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Newfield Estimates 15% Growth in Year-End Proved Reserves

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Newfield Exploration Company estimates proved reserves as of 2018-end at more than 780 million barrel of oil equivalent (MMBOE), per an update provided at the Goldman Sachs Energy Conference.

The year-end proved reserves reflect a year-over-year increase of approximately 15% and Anadarko Basin primarily contributed to it. Newfield estimates proved reserves from the Anadarko Basin to increase to more than 545 MMBOE, reflecting an increase of 118 MMBOE. Notably, the prolific Anadarko Basin contributes to roughly 70% of the total proved reserves of the upstream energy player.

Most importantly, with its estimated fresh reserve additions, Newfield has managed to replace 240% of its production volume through 2018. Further, the company has valued its reserve life index at roughly 11 years.

Along with proved reserves estimations, Newfield has provided other operational updates. The company anticipates net fourth-quarter 2018 production from domestic operations to meet the high end of its projected range of 185 to 200 thousand barrels of oil equivalent per day (MBOE/D). In fact, from the Anadarko Basin, Newfield expects fourth-quarter production of liquids to exceed the high end of its anticipated range of 80 to 86 thousand barrels per day (MBbl/D).

Newfield added that it invested $1.4 billion of capital though 2018, flat with the company’s guidance.

Headquartered in The Woodlands, TX,Newfield is a leading explorer and producer of oil and natural gas with presence mostly in onshore domestic plays. Since almost 61% of the Newfield’s production volumes comprise liquids, the weak oil pricing scenario is hurting the company’s operations.

As a result, the stock currently carries a Zacks Rank #5 (Strong Sell). Meanwhile, prospective players in the energy space that are worth considering are Unit Corporation (UNT - Free Report) , Bonanza Creek Energy, Inc. (BCEI - Free Report) and TC PipeLines, LP (TCP - Free Report) . While TC PipeLines carries a Zacks Rank #2 (Buy), Bonanza and Unit sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.    

TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.

Bonanza will likely post earnings growth of 57.3% through 2019.

Unit Corp surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.

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