Announced earnings of 17 cents per share should be ignored.
Newfield Exploration: Without the effect of their mark-to-market loss on hedges and a reserve established for claims related to the TXCO bankruptcy (only 3 cents per share), net income for the fourth quarter of 2010 would have been $156 million, or $1.16 per share. < compared to my forecast of $1.30/share.
In addition, the Company’s fourth quarter 2010 DD&A rate increased approximately $0.16 per Mcfe over the third quarter 2010 rate. This increase was primarily related to the Company’s planned strategy to shift to higher margin oil plays and the resulting change in the composition of the Company's proved reserve base. < This is a result of some natural gas reserves being pushed out more than five years.
Cash flow per share still looks like $13.00 to $13.50 for 2011 based on production and other guidance provided.
I will have an updated forecast model for NFX tomorrow afternoon, after I listen to the 4th quarter conferenced call.