Newfield Exploration Co. NFX reported adjusted second-quarter 2015 earnings of 46 cents per share that easily beat the Zacks Consensus Estimate of 18 cents. The quarterly earnings also increased almost 7% from the year-ago adjusted profit of 43 cents per share.
The company’s total revenue, however, plunged 23.4% year over year to $469 million from $612 million. The top line also lagged the Zacks Consensus Estimate of $475 million.
Operational Performance
Total quarterly production of 14.1 million barrels of oil equivalent (MMBoe) comprised 51% oil, 14% natural gas liquids (NGLs) and 35% natural gas.
Natural gas volumes amounted to 29.8 billion cubic feet (Bcf). Oil, condensate and NGLs volumes came in at 9.2 million barrels.
Newfield’s second-quarter oil and natural gas price realizations (including the effect of hedges) averaged $42.71 per Boe. Natural gas prices were $3.50 per Mcf, oil prices were $63.28 per barrel, and NGLs prices were $19.17 per barrel.
Recurring lease operating expenses (LOE) were $4.89 per Boe. Production and other taxes were $1.21 per Boe, while general and administrative expenses were $3.72 per Boe.
Financials
At the end of the reported quarter, Newfield had cash balance of $42 million. Long-term debt was $2,450 million, thereby representing a debt-to-capitalization ratio of approximately 42.9%.
Guidance
For 2015, Newfield increased its projected output to 53.5–55.0 MMBoe from 52.0–55.0 MMBoe and capital spending by $200 million to $1.4 billion, respectively.
The company also projects LOE of $319 million, production & other taxes of $66 million and general & administration expenses of $203 million.
Zacks Rank
Newfield Exploration currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Seadrill Partners, LLC SDLP, Holly Energy Partners L.P. HEP and Valero Energy Partners, L.P. VLP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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