Today, October 21, 2010
11:03 PM ET Moody's: Newfield Upgrade On Postive Trend In Leverage, Cap EfficiencyDow Jones
11:02 PM ET Moody's Upgrades Newfield Exploration's Ratings To Ba1 From Baa2
Dow Jones
11:02 PM ET Moody's: About $2.18B Of Newfield Exploration's Rated Debt AffectedDow Jones
NFX beat my Q3 forecast. I listened to their CC this morning. Very bullish. I'm increasing my Q4 and 2011 forecast which will be available to our Premium Members on the website under the Sweet 16 tab.
Expect a lot more upgrades on NFX as the current First Call estimate is way too low.
NFX said oil production will go up 25% in 2011. They have over 65% of forecast NG production hedged at over $6/mcf.
NFX Upgrades coming
NFX Upgrades coming
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: NFX Upgrades coming
I just received a research report from Citi. They have increased their target price on NFX to $68.
I have placed a special report on NFX on the website under our Sweet 16 tab.
Dan
I have placed a special report on NFX on the website under our Sweet 16 tab.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: NFX Upgrades coming
Zacks Equity Research, On Friday October 22, 2010, 8:50 am EDT
Newfield Exploration Co. (NYSE: NFX - News) reported third-quarter earnings of $1.10 per share, above the Zacks Consensus Estimate of $1.05 but below the year-earlier profit of $1.58. Though realized commodity prices were shy, the better-than-expected results were mainly driven by strong production volumes. Revenues in the quarter were $449 million, up approximately 20% year over year.
Operational Performance
Total quarterly production of 71.4 billion cubic feet equivalent (Bcfe) climbed approximately 9% year over year. Natural gas volumes in the company’s domestic operations were up more than 18% from the year-earlier level at 50.4 Bcf. However, oil and condensate volume slipped marginally to 3.5 million barrels (MMBbls) during the quarter.
Newfield’s oil and natural gas price realizations (including the effect of hedges) averaged $7.98 per thousand cubic feet equivalent (Mcfe), down 14.3% from the year-earlier level. Natural gas prices decreased nearly 18% to $5.66 per Mcf. Liquid prices also lowered 3% to $80.02 per barrel.
Newfield’s recurring lease operating expenses (LOE) during the quarter were 78 cents per Mcfe, down 11% from the year-ago level. However, production and other taxes increased significantly from the year-earlier level to 30 cents per Mcfe. General and administrative expenses decreased 8.2% to 56 cents per Mcfe.
At the end of the quarter, Newfield had a cash balance of $128 million. Debt balance stood at $2.2 billion, representing a debt-to-capitalization ratio of 40.0% (vs. 40.9% at the end of the previous quarter).
Guidance
For 2010, management slightly raised its production volume guidance to 286 Bcfe to 288 Bcfe range and expects LOE per Mcfe to range between 69 cents and 71 cents.
Outlook
The third quarter was fairly uneventful, which is reflected in its stock performance. Newfield’s stock price was essentially flat during the last few weeks. However, the company’s increasing focus on liquids is commnedable in a favorable price environment.
Newfield’s high quality gas plays, unconventional acreage in the Marcellus play, growing oil volumes in Monument Butte and additional potential in the Bakken play are also appreciated.
We believe that deployment of more funds toward oil will further augment Newfield’s results once it completes its drilling operations in the Eagle Ford shale and the Southern Alberta Basin.
It appears that Newfield’s exposure to the emerging resource plays and shifting money away from natural gas into liquids will help it in the E&P space. The company’s shares trade currently in line with the group and our Neutral recommendation with the Zacks #3 Rank (Hold) corroborates this view.
Newfield Exploration Co. (NYSE: NFX - News) reported third-quarter earnings of $1.10 per share, above the Zacks Consensus Estimate of $1.05 but below the year-earlier profit of $1.58. Though realized commodity prices were shy, the better-than-expected results were mainly driven by strong production volumes. Revenues in the quarter were $449 million, up approximately 20% year over year.
Operational Performance
Total quarterly production of 71.4 billion cubic feet equivalent (Bcfe) climbed approximately 9% year over year. Natural gas volumes in the company’s domestic operations were up more than 18% from the year-earlier level at 50.4 Bcf. However, oil and condensate volume slipped marginally to 3.5 million barrels (MMBbls) during the quarter.
Newfield’s oil and natural gas price realizations (including the effect of hedges) averaged $7.98 per thousand cubic feet equivalent (Mcfe), down 14.3% from the year-earlier level. Natural gas prices decreased nearly 18% to $5.66 per Mcf. Liquid prices also lowered 3% to $80.02 per barrel.
Newfield’s recurring lease operating expenses (LOE) during the quarter were 78 cents per Mcfe, down 11% from the year-ago level. However, production and other taxes increased significantly from the year-earlier level to 30 cents per Mcfe. General and administrative expenses decreased 8.2% to 56 cents per Mcfe.
At the end of the quarter, Newfield had a cash balance of $128 million. Debt balance stood at $2.2 billion, representing a debt-to-capitalization ratio of 40.0% (vs. 40.9% at the end of the previous quarter).
Guidance
For 2010, management slightly raised its production volume guidance to 286 Bcfe to 288 Bcfe range and expects LOE per Mcfe to range between 69 cents and 71 cents.
Outlook
The third quarter was fairly uneventful, which is reflected in its stock performance. Newfield’s stock price was essentially flat during the last few weeks. However, the company’s increasing focus on liquids is commnedable in a favorable price environment.
Newfield’s high quality gas plays, unconventional acreage in the Marcellus play, growing oil volumes in Monument Butte and additional potential in the Bakken play are also appreciated.
We believe that deployment of more funds toward oil will further augment Newfield’s results once it completes its drilling operations in the Eagle Ford shale and the Southern Alberta Basin.
It appears that Newfield’s exposure to the emerging resource plays and shifting money away from natural gas into liquids will help it in the E&P space. The company’s shares trade currently in line with the group and our Neutral recommendation with the Zacks #3 Rank (Hold) corroborates this view.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: NFX Upgrades coming
More on why we like NFX
http://stocks.investopedia.com/stock-an ... er=YahooSA
We may be webcasting the breakfast meeting with NFX starting at 8:00. Check the Home Page later for details.
http://stocks.investopedia.com/stock-an ... er=YahooSA
We may be webcasting the breakfast meeting with NFX starting at 8:00. Check the Home Page later for details.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: NFX Upgrades coming
At the Company’s Monument Butte Field in Utah, which they purchased in 2004 for $575 million, oil production is now expected to exceed 25,000 barrels per day by the end of 2010. Newfield plans to drill 375 wells here in 2010. We also love the fact that Newfield continues to reduce drilling cost and the time it takes to drill and complete wells. It now takes them less than five days to drill and complete a well in this field.
NFX's Monument Butte Field has a current market value over $2 Billion.
NFX's Monument Butte Field has a current market value over $2 Billion.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group