Newfield rises on production outlook, affirms strength of core assets

|About: Newfield Exploration Co. (NFX)|By:, SA News Editor

Shares of Newfield Exploration (NFX +2.4%) are holding up better than most energy names, rising to a two-and-a-half-year high after the oil and gas driller raised its 2014 production forecast.

In reiterating its Outperform rating, FBR Capital says the production results affirm the strength of NFX's core assets and that recent SCOOP well results are due to "structural" reasons and thus are sustainable; the firm thinks this has material implications for long-term growth rates and 3P NAV (

FBR believes the marketplace does not appreciate production and log data from 3,000 vertical wells, which form the basis of resource potential.

NFX is due to report Q2 earnings on July 29; analyst consensus calls for EPS to climb 30% from a year ago to $0.48 and revenue to rise 27% to $552.5B.