They finished strong.
For the fourth quarter, the Company recorded net income of $95 million, or $0.47 per diluted share (all per share amounts are on a diluted basis). Earnings were impacted by one time tax benefits of 47 million or $0.24 per share, due to the Tax Reform Act repeal of AMT and refundable AMT tax credits, and an unrealized derivative loss of $95 million, or $0.48 per share. After adjusting for the effect of the tax benefit and unrealized derivative loss during the period, net income would have been $143 million, or $0.71 per share.
Highlights
Fourth quarter 2017 net production exceeded guidance expectations.
Full-year 2017 domestic net production significantly exceeded original guidance expectations.
At the end of the fourth quarter, the Company had $326 million of cash on hand.
Newfield Exploration (NFX) Q4 Results
Newfield Exploration (NFX) Q4 Results
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Newfield Exploration (NFX) Q4 Results
Recent operational highlights include:
Revenues for the fourth quarter were $509 million. Net cash provided by operating activities was $311 million. Discretionary cash flow from operations was $342 million. < Above forecast.
> STACK: The Company turned to sales its most "technically comprehensive" spacing pilot to-date -- the Velta June -- which has 12 wells (drilled on four separate pads) located in the Meramec formation. This 5,000' lateral development reached combined peak production from the pads in excess of 10,000 BOEPD gross. Newfield operates the Velta June with a 48% working interest.
The information obtained from the Velta June development will be applied to the entirety of the STACK development with key learnings on completion cluster efficiencies, intra-well communication, well design cost/benefit analysis, fracture geometry and flowback practices.
> Newfield has now completed nearly 80 infill wells in STACK and has tested from four to 12 wells per section in the Meramec horizon. The results have shown the ability to generate strong returns across the acreage from the Stark 10-well development located in the west, to the Jackson/Florene spacing test located to the east. Additional information regarding performance to date and the recent Jackson/Florene test is available in @NFX presentation.
> In 2017, Newfield allocated capital to test additional prospective horizons on its acreage in the Anadarko Basin. This endeavor was dubbed "SCORE" -- the Sycamore, Caney, Osage Resource Expansion. Since early 2017, Newfield has drilled or participated in approximately 20 SCORE wells. In addition to successful Newfield operated and industry wells in the Sycamore, Caney and Osage, Newfield recently extended the prolific STACK Meramec play to the northwest and the North SCOOP oil play was extended to the east.
> One distinct highlight was the Larry well, completed in the black oil window along the eastern edge of Newfield's North SCOOP play. This SXL well had a gross IP30 of more than 1,900 BOEPD, of which more than 80% was oil. Newfield remains highly encouraged by its North SCOOP development and plans significant HBP drilling activity in its three-year plan (3YR Plan).
> Newfield continued to grow its daily production in the Williston Basin (Bakken & Three Forks) with a single operated-rig. In the fourth quarter of 2017, net production averaged 20,300 BOEPD. In 2018, the Company expects to continue to run a single rig and grow production approximately 7% year-over-year.
> Uinta Basin production continued to grow during 2017 with the deployment of a single operated-rig. Fourth quarter 2017 net production averaged 18,200 BOEPD. Recent efforts have focused exclusively on unlocking the value of the Central Basin through lower well costs and improved well productivity.
> Newfield has recently drilled more than 20 wells in the Central Basin, largely under a joint venture drilling agreement. This program successfully reduced completed well costs and enhanced well productivity. Newfield plans to continue to run a single rig in the Central Basin in 2018 related primarily to HBP operations. The Company holds interests in approximately 225,000 net acres in the basin.
Revenues for the fourth quarter were $509 million. Net cash provided by operating activities was $311 million. Discretionary cash flow from operations was $342 million. < Above forecast.
> STACK: The Company turned to sales its most "technically comprehensive" spacing pilot to-date -- the Velta June -- which has 12 wells (drilled on four separate pads) located in the Meramec formation. This 5,000' lateral development reached combined peak production from the pads in excess of 10,000 BOEPD gross. Newfield operates the Velta June with a 48% working interest.
The information obtained from the Velta June development will be applied to the entirety of the STACK development with key learnings on completion cluster efficiencies, intra-well communication, well design cost/benefit analysis, fracture geometry and flowback practices.
> Newfield has now completed nearly 80 infill wells in STACK and has tested from four to 12 wells per section in the Meramec horizon. The results have shown the ability to generate strong returns across the acreage from the Stark 10-well development located in the west, to the Jackson/Florene spacing test located to the east. Additional information regarding performance to date and the recent Jackson/Florene test is available in @NFX presentation.
> In 2017, Newfield allocated capital to test additional prospective horizons on its acreage in the Anadarko Basin. This endeavor was dubbed "SCORE" -- the Sycamore, Caney, Osage Resource Expansion. Since early 2017, Newfield has drilled or participated in approximately 20 SCORE wells. In addition to successful Newfield operated and industry wells in the Sycamore, Caney and Osage, Newfield recently extended the prolific STACK Meramec play to the northwest and the North SCOOP oil play was extended to the east.
> One distinct highlight was the Larry well, completed in the black oil window along the eastern edge of Newfield's North SCOOP play. This SXL well had a gross IP30 of more than 1,900 BOEPD, of which more than 80% was oil. Newfield remains highly encouraged by its North SCOOP development and plans significant HBP drilling activity in its three-year plan (3YR Plan).
> Newfield continued to grow its daily production in the Williston Basin (Bakken & Three Forks) with a single operated-rig. In the fourth quarter of 2017, net production averaged 20,300 BOEPD. In 2018, the Company expects to continue to run a single rig and grow production approximately 7% year-over-year.
> Uinta Basin production continued to grow during 2017 with the deployment of a single operated-rig. Fourth quarter 2017 net production averaged 18,200 BOEPD. Recent efforts have focused exclusively on unlocking the value of the Central Basin through lower well costs and improved well productivity.
> Newfield has recently drilled more than 20 wells in the Central Basin, largely under a joint venture drilling agreement. This program successfully reduced completed well costs and enhanced well productivity. Newfield plans to continue to run a single rig in the Central Basin in 2018 related primarily to HBP operations. The Company holds interests in approximately 225,000 net acres in the basin.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Newfield Exploration (NFX) Q4 Results
So why is this a problem for the Wall Street boys. Looks good to me.