UPDATE: BMO Capital Markets Lowers PT on Newfield Exploration after 2013 Game Plan Release
In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on Newfield Exploration Co. (NYSE: NFX), but lowered its price target from $29.00 to $24.00.
BMO Capital Markets noted, “Production growth guidance was also provided for 2014 and 2015, for what it's worth. More on that later. Our model yields ~51.8 MBbls/d for domestic oil/liquids production, slightly ahead of guidance of ~50.5 MBbls/d at the midpoint (~41% pro forma growth). We show domestic natural gas volumes declining by ~18% (from 140 Bcf to ~115 Bcf) in 2013, compared to guidance closer to 14%. Combined we show domestic growth of ~3% this year, compared to guidance of ~5%. Our model yields a cash flow outspend of ~$590MM in 2013 on capital spending of ~$1.8B (~$1.5B domestic). That must be where the proceeds from the planned divestiture of the international assets come into play. We also took the time to further break down our NAV analysis to include the three different operations underway in the Uinta Basin: Green River waterflood development, Wasatch horizontal drilling and Uteland Butte horizontal drilling.”
Newfield Exploration Co. closed on Tuesday at $23.54.
Latest Ratings for NFX
|Apr 2015||Nomura||Initiates Coverage on||Buy|
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