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Actionable news in NFX: NEWFIELD EXPLORATION COMPANY,

Why Newfield Could Thrive During The Current Downturn In Oil

Williams Capital initiated coverage on Newfield Exploration Co. NFX 1.77% with Buy Rating and $58 price target.

The analysts believe the company will thrive through the current downturn, given its strong balance sheet (2.1x net debt/EBITDA at YE16), ample financial liquidity (around $2.4 billion, pro forma for equity) and a strong hedge book.

"However, considering its tremendous stacked-pay resource potential in the Anadarko Basin, we believe shares deserve a aluation closer to the Permian Basin players," wrote the analysts, adding they expect the valuation gap to narrow as the company moves towards development mode, with improving capital efficiencies.

The $58 price target implies 2017 and 2018 EV/EBITDA metrics of 11.6x and 7.5x, respectively.

DateFirmActionFromTo
Aug 2016Williams Capital GroupInitiates Coverage onBuy
Aug 2016CitigroupMaintainsNeutral
Aug 2016BarclaysDowngradesOverweightEqual-weight

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