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Newfield Exploration (NFX) Beats on Q4 Earnings, Revenues

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Newfield Exploration Co. 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.

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 - Free Report) , Holly Energy Partners LP and Sunrun Inc. (RUN - Free Report) . 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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