Newfield Exploration’s stock performance
Following Newfield Exploration’s (NFX) after-market 3Q16 earnings release on November 1, its stock fell ~3% the next day.
Year-over-year (or YoY), NFX has fallen ~2.5%. In this part of the series, we’ll analyze Newfield Exploration’s stock performance with respect to movements in the broader industry and the broader market.
As the graph above shows, Newfield Exploration’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (OIL). Crude oil prices and natural gas prices (UNG) have also been driving the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).
From October 19 to November 2, Newfield Exploration’s stock was underperforming XLE throughout. Toward the end of the two-week period, it gave lower returns compared to XLE. Newfield Exploration’s stock fell ~11% during this period while XLE fell ~4%.
Both NFX and XLE underperformed the SPDR S&P 500 ETF (SPY), which fell 2% during the two-week period.
Newfield Exploration’s stock fell ~3% on November 2, despite its upbeat earnings. Although NFX’s 3Q16 revenues did miss estimates, likely inducing a negative market reaction, the fall in NFX’s stock on November 2 is more likely to be due to the fall in crude oil prices on November 2. Crude oil prices dropped 3% on November 2.
Read the first part of this series to learn more about Newfield Exploration’s 3Q16 performance.