It has been about a month since the last earnings report for Newfield Exploration Company (NFX - Free Report) . Shares have lost about 7.3% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is NFX due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Newfield Exploration Company reported adjusted first-quarter 2018 earnings of 82 cents per share that beat the Zacks Consensus Estimate of 71 cents. The bottom line improved from the year-ago quarter’s earnings of 57 cents.
The company’s total revenues rose to $580 million from $417 million in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $556 million.
Higher production and increased realizations for oil and gas prices primarily led to the outperformance.
During the quarter, total production was 15.9 million barrels of oil equivalent (MMBoe), comprising 42% oil, 20% natural gas liquids (NGLs) and 38% natural gas. The company had recorded total production of 13.1 MMBoe in the year-ago quarter.
Natural gas volumes totaled 36.1 billion cubic feet and surpassed the Zacks Consensus Estimate of 35.7 billion cubic feet. Oil, condensate and NGL volumes were 9.9 million barrels, which exceeded the Zacks Consensus Estimate of 9.75 million barrels. This was mainly due to higher volumes from the Anadarko Basin.
Newfield’s oil and natural gas price realizations averaged $36.38 per barrel of oil equivalent against $33.55 per barrel in the year-ago quarter.
Natural gas prices were $2.70 per thousand cubic feet, oil prices were $58.36 per barrel and NGLs prices were $28.04 per barrel.
At the end of the quarter, Newfield had cash balance of $196 million. Long-term debt was $2,434 million. Debt-to-capitalization ratio was approximately 61.8%.
For 2018, Newfield estimates output of 175–185 MBoe/d. For 2018, lease operating expenses are expected at $3.43 per barrel of oil equivalent, while general and administrative expenses are pegged at $3.44 per barrel of oil equivalent.
Also, the company expects its 2018 capital spending guidance at $1.3 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been eight revisions higher for the current quarter compared to one lower.
At this time, NFX has a strong Growth Score of A, a grade with the same score on the momentum front. The stock was also allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value, growth and momentum investors.
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. Notably, NFX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.