Newfield Exploration (NFX)
Posted: Tue Nov 01, 2016 6:00 pm
3rd quarter results beat my forecast and the company raised full year production guidance. I am updating my forecast model and will have it posted to the EPG late today or on Wednesday morning. Lots of info pouring in now. - Dan
Third Quarter 2016 Financial and Production Summary
For the third quarter, the Company recorded net income of $48 million, or $0.24 per share (all per share amounts are on a diluted basis). Adjusted net income for the third quarter was $89 million, or $0.45 per share after adjustment for the items below:
•a legal settlement charge of $18 million, or $0.08 per share;
•unrealized derivative losses of $11 million, or $0.05 per share; and
•organizational restructuring and severance costs of $16 million, or $0.08 per share.
Revenues for the third quarter were $392 million. Net cash provided by operating activities was $209 million. Discretionary cash flow from operations was $183 million.
Newfield's total net production in the third quarter of 2016 was 15.2 MMBOE, comprised of 42% oil, 19% natural gas liquids and 39% natural gas. Domestic production in the third quarter was 14.3 MMBOE.
2016 Production Guidance and Capital Investments
Newfield again increased expectations for its 2016 production. The increase is related primarily to stronger performance year-to-date from existing assets. Domestic net production is now expected to be 53.7 – 54.1 MMBOE and total Company net production guidance was raised to 58.8 – 59.2 MMBOE (previous forecasts included 1.1 MMBOE in the fourth quarter of 2016 for recently sold Eagle Ford and South Texas assets). See table in @NFX for additional production detail.
The Company's 2016 capital investments are now expected to be approximately $750 million, or the upper end of its previous $700 – $750 million capital investment range (excludes capitalized interest and direct internal costs; excludes acquisitions). The increase to the upper end of our previous range reflects the planned addition of drilling rigs in the Anadarko Basin in late 2016.
Third Quarter 2016 Financial and Production Summary
For the third quarter, the Company recorded net income of $48 million, or $0.24 per share (all per share amounts are on a diluted basis). Adjusted net income for the third quarter was $89 million, or $0.45 per share after adjustment for the items below:
•a legal settlement charge of $18 million, or $0.08 per share;
•unrealized derivative losses of $11 million, or $0.05 per share; and
•organizational restructuring and severance costs of $16 million, or $0.08 per share.
Revenues for the third quarter were $392 million. Net cash provided by operating activities was $209 million. Discretionary cash flow from operations was $183 million.
Newfield's total net production in the third quarter of 2016 was 15.2 MMBOE, comprised of 42% oil, 19% natural gas liquids and 39% natural gas. Domestic production in the third quarter was 14.3 MMBOE.
2016 Production Guidance and Capital Investments
Newfield again increased expectations for its 2016 production. The increase is related primarily to stronger performance year-to-date from existing assets. Domestic net production is now expected to be 53.7 – 54.1 MMBOE and total Company net production guidance was raised to 58.8 – 59.2 MMBOE (previous forecasts included 1.1 MMBOE in the fourth quarter of 2016 for recently sold Eagle Ford and South Texas assets). See table in @NFX for additional production detail.
The Company's 2016 capital investments are now expected to be approximately $750 million, or the upper end of its previous $700 – $750 million capital investment range (excludes capitalized interest and direct internal costs; excludes acquisitions). The increase to the upper end of our previous range reflects the planned addition of drilling rigs in the Anadarko Basin in late 2016.