Market Overview

Why Newfield Could Thrive During The Current Downturn In Oil

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Williams Capital initiated coverage on Newfield Exploration Co. (NYSE: NFX) with Buy Rating and $58 price target.

The analysts believe the company will thrive through the current downturn, given its strong balance sheet (2.1x net debt/EBITDA at YE16), ample financial liquidity (around $2.4 billion, pro forma for equity) and a strong hedge book.

"However, considering its tremendous stacked-pay resource potential in the Anadarko Basin, we believe shares deserve a aluation closer to the Permian Basin players," wrote the analysts, adding they expect the valuation gap to narrow as the company moves towards development mode, with improving capital efficiencies.

The $58 price target implies 2017 and 2018 EV/EBITDA metrics of 11.6x and 7.5x, respectively.

Latest Ratings for NFX

DateFirmActionFromTo
Dec 2018Seaport GlobalDowngradesBuyNeutral
Nov 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight
Nov 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for NFX
View the Latest Analyst Ratings

 

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Posted-In: Williams CapitalAnalyst Color Initiation Analyst Ratings

Latest Ratings

StockFirmActionPT
WMTOppenheimerMaintains152.0
FBOppenheimerMaintains300.0
ASHEvercore ISI GroupInitiates Coverage On80.0
RPMEvercore ISI GroupInitiates Coverage On90.0
DOWEvercore ISI GroupInitiates Coverage On58.0
View the Latest Analytics Ratings
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