Newfield Climbs After Profit Tops Estimates: Dallas Mover
Newfield Exploration Co. (NFX), the U.S. oil producer exploring the sale of offshore assets, rose the most in almost four years after exceeding analysts’ profit estimates and saying it expects to meet a 2013 output target.
Newfield, based in The Woodlands, Texas, climbed 8.9 percent to $21.60 at 11:35 a.m. in New York. The stock earlier surged as much as 10 percent, the biggest intraday gain since July 23, 2009. Before today, the stock had dropped 26 percent this year.
First-quarter profit excluding a loss on energy contracts was 45 cents a share, Newfield said in a statement issued after the close of regular trading yesterday. That topped the per- share average of 43 cents from 21 analysts’ estimates compiled by Bloomberg. Newfield said it’s on track to boost domestic oil and liquids output by about 39 percent this year, adjusted for 2012 asset sales.
“They’re certainly well on their way to achieving their targets in 2013 and a lot of people were pretty skeptical of their ability to do that,” Leo Mariani, an analyst at RBC Capital Markets in Austin, Texas, said in a phone interview today.
Mariani, who has an outperform rating on Newfield shares and owns none, said production and realized pricing were in line with what he expected in the first quarter.
In February, Newfield said it planned to explore the possible sale of its international assets, which include offshore oil and natural gas projects in Malaysia and China. A data room for international assets is expected to open in the second quarter, the company said yesterday.
To contact the reporter on this story: Edward Klump in Houston at firstname.lastname@example.org
To contact the editor responsible for this story: Susan Warren at email@example.com