Newfield
Exploration (NFX) has recently issued
its new three year production and spending plans that have disappointed
inventors. Although the company’s shares sank after the guidance, the business
is currently focused on its core operations, which have been going strongly,
and is very optimistic about its future. The energy firm will considerably
increase its output from Anadarko, one of its core operating areas, through
2016 as it plans to invest hundreds of millions each year in the region while
it moves away from its international operations.
In the
meantime, during the course of the next three years, Newfield Exploration will
also focus on improving the shareholders’ returns. The company's shares have
dropped by 9% this year to $24.30 and are currently trading at just 1.4 times
their trailing sales.
Production
Plans
Next year, Newfield
expects the production to be in the range of 44 million to 48 million barrels
of oil equivalent (boe), which is going to show a growth of around 10% to 20%
from the current year’s estimated production of 40 million boe. The new
guidance still shows that the company is expecting double digit growth in 2014,
which isn’t bad. However, investors were rightly disappointed as Newfield has
tightened its forecast by lowering the higher-end and increasing the lower-end
of the previous guidance. In its last quarterly results,
the company pointed out that it was anticipating the production to be in the
range of … read full article at GuruFocus.
