Newfield: Profit From This Overlooked E&P Now

Newfield Exploration (NFX) recently saw its equal weight rating reiterated by analysts at Barclays Capital, the same rating Barclays assigned to Occidental Petroleum (OXY). Additionally, Newfield’s long term unsecured notes, which were issued to repay certain debts under a revolving credit facility, were given a stable by Fitch Ratings; Fitch has a stable rating outlook for the stock. These stable outlooks can be taken as a cautiously positive outlook on Newfield, but in my view Newfield should be viewed with a strongly positive outlook. Part of the reason it generally is not viewed as positively as it deserves is because its peers are comparative media stars, like Devon Energy (DVN) and Anadarko Petroleum (APC), which leaves Newfield in the back of most investors’ minds. However, its current price and outlook indicate a buying opportunity being overlooked in favor of the stars, and Newfield is worth a look just for that.

Where Newfield is Operating Now

Nearly all of Newfield’s at 20% are earmarked to oil exploration and production, and almost half of its first quarter production was in oil and liquids. Its annual production growth is reliably coming in at 20%, which is set to go higher as its recent focuses on oil bear fruit. Its shale developments are centered on the Anadarko, Maverick, Williston, and Uinta basins, and it has a small hedge against U.S. production with international holdings, including offshore Malaysian oil production of at 20%.To continue reading, click here.

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