NFX's 95 cents EPS is below my forecast ($1.14) but still not that bad. The stock is down almost 10% this morning.
Fourth Quarter 2011
For the fourth quarter of 2011, Newfield recorded net income of $68 million, or $0.51 per diluted share (all per share amounts are on a diluted basis). Net income for the fourth quarter includes a net unrealized loss on commodity derivatives of $93 million ($59 million after-tax), or $0.44 per share. Without the effect of this item, net income for the fourth quarter of 2011 would have been $127 million, or $0.95 per share.
Revenues in the fourth quarter of 2011 were $677 million. Net cash provided by operating activities before changes in operating assets and liabilities was $387 million. See “Explanation and Reconciliation of Non-GAAP Financial Measures” found after the financial statements in this release.
Newfield’s oil and liquids liftings in the fourth quarter of 2011 were 6 MMBbls, or an average of approximately 64,000 BOPD. This is about 9,000 BOPD higher than the third quarter of 2011 and 28% higher than the fourth quarter of 2010. Natural gas production in the fourth quarter of 2011 was 44 Bcf, an average of 478 MMcf/d. When combined, Newfield’s production in the fourth quarter of 2011 was 79 Bcfe, of which 44% was oil and liquids. Capital expenditures in the fourth quarter of 2011 were $479 million.
Newfield getting hammered
Newfield getting hammered
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Newfield getting hammered
..Citigroup downgraded Newfield Exploration following the company's Q4 results and 2012 guidance, which included expectations for no production growth this year. The firm lowered its price target for shares to $46 from $48. Note shares of Newfield Exploration were also downgraded this morning at Deutsche Bank.
Right now NFX is at $37/share.
Even though the overall production growth will be flat, the mix is going to improve with focus on more liquids production.
Right now NFX is at $37/share.
Even though the overall production growth will be flat, the mix is going to improve with focus on more liquids production.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Newfield getting hammered
THE WOODLANDS, Texas, Feb. 21, 2012 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX - News) today announced a $1.5 – $1.7 billion capital investment program for 2012. The investments will be almost entirely "oil-focused" and are expected to generate more than 20% year-over-year production growth in oil and liquids. Approximately $300 million of the budget will be allocated to an aggressive assessment of a new 125,000 net-acre position in the "liquids-rich" Cana Woodford play, located in Oklahoma's Anadarko Basin.
2012 Capital Investment Highlights
•Total planned 2012 capital investments of $1.5 – $1.7 billion, or approximately $400 million less than 2011 investments of $2.0 billion. Totals exclude acquisitions and capitalized overhead and interest of $210 million and $194 million, respectively;
•Oil and liquids production is expected to grow more than 20%, natural gas production expected to decline as much as 15%;
2012 Capital Investment Highlights
•Total planned 2012 capital investments of $1.5 – $1.7 billion, or approximately $400 million less than 2011 investments of $2.0 billion. Totals exclude acquisitions and capitalized overhead and interest of $210 million and $194 million, respectively;
•Oil and liquids production is expected to grow more than 20%, natural gas production expected to decline as much as 15%;
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Newfield getting hammered
An updated Net Income and Cash Flow Forecast model for NFX has been posted under the Watch List Tab.
My take on today's selloff is that the market grossly over-reacted to the company's reduced production guidance. NFX now says 2012 production will be 290-300 Bcfe or flat to 2011. However, their natural gas production is going down 15% to 20% and their liquids production is going down by the same amount. They are now on-track to have more than 50% of production on a boe basis from liquids by the 2nd half of this year. That is a good thing!
From time-to-time, Mr. Market will give us a gift. This could be one.
My take on today's selloff is that the market grossly over-reacted to the company's reduced production guidance. NFX now says 2012 production will be 290-300 Bcfe or flat to 2011. However, their natural gas production is going down 15% to 20% and their liquids production is going down by the same amount. They are now on-track to have more than 50% of production on a boe basis from liquids by the 2nd half of this year. That is a good thing!
From time-to-time, Mr. Market will give us a gift. This could be one.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group