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Newfield Exploration (NFX) Beats on Q4 Earnings, Revenues

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.

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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.

Operational Performance

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.

Financials

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%.

Reserves Replacement

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

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

Guidance

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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Holly Energy Partners, L.P. (HEP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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