Newfield Exploration (NFX)

[dan_s]

Newfield Exploration (NFX): An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.

I am very close to moving NFX back into the Sweet 16. I just want to see one more quarter of actuals to raise my confidence in my forecast model. I bring this to your attention now because it is obvious to me that other analysts are starting to see the growth potential that I see. Take a look at the 1-year chart and you will see what I mean.

They recently sold their assets in Malaysia for a big chunk of cash and they are now focused on ramping up liquids production in the U.S. They have their China assets for sale and I expect it to happen this year.

My Fair Value Estimate is $52.35/share and there is upside to over $60 if they affirm their production guidance for 2014, which is currently 120,500 to 131,500 boepd. You can see the production mix at the bottom of my forecast model.

Newfield is in the SCOOP play with CLR and their Oklahoma production is ramping up quickly. See their recently updated presentation, which you can download from the company's website.

Improving natural gas prices are also giving NFX revenues a nice boost.