Newfield Exploration Co. (NFX)

Newfield Exploration (NFX), based in Houston, Texas, is an independent energy company engaged in the exploration and production (E&P) of crude oil and natural gas. In an asset-diversification strategy, management has turned what was once an exclusive concentration in the Gulf of Mexico into a balanced portfolio.

We are downgrading Newfield shares to Sell from Buy to reflect the company's weak competitive position in the current unfavorable macro backdrop. We believe that the Newfield asset portfolio centered around the Rockies and Gulf Coast regions are lacking in a meaningful exposure to the emerging shale plays.

Thus, it is not suited for the current environment of low commodity prices and restricted access to capital. We have also reduced our estimates to reflect a lower commodity price deck.

Newfield Exploration Co. (NFX) : FULL ANALYST REPORT

Read the full analyst report on NFX