ISI Group Maintains Neutral Rating on Newfield Exploration

A report from ISI Group reiterates its Neutral rating on Newfield Exploration (NYSE: NFX).

The report states, “NFX reported an adjusted 3Q11 EPS of $1.04, below our and the First Call consensus estimate of $1.16. Lower production (both oil and gas) and price realizations led to the miss. NFX guided down 2011 production to 300-304 Bcfe (from 312-316 Bcfe). E&D capex was held flat at $1.9B, but spending through 9/30 has already totaled 94% of budget. Asset sale proceeds (~$400-550MM by year-end) will likewise be reinvested. The guidance and higher capex will be seen as disappointing and we think the shares could be down 10% or more."

NFX closed yesterday at $42.05.