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What to Expect from Newfield Exploration’s 1Q16 Earnings

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Apr. 28 2016, Published 7:13 a.m. ET

Newfield Exploration’s 1Q16 revenue estimates

Newfield Exploration (NFX) will release its 1Q16 earnings after the Market closes on May 3, 2016. NFX’s 1Q16 revenue is expected to come in at ~$343 million. Its revenue in 1Q15 was ~$349 million.

In 4Q15, NFX reported adjusted revenue of ~$362 million, which fell short of the consensus Wall Street estimate of ~$450 million. The company’s 4Q15 revenue was ~27% lower than its 4Q14 revenue of ~$495 million.

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NFX’s 1Q16 EPS estimates

NFX’s 1Q16 LPS (loss per share) estimate is ~$0.11. Its 4Q15 adjusted EPS (earnings per share) came in at $0.30, significantly higher than the consensus Wall Street estimate of ~$0.02. NFX’s 4Q14 EPS came in at $0.38. Unlike most of its upstream counterparts, NFX saw its earnings perform better than expected on account of its hedges and lower cost structure.

In 1Q16, however, analysts expect NFX’s earnings to be negative, which it managed to avoid in 2015. Investors will watch to see how things pan out for the upstream company.

NFX’s peers such as Oasis Petroleum (OAS), Rice Energy (RICE), and Whiting Petroleum (WLL) are expected to report LPS figures of $0.17, $0.09, and ~$0.71, respectively, in 1Q16. All these companies make up ~1% of the Vanguard Energy ETF (VDE).

NFX’s 2015 revenue and earnings recap

In 2015, NFX reported adjusted EPS of $1.00. The comparable EPS in 2014 came to $1.80 per share. NFX’s 2015 revenue came in at ~$1.6 billion, as compared to ~$2.3 billion in 2014.

In the next part of this series, we’ll look at NFX’s production guidance for 2016.

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