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Newfield Exploration (NFX) Q1 Loss Narrower than Expected

Newfield Exploration Co.NFX reported adjusted first-quarter 2016 loss of 9 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents by 10%. The company had reported adjusted profit of 3 cents per share a year ago. The year-over-year decline was due to lower oil and gas prices.

Newfield Exploration Company (NFX) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

The company's total revenue plunged 18.6% year over year to $284 million and also lagged the Zacks Consensus Estimate of $317.0 million.

Operational Performance

Total quarterly production of 15.2 million barrels of oil equivalent (MMBoe) comprised 46.1% oil, 16.4% natural gas liquids (NGLs) and 37.5% natural gas.

Natural gas volumes amounted to 34.4 billion cubic feet (Bcf). Oil, condensate and NGLs volumes came in at 9.5 million barrels (MMBbls).

Newfield's first-quarter oil and natural gas price realizations (including the effect of hedges) averaged $24.46 per barrel of oil equivalent (Boe). Natural gas prices were $2.18 per thousand cubic feet (Mcf), oil prices were $36.82 per barrel, and NGLs prices were $14.75 per barrel.

Recurring lease operating expenses ("LOE") were $3.84 per Boe. Production and other taxes were 65 cents per Boe, while general and administrative expenses totaled $2.94 per Boe.

Financials

At the quarter end, Newfield had cash balance of $537.0 million. Long-term debt was $2,429.0 million, which represents a debt-to-capitalization ratio of approximately 61.2%.

Guidance

For 2016, Newfield anticipates output in the range of 54.5-56.5 MMBoe. The company also projects LOE at $254 million, while production and other taxes of $46 million are expected. General and administration expenses are estimated at $172 million. The company anticipates capital expenditure for the year in the range of $625-675 million.

Zacks Rank and Key Stock Picks

Newfield Exploration currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Bonanza Creek Energy, Inc. BCEI , Evolution Petroleum Corp. EPM and EXCO Resources Inc. XCO . Each of these stocks holds a Zacks Rank #2 (Buy).

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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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