Newfield Exploration Co. NFX reported adjusted second-quarter 2018 earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 81 cents. The company had reported adjusted profit of 43 cents in the year-ago quarter.
Newfield Exploration Company Price, Consensus and EPS Surprise
Newfield Exploration Company Price, Consensus and EPS Surprise | Newfield Exploration Company Quote
Total revenues amounted to $679.0 million, up from $402.0 million in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $614 million.
The upside can be primarily attributed to outstanding performance at the Anadarko Basin.
Operational Performance
Total quarterly production of 17.8 million barrels of oil equivalent (MMBoe) was up from 13.6 MMBoe in the year earlier quarter. It comprised 42% oil, 22% natural gas liquids (NGLs) and 36% natural gas.
Natural gas volumes totaled 38.4 billion cubic feet (bcf), which beat the Zacks Consensus Estimate of 37.41 bcf. Oil, condensate and NGLs volumes came in at 11.4 million barrels.
Newfield’s second-quarter oil and natural gas price realizations (including the effect of hedges) averaged $38.15 per barrel of oil equivalent. Natural gas prices were $2.22 per thousand cubic feet (mcf), missing the Zacks Consensus Estimate of $2.46 per mcf. Oil prices were $64.28 per barrel, beating the Zacks Consensus Estimate of $60 per barrel. NGLs prices were $28.82 per barrel, which missed the Zacks Consensus Estimate of $29.49 per barrel.
Financials
At the end of the quarter, Newfield had cash balance of $293.0 million. Long-term debt was $2,435.0 million, which represents a debt-to-capitalization ratio of approximately 59.7%.
Guidance
For 2018, Newfield raised output guidance to 180-190 MBoe/d from 175-185 MBoe/d. Capital expenditure is estimated at $1,350 million, up from the previous guidance of $1,300 million. Of the total production, Anadarko Basin expects output in the range of 125-135 MBoe/d.
Q2 Price Performance
During the April-June quarter of 2018, Newfield’s shares outperformed the industry. The company’s shares gained 23.9% compared with the industry’s rise of 12.5%.
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Zacks Rank & Stocks to Consider
Currently, Newfield carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Canadian Natural Resources Limited CNQ, China Petroleum and Chemical Corporation SNP, also known as Sinopec, and Sunrun Inc RUN. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Natural Resources, based in Calgary, Alberta, is an exploration and production (E&P) company. It pulled off an average positive earnings surprise of 4.7% in the last four quarters.
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.
Sunrun is engaged in offering solar services through various channels. The company delivered an average positive earnings surprise of 16.3% in the last four quarters.
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