FBR Capital Maintains an 'Outperform' on Newfield Exploration (NFX); Searching for That Crown Jewel Asset
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Price: $25.73 -0.35%
Rating Summary:
19 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Newfield Exploration (NYSE: NFX), PT $85.
FBR analyst says, "Evidenced by its acquisition of 800,000 acres in various resource plays since late 2009, it is clear that NFX has accomplished the portfolio diversification (commodity, geology, and geography) goals it had set for itself. From here, multiple expansion and stock price outperformance will be driven by its ability to convert one of these areas to a crown jewel status and mature one or two other areas as strong contenders. We think its Monument Butte program has the ability to become the crown jewel asset, which to us means it has a high investment return profile and significant breadth and depth of inventory. Meanwhile, both the Alberta Basin and Eagle Ford positions show strong promise in becoming strong contenders. Lastly, we would like to see its Malaysian assets with proceeds to be deployed to higher return and deeper domestic program."
"We are lowering 2Q11 EPS/CFPS estimates to $1.03/$2.89 per share
from $1.19/$2.93 and FY11 EPS/CFPS estimates to $4.68/$12.53 per share from $4.82/$13.23 per share to reflect higher workover costs and production taxes and lower international volumes."
For more ratings news on Newfield Exploration click here and for the rating history of Newfield Exploration click here.
Shares of Newfield Exploration closed at $71.69 yesterday.
FBR analyst says, "Evidenced by its acquisition of 800,000 acres in various resource plays since late 2009, it is clear that NFX has accomplished the portfolio diversification (commodity, geology, and geography) goals it had set for itself. From here, multiple expansion and stock price outperformance will be driven by its ability to convert one of these areas to a crown jewel status and mature one or two other areas as strong contenders. We think its Monument Butte program has the ability to become the crown jewel asset, which to us means it has a high investment return profile and significant breadth and depth of inventory. Meanwhile, both the Alberta Basin and Eagle Ford positions show strong promise in becoming strong contenders. Lastly, we would like to see its Malaysian assets with proceeds to be deployed to higher return and deeper domestic program."
"We are lowering 2Q11 EPS/CFPS estimates to $1.03/$2.89 per share
from $1.19/$2.93 and FY11 EPS/CFPS estimates to $4.68/$12.53 per share from $4.82/$13.23 per share to reflect higher workover costs and production taxes and lower international volumes."
For more ratings news on Newfield Exploration click here and for the rating history of Newfield Exploration click here.
Shares of Newfield Exploration closed at $71.69 yesterday.
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