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.
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.