Newfield Exploration Co.NFX reported adjusted fourth-quarter 2016 earnings of 49 cents per share that beat the Zacks Consensus Estimate of 38 cents. The bottom line also came above the year-ago quarter profit of 30 cents. The growth is attributable to superior performance by the Anadarko Basin.
The company's total revenue improved from $362 million in the year-ago period to $415 million and also surpassed the Zacks Consensus Estimate of $401 million.
During the quarter, total production came in at 13.9 million barrels of oil equivalent (MMBoe), comprising 44% oil, 18% natural gas liquids (NGLs) and 38% natural gas. This was lower than 14.9 MMBoe in the year-ago quarter.
Natural gas volumes totaled 31.5 billion cubic feet. Oil, condensate and NGLs volumes came in at 8.6 million barrels.
Newfield's fourth-quarter oil and natural gas price realizations averaged $31.27 per barrel of oil equivalent against $33.61 per barrel in the year-ago quarter.
Natural gas prices were $2.37 per thousand cubic feet, oil prices were $48.59 per barrel and NGLs prices were $23.65 per barrel.
At the end of the quarter, Newfield had cash balance of $555 million. Long-term debt was $2,431 million, which represents a debt-to-capitalization ratio of approximately 72.2%.
At the end of 2016, oil and gas proved reserves were 513 million barrels of oil equivalent (MMBoe), up 0.8% from 2015. In 2016, the company added 77 MMBoe of proved reserves.
Newfield Exploration Company Price, Consensus and EPS Surprise
For 2017, Newfield estimates output of 148.2-151.5 MMBoe/d. The company now expects capital spending of $1 billion, of which 85% is apportioned to the Anadarko Basin. For the first quarter of 2017, the company expects production of 138.5-141.7 MMBoe/d.
Zacks Rank and Key Stock Picks
Newfield currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include W&T Offshore Inc. WTI , Holly Energy Partners LP HEP and Sunrun Inc. RUN . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the trailing four quarters, with an average positive earnings surprise of 31.49%.
Holly Energy Partners posted a negative earnings surprise of 23.26% in the preceding quarter. It delivered an average negative earnings surprise of 0.96% in the trailing four quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in each of the trailing four quarters with an average positive earnings surprise of 134.71%.
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