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On Aug 11, 2015, we issued an updated research report on Newfield Exploration Company NFX.
Newfield Exploration based in Woodlands, TX is an independent energy company engaged in the exploration and production (E&P) of crude oil and natural gas.
On Aug 4, the independent energy company reported stable financial results for the second quarter of 2015. Adjusted earnings of $0.46 per share easily beat the Zacks Consensus Estimate of $0.18 and increased almost 7% from the year-ago adjusted profit of $0.43.
Newfield Exploration’s exposure to emerging resource plays, along with its shift of resources from natural gas into liquids, will help it to grow in the E&P space. In the second quarter, the company reported strong oil and gas production of 14.1 million barrels of oil equivalent, comprising 51% oil, 14% natural gas liquids (NGLs) and 34% natural gas. For 2015, the company has estimated capital expenditure at $1.4 billion, of which about 70% is expected to be spent on the liquid-rich operations of the Anadarko basin.
Newfield’s new STACK and SCCOP plays in the Anadarko basin form important parts of its portfolio. Production in STACK and SCCOP plays is expected to increase over 45% year over year in 2015. Currently, the company has more than 10 rigs operating in the Anadarko Basin. Newfield has a net acreage of 300,000 in the basin. It is expected to add acreage in its STACK play and drill over 50 wells there in 2015.
Also, Newfield is expected to operate 10 rigs in the Anadarko Basin and one-rig program in the Williston Basin this year. Most importantly, over the past three years, the company’s well cost fell almost 50%. Horizontal drilling in the Wasatch and high pressure Uteland Butte are expected to help the company enhance its shareholders’ value.
On the flipside, Newfield’s Rockies and Gulf Coast-centered asset portfolio, along with its lack of meaningful exposure to the emerging shale plays, is a competitive disadvantage. We believe the company is dependent on the successful development of its liquid-rich plays in the Uinta Basin, Granite Wash and North Dakota Bakken to reach its production targets and thereby investor expectations. Hence, any region-specific recurrence of issues could affect the company.
Stocks That Warrant a Look
Newfield Exploration has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Seadrill Partners, LLC SDLP, CVR Refining, L.P. CVRR and Valero Energy Partners, L.P. VLP. All these stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NEWFIELD EXPL (NFX): Free Stock Analysis Report SEADRILL PTNRS (SDLP): Free Stock Analysis Report CVR REFINING LP (CVRR): Free Stock Analysis Report VALERO EGY PTNR (VLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Anadarko
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CODE : APC |
ISIN : US0325111070 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Anadarko est une société d’exploration minière basée au Canada. Anadarko est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 38,6 milliards US$ (34,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 12 mai 1995 à 10,00 US$, et son plus haut niveau récent le 23 mai 2014 à 99,93 US$. Anadarko possède 531 000 000 actions en circulation. |