U.S. Markets open in 5 hrs 12 mins

Newfield (NFX) Beats Q1 Earnings, Misses Revenue Estimates

Zacks Equity Research

Upstream energy firmNewfield Exploration Company NFX reported adjusted first-quarter 2017 earnings of 57 cents per share that beat the Zacks Consensus Estimate of 45 cents. The bottom line also compared favorably with the year-ago quarter loss of 9 cents per share. Higher realizations for oil and gas prices primarily led to the outperformance.  

 

 

 

The company’s total revenue improved from $284 million in the year-ago period to $417 million. However, the top line missed the Zacks Consensus Estimate of $425 million due to lower production.   

Operational Performance

During the quarter, total production was 13.1 million barrels of oil equivalent (MMBoe), comprising 43% oil, 19% natural gas liquids (NGLs) and 38% natural gas. The company had recorded total production of 15.2 MMBoe in the year-ago quarter.   

Natural gas volumes totaled 30.3 billion cubic feet. Oil, condensate and NGL volumes was 8.1 million barrels.

Newfield’s first-quarter oil and natural gas price realizations averaged $33.55 per barrel of oil equivalent as against $24.46 per barrel in the year-ago quarter.

Natural gas prices were $2.72 per thousand cubic feet, oil prices were $51.38 per barrel and NGLs prices were $27.03 per barrel.

Financials

At the end of the quarter, Newfield had cash balance of $469 million. Long-term debt was $2,432 million. Debt-to-capitalization ratio was approximately 68.9%.    

Guidance

For 2017, Newfield estimates output of 149.4–160.8 MBoe/d compared with the previous guidance of 148.2–151.5 MBoe/d. For the second quarter, the company expects production of 142.6–149.1 MBoe/d.

Also, the company raised its 2017 capital spending guidance to $1.1 billion from the initial projection of $1 billion.

First-Quarter Price Performance

During the first quarter, Newfield’s shares outperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. During the aforesaid period, the stock lost 8.9% compared with 11% decrease for the broader industry.

Zacks Rank and Key Stock Picks

Newfield currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector include McDermott International Inc. MDR, China Petroleum and Chemical Corporation SNP and Bellatrix Exploration Ltd. BXE. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.   

McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 387.50%. 

For 2017, China Petroleum is expected to witness 60.03% year-over-year earnings increase.

Bellatrix Exploration surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive earnings surprise of 58.54%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.