Newfield Exploration Co.’s NFX reported adjusted third-quarter 2016 earnings of 24 cents per share that missed the Zacks Consensus Estimate by a penny. The underperformance is attributable to lower oil and gas price realizations, partially offset by higher production.
Nonetheless, the bottom-line came above the year-ago quarter profit of 21 cents.
The company’s total revenue improved from $377 million in the year-ago period to $392 million but lagged the Zacks Consensus Estimate of $407 million.
Operational Performance
During the quarter, total production came in at 15.2 million barrels of oil equivalent (MMBoe), comprising 42% oil, 19% natural gas liquids (NGLs) and 39% natural gas. This was higher than 14.3 MMBoe in the year-ago quarter.
Natural gas volumes totaled 35.6 billion cubic feet. Oil, condensate and NGLs volumes came in at 6.4 million barrels.
Newfield’s third-quarter oil and natural gas price realizations averaged $28.74 per barrel of oil equivalent as against $36.25 per barrel in the year-ago quarter.
Natural gas prices were $2.38 per thousand cubic feet, oil prices were $46.34 per barrel and NGLs prices were $18.53 per barrel.
Financials
At the end of the quarter, Newfield had cash balance of $478 million. Long-term debt was $2,430 million, which represents a debt-to-capitalization ratio of approximately 72.6%.
Guidance
For 2016, Newfield estimates output of 58.8–59.2 MMBoe as against the prior projection of 58–59.5 MMBoe. The company now expects capital spending at the upper end of the prior guidance of $700–750 million.
NEWFIELD EXPL Price, Consensus and EPS Surprise
NEWFIELD EXPL Price, Consensus and EPS Surprise | NEWFIELD EXPL Quote
Zacks Rank and Key Stock Picks
Newfield currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. UPLMQ, EQT Midstream Partners, LP EQM and Helix Energy Solutions Group, Inc. HLX.
Ultra Petroleum is likely to witness year-over-year earnings growth of 351.6% for the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of almost 12% for the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
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