Newfield Exploration Misses on Q4 Earnings and Revenues - Analyst Blog
Newfield Exploration Co. (NFX) reported adjusted fourth-quarter 2014 earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 43 cents by 11.6%. The quarterly results also decreased 22.4% from the year-ago adjusted profit of 49 cents per share. The decline can be traced back to lower oil and gas volumes.
Newfield Exploration Company - Earnings Surprise | FindTheBest
The company’s total revenue slipped 2.9% year over year to $495.0 million and lagged the Zacks Consensus Estimate of $548.0 million.
Full-year 2014 adjusted earnings of $1.80 per share increased 91.5% from the year-ago adjusted profit level of 94 cents. Earnings, however, failed to meet the Zacks Consensus Estimate of $1.84.
Total revenue in 2014 improved 23.2% on a year-over-year basis to $2,288.0 million and also beat the Zacks Consensus Estimate of $2,260.0 million.
Operational Performance
Total quarterly production of 12.7 million barrels of oil equivalent (MMBoe) comprised 43% oil, 18% natural gas liquids (NGLs) and 39% natural gas.
Natural gas volumes amounted to 30.1 billion cubic feet (Bcf). Oil, condensate and natural gas liquids (NGLs) volumes came in at 7.7 million barrels (MMBbls).
Newfield’s fourth-quarter oil and natural gas price realizations (including the effect of hedges) averaged $45.70 per Boe. Natural gas prices were $3.67 per Mcf, oil prices were $74.59 per barrel, and NGLs prices were $26.27 per barrel.
Recurring lease operating expenses ("LOE") were $5.73 per Boe. Production and other taxes were $1.72 per Boe, while general and administrative expenses totaled $4.07 per Boe.
Financials
At the quarter end, Newfield had cash balance of $14.0 million. Long-term debt was $2,892.0 million, representing a debt-to-capitalization ratio of approximately 42.6%.
Guidance
For the first quarter of 2015, Newfield expects an output of 12.2–12.5 million barrels of oil equivalent (MMBOE).
For 2015, Newfield anticipates output in the range of 52–55 MMBOE. The company also projects LOE at $350 million, production & other taxes at $72 million and general & administration expenses at $195 million. The company has estimated the capital expenditure for the year at $1.2 billion.
Ranks
Newfield Exploration currently carries a Zacks Rank #3 (Hold). Better-ranked stocks from the oil and gas industry include Valero Energy Partners L.P. (VLP), Golar Energy Partners LP (GMLP) and Hallador Energy Company (HNRG), all of which sport a Zacks Rank #1 (Strong Buy).
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