NFX - Embedded Expectations Analysis - 2018 03 20
Newfield Exploration Company (NFX:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Assets, with a 0.4x Uniform P/B. At these levels, markets are pricing in expectations for only minimal fundamental improvements, but management is confident about their initiatives and three-year planSpecifically, management is confident in their spacing configurations building
long-term value for their owners and development, and in their decision to drill on opposite sides of the lease line on their HBP properties to keep wells close. Additionally, they are confident that the types of wells they are going to be drilling going forward will be similar to the types of wells that went into the 2017 brown curve, and in their upsizing program that increased the intensity of their wells. Furthermore, they are confident in their three-year plan
Newfield Exploration is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. The company's principal areas of operation are the Anadarko and Arkoma basins of Oklahoma, the Williston Basin of North Dakota and the Uinta Basin of Utah. In addition, the company has oil producing assets offshore China. As of Dec 31 2017, the company had proved reserves of 680.0 million barrels of oil equivalent, which consisted of 250.0 million barrels of oil and condensate, 1,704.00 billion cubic feet of natural gas, and 146 million barrels of natural gas liquids.
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