Newfield Exploration Q2 Results

[dan_s]

Newfield Exploration (NFX) Reports Results for Second Quarter 2016
- 2Q16 net domestic production was 13.7 MMBOE
- 2Q16 Anadarko Basin average net production reached record 83,700 BOEPD
- 2Q16 domestic lease operating expense per BOE was down approximately 25% year-over-year
- Company increases its 2016 production outlook and planned capital investments
- Continued strong results in STACK lead to 15% increase in type curve to 1.1 MMBOE gross

Last two are the best news. I am updating my forecast model now.

[dan_s]

NFX beat my forecast for Adjusted EPS, CFPS and production volumes.

[dan_s]

I have updated my forecast / valuation model for NFX. My valuation increases by $3.90 to $59.35/share. The forecast model will be posted to the EPG website this evening.

Note that my forecast is based on the company's production guidance. NFX has a long history of beating their production guidance quarter-after-quarter.

For those of you that own Gastar, you need to look at the new slides NFX has posted to their website. They are getting great STACK well results in Kingfisher County near Gastar's leasehold. NFX has increased their capex budget to drill more Kingfisher County wells this year.

[dan_s]

Stifel on 8/3/2016:

"Based on management's new 1.1 MMBoe type curve (a 15% increase), which is backed by state data, we are increasing
our risked NAV 8% to $51/share. We continue to like NFX's resource upside potential, strong balance sheet, and emerging
top-tier core asset base"