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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.


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%.    


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%.

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