at $1.04 per Boe. General and administration expenses are estimated at $3.59 per Boe.
    
Q3 Price Performance

The pricing chart reveals that the company’s shares have underperformed the industry in the last three months. During this period, the company’s shares have gained 4.2% compared with the industry’s rally of 5.1%.

Zacks Rank

Currently, Newfield carries a Zacks Rank #2 (Buy). A few other top-ranked players in the energy sector include Northern Oil and Gas Inc NOG, ConocoPhillips COP and Noble Midstream Partners LP NBLX. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered earnings surprise of 100.00% in the preceding quarter.

ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. It delivered an average positive earnings surprise of 152.34% in the last four quarters.

Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.

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Newfield Exploration Company (NFX): Free Stock Analysis Report
 
Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report
 
Noble Midstream Partners LP (NBLX): Free Stock Analysis Report
 
ConocoPhillips (COP): Free Stock Analysis Report
 
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