Newfield Exploration’s 4Q15 Earnings Top Estimates, but Revenues Miss

Newfield Exploration's Latest: Stock Reactions after 4Q15 Earnings

Newfield Exploration’s 4Q15 Revenue

Newfield Exploration (NFX) reported its 4Q15 earnings on February 24, 2016. The company announced adjusted revenue of ~$362 million, falling short of the consensus Wall Street estimate for revenue of ~$450 million. The 4Q15 revenue was ~27% lower than the 4Q14 revenue of ~$495 million.

Newfield Exploration’s 4Q15 earnings

NFX’s 4Q15 adjusted EPS (earnings per share) was $0.30, significantly higher than the consensus Wall Street estimate of ~$0.02. NFX’s 4Q14 EPS was $0.38. Unlike most of its upstream counterparts, NFX’s earnings performed better than expected on account of its hedges and lower cost structure.

Upstream peers Devon Energy (DVN), Marathon Oil (MRO), and Diamondback Energy (FANG) have posted 4Q15 earnings per share of $0.77, -$0.48, and $0.58, respectively. NFX, DVN, and MRO make up ~3% of the Energy Select Sector SPDR ETF (XLE).

Newfield Exploration’s 2015 earnings and revenue

For fiscal 2015, NFX reported adjusted earnings per share of $1.00. The comparable earnings in 2014 were $1.8 per share. NFX’s 2015 revenue came in at ~$1.6 billion. Comparable revenue in 2014 was ~$2.3 billion.

NFX’s proved reserves

NFX’s proved reserves at the end of 2015 were 509 MMBoe (million barrels of oil equivalent). This compares to 645 MMboe of proved reserves, at the end of 2014. The 4Q15 earnings release noted that the discounted value of its reserve base at the end of 2015 was $2.9 billion, which represents a decline of 67% compared to 2014.

Continue to Next Part

Browse this series on Market Realist:

• Part 2 - Newfield Exploration’s 2015 Operational Highlights and 2016 Guidance

• Part 3 - Newfield Exploration’s Stock after Beating 4Q15 Earnings

• Part 4 - Analyst Recommendations for Newfield Exploration after 4Q15 Results