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Newfield's (NFX) Earnings and Revenues Beat Estimates in Q1

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Newfield Exploration Company NFX 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.
 

Newfield Exploration Company Price, Consensus and EPS Surprise

 

Newfield Exploration Company Price, Consensus and EPS Surprise | Newfield Exploration Company Quote

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.  

Operational Performance

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.

Financials

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%.    

Guidance

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.

Q1 Price Performance

During the January-to-March period, Newfield’s shares lost 22.5% compared with the industry’s 4.4% decline.



Zacks Rank & Key Picks

Newfield currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Nine Energy Service, Inc NINE, Baytex Energy Corp BTE and Solaris Oilfield Infrastructure, Inc. SOI. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nine Energy Service is engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company pulled off a positive earnings surprise of 6.25% in the preceding quarter.

Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. The company delivered an average positive earnings surprise of 77.3% in the trailing three quarters.

Solaris Oilfield Infrastructure manufactures as well as provides patented mobile proppant management systems which unload, store and deliver proppant at oil and natural gas well sites. The company delivered a positive earnings surprise of 5.26% in the preceding quarters.

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